By Lori EhdeAfter several months meticulously calculating numbers and tabulating dollar figures, it appears the new Sioux Valley Hospital and Clinic is nearing the starting line.Earlier this year, Sioux Valley announced plans to build a $17.5 million, 78,000-square-foot hospital and clinic campus on the north edge of Luverne.The project would strengthen the long-term economic viability of Luverne, and in return, Sioux Valley is seeking local upfront financial helpOn the agenda of the Aug. 12 Luverne City Council meeting are some major items that will put the wheels in motion for construction.It appears council members are prepared to give final approval to the Development Assistance Agreement that’s been evolving with Sioux Valley.In the terms of the agreement, the city will grant $2.5 million to the project. Part of that amount includes what the city will pay to purchase the existing hospital and clinic, valued at roughly $1.2 million.The city will offer $1 million to Sioux Valley in the form of an interest-free loan to be paid back over 15 years. The agreement stipulates that if Sioux Valley’s profits are better than expected, the loan will be paid more quickly.The city will assume responsibility for the roughly $300,000 debt remaining on the clinic.Funds for both the grant and the loan will come in part from proceeds of the sale of the old hospital several years ago to Sioux Valley.The Luverne Community Health Care Foundation plans to raise $1 million to support the project, and the city plans to sell bonds to fund its infrastructure improvements.By approving the agreement, the city will also commit to providing nearly $2.45 million infrastructure improvements for the project. This work includes street access, water, sewer, electricity and new water tower.This will be funded over time partly by revenues generated from Sioux Valley utilities purchases.The hospital will be accessed on its south side from Veterans Drive. After a meeting with the Minnesota Department of Transportation, plans to access the hospital directly from Highway 75 were abandoned.In addition to approving the Development Assistance Agreement, the Aug. 12 City Council agenda includes annexing the 62-acre site formerly owned by the Christensen Estate.The property is positioned between the Veterans Addition and the township gravel road that runs east-west between Highway 75 and Blue Mound Avenue.Rock County’s contribution to the project would include upgrading that half-mile stretch of gravel to an urban section of road. The work, estimated to cost about $1.2 million, would include building it up to a 9-ton paved road curbs and gutters, plus sidewalks on the south side.According to Rock County Highway Engineer Mark Sehr, the county’s work will also include cutting the hill down on Highway 75 at the intersection and putting in turn lanes on both Highway 75 and the new road.The county will take over the road as a County State Aid Highway. It’s new rural street name is 131st Street.The hospital and clinic campus will be accessed on its north side from this road. Plans call for this to be the route for truck traffic and emergency vehicles.According to Interim City Administrator Jeff Haubrich, the city’s Development Assistance Agreement is coming together about the same time as Sioux Valley planners are finalizing figures on their end."It’s sort of a chicken-and-egg thing," Haubrich said Tuesday. "We’re not able to commit to our agreement until they have their costs figured, and they’re not able to sign off on their end until they have a commitment from us. … But it’s coming together."Ground breaking may be as early as September, and work may be complete by mid-2005.
