NU retail

needs

attention,

say grad

students

By RON LARSEN

Journal Staff Writer

NEW ULM -- If the downtown retail district is to be revitalized, New Ulm's Economic Development Corporation, which now guides its industrial growth, is best equipped to resurrect retail businesses.

That's the conclusion reached by a group of graduate students who have developed a plan entitled "New Ulm: A Vision for Downtown." The six students are working under professors Perry Wood and H. Roger Smith in the Urban Planning Studio, Urban and Regional Studies Institute at Minnesota State University, Mankato.

The students presented an overview of what will be in their final report to business leaders in New Ulm Thursday. Their final report is due to be finished in two to three months.

"A downtown partnership must be formed to coordinate the activities needed to revitalize the downtown district, and we believe the Economic Development Corporation has strong leadership qualities to lead downtown revitalization," said Dan Jochum, a part-time grad student and full-time urban planner in Minneapolis.

Among its attributes, the group said, are the organizational tasks it would bring to the table, including revising bylaws, leading downtown development, overall leadership and its ability to obtain resources and provide management advice.

Retail in New Ulm is starting with a disadvantage because the local median household income of $40,048 a year is well below the state median income of $47,111, David Gross explained. Its median age is 37.8 years.

The city's uniqueness in design "sells the business and downtown district," Chris Vrchota said. "The historic structures and Streetscapes 'sell' New Ulm."

What detracts, however, according to Vrchota, are "alteration of structures, deferred maintenance and lack of directional signage and gateways, as well as design guidelines."

The city should encourage reinvestment in buildings and enhance signage, as well as doing promotions, he noted.

"Promotions attract people, generate retail sales and expand market awareness," Tony Wippler said.

The study's recommendations are to establish a promotions committee, develop a downtown Welcome Wagon and capitalize on festivals that are not downtown. Also, weekly and seasonal events and a marketing campaign should be initiated.

"The downtown district should have economic restructuring goals including strengthening and expanding existing retail, retaining existing retail and drawing new businesses into the downtown," Jochum said.

He noted that while the city's population has remained "fairly consistent" over the past three decades, its trade area population has declined significantly in the '80s and '90s."

That factor is compounded by a retail sales "leakage" of 39 percent. That means, he said, consumers in the New Ulm trade area are spending 39 percent of their retail dollars outside the trade area.

Retail has continued to decline through the Æ90s while "service" firms grew significantly, Annalee Garletz said.

"New Ulm is fortunate to have two highways (U.S. 14 and Minnesota 15) go through town," Jochum said, in response to a question on gateways. "You need that connection with the downtown."

However, the students indicated that work on restoring buildings in the downtown may have gone too far.

"Turning it back to what it looked like before can enhance the downtown," Jochum said.