Council declares no public use for portion of Blazing Star Landing as city works toward sale of property

Published 8:38 pm Monday, February 12, 2024

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The Albert Lea City Council took another step closer Monday to the sale of a four-acre portion of the Blazing Star Landing on the corner of Garfield Avenue and Main Street.

The council vote signifies there is no public purpose for the property and that it would serve the public better as a developed lot that is privately owned.

The city has an offer for the purchase and development of the property into a convenience store with multiple filling pumps and a car wash. The name of the proposed developer has not yet been released.

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According to the city, the store would be 9,100 square feet and would create or retain 19 jobs. The company looking to build at the site would leverage $8.7 million in private investment.

City Manager Ian Rigg said remediation of soils would have to occur on the property before development begins, likely by this summer, with a majority of infrastructure being laid in the fall. Development could be finished by spring of 2025.

The site previously was the location of a meat-packing facility for almost 100 years. The Farmland Foods plant burned down in 2001, and the Blazing Star area has remained mostly vacant for decades due to soil contamination and related remediation costs.

Rigg said the city continues to explore grants for soil remediation for the property and is considering other housing and commercial projects for the remainder of the land.

The Minnesota Department of Employment and Economic Development in January announced the city was awarded $130,000 for a contamination cleanup grant for the corner portion of the property.

In other action, the council:

• Approved changes in the city’s ordinance related to community dock permits to reflect changes ini the insurance industry. The ordinance previously required dock permit holders to name the city as an additional insured party on their liability insurance, but many insurance companies are no longer doing this.

With the changes, dock permit holders would still need to provide proof of liability insurance.

• Approved a Small Cities Development Program local income plan forgivable loan to Lantis Holdings LLC to install siding, windows, soffit, fascia, gutters, a garage floor, garage doors, an entry door, lighting, an  HVAC system and insulation at 213 E. Main St.

The agreement is for a maximum amount of $25,000 (or up to $12,500 per unit), which is forgivable after five years if the property isn’t sold before the end of the period.

• Amended a grant application previously submitted with DEED for work at the Blazing Star Landing. The amendment clarifies the city’s commitment to a local match should the grant be approved. It also signifies that the city will pay back the grant in the event the project does not come to fruition in five years.

• Authorized city staff to apply for federal funds for the bituminous mill and overlay of Blake Avenue as well as new sidewalk from East Main Street to U.S. Highway 65.

• Accepted the feasibility report and called a public hearing for an alley reconstruction between Elizabeth Avenue and Newton Avenue from Clark Street to College Street.

Estimated costs are about $275,000 and would be paid for with assessments, sanitary sewer funds and city bonding funds.

• Approved appointments of Gina Wadding to the Housing and Redevelopment Authority Board, Anna Anderson to the Albert Lea Public Library Advisory Board and Kent Rahn to the Albert Lea Parks and Recreation Board.

• Appointed election judges for the March 5 presidential nomination primary.