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City clears more hurdles for Towne Square lots

Luverne City Council members approved a series of resolutions at their March 23 meeting related to the Town Square development on South Highway 75 and Hatting Street.
•They named Midwest Sustainable Consulting LLC as the developer of record for the Towne Square project, which will initially consist of two three-story, 27-unit apartment buildings.
The Texas developer will coordinate plans and specifications of the apartments, arrange financing and meet requirements of the $680,000 workforce housing grant and the $550,000 deferred loan from the city.
•The council approved an ordinance on March 23 to convey the real estate from the city to the developer for $1. Closing will be by April 15, and the land transfer would be after that.
•At the March 23 meeting, the council also took action to modify the TIF plan to reflect additional city commitments spelled out in the development agreement.
The city will grade the site to elevations necessary for the construction of the two apartments and provide hard surface parking for the entire site, as well as all ingress and egress access lanes for the entire site.
The estimated cost for these site improvements, including an inflation factor is $1.537 million, and that’s in addition to the city’s initial investments in preparing the site for development.
The tax increment financing plan will need to be adjusted by that amount, and a public hearing is required to amend it. The council set May 4, 2021, as the hearing date.
 
City invests up front for future returns
For background, the city purchased the condemned Sharkee’s property and the Mert’s Repair lot and approved the parcel as Tax Increment Financing District 23.
The city paid $220,000 for the condemned Sharkee’s property and $160,000 for the piece that housed Mert’s Repair (that moved to a new shop built on a city lot in the industrial park).
The city later purchased 2.13 acres from Gary Golla for $155,000 to square the corner of Hatting and Freeman for the  6.5-acre lot.
The city razed the buildings and improved the property with water, sewer and electric hookups to prepare the site for future development.
The costs for acquisition, demolition, and site improvements of the lots (more than $600,000) will be recouped with future tax increments.
The project utilized a $680,000 grant through the Department of Employment and Economic Development to meet workforce housing needs in Luverne.
The grant required a matching investment from the city, which fulfilled that obligation with its investment in the site improvements.
The way tax increment financing works, the new owners of the bare lot will pay full taxes on the improved property, but the difference between the current tax amount and the new tax amount will pay down the TIF debt.
After the TIF expires in 25 years, local governments will benefit from taxes paid on the full value of the developed lots.
The multi-phased project could produce up to $10 million in market value once the whole area is developed.
The overall plan is to redevelop the entire 6.5-acre area over the next five years into a commercial and housing neighborhood known as the Towne Square Addition.
Property will be sold off as it is developed into housing and commercial property in the mixed-use development.
At the March 23 meeting, Mayor Pat Baustian remarked that it’s good to be at this point of movement on the development.
“There’s 9.5 million (dollar) reasons why this needs to get going. We’ve been working on this a long time,” Baustian said, referring to the city’s investments in Towne Square so far.
“Our council has been proactive in cleaning things up and looking for housing options. It’s a big project, but it’s really a great opportunity for our city council and EDA to show what working together long term can accomplish.”

School hires Schmuck to oversee buildings and grounds

Cory Schmuck of Luverne will become the new director of buildings and grounds at Luverne Public Schools later this month.
Luverne School Board members approved his hire at their March 25 regular monthly meeting.
Schmuck graduated from LHS in 1992 and attended South Dakota State University in Brookings. He was hired by the city of Luverne in 1995, starting in the refuse department.
Currently he is the senior public works worker.
He’ll start his new position no later than April 19.
“I’m really excited,” Schmuck said Monday.
As director of buildings and grounds, Schmuck will assist in the management of the district’s health and safety programs, overall maintenance, budgeting and improvement of equipment and facilities.
Schmuck will also schedule and supervise maintenance and grounds staff.
Board members discussed the director position at their March 11 workshop. They reviewed job duties and salaries of similar directors in other school districts.
The director position has been vacant since 2011. Since then, head custodians were appointed in the separate elementary and middle-high schools.
Currently construction is underway that will connect the buildings, with work slated to be complete in June.
“With the new construction, new systems in the remodeled portion, and the retirement of Todd Mann (head custodian at the middle-high school), it seemed like a good opportunity to look at this,” said Superintendent Craig Oftedahl. 
The director of buildings and grounds position was first advertised last fall, but no one applied until the position’s reposting this spring, which yielded five applications. 
Schmuck’s salary was approved at $70,000. Board member Jodi Bosch didn’t attend the March 25 meeting.
 
In other personnel matters, the board also:
•hired Angela Sneller as elementary administrative assistant beginning April 5; Connor Hoffman, volunteer baseball coach; Mike Buss, middle school baseball coach; Corey Stroeh, middle school boys tennis coach; and Danielle Kneip, middle school softball coach.
• accepted the retirements of Marcia Boeve-Alfano, activities office administrative assistant, effective June 30; and Diana Erickson, middle school computer and high school business teacher, effective June 2.

Local yields improve over 2019, above state average

Local corn and soybean yields improved in 2020 by double-digit margins over the 2019 growing season, according to final county estimates released recently by USDA officials.
Local yields also topped the state averages.
Rock County corn production averaged 196.4 bushels per acre for 2020, up from 149.4 bushels per acre in 2019. The state average for 2020 was 192 bushels per acre.
The top five producing counties for corn yield in 2020 were Fairbault (216 bushels per acre), Dodge (210.4), Watonwan (209.1), Nicollet (207) and Wabasha (206.5).
Soybean yields also increased in 2020 to an average of 57.1 bushels per acre, up from 48.8 bushels per acre average in 2019. The state average for soybeans was 49 bushels per acre.
Fairbault County also led the state with the top soybean yield of 63.4 bushels per acre followed by Waseca (63.1), Nicollet (61.7), Brown (60.8) and Watonwan (60.5).
Rock County’s record-setting corn yields of 206.1 bushels per acre occurred in 2017. The top soybean yield was 61.9 bushels per acre set in 2016.
 
Average prices also climbed in 2020
Minnesota’s 2020 corn price averaged $4.20 per bushel, an increase of 94 cents from the last marketing year, according to the USDA crop value summary.
The average per bushel price for soybeans was $11.10 in 2020, an increase of $2.81 per bushel from 2019.
Overall Minnesota’s field crops were valued at $11.7 billion in 2020, the highest value since 2012 when crop values totaled more than 16 billion.
In 2019, crop values were the lowest since 2011 at $8 billion.

County releases updated feedlot numbers

The number of new livestock facilities built locally in 2020 increased over the previous year. However, the increase is attributed to the cattle industry rather than the hog industry.
Doug Bos, assistant director of Rock County’s Land Management Office, briefed county commissioners of the shift March 16 as they approved the county’s annual feedlot report.
Bos said the Land Management Office in 2020 permitted 11 feedlots, including five new hog barns, five cattle feedlot expansions and one dairy barn expansion.
Bos highlighted the change in the hog permit requests.
“We had about eight on the books but when COVID hit and they shut down production plants, it was a disaster for us,” he said. “We had a few that backed out or pulled back.”
This year permit requests have been slow with only two permit requests in the first three months of the year.
“Normally we’ll have upwards of five sites being permitted or going through the process,” he said.
In 2018, Land Management personnel permitted 10 new hog barns and one hog feedlot expansion. The number dropped to four in 2019.
Cattle feedlot expansions in 2019 involved one new barn. The previous year three barns were built.
Bos said his office stays in contact with all 600 feedlots in Rock County, even if no or very few livestock animals are kept at the location.
“We still register them as a feedlot,” he said. “It kind of keeps it as a placeholder as far as zoning, and they can do everything a feedlot can do in the way of confining animals.”
Of the 600, 547 feedlots are required to be registered with the county, either due to location near a shoreline or the ability to house between 10 to 999 animal units in feedlots.
According to the local report, there are 62 feedlots in Rock County permitted directly through the Minnesota Pollution Control Agency to house 1,000 AU or more.
Land Management officials regularly inspect 7 percent of the feedlot sites and oversee any complaints, as per a contract agreement with the Minnesota Pollution Control Agency.
In 2020, 49 feedlots were inspected and two complaints were filed with the local office. Both complaints were resolved.
“Our farmers really do try to do a good job,” Bos said.
“Sometimes you can get into a bit of a neighbor feud if they are spreading too close to a waterway or stream … and sometimes setbacks to road ditches (50 feet). People might forget or they may not have been aware.”
Budget for the feedlot program in 2020 was $105,000 with the state allocation of $56,341 and a local county match of $39,650. An extra $9,021 is earned from the MPCA for extra programming conducted by the local personnel.
Bos said the answer continues to be “yes” as it pertains to the county having enough land available to farmers with livestock.
“We are running about half of our acres with manure application,” he said. “The rest with commercial fertilizer – so we have room.”

Community Calendar April 1, 2021

Prairie Ally pruning workshop
Prairie Ally food forest will host a fruit tree pruning workshop from 1 to 2:30 p.m. Saturday, April 10, at the at 308 N Blue Mound Ave. in Luverne led by Blackshire Farms' Sean Mcfarland. The cost is $12 per individual or $18 per family. Register for the outdoor, hands on experience at https://www.eventbrite.com/e/pruning-workshop-tickets-142596593249 or call 605-951-0227.
 
Pleasant View annual meeting
Pleasant View Cemetery Association annual meeting on will be at 6 p.m. April 12 at the cemetery. This will be potluck. If weather is bad the meeting will be moved to the home of Brent and Jodi Taubert.
 
‘Stay Active and Independent For Life’
ACE of Southwest Minnesota will offer a free eight-week balance and fitness class via Zoom from 10 to 11 a.m. on Mondays, Wednesdays and Fridays, April 5 through May 28. Call 1-855-215-2174 to register for class #2380. Or go online: https://yourjuniper.org/Classes/Register/2380. There is no cost to attend these classes, however donations are welcomed.
 
Six-week Grief Support Group
Sanford Luverne Hospice will offer a six-week Grief Support Group  from 5 to 6:30 p.m. Mondays, April 5 through May 10, at Sanford Luverne Medical Center. This group is for anyone in the area grieving the death of a loved one, whether they were involved with hospice or not. Meetings are free and facilitated by Jill Roemen, licensed social worker. Call to register at 507-283-1805.   
 
Rock the Edge seeks local service projects
Rock The Edge Youth's Service Over Self will be June 21-25, and the group is seeking a variety of community projects, such as painting, cleaning, organizing, yard work or other projects. Call 507-227-1978, 605-261-4000 or email rocktheedgemn@gmail.com
 
Lutheran Women Spring Rally April 10
LWML Spring Rally - Pipestone Zone will be Saturday, April 10, at St. James Lutheran Church in Holland. Registration is at 9 a.m. and the rally starts at 9:30. Rev. John Grein will present "Living As A Christian In A Secular World.” Gifts of the Heart monetary donations will benefit Pipestone County Food Shelf. No lunch will be served.
 
April 14 and 15 dental clinic
#Luv1LuvAll Rock County Oral Health Task Force organized dental clinics on Wednesday, April 14, and Thursday, April 15, at Rock County Health and Human Services. These clinics provide dental care for all ages. Call 612.746.1530 to schedule an appointment. Exams, x-rays and general services will be provided. All forms of insurance accepted.
 
Community Education
Luverne Community Education will offer the following classes and activities. Call 507-283-4724 to register.
Preschool Fun Time on March 30 for parents with children ages 0-5.Registration required, but no fee.
Learn how to keep your yard looking fresh from George Bonnema at the Pruning Shape Up class on April 13.  Fee is $10.
Using glaze, heat, flames and cooling, you will transform a pottery piece into an Amazing Raku Treasure on April 17.  Fee is $5 plus pick out a piece of pottery ranging from $10 - $30 at the studio.
 
Tax assistance available for Rock County residents
United Community Action Partnership will be providing free online virtual tax assistance for residents living in Rock County and surrounding communities. See website for details at https://www.unitedcapmn.org/services/community-family-services/tax-clin…
The number to make an appointment and to get intake forms sent via mail is 507-537-1416 ext. #2163. Or email Courtney Newgard at Newgardcourtney.newgard@unitedcapmn.org.
 
Take and Make bird treat kits
Stop by the Luverne Area Chamber at 213 East Luverne Street to pick up one or more Take and Make bird treat kits. Kits are free, but a $5 to $10 donation is welcome to benefit Project Food Forest in Rock County. (Or donate online at https://donorbox.org/support-pff)
 
Rock County spring weight restrictions in effect
Spring weight restrictions are in effect on Rock County roadways. Load restrictions starting and ending dates are based on how the weather is affecting roadway strength. The dates are based on monitoring roads as weather conditions change, and they are variable, so drivers must check for updates throughout the spring. Call the Rock County Highway Department, 507-283-5010.

City sells bonds for pool funds, seeks bids for hanger

Luverne City Council members at their March 23 meeting adopted a resolution to issue and sell $6,460,000 in general obligation bonds.
Of that, more than 75 percent is to finance the pool expansion and renovation project and the rest is to refinance an existing 2012 bond issue for Highway 75 water and sewer improvements and for the city hall roof replacement.
Bids were received Tuesday morning, and George Eilertson of Northland Securities shared details of the proposals with the council that night.
He praised city finance director Barb Berghorst and staff for a smooth process.
 He said the city’s strong bond rating, an AA-minus, can be attributed to the city’s strong management and budget flexibility tied to available fund balances, which are 37 percent of operating expenditures.
“Of course, the better the rating, it drives down interest rates when you issue debts, so that’s working quite well for the city,” Eilertson said.
At the morning bid letting, there were four financing proposals, and the bid was awarded based on true interest costs.
The four bids were close, between 1.62 percent and 1.64 percent, and FHN Financial from Memphis, Tennessee, was the low bidder.
“True interest cost of 1.626 percent results in a nice bond issue,” Eilertson said. “Locking into a true interest cost of less than 1.7 percent is a nice result there.”
Refinancing the 2012 bonds cut the interest rate in half — about 1 percent, resulting in interest cost savings of roughly $46,000 over the remaining term of the bonds.
Mayor Pat Baustian praised Berghorst, City Administrator John Call and the finance staff for their work on the refinance project.
“It’s a long process and kudos to our staff. It’s no easy task. You all do a great job, and it shows on this. Thank you for a job well done.”
 
Airport hangar
The Luverne Airport Board is planning to build another four-plex hangar that will help to alleviate the backlog of airplane owners in the area that are looking for hangar space.
The airport has had 100-percent hangar occupancy for many years.
According to airport personnel, there’s a waiting list, and frequent active inquiries for hangar space.
The project is estimated to cost roughly $600,000 and engineering is estimated at $57,800.
DGR Engineering Company has completed the plans and specifications for the hangar, and Luverne City Council members took action at their March 23 meeting to move forward with the project.
Council members approved the plans and specifications for the new hangar and decided to advertise for bids.
Federal and state grants will also pay 95 percent of the costs.

Luverne Veterans Home receives Pinnacle Award

The Minnesota Veterans Home in Luverne has been recognized with the Pinnacle Customer Experience Award, through Pinnacle Quality Insight.
The company helps senior care providers improve patient experience and retain employees through survey platforms.
The Luverne Veterans Home “customer experience” is measured through Pinnacle’s monthly telephone interviews with the residents and/or their families.
The survey results are reviewed throughout the year to better understand residents’ needs and make improvements when necessary.
By qualifying for the Pinnacle Customer Experience Award, the Luverne Veterans Home has satisfied the rigorous demand of scoring in the top 15 percent of the nation across a 12-month average.
“This award is a testament to our excellent staff who are honored to serve our nation’s heroes,” said Scott Buchanan, Luverne Veterans Home administrator.
All four of the Minnesota Veterans Homes skilled nursing facilities have received this recognition for the past four years starting in 2018.
“We have set the standards high and have a track record of receiving these awards,” said Deputy Commissioner Douglas Hughes.
“Even a pandemic cannot impact our commitment to the highest quality of care and experience for our residents.”

Drone offers bird's eye view of construction

Luverne city officials got a bird’s eye view of construction progress on wastewater treatment plant improvements, thanks to drone images by Cade Wenninger.
They hired the Luverne High School senior through his Skygenix business started through the CEO program (Creating Entrepreneurial Opportunities).
The city paid Wenninger $200 to photograph construction progress in May 2020 and March 2021, and the video was shared with council members and staff last week.
It shows overviews and closeups of various stages of work, which includes:
•demolition of the 1950s trickling filter.
•oxidation ditch enhancements (two parallel oxidation ditches.)
•replacing the 1955 anaerobic digester with a new one.
•new electrical building with an emergency generator.
•new chemical storage building.
•new oxidation ditch treatment.
•increasing sludge storage from 650,000 gallons to 1,050,000 gallons.
•increased monitoring, control and automation of treatment processes.
Construction costs are being financed through bonds over the next 30 years for the plant that’s expected to last for the next 50 years.
Premium Minnesota Pork, which needed the extra wastewater treatment capacity, paid $6.7 million toward the $14 million project.
Gridor Construction, Buffalo, was awarded the bid and is more than 90 percent finished with the work.
The city’s Loop biking hiking trail follows the east side of the plant construction near the Rock River, and work on that part of the trail will be completed after waste water treatment plant construction is finished this fall.

Luverne School Board considers budget revisions

With an anticipated shortfall of $1.6 million reflected in the revised 2020-21 budget, Luverne School Board members postponed action on the budget until all receipts are noted.
District business manager Marlene Mann presented the revised budget at the March 25 regular board meeting, showing anticipated revenue of $17.9 million with expenditures at $24.3 million.
Mann said school districts typically revise budgets once during the spring of the current school year. Due to the complexity of this year’s budget accrual, she recommended another possible revision closer to the end of the fiscal year on June 30.
“Previously we rolled over the old budget,” she said. “This year it may need to be different than just a rollover.”
Included in the expenditures is $4.8 million in construction costs, some of which board members approved for the upgrade of materials used in the current construction project. The upgrades were approved from the general budget.
Board member Reva Sehr requested that the construction expenditures not be included in the revised budget.
The report included only the interest revenue of $46,707 (accrued during the current fiscal year) from the $30 million building bond passed three years ago.
“I feel we are expending more than we really are,” she said.
The exclusion brings general fund expenditures to $19.5 million and a deficit of $1.6 million.
“To me that seems a more realistic picture if we throw that (building expenditures) out of there,” she said.
However, the revised report of revenues and expenditures was not in sync with one another.
Revenues reflected eight months of the current fiscal year while expenditures reflected nine months.
“The summary report is a little deceiving,” said administrative assistant Brenda Teal. “It is dated March 25, but the (revenues) entered are only through Jan. 31.”
The revenue lag is attributed to delays in the release of grants and aid packages from state and federal programs associated with the coronavirus pandemic.
“It is a little tricky here with budgeting because of the COVID,” cautioned Superintendent Craig Oftedahl. “It might not be as bad as it appears it might be.”
Luverne School Board’s next meeting is at 7 p.m. Thursday, April 22. A board work session is planned for April 8.

Everything's coming up ...

It’s been a good news week here at the Star Herald, and it’s worth pointing out that we have a lot to be happy about.
For example, in our Home Yard and Garden edition in Section B, we have several uplifting stories of local young business people chasing their entrepreneurial dreams.
Please take time to read their stories and, if you’re looking for ways to spend your pandemic stimulus money, take a gander at their products and services.
Other recurring good-news stories we’ve enjoyed sharing are those that follow a cause and chronicle the path to help. On page 6A, for example, we’re reminded of Team E Fieldhouse in Hills, where local families who have faced adversity are turning their challenges into ways to help others.
It’s easy to criticize government and complain about taxes and spending, but if we take time to read, some of our city stories this week reveal ways our local government is investing in future growth. It takes a long view to appreciate, but in the case of the former Sharkee’s lot, we’d still be looking at that rotting building if city leaders hadn’t taken action to improve it.
… And, seriously, how often do we get to see fuzzy lambs on the front page? If that doesn’t tell the story of spring and hope, we don’t know what would.
Have a good news week, Star Herald readers.

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