Trending
NEW ULM -- The New Ulm City Council approved the first reading of an ordinance Tuesday to expand allowable commercial uses high density business districts (B-3), targeting large retail spaces that have sat vacant.
The council voted unanimously to approve the first reading of the ordinance to amend the city code to give property owners more options when attempting to lease large commercial buildings.
City Planner John Knisley said with the shifts toward online shopping, there are several large retail buildings vacant across New Ulm, including the former Runnings property on the city’s north side. Under current zoning rules, finding standard retail tenants to fill large commercial footprints has proven difficult for property owners.
Under the proposed amendment, buildings exceeding 50,000 square feet, as well as smaller commercial sites with a minimum building size of 2,000 square feet, could host non-traditional uses through a conditional use permit (CUP). Allowed uses would include light manufacturing and minor assembly, indoor repair establishments, research laboratories, commercial landscape businesses and general transportation services.
Knisley reported that during an Aug. 27 planning commission hearing, resident David Stadick asked commissioners to consider issuing interim use permits, limited to five-year renewable terms, rather than permanent conditional use permits to ensure proper oversight of neighborhood impacts.
Knisley said city staff reviewed the suggestion with City Attorney Robert Scott. Scott advised that if an applicant meets all established criteria for a conditional use permit listed in the city code, the city cannot legally force the business to accept a temporary interim permit instead.
Knisley said conditional use permits allow the city to impose site-specific rules, such as limiting outdoor storage yards or controlling heavy vehicle staging, depending on the location. All primary operations for manufacturing or repair uses must take place entirely indoors.
“We have a number of large retail spaces in the city of New Ulm,” Knisley said. “Over time, with online sales and everything like that, those spaces can go vacant, and it's really hard to find other retailers or already permitted uses in the B-3 to fill those large spaces.”
City Councilor Larry Mack said the planning commission discussed potential conditions for specific sites during its review, noting that outdoor storage rules could be tailored depending on what type of business applies.
Knisley said removing restrictive definitions from the city code, such as obsolete references to bus garages, will streamline the permitting process and allow property owners to bring vacant storefronts back into productive use.
The ordinance requires a second reading at a future city council meeting before taking effect.