City hails flurry of downtown changes

Published 12:00 am Tuesday, July 23, 2002

In the course of 15 minutes, the city of Albert Lea took three big steps toward realizing a plan hailed by city councilors and some residents as a turning point in the history of downtown.

The city council voted to buy the Lea Center building for $350,000, and, in their next order of business, sold it to a St. Paul developer for $1. Then, councilors voted to condemn a building and parking lot across William Street from Lea Center &045; the first step toward getting it into city hands so it can become a large parking area for the Freeborn Bank/Vault building next door, also owned by the city.

Put together, the city says the three steps promise to drastically change the complexion of a two-square block area that includes what two of downtown’s most substantial and most troubled buildings &045; Lea Center and the Vault.

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Residents who spoke at Monday’s city council meeting urged the city to go forward with the Lea Center plans.

&uot;This, I think, is the most positive point I’ve seen taking place in Albert Lea for the last 50 years,&uot; said Dr. Niles Shoff, the former Mayor of Albert Lea whose business, Shoff Chiropractic, is across the street from the Vault and next to Lea Center. His speech drew applause from the crowd in the packed council chambers.

&uot;I think this initiative from the city is a very encouraging and progressive initiative,&uot; said Mike Kelly, who is running for city council in the Second Ward. &uot;One of the most progressive I’ve seen in a long time.&uot;

Council members took the opportunity to voice their support, as well.

&uot;I think it’s important that we look at the downtown area,&uot; said councilor Ron Sorensen. &uot;We have already made a bold commitment to the Vault building, and I think this is an extension of that.&uot;

&uot;I have no doubt that it’s the right move and that we’re going in the right direction for the downtown area,&uot; said councilor Al &uot;Minnow&uot; Brooks.

Metro Plains, a redevelopment company with projects in nine Midwestern states, wants to turn the six-story, mostly vacant Lea Center into five floors of apartments and one floor of commercial space. The company will apply for state and federal grants and tax credits, as it does with most of its projects, to get the redevelopment off the ground.

To make room for parking for the tenants of the renovated Lea Center, the city will tear down the One-Hour Martinizing dry cleaning business north of the building. That property is now city-owned as part of the deal for Lea Center. The city will continue to own and maintain the parking area and will lease it to Metro Plains.

One reason the council made its decision Monday was that Metro Plains needed to heed an Aug. 1 application deadline for many of those state and federal programs. Another was that the building’s owner, Steve Ogdahl, was close to losing it to debtors, from whom it would be more complicated to buy.

The Lea Center deal is part of a larger downtown plan. The city already owns the vacant Vault building at William and Broadway Avenue, and hopes finding a tenant for that building will become another part of a downtown revitalization scheme.

The last piece of the plan is a $1.2 million, three-year grant from the Minnesota Department of Trade and Economic Development (DTED). The city applied for the grant two weeks ago, at the urging of DTED. City Manager Paul Sparks said the department seems to look favorably on the city’s project, making him optimistic about the grant application.

That money would pay for landscaping, curb and sidewalk changes, removal of above-ground utility poles and lines, and other measures to make the area more pedestrian-friendly and attractive. That would make the area a more workable site for potential developers, Sparks said.

The Hanson building, which is located next to the Vault and houses several apartments and a commercial tenant, has been the hardest part of the puzzle for the city to get into place. The city last month thought it reached an agreement with its owner to buy it and the adjacent parking lot for $150,000, planning to demolish the building and use the whole site for parking.

But when the city sent the documents for the owner’s signature, the offer was withdrawn, Sparks said.

Bob Ackland, a former owner of the Vault who had the legal right to match any offer for the Hansen building, said Friday that he and a business partner planned to buy it for $200,000 and wanted to keep it intact.

&uot;That building’s in excellent shape, and it shouldn’t be torn down,&uot; Ackland said. &uot;It cash flows very well with 14 apartments.&uot;

Ackland said he feels he was wronged when he lost ownership of the Vault, which eventually ended up in city hands. He said if he got the Hanson building, he didn’t plan to sell to the city.

&uot;I’m not doing this out of spite,&uot; he said. &uot;Well, in a way I am.&uot;

Sparks told the council Monday that the city needed to have the Hansen building in order to create enough parking to market the Vault to a new tenant. The prospect that the building might change ownership is troublesome to the city, he said.

&uot;I’m concerned that the property could end up moving to another owner, and it could become an even worse problem than it is now,&uot; he said.

By condemning the property, the city will enter court proceedings where appraisers and a judge will decide on a fair price for the building, which the city will pay for the property. Both sides have a chance for input before the judge, Sparks said.

&uot;We held off on this, thinking we might still work something out where they would sign the contract,&uot; Sparks said.

The council voted 7-0 to pursue the condemnation.

With the three moves Monday, city officals agreed they had set themselves on a course toward a needed downtown effort that will have long-lasting ramifications.

&uot;I do feel that this is just a start and it’s going to keep going from there,&uot; said Mayor Bob Haukoos. &uot;I think it’s up to us now to take that step and do something positive in that downtown area.&uot;