NEW ULM – For the last time, New Ulm Economic Development Authority (EDA) approved next year’s budget for Garden Terrace apartments.

Last month the EDA agreed to sell the ownership rights of the two Garden Terrace apartment buildings and a vacant lot near the property to Rebound Partners for $7.3 million. Rebound is interested in developing additional housing on the vacant lot and improving the existing apartments.

Economic Development Director Heather Bregel said Rebound Partners has signed the purchased agreements, but no closing day has been set. Bregel said Rebound is hoping to close on the property before the end of the year. Until then, the EDA will continue manage the property.

“Even though we are in the process of selling the building we still need to pass a budget,” Bregel said. “We do not have a closing date. We need to continue going through the motions until ownership transfers.”

Garden Terrace Apartments is administered by Lloyd Management. Lloyd Management prepares the budget each year. The 2025 budget would see an increase for all Garden Terrace Apartment units. Most units would see a $75 increase in rents. The larger two-bedroom units with a den will see a $100 increase.

Bregel said the increases were to keep the property in line with with market rate rents.

The EDA aboard board member Andrea Boettger made the motion to adopt the 2025 budget for Garden Terrace with a second from board member Char Kalk. The resolution was carried by the board. The new rents will go into effect for Garden Terrace Jan. 1, 2025.