New Ulm wins $4.3 million in federal funding; council approves $768,513 engineering contract for Center Street safety project

The New Ulm City Council on May 5 approved a professional services contract to begin design and environmental work for the Center Street Corridor safety improvements after staff said the city had been programmed to receive $4.3 million in federal funding.

Staff described the package of awards as two carbon reduction grants of $520,000 each, $1,000,000 in fiscal-year 2030 Transportation Alternatives funding and $2,300,000 in FY2030 STP small urban funding, which staff said accounts for roughly 65% of an estimated $6.7 million project cost. The project scope includes roundabouts at Garden and Payne streets, a pedestrian underpass near Garden Street, rectangular rapid flashing beacons at crossings, reconstruction of underground utilities, stormwater work and other corridor restoration.

"We are very excited to be awarded this funding," staff said in presenting the award and the consultant proposal. Council approved a $768,513 contract to the consultant named in the packet to provide geotechnical services, environmental documentation, project design and structures work to keep the project on schedule for federal authorization in 2029. Staff told council that engineering fees were not budgeted in 2026 and that the city may use fund balance or state aid funds to cover early work, with the services to be included in the 2027 budget process.

Councilor (voice 4) moved to approve the professional services contract; the motion received a second and carried by voice vote.

Transcript spellings of the consultant varied; the packet included an award letter and exhibit for the consultant contracted to begin environmental review and design.