New Ulm City Council Approves Housing Developments Amid Concerns Over Tax Abatements
- Meeting Overview:
The New Ulm City Council meeting on July 15, 2025, saw the approval of several housing development projects and related zoning changes, despite concerns about the implications of tax abatements on city revenue. Additionally, various infrastructure improvements and licenses were discussed and approved.
The council gave the green light to the Highland Apartments development agreement, allowing for the construction of 148 residential units on North Highland Avenue. This project will be executed in two phases, with the first phase involving two buildings of 38 units each and the second phase adding two more buildings with 36 units each. The property is being rezoned from agricultural open space to a multifamily residence district and planned unit development district. This agreement necessitates the construction of public utilities and street improvements, including extending 10th North Street. The council emphasized the importance of ensuring public improvements meet city standards, traditionally secured through letters of credit. However, the developer proposed a performance bond instead, prompting the council to review this alternative form of security further. The developer’s history of successful projects in other communities was noted as a reassurance of their capability to meet city standards.
Concurrently, the council discussed a zoning ordinance change to accommodate a new “tiny homes” project. This initiative, supported by the Economic Development Authority in collaboration with New Brick, will be located on the south end of New Ulm. The associated ordinance, number 2025-109, transitions the zoning from a medium density residential district to a planned unit development district. With no changes since its initial reading, the ordinance was approved, set to be published and effective 30 days later.
In addition to zoning changes, the council deliberated on a tax abatement request from M&D Properties LLC for a townhouse project on North Highland Avenue. This initiative involves the construction of an eight-unit townhouse and a planned six-unit structure. The tax abatement aims to mitigate excessive building costs and ensure affordable rental rates. Concerns about the impact of such abatements on city revenue were discussed, given that the city has thresholds for acceptable levels of tax abatement. The council authorized city staff to prepare the necessary documentation for this tax abatement program.
The council also addressed a development agreement for the Land Haven Edition, which includes 28 lots with a U-shaped private street. The project, proposed by Tony Golden of Landhaven Development LLC, involves extending water and sewer services to residential lots. Conditions for approval were outlined, including fees and filing requirements, and the council approved the final plat without public objection.
Several licenses and permits were processed, including a noise variance for the “Party by the Pond” event organized by Music for Mission, allowing amplified sound until midnight. Other approvals included a tree service license for Hansa Tree Service LLC, an annual on-sale wine and malt liquor license for TDH Happy Joe’s LLC, and a cannabis microbusiness retailer registration for Brickside Growers Incorporated. A taxi license for Millicare Transport LLC was also approved without discussion.
In infrastructure-related matters, the council reviewed a preliminary official statement for general obligation bonds series 2025, moving to send the draft to bidders. The council also set a public hearing for the final assessments of several improvement projects for September 16, 2025.
The police department received council support to apply for a Toward Zero Deaths enforcement grant, targeting traffic safety and reducing fatalities. The council also approved city manager Chris Dalton’s attendance at the 2025 ICMA conference in Tampa, Florida.
Kathleen L. Backer
City Council Officials:
, Andrea S. Boettger, Council, David H. Christian, 1st Ward City Councilor, Eric R. Warmka, 2nd Ward City Councilor, Thomas E. Schmitz, 3rd Ward City Councilor, Larry A. Mack, 4th Ward City Councilor
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Meeting Type:
City Council
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Committee:
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Meeting Date:
07/15/2025
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Recording Published:
07/15/2025
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Duration:
71 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Brown County
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Towns:
New Ulm
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