Guest Column by Noelle Hagen

Albert Lea Economic Development Agency is an organization dedicated to the economic development and business climate improvement of our community. There is often confusion in regards to how our organization is funded and where the money for projects comes from.

ALEDA is a self-funded organization that relies on income from rent, loan and investment income to meet its operational budget. By managing these assets well, the organization has capital to fund the operational budget as well as invest in projects that assist local businesses through loans or other projects.

The organization does not rely on the city of Albert Lea nor Freeborn County for funding their operation. And while ALEDA has the authority to levy a tax, the organization does not use this authority. This makes ALEDA a unique model compared to other cities and counties, especially those in Greater Minnesota. In addition to not being a burden on the taxpayers, ALEDA also pays property taxes on all of its building and properties owned. In 2016, ALEDA properties paid over $250,000 in property taxes and assessments.

The benefit of ALEDA being self-funded is that staff can work on projects without being a burden to the taxpayers. For example, the development of the ALEDA Industrial Park was paid for in cash by ALEDA and was not a burden on the local taxpayer. This project included replacing the existing storm sewer along South Broadway and extending the infrastructure to the lots in the park for the land to be ready for development. A 62,500 square foot spec building was also added along Margaretha in the ALEDA Industrial Park and is currently leased to a local company for warehousing space.  In many other communities the city and/or the taxpayers directly pay for projects such as these.

Besides creating and expanding industrial parks, ALEDA also assists businesses with gap financing loans. In recent years, ALEDA has assisted over two dozen businesses with over $1.2 million in gap financing loans to expand, change ownership or start a new business. These funds come from the USDA, state or other sources designated for this purpose.

Please stay tuned for updates throughout the year on what we are doing to fulfill our mission, “To provide and promote services and resources to retain, expand, create and attract businesses, increase tax base and create quality employment opportunities in Freeborn County.”

For more information about ALEDA, our programs, progress and initiatives visit us online at www.growalbertlea.com or stop by our office at 2610 YH Hanson Ave., Albert Lea.

Noelle Hagen is the small business and marketing manager at the Albert Lea Economic Development Agency.