By Sara Strong
An attempt to sell the city's apartments got some attention from would-be owners, but none saw enough potential to submit bids.
The 29 units in Mounds View and Evergreen Apartments will stay in the Luverne Economic Development AuthorityÕs hands for now.
Fifteen interested parties got the bid specifications from the city. LEDA director Tony Chladek followed up with them and found that they didn't see enough profit potential to give ownership a try.
The LEDA hasn't met to discuss what it might do next, but Chladek speculated that it might pay off more debt before re-advertising for bids.
Tenants gathered at a February LEDA meeting to protest the possibility of a sale. They worried that rent might increase and that maintenance and upkeep could become a lower priority to new owners.
Because of those concerns the LEDA asked that potential bidders address those issues.
The apartments weren't intended to be a permanent part of the city's operations. They were built on the north end of town in the early '90s when interest rates were higher, making it difficult for private parties to build.
At that time, the Minnesota Veterans Home was about to open, and a housing study indicated rental availability was a concern.
When the properties were constructed, some real estate brokers and private contractors worried that the apartments would take too much away from the private sector.
Though the demand for the units existed, and still exists, building and owning them apparently was not and is not a profitable venture.