The EDA is requesting proposal for development of three lots on the 300 Block of North Broadway. The three lots are at 318, 320 and 326 N. Broadway. The lot at 318 is currently empty. A rental house is at 320. A parking lot is on the 326.

NEW ULM — The New Ulm Economic Development Authority (EDA) is seeking proposals for the development of three lots on the 300 block of N. Broadway.

The three lots are 318, 320, and 326 N. Broadway and adjacent to Broadway Haus. All three lots are owned by the EDA.

Recently, two separate developers have approached the New Ulm Economic Development Authority (EDA) on purchasing three lots on North Boardway. During Tuesday’s EDA board meeting, City Manager Chris Dalton said the EDA needed to decide if they wanted to sell the lots, and if so, what method should the lots be sold.

If the board chooses to sell, they could solicit Request for Proposals (RFP); set asking price and solicit sealed bids or list the property with a broker.

Dalton recommended one of the first two options. The downside to listing with a broker is the broker would take a cut of the commission.

The first two options would be preferable. The benefit of the RFP is it would allow the board to have a say in how the property was developed as part of the sale.

The estimated value for all three lots is $153,000.

Board member Les Schultz said his only hesitation was he did not want to sell the lots only for the new owner to do nothing with the space. For this reason, he preferred the RFP option.

“I would like to know what the proposals will be for those lots,” Schultz said.

There was also a question about the house at 320 N. Broadway. The EDA has rented out the house for years. The current renters have been in the house for around five years. Schultz said they were good renters and wanted to make sure they were given enough to move if they chose to sell.

At this time, the two developers have not publically divulged their plans for the property, but Dalton indicated the two developers had similar projects in mind.

Mayor Kathleen Backer asked if there were contingency plans in case the buyer never develops the property.

Dalton said this could be negotiated in the development agreement. The developer would have a set amount of time to start the project and complete the project. Typically a year is given to start the project and another year to complete it.

Board member Michelle Markgraf favored the RFP option. She did not believe it needed to be a quick sale.

“We have time on our site and that offers us more input,” Markgraf said.

Schultz made a motion to solicit RFPs for project development on the three lots and was approved by the board.