Busting an 1862 trust
NU seeks to clear antiquated land use restriction
A parcel of land surrounded by residential housing, located along North Broadway, North Highland and KC Road has never been developed by the City of New Ulm due to a land trust restriction from 1862. Photo by Clay Schuldt
An aerial view of the “Hospital Lands” purchased by New Ulm in 1862. Photo courtesy of City of New Ulm
The City of New Ulm is looking to clear the title on a section of land located at the intersection of North Highland and KC Road to allow for the construction of residential housing. Currently the property is restricted by an 1862 deed setting the land aside for “hospitals and poor houses.” Photo by Clay Schuldt
A parcel of land surrounded by residential housing, located along North Broadway, North Highland and KC Road has never been developed by the City of New Ulm due to a land trust restriction from 1862. Photo by Clay Schuldt
An aerial view of the “Hospital Lands” purchased by New Ulm in 1862. Photo courtesy of City of New Ulm
The City of New Ulm is looking to clear the title on a section of land located at the intersection of North Highland and KC Road to allow for the construction of residential housing. Currently the property is restricted by an 1862 deed setting the land aside for “hospitals and poor houses.” Photo by Clay Schuldt
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NEW ULM - In 1862, the City of New Ulm purchased a parcel of land on the northern end of town that carried a restriction limiting the development of the property for the building of a hospital.
In the 164 years since the land was purchased, the city has never developed the property beyond street and utility improvements. New Ulm's first hospital would be constructed in 1883 at a more central location in the city and the need for another hospital never materialized.
As a result, this land parcel located at the intersection of North Highland Avenue and KC Road remains undeveloped. Recently, the city has taken steps to change the old law.
During Tuesday’s New Ulm City Council meeting, the council formally passed a resolution to submit a quiet title request to the State of Minnesota Office of the Attorney General to clear the property title of its hospital land status to facilitate the development of housing.
Community Development Director David Schnobrich said if the city can get the deed cleared, the city could use the property for any other purposes. Currently, there is a need for residential housing in the community.
The original deed recorded the property area at 9.91 acres. Modern surveying techniques now estimate the property at 11.28 acres. Schnobrich said much of the property was in a flood plain, but around 2.04 acres could be used for housing if the state of Minnesota clears the title of the old trust language.
The current trust language in the 1862 deed reads: "The above described land shall be used by [the City] for the purpose of building and erecting thereon hospitals and poor houses for the sick, destitute, and poor of the said Town of New Ulm and for the purpose of improving the same in a convenient manner for the sole and exclusive use and benefit for such sick, destitute and poor persons, and the said land shall be a public ground for the uses and purposes above specified forever. And it is hereby declared that this conveyance is made, and that the above described real estate shall be held by [the City] in trust and for the uses above specified, and for no other purpose whatsoever."
Schnobrich said since the city acquired the land, five road segments, one storm water retention pond and two streets have been platted on the property. The city also continues to maintain the property.
In the request to clear the title, the city argues the language in the trust is no longer valid. Minnesota Supreme Court has held that language restricting the uses of property given to a city automatically expires after 30 years.
Councilor Larry Mack asked if there were any other properties like this in New Ulm.
Schnobrich was unaware of a property with a similar trust restriction, but said the originally city plat assigned land to a variety of different uses, most of which are no longer in place.
"They had some very unique dedications for property," Schnobrich said.
Christian asked if, in the event the State of Minnesota rules against this request, New Ulm could build a longterm care facility on the property, as that would technically be hospital use.
Schnobrich said the city might be able to make that argument as long as the use was somewhat consistent with that of a hospital.
Mack asked what type of residential property could be constructed on this property if the deed was cleared.
Schnobrich said single-family residential property is already adjacent to the land and would be the most appropriate land use.
Council President Andrea Boettger said it was great of New Ulm's founding fathers to think ahead for things like this, but the city already has a hospital at a more convenient location and much of the language in the deed had not aged well.
Mayor Kathleen Backer said the founders of New Ulm were extremely particular in how the town was laid out in terms of parks and schools. She pointed out that New Ulm once had a "poor farm" on the south end of town, but the city moved on from needing that designation and she believed the same needed to be done with this land.
"It is time to move on and figure out how to use our assets," Backer said.
Councilor Tom Schmitz made a motion authorizing the city to pursue this quiet title request, with a second from Christian.
The resolution was unanimously approved by the council.