Staff photo by Clay Schuldt Community Housing Development Corporation (CHDC) Vice President Heidi Rathmann (left) and President Elizabeth Flannery gave an update on the Emerson Union Apartments. This apartment project is adjacent to the State Street Theater in the former middle school.

NEW ULM — A special update was given on the State Street Theater (SST) and Emerson Union Apartments Tuesday at the New Ulm Country Club.

Thor Mickelson of Mickelson Media Foundation was the keynote speaker. Mickelson and his father helped establish the New Ulm Area Foundation by offering a matching fund, which has helped many area non-profits, including State Street Theater.

Mickelson grew up in New Ulm and said it was a great place to live in because it is a community that supports development.

“Theater is at the heart of a community,” Mickelson said. “It is one of the best vehicles for building a community. It lets us see who we are and who we aspire to be.”

The Mickelson family believed in theaters and supported them. Mickelson explained the Guthrie Theater in Minneapolis was the result of widespread community effort. It the early years the Guthrie faced questions of its necessity and how to support it.

“Today we can’t imagine Minnesota without it,” Mickelson said. “[The Guthrie] is a pillar that creates Minnesota’s great climate.”

He encouraged New Ulm to view SST the same way and raise the quality of life for the community.

Andy Biebl and Mary Ellen Domeier provided an update on the theater portion of the SST building. The former middle school is two legal entities: the SST and Emerson Union Apartments.

Biebl said the separation of utilities was the first obstacle and was a setback for the project. The building is made of three different structures created over decades, creating overlapping utilities.

Domeier said the separation is more complicated than cutting off a pipe and putting a coupling on the end.

In the next few months, SST will make improvements to the parking lot, tuckpoint the building, perform roof maintenance and provide new theater seating.

Biebl said the seating is a challenge because it needs to meet historical guidelines since the building is certified as a historical structure.

In the second phase, the theater would work on ADA compliance, elevator installation, concessions and restoration of the theater murals.

Biebl said the theater space has been well used in the last year. In the last 12 months, SST held six productions, 11 concerts, seven workshops, and two rentals. The theater has taken in over $65,000 in tickets sales.

The first phase of SST’s Capital Campaign has a goal of $500,000. After two years, the campaign raised $335,000 with $165,000 to raise.

Community Housing Development Corporation (CHDC) Vice President Heidi Rathmann and President Elizabeth Flannery gave an update on the Emerson Union Apartments.

CHDC is a non-profit organization that helps create affordable housing projects. The organization is currently working to convert the former middle school into apartment units.

Rathmann said they are 40 percent complete with construction. Since it is a historic building, CHDC is attempting to preserve the historic elements. Nearly all apartment units are a whole classroom. The built-in classroom elements, like cupboards and chalkboards, were kept if possible. Corridor ceilings were raised and transoms were opened.

Rathmann said the apartments are targeting households with incomes between $28,000 and $40,000 and will offer one-bedroom, two-bedroom, and three-bedroom units.

CHDC is planning to schedule a hard hat tour of the building at the end of the summer.

The project requires the use of state historic tax credits, but the state Legislature recently altered the credits from a one-year credit to a five-year credit. This makes these types of credits less valuable. The change is retroactive and impacts the Emerson Union Apartments.

“We do have a lot of work to do between now and our next session to potentially get his corrected,” Rathmann said.

Domeier thanked everyone for supporting and donating to these State Street Theater projects. She said the apartment side of the project is not ready for touring, but tours of the theater side can be arranged for those interested.