By Sara Strong
There could be some competition over the purchase of the Luverne Economic Development Authority apartments.
Attorney Benjamin Vander Kooi, on behalf of his client, Steve Perkins, is delivering a letter to the city of Luverne today asking that Perkins be allowed in the apartment bidding process.
The Mounds View and Evergreen Apartments, were constructed during Perkins’ time as Luverne City Administrator. They were a source of pride to him as they were built at a time when housing was in demand and private businesses had difficulty financing large projects.
The LEDA had the intention of selling the apartments whenever there was a time when private ownership would be feasible.
In February, the city advertised for bids to purchase the apartments and the city didn’t get any offers.
Just recently Doug Eisma, Dan Vis, Paul Vis and Bill Vis asked the LEDA to reconsider selling the apartments, even though the bidding process was closed.
Perkins, Luverne, said he didn’t submit a bid for purchase six months ago because it didn’t make as much financial sense then.
Interest rates are lower now, and with Continental Western Group (Tri-State Insurance) and the hospital committed to staying in town, the real estate business seems to be on an upswing.
The city said it wouldn’t sell the apartments for less than the debt service still owed, which is between $1.2 and $1.3 million.
Vander Kooi’s memo to the city asks the LEDA to place an estimated fair market value on the properties so they can be sold at a price that doesn’t just break even with what the city owes on the mortgage. Vander Kooi said this step is mandated by state statute.
"It is clear to me," Vander Kooi wrote, "that the Legislature is concerned that the public interest be protected in situations such as these when public property is sold to a private developer."
Vander Kooi said that beyond federal and state statutory concerns, constitutional issues are raised when a public body sells public property.
"Those protections are built into the due process clause and equal protection clause of the United States and Minnesota Constitutions. Our system of government simply cannot continue to exist unless ordinary citizens are convinced that the process of government is open and fair."
Perkins, in his communication through Vander Kooi, is asking that the bidding process for the sale of the apartments be advertised through legal notices to comply with state statutes.
"If the LEDA continues on its present course," Vander Kooi wrote, "we believe that the Authority’s actions will not withstand judicial scrutiny."