The EDA agreed to sell the Garden Terrace apartment buildings to Rebound Partners, and the city looks toward financial gains to improve housing and amenities in New Ulm.

NEW ULM — The New Ulm Economic Development Authority (EDA) sold the ownership rights of Garden Terrace along with a vacant lot, located at 1001 and 1002 North Garden St., to Rebound Partners for $7.3 million.

“The developer that’s buying them is keeping the building as is,” City Manager Chris Dalton said of the property’s future.

Rent for current tenants will rise regardless of the sale, and the staff of the complex will remain employed with the new ownership. Rebound is interested in developing additional housing on the vacant lot, and improving the existing apartments.

Rebound is interested in several developmental opportunities in New Ulm, with a focus on continued revitalization of downtown. They recently purchased the Lamplighter with intent on turning it into a restaurant and winery.

“We would like multifamily,” Dalton said. “They’re going to work with Oak Hills (Living Center), maybe it’s an active senior community, some type of residential will be going there.”

EDA memmber Char Kalk was pleased with the developers’ intention to improve the area with amenities, such as walking trails, pickleball courts and grilling areas.

“I believe it’s important for the City of New Ulm to get out of the business of housing in fair market value,” Mayor Kathleen Backer said. “I believe that it depresses the potential investment, of private developers, if they are competing with an entity like a city.”

The City of New Ulm will have tax income from the future development, which would encourage private development moving forward.

“We have three or four private developers that are looking at housing in New Ulm,” Backer said. “But with the city competing with them it makes it more difficult, as far as leveraging for loans and so on. So I support this wholeheartedly.”

The developer agreed to give right of first refusal to Oak Hills Living Center when they sell the property to Rebound. This will give Oak Hills Living Center a contractual right to match or decline to match an offer on an asset before the owner can sell it to someone else.

The sale will produce income for the EDA that they can use to start and maintain projects that support home improvements, or benefit those who are looking to sell their homes, or first time homebuyers. Small business grants can also be approved with the income gained from the project.