Condos proposed for mall Two-phase project could start as soon as next spring

By FRITZ BUSCH

Journal Staff Writer

NEW ULM -- In an effort to increase the occupancy rate at Marktplatz Mall, owner Bob Petroff presented plans for a condominium development project to the New Ulm City Council during an informational meeting Tuesday afternoon.

Petroff, a Bloomington real estate broker, said his company has been exploring housing concepts for the downtown New Ulm mall over the past couple years. After considering an apartment development project, he settled on a condominium project.

The two-phase project, that could see a construction start as early as next spring, would add 31 one-bedroom and two-bedroom condominiums in the first phase and 20 condos in the second phase.

The project would require replatting. The existing mall property would be divided into three properties.

The northern third of the mall would house Herberger's and other retail space. The center third would house retail space and a courtyard dividing it from condos. The southern third of the property would include four levels of condos and a courtyard and lobby. Parking underneath the mall would remain as it is.

At its regular meeting Tuesday night, the council voted to instruct city staff to work with Petroff and Marktplatz Mall management on the details of the plan, including platting and rezoning issues, and transfer of ownership of some of the parking space under the mall to Petroff.

Councilor Clark Tuttle, however, cautioned that the city should determine whether Petroff is financially able to carry out his plan before committing much city staff time to the project.

Petroff said he got positive feedback from consultants regarding the property location, the need for more housing in New Ulm and what it should cost.

"They told us it was a super site for housing, and downtown housing is now a national trend," Petroff said.

He said condos facing east and south would afford a nice view of the Minnesota River Valley and those facing west would overlook a courtyard and bluffs on the western horizon.

Four condo sizes would be available, ranging from 1,050 square foot, one-bedroom, one-bath units; 1,150 square foot two-bedroom, one-bath units; to two-bedroom, two-bath units with 1,312 and 1,575 square feet. Corner units would feature two bay windows.

Condo prices would range from $115,000-$150,000. Units would feature nine-foot ceilings. Additional features could easily be added to pre-sold units, according to Petroff.

The first floor of the condo building would include a meeting room, community room, fitness center and courtyard with gardens and a sidewalk to Minnesota Street. An intercom system would be used to control building access.

The New Ulm Economic Development Authority currently owns the parking area below the mall. Petroff, who is in the 15th year of a 25-year property lease, would take over the lease under a development agreement that he said could add greatly to downtown vitality.

He said the condominiums would be attractive to senior citizens, people approaching retirement and young professionals.

"I don't know of any local banker or restaurant owner that is not for this project," Petroff said. "This would generate much more tax revenue and a sense of ownership while freeing up housing in other parts of town."

He hopes to begin work on new lease agreements, platting and title transfers in order to begin pre-selling condo units as early as October 2004. One-third of the condos would have to be pre-sold in order to get project financing.

City Council President Dan Beranek said said he liked the concept and thought it made sense.

"I think everybody sees this as a positive," Beranek said.

Councilor Ruth Ann Webster agreed, saying she thought the project was "exciting."

City Manager Brian Gramentz said issues on all sides of the project will be identified and dealt with at future city meetings.