New Ulm council approves sale of 6.85-acre airport-adjacent lot to Land Haven Development

The New Ulm City Council on April 15 authorized the city manager and finance director to sign a commercial property purchase agreement with Land Haven Development LLC for Lot 1, Block 1, Airport Industrial Park, Third Edition, a 6.85-acre parcel north of Walmart and west of Jacob Street.

City staff described the sale terms as requiring compliance with the Minnesota Business Subsidy Act and noted a prior public hearing on March 4, 2025. Staff said the proposed deal uses a sale-price formula previously discussed by the council that sets a nominal lot price ($1) paired with a 50% assessment payment, a 10-year assessment term and a 4.25% interest rate. Staff reported the total value of the financial assistance tied to the sale would be $217,000 and said Land Haven must spend at least $345,000 on roadway and utility improvements on the site as part of the project conditions.

The company expects to subdivide the parcel into 29 smaller lots for storage buildings and intends to seek a planned unit development (PUD) zoning designation to allow, under conditions, optional enclosed dwelling units. City staff told the council that dwelling units are not a permitted use in the I-1 zoning district and that the PUD process and the development agreement would specify allowable building designs, uses, and association covenants to address concerns such as exterior storage, unlicensed vehicles and other nuisance issues.

Tony Golden, president of Land Haven Development LLC, told councilors the long-term plan is for a professionally developed storage association with uniform building design, landscaping and rules enforced by an owners association. City staff said the agreement will require approval of the project development agreement, the PUD zoning designation and completion of the purchase agreement before closing.

Councilors asked staff to clarify financing and utility responsibilities. Staff said the $345,000 in on-site improvements is separate from the assessment payment and that the assessment for utility work would be repaid over 10 years at 4.25% interest. Staff also said the association and the PUD application would address operation details — including whether individual lot owners or the developer will build units, building color and size standards, and rules about parking and storage.

Councilor discussion referenced current state-level proposals that could change local zoning authority; a council member noted some rural communities oppose upzoning mandates in pending state legislation. No public comment was recorded for this item at the March 4 hearing, staff said.

On a roll-call vote the council approved the resolution authorizing execution of the purchase agreement. Councilors voting yes were: Councilor Christian; Councilor Warmkaw; Councilor Schmitz; Councilor Mack; and President Becker.

The sale and related development remain contingent on completion of the PUD process, approval of a project development agreement and the developer meeting required on-site improvement and assessment obligations. Staff said the development agreement and PUD application will specify covenants governing aesthetics, allowed uses and association enforcement.