City

accepts

float

donation

Heritagefest

previously

owned float

By KEVIN SWEENEY

Journal Editor

NEW ULM -- For many years, New Ulm has been represented in parades by a float owned by Heritagefest, promoting the festival and the "City of Charm and Tradition."

But with Heritagefest looking to cut its expenses to stay in the black, it is offering to give someone else the float, and the cost of storing, maintaining and transporting.

Tuesday, the New Ulm City Council became the reluctant new owner of the Heritagefest float, at least for this year. Mayor Joel Albrecht said a private local firm, Anderson Custom Processing, Inc., has agreed to cover the maintenance and transportation costs of operating the float this year.

But Albrecht, and council members, agreed that while there should be a New Ulm float, the city shouldn't really be in the float business. They expect someone else, such as the New Ulm Area Chamber of Commerce or the Convention and Visitors Bureau, will take over the float next year.

Council members expressed some disappointment that the Chamber had not taken the float. Chamber President Chris Hiller told the council the question had come up before the Chamber board twice, once in April before his arrival, and once afterward.

"The Chamber doesn't feel it is in their mission," Hiller said.

The CVB, he said, had inserted a line into its budget next year to provide $1,000 for the float.

Hiller said he is continuing to work with Albrecht on finding a solution to the float question.

Councilor Clark Tuttle wondered whether the float would present an insurance problem. He said until that question is answered, it would be silly to take ownership of the float and not be able to use it.

The council voted 3-2 to accept the donation of the float. Council President Dan Beranek and Ruth Ann Webster voted against the move.

Webster worried whether the city would have the same trouble trying to give the float away next year. Councilor Ron Fleischmann suggested the float could be declared surplus property and sold, if no one wanted to take it.

In other business, the council approved a Job Opportunity Building Zone Business Zone (JOBZ) subsidy agreement with Precision Tool, Inc., and received proposals from two other New Ulm business to expand under the JOBZ program.

Precision Tool, located at 2217 S. Broadway, will be spending no less than $375,000 on expansion and improvements at its location, and it will be creating two new full-time equivalent jobs. It will also maintain 20 FTE jobs, paying an average of $10.50 an hour.

In return, Precision Tool will receive a number of tax exemptions and credits, as provided under the state's JOBZ program.

The city also received two requests for consideration from two other local companies looking to expand.

Windings, Inc. President Roger Ryberg wrote to the city that Windings wants to build an 8,500-square foot addition and add a 22,400-square foot parking lot. The company has 84 employees (13 of those have been added since Jan. 1 this year). Ryberg said the additional manufacturing space would give Windings the opportunity to increase its production by 30 percent to 40 percent. He said Windings anticipated adding one new position (the minimum required by law), but councilors felt a 30 to 40 percent increase in production would likely require more jobs than that.

Ryberg said the hourly personnel wage would average $12, with an additional $7.84 in benefits.

Brian Tohal, representing New Ulm Economic Development, also wrote to the city, saying Beacon Promotions, Inc., which opened this year in a building provided by NUED, is looking for room to expand, and wants to lease an additional 15,000 square feet of space. The cost of the expansion project is $650,000, and Beacon would provide five new jobs paying at least $10.50 per hour.

Both requests were referred to the city attorney and staff to develop subsidy agreements.

Councilors Tuttle and Fleischmann brought up the issue of what should constitute a "living wage" in these agreements. The JOBZ program requires the creation of new jobs paying a living wage, and the councilors suggested the city come up with some formula to determine that wage, to be used in future subsidy agreements.

* The council also awarded bids for building a concession building at Mueller Park to Farasyn Construction of New Ulm. Farasyn was the low bidder at $133,957. Other bidders were Heymann Construction Co. and Salonek Concrete & Construction, Inc.

* The council approved the purchase of two tracts of property, the last two needed for the realignment of Oak Street. The city will purchase 0.14 acres from Glenn Wech for $3,300, plus a $350 temporary construction easement for each year of construction. The council also approved purchase of 0.97 acres from Hazel Schneider for $19,100, with a $264 temporary construction easement.

* The council approves several plats and conditional use permits. The final plat of the Skyline Terrace Addition at 2107 N. Highland Avenue was approved, along with the plat of the Airport Industrial Park Plat.

The council approved a variance request and a conditional use permit for the New Ulm Junior Baseball Association to operate a batting in a building on 16th South Street.

* The council approved several temporary liquor licenses, including one to Otto's Feierhaus and Bierstube to hold outside concerts on Aug. 13 and 14 outside the Holiday Inn.

The council also approved several street closings for things like Oktoberfest and auction sales, but tabled one request from Martin Luther College to close Center Street from Monument Street to Garden Street for a few hours on Oct. 2 to hold a "Great Pumpkin Race" during homecoming. The council wants to hear the thoughts of the city police and fire departments before closing the street. The college would also need to contact Brown County, because Center Street is a County-State Aid Highway.

* The council agreed to pay 90 percent of the cost of street improvements for the Welcome To Our Home improvement plan, which is more than 90 percent completed. The payment would amount to $304,696.34.