The Albert Lea City Council on Monday approved a new tax-abatement policy intended to help professional service companies to move or expand in the city.

City Manager Chad Adams said examples of professional service companies are dentist and medical offices and financial services companies, to name a few.

The abatement would be available for up to five years on a sliding scale.

“We’re really excited about another tool in our chest to hopefully give us some successes in the future,” said Albert Lea Mayor Vern Rasmussen.

Under tax abatement, a business pays its taxes and then receives a rebate back from the city for a portion, Adams said. The policy approved Monday calls for a 90 percent abatement — or return — during the first year, an 80 percent abatement in the second year, 70 percent in the third, 60 percent in the fourth and 50 percent in the fifth.

In the sixth year, the business would return to the tax roll 100 percent.

Adams said to qualify for tax abatement, a business has to have a minimum capital investment of $250,000 within the first year of the project, create a minimum of five new full-time jobs and pay wages equal to at least 110 percent of the federal poverty level for a family of four.

Retail businesses are not eligible for the abatement.

Third Ward Councilor George Marin commended city staff and the council for taking a new approach to bring business to the community.

“We are able to go after the type of business that we want to see in our community,” Marin said.

In other action, the City Council:

• Approved an agreement with the Albert Lea Housing and Redevelopment Authority to waive the building permit and landfill fees for the 2014 Shinefest Rock the Block initiative.

HRA Executive Director Jon Ford said this will be the third year for Rock the Block, which incorporates dozens of volunteers and donations to fix up homes of qualify residents.

Ford said they plan to renovate eight houses during the week — four of which have more in-depth work.

“The project has gone very well,” Ford said. “I think it has had a good impact in the community,” he said.

He noted he has never seen such a successful collaboration as he has with this project.

“This has been a beautiful opportunity of unity and harmony in our community,” Marin said.

• Authorized the mayor and city manager to enter into a lease agreement with the National Vitality Center to use a portion of the Jacobson Apartments building. The Vitality Center leadership board had previously only used the building for monthly meetings.

A director and community engagement lead for the Blue Zones Project will have offices in the rear portion of the first floor.

• Heard brief remarks from Adams about two potential market rate housing companies in communication with the city.

The first proposal would call for an initial 24 units on East 11th Street near the Jobs Industrial Park with the potential to grow to 60 units.

“As the market dictates, we will build more,” Adams said.

The second would call for about eight units at first and 32 units total.

• Approved the vacation of a drainage and utility easement at 907 Ekko Ave.

• Authorized a funds transfer to establish new special revenue funds for police and fire pension funds.

• Accepted financial donations to the National Vitality Center and to the Albert Lea Fire Department.

• Authorized the acquisition of several tax-forfeited properties. The properties are at the following addresses: 221 E. Main St., 715 S. Washington Ave., 717 Madison Ave., 814 Jefferson Ave., 911 Jefferson Ave., 207 E. Fourth St., 1344 S.E. Broadway, 1329 S.E. Broadway and 1437 Frank Ave.