Development of the Freeborn National Bank building and Jacobson Apartments could include construction of a hotel.

The Albert Lea City Council approved a request Monday from Freeborn Development Group LLC to submit a proposal for development of the two buildings.

“The city requested proposals for development of the Freeborn Bank and Jacobsen buildings,” City Manager Chad Adams said. “Two responses were received. Freeborn Development LLC submitted the most complete response.”

Craig Hoium, of Freeborn Development Group, said the company hopes to develop a 30-room historic hotel. Nine extended-stay suites are planned, with the rest of the rooms a combination of king and double-queen rooms. He said officials are in discussion with the design staff of the state’s historical society.

The development group consists of a general contractor, registered architect, Hoium and consulting firm Business Plans Etc.

“If we can comply with all of their design standards, we would like to have this facility be a historic facility,” Hoium said. “We think it would be a very positive project for the entire community, the southern Minnesota area and, more importantly, our downtown.”

The resolution allows Freeborn Development Group until Aug. 23 to compile a complete proposal, and the action permitted the company to be the exclusive entity to work on a proposal for the building, “which should allow access to information and to uncover the challenges in developing the properties,” Adams said.

The action permitted a proposal to be submitted to the council for review, and the evaluation process by the council will begin once a proposal is submitted.

Second Ward Councilor Larry Baker said moving forward with the project will be exciting for the community because the developer is community-based.

Sixth Ward Councilor Al “Minnow” Brooks thanked the development group for taking on the project.

“Our last venture didn’t seem to work out very well, so I would like to thank this group for the interest in seeing what they can do with it,” he said.

This is the fourth time the city is seeking to develop the two buildings. Plans by Kansas-based developer Cohen-Esrey last year called for turning the buildings into 21 apartments on the upper floors, with The Albert Lea Art Center and The Interchange Wine & Coffee Bistro on the ground level. The project did not receive tax credits in last year’s fall grant round from the state.

In other action, the council:

• Awarded a contract for the Sunset Street reconstruction project to Willmar-based Quam Construction Co. for $1.64 million.
• Were provided an update on the splash pad project by Convention & Visitors Bureau Executive Director Susie Petersen. Construction on the site is expected to be completed in June.
• Approved a $475 donation from Edgewater Cottage Committee for a park bench in memory of David Cornick. A $1,500 check was given by the committee for LED interior lighting in the cottage.
• Waived landfill and building permit fees for the Shinefest Week of Service planned for Saturday through May 19.
• Awarded a professional services agreement for the wastewater treatment plant evaluation and permitting to Mankato-based Bolton and Menk Inc. for $75,100.
• Accepted bids for bituminous material to St. Paul-based Flint Hills Resources LP.

Look for more from Monday’s meeting in Wednesday’s Tribune.