City faces development issues

Annexation could be one outcome of city growth

By RON LARSEN

Journal Staff Writer

NEW ULM -- The New Ulm City Council wound up its "planning for growth" sessions Tuesday, leaving its staff with the task of evaluating and prioritizing potential development sites in and outside the city.

When that's done, the staff must determine whether the city should expand its authority to the 2-mile maximum in certain areas surrounding the city. It also will need to build a solid case to present to the affected township boards.

"It's a big job for us," said City Manager Brian Gramentz, following the close of the second session. "There are some here who think this will all be done within two to three weeks, but it's not going to happen."

While City Engineer Steve Koehler had already compiled dollar numbers on preparing the various proposed development sites for businesses that may be looking to relocate or expand their existing businesses, Gramentz said the staff would have to do a benefit analysis, essentially a feasibility study, of the potential of one site versus another.

"We'll have to evaluate whether the city will be able to get its money back on costs that are assessable to the property on each development area," Gramentz explained. "If it's a smaller site, for example, and the potential return in taxes doesn't justify the city's costs in readying the site for development, we need to know that."

Then, when all the numbers are crunched, all the data are analyzed and the subdivision lines drawn showing the staff-recommended distance of encroachment into surrounding townships, the information will be presented to the city council, probably in another work-session atmosphere, for its approval.

Then, a council subcommittee ­ probably composed of two councilors, the city attorney, the city manager and possibly two to three other staff members ­ will begin the work of contacting individual township boards in an effort to reach an amicable take-over of authority within those townships.

Tuesday's session opened with City Attorney Hugh Nierengarten continuing his presentation on annexation issues. He outlined three different approaches to annexation.

"One would be annexation by ordinance in cases where the city already owns the land," Nierengarten explained.

The second method Nierengarten called "the process of orderly annexation. This is the one which is most conducive of maintaining good will with the townships losing the land."

He noted that he already has had discussions with Milford Township supervisors.

"They are realists in that they recognize this is the direction in which the city may go," Nierengarten told the council.

The annexation, if it were to occur, would involve development parcel No. 2 which contains 360 acres across U.S. Highway 14 from the airport.

Nierengarten who also has had "preliminary discussions" with officials in Cottonwood Township told the council: "As we talk with township supervisors, they want to know our grand vision. One of their concerns is erosion of their tax base. If we can define it, with Milford, agreements with them are possible."

The city attorney noted that the third possibility was annexation through a contested-case process.

"This should only be used in extraordinary circumstances," Nierengarten said. "With township officials, they're more likely to respond more favorably to a conciliatory and reasoned approach, such as the orderly annexation process."

In answering councilors' questions about the mechanics of annexation, Nierengarten said, "It's appropriate for the council to consider whether to extend our two-mile authority to lands not being considered for annexation. A large block of land, say like 500 acres, for example, could be brought in as smaller chunks as utilities and other services are extended."

Referring to the city's need for industrial development land, Councilor Clark Tuttle said, "I don't want to spend three and a half years trying to obtain property that we need today. This isn't rocket science to draw lines"

He was assured by several staff that the process would not have to take that long "as long as we have a plan."

Tuttle also asked what could be done to stay in touch with the needs and desires of the city's biggest employers so that the city wouldn't risk losing a major employer through inattention.

City Treasurer Gary Gleisner added "losing a big employer like Kraft or 3M is not only a hit on the city's tax base but utilities are hurt as well."

"What Brian (Gramentz) and I have discussed are formalized visits to the big employers at least once a year to discuss these things with them," Brian Tohal of the New Ulm Economic Development Corporation. "We feel that would be the best way of staying in touch with what's going on at these companies."

The council also discussed bonding strategies and discovered selling bonds isn't always the way to go.

The councilors were told selling bonds was best left for developing new development areas while street repair and related expenditures are usually better handled through operating funding.