A potential sale is in the works for a portion of the former Albert Lea Golf Club, most recently known as the Eagle’s Rest development.

The Albert Lea City Council on Monday approved dividing the property — which is owned by American Bank of St. Paul — into two tracts. One of the tracts, of 53 acres, is in the center of a purchase agreement between the bank and St. John’s Lutheran Home of Albert Lea. The portion is what most Albert Leans know as “the back nine,” or the northwestern part of the property.

According to a letter to the city from a counselor with Exeter Realty, on behalf of American Bank, the sale could take place before the end of the month.

Details about the selling price of the property or about the land’s potential use is not yet available.

The second tract of the property will continue to be owned by the bank until a suitable buyer can be found, the letter states.

Commercial developer Scott LaFavre surrendered the property to the bank after it went into foreclosure.

Prior to LaFavre’s ownership, it had been the home of the century-old, 18-hole Albert Lea Golf Club.

LaFavre purchased the property in May of 2006 from the golf course’s owners in Des Moines, Iowa, with plans for a new residential development. He announced plans to bulldoze the property and build a 120-lot high-end neighborhood, but no structures were ever erected and the land was never developed.

At the auction on Dec. 20, 2007, mortgagor American Bank purchased the land for a little more than $1 million in what was the only bid. After that point, LaFavre had up to a year to redeem the property back for the amount the bank purchased it, plus interest. He did not. Instead, Eagle’s Rest Development declared bankruptcy.

The bank put the land on the market.

There are three deferred special assessments against the property, two of which were assessed in 1992 and one of which was assessed in 2005.

American Bank has stated it will pay one of the outstanding assessments — for $14,000 for the water main installation on Lakeview Boulevard — at the time of the closing of the sale with St. John’s Lutheran Home.

The council, in turn, on Monday approved waiving the accrued interest on this assessment.

The remaining assessments on the property of $18,000 for the paving of Lakeview Boulevard and $14,808 for Richway Drive reconstruction will attach exclusively to the second tract.

Look to the Tribune for more as this story develops.