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The Albert Lea City Council on Monday unanimously approved a purchase agreement with a group of local investors collaborating with a Northfield firm for four city-owned downtown properties on the 300 block of South Broadway.

The agreement, for $300,000, states the city will essentially take the property off the market as it works with the group, known as Albert Lea Real Estate Fund LP, for a development agreement for properties at 310, 314, 324 and 332 S. Broadway. The group is a partnership between a team of local investors, a firm called REVocity and the Albert Lea Economic Development Agency.

Two of the properties, at 324 and 332 S. Broadway, are presently open lots where the city last summer paid to demolish the buildings that were in disrepair. The building at 314 S. Broadway, known as the Vitality Center, houses a handful of nonprofits, and the building at 310 S. Broadway, known as the former Woodgrains building, has not been in use for many years.

The group earlier this year bought the corner building at 302 S. Broadway, presently occupied by Midwest Antiques of Albert Lea, and City Manager Ian Rigg said the development group is also looking to secure the remaining building on the block — the former Broadway Theatre building — at 338 S. Broadway.

Rigg said the proposed plans are to rehab the corner building that houses the antique store and then to construct a new four-story building designed to meet historical preservation standards that will have retail or commercial businesses on the ground level with apartments on the upper levels, Rigg said. The current estimate includes 27 units, though there could be more depending on whether they will be able to work with the neighboring property.

The purchase agreement states during a due diligence period of 355 days, the parties will work in good faith to reach an agreement on the development agreement, which will provide terms and conditions as to whether the buildings at 310 and 314 Broadway will be demolished and if so who will complete and pay for the cost of the demolition.

Rigg said another reason for the 355 days until the closing on the property would be to look at potential grant funding and other funding opportunities and to allow more time for the group to acquire the neighboring property.

Background information given at the meeting states investors would like the city to participate in demolition, stabilization or other repairs on the 300 block as part of a development agreement to be determined later, and the city is establishing a tax-increment finance district on the block.

Staff will also make applications to the Minnesota Department of Employment and Economic Development for workforce housing.

Third Ward Councilor Jason Howland said he remembers talking about the block a few years ago and how it would be nice to have a retail or commercial space on the first floor on the block with housing above. After that, the crumbling of the buildings at 324 and 332 S. Broadway essentially forced the city’s hand at demolishing those buildings for safety.

“To have now somebody step up and have good plans for this space, I think it’s just a real positive thing,” Howland said. “I think we’re very fortunate to have this group come forward with this proposal, and I think it’s going to be a great addition to the downtown.”

Second Ward Councilor Larry Bakker said nine or 10 years ago the council identified the block as an area it wanted to see redeveloped, and he said it was nice to see the issue come full circle.

“Let’s just keep positive thoughts in the air because there are a lot of possibilities in this community here in the next three or four years,” Baker said.

Mayor Rich Murray said the block has also been an important one for him the last few years because of how run-down and broken-down it was.

“I mentioned more than once, wouldn’t it be wonderful if we could do something with that 300 block,” Murray said.

That is now happening, he said, also crediting the private investment.

He added he thinks the project will bring more life to the downtown with three or four more stores that will be able to open, and he said he thinks people will be happy with the development once it’s complete.

He wished the group good luck and said he hopes it is successful.

Look to the weekend edition for more details about the project and the group involved.