DEED application for downtown hotel project
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NEW ULM - A Minnesota Department of Employment and Economic Development (DEED) grant application was submitted by the City of New Ulm for the proposed redevelopment of 217-227 N. Minnesota Street into a new hotel.
City Manager Chris Dalton said property owner Paul Neyers approached the city regarding the development of the property into a hotel that would include demolition, construction and rehabilitation of the current building.
As part of the project financing, Neyers requested the city submit an application to DEED for a redevelopment grant for $464,508. The grant would fund up to 50% of the eligible redevelopment costs including demolition, abatement of lead and asbestos and public infrastructure improvements.
Dalton said if the DEED grant is approved, the applicant would need to match 50% of the redevelopment costs, which would likely be covered through tax abatement.
Council David Christian commented that Neyers has already met with the city staff and city planners and is aware of the path he needs to take.
Christian made the motion to approved approve the application with a second from council Eric Warmka. It was unanimously approved by the council.
Dalton said this is the first step on getting funding for the grant. The deadline for the application is Aug. 1. Dalton said the city should know within a few days after the deadline whether the application was approved.