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City Council to enter into new lease talks with NU Steel

NEW ULM — The City of New Ulm will soon enter into a new lease negotiation with the New Ulm Steel hockey team for use of the Civic Center.

The current lease was set to conclude in March 2019, but a section of the lease allowed for early termination if the average attendance of the games fell below 400 paid fans.

The team desires to have a new lease in place by Sept. 1, and extend for five years, concluding in March 2023.

The New Ulm Steel is requesting the new lease include a fee reduction and additional building improvements to be funded by the city.

Staff had already begun developing a plan to expand office space in the Civic Center. After being alerted the Steel plan to renegotiate the lease, both City Manager Brian Gramentz and City Attorney Roger Hippert advised the council receive the report of the office expansion plan and allow this construction project to be part of the negotiation process.

The New Ulm Steel informed the city they are struggling financially due to the fees agreed to in the current lease, but staff have not seen any financial reports to support this claim.

Over the last two seasons the New Ulm Steel have paid a total of $81,879.70 to the city for the use of ice, advertising, locker room rent and security deposits.

It was noted that of the four main user groups operating out of the Civic Center, the New Ulm Steel purchase the least amount of ice time. The New Ulm Hockey Association, New Ulm Figure Skating Club and New Ulm High School purchase more ice time and none are for-profit businesses.

Councilor David Christian commented that he was reluctant to give the New Ulm Steel too much considering the other users put more money into the Civic Center and were not making any demands.

The council agreed with Gramentz and Hippert and accepted the office expansion report in preparation for future negotiations with the Steel.

In December, the council authorized modification be made to a board storage room to be used as additional team room space to prevent other users of the Civic Center from displacing the New Ulm Steel from their team room. This project is currently under construction and will cost approximately $23,500.

In other news, due to a 2014 Minnesota Supreme Court decision, the city is required to make a $20,570 to the legal heirs of LeRoy Haas, a past employee.

In August 2014, the state Supreme Court decided that under Minnesota Statute permanent total disability (PTD) benefits cannot be reduced by any government retirement benefits except for Social Security benefits.

This reverses a long-standing interpretation of Minnesota law by the Workers Compensation Court of Appeals. Under the new legislation, insurers and the self-insured must agree to pay claims for any increased benefits resulting from the lack of a retirement offset.

Haas was the only employee impacted by this change. The amount owed to the employee is $20,570. Since Haas has since passed away, this money will be paid his Trust. The council unanimously agreed to make the payment to the Hass Trust.

The Department of Labor notified the city about this change. Cities across Minnesota are facing similar issues involving back pay.

The city is moving forward with the intent of acquiring a parcel of land currently owned by the New Ulm Economic Development Authority (EDA). The parcel is adjacent to Kiesling Park. The land is 25 feet wide and 165 feet deep. The parcel has been used for Kiesling Park activities for over 20 years. The Parks Commission previously recommended acquiring the land.

The Lamplighter Bar and Grill has an easement agreement with the EDA that will remain in force. Elements of the agreement include the Lamplighter being able to slightly encroach for their awning and exhaust venting along with use of the rear parking area in exchange for $1,000 per year.

Brown County estimated the land is valued at $25,300.

Council President Charlie Schmitz suggested the EDA might be willing to donate the land to the city at no cost.

The council authorized acquisition of the parcel. The EDA will have the option of donating the parcel or begin negotiating a purchase price.

The council considered a resolution requesting the chief judge of the District Court to appoint a charter commission to review the existing New Ulm City Charter.

The last time New Ulm established a charter commission was in 2011. The decision to appoint a new commission came following the last City Council meeting in which blight ordinance revisions were discussed.

At this time there are over 10 New Ulm residents volunteering to join the commission. The council has not determined how many members will serve on it. The 2011 commission was served by seven commissioners, but the council was willing to appoint more.

The council voted to table the resolution and make final appointments to the charter commission during its next meeting.

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