A possible deal that would allow the City of Albert Lea to purchase the Hansen Building, located on William Street in downtown Albert Lea, may make development of two other properties easier &045; but it would also mean relocating tenants of the apartments and offices in the building.

The building would be demolished, according to development plans, and along with space provided in an adjacent parking lot, would provide room for parking and renovation of the Freeborn Bank &045; aka the &uot;Vault&uot; &045; and Medical Arts buildings, according to city officials, as well as make redevelopment of the whole area east of Broadway in the downtown tax-increment financing (TIF) district easier. The city has been trying to buy the property for many years.

According to Tim Miller, who manages the Hansen Building for Freeborn Holding Company, which owns the property, 11 tenants live in apartments in the building and three businesses lease space. None of them have been informed of the pending sale and possible demolition of their homes, Miller said, who also said he had previously been told the building was not for sale.

All of the tenants still in the building when the city took possession would have to be relocated at city expense before the building could be demolished, said Paul Sparks, city manager. If comparable accommodations cannot be found at the same rent, the city has to pay the difference for a period of time.

If the deal goes through, the city will pay $200,000 for the building and parking lot, $50,000 of which would be given back to the city as a donation. The city would pay $10,000 at closing and finance the rest at 7 percent, with monthly payments for five years followed by a balloon payment of the outstanding balance. Along with tenant relocation, the city assumes liability for demolition costs and cleanup of any environmental hazards. Part of the deal would also allow the current owner the right to have up to 15 days before demolition occurs to salvage material from the building.

The council voted to accept the offer to purchase the property at the terms asked by the current owner.