NEW ULM - The New Ulm Economic Development Authority (EDA) made several moves Tuesday to improve the rate of sales of lots in the Milford Heights Subdivision. The subdivision was built during the construction boom prior to the recession and the subsequent slump in the housing market .
The EDA approved signing a contract with Century 21 Realty in New Ulm to market the spec houses in the subdivision. The contract is intended to show the lots to a bigger audience and increase the chance of selling them. The contract sets a 3 percent commission rate with the flat fee of $1,000 for each vacant lot sold.
In addition, the EDA approved reducing prices on all the Milford Heights lots. The reductions would cut the price of regular lots by $2,500, putting six of the 12 lots at $20,000 each and the rest at $15,000 each. The spec houses lots were also reduced $15,000 each, and price of already existing homes cut. The first house was reduced from $152,900 to $150,400, and the second house was reduced from $147,500 to $145,000.
Finally, the EDA approved relaxing a series of building restrictions on Milford Heights homes. The changes were intended to allow more options to potential buyers, while remaining within the standards sought for the subdivision. Examples of changes include the requirement of a shade tree for every 30 feet of frontage to only one shade tree in the front yard. Another example is eliminating the requirement that dog kennels be located in the backyard to a clause that they cannot be seen from the street.