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City officials recently annexed 8.42 acres of Mound Township land into the city of Luverne for housing development, and plans are in motion to connect those four lots to city utilities.
Landowners Alan Schmuck and Patrick Widboom had requested the annexation of their ground for residential development and will be responsible for a large share of the cost of the improvements.
It will cost an estimated $289,000 to connect the four-lot subdivision with city water and sewer along the north side of the lots.
This will open up 400 acres to the north for more land for gravity flow of sewer to the north of Luverne and creates a residential growth area for the city.
“With any future expansion, councils in the future will appreciate that this is teed up for them for growth,” said Mayor Pat Baustian. “And it does open up expansion options.”
The city has a utility easement agreement with Randy Mulder to allow for utilities to be installed across his property to a potential future 13-lot development to the north.
The existing site along the north side of 131st Street is farmland consisting of row crops. Currently there is no water or sanitary sewer service to the property.
A feasibility report shows that the city of Luverne is continuing to grow, and as new businesses choose the community, housing needs also increase. The new development is advised to keep up with demand.
At their Tuesday, March 8, meeting, council members set a $200,000 assessment for landowners in the development to help cover the cost of bringing utilities to the four-lot subdivision.
The assessment will be paid over a 10-year period at an interest rate of 4 percent.
Also on Tuesday, the council set a hearing on the proposed assessment for 5 p.m. Tuesday, April 12, in Luverne City Hall council chambers.
Mound Township officials approved the petition Jan. 24, with signatures by Mound Township chair Keith Schmuck and clerk David DeBoer.
As part of the agreement, the city of Luverne will make a one-time payment to Mound Township of $2,000 for lost future tax revenue.
The city has advertised for bids for a contractor to complete the water and sewer improvements north of 131st Street.
The bid opening date is set for 1 p.m. Wednesday, March 23, and the work is to be completed during the 2022 construction season.