New Ulm, Minnesota

An Idyllic Blend of Charm, Tradition, and Innovation

With German roots that draw many to see its charms, this city remains a standout

Known as “The most German city in America,” New Ulm, founded in 1854, is named after its Bavarian namesake, Neu-Ulm. This German heritage is a main part of the city’s identity, evident in the historic downtown architecture, the 45-foot glockenspiel, the Hermann Monument, and festivals like the annual Bavarian Blast and Oktoberfest, drawing visitors from near and far. New Ulm is also home to the August Schell Brewing Company, often called Schell’s Brewery, one of the oldest breweries in the United States, and an attraction to the area.

Often called “The City of Charm and Tradition,” New Ulm is a community of 14,120 people, with the opportunities and amenities of a modern city. Mayor Kathleen Backer illustrates, “We have a wonderful backdrop for people to come in and enjoy the heritage of our community. But besides that, we have a terrific workforce. We have one of the top 10 medical centers in the rural United States. So, as we look at our community, we have the perfect setting, not just to ‘live, work and play,’ but to invest.”

Supporting Development for a Thriving Economy

The city’s economic development initiatives focus on attracting investors and supporting new businesses. A notable example is an EDA grant program, offering $7,500 to start-up businesses and successfully helping many new enterprises establish themselves in New Ulm. “With that program, the focus is to get new businesses and entrepreneurs through that first year of business, that’s always the hardest year. If they can make it through the first year there’s a pretty good success rate of them continuing,” conveys City Manager, Chris Dalton.

According to Dalton, New Ulm welcomed 14 new businesses in 2023. Among the notable additions are Gypsy Girl Consignment Boutique, located downtown, Rush, a rooftop restaurant that is a first for southwest Minnesota, and White Boxer Coffee Company, an independent roaster supplying local coffee shops. Other new businesses include Broadway Bait, Midwest Detail Garage, and several transportation services addressing local needs. Additional service-based companies such as Revive Aesthetics, AMS Grooming Salon, and Cove Collective have also recently opened, contributing to the city’s growing business landscape.

A Vibrant Downtown

Downtown New Ulm is a bustling area, as Mayor Backer portrays, “I don’t know many communities our size that have a shortage of available storefronts in the downtown area for people to come in with new businesses. We have been very, very fortunate in the last couple of years with an influx and reinvestment of individuals and organizations in our downtown.”

Dalton highlights ongoing and future improvements for New Ulm’s downtown area, where the city currently offers facade improvement programs for businesses, and is considering a streetscape project. “Right now, it’s a one-way street through our downtown area, and we will work with business and property owners to see if there’s another way for that streetscape to look,” he says. Potential options include changing to a two-way street, moving parking to another area, and expanding sidewalks to create larger patio space for restaurants, and pedestrian-friendly areas.

Housing and Real Estate Development

Eric Bode, Owner of BoCo Real Estate, discusses the shifting demographics New Ulm is experiencing, noting a growing influx of retirees and younger people taking up roles in professional services and business ownership. He says this change has sparked a demand for new housing options. “Right now, we’ve had a shortage in the single-family home category, just from the aspect of people coming to town and people not moving out of their current homes into the next venture in life,” he recounts. To encourage a turnaround of housing stock, the city has put together a rehab program, helping homeowners to get their homes in shape to sell.

“So, rehabbing the bones of the building- roofs, windows, things like that,” details Dalton. “If you’re 65 and older, you don’t make any payments until you sell the house. If you’re younger than 65, it’s a ten-year 1% interest loan to help you with those projects.”

New Ulm is also pursuing the development of apartment units, reflecting findings from a recent housing study. “As of right now we have a 1% vacancy rate,” Dalton reports. “We have roughly 5900 individuals driving into town every day for work, some because they can’t find a place in town. So, looking at what’s going on, I think this will fulfill our need.”

Along with encouraging mixed-use development in the downtown area, New Ulm is seeing the reuse of existing properties, creating unique housing opportunities. George’s Ballroom, a beloved art deco building with a storied history in the city, is no longer inhabitable and will need to be demolished. On approval, a developer has plans to convert the property into a multifamily, mixed use offering.

Dalton expands, “We have gone through the State Historical Society, and they gave us certain things that we had to adhere to when demoing the building. We had a street dance, and there’s a sign outside that the developer has to take down. They have every intention to keep that sign on site and potentially restore it to its glory days.”

A 70,000-square-foot former shopping mall in the downtown is also being transformed to include housing, greenspace, and some retail, with parking underneath. Bode, who is part of the project, elaborates, “We’re working closely with the developer of George’s site so that we both don’t improve at the same time and flood the market. Hopefully, it will be a nice little addition to the downtown to add a few more feet on the streets and things like that.”

Parks, Recreation, and Student Engagement

New Ulm takes pride in its extensive parks and recreation facilities. The community continually invests in improving these amenities through initiatives funded by two rounds of half-cent sales tax. “On the first round, we were able to build a 30,000 square foot civic center, as well as other improvements at that time,” Mayor Backer describes.

“Now we’re on the second round, we’ve made improvements to our Johnson Baseball Park, to our Hermann Monument Park area, and the park and recreation center, among others. So, we continue to look at how we can better serve our community.” Moving forward, Backer says the city is focusing on strategic planning, emphasizing the importance of continually reevaluating investments to align with residents’ desires.

New Ulm also offers a range of educational opportunities through its three school systems. “We are very fortunate in a community of our size that families have a choice,” asserts Andrea Boettger, City Council President. The town’s commitment to education is evident in programs like the CTE center, which focuses on technical trades, and partnerships with local businesses to provide students with real-world work experience. The Network New Ulm Youth Program, offered through the Chamber of Commerce is another valuable resource, giving students a first-hand look at community opportunities. “They can go through and see the manufacturing, the retail side,  the government side, and the historical side as well. Those are things that give kids more information about the community, and then it encourages some of those sticking points,” she shares.

Infrastructure and Collaboration

Dalton showcases the city’s extensive road resurfacing and reconstruction efforts, addressing goals to continue improving infrastructure. This includes a coordinated approach with public utilities to replace outdated water and sewer systems during road projects for greater efficiency. Significant projects include a state project that will add a roundabout to a busy area near a new high school and a Walmart store.

“We always had a lot of backup there. So, with this roundabout that should ease congestion during our high traffic hours, making it safer,” says Dalton. Significant water and sewer improvements are underway at the south end of the city, with the support of state and federal funding. New Ulm has also secured federal funding to relocate the airport’s crosswind runway, opening up the potential for both commercial and residential development.

Dalton points to some of the key collaborations that support the city’s agenda, such as the New Ulm Partnership which coordinates economic development efforts. “They keep us all on the same page, so we’re not duplicating efforts,” he relays. The city also values the presence of the local medical center, Allina. “Rural access care is always a need, and they play a vital role in our community,” he acknowledges.

Looking Ahead

In the coming 18 months, Mayor Backer says New Ulm will maintain its focus on strategic planning and addressing housing needs. She points to potential and upcoming housing projects, including conversations with several Housing and Lodging Developers, the development of the George’s property, and the mixed-use project on Highland Avenue. “Because of all of the energy that we’ve created in New Ulm as an investment and destination for living, we have other developers that are in preliminary dialogue with us to satisfy those housing needs,” she affirms.

AT A GLANCE

New Ulm, Minnesota

What: A unique city, blending progress and tradition

Where: Brown County, Minnesota

Website: www.newulmmn.gov