The Franklin building at 126 N. Minnesota will take over a revolving loan originally intended form the former Lamplighter building at 214 N. Minnesota Street.

NEW ULM – The New Ulm City Council approved switching over a revolving loan for $149,999 from the former Lamplighter building to the former Franklin building Tuesday.

Last September, Rebound Partners applied and received a revolving loan from the city to make renovations to the former Lamplighter building at 214 N. Minnesota Street. The Lamplighter restaurant has been closed since September 2022 after a fire destroyed much of the interior. Rebound Partners had initially planned to purchase the Lamplighter and renovate the property into a cafe and winery.

City Manager Chris Dalton said the Lamplighter project failed to move forward and the loan application was withdrawn.

Rebound Partners has since acquired the former Franklin building at 126 N. Minnesota Street through an affiliate, Franklin New Ulm LLC. The Franklin building event space has been vacant since July 2024 and the rooftop restaurant on the property was closed in January.

City Manager Chris Dalton said the new plan is to renovate the former Franklin building using the same revolving loan they applied for last year. Dalton confirmed this new project meets all the necessary criteria to apply for the loan.

Franklin New Ulm LLC’s plan for the property is to open three venue spaces in the building. The main floor would be a venue for large-scale gatherings; the second-floor mezzanine would have casual dining and the rooftop space would have small private functions.

The total project cost is $915,000. The proposed terms of the city would be $149,999 at 1% interest over a 10-year term.

“I would love to see the Lamplighter get revived, but I also want to see this business come back to life,” Councilor Eric Warmka said. He made the motion to approve the revolving loan with a second from Councilor Tom Schmitz. It was unanimously approved by the council.

Councilor Larry Mack asked if there was a timeline for the completion of the Franklin project.

Dalton expected the project to be completed within the next year as most of the renovations were to the interior and could be completed during the winter.