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Developer requests 26 years of tax-increment financing

 

The Albert Lea City Council on Monday called a public hearing for June 22 regarding a request for tax-increment financing for a potential apartment complex to be constructed on a portion of the Blazing Star Landing.

Finance Director Kristi Brutlag said the city received a request for tax-increment financing from Unique Opportunities LLC. for a 48-unit apartment building.

The developer cited a financial gap in the project and is requesting 26 years of tax increment from the city, totaling $600,000.

Other details about the project have not yet been made public.

Tax-increment financing is a public financing tool used by municipalities to promote economic development, redevelopment and housing in areas it otherwise would not occur, the state auditor’s website states. Through tax-increment financing, the municipality diverts the property taxes from the new development for a set number of years to pay for development expenses. 

The tool was used in recent years for projects such as St. John’s Lutheran Community on Fountain Lake and the expansion of Mrs. Gerry’s kitchen, among others.

Look to the Tribune for more information about the proposed project as it becomes available.

In other action, the council:

• Designated Assistant City Manager Jerry Gabrielatos as interim city manager after accepting the resignation of City Manager David Todd at the May 26 meeting.

The council did not discuss a pay adjustment, and Mayor Vern Rasmussen Jr. said that would likely happen at the next meeting.

Gabrielatos has worked as assistant city manager in Albert Lea since 2015. He served as interim city manager previously following the resignation of former City Manager Chad Adams until Todd was hired in 2019.

The action will allow Todd to complete needed projects in his remaining time and assure continuity of services, Gabrielatos said.

• Designated Assembly of God Church, 1540 S. Shore Drive, as the official polling place for the 6th Ward and the Edgewater Bay pavilion, 1940 Edgewater Drive, as the official polling place for the 1st Ward.

Gabrielatos said due to the COVID-19 pandemic, the state passed a bill stating a governing body of a municipality or county must only use a school as a polling place when no other public or private location is available as a polling place.

The 6th Ward’s former polling place was at Halverson Elementary School, and the 1st Ward’s location was at Brookside Education Center.

• Approved a two-year contract with the Minnesota Public Employees Association representing Albert Lea’s police officers and detectives. The contract includes a 2% general wage adjustment retroactive to Jan. 1 and a 3% adjustment starting July 1.

Employees in 2021 will be placed on the newly revised wage scale that was completed as part of the compensation and classification study and will be eligible for step increases.

• Approved a variance for constructing the new central water tower at an elevation of 1,430 feet off of Newton Avenue.

The variance was recommended by the Board of Appeals May 27.