New Ulm approves $926K water main project for Schell’s Brewery

Public hearing on Garden Street improvements

NEW ULM -- Tuesday the New Ulm City Council unanimously approved a $926,647.33 contract for a major underground water main project near Junior Pioneer Park and approved preliminary plans for a 2027 street reconstruction following input from local residents.

The council awarded the water main construction contract to GM Contracting, Inc., which submitted the lowest of two bids for the project. GM Contracting's bid came in $20,000 lower than the competing proposal.

City Engineer Joe Stadheim said that while the total bid came in higher than initial engineering estimates prepared by SEH, the higher price was directly tied to the technical difficulty of drilling through local bedrock.

“Generally, everything else was close when you compared their engineers’ estimate to the actual bid prices, except for the drilling,” Stadheim said. “So I think contractors looking at it saw the bedrock they’re drilling through and compensated for things going wrong. If the drill head gets stuck like that, they have to redo the whole thing.”

Council President Andrea Boettger asked staff why the initial engineer's estimate differed significantly from the actual bids. Stadheim said contractors factored in the risk of drill heads getting stuck in underground rock formations, noting that if a drill head gets stuck during directional boring, contractors are forced to restart the process.

Following the vote, Councilmember Larry Mack said the project involves underground utility infrastructure rather than park facility changes.

“This is a water main going to the brewery,” Mack said. “It's not about the park. It's about the water main. It’s a water main going to be bored to the brewery. We need redundancy if there are issues to bring in enough capacity for peak times.”

The new pipe will serve two main practical purposes: providing enough water capacity during high-demand operating hours at Schell’s Brewery and creating system redundancy. In municipal water systems, redundancy means installing a secondary pipeline that can step in if the main line breaks, leaks, or needs routine maintenance, ensuring the brewery’s operations remain uninterrupted.

Stadheim noted that directional boring was selected specifically to avoid surface disruption in Junior Pioneer Park.

Municipal State Aid Street improvement hearing

Earlier in the meeting, the council opened a public hearing regarding the proposed 2027 Municipal State Aid Street improvement project. The planned reconstruction covers Garden Street from Center Street to Fifth North Street, and includes constructing a new roundabout at Center Street.

Property owners along the corridor face estimated special assessments of $4,750 per parcel. Stadheim noted that parkland along the corridor will receive a larger assessment based on its footprint.

“We are estimating the special assessments at $4,750 per parcel,” Stadheim said. “And then obviously the parkland will receive a larger assessment for its contribution to the project as well.”

Three residents spoke at the podium during the public hearing to ask questions about how the project would affect their private property and neighborhood traffic.

Joel Blickem of North Garden Street, said he welcomed the street improvements but asked how existing driveways and sidewalk aprons would be handled, noting he had installed a new driveway less than 18 months ago.

“The assessments are figured for the roadway reconstructs,” Stadheim said. “Generally, everything from the sidewalks in are going to be removed with the project, so we will be reconstructing all the driveway aprons. There’s no additional cost for those driveway aprons.”

Lauri Ludewig of North Garden Street, asked about construction timelines, impacts on front-yard trees, and options for hiring contractors for private sidewalk or driveway work.

“The best I can say right now is during the ’27 construction season,” Stadheim said. “Our plan is to have this bid out hopefully by the end of the year. I would anticipate April or May begin, but that depends on the contractor that gets it.”

Stadheim said that while most of the boulevard trees will be removed during excavation, established trees located behind property sidewalks will not be impacted.

“The vast majority of the boulevard trees are going to be impacted, and we will do parts of the project, but nothing beyond the sidewalk,” he said.

Cindy Blickem asked why the city was planning to reduce the total width of Garden Street.

“With that wider pavement section that invites higher speeds of traffic, and we’re really working to calm traffic on this corridor because of proximity to residential neighborhoods and the park,” Stadheim said. “So narrower streets help to accomplish that, along with the bumps that are being proposed at Third North, Second North, and First North Street as well.”

Stadheim said the street reduction will widen the boulevard area, giving newly planted trees more room to thrive. The city plans to replant boulevard trees under a separate contract after road construction finishes.

The council unanimously approved the resolution ordering in the 2027 Garden Street project and authorizing staff to prepare final plans and specifications.