EDA hears good news on George's

By RON LARSEN

Journal Staff Writer

NEW ULM -- Economic Development Authority commissioners learned Tuesday that insurance rates are still heading toward the roof and George's Ballroom may have a future.

Only the current carrier, State Farm Insurance and Casualty Company, 1300 S. Broadway, offered a bid for the EDA's Public Housing Project insurance coverage.

Continuing the $1,000 deductible, the premium for fire and extended coverage/all-risk, comprehensive general liability and boiler and machinery insurance will amount to $7,945.

Assistant Executive Director Dave Schnobrich said the bid represented an increase of $1,243 from last year when the premium was about double the previous year.

The EDA's industrial development coordinator, Brian Tohal, reported one of the two plans received by the city on George's Ballroom showed some promise.

"The proposal we have from this individual is to convert George's Ballroom to a bar/restaurant with a modified ballroom."

The proposal also anticipates some tax increment financing dollars and a "junior" loan, Tohal said.

City Manager Brian Gramentz reminded the commissioners that the city also has a reuse study by the State Historical Preservation Office starting on George's Ballroom which "should result in an events-based action plan."

On getting a report on a program for homeless people, Chairman Jay Vancura asked, "We have homeless in New Ulm?"

Housing Coordinator Colleen Ratcliff assured him there are homeless in the city although "most result from emergency situations (like spousal abuse)."

The commissioners also learned that because of changes in regulations within the U.S. Department of Housing and Urban Affairs, the city is paying a rental subsidy for a person who has moved to Nevada.

Commissioners were informed that the operating subsidy provided by HUD for the next fiscal year, starting July 1, will be $58,902 which is nearly $4,000 less than the 2002-03 subsidy of $62,570.