New developer, Greenlaw Homes LLC, is taking over the workforce and affordable housing project at 1800 N. Highland Avenue. The former Dreamville housing project site will also be renamed “River Haven.”

NEW ULM — The former Dreamville housing project at 1800 North Highland will officially be taken over by Greenlaw Homes and the project will be renamed “River Haven.”

The New Ulm City Council passed a resolution authorizing the City Manager to execute a Memorandum of Understanding (MOU) with Greenlaw for the sale and conveyance of the 1800 N. Highland Avenue property.

This property had previously belonged to Hope Housing Foundation (HHF). In Sept. 2022, a housing project spearheaded by HHF was approved. The project was located at 1800 N. Highland Avenue. The project was originally slated to consist of six townhomes on the east side of the property, eight 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.

However, due to rising interest rates, the project stalled with no ground breaking in over a year. HHF was unable to pay the engineering firm they contracted with to do the work.

Last month, Greenlaw Homes agreed to take over the project with the same development plan.

As part of the agreement, Greenlaw Homes will pay the back taxes owned on the property. The city will retain ownership of the land until the successful closure of its construction loan. Upon closure of the construction loan, all utility assessments on the property will be paid by Greenlaw Homes and the property will be transferred to them.

The planned unit development designation, development agreement and plat for the property will be updated with the housing project’s new name: River Haven.

City Manager Dalton said the development agreement will include a three-year time frame to complete the project. Based on the current construction cycle, development is expected to start next year.

Councilor Larry Mack made the motion to approve the MOU with a second from Councilor David Christian.