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Public hearing held on proposed sale of city land north of Walmart to Land Haven Development LLC
Summary
Council held a public hearing on a proposed $1 sale of 6.85 acres at 2211 Jacob Street to Land Haven Development LLC; sale would include assessment relief that triggers the state business-subsidy public-notice requirement. No final purchase agreement was approved at the hearing.
The New Ulm City Council on Tuesday held a required public hearing on a proposed sale of city-owned land at 2211 Jacob Street to Land Haven Development LLC.
City staff said the 6.85-acre parcel, platted as part of the Airport Industrial Park Third Addition and located north of Walmart and west of Jacob Street, would be offered to Land Haven for a nominal purchase price of $1. Staff said the parcel’s market value is $102,000 and that the transaction would include a 50 percent reduction in outstanding special assessment obligations; staff described the combined financial assistance as roughly $217,000 and said state law requires a public hearing because the business subsidy exceeds $150,000 under the State of Minnesota Business Subsidy Act.
The nut graf: the purchaser, represented by Tony Golan, told the council he intends to subdivide Lot 1 into smaller lots to accommodate storage facilities and an option for enclosed dwelling units within the buildings; staff and council discussed zoning, planned-unit-development requirements and utility/road installation before any sale could close.
City staff outlined conditions that must be satisfied before closing: execution of a purchase agreement with the city, finalization of project goals, a project development agreement and the approval of a planned-unit-development zoning designation. Staff also said the remaining 50 percent of the assessment on Lot 1 (about $115,000) would be paid from the city’s land acquisition fund, the same fund previously used to cover assessment shortfalls on a neighboring lot.
Developer comments and council questions focused on use, infrastructure and appearance. Tony Golan, identified as president of Land Haven Development LLC, said access roads and utilities would be privately installed; initial roads would be gravel with paving later if an owners association agrees to it. He said the development would use uniform storage units and that the property could be subdivided into roughly 29 lots. Council members asked about the possibility that storage units might be used as residences and about proximity to truck traffic from nearby businesses; staff and council noted that existing I-1 (industrial) zoning contains standards that would need to be modified through a PUD process.
A member of the public offered a comment in support of exploring additional housing options.
The hearing was closed by motion and second; the council carried the motion to close the public hearing. No sale or purchase agreement was approved at the March 4 meeting; staff said a future council meeting will consider a purchase agreement if the applicant meets the listed conditions.
The council and staff emphasized that any residential use would require separate land-use approvals, including PUD zoning and any applicable interim- or conditional-use permits, and that the city’s current zoning does not allow residential uses in many industrial locations without those approvals.
