New Ulm City Council approves series of permits, contracts and ordinances

The New Ulm City Council on April 1 approved a package of permits, construction contracts, funding actions and an ordinance that together advance city street and airport work, land-use approvals and local rules for cannabis sales.

Taken together, the actions move forward the half‑block vacation of Sixteenth North Street adjacent to lots in Blocks 205 and 206, several land-use permits, the award of multiple construction contracts including the 2025 utility/street/alley project and portions of two airport projects, the adoption of a cannabis and hemp retail ordinance and related fees, establishment of a local affordable housing fund, and a joint‑powers agreement to enable Minnesota PACE financing for a private project.

Why it matters: the votes authorize near‑term construction and design work (some contingent on grants), clarify local rules for cannabis and hemp businesses, and formalize a mechanism to support private clean energy upgrades through property‑assessed financing. Several of the capital contracts will increase the city’s local funding responsibility because bids were above engineer estimates; councilers approved contract awards with conditions or contingencies tied to grant funding.

Most significant actions • Vacation of Sixteenth North Street: The council adopted a resolution authorizing the vacation of a roughly half‑block right‑of‑way adjacent to Lot 1, Block 205 North and Lot 7, Block 206 North, requested by GMG Rentals, Inc. Staff recommended approval with conditions: filing a vacation plat with the Brown County Recorder, payment of a $2,090 vacation fee and that relocation or removal of utilities or cable in the area be at the applicant’s expense. The measure passed on roll call with Councilors Christian, Warmka, Schmitz, Mack and President Becker voting yes.

• Conditional use permit — National Guard Readiness Center fence: The council approved a conditional use permit allowing a special‑purpose chain‑link fence topped with barbed wire (7 feet of chain link plus 1 foot of barbed‑wire strands, for an overall height of 8 feet) around the readiness center at 2100 Palmer Avenue. Planner John Knisely told the council the planning commission unanimously recommended approval with four standard conditions. The motion passed on roll call with the same yes votes.

• Interim use permit — gunsmithing at 115 North Washington Street: Council approved a five‑year interim use permit to allow a gunsmithing business to operate from a detached garage in an RT‑2 (residential) zone. Staff said the applicant must maintain appropriate Department of Justice and ATF licenses; planning commission recommended approval with 14 conditions mirroring the 2020 permit. The motion passed on roll call with Councilors Christian, Warmka, Schmitz, Mack and President Becker voting yes.

• Simple lot division — Front Street Industrial Park: The council approved a simple lot division of Lot 5, Block 1, Front Street Industrial Park Second Edition (1000 North Front Street). Staff and the planning commission recommended approval with the condition that the authorizing resolution be recorded with the Brown County Recorder’s Office. The roll‑call vote was unanimous.

• 2025 Utility/Street/Alley improvement project: After public bid opening, the council awarded the construction contract to MR Paving and Excavating for $3,282,099.52, the low bid. Staff noted the low bid was about 28.7% under the engineer’s estimate of $4,601,250.50 and that unit prices were lower than prior years; the motion to award carried by voice vote.

• North Garden Street project direction (summary only; see separate article for full discussion): The council directed staff to proceed with layout Option 3 with bump‑outs but exclude bump‑outs at Fourth North, for reconstruction between Second North and Fifth North (see separate article for public comments and discussion). The motion carried by voice vote.

• Airport projects — apron expansion and pavement maintenance: Bids exceeded the engineer’s estimate. The council awarded the base bid plus alternate 2 for the 2025 airport apron expansion and airfield pavement maintenance to MR Paving and Excavating for $996,340.97, contingent on receipt of companion federal and state grants; the motion carried by voice vote. The airport’s local share rises because the project is 95% federally funded with 2.5% state and 2.5% local shares; the city will initially fund and be reimbursed through future grants.

• Airport fuel system replacement — phased award: Because overall bids exceeded the engineer estimate and the state program caps the funded portion, staff recommended splitting the project. The council awarded Schedule 1 (civil/site work including access road and pavement) to MR Paving and Excavating for $765,409.53, contingent on receiving the companion state grant. Council discussion indicated staff will reapply later for a fuel‑system‑only solicitation. The motion carried by voice vote.

• Comprehensive Safety Action Plan: The council awarded a professional services contract to SRF Consulting Group to prepare a citywide Comprehensive Safety Action Plan for $249,998.50; staff said the work is fully funded by federal and Minnesota IIJA matching funds. The motion carried by voice vote.

• Cannabis ordinance and fees: On second consideration the council adopted ordinance 2025‑099 amending chapter 4 to regulate cannabis and hemp retail businesses and temporary cannabis events. The council also adopted related fees effective May 15, 2025: a $350 initial retail registration fee, $700 annual renewal for retail businesses, a $50 annual low‑potency hemp retailer license, and $100 per day for cannabis events. The motion to adopt and the fee resolution both passed (voice vote for the ordinance; roll call for the fees showed Councilors Christian, Warmka, Schmitz, Mack and President Becker voting yes).

• Establish fund 254 — Local Affordable Housing Aid: The council established Fund 254 and transferred a $65,386.45 balance (funds received in 2023–2024) from the general fund to the new fund to comply with audit guidance. The motion passed on roll call.

• Joint powers agreement — Minnesota PACE: The council authorized a joint powers agreement with the Port Authority of Saint Paul to permit participation in the Minnesota property assessed clean energy (PACE) program; staff noted this enables private projects (example: River Haven near the airport) to apply for PACE financing that would be repaid via property assessments. The motion passed on roll call.

• Police donations: The council accepted monetary donations of $2,000 from Herb Knutson and $200 from New Ulm Dental Clinic to support the New Ulm Police Department K‑9 program. The motion passed unanimously on roll call.

• Claims and closed session: The council accepted a list of claims paid totaling $1,908,708.92. The council then voted to move into a closed session under Minnesota Statutes section 13D.05, subdivision 3(c) to discuss offers and counter offers for the city’s purchase of portions of airport‑area parcels (parcel IDs recited on the record).

Votes and conditions: Several contract awards were approved contingent on receiving state or federal grants; others required recording resolutions or applicant payments for plat fees and utility relocation costs. Where roll‑call tallies were recorded, Councilors Christian, Warmka, Schmitz, Mack and President Becker voted yes.

Looking ahead: Multiple projects approved require follow‑up steps: filing plats and resolutions with the county recorder, submittal and acceptance of companion state/federal grants and, in the case of the airport fuel system, a later solicitation for the fuel‑system equipment. The council pulled one purchase agreement (Land Haven Development LLC) to a future agenda at the developer’s request.