As downtown Albert Lea continues to change, the Hanson building and adjacent parking lot remain in question.

&uot;It may or may not be redeveloped,&uot; City Planner Bob Graham said. &uot;We don’t know yet.&uot;

The city will determine the fate of the area soon, after agreeing to buy it Monday. They could keep the building and make use of the parking lot, or demolish the building and use all the space for parking.

According to city manager Paul Sparks, the Freeborn Holding Corporation offered to sell the property for $220,000, which is $40,000 lower than the appraised price. The offer was to expire on Nov. 1.

Sparks recommended that the city council buy the property to redevelop the area.

According to Graham, there are two benefits of the property. First, the Hanson building parking lot can be combined with an adjacent municipal parking lot, which would provide more public parking.

Second, &uot;The Hanson building is significant to the historic district,&uot; Graham said.

The city has eyed the Hanson building and adjacent parking lot as key parts of an effort to redevelop the Freeborn Bank building, also known as the Vault. The vacant, city-owned property sits west of the Hanson building and Sparks has said parking availability would be a key to getting new tenants for the building.

However, if officials decide to demolish the Hanson building, which is occupied by residents, the city will have to offer relocation assistance.

The city would have to provide them with equivalent or better residences than what they have, said Graham, who has been involved with relocating approximately 100 places of residence. A person with a two-bedroom apartment must be offered another two-bedroom apartment with similar amenities and similar rent. If rent is high, the city will have to make up the difference.

&uot;We have to look at the residents’ needs versus (what’s available) in the community,&uot; Graham said.

According to Timothy Miller, manager of the property, there are 12 occupied residences and two offices in the building.

Sparks estimated that relocation costs for a residential apartment would be around $3,000 to $3,500.

The council could make a decision at its next meeting, Oct. 27.

(Contact Benjamin Dipman at ben.dipman@albertleatribune.com or 379-3439.)