The council’s consideration of a tax abatement request from M and D Properties LLC for a townhouse project on North Highland Avenue emerged as a central point of interest. The proposed development involves a 2.44-acre site intended for a two-bedroom townhouse complex, projected to cost $1.3 million. M and D Properties LLC requested tax abatement assistance to lower rental rates and address housing needs within the community. This initiative represents a shift for New Ulm, as the city has not previously extended tax abatement programs to residential projects.

The meeting revealed that while the maximum duration for such abatements can extend up to 15 years, residential projects typically receive shorter terms ranging from five to ten years. The council discussed hiring an external firm to prepare financial projections related to the tax abatement, with a proposed fee of $1,500. The council also emphasized the need for a development agreement and a public hearing to further assess the proposal.

There was a brief discussion about the timeline for presenting the development agreement and the project’s anticipated revenue. Although a timeline was suggested, its feasibility was questioned, highlighting the complexities involved in establishing a tax abatement program. The council ultimately passed a motion to authorize city staff to gather more information and prepare for future deliberations.

In addition to tax abatement, the council addressed several other matters. The renewal of the collective bargaining agreement with the American Federation of State, County and Municipal Employees (ASME) was approved. This agreement includes wage and market adjustments over the first two years of the three-year contract, along with updates to grievance procedures, compensatory time, and leave policies. A notable change in the agreement was the addition of Juneteenth as a recognized holiday. The council reached a consensus on the adjustments despite some concerns regarding bookkeeping complexities.

The meeting also set the stage for the 2025 Street Utility Improvement project, with a public hearing date scheduled for February 4, 2025. This project involves enhancements to roadways and sidewalks across various city areas. The motion to hold a public hearing was approved without additional discussion.

Another highlight of the meeting was the approval of a $200,000 Safe Streets and Roads for All grant, aimed at developing a comprehensive safety action plan to reduce serious injuries and fatalities on New Ulm’s roadways. The total estimated cost for the plan’s development is $250,000, with state funds covering the local match.

The council reaffirmed its participation in the Minnesota City Participation Program, which supports first-time homebuyers, and has been successfully utilized over the past three years. This program plays a role in enhancing housing availability in New Ulm, and the council expressed strong support for its continuation.

Additionally, the council reviewed a request for proposal to update the Park and Recreation Master Plan, originally developed in 1989. This update is part of the 2025 city budget, and the council agreed to proceed with consulting services to develop the new plan.

In a lighter moment, the council approved the hanging of colorful decorative cloth strips on lamp posts to celebrate the upcoming season of Fashing, beginning on February 23, 2025. This motion was met with no objections.