NEW ULM — Brown County commissioners unanimously approved earmarking $500,000 of general funds for the demolition of George’s Ballroom Tuesday.

Action came on a motion by Commissioner Tony Berg, seconded by Scott Windschitl. The New Ulm City Council approved the request to earmark $500,000 for George’s Ballroom demolition Jan. 16.

The request was made for a developer to lock in a demolition price. No funds will be dispersed until a subsidy/development agreement is finalized and approved by the county board and city council.

Last July, the New Ulm City Council unanimously agreed to begin negotiations to reach a development agreement for the property with CBC Fisher Group.

“It will be a mixed use development with underground and above-ground parking,” said City Manager Chris Dalton.

“We’re looking at 54 units with a retail component. That’s subject to change during negotiation, but it is a pretty good development,” Dalton said.

He said a project timeline relies on sending mitigation strategy to the State for preserving and salvaging parts of the ballroom, including of the ballroom sign after demolition and having them approved.

“I’m pleased to see the project is moving forward. It’s long overdue,” New Ulm Mayor Kathleen Backer said last summer.

“In sitting in the steering committee and listening to proposals, it would be a significant addition to the City of New Ulm,” said Backer.

“The Minnesota Preservation Commission is part of this and requiring us to go through due diligence as far as salvaging what he can historically. (CBC Fisher Group) suggested incorporating ballroom artifacts into the design if they’re able to salvage them. It’s a win-win situation for us all the way around,” Backer added.