Marks on the sidewalk precede demolition on the current lot of Alliance Bank.

ST. PAUL — Alliance Bank, a community bank with over $590 million in assets, announced that crews will begin demolition work to prepare for construction of the new Alliance Bank building.

Demolition marks the first step towards the development of the building, which will officially break ground later this summer. The new building will be completed no later than first quarter of 2020.

The buildings to be demolished include the apartment building located at 301 German St. N. and the 314 N. Minnesota St. building. Once construction is complete, the existing bank building will be vacated and a new development plan for that space will await New Ulm. The move will take place after hours so there be no disruption in service.

The new bank will be a two story building, totaling over 20,000 sq. ft. All banking services will be located on the main level. The top floor will be designated for operations, finance, IT and compliance to support Alliance Bank’s seven branches. The lower level will house storage and safe deposit boxes.

The demolition marks the beginning of a new chapter for Alliance Bank. Alliance Bank was started in 1914 as Farmers and Merchants State Bank of New Ulm and was purchased by a group of investors headed by Victor Reim in 1982. The Reim family still has strong connections to New Ulm and many family memories. V. Philip Reim and his sister Ann branched into St. Paul in 1996. Their father Victor Reim II died in December 1996.

“Alliance Bank has a rich history with the city of New Ulm, and we are excited to begin the first step towards construction of a new, more modern building,” said V. Philip Reim, CEO. “With this investment, we are renewing our commitment to New Ulm and our employees, and improving hometown service for our customers.”