Unpaid revenue to be added to property taxes

Albert Lea hotels or motels not filing their lodging taxes will now be held more accountable than in years prior.

The Albert Lea City Council on Monday unanimously approved a change to the city’s charter, which would allow the city to add unpaid lodging taxes to the property tax assessments of the hotels. Unpaid property taxes incur penalties, interest and, eventually, forfeiture of the real estate.

Before the change, there was not much the city could do if a business was not paying its lodging tax, other than holding back its liquor license, said Albert Lea Mayor Vern Rasmussen.

The lodging tax is collected from the people who stay overnight, but the problem has been that a few hotels did not turn in that money once it was collected, Rasmussen said.

Lodging taxes fund the Albert Lea Convention and Visitors Bureau, which uses them to attract out-of-towners to spend time in the city.

Kevin Dulitz, a member of both the Albert Lea Charter Commission and the Albert Lea CVB board, said the CVB board was in favor of the change.

The Charter Commission voted in favor of the change at its Dec. 1 meeting.

In other action, the City Council:

• Voted on an amended development agreement with Cohen-Esrey Affordable Partners for the Freeborn National Bank and Jacobson Apartments buildings.

The developer was not awarded tax credits in 2014 and will reapply this month. If the funds are not awarded from the January application, Cohen-Esrey will reapply in June. Under the agreement, the latest the property could be sold to Cohen-Esrey would be Jan. 30, 2016.

• Passed a resolution declaring the city to be a healthy eating and active living community as part of the Blue Zones Project.

• Approved the Tribune as the city’s official newspaper for 2015 for publication of legal notices.

• Established the 2015 appointments to city boards.

• Ordered the preparation of feasibility reports for road projects slated to be completed this summer.

Included in the neighborhood improvement overlay project for this year are portions of Plaza Street, Ekko Avenue, Sykes Street, Hi Tech Avenue, Westron Street, Airport Road, Troy Road, College Street, Court Street, Mill Street, Washington Avenue, Jefferson Avenue, Oline Drive, Bel Aire Drive and the wastewater treatment plant access and service roads.

The state aid street project covers Clark Street from West Avenue to about 165 feet west of Washington Avenue and Vine Avenue from Fountain Street to Abbott Street.

Also slated is the reconstruction of Fifth Street from Virginia Place from Fourth Street to Seventh Street.

• Voted to reinstate assessments on tax forfeited properties that sold via public auction in the fall.

• Adopted a funds transfer as outlined in the general fund budget.

• Called a public hearing for Jan. 26 regarding the Small Cities Development Program grant application that requests funding for owner-occupied rehabilitation in 2015 through the Housing and Redevelopment Authority and Semcac.

• Established the rules and procedures of the council for 2015.