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What’s Going On: New Ulm’s biggest problem

What's Going On

It’s a problem for Windings.

It’s a problem for Hy-Vee.

It’s a problem for the three school districts.

It’s a problem for the city government.

And most importantly (at least from my perspective) it’s a problem for me.

A little more than a week ago I attended a New Ulm Chamber of Commerce Hot Topics lunch seminar. I walked in the doors of the country club full of hope and optimism I would hear words of encouragement regarding that day’s “hot topic.” Instead, I left feeling downtrodden and filled with heartache, none of which was related to the food (which was quite good).

The “hot topic” of the day was the housing situation in New Ulm. Realtors, bankers, employers and city officials were all there in either an official capacity speaking on a panel or informally attending.

They all did a great job in explaining the problem in 43 different ways which could all be summarized in six words: too much demand, not enough supply.

As a potential buyer who has been paying close attention to the New Ulm housing market the last couple months, this wasn’t news to me. What was most distressing, though, was the realization no one has a solution, or a plan, or even an idea of how to solve this problem.

And it is a problem. In fact, I would argue it’s the biggest one facing this community and one that will not only stifle growth, but could actually lead to a serious decline in the quality of life we all enjoy.

Believe it or not, though, that aforementioned quality of life is in some ways contributing to the problem. New Ulm is a great place to live and raise a family. It has great schools and parks, a vibrant economy and downtown, a low crime rate, abundant cultural opportunities and the kind of infrastructure most communities could only dream to have.

As a result, people want to live here and don’t want to leave.

That in and of itself isn’t a bad thing. Except the supply of housing for everyone who wants to live here isn’t keeping up with the demand. The result, as any beginning economics student will tell you, is soaring prices, which is exactly what is going on here.

One of the panelists at the Chamber event was a manager at Windings. That company is trying to expand its workforce; they want to add good paying jobs to the community, which everyone wants.

But in doing so, they are noticing a troubling trend: more and more of those new hires aren’t living in New Ulm. They are living in Mankato, and St. Peter, and even Albert Lea.

Why? Because it’s actually cheaper to make that 60-plus mile commute on a daily basis than to spend 50, 60, or 70 percent more for a house in New Ulm than for something similar in those respective communities.

The end result is fewer people buying groceries in New Ulm. Or paying taxes in New Ulm. Or sending their children to our schools. Worst yet, employees who don’t live in towns where they work are more likely to leave their job for something closer to home, causing additional turnover and lost production for the Windings of the world along with any other employer looking for professionals.

And as I previously mentioned, this is a problem I feel uniquely qualified to discuss as it is directly impacting myself and my family. We have not only seen the available houses and accompanying price tags here in New Ulm, but in Sleepy Eye, and Courtland, and Springfield, and Hanska, and even larger communities like Marshall and Fairmont.

While we would rather live in New Ulm (see those previously mentioned reasons), the allure of affordable housing is a tough one to resist, and one new employees at Windings and other businesses in town are succumbing to.

Regrettably, though, much like everyone else who spoke at that luncheon last week I don’t have a solution, although I’m certain there isn’t an easy one.

The obvious answer when you have a supply and demand problem is to increase the supply. There are a lot of ways to do that, up to and including new construction. However, a lack of available land is prohibiting that, at least inside the city limits, which leads to me wonder if expanding those limits by annexing additional land would be a possibility.

There are a lot of empty fields on Highways 14, 15 and 29 coming out of New Ulm that spring to mind as possible targets. But that would only be a first step that would have to be followed by extending utilities, all of which requires money and lots of it.

The absence, though, of easy, obvious solutions only underscores the significance and magnitude of this problem. As such, it’s going to take a collaborative effort with stakeholders throughout the community to address and solve it.

However, as this is a city problem, it will require New Ulm’s government leaders to organize that effort and see it to completion. I just hope they recognize the depth of this issue and are prepared to be aggressive and creative in addressing it.

Because this isn’t a problem that will just go away without causing serious collateral damage to this community we all love.

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