Planning for city growth
Land for development lacking, streets deteriorating

By RON LARSEN

Journal Staff Writer

NEW ULM -- The City Council learned Tuesday the city's utilities are well positioned to serve future economic development, but there's no development land left in the city and most streets are on the road to ruin.

It was the first of two sessions in determining where and what pace future growth would occur. The council and its staff will continue pondering the future and attempt to develop some sort of action plan next Tuesday.

Daniel Sonnek, head of Public Utilities engineering, pinch-hit for PU Director Robert Stevenson in presenting the department's appraisal of its capability in providing needed services to potential industrial parks, particularly outside the current borders of New Ulm.

The utilities' weakest point is in the sanitary sewer pipes that need replacing.

"The present condition of some of the pipe would make it more difficult to serve industrial development areas, depending upon the demand created by the firms," Sonnek said. "There are stretches of old, clay pipe that needs to be replaced because of infiltration, particularly during floods. We process a lot of river water."

Sonnek noted another water tower would be needed to provide water to certain parts of the community.

However, Brian Tohal, representing the non-profit New Ulm Economic Development Corporation which obtains land and works with industrial firms, painted a dim picture of immediate economic growth.

"There is nothing that could be built on today," Tohal said. "In a year or two, perhaps there may be one or two lots. My biggest fear is that we'll have a home business wanting to expand, and we'll drive them out of town because we have no space for them."

For the long term, he said the corporation was looking at a 24-acre tract within the city, known as the Tastel property; however, the seller wants too much money for it. He said the corporation has reached a verbal agreement with Sunset Properties to purchase approximately 28 acres by the airport, but that would raise issues on how services are going to be provided and how the land would be developed.

"It's not all about having land," Tohal said. "When I say industrial park, I'm talking about a developed area with utility services, curb and gutter, that is ready to build on.

Street Commissioner Tom Patterson called attention to the deteriorating condition of New Ulm's streets as well as the need for funding to pay for necessary improvements.

Patterson said the city is spending about $1 million a year on basically seal coating and patching which isn't doing the job.

He said testing indicates the average New Ulm street pavement section is in poor condition. His analysis indicates that the city needs to spend at least $2.5 million a year to gain ground on deteriorating pavement.

"Having first-hand knowledge of the associated costs and difficulties maintaining the New Ulm pavement system," Patterson said, "it is my contention that future growth should not be at the expense of existing infrastructure."

The council was told other obstacles to expansion included an ordinance that prohibits providing utility services outside city limits, the inability of placing liens on property that is not annexed, and with electrical service, the territorial restraints that are federally mandated.

However, City Attorney Hugh Nierengarten told the council that state law provides for a municipality serving subdivisions up to two miles outside the city limits.

In any case, because Brown County REA provides service to the surrounding rural area, the city would have to make some sort of agreement with BCREA in order to provide electrical service.

Council President Dan Beranek noted that New Ulm's Public Utilities Commission has had discussions with BCREA, but "what our PUC needs to know is how far out are we going."

"We've known for sometime that you're going to grow into our territory," said Les Schrupp, former general manager and now assistant general manager of BCREA until his retirement. "We don't want to get into a big fight over this. We're hoping it will be a win-win situation. We feel a territory trade (for land in Nicollet County now served by NUPU) would be advantageous."