NEW ULM – The sale of Garden Terrace apartments will move forward without a review New Ulm’s Planning Commission.

Last week, the New Ulm Economic Development Authority (EDA) sold the ownership rights of Garden Terrace and a vacant lot near the property to Rebound Partners for $7.3 million.

Typically, when the city or a city board like the EDA sells publicly owned property there is a requirement for the Planning Commission to review and consider the sale for compliance with the comprehensive plan. However, in this situation, Garden Terrance apartments will remain apartments with the sale.

City Attorney Robert Scott said that since the existing use for the property will not change the city is allowed to waive the planning commission review.

Before approving the waiver, Councilor Larry Mack asked if the EDA received any public comments about the sale of the Garden Terrace properties.

Council President and EDA board member Andrea Boettger said they received a few questions, but most clarifying questions. She said the was one individual who expressed full support for the sale. They did not believe the EDA should not be in the business of managing land because it stifles the ability for economic growth.

“We at the EDA agreed with those sentiments,” Boettger said.

Boettger said another positive aspect of the sale is Rebound Partners’ plans to enhance the property with new amenities. There was also the potential to construct a third apartment building.

“This is a big move for the city of New Ulm to get out of housing,” Mayor Kathleen Backer said. “It has been proven in reports that we have depressed the rent rates and if we get out of that business, I believe it will be marching in the direction it should be.”

Councilor and EDA member Les Schultz said Oak Hills Living Center was interested in Garden Terrace but did not have the financial ability to purchase it at this time. Schultz said the EDA wrote into the purchase agreement that if Rebound Partners decides to sell the building, Oak Hills would have the rights of first refusal.

The council unanimously approved waiving the planning commission review. The sale of Garden Terrace will produce income for the EDA that can be invested in other programs, such as first-time home buyer programs or small business grants.