City Council approves general development plan for Highland Apartments after lengthy traffic and process debate

The New Ulm City Council on Tuesday approved a general development plan for a planned unit development that would create the Highland Apartments, a market-rate project proposing 148 units at 901 North Highland Avenue.

Planner John Nisley presented the plan, describing a 10.2-acre site and a two-phase project with two 38-unit buildings fronting North Highland Avenue (phase 1) and two 36-unit buildings to the west (phase 2). Nisley said the developer, Keepers Incorporated, has requested one deviation from the R-4 zoning standard: placing garage structures on the perimeter to screen taller apartment buildings. He also said the project proposes 304 parking stalls and building heights of about 40 feet 6 inches.

The planning commission had unanimously recommended approval with conditions, and the city attorney confirmed that the city’s review complied with legal requirements. Nisley told the council the project meets the city’s land-use procedures, that the developer requested no city incentives, and that the Minnesota Pollution Control Agency’s stormwater standards and city stormwater rules will apply. City staff said the project’s projected 1,023 daily trips (77 AM peak, 99 PM peak) would result in an estimated 4,566 vehicles per day on the North Highland segment when combined with existing counts — a level the city’s 2006 feasibility study had previously planned for in roadway design.

A number of residents submitted comments and one letter read into the record by staff argued the city should require a new third-party traffic and pedestrian safety study before rezoning, citing proximity to New Ulm High School and recent corridor development. The letter requested coordination with District 88, emergency services and the city’s safety commission. The writers urged postponing zoning decisions until a corridor-wide study and updated traffic modeling could inform mitigation, noting existing congestion and school-adjacent pedestrian activity.

City engineer Joe Stadheim and other staff answered questions on vehicle capacity, noting a two-lane roadway can safely handle roughly 8,000–10,000 vehicles per day before conversion to four lanes would be considered; he described prior practice of monitoring conditions and installing improvements when warrants are met. City staff said MnDOT conducted traffic counts in 2021 and 2024 on sections of North Highland; updated, project-specific traffic modeling was not required by staff for this application because the project’s unit count fell below Minnesota’s Environmental Assessment Worksheet threshold and the planning record relied on established counts and models.

Council discussion referenced concerns about traffic, stormwater management, building scale, parking, play space, and property-value impacts. Staff provided clarifying details: parkland dedication for the project was calculated at $56,000; the proposed open/play area totals about 55,900 square feet (roughly 12.5% of the site); the developer proposes to construct the Tenth North Street extension and pay for the underground utilities and roadway improvements; and there are no public incentives requested.

After council review and questions, a motion to approve the PUD general development plan carried unanimously. The approval requires later actions before construction — rezoning by ordinance, a development agreement, final plat and other documents noted in the planning process. Staff indicated the development agreement and final plan will return to council and that the developer expects to begin phase 1 work as soon as late summer, with a multi-year horizon if both phases proceed.