NEW ULM — Lindsay Henn, Char Kalk and Michelle Markgraf officially joined the New Ulm Economic Development Authority on Tuesday.

They were appointed to the EDA board last month and took the oath of office at Tuesday’s meeting. Henn, Kalk and Markgraf were appointed to fill open positions on the board.

This was one of largest number of additions to the EDA board, which usually doesn’t see such high turnover.

The board also selected new officers for the year. Andrea Boettger was elected board chair with Kalk serving as vice-chair and Markgraf as secretary-treasurer.

The board approved allocations for loan and grant programs, including the Homebuyers Assistance loan, Get It Ready Single Family Rehab loan and the Small Business Incentive grant.

The Homebuyer Assistance Loan program provides loans to first-time home buyers. Since the program started in 2019, the EDA has allocated $50,000 to the program annually. EDA Director Heather Bregel said in 2022 all money from the program was given out in loans. One loan was repaid in full due to the sale of the home. This was a return of $5,750 and it allowed the EDA to give out additional loans last year. Eight loans were funded in 2022 for $55,750. Bregel said this loan is capped at $10,000 per applicant, but the average loan amount $7,000.

The board agreed to allocate $50,000 for 2023.

The Get It Ready Single Family Rehab is a loan that helps homeowners fix up single-family homes. Typically this loan is used by seniors making repairs to their homes in order to sell them. It is also used by younger families buying a starter home and making necessary repairs.

If the loan applicant is 65 years or older, the loan does not need to be repaid until the home is sold. The cap on the loan is $40,000.

Since the Get It Ready program began in 2021, the EDA has allocated $120,000. Only two loans were funded in 2022 for a total of $19,000. The board voted to allocate $19,000 to the program, bringing it back up to $120,000 in 2023.

The Small Business Incentive Grant program received a fund allocation of $50,000. Since the program began in 2019, the EDA has allocated at least $50,000 to the program. However, in 2022 the city saw an increase in demand for this grant and the EDA ultimately allocated $100,000. Bregel said the EDA was able to allocate extra money from damages awarded in a lawsuit.

The program is designed to support new small businesses in New Ulm by covering startup expenses. To be eligible, a small business must be open for at least three months and have at least $10,000.

Due to the popularity of the grant, the board discussed the possibility of increasing the allocation. Board member Les Schultz said the program does help grow new businesses in New Ulm and fill up empty storefronts. He said of the 20 businesses awarded the grant, only two had closed, which he believed was a strong success rate. Schultz suggested allocating $75,000.

Markgraf suggested starting with $50,000 with the understanding the board could allocate more later in the year. She believed with three new EDA board members it was best to ease into the program. She made the motion to allocate $50,000 and it was approved by the board.

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Facility designs for the new childcare building at 1314 Westridge Road were approved and authorized to solicit construction bids.

The EDA purchased the building at 1314 Westridge for use as a childcare facility. New Ulm has a daycare shortage. By opening the facility the EDA hopes to create more childcare openings. The facility would operate under the pod model of daycare, allowing multiple daycare providers to operate out of the building.

The staff has been working with Oleson & Hobbie Architects on the design phase. At this time the remodel is estimated to cost just under $500,000 but is expected to rise with inflation.

The EDA is seeking donations to cover some of the costs. At this time, $30,000 was given in the form of grants and another $10,000 was given as community donations.

Bregel said they anticipated more local businesses donating to the childcare building. Several local businesses indicated that the lack of childcare in New Ulm is an obstacle in hiring new people, but only one business has donated to the program.

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City Manager Chris Dalton informed the board a developer had expressed interest in buying EDA property located at 318, 320 and 326 N. Broadway. This property is adjacent to Broadway Haus and currently consists of an open lot, rental house and parking lot. The EDA previously considered selling the lots, but negotiations for the land fell through.

Dalton was unable to reveal the developer but said the developer was willing to make a proposal at the next board meeting. The board was willing to hear the proposal.

If the land were to be developed, the rental home would need to be moved or demolished. The house is currently being rented. The parking lot is rented out in the summer to three different food trucks.