NEW ULM — The New Ulm Planning Commission recommends an amendment to the city code to allow residential uses in B-2 (Service Business District) zoned locations in or adjoining the downtown area.

The commission reviewed and discussed the amendment in a public hearing.

The amendment affects four half-block and two partial half-block areas zoned B-2. Most of these blocks are located on Broadway from 2nd South to 4th North, but also include the partial block containing the New Ulm Post Office.

The purpose of the B-2 district is to provide a district with a wide range of goods and services. It is to be located in separate areas adjacent to other retail business districts or close to a major street.

According to a staff report, these B-2 districts already have nine dwelling units. Four are single-family homes, and five are apartments. The units were constructed before current zoning ordinances in1968.

Staff researched commercial zoning districts in 11 other Greater Minnesota cities. Nine of the cities had similar zoning districts to New Ulm, and seven of these cities allow apartment units.

The city has received a request to locate an apartment unit on a property located on Broadway across the street from City Hall.

Owner Tim Rieke said he would like the city to consider allowing apartments in the B-2 district because the property is unlikely to be used for office space. Upgrading it is cost-prohibitive and the parking is limited. He felt the property would serve residential uses better than business uses.

Rieke wants to leave the Broadway front of the building as business and place apartments on the side section.

Commissioner James Hogen favored moving this amendment forward to the city council. He said if the council wanted to delay approval for further public input, they had that option.

The commission agreed the public would have the opportunity to provide the city with additional input regarding the amendment before finale approval. They unanimously recommended approval of the amendment.

Community Development Director David Schnobrich said the ordinance approval process requires two readings, which requires two city council meetings.

“There is ample time for the public to comment on the ordinance,” he said.

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A variance was approved to allow a building addition to be located 5 feet, 2 inches into the side property line. The property is owned by Dale Bushard and is located at 101 S. Broadway. Bushard is constructing a 34 foot by 62 foot addition to an existing building currently used as an office. This building is 7 feet, 2 inches from the side property line. This addition will move it 2 feet closer to the property line. The Broadway side property line requires a 10-foot setback.

Staff recommended the variance because the applicant did not create the hardship. The “L” shape of the lot is unusual and the setbacks reduce the buildable area on the lot. The adjoining property owner to the south was granted a similar variance in 1976. The applicant will maintain the required 10-foot setback from the north property line behind 519 S. 1st St.

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A conditional use permit (CUP) was granted to allow an existing building in a B-2 (Service Business) zoning district to be used for storage purposes. The building is located at 1414 Westridge Rd. Applicant Brett Weelborg requested it on behalf of Weelborg Enterprises. The site’s current purpose is for the outdoor display of automobiles. The building on the site is single-story and was previously occupied by Hunter’s Den.

Staff recommended approval. The city council previously approved a CUP to locate a storage facility at this same location, and storage buildings are generally less intense uses than most B-2 land uses.