New Garden Terrace building to receive $800,000 EDA loan
Trending
NEW ULM – New Ulm's Economic Development Authority (EDA) approved an $800,000 loan to Oak Hills Living Center Tuesday to furnish the new Garden Terrace building (The Oak) under construction.
Loan terms for the approval begins with 24 months of no interest or required payments, followed by 120 months of a 1% interest rate.
City Manager Chris Dalton said that the reason for 24 months of no interest or required payments is to allow Oak Hills time to fill the property and have at least one full year of revenue with an additional partial year before payments begin.
Motion for the $800,000 loan gives Oak Hills time to furnish the building before residency begins.
Executive Director of Oak Hills Living Center Candas Schouvieller said that occupancy for the new building is expected by March 2027.
Furnishing of the new Garden Terrace building, which began groundwork construction back in January, will include furniture, fixtures and equipment needed for the three story, 39 unit senior housing facility.
Garden Terrace's new building consists of one and two bedroom apartments, along with services that provide meals, medical checks, and other assistance that will promote resident independence.
Mayor Kathleen Backer put the $800,000 loan into context, explaining the EDA sold the property back in 2024 to Rebound Partners for $7.3 million.
"We have supported the project with a 2.3 million investment [but] we sold the property for 7.3 million," Backer said, "so we're really investing one third of the principal from that property."
Backer added that she was supportive of selling because it would allow income to be generated from interest as opposed to rent.
EDA Board Member Andrea Boettger said that the deferred interest for two years and 1% interest rate showed New Ulm's commitment to meeting the needs of the community.
In addition to the third Garden Terrace building's construction, New Ulm has several housing projects in the works.
Highland Avenue's Kueper's Apartments are currently leasing apartments. The project began in September of 2025.
Land Haven Addition, NUBRIC Tiny Homes, and River Haven Housing are all at different stages of development.
Talks around the sites of George's Ballroom and Marketplatz Mall becoming housing locations have also occurred.
"I'm excited about the project," Backer said, "I'm hearing good buzz around the community about it."