New Ulm City Council voted to approve a tax abatement program for the new Garden Terrace building. Once completed the new Garden Terrace building will be leased to Oak Hills Living Center to operate a senior living facility.
(File Photo)
NEW ULM – The New Ulm City Council approved the tax abatement agreement for the Garden Terrace and Oak Hills Living Center.
Earlier this year, the New Ulm Economic Development Authority sold the two existing Garden Terrace buildings and an adjacent vacant lot to Rebound Real Estate. Rebound is planning to construct a third Garden Terrace building on the vacant lot. The new building will be three stories with 39 units. Upon completion of the new building, Rebound plans to lease the building to Oak Hills Living Center, which operates a senior living facility on an adjacent property. Oak Hills will take over all expenses associated with the property.
The tax abatement would assist the developers in covering excessive building costs for the project. The new Garden Terrace building will incur extra costs for structural support related to the soil conditions. The developers have indicated that without the abatement, the project could not move forward.
The total abatement amount for this project is $585,176. The abatement would be payable over 10 years. The annual abatement amount would be $58,517.
Community Development Director David Schnobrich recommended one change to the abatement agreement. The original agreement prohibits the Rebound Real Estate from transferring the project or property to another owner without city approval. The new language would allow Rebound to transfer it to Oak Hills without city approval.
No comments were received from the public on the tax abatement.
Councilor David Christian made the motion to approve the abatement, with a second from Councilor Eric Warmka. The motion was approved by the council.
Before the abatement is approved, Brown County will also need to sign off on the project. Schnobrich said Brown County Commissioners had taken the first steps to approving the abatement earlier that morning.
During a Brown County Commissioner meeting earlier Tuesday, the commissioners unanimously voted to hold a public hearing for the Garden Terrace tax abatement. The public hearing will be held Tuesday, Dec. 16.
NEW ULM — Brown County Commissioners unanimously approved setting a public hearing at their Dec. 16 meeting to …
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