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NEW ULM– A 0.15-acre property owned by the New Ulm Public Utilities Commission was recommended for sale Tuesday to a nearby business.
The property, located at 301 Center Street, was originally purchased by the PUC from the Dakota, Minnesota & Eastern Railroad in 1995. The land was purchased for the installation of electrical distribution lines for the express feeder. PUC has 0.48 acres of land in this parcel but only 0.15 acres of land is claimed. With this sale, the PUC will still have access if work is needed on the electrical distribution lines.
City Manager Chris Dalton said Klaasen Mechanical is looking to expand its business warehouse next to the parcel and needs the land for the project. Utility personnel have appraised the property and have no objections to the sale.
The purchase price will be $1.98 per square foot. Selling approximately 6,534 square feet, the total purchase price is $12,900. A final purchase price will be determined following a survey.
Dalton believed the sale was a good investment because the lot was already being used for free parking. The sale will bring more money and allow for the construction of the new property.
Staff photo by Clay Schultz Public Utilities Commission meeting for sale of a small 0.15 acre lot owned by the Public Utilities Commission near 301 Center. The land is being sold to Clason Mechanical for its extensive storage needs.
Contractor approved for Center Street Pass
A bid of $698,412 was accepted from Highline Construction for labor and materials to complete the PUC’s Center Street Overpass project.
The project will rewire the transmission lines and add three switches to isolate the Center Street substation. Currently, if the bus operation and/or other 69 KVA units at this substation require maintenance or repair, the power plant will have to run a 13.2 KVA bus feed to feed the South and Center substations.
After this project is installed, the south substation can still be fed by the 69 KVA system and the express feeders from the north and south can feed the midway substation. This increases the reliability of the distribution system, and provides an option to run the power plant when maintenance and repair is required.
This project is planned for the spring of 2023, but it depends on when the equipment arrives. According to utility engineer Dan Pirsig, the project cannot be carried out during the summer months during high energy loads. If it can’t be completed by spring next year, the Center Street bypass will have to wait until fall.
The project was budgeted at $400,000, but due to inflation, the bid came out higher than expected, with the lowest bid coming in at less than $700,000. Pirsig said the highest bid was $2.12 million.
The balance of the project will be allocated in the 2023 budget.
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