New Ulm Council OKs tax-abatement program for 39-unit senior housing at 1011 North Garden Street
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Summary
The City of New Ulm approved a tax-abatement program to support a 39‑unit senior apartment project at 1011 North Garden Street, authorizing up to $585,176 in abated property taxes over 10 years and a $4,000 city program fee. The program includes a nontransfer clause requiring city approval for transfers before the agreement term ends.
The New Ulm City Council voted Nov. 18 to establish a tax‑abatement program for a proposed senior housing development at 1011 North Garden Street, a project described by staff as a three‑story building with 39 units intended for residents 55 and older.
City planner/staff presenter Mister Snowbrook told the council the project would be owned and developed by Garden Terrace, New Ulm 2 LLC (abbreviated GT2 in the staff report) and leased and operated by Highland Manor Incorporated doing business as Oak Hills Living Center (OH). Snowbrook said a demand study for Oak Hills showed “a total void in what is labeled as senior independent living,” and that tax abatement is essential to make the lease and construction economically feasible.
Under the program the council approved, the total abatement would be $585,176 payable over a 10‑year term, an average of about $58,517 per year. Snowbrook said the figure is based on evaluation by the Brown County assessor’s office. The city will also charge a one‑time $4,000 fee to establish the abatement program; staff clarified that the fee is in addition to the $585,176 abatement amount.
Snowbrook summarized the planned schedule: construction could begin as early as November or December 2025, with completion expected in 2026, taxes from which would be first payable in 2028; the first abatement payment to the operator is projected for February 2029. He also noted that, in the staff‑draft agreement, the owner and operator would agree not to transfer the project, property, or any interest to any party other than the owner or operator prior to the agreement’s termination date without the city’s prior written approval.
Councilors closed the public hearing after no members of the public came forward and approved a resolution to establish the tax‑abatement program with minor conditions and adjustments to the agreement. The Brown County Board of Commissioners previously voted unanimously to proceed with tax‑abatement consideration for the project and set a county public hearing for Dec. 16, 2025, staff reported. The council’s action is to establish the city program and enter the city’s abatement agreement with GT2 and OH; any county or other approvals are separate processes.
Jay Scott of Rebound Real Estate was cited in the staff report as having requested the abatement in a letter noting higher construction costs and challenging soil conditions for the site.
The council approved the resolution by recorded roll call: Councilor Christians (yes), Councilor Warmcott (yes), Councilor Mack (yes), and President Becker (yes).
