“It is a long time coming for this project and we’re very excited to be awarded this funding,” Stadheim said.

In December 2025, the city engineer department submitted a grant application for the Minnesota Department of Transportation (MnDOT) for the Center Street safety project, which is being planned jointly with Brown County. Center Street is part of the County Highway 13 corridor.

The improvements to Center Street would include roundabouts at Garden Street and Payne Street, a pedestrian underpass near Garden Street, Rectangular Rapid Flashing Beacons (RRFB) at the intersection surface crossings, underground utilities, stormwater facilities and other road restorations and improvements.

In April, Standheim received a letter confirming the city would be awarded the grant. The city is scheduled to receive $4.32 million in federal funding for the $6.7 million project. The federal funding would come from multiple sources. In fiscal years 2029 and 2030, the city will receive $520,000 from Carbon Reduction Funding. In fiscal year 2030, the city will receive $1 million from Transportation Alternative funding and $2.288 million from Surface Transportation Program-Small Urban funding. The remaining $2.4 million would be divided between New Ulm and Brown County state aid funding, as well as local bonding.

A concept design for the Center Street safety improvements which includes roundabouts at Garden and Payne Street as well as a pedestrian underpass. The full cost of the project is $6.7 million, but the city will receive $4.32 million in federal funding. Submitted photo

The Center Street project is scheduled to start in 2030. Before construction, the city will need to develop the environmental and right-of-way documentation needed for this federally funded project.

City staff recommended approving a professional service contract with Bolton & Menk, Inc for the Center Street Corridor Safety Improvement project.

Bolton & Menk has previously completed an intersection control evaluation study at the intersection of Center Street and Garden Street in 2023. As part of the 2023 study, concept designs for a roundabout at Center and Garden were created.

Staff believed Bolton & Menk’s familiarity with the project and past work made this the best option for professional service work.

The professional contract services is $768,513.

Councilor Tom Schmitz made the motion to approve the professional service contract with Bolton & Menk, with a second from Councilor Eric Warmka. It was unanimously approved.