The Albert Lea Housing and Redevelopment Authority under the approval of the Albert Lea City Council is submitting its third Small Cities Development Grant application to the state for owner-occupied rehabilitation funding.

If approved, the grant — for just over $500,000 — would cover funding for improvement projects on 22 additional homes in a new target area in the city.

The HRA has already been awarded $740,000 in grants through the Small Cities Development Program in two previous grant rounds, said Jon Ford, local HRA executive director. This money has been used for improvements to 35 homes in the southeastern and west central parts of the city. Those improvements include safety and health improvements, lead-based paint abatement, energy improvements and accessibility improvements.

“The first few years have been a very good success,” Ford said.

He noted he is confident about the new application and looks forward to moving forward with more houses. He expected to hear back by January.

The target areas would be in two new areas in town, including the southwest part of town and a smaller area in the northeast part of town.

The application also requests some flexibility to use some of the funds to step outside of this target area for homeowners that were not covered by insurance or other relief after the June 17 tornadoes.

Ford said the Minnesota Department of Employment and Economic Development — which awards the grants — recently conducted an annual of the grant projects already in place without any problems.

“This money has gone right to where it should go to the families that are part of the foundation of the community,” he said.

He also noted that Semcac is excited about partnering with the city and HRA to provide some additional assistance for the homeowners involved.

Ford described the change to some of the neighborhoods where these grant funds have been used as “dramatic.”

They are having a domino effect in some ways. Neighbors of the homeowners who have benefited from the assistance are also making improvements to their homes

The council voted to submit the grant at its Monday meeting.

In other action, the City Council:

Authorized a two-party collaborative development process between the city and Albert Lea Medical Center regarding a development in downtown Albert Lea in the Freeborn National Bank, Jacobson Apartments and Stadheim buildings.

Though the development process is in the preliminary stages, council members seemed pleased the project had advanced to this point.

ALMC will present a similar resolution to its board and to a board at the Mayo Clinic in Rochester for vote.

Fifth Ward Councilor Larry Anderson said the project is a good example of how government and a private sector business can collaborate to get something done.

Voted to amend the contract with architect Pat Waddick for the development of plans between the city and Albert Lea Medical center in the downtown.

Waddick’s initial contract for this project was $7,000, and Waddick has already exceeded that contract by $600.

The new contract approves an additional $10,000 for his expenses.

Adopted downtown parking maintenance district assessments from August 2009 through the end of July 2010.

Total assessments were just over $40,000.

Approved contracts with the Albert Lea Figure Skating Club and the Albert Lea Hockey Association for use of City Arena for the upcoming season.

According to the contracts, both entities will pay $130 per hour for ice rental during the season.

The Hockey Association will pay additional fees for practice and skill night with the Squirt in-house program. They will also pay $285 per month for the use of the concession area in the arena.

Voted to apply the fish toxicant rotenone to the ponds and ditches that feed into Lake Chapeau.

Set the date to receive public input on the proposed 2011 budget.

It will at 7 p.m. Dec. 13 at City Hall.