By Sara Strong
An informal tenants association came out for the Luverne Economic Development Authority's Tuesday meeting.
The group addressed the LEDA with concerns about the possible sale of the city's rental units - Mounds View and Evergreen Apartments.
LEDA board member Mike Engesser said, "Basically, it was never the board's intent to maintain the apartments. We wanted to get them started in Luverne until a time that it became feasible to sell."
The apartments, on the north end of town, were built by the city in the early 1990s 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 after a housing study, rental availability was a concern.
Tenants like Bob Keitel, Maurice Fitzer and Kay Sundstrom spoke out at the meeting asking the LEDA to consider tenantsÕ needs when soliciting proposals to purchase the apartments.
Fitzer said he realizes the LEDA did a good thing in building spacious, well-located apartments. However, he fears that things like rent prices or maintenance and upkeep will drastically change under new ownership.
Sundstrom said she would like to see those concerns addressed by prospective buyers.
Engesser said, "We don't want to sell the apartments and see them go downhill. We don't want this to adversely affect tenants if we do decide to sell them"
City Administrator Matt Hylen said that even if it's legal, putting rent price restrictions on the future owner may lower the selling price of the apartments.
LEDA member Karis Gust said the purpose of building the units was to keep nice apartments at a reasonable price.
"If, by selling them, we lose the whole purpose for which they were built, it doesn't seem to make sense from a public policy standpoint," Gust said.
Steve Perkins, former city administrator and LEDA director, said he hoped the board would consider its role. He said part of the LEDA's mission is to look out for housing interests in the city, and that it may be best to keep the apartments as they are.
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. Now the outspoken people are the ones who fear the apartments will be taken out of public hands.
The city will hold one more public hearing on the possible sale of Mounds View and Evergreen Apartments. The city can reject any and all proposals to buy them.
If the city decides to sell, it doesn't have to accept the highest bidder. The board voted to ask that bidders address tenant concerns in their proposals. The city may not be able to control much of the owner's decisions after the sale, but can ask that concerns be addressed before the sale is final.
The LEDA will look at bids at its April 9 meeting.