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The Albert Lea City Council on Monday approved a second extension for the new Sky Flats Apartments being built at the former Marketplace Foods building at Skyline Plaza.

City Manager Ian Rigg said the owners, Northwest Development Group LLC, out of Mankato, believe they are only a year behind schedule and the project should be substantially completed by the end of December. However, city staff is recommending to extend the completion date to March 31 to provide what he described as a little bit of “breathing room.”

The city entered into its first agreement with the development group in June 15, 2021, for redevelopment of the property by Dec. 31, 2022. In April the council approved an amendment extending that date through the end of August.

Rigg said contractors have been making significant movement on the building — more progress in the last two months than the previous six months.

“If I didn’t have the confidence they were moving forward, I would not be bringing this up,” the city manager said, noting the city would instead be looking at other actions.

The complex will provide 100% market rate apartments.

In other action, the council:

• Approved submitting an application for a Contamination Cleanup Grant through the Minnesota Department of Employment and Economic Development for assessing and cleaning up contamination on the northwest corner of the Blazing Star Landing at Garfield and Main Street, of which the city currently has an offer to purchase.

The total cleanup is expected to cost about $650,000, and the grant would cover $150,000.

City Engineer Steven Jahnke said the city will find out if funding is approved in late December or early January and capping could take place in June.

Rigg said capping the contamination will be implemented in this portion of the property as opposed to digging, and Jahnke noted to dig it out would be over $2 million.

• Accepted a bid for $46,000 from Hartung Koatings out of Hudson, Wisconsin, for repairing the retaining wall and railing near the new city water tower. The company will patch the cracked and damaged parts of the wall and paint it and then repair and paint the existing railing.

A second bid was also received by Larson Contracting of Lake Mills for $about $82,900.

• Approved tax abatement for a new single family home at 1200 Wedgewood Road.