On Tuesday, the council approved a preliminary plat for Garden Terrace Second Addition that will allow a new Garden Terrace building to be constructed on a vacant lot near Garden Terrace 1 and 2.

This plat is for property located at 1001, 1011 and 1021 N. Garden Street and previously came before the New Ulm planning commission and was recommended for approval Aug. 28.

This new plat would established three lots on the property.

Two current Garden Terrace buildings would be located on Lot 1 and Lot 3. The new Garden Terrace building would be constructed on Lot 2, which is undeveloped and was previously named out lot 179. The entire platted area is 8.81 acres.

New Ulm Community Development Director discusses the preliminary plat for Garden Terrace Second Addition during Tuesday’s city council meeting. The presentation included maps of the property area and the new building to be constructed on the site.

The proposed project will be a 39-unit, three-story apartment building on the property, providing housing for independent seniors aged 55 and older.

Community Development Director David Schnobrich said since the planning commission recommended the approval, the number of units in the apartment was changed from 45 to 39. He said Rebound had decided to increase the number of two-bedroom units in the building.

Upon completion of the new building, Rebound plans to lease the building to Oak Hills Living Center which operates a senior living facility on an adjacent property.

Council President Andrea Boettger asked for clarification on the arrangement between Rebound and Oak Hills.

Rebound President Jay Scott said the plan is to lease the building and property to Oak Hills after it is completed. Oak Hills will have the right to purchase the property once they have enough funds to cover the cost.

“Our lease allows us to facilitate the financing and construction of the facility on [Oak Hills] behalf,” Scott said. “That sets it up to put them in a position to ultimately own the facility.”

Councilor David Christian asked about a utility easement that currently ran through the lot for the proposed new Garden Terrace building.

Schnobrich said the easement would need to be vacated by the city before construction.

Councilor Eric Warmka asked if a water retention pond would be needed for this project.

City Engineer Joe Stadheim confirmed a retention pond would be needed and is part of the proposal for the building site.

Councilor Warmka made the motion to approve the preliminary plat with a second from Councilor Tom Schmitz and was unanimously approved.

Later in the meeting, the council approved an amendment to the city’s comprehensive plan that would change the Garden Terrace property from medium density residential to high density residential. This was needed before the new Garden construction project begins.

City Planner John Knisley said in 2007 the property was designated as high density residential but was changed to medium density during the 2024 update. He said at the time it was thought a high density property could not be constructed on the property due to the soil. However, the development team believes the can make high density work on this site.

This comp plan amendment was unanimously approved by the council.

Mayor Kathleen Backer praised the developers for working with an area nursing home on this project.

“I am pleased to see that Oak Hills and Rebound are partners on this project,” Backer said. “It looks like in the future there will be a way for Oak Hills to be sustainable.”