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June 3, 1999
City plans to develop North Highland extension in 1999Street would runthrough primepotential growth siteBy KREMENA TODOROVA Journal Staff Writer NEW ULM - Development of the northerly extension of North Highland Ave., a project originally scheduled for 2000, may start in 1999, as a result of action taken by the New Ulm City Council Tuesday night. The Council voted to add this project to its 1999 street improvements list, if it proves feasible in terms of city staff time and the city's ability to issue bonds. Final action on the issue is expected at the Council's next meeting June 15. The extension, about 1.5 miles long, runs through one of New Ulm's prime potential growth sites, and officials hope that opening up the street will encourage the area's development, to help ease a chronic housing crunch in New Ulm. The project was proposed by Councilor Clark Tuttle who motivated it with a need to "fill up" existing sites in the city, as an alternative to "urban sprawl". There is a significant number of areas within in the city limits that can be developed as an alternative to developments moving out of town, Tuttle said. He also stressed that the contract for 1999 street and utility improvements is approximately $345,000 less than the city engineers' estimate of some $1.3 million. This makes it possible and "appropriate" to improve the street this year, rather than next. The spending was supported by Councilor Denis Warta, who recalled that the city's financial consultants recommend a steady level of borrowing each year, to maintain New Ulm's high bond rating. "I don't know if it wise to reduce our bonding issue," Warta said. Street improvements are funded with bonds, and according to City Attorney High Nierengarten, the city needs to initiate new public hearings to raise the cash. While spending an extra $345,000 would be acceptable in terms of policy, the funds cannot be automatically added to the 1999 bond issue, Nierengarten said. According to City Manager Richard Salvati, the project needs to be appraised in terms of city staff time. Another major project, the construction of a baseball field at the former American Artstone site, has kept city crews busy, Salvati recalled. "There is a series of steps to take, to see if [the project] is possible," he said. City Engineer Steve Koehler says work on North Highland in 1999 would involve extending utilities, grading and laying a gravel surface, but not paving the road. No housing development plans for the North Highland area have been unveiled, but the site was identified as a potential growth area in a major study earlier this year, designed to assess the city utility system's capacity to handle new growth. It is also one of four areas earmarked for development by an ongoing housing planning workshop spearheaded by the Chamber of Commerce. New Ulm officials recently began cooperating with a developer, to encourage housing construction at another, 90-acre site nearby.
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