After a lengthy discussion about the role of tax-increment financing in bringing development to the city, the Albert Lea City Council approved the establishment of a new municipal development district, which is east of South Broadway Avenue and west of Margaretha Avenue bordered by the ALEDA Industrial Park.

Along with that vote, it approved the formation of Tax Increment Finance District No. 9-1, which will go toward the construction of an Albert Lea Economic Development Agency specification building.

The first action, of developing Municipal Development District No. 9, allows for the creation of TIF districts within the development in the future.

Under the newly-formed TIF District 9-1, ALEDA will construct a 62,500-square-foot industrial spec building. Site improvements for the development will come from TIF revenue generated during the next 10 years. Tax-increment financing is an economic development tool approved by the state and borrows against the future property taxes for present development.

Some say that takes away future revenue for schools and municipal services.

The decisions were met with much opposition from Albert Lean Warren Stowell, who said he has lived in the city his entire life.

Stowell said he thinks Albert Lea needs to get back to the days where industrial development was done by private enterprise, without any government involvement.

“I don’t believe the city or the county or the state should be involved in the private enterprise system,” he said.

He said he thinks TIF districts and spec buildings lead Albert Lea into a system where there’s more government control. He did not think this should be the case, he said.

Councilor Vern Rasmussen said it is important to realize that in setting up a municipal district, that does not mean it has to be used.

“It’s important to give our town the opportunity to make those pitches to businesses when they come,” Rasmussen said.

Ryan Nolander, ALEDA assistant director, said TIF districts do not take away present revenue already being paid in taxes.

“The reason we use TIF is that we have to be competitive,” he said.

The spec building planned to be built will give the development agency a move-in ready space to offer to businesses, he said. Often one of the biggest challenges the agency faces is having move-in ready space to offer to industries, whether they are industries that are already in the city or are those who are looking to move in.

Nolander said right now ALEDA, which works separate of the city, is working on two leads from the state, and both require having space. He said he believes Albert Lea would no longer be in the running for those leads if it weren’t for some of the economic development tools this state allows.

Councilor Al Brooks talked of the responsibility in providing maximum opportunities to fill the needs of the city.

Albert Lea City Manager Victoria Simonsen said there are certain standards a project must meet before a TIF district can be established. This project does meet those standards — one of which says that the creation of the district is anticipated to create employment opportunities that would not otherwise be reasonably expected through the private sector.

In other action, the City Council:

 Approved preliminary reports for several of the city’s road construction projects for this summer.

The first project is the 2009 neighborhood improvement project, which includes mill, overlay, curb replacement and sidewalk replacement of residential streets in the central part of the city.

The project is bounded on the north by Richway Drive, on the south by Fountain Lake, on the east by Bridge Avenue and on the west by Lakewood Avenue. It will include replacing sections of curb and gutter, milling the existing bituminous street, and replacing it with a 2-inch-thick layer of bituminous.

Preliminary project costs are estimated at about $626,000, with 66 percent being assessable to property owners and 34 percent being city cost.

The second project is the overlay of several of Albert Lea’s state-aid streets.

It includes sections of Fountain Street, Martin Road, Bridge Avenue and Madison Avenue. Specifically, it will include Fountain Street from Minnesota Highway 13 to First Avenue, Martin Road from Lakeview Boulevard to Richway Drive, Bridge Avenue from Fountain Street to the channel bridge, and Madison Avenue from Commercial Street to Front Street.

Preliminary project costs are estimated at about $740,000

A meeting will be held with neighboring property owners at 7:30 p.m. April 21 at City Hall.

The third project is for reconstruction of North Shore Drive, from Lakewood Boulevard to Johnson Street, which is approximately 1,185 feet.

The project will include installing a 7-foot-wide sidewalk along Fountain Lake to alleviate pedestrian concerns, along with stabilizing the lake shore.

Total estimated costs are about $501,000, with 21 percent being assessable and 79 percent being city costs. The stabilization will not be assessed.

A meeting will be held with neighboring property owners on April 15 to discuss the project. Construction would occur between June and October.

A public hearing will be held on April 27 for each of these projects.

Approved the bituminous pavement, curb and gutter installation on Wedgewood Road from West Ninth Street to what is now called Palmer Circle.

This is part of the city’s part of the development agreement with Wedgewood Cove developers.

About $400,000 has already been spent toward the project, and remaining costs are estimated about $269,000.

 Approved a watermain replacement on U.S. Highway 65 between Margaretha Avenue and Todd Avenue. There is a watermain break in this span of pipe that has not yet been able to be located because of how deep it is in the ground.

The project will be completed by the Albert Lea Utility Department and would cost $50,000 out of the city’s water fund.

The replacement will start as soon as possible.

Albert Lea City Engineer Steven Jahnke said during most of the work, city utilities workers will be working in the right of way alongside the ditch, which will not require motorists to take detours.

 Appointed three members to Albert Lea’s Charter Commission.

The members include Iris Tarvestad and Warren Amundson, who have already served one term on the commission, and Philip Kohl, who will be the new appointment.

The commission meets annually. Its members have to be approved in Freeborn County District Court.

Councilors noted the potential of all of the candidates who applied for the positions.

Approved an intent notice to annex about 148 acres of land in the Albert Lea Township, east of Chapeau Shores and west of Minnesota Highway 13.

The land, which is known as the Sunset Property, is bordered by land within the city limits.

The land will take between 30 and 60 days to be annexed.

 Authorized an agreement of fire protection services from the Albert Lea Township to supplement the city’s services.

The agreement outlines the training requirements and compensation to the township firefighters when serving within the city, along with the cost sharing of items used by the city and township fire departments.

The city has worked with the township for many years.

Approved a request from Boy Scouts of America Troop 7 to use the North Broadway Avenue parking lot on May 16 to host a Boy Scout flea market. Proceeds of the sale will go toward helping the Scouts raise money to attend a summer camp in the Black Hills.

It will be held in conjunction with the opening day of the Albert Lea Farmers Market.

Scouts in attendance during the Monday council meeting said they want to invite other troops in Albert Lea and Clarks Grove to take part in the sale as well.

The Scouts will come to the parking lot at 7 a.m. May 16, with the sale starting at 8 a.m. and going until 4 p.m. They will bring their own items to sell and will be open to other people donating items to sell, too, the Scouts said.