Getting your Trinity Audio player ready...

The Albert Lea City Council on Monday approved development agreements with two developers looking to build single family homes in the city. 

The agreements will take some of the open city lots and gift the properties to the developers at a value of $4,000 each and provide other incentives for water and sewer connection and design. 

The first agreement, with Turning Point, calls for two to three single family units on the corner of Belmont Street and Spark Avenue in the first phase, followed by the construction of six single family homes at the following addresses: 722 Washington Ave., 717 Madison Ave., 815 Madison Ave., 806 Jefferson Ave., 810 Jefferson Ave. and 710 Madison Ave. 

Under the agreement, City Manager Ian Rigg said the city will provide up to $5,000 in water and sewer connection costs per lot, as well as $5,000 in a rebate for building to a certain design standard. 

The second agreement, with GFY Custom Crafts, includes a similar agreement and calls for three to six single family homes on lots at the following addresses: 1509 Fountain St., 1505 Fountain St., 1501 Fountain St., 205 Seventh Ave., 121 Seventh Ave., and 119 Seventh Ave. 

Rigg said the city will provide up to $5,000 in water and sewer connection costs per lot, as well as $5,000 in a rebate for building to a certain design standard. 

The homes with GFY Custom Crafts will be for modular homes and will be required to meet the same foundation elevation requirements as with the first developer. When complete, the homes will be listed at or below $305,000. 

First Ward Councilor Rachel Christensen thanked staff for working on the developments and taking care of some of the empty lots to bring housing to the community. 

Mayor Rich Murray described the development as a “good project” and said he looked forward to seeing additional housing go up in the city. 

Rigg said presently the city is spending time and money to mow the grass at the properties, and there are no taxes being paid on any of the lots. Ultimately, the end goal, he said, would be what he described as workforce or average median income housing. 

Second Ward Councilor Larry Baker thanked Rigg for his work on the development. He noted the lots have sat empty for quite some time now and it will be nice to have them in use. 

If the developers fail to meet the terms of their agreements, the city will assess $4,000 per lot, which must be paid back in a year.