NEW ULM — The New Ulm Economic Development Authority (EDA) will consider the sale of Milford Heights First Addition lots to Erickson Construction and Developing, LLC, for residential development.

The EDA was contacted by a representative of Erickson Construction and Developing, LLC, offering to purchase the remaining eight lots in the Milford Heights First Addition for the development of single-family and twin homes. The developer is offering the EDA $30,000 for the eight lots and requested a closing date of July 2, 2020. The developer intends to build two homes per year beginning in fall 2020.

A public hearing on the sale was held on April 14, 2020. The item was tabled to allow time for the city attorney to prepare a resolution to ensure compliance with state law.

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The EDA will consider a $15,646 loan to the TIF H5 Milford Heights Phase 1 Fund.

TIF stands for tax increment financing.

The EDA has had the affordable housing project now for years and to aid this project the city has sold bonds, started a construction fund and a TIF fund. However, few funds have been received in either the form of special assessments or TIF money, so the TIF fund is short.

A transfer or loan is required to be made to the TIF fund to prevent the fund from going negative.

In 2017 the EDA forgave previous loans made in 2007-2017 totaling $526,000. It is anticipated that future transfers ranging from $15,000 to $20,000 will be needed for years 2020-2022 until the original assessments are made in full.

The amounts will vary depending on interest and TIF revenues. TIF revenue has slowly been increasing since 2011 and is up to approximately $33,000 for 2020. The district will continue to collect TIF revenues through 2034 when the district is decertified.

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The EDA will consider designating $4,000 in EDA funding to provide an accredited training for child care providers within New Ulm.

The EDA has discussed the challenges of the child care sector in the economy and community. The EDA will use these funds to collaborate with other interested parties to provide the training. The training would be at no cost for New Ulm providers but open to the region.