EDA tables decision on Garden Terrace sale
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NEW ULM -- After meeting for over an hour in closed session Tuesday, the New Ulm Economic Development Authority (EDA) chose to table discussions regarding the sale or purchase of Garden Terrace Apartments.
In February, it was announced the EDA received three purchase offers for Garden Terrance Apartments. One offer was from a nonprofit and the other two were private individuals. The EDA recently appraised the two apartments at around $7.5 million.
During the closed session, the board heard at least one presentation from Oak Hill Living Center. Several members of the Oak Hills board were allowed to attend part of the closed-session meeting. It is unknown what offer or offers were presented to the EDA board.
After coming out of the closed session, the board was reluctant to make an immediate decision.
Board member Les Schultz said he was not comfortable making a motion. He said he needed to think about the information presented. He favored a motion to table.
Mayor Kathleen Backer asked if the board wanted to make a motion to continue discussions with Oak Hills and considered submitting a Request for Proposals (RFP).
Schultz said he was not comfortable submitting an RFP at this time.
Board member Char Kalk made a motion to table discussion on the sale and purchase of the Garden Terrance Apartments, with a second from Schultz. The board approved tabling the meeting. Garden Street Apartments are currently owned by the EDA. As owners, they receive rent from the buildings used to fund programs in the community.
Selling the property would provide the EDA with several million in cash for other projects. It would place the property on the tax rolls and generate funds for the city. Even if a nonprofit purchased the building it would remain on the tax rolls.