NEW ULM – A closing date of March 31 has been set for sale of the Garden Terrace Apartments from the New Ulm Economic Development Authority (EDA) to Rebound Partners, with an agreement in place for the development of vacant lot on the property.

Last October, 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. At that time Rebound Partners expressed an interested in developing additional housing on the vacant lot.

During Tuesday’s meeting of the EDA, Economic Development Director Heather Bregel informed the board that in addition to closing on the property sale, Rebound Partners has been in conversation with the neighboring Oak Hills Living Center for how to develop the vacant lot on the property.

Bregel said Rebound Partners and Oak Hills have agreed on a preliminary design for a senior housing project on the vacant lot for 30 to 40 one- and two-bedroom units.

Bregel said that during the negotiations for the Garden Terrance sale, the EDA agreed to invest $1.5 million in the new building project. It was decided last week to split the $1.5 million into two payments. The EDA will pay the first $750,000 when the plans for the new building are submitted to the city for review. The other $750,000 will be paid after Rebound Partners apply for the building permit.

“They are taking out a construction loan and they need that money to get financing they need to move forward,” Bregel said.

Once the properties are sold, Oak Hills will have the right of first refusal on the property. The EDA will be repaid the initial investment of $1.5 million with the projected annual return of 7 to 9%.

“I am really pleased to see that we are moving forward and finalizing the sale of Garden Terrance,” Mayor Kathleen Backer said. She was pleased Rebound Partners and Oak Hill could come to an agreement. “Kudos to all who worked on the project.”