City plans to locate new industrial park

By CHRIS VETTER

Journal Staff Writer

NEW ULM -- Another industrial park will be needed in New Ulm in the near future to draw new businesses to town, says Brian Tohal, coordinator of the New Ulm Economic Development Corporation.

Tohal told the New Ulm Economic Development Authority on Friday that he is beginning to look for a site with about 25 acres of space for new buildings.

"I would like to get something done this year," Tohal said.

The NUEDC has filled its industrial park space, as the organization is currently constructing a new facility for MTS Automation on an 11-acre plot along 21st North Street and Broadway.

"I think we need to have industrial land ready and available," Tohal told the board. "We won't know what opportunities we'll miss if we don't have the land. If we had a need for it right now, we'd have to scramble."

Any new industrial park would need utilities extended to that area. Tohal said he is pursuing a large piece of property so he can divide the expenses of those amenities among several new businesses.

City Manager Dick Salvati said the Public Utilities Commission is setting aside money to expand the city's sanitary sewer system -- a needed step before any new industrial buildings could be added to sewer lines.

"It (the sewer lines) basically dates back to the late 1920s or early '30s and is running at or near capacity," Salvati said.

Tohal said he has a couple of locations in mind but wouldn't name the sites, saying it could adversely affect the sale prices.

Some communities, like Blue Earth, have built 'speculation' buildings, then lure businesses to town because the facility is already in place. Tohal considers 'spec buildings' to be a risky venture.

"We haven't done that historically," Tohal said. "The risk is you build a building that doesn't fit any ones needs."

Tohal said he hopes for some partnership agreement between the city and NUEDC to create the new industrial-designed space.

Salvati said the city's first industrial park was constructed on city-owned land in the early 1970s, where Caterpiller currently has its plant. The city subdivided the land and sold the lots.

Salvati agreed that plans for a new industrial park should be considered.

"I think it will be important to have industrial land," Salvati said. "It's more challenging to find large tracts of land because of the way we are situated between the two rivers."

The NUEDC still owns the current MTS Automation building, which will become vacant this fall when the precise-motor company moves into the new building. Tohal said he is confident the building will have a new tenant within a few months of MTS vacating the premises. It is possible the building would be sold to the new tenant, he added.