The New Ulm City Council on Oct. 21 approved the final plat for Garden Terrace Second Edition and authorized city staff to prepare documentation for a tax‑abatement program tied to the project.

Council members voted unanimously to approve the final plat for property generally located west of North Garden Street and south of Oak Street (about 1011 North Garden Street), which would subdivide an 8.8‑acre parcel into three lots and allow construction of a 39‑unit, three‑story apartment building for independent seniors 55 and older.

City staff told the council the new Lot 2 would host the apartment building; the proposed building is six units fewer than the preliminary plat showed because the developer increased the number of two‑bedroom units while keeping the same building footprint. Staff said the development complies with the R4 zoning district standards. Because existing parking and service drives cross new lot lines, the owner will record a reciprocal easement agreement to maintain shared access and parking. Staff said the owner plans to lease the building to Oak Hills Living Center, which will have an option to purchase in the future.

The council’s approval was subject to two conditions recommended by staff: the reciprocal easement agreement must be approved, signed and recorded; and the resolution approving the plat must be filed with the Brown County recorder’s office.

At the meeting a council member asked whether construction would begin this winter; staff said the developer hopes to start on or about Dec. 15, citing soil conditions that staff said will better support equipment once frozen.

Separately, council members voted to authorize city staff and the project consultant to prepare the formal documentation needed to establish a tax‑abatement program for Garden Terrace New Ulm LLC and Garden Terrace New Ulm II LLC. Staff recommended retaining Divadrone Associates Inc. to prepare required documentation at a cost of $3,000. Staff said preliminary projections indicate a financial need of $862,092 that property tax increases could generate over a 10‑year period, and that Brown County’s participation will be required before abatement payments begin.

Staff said tax‑abatement payments would only be made if the applicant is not in default of a development agreement; the city will prepare a development agreement addressing tax payments, construction obligations and related items. Staff proposed a public hearing on the development agreement at the council’s Nov. 18 meeting, pending preparation of the required materials.

The council approved both the final‑plat resolution and the authorization to prepare tax‑abatement documentation by unanimous roll call votes. Director Jorgensen called the roll; Councilors Christian, Warmka and Mack and Council President Becker voted yes on the motions.

Implementation steps described by staff include recording the reciprocal easement, preparing a development agreement and coordinating with Brown County on its separate approval process. Staff indicated it will return to council for a public hearing once the development agreement and related materials are complete.

The actions clear key procedural steps for the Garden Terrace project but do not authorize final tax abatement payments or construction financing; those items require a development agreement and any required county approvals before abatements would be paid.