The tax abatements were for the new Garden Terrace project at 1011 N. Garden and the SLD properties project at 318-326 N. Broadway.

For the Garden Terrace abatement, this was the third time the council was reviewing the agreement. The initial abatement agreement was approved Nov. 18 and an amended agreement was approved by the council in December. Brown County Commissioners also agreed to participate in the tax abatement during their Dec. 16 meeting.

Community Development Director David Schnobrich said that in reviewing project documents, staff realized the city had not published a notice of public hearing on the tax abatement.

“As a result, the city’s approval of the program was not valid,” Schnobrich said.

The New Ulm City Council approved a tax abatement for a new commercial property construction project at 318-326 N. Broadway. The tax abatement was requested to help remediate and remove soil from the site before construction begins.

The city is required to go through the approval process again which includes a public hearing.

The tax abatements remain the same as previously approved with the exception of changes in dates

and the need to nullify the existing agreement.

The Garden Terrace abatement was requested by Rebound Real Estate to help cover the cost of constructing a new Garden Terrace apartment building. This new building will be a three-story apartment for seniors 55 and older with 39 units.

Rebound plans to lease the building to Oak Hills Living Center, who will operate and maintain the property with the option to purchase the building. The total proposed abatement amount for the City will be $585,176 for a period of 10 years.

A photo originally published in The Journal shows the old red brick building known as “Wiltscheck Saloon” at the corner of Fourth N. and Broadway being demolished to make space for a Clark Service Station. On Tuesday, the New Ulm City Council approved a tax abatement for a building project at this location. The abatement will be used to remediate the soil on this site which been home to several structures in New Ulm’s history. (Original photo taken by Ronnie Grieser)

No comments were received during the public hearing. The council quickly approved the abatement. Councilor Tom Schmitz made the motion to approve, saying, “I think these are some additional wonderful housing units for our city and as Ward 3 councilor I am very proud to offer this resolution,” with a second from Councilor David Christian. The resolution was unanimously approved.

The SLD properties abatement was for a multi-tenant commercial property at 318-326 N. Broadway. A rental home was previously located at this location, but the city had the home moved after the lots were sold.

City Planner John Knisley said the building SLD Properties proposes to build on this site is a one-story with three storefronts. A parking lot with 32 spaces will be located between the building and the alley. A drive through lane will be located on the north, west and south sides of the building to allow vehicles to access a business on the south side.

The maximum tax abatement provided by the project is $256,958. The term of abatement is 13 yers with an annual abatement amount of $19,766.

SLD requested a tax abatement to help pay for the removal and remediation of soil and other material on the site. An inspection of the soil by Braun Intertec recommended the complete removal and replacement of fill material. The existing fill was determined to be unsuitable for supporting the building and pavement.

Knisley said a review of former maps showed several structures were located on these lots over the years. Staff found a photo originally published in The Journal showing the demolition of a building known as “Wiltscheck Saloon,” which was two-story brick building located at this corner. The photograph’s caption indicates a Clark service station was built on the site later.

Knisley said it was likely some of the debris from Wiltscheck Saloon was buried on the lot.

No comments were received during the public hearing.

Councilor Christian made a motion to approve the abatement with a second from Councilor Eric Warmka. It was unanimously approved.