Downtown property owners can apply for funds

Albert Lea officials announced Monday the city has been awarded a more than $526,000 grant for redevelopment downtown.

The funds, through the Minnesota Department of Employment and Economic Development’s Small Cities Development Program, would be available for qualified property owners as a low-interest loan, part of which becomes a forgivable grant after a five-year period, according to the city.

Money repaid to the city for principal and interest on the loan will be placed into a loan fund to provide assistance to additional property owners in the future. Property owners must provide matching funds for a portion of the project.

“We were very excited to hear the news about our Small Cities Development Program grant award,” said Albert Lea City Manager Chad Adams. “Our community has invested a lot in our downtown these past few years, and we are seeing great results from that private and public investment. This grant award will provide additional opportunities to continue preserving our historic buildings and further revitalizing our downtown district.”

City leaders last summer and fall visited businesses downtown to gauge interest in the program, and 28 property owners submitted letters of interest in the program.

Adams said property owners will have to submit formal applications for funding.

It is anticipated the funds will allow for numerous residential and commercial projects in buildings in the historic district.

He said some of the building owners who showed interest wanted to convert their upstairs space into rental apartments. Some buildings were vacant, and others were interested in doing more with their existing space.

The grant cannot be used for retail space, but it can be used for professional offices, he said.

The maximum amount given per commercial project will be $40,000, with a minimum owner match of 20 percent of eligible project funds. Of the remaining 80 percent, half could be provided from a five-year forgiveable loan and half could be provided from a low-interest loan.

There are different amounts avaiable for residential rental units.

The city will soon enter into a grant agreement with the state once final approvals are provided by the Department of Housing and Urban Development.

After that, Adams said the city will send out letters to the building owners who showed interest in the program previously to give them instructions on how to apply.

People could begin doing projects as early as later this summer.