During the Thursday meeting, the council also approved a request from the owners of the Tiger Hills residential development asking that the city not draw on the current letter of credit to make their payment that was due Nov. 30.

The development agreement outlines that the owners will pay a minimum of four lot assessments per year in phase one of the project; however, because of recent changes in the housing market nationally and locally the developers were unable to make the full payment, City Manager Victoria Simonsen said.

Despite this, out of the $1.3 million that the developers borrowed from the city, they have already repaid 20 percent of that debt.

Councilor George Marin asked that the council vote to work out a payment arrangement for that hardship with the developers and then keep the remaining development agreement in place.

&8220;Since I&8217;ve been on the council for seven years now, the city of Albert Lea has had a history of working with people in the area of economic development,&8221; Marin said.

He asked that the city continue to support economic development.

&8220;They have made an attempt to pay back this loan,&8221; Rasmussen also pointed out. &8220;I think it&8217;s something overtime that can be resolved.&8221;

In other action, the City Council:

– Authorized a long-term lease agreement with Freeborn County for use of the Law Enforcement Center by the Albert Lea Police Department.

The agreement outlines that the city will pay the county $270,000 each year for five years for the use of the building over the next 50 years.

– Adopted a compensation and classification scale for city employees, which is required by the Local Government Pay Equity Act.

The scale would establish compensation relationships between classes of employees and eliminate any sex-based wage disparities in public employment.

It will be implemented in the first pay period of January 2008.

– Authorized participation in a class action lawsuit, in conjunction with the Coalition of Greater Minnesota Cities, against the Minnesota Pollution Control Agency.

The MPCA is attempting to establish a one milligram per liter phosphorous limit to all new or expanding wastewater treatment facilities.

If this rule were implemented in Albert Lea, it would have extreme financial effects on the city.

In 2001, it was estimated that the city would have to spend about $5 million to construct a phosphorous reduction system that would cost $550,000 annually to maintain. There would also be a 50 percent increase in some costs involved with the phosphorous removal process.

Because of this, city staff recommended supporting the lawsuit with a contribution of at least $1,000.

– Voted to authorize an amendment of the Housing and Redevelopment Authority by-laws regarding board term ending dates.

Included in the amendment was the change in location of the meetings to the HRA Community Conference Room at Shady Oaks Apartments. Also included was that terms of office shall be for five years, based on a calendar year.

– Voted to authorize an amendment of the Albert Lea Port Authority by-laws.

The amendment includes the location of meetings to be held at the Business Development Center, the length of term and the compensation of commissioners.

– Approved the 2008 fee schedule for programs and services offered by the city.

Some of the changes in the schedule include changes to parks and recreation fees, changes to landfill fees and changes in building permits, among several others.

To view the full fee schedule visit the city clerk&8217;s office.