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In response to a need for more housing for employees of Albert Lea Select Foods, the Albert Lea City Council on Monday approved an untraditional request to allow the company to convert a building within an industrial district into a temporary place to house more employees.

City Manager Ian Rigg said traditional residential uses such as dwellings, apartments and lodging housing are not allowed within the I-2 Industrial District, but because of the temporary nature of the request, state statute allows interim use permits as long as a framework for the land use is established.

Rigg said the Albert Lea Planning Commission reviewed the request and found that the interim use permit for residential conversion housing would alleviate housing shortages that have impacted the company’s ability to attract and retain employees. The project would not impact nearby properties, and the construction would be 100% within the existing structure.

No additional public costs are expected, as utilities, access roads and drainage are already in place.

Rigg said the building, at 1212 Sykes St., would house eight to 10 employees, and the permit would only be for two years, at which time the company would have to come back to the city and reapply.

As part of the permit, the Planning Commission recommended the property also adhere to residential noise ordinances and have trash enclosed in a three-yard dumpster with regular pick-up. No outdoor merchandise display or sales will be allowed, along with outdoor storage of construction equipment and materials.

Albert Lea Mayor Rich Murray said while he wasn’t extremely enthralled with the idea of allowing the interim use permit, he recognized the problems employers are having with finding places for their employes.

“I want to emphasize the word temporary solution and I want to start working on something else starting tomorrow,” he said.

Rigg said the project is an example of how city staff work hard to try to find creative solutions or companies.

In other action, the council:

• Approved the sale of about $2.65 million in general obligation bonds to finance the city’s 2023 street projects and bleacher improvements at City Arena.

Projects to be paid for include the reconstruction of Fifth Street and Frank Hall Drive; the state-aid overlay project; the resurfacing of the Blazing Star Trail, Cedar Avenue and Eddie Cochran Street; and the parking lots at the city pool and Bancroft Park.

The bonds will be paid over 10 years at 3.22% true interest.

In addition to the $2.455 million needed to finance the projects, the bid also included an additional $192,000, which the city will retain and use for other similar projects within the street and utilities departments. Rigg said there had been some recent street projects that came in higher when completed, including the Main Street project last year.

Rebecca Kurtz with Ehlers & Associates, who handled the sale for the city, said she was pleased with the results. The city received seven bids.

She said she had estimated true interest would have been closer to 3.5%. Last year the city’s bonds had an interest of 3%, and in 2020 the city borrowed at a rate of 0.9% interest.

She said Standard & Poor’s reaffirmed the city’s AA- rating for new and existing debt because of the city’s strong financial management and practices, its strong liquidity and reserves and strengthening economic metrics in the city.

• Approved the first reading of an amendment that would allow buildings within the I-1 Limited Industrial District to be up to 60 feet tall instead of 40 based on conversations with a proposed developer and changing trends in industrial real estate.

Background information provided by the city stated while some neighboring cities had restrictions to allow their industrial buildings to be 40 to 50 feet in height, others had no height restrictions at all.

• Approved a Small Cities Development Program forgivable loan for renovation of 404-406 Vine Ave.

The owner, Lanier Pratt of Landmark Apartments of Albert Lea, applied for the funds to install a new roof, siding, soffit, fascia, gutters and downspouts.

The loan agreement will be for up to $25,000 — up to $12,500 per unit — that will be forgivable after five years as long as the property isn’t sold or transferred before the end of that period.