Kirk bid on the historic Twickham house in hopes that he and Lulu might someday raise a family there, but the town elders decided to sell the house to Luke (who later reconsidered and revoked his bid). Kirk later on tells Luke he's thinking of breaking up with Lulu, and Luke threatens to beat him up (Luke's way of saying that Kirk has a great thing going with Lulu, and that breaking up with her would be a stupid thing to do).
Kirk's desire for the Twickham house as a family home contrasted with the town elders' decision to sell it to Luke. Kirk then contemplated breaking up with Lulu, and Luke expressed his disapproval through veiled threats of physical violence.