Twenty homeowners in south-central Albert Lea with moderate- to low-income will soon receive grant money for owner-occupied rehabilitation to fix up their homes.

The opportunity comes through an estimated more than $60,000 in Semcac grants and a $440,000 Small Cities Development Program grant awarded through the Department of Employment and Economic Development to the city — through the Albert Lea Housing and Redevelopment Authority and regional Semcac.

The Small Cities Development Program grant comes from federal funds appropriated to the state from the United States Department of Housing and Urban Development under the Community Development Block Grant Program. In Minnesota, the funding comes through the Department of Employment and Economic Development.

The Semcac grants will be for energy and weatherization.

Jon Ford, executive director of the Albert Lea Housing and Redevelopment Authority, said the city received a first Small Cities Development Grant in 2008, and by the end of this summer will have been able to fix up 15 — and maybe 16 — houses in southeastern Albert Lea. Work to those houses has included replacement of items such as furnaces, water heater and electrical panels, insulation, lead based paint abatement, windows, siding, deck replacement or improvements, bathroom accessibility, shingles, foundations, and demolition and removal of a deteriorated garage structure.

The total amount of work on the units included the $330,000 Small Cities Development Program money and more than $65,000 in other grants through Semcac.

The newest grant agreement to help fix up the 20 homes is set up the same way as the one from last year. It is a 12-year deferred loan program with a zero percent interest rate.

If the ownership or occupancy of the home changes hands during the first two years, the loan is paid back in full.

Starting the third year, the grant begins to decline at a rate of 10 percent per year until it zeros out after 12 years.

Any proceeds or repayment from the grant come back to the city and can be used for the same or other housing purposes.

Ford said the Department of Employment and Economic Development approved to work in the original southeastern Albert Lea target area as well as a second target area bounded on the north by Fountain Street, on the west by Minnesota Highway 13, on the east by U.S. Highway 65 and on the south by the railroad that partially runs parallel to Front Street.

Currently, there are 50 surveys and applications pending for the program.

During the Monday Albert Lea City Council meeting, councilors voted to waive the building permit fees for the houses involved with the grant, which Ford estimated will total about $4,500.

The councilors thanked Ford for his work in achieving the grant and said waiving the fees is just a small price as opposed to what the cost would be to tear down dilapidated housing.

In other action, the council:

 Voted to move forward with the four road improvements planned for the summer. Contracts were also awarded for each.

Councilor Larry Baker noted that awarded bids will save about $265,000 in costs from what the engineer’s estimates were.

The contract for the first project, which involves the bituminous overlay of residential streets in the central part of the city, was awarded to Ulland Brothers of Albert Lea for about $443,000. The engineer’s estimate was about $509,000.

Rasmussen motioned this with the stipulation that the city work with homeowners who have larger assessments.

Simonsen said the assessments are not dealt with until the fall. She did note, however, that staff are recommending the cost of sidewalk improvements be split equally among the involved residents and the city.

The second project, which involves the mill, overlay and miscellaneous curb, gutter and sidewalk installation on state-aid streets Fountain Street, Madison Avenue and Martin Road, was awarded to Ulland Brothers for about $544,000. This is down from an estimated cost of $655,000.

Simonsen said staff are recommending that the cost of the sidewalk improvements on Martin Road be added to the city’s state-aid expenses as the sidewalk will be used to tap into the state trail system.

Rasmussen and Murtaugh said they wanted staff to look at the safety concerns of the residence on the corner of Garden Road and Martin Road as well.

For the third project, which involves the street, sewer and water improvements on North Shore Drive, the contract was awarded to Sorensen Bros. of Albert Lea for about $350,000. Estimated costs were about $422,000.

The fourth project involves the road and curb construction on Wedgewood Road from West Ninth Street north 2,100 feet to Palmer Circle.

This contract was awarded to Ulland Brothers for $206,000. Estimated costs were about $234,000.

Murtaugh noted he was pleased that local contractors won contracts for all four projects.

 Accepted the 2008 annual audit and comprehensive annual financial report.

Rasmussen pointed out that during last week’s preagenda workshop where the reports were discussed, the auditor pointed out that the city saved about $25,000 because of conscientious, detailed work of the city staff.

 Authorized a temporary agreement with the Freeborn County Humane Society for kennel use and services of the city’s animal shelter.

The agreement will allow the Humane Society to place animals into the shelter in exchange for cleaning and maintaining the facility.

The Humane Society will be required to provide $1 million in liability insurance.

Councilor Ellen Kehr noted she thought the agreement was a great example of collaboration.

The agreement came as a result of the full-time and part-time animal control officers leaving their positions.

Had the first reading of an ordinance that would repeal an ordinance already in place in the city regarding regulating the sale of methamphetamine precursor drugs. The ordinance was passed in March 2005.

Several communities adopted a similar ordinance, which prompted the state Legislature to adopting the same statute.

The new statute pre-empts all ordinances passed before.

Authorized a resolution that acknowledges changes to the corporate structure of Charter Communications.

The city has a franchise agreement with Charter, which is now in Chapter 11 bankruptcy reorganization. The agreement states that the franchise will not be transferred without prior consent of the city.

It is a nonexclusive franchise agreement, which means another competitor could join as well.

The vote Monday does not effect the expiration date of the Charter agreement, Murtaugh said. That will come up for vote again in 2011.

Look to Wednesday’s Tribune for more coverage of the Monday meeting.