A new developer will be placing workforce and affordable housing on this spot, taking over where Dreamville was initially going to go. City Manager Chris Dalton said the plan will not drastically change from what was previously announced.

NEW ULM — The housing project formerly known as Dreamville has been reborn thanks to a new developer’s interest and the City Council at their meeting Tuesday.

The project, initially approved in September 2022, was spearheaded by Hope Housing Foundation at land at 1800 North Highland Avenue and 1425-1625 Maplewood Drive. However, due to rising interest rates, the plot laid vacant and ground has not been broken. City Manager Chris Dalton said this presented problems that eventually sunk HHF’s plan.

“They weren’t able to pay the engineering firm they had contracted with to do the work,” he said. “The engineering firm placed a lien on the property.”

If this lien totaling less than $45,000 had not been paid for, the land would have been sold at a Sheriff’s Auction on Jan. 19. The issue of paying for this lien and executing a settlement agreement with HHF needed to be approved by City Council.

Councilman Les Schultz asked Dalton if he was confident this new developer would be able to deliver on building the housing project. Dalton said he was because they are aware of the project’s scope and appearance, will benefit from a small dip in interest rates, and already have the capital necessary to fund the project from the get-go.

Councilman Eric Warmka said paying for the lien was the best way to move forward with this project.

“We’ve got another fish on the line,” he said. “We better try and avoid it being tied up with an auction.”

The project was originally slated to consist of 6 townhomes on the east side of the property, 8 twin homes fronting Maplewood Drive, and two four-story apartment buildings behind the twin homes with 48 units in each for a combined total of 118 living units. Of those units, 88 of them are classified as workforce housing.

Dalton said these plans will not change much under the new developer.

“They are aware of the planned unit development agreement that’s already there, and they’re willing to do the plan as is,” he said. “They’re ready to pay the back taxes on the property. Once we acquire the property, we’ll be able to move forward with the project as intended.”

What will change is the name, as the Dreamville title was tied to HHF when they were overseeing the project. A new name has not been chosen yet by the new developers.

Given the steady ground the development is now on, Dalton said he is excited to finally provide relief to New Ulm’s workforce.

“It feels good because this is going to be more workforce housing,” he said. “There’s a little bit more slightly above affordable housing but geared towards the workforce in New Ulm. Someone getting their first job as a line worker wouldn’t be able to afford a one-bedroom apartment in the city. It’s a good step forward for our workforce.”

When the project was first announced, there was pushback from local residents who were opposed to the housing development being built in their area. Dalton said he has not heard any complaints recently, but as the project makes progress the opposition could be voiced once again.

Councilman Larry Mack made the motion to approve a settlement agreement with HHF Dreamville and the usage of New Ulm’s affordable housing aid to redeem the property. Councilman Dave Christian provided the second. Dalton said there is not yet a timeline for when the project will be underway.