Albert Lea officials are again seeking proposals for the redevelopment of the Freeborn National Bank and Jacobson Apartment buildings.

The two buildings, on the southeast corner of Broadway and East William Street, have been under city ownership since 1998.

Albert Lea City Manager Chad Adams said after two years of commitment to Kansas-based developer Cohen-Esrey, city leaders thought they should determine if there is any other interest for redevelopment.

Cohen-Esrey had planned to turn the buildings into 21 apartments on the upper floors with the Albert Lea Art Center and The Interchange Wine & Coffee Bistro on the ground level. The community would also be able to rent out space for events.

The developer had asked for about $379,000 in housing tax credits and deferred loans for $457,000 from the Minnesota Housing Finance Agency. It would also apply for historic tax credits, and the whole project was estimated to cost over $4 million. The project proposal hinged on the awarding of the housing credits to ease the cost of development.

The city and Cohen-Esrey found out in October the project was not awarded the tax credits for a second time.

Adams said Cohen-Esrey is still interested in the project and will likely resubmit a proposal.

Applications for the next round of tax credits need to be submitted by mid-June, with a decision on an exclusive agreement with a developer likely to come in early or mid-April if the developer wants to apply for tax credits.

“The city remains very optimistic about either securing another agreement with Cohen-Esrey or another developer for redevelopment of the Freeborn Bank and Jacobson buildings,” Adams said.

He said the Albert Lea Art Center remains a viable tenant for the main floor of the Freeborn National Bank building but will need to work with prospective developers to secure the use of that floor.

Built in 1922, the Freeborn National Bank was originally constructed as a bank on the first floor and medical and professional offices in the upper floors. The Jacobson’s first two floors were constructed in 1888, and the two upper floors were added in 1923. The buildings share a staircase and elevator.

In 2007, the city spent about $2 million to restore the exterior of the bank building, including tuckpointing, a new roof, a skylight and new water, sewer and electrical service to the buildings, among other improvements. Inside, crews have cleaned out asbestos, filled in the basement and taken out a majority of the plumbing.

A developer would need to replace electrical, plumbing and heating and air conditioning, among other improvements.

According to the city  request for proposals, there is about 22,000 developable square footage in the Freeborn National Bank building and 6,000 in the Jacobson building, not including the first level occupied by The Interchange Wine & Coffee Bistro.

Developers have until March 4 to submit questions about the buildings to the city, with proposals due March 11. The selection of a developer is slated for April 11.

Information about the city’s request for proposals can be found at http://www.cityofalbertlea.org/freeborn-bank-building-rfp.