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July 21, 1999
Council approves mall expansion studyCity will contribute to hire architect for preliminary studyBy GUY PRIEL Journal Staff Writer NEW ULM -- With an eye toward economic development, the New Ulm City Council, on Tuesday, gave 4-1 approval for an architectural study related to possible expansion of Marktplatz Mall. Robert Petroff, general manager of the mall, sent a letter to the city stating that management was in the beginning stages of discussions with a prospective tenant that would result in a major expansion of the facility. In an attempt to hire an architect to prepare a preliminary concept design drawing, Petroff asked the city to contribute $2,500 toward the study, as its share of the total $5,000 cost. The mall was opened in 1986 as a joint endeavor between the city of New Ulm and private individuals for a 25-year period, City Manager Richard Salvati said. "At the time the facility was constructed, the city financed the site improvements," he said. "The city owns the parking lot and the structure the mall is built on. It would be highly desirable to have a second anchor at the mall." Having a second anchor would increase the flow of traffic through the mall and would also draw more tenants into the mall, he said. "This may be a long shot in many respects, but it will give us some information that will be beneficial," he said. "Increasing the size of the mall will add to the stability of the area and will benefit the city." At this time, no information is available as to who the prospective tenant might be. Contacted Tuesday, Petroff declined to identify the prospective tenant. "This would be a good idea if we could get the mall filled," Council member Joel Albrecht said, opposing the city's participation. "What he is wanting us to do is put money into the project so he can lease space. We are not in the space leasing business." If the mall is successful in gaining the prospective tenant, there is nothing that will keep the owner from asking the city to finance the expansion, since the mall is a joint effort, he said. "If this is done, other merchants will walk in here wanting money for their expansions and projects," he said. "I am 100 percent opposed to this proposal. We shouldn't spend tax-payer money so the mall can secure a tenant." If the expansion is a success, it will increase the tax base of the area, City Attorney Hugh Nierengarten said. "The mall is a key element of the downtown area and we should do our part to invigorate expansion and development," Council President Daniel Beranek said. The current structure of the mall, with only one anchor, is a prime example of how not to build a mall and there is still a lot of investment for the city because of the mall, Council Member Denis Warta said. "This would be money well spent, because it will benefit economic development," he said. "It will also provide a visual picture of how the downtown can be helped." If the motion passes it would let other business know they could walk through the door and ask for dollar figures based on something they hoped would happen and could it, Albrecht said. "That makes no sense," he said. "If he should default and it becomes city property than we can look at it differently." During the meeting, the council also: * Approved the request from Veterans Service Officer for Brown County Terry L. Ferdinandt that State Street between Center and First South should be closed to vehicles from noon on November 10 until noon on November 12 for dedication of the Veterans Memorial. * Approved an agreement for professional services with Bolton and Menk for design services related to the extension of North Highland Avenue. * Scheduled a public hearing for road restoration of Fourth South Street from Garden to 224 feet west for 7:30 p.m. August 17. * Authorized State Bank & Trust Co. to provide services for the city, the Public Utilities Commission, Economic Development Authority and other accounts for a five year period ending July 31, 2004. * Approved the closing of city streets to vehicles upon approval of the New Ulm Police Department for parties related to the annual Night Out on Tuesday, August 3.
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