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New Ulm council signals interest in acquiring state maintenance shop and armory for $1 each; repairs estimated
Summary
Council approved expressing interest in acquiring a state field maintenance shop and the armory for $1 each, after staff described building conditions, utility costs, and a repair estimate of $85,000–$150,000 for a bulging brick area.
The New Ulm City Council on March 17 voted to express interest in purchasing a field maintenance shop and the armory from the state of Minnesota for a purchase price of $1 each, with staff noting both properties will require repairs and further due diligence.
Elwood Zabel, a city staff member presenting the proposal, said a structural inspection after a recent fire department drill identified a bulging brick area on the ramp side of one building. He provided a rough repair estimate of $85,000 to $150,000 to address that spot and noted other needs including tuckpointing and some window replacement. "Structurally, the bones look strong," Zabel said, but he advised council the armory has many small rooms and some systems (including steam heat) that drove higher utility costs in some years.
Zabel told council the guard supplied utility records dating back to 2019; the armory’s highest recorded annual utility cost was $27,549 in 2025, and prior years were lower. Zabel said the city does not have to acquire both properties together and that some state documentation (appraisals, abatement history) had been provided but lacked dates and cost detail.
Councilors discussed timing and potential resale. One councilor asked whether the city could recover investments in the property if it later sold; the city attorney (Mister Scott) responded that the city likely could recoup investments through a sale price but would provide a definitive opinion later.
After discussion and a motion to approve expressing interest in both properties for a purchase price of $1 each, council voted in favor. The motion does not complete a purchase; staff said further paperwork, possible abatement records review, and a closing timeline remain to be determined. Councilors noted local interest in reuse and redevelopment, and that some uses could add to the tax base if redevelopment follows acquisition.
Next steps: staff will follow up with the state procurement process, obtain any missing documentation (abatement dates, costs), and return with legal counsel’s written opinion about resale and recovery of investment.
