Negotiations with a proposed developer for the Freeborn National Bank and Jacobson Apartments buildings are moving ahead, according to Albert Lea officials on Monday.

Developer Cohen-Esrey of Overland Park, Kan., is slated to unveil the proposed use and plans for the project on May 13 during an open house at the buildings, on the corner of Broadway and William Street, said City Manager Chad Adams.

The following Tuesday, May 20, the Albert Lea Planning Commission will consider whether that proposed use is consistent with the city’s comprehensive plan, and then, a week later, there will be a public hearing before the Albert Lea City Council about the potential sale of the building.

“The conversation is going very well with the developer,” Adams said.

Initial plans call for a mixed-use development, including residential apartments on the upper three floors. Once the sale of the building is complete, Cohen-Esrey can apply for various grants ahead of the start of construction.

If all goes according to schedule, the City Council and Cohen-Esrey could have a final development agreement before the end of the year, with construction to begin in January or February 2015. The buildings could potentially open in September or October 2015.

The Freeborn National Bank was built in 1922. It was originally constructed as a bank on the first floor and medical and professional offices in the upper floors. The Jacobson’s first two floors were constructed in 1888, and the two upper floors were added in 1923. The buildings share a staircase and elevator.

The two buildings have been under city ownership since 1998.

In 2007, the city spent about $2 million to restore the exterior of the Bank Building, including tuckpointing, a new roof, a skylight and new water, sewer and electrical service to the buildings, among other improvements. Inside, crews have cleaned out asbestos, filled in the basement and taken out a majority of the plumbing.

A developer would need to replace electrical, plumbing, heating and air conditioning, among other improvements.

At one point, city officials estimated renovations would cost another $4 million to $6 million.

Adams said there is a likelihood the council may go into closed session during the May 12 meeting to discuss the project.

Look to the Tribune’s Wednesday edition for more about the Monday council meeting.