Majestic Bluffs

housing development

presented to council

City staff told to

create preliminary

development

agreement

By KEVIN SWEENEY

Journal Editor

NEW ULM -- The New Ulm City Council got its first look at a proposal to develop property on the southeast corner of New Ulm, across the Cottonwood River.

A 169-acre tract of land currently owned by LaRay Kral and farmed by his son Alan would be the site of a development with 349 homes, ranging from houses on bluffs overlooking the Cottonwood River to twin homes and triplex townhomes located along an extended Cottonwood Street.

Pat Lowther, representing the Krals, said the project would be called The Majestic Bluffs, and would appeal to a market of people in New Ulm and the surrounding area who are looking for that kind of living experience.

Lowther said the project is a long-range one. While the owners would like to get the land annexed and platted and begin pre-sale of lots this coming year, it would be 12 years or so before the whole development is completed.

The first phase of the project, said Lowther, would be in the northeast quadrant, large section that would include some bluff lots and smaller lots in the interior, with twin townhomes.

The developers are hoping the city would extend Cottonwood Street, infrastructure and utilities into the area, and defer the assessment until other parts of the project get under way. The cost of the development would be about $4.5 million.

Councilor Clark Tuttle pointed to the recent housing study of New Ulm done for the city Economic Development Authority, and asked how the Bluffs project would address the need identified in the study for affordable housing in the $125,000 to $150,000 range. Lowther said the project wouldn't provide homes in that range. The development costs would be too high.

Tuttle said he didn't see why the city should defer assessments for a project that doesn't address the city's identified housing needs, sparking a debate with Lowther over how the city should approach that issue.

Lowther pointed out that if the city wanted the Bluffs group to dedicate a portion of land to that kind of housing, the project wouldn't be feasible.

Assistant City Attorney Roger Hippert also pointed out that the city has devoted staff time twice in the past to work with the Krals on their development ideas, and those ideas didn't come about. If the city would invest its staff time and city attorney time into the project, it would want some guarantee that it would be reimbursed for its time if the deal fell through again. Lowther said unless the city puts that demand on all its developers, it shouldn't apply to this project.

After discussions about setbacks from the ridges overlooking Flandrau State Park and the Cottonwood River, and whether this development would open up housing in other parts of New Ulm, the city council voted to have the city attorney and staff work on a preliminary development agreement, setting forth the general expectations.

TIF District

In other development business, the council approved a modification to its Tax Increment Financing District H-4 to include the Skyview Terrace Partnership, which is planning to build a 49-unit rental housing complex at 2107 N. Highland Avenue.

Tax increment revenues would pay for land acquisition, public improvements and other related development costs, not to exceed $450,000. The city's TIF payments would be financed by the increase in property tax revenue generated by the improvements to the property over 20 years, which would go to the city. After that time, all tax levying entities, including county and school district.

Licenses

In other business, the council approved liquor licenses for JRJN Inc., which will be operating a catering service, deli and kitchen store at 209 N. Minnesota St. Renee Retzlaff, who will be running the operation, told the council the business is scheduled to open Oct. 15.

Putting Green

The board heard a progress report on the Putting Green project. Brian Tohal said nine holes of the miniature golf course/environmental education complex are nearing completion, and the group is hoping that the nine holes might be ready to play the first couple of weeks in October, if weather doesn't disrupt the contractors.

Library update

The Council also approved plans and specifications for the Public Library accessibility project, which will build a connecting section with an elevator in it between the old 1935 library building and the 1973 library building next door. The plan includes remodeling in the lower level, and would make both buildings more easily accessible and usable.

Lower Sioux

The Council also approved a resolution supporting the reopening of the Lower Sioux Agency historic site, urging that the site be kept open and accessible to all Minnesotans. The site was closed on June 30 by the Minnesota Historical Society after the Legislature cut MHS funds.

* The council also approved the purchase of .35 acres of land for the extension of North Highland Avenue from Highway 29 to North Garden Street. The 100-foot strip of land along Boundary Street would provide a right of way and a route for the power line the city is running to the new Airport Industrial Park.