Oct. 10 – Leaders from the City of Albert Lea and the Albert Lea Economic Development Agency will be the first to tell you about the critical importance of bringing more housing to the community.
“We know from our conversations with employers that housing is one of the most important issues here,” said Albert Lea Mayor Rich Murray. “That seems to be the most important factor to prevent a few employers from attracting people to the city.”
And if the two entities can help employers, that will in turn impact economic activity in the community and bring more development, Murray said.
With such high importance, it’s no wonder the issue is often a topic of discussion at most local city council and economic development meetings, and something the two entities spend much of their time on.
Murray said the city would like to see 250 to 400 new units in the community in the coming years.
Albert Lea City Manager Ian Rigg said 100 to 200 units are likely needed immediately, with at least 50 more added each year due to other aging housing developments.
As the community adds more new housing, banks will likely support future housing projects from other developers, and it will be easier to keep the momentum going.
Before Unique Opportunities LLC developed the Front Street Apartments, it had likely been more than a decade since any new housing had come into the community, said Phillip Johnson, executive director of ALEDA. Because there was no recent development, there were no comparable developments for lenders and developers – which is not good for recruiting new development.
Now that some other developments have taken place – Skye Flats at Skyline Plaza added 50 units and the Ramsey Apartments added 12 in addition to Unique’s 48 units – the guys expect 2025 to develop even further, especially with interest rates likely to rise as well will decline.
Several projects are already in progress.
Rigg said the city and ALEDA are currently talking to eight different developers focused on housing. These include proposals not only for apartments, but also for other housing.
Unique Opportunities wants to build another 96 units in a second phase of its Front Street Apartments. The project was put on hold due to inflation and economic challenges, but Rigg said he is hopeful the project will move forward soon.
The city is also working with a developer called Tapestry Companies that could bring 60 new low- to moderate-income apartments to Blazing Star Landing. The company is awaiting the results of an application to Minnesota Housing for low-income housing tax credits for the project.
Rigg said if the tax credits are approved, cleanup work at the site could begin in the spring. The apartments would range in size from one to four bedrooms, and if that project goes well, they could also look at offering market-rate apartments, he said.
Johnson said that despite what some people think, affordable units are just as important as market rate units, and the community needs to add all types of units – not just affordable units, but also senior and market rate units.
A separate project also proposes 62 units for the 300 block of South Broadway, and there are two additional groups that could yield a total of 200 units that have not yet been publicly discussed, Johnson said.
With how many projects the city and ALEDA have in the works, Murray said he feels good about where the city will be in terms of housing in the coming years.
“I don’t know that we’ve had this much activity on the housing side for many years, so this is exciting,” he said. “This is what the community needs. This is what our employers need. This is how we get more people moving into the community – more people living here, going to stores, buying things.”
If all or even some projects become reality, this will represent a major change compared to the low vacancy rate of recent years. Johnson said the city only has a vacancy rate of about 1.5%, with 3% considered in crisis requiring development and 5% considered healthy.
“It’s a very, very long process, but there is a lot of potential for the future,” he said.
Rigg said the city and ALEDA will listen to anyone who has ideas about bringing additional housing to the community.
“We are the ones trying to break down barriers, not put them up,” he said.
In addition to the need for new homes, work will also have to be done on the current housing stock in the future.
While the city itself can’t fund all the renovations that need to happen, it could make it easier to apply for grants that could help people, Murray said, noting that even $20,000 or $30,000 would help most people with larger improvements, such as a roof or siding and help keep the homes on the tax rolls for many years to come.
He is optimistic about the efforts being made to create new housing and economic development and emphasized the importance of also helping current businesses grow and perform better.
“To grow this community, we need some new businesses as well as our current businesses to grow,” he said.
He said as more jobs and housing are developed, this will in turn lead to more retail and more activity in the community. While he said he thinks the community is doing the right thing by doing things for residents right now, they should always continue to look at new options for everyone.
