Staff photos by Gage Cureton Excavators and bulldozers work on the foundation of Alliance Bank’s new building Wednesday.

NEW ULM — Alliance Bank is constructing a new building but is hoping to retain its old address.

The bank requested a variance from the city to allow the new bank building under construction to use the bank’s current address number of 322 N. Minnesota Street.

Alliance Bank has operated at the address of 322 N. Minnesota Street for over 50 years. This summer the bank began construction on a new building to consolidate employees at a single location. The new building will be located south of the current 322 N. Minnesota Street on the same block.

Without the variance, the new building’s address would be 306 N. Minnesota Street. Alliance Bank Regional President Bob Reuter said a change of address would require the bank to file numerous applications with various federal and state agencies as well as notify regulators and it would affect advertising and brochures related to the bank. Around 1,500 loans would require notification of the address change.

“It creates quite an extensive requirement from us,” Reuter said.

He said the situation was unique in that Alliance owned the half block and did not require other existing property owners to change their addresses.

Daniel Braam made the variance request on behalf of the bank and said it creates a hardship for the bank in terms of notification.

“This particular facility is more than a retail banking location,” Braam said. Alliance plans to conduct operations for seven regional banks out of this New Ulm location.

Community Development Director David Schnobrich said staff could find no evidence of a variance being granted for an address in the last 42 years.

For a multi-lot project, the location of the front door determines the building’s street address. Staff had concerns about recommending the request because it was inconsistent with the plans and the approval would set a precedent.

Also, granting this variance would require the city to assign a new address to the old bank building property. This new address would also be inconsistent with the city’s address plan.

Alliance Bank has not settled on a plan for the current bank building once employees move into the new building.

Commissioner Dena Piotter said the bank owns the half-block now, but nothing is preventing the bank from selling the old building once the move has been completed.

A campus address was considered as an alternative. Martin Luther College, the New Ulm Airport and New Ulm Public School all operate under a single address despite encompassing a large land area and multiple buildings. However, Schnobrich said there is no designated process for establishing a campus in the city code. He said there is no basis to empower the commission to recommend a campus establishment, but staff could be directed to prepare an ordinance change.

Commissioner Mike Furth said this was a unique situation and was comfortable with allowing the new building being called 322 N. Minnesota as long as the properties north of the location were higher. This would prevent any confusion in the numbering system if the old building is sold.

“I know its new and different, but I am comfortable rolling with some changes, I don’t believe it is going to throw our whole address system out of whack,” Furth said.

He ultimately made the motion to recommend approval of the address variance, subject to staff preparing an address for the remaining parcels of property to reduce the hardship on Alliance Bank related to changing the address.

The recommendation was unanimously recommended by the commissioners and will go before the City Council on Aug. 6.