The council approved PUD in the face of strong opposition from neighbors in the Highland Avenue community. Since the project was announced, the city has received several calls against the development due to concerns with changes to the neighbor’s zoning and increased traffic. Ultimately the council supported the project to increase available residential property in the city.

The Kuepers Highland Apartments PUD would allow the creation of four, three-story apartment buildings with eight detached garages along with a sports court, children’s playground, dog park, parking lots, stormwater ponds and the extension of 10th N. Street from N. Highland Avenue to west. The total property area is 10.2 acres.

The first phase of the project would include the construction of two buildings with 38 apartments each. The second phase would include two 36-unit apartments further west on the property.

A formal public hearing for this project was held during the May 29 New Ulm Planning Commission meeting. During that meeting, City Planner John Knisley said city staff received four letters, three emails, and multiple phone calls to staff, the city council and the mayor in opposition to the project.

A Planned United Development (PUD) was approved by the New Ulm City Council Tuesday that would allow for the creation of 148 apartment unit project at 901 Highland Avenue. Photo by Clay Schuldt

Knisley addressed some of the concerns brought up by residents. He said there were certain re-occurring themes; including traffic, safety, the scale of the project and the city following legal procedure.

Knisley confirmed the city followed state statutes and requirements for this project. A formal public hearing was held in front of the New Ulm Planning Commission and city council to amend the comprehensive plan to change the zoning for the property to high-density residential. A public hearing for this development was held during the May 29 Planning Commission meeting.

Knisley confirmed traffic along Highland Ave. is expected to increase with this development. The City Engineer is estimated up to 1,023 vehicle trips per day. Adding this to a previous traffic study done in 2021, it is estimated that 4,566 vehicles per day will use this segment of N. Highland. This is similar to the traffic seen on N. Garden Street between 5th N. Street and US Highway 14.

Another concern was this development could impact property values and tax equity. Knisley reminded the council the apartments were market rate, not low-income housing. The developer has not requested any city incentives.

Knisley said there were other requests to move the development further north between 12th N. and the Wallner Pit. He said this area was considered by the development, but it does not require adequate space and has topographical issues. In addition, the Wallner Pit could be expanded in the future for further mining.

City Councilor Eric Warmka reads a letter into the record from Thomas and Amanda McGannon during Tuesday City Council meeting. The letter urged the council require an updated third-party traffic and pedestrian safety study before advancing the Highland apartment project. The council would ultimately vote to approved the Planned Unit Development application for the project. Photo by Clay Schuldt

Knisley said the geography of the New Ulm limits where construction of new residential projects can occur. The north and west section of the city is often the best option for development.

Though the council chamber was filled with people hoping to speak on the Kuepers project, no public comments were allowed during the council discussion. The public hearing had been held on May 29.  Council President Andrea Boettger allowed City Councilor Eric Warmka to read a letter from Thomas and Amanda McGannon into the record who were unable to attend the meeting.

In the letter, the McGannons requested the city require an updated third-party traffic and pedestrian safety study before advancing the Highland apartment project. The McGannons stated the parcel was designated as low-density residential in New Ulm’s 2024 Comprehensive Plan. In Feb. 2025, it was re-designated as high-density.

“Changing a 20-year plan in less than a year–without proper due diligence–is hard to reconcile with the goals that plan was built to serve,” the letter read. “The scale and sensitivity of this site call for a higher standard of review than what has occurred so far. This is not a request for delay. It is a request for responsibility–one that we believe will result in a stronger outcome for all parties involved.”

In response to the letter, City Engineer Joe Stadheim said past practice for the city is to wait until after a new development is built to conduct a traffic study instead of using projections. This was done after the New Ulm High School was built, which is adjacent to the proposed Kuepers development. His recommendation was to follow past practices.

Courtesy of the city of New Ulm A map showing the location of the Kuepers Highland Apartments was shared during the city council meeting.

Stadheim said the cost of hiring a third-party consultant to conduct a traffic and safety study would be between $40,000 to $100,000.

Councilor Warmka asked what the timeline was for the construction of this development.

Knisley said the developer wants to begin the first phase in August or September. The second phase would start after the buildings in the first phase filled up. It would likely take a year to complete the first phase and three to four years for the second phase.

Based on this timeline, Warmka felt the city had time to make adjustments to traffic needs.

“Housing is the number one thing we need,” he said. Warmka believed staff and developers had done their research and found the best spot for the development.

Councilor Larry Mack asked how single-family development could be placed on this site versus the high-density option.

Knisley said a low density would allow 12 units per acre. The Kueper project is seeking 14.9 units per acre.

“I think we all agree our community needs additional housing,” Councilor Tom Schmitz said.

He said it is rare that a development will please everyone. “Our comp plan is a guidance document. It is also a living document that can and should be edited when appropriate for community development.”

Schmitz said traffic was a concern on Highland, but said he was not aware of a road that was better set up to handle increased traffic.

“[Highland] was designed for expansion to four lanes. I think that was a wise design,” he said.

Councilor David Christian said the property was zoned agricultural open space and could be used for what the city deemed fit.

“I agree with it, we need the housing,” Christian said. “I’ll support it.”

Mayor Kathleen Backer said New Ulm’s three priorities are housing, labor and day care. She believed this project would finally address housing. She acknowledged there were concerns, but she was encouraged by the fact Highland Avenue could be expanded to four lanes.

Boettger expressed strong support for the project and the work done by city staff.

“We’re not just as a city making a willy-nilly decision,” she said. “We do have a strong need for future development. It looks like a lot of the options have been explored. They have gone through the process, the planning commission, the public notification and the finding of facts and for that reason I will be in support of this project his evening.”

Councilor Mack made the motion to approve the PUD with a second from Warmka. It was unanimously approved.