EDA has agreed to sell the Garden Terrace apartment complex to Rebound Partners, and the city expects a financial return to improve housing and amenities in New Ulm.
NEW ULM — EDA has sold its interest in Garden Terrace, along with vacant lots at 1001 and 1002 North Garden Street, to Rebound Partners for $7.3 million.
“The developer that is purchasing it is keeping the building as is,” City Manager Chris Dalton said of the property’s future.
Current tenants’ rents will increase regardless of the sale, and staff at the complex will remain employed under the new ownership. Rebound is interested in developing additional housing on vacant land and improving existing apartments.
Rebound is interested in several development opportunities in New Ulm, with a focus on the continued revitalization of downtown. They recently purchased Lamplighter with the intention of turning it into a restaurant and winery.
“We want multi-family,” Dalton said. “They’re going to work with Oak Hills (Living Center), which will probably be an active senior community and some type of housing will go in there.”
Councilor Char Kaluk was pleased with the developer’s intent to improve the area with amenities such as a boardwalk, pickleball court and grilling area.
“I believe it is important for the city of New Ulm to get out of the business of selling homes at fair market value,” Mayor Kathleen Bakker said. “I believe that having private developers compete with organizations like cities inhibits potential investment.”
Future development will provide tax revenue to the City of New Ulm and encourage future private development.
“There are three or four private developers looking at housing in New Ulm,” Bakker said. “But because the city is competing with them, it’s more difficult when it comes to accessing loans and things like that. So I wholeheartedly support this.”
The developer agreed to give Oak Hills Living Center a right of first refusal when selling the property to Rebound. This gives Oak Hills Living Center the contractual right to accept or reject offers on the property before the owner sells the property to someone else.
This sale generates income for the EDA that can be used to start and maintain projects that support home improvement, or to benefit people looking to sell their home or first-time home buyers. Small business grants may also be approved with income from the project.
