Developer

proposes

market-rate

apartments

TIF request is

part of plan

By RON LARSEN

Journal Staff Writer

NEW ULM -- The New Ulm City Council got a preview of yet another housing project that may be going up on Sunset Properties land across the street from the Welcome To Our Home assisted living project during its regular meeting Tuesday night.

This one, being proposed by housing consultant Harold Jesh of Sauk Rapids for Winkelman Building Corp. of St. Cloud, would be a 40-unit market rate for general occupancy project. It would not be an assisted living project.

Jesh told the council the rental housing project would be built on 3.8 acres of land bounded by Karl Drive and North Highland Avenue, providing the city would approve tax increment financing for the project.

"I'd like to come to your next meeting to discuss establishing a housing district utilizing TIF financing. I'll bring two performas, one utilizing TIF financing and one without which would show that with TIF, we'd be able to do the project; the other would show that we couldn't," Jesh said.

He also asked for a meeting with City Manager Brian Gramentz and other city officials including the city attorney to go over details of the project before the next meeting with the council.

Gramentz said he would be ready to meet when Jesh is.

"In analyzing the local housing market, there is a need for this type of housing. We're strong on professional management; we're also strong in wanting to use local sub-contractors and local bank financing."

In answer to a question from Councilor Ron Fleischmann, Jesh said the plan would be to have at least 40 garages, one for each unit "because we know that it gets cold here in New Ulm, too." He noted there's also the possibility two garages could be offered with some units.

Jesh said later that Winkelman has 24-unit, market-rate general occupancy developments in Granite Falls and Dodge Center.

Transfer of funds

The council approved more than $3 million in 2003 year-end transfers and encumbrances, as recommended by Finance Director Reginald Vorwerk. They included $835,000 in 2003 budgeted appropriations to sinking funds, transfers from sinking funds totaling $260,167.88, $2,353,220.99 in transfers to other funds including $2,077,363.40 to the 2000 sales tax referendum project and $97,197.07 to Hermann Monument Base Restoration Fund, year-end encumbrances to be re-appropriated in 2004 for $86,686 and close-out of the 2002 G.O. Bonds Construction Fund and transferring $482,634.94 to the 2003 G.O. Bonds Construction Fund and close-out of TIF H3 (Ridgeway on German #2) Fund and transferring $1,269.29 to the fund from the City Revolving Loan Fund.

In other action, the council:

* Approved applying for a limited use permit from Minnesota Department of Transportation to allow constructing about 500 linear feet of the Recreational Trail within the northern 20 feet of U.S. Highway 14 right-of-way. The trail route had to be moved because the right-of-way was narrower than first thought and a building blocks the original route, City Engineer Steve Koehler said.

* Authorized city participation in the deer control program conducted by the Minnesota Department of Natural Resources in 2004, the 13th consecutive year of city participation. The 2003 program resulted in the harvesting of 23 deer at a cost of $2,728.

* Authorized the decertification of one-half of the property located in Tax Increment Financing District No. ED-11 because it hadn't been developed.

* Approved a disbursement of $50,000 from the sales tax referendum projects escrow account to the projects' general contractor, Heymann Construction Company of New Ulm.