This building, which is currently used for warehousing, was subject to a new development agreement approved by City Council Tuesday. The agreement also covers the Burger King building, which has been vacant since the restaurant closed down.

NEW ULM — A development agreement approved by City Council Tuesday helps set the stage for the future of former Target and Burger King buildings.

The agreement is between the City and BEEKI, LLC, which is owned by BoCo Real Estate and owns both buildings. The Target building has been used as warehousing since it was approved by City Council at their Feb 7, 2023 meeting. The Burger King building has not been in use since it shut down in September.

Community Development Director Dave Schnobrich said the agreement is an extension of a previous one, with additions for permitting future development and the standards it would have to meet.

Councilman Dave Christian asked about the parking situation if there were to be retail development there. Schnobrich said the parking demands of a warehouse and a Target are very different, and parking would be a factor in the decision to bring commercial interests in.

“The owner would have the opportunity to use part of the parking lot for commercial purposes, but that reduces the land uses that could go into the current Target building,” he said.

Councilman Larry Mack said when the warehouse agreement was first made the building was going to be part building and part potential retail development. He asked if that had changed. Schnobrich said at this point it is fluid.

“The conditional use permit authorized the use of the building for warehousing purposes, but the building could also be used for any permitted use in the B-3 zoning district,” he said. “There’s a whole host of other potential uses.”

The development agreement also calls for an expanded easement area and alignment for a bike/pedestrian trail in the area. Schnobrich said this is necessary due to the current conditions.

“Unfortunately, there’s been some erosion of that area,” he said. “It was necessary to move the trail further away from the ravine to be able to accommodate.”

Councilman Eric Warmka made the motion to approve the development agreement, with Christian seconding the motion.