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The city of Albert Lea and its economic development partners launched a challenge last week to incentivize development of the former Hobby Shop building on Broadway.

The challenge offers $100,000 in grant funding — $50,000 from the Albert Lea Economic Development Agency to jumpstart the business and $50,000 from the city for things such as roof repair and facade improvement — as well as other incentives for a business owner or developer who could bring a retail store or restaurant to the space.

The city acquired the building, at 132 S. Broadway, last summer through tax-forfeiture and has worked to stabilize the property before returning it to the private market. It was originally constructed in 1880.

The city in 2018 invested funds into a new roof on the rear of the building, as well as removing some water-damaged items.

In 2022, it abated asbestos pipe insulation and floor tile, cleared out all of the electronic waste and other debris left behind from a previous owner and installed a new electrical service panel. In 2023, the floor system in the west addition was replaced.

“This project is one of the many different types of effort we have been moving forward with as a collective group,” said Albert Lea City Manager Ian Rigg in a press release. “All those involved share the same goal of creating a vibrant community.”

In addition to the grants, there are also opportunities for low-interest loans through Freeborn-Mower Electric Cooperative, the city and the Albert Lea Economic Development Agency. Other incentives include a spotlight advertisement in the Community Guide put out by the Albert Lea Convention and Visitors Bureau, a five-year membership to the Albert Lea-Freeborn County Chamber of Commerce, a new facade drawing of the building and $1,000 toward marketing the business through the Albert Lea Historic Downtown Main Street Program.

The asking price for the building is $69,000, which is set at the cost of the recent improvements and hazard mitigations. The city will negotiate the almost $144,000 in past assessments and taxes dependent on the project.

A selection committee made up of staff from the city and its partners will review the proposals to determine which proposal most closely meets the goals and provides the highest value for the property. It will consider things such as strength of the business plan, whether the business will attract people to the downtown, the short-and long-term tax impact, developer history and creation or maintenance of jobs, among others.

Recommendations by the committee will be given to the Albert Lea City Council for the ultimate decision.

People interested in finding out more about the project can visit www.alrebuild.com for the full request for proposals.

Proposals will be accepted through May 19.

If people have questions about the project, they should reach out to ALEDA Executive Director at phillipjohnson@growalbertlea.com or 507-373-3930.