NEW ULM - The New Ulm City Council approved a $110,000 loan Tuesday to PC Properties, LLC as part of an effort to bring Commercial Upholstery to town.
PC Properties is negotiating a purchase of the former PGI Mailers building at 2009 N. Broadway St. United Commercial Upholstery will occupy the building. The business, which has been located in Nicollet for the past 13 years, does upholstery for golf cart seats and furniture for the marine industry. Seventeen jobs will move from Nicollet to New Ulm. The move provides space for growth of United Commercial Upholstery.
The City loan will be the third debt in purchasing the building. The total for the three loans is $1.1 million, with the other financing coming from a bank and the Small Business Administration. The City's loan of $110,00 will have terms of 3.6 percent over 20 years, with possible adjustments in five, 10 and 15 years. The City traditionally sets 10-year loans, but SBA?requires that all subsequent loans match its 20-year terms. The City funds come from its Revolving Loan Fund.
The terms of the loan will require United Commercial Upholstery to add seven full-time jobs and one clerical position at a minimum of $12.50 per hour within the next two years. These jobs are beyond the 17 existing jobs.
The Council approved modifying a TIF District for the 42-unit Winkelman Building Corp. apartment building project at 2107 N. Highland Ave, which is near the former Kmart site. The TIF is limited to 25 years and reimbursements cannot exceed $550,000. To comply with TIF requirements, 20 percent of the apartments must be rented to people making less than 50 percent of the Brown County median income. The modification was necessary because the number of apartments increased from 35 to 42 units.
The Council approved issuing a $4.6 million bond on behalf of Highland Regency House, LLC to help finance its 50-unit apartment project at 1520 Sunset Ave. The bond will be loaned to Highland, and the company will be completely responsible for it. The bond does not count towards the City's normal bond limit for city operations.
The Council approved the final plat for Airport Industrial Park No. 2 at 6 Somsen St. The request came from Brad Finstad, who runs Frontier Labs MN on that location. The plat division will allow the unoccupied portion to be sold to a developer. The potential developer was not named.
The terms of the approval include a 50-foot access and utility easement for Lot 2 and no vehicular access to that lot from North Highland Avenue.