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The Albert Lea City Council on Monday approved a $200,000 loan with MercyOne North Iowa Medical Center through the city’s state economic development revolving loan fund.

The fund is intended to create and retain good jobs, leverage private investment and increase local tax base, Albert Lea City Manager Ian Rigg said.

Of the total amount, $150,000 will be a traditional loan for a term of seven years at 3% interest.

The remaining $50,000 will be a forgivable loan if five jobs are created and retained through April 15, 2026. If the jobs are not created and retained, that part of the loan will also need to be paid in full.

The loan comes as MercyOne and the Albert Lea Health Care Coalition have partnered to open a new clinic at Northbridge Mall in the space formerly occupied by Herberger’s.

The first phase of the clinic is slated to open in July and will include primary care, specialists and mobile imaging. Future phases include an imaging center and ambulatory surgery center, and potentially other services dependent on patient needs and provider capability. 

Albert Lea Mayor Very Rasmussen Jr. and 3rd Ward Councilor Jason Howland abstained from the vote per their employment with Mayo Clinic Health System.