New Ulm has agreed to submit an application for a Redevelopment Grant from DEED to cover demolition costs at the former Marktplatz Mall. The developers of the property, EBMD LLC, plan to demolish the top of the building and rebuild it as an apartment building.

NEW ULM – The New Ulm City Council agreed to submit a grant application to the Department of Employment and Economic Development (DEED) on behalf of the redevelopment of the Marktplatz Mall site.

Marktplatz Mall has been closed as a retail space since 2018 after the Herberger’s store was liquidated. The building sat empty for nearly eight years. In April 2020, EBMD purchased two of the three mall parcels. In Sept. 2023, the city of New Ulm approved the sale of the final center section of Marktplatz mall to EBMD.

EBMD expressed interest in redeveloping the mall for apartments. This would include the demolition of the top level of the building. As part of the project’s financing, EBMD is requested New Ulm submit an application to DEED for a Redevelopment Grant in an amount up to $1,000,000.

City Manager Chris Dalton said this is a matching grant. The developer would need to pay 50% of the costs. The project could come back before the council for tax abatement assistance.

Dalton said this grant, if awarded, could only be used for the demolition expense. The reconstruction costs for the property would need to come from other sources.

The project would be required to construct an apartment building with a minimum of 30 units.

Councilor Eric Warmka made the motion to approve the grant application with a second from Councilor David Christian. It was unanimously approved by the council.