Earlier this year, the New Ulm Economic Development Authority (EDA) sold three of its lots at 318, 320, and 326 N. Broadway. The EDA previously rented out a house at 320 N. Broadway and rented out the corner lot at 326 N Broadway for food trucks and food stands.

The EDA initially purchased the three lots with the intention of building a second Broadway Haus, but in 1998 the U.S. Government passed the Faircloth Amendment, which prohibits public housing authorities from using federal funds to build new public housing units if it increases the public housing authority’s total number of units. This effectively capped the EDA’s public housing at 50 units. Unless the EDA sells it current public housing units, it cannot build more. For this reason, the lots remained undeveloped for nearly 25 years.

Last year, the EDA chose to sell the lots to a new developer. To facilitate the sale, the rental house had to be removed from the property. The city decided that instead of demolishing the rental house at 320 N. Broadway, it would be sold to the renters and moved to a new location. On Sept. 30, the house at 320 N. Broadway was moved seven blocks to an empty residential lot at 1007 N. Minnesota Street.

Initially, a developer planned to create a three-story, mixed-use building that featured commercial properties on the main floor with residential properties above. In July, the EDA approved an update to the development plan in favor of a purely commercial building.

Cleo Bohne stands at the construction site across at 4th North and Broadway, across the street from her home. Construction crews recently began work on a new commercial retail space at the site. Bohne said was excited to see what comes next at this site, but said hopes the four trees behind her are not removed. So far, construction crews have only removed a few branches from the trees. Bohne said the trees provide extra shade for the home for many years and would hate to see them go.

EDA Director Heather Bregel said the main reason for the change from mix-use to commercial was due to parking requirements. The new owners and developers of the property have not announced the type of commercial businesses that will operate from the new building. Bregel said there is space for three commercial business units and a drive-thru space.

Bregel could not say for certain what type of commercial businesses would operate for the lots, but she was excited to see something new at the location.

“I think it will be an improvement to have the lots developed,” Bregel said.

Cleo Bohne, who lives across the street from the construction site, was excited to see what came next. Her only concern was the four trees located on the edge of the property. So far, construction crews have only removed a few branches from the trees. Bohne said the trees provide extra shade for the home for many years and would hate to see them go.