The New Ulm City Council approved the sale of 6.85 acres of land directly north of Walmart to Land Haven Development. Land Haven Development is planning to subdivide the land into 29 lots for the creation of storage facilities with the option for including dwelling spaces. Photo by Clay Schuldt

NEW ULM – A new housing association could visit New Ulm’s airport industrial park.

Tuesday, the New Ulm City Council passed a resolution authorizing the sale of 6.85 acres of property to Land Haven Development. The property is located directly north of Walmart at 2211 Jacobs Street and is zoned as industrial.

Land Haven intends to subdivide the property into smaller lots for the construction of storage facilities, with the option for creating enclosed dwelling units. It is estimated that 29 lots could be created on this land.

The council previously held a public hearing on the sale of the land during the March 4 council meeting. No comments were received from the public.

The city will sell the property for $1 and would include a 50% reduction on the outstanding assessment for the lot. Taking into account the land value and the assessment reduction, the city is subsidizing this business by $217,000.

Community Development Director David Schnobrich said the creation and retention of jobs is not a goal of the project. However, there are a minimum of two goals; the expenditure of $345,000 for roadway and utility improvements and the approval of a plat with 29 lots.

Since this property is located in an industrial zone, Land Haven will need to secure a Planned Unit Development (PUD) land use designation before the project can move forward.

Schnobrich said dwellings are not permitted in an industrial district, which is why a PUD zoning designation is required.

City Councilor David Christian asked if the industrial zoning regulation would still apply once the PUD was in place.

Schnobrich confirmed the PUD would supersede the industrial zoning regulations. However, the PUD will still require approval from the city council and an additional development agreement would apply. These additional documents would clarify how the property is developed and what other regulations would be in place.

Councilor Eric Warmka asked how the city would address blight in this area if people were living and working in this development. He was concerned that with a potential 29 sheds being constructed in a seven-acre area, there could be unused vehicles stacking up on the property.

Schnobrich said this was one of the issues that would need to be addressed in the association’s development agreement.

City Councilor Tom Schmitz asked if all 29 buildings would have a uniform look.

Land Haven President Tony Gulden said the long-term goal is to create an association for the development. All the buildings would have matching colors and similar designs. Land Haven might not construct all 29 buildings, but each unit would be required to be built to the association’s specifications.

“It is going to be a professional-looking development,” Gulden said. He confirmed the association guidelines would restrict owners from parking unlicensed vehicles or other blight on the lots.

“We will have very defined lines on what they can and cannot do,” he said.

Councilor Larry Mack asked if Land Haven would allow small businesses to operate out of the development.

Gulden said they would allow small businesses to use the buildings. The commercial uses would also need to conform to the association guidelines.

Mayor Kathleen Backer said she liked that the development would be formed into an association.

“Those guidelines are seriously taken by those who rent, lease, or own within the association,” Backer said.

Warmka made the motion to approve the purchase agreement with Land Haven. He said, “I think it is a good use of seven acres of land.”

The motion was seconded by Mack and as unanimously approved by the council.