Cha-ching: City makes $164 grand on land deal

Staff photo by Clay Schuldt A real estate development company paid New Ulm more than $164,000 for this Airport Industrial Park property last September but changed its plans and gave the land back to the city at no cost.

NEW ULM– A piece of property in the Airport Industrial Park sold by the city last year, was sold back to the city at no cost.

The 6.85 acres of property at 2215 Jacobs Street was originally sold by the city to Steam’s Edge Properties on Sept. 24, 2021. Streams Edge Properties is a holding company for property and land purchases made by Dayton Freight Lines.

Steam’s Edge paid the city $164,057 for the property. A condition of the sale required Stream’s Edge to enter a development agreement to construct office and warehouse space.

In March, the city was notified Steams Edge no longer had a need for the property. Stream’s Edge purchased an existing trucking property in Courtland the same month.

The city had already authorized the installation of utilities and construction of Somsen and Jacobs Street. The development agreement with Stream’s Edge set a maximum assessment for these improvements at $230,000.

Rather than pay assessments on a property it no longer needed, the company decided to transfer the property back to New Ulm at no cost.

The City Council agreed to the property transfer with the understanding future assessments cost would be assumed by New Ulm until the property was sold.

Community Development Director David Schnobrich said it is the city’s attention to remarket the lot to another developer.

Council President Andrea Boettger was confident the city could sell the property again since it sold once and was in an area being developed.

City Manager Chris Dalton agreed the lot would be in a more desirable area once street infrastructure was added.


Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper?

Starting at $4.38/week.

Subscribe Today