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Leaders with the city of Albert Lea and Albert Lea Economic Development Agency will be the first to tell you of the critical importance of bringing more housing to the community.

“Out talking to employers, we know that housing is one of the key issues out here,” said Albert Lea Mayor Rich Murray. “That seems like the No. 1 factor of keeping a few employers from drawing people to town.”

And if the two entities can help employers, that will in turn affect economic activity in the community and bring more development, Murray said.

With such importance, it’s no wonder the issue is often a topic of conversation at most local city council and economic development meetings and something the two entities spend much of their time on.

Murray said in the next few years, the city would like to see 250 to 400 new units in the community.

Albert Lea City Manager Ian Rigg said of that, probably 100 to 200 units are needed right away, with at least 50 more added every year because of other aging housing developments.

As the community adds more new housing, then banks will be more likely to support future housing projects from other developers, and it will be easier to keep the momentum going.

Before Unique Opportunities LLC developed the Front Street Apartments, it had probably been over a decade since new housing had gone up in the community, said ALEDA Executive Director Phillip Johnson. With no recent development, there were no comparable developments for lenders and developers — which is not good for recruiting new development.

Now that some other developments have taken place — Skye Flats at Skyline Plaza added 50 units and the Ramsey Apartments added 12 in addition to Unique’s 48 units — the men anticipate 2025 to have even further development, especially with interest rates likely decreasing as well.

Several projects are already in the works.

Rigg said the city and ALEDA are currently talking to eight different developers dealing with housing. These include not proposals for not only apartments but other housing as well.

Unique Opportunities would like to build an additional 96 units in a second phase of its Front Street Apartments. The project was put on hold because of inflation and economic challenges, but Rigg said he is hopeful that project will continue soon.

The city is also working with a developer called Tapestry Companies that could bring 60 new low- to moderate-income apartments to the Blazing Star Landing. The company is waiting on results of an application to Minnesota Housing for low-income housing tax credits for the project.

Rigg said if the tax credits are approved, cleanup at the site could begin in the spring. The apartments would range from one to four bedrooms in size, and if that project goes well, they may also look at bringing market rate apartments, he said.

Johnson said despite what some people think, affordable units are just as important as market rate units, and the community needs to add all types of units — not only affordable units but senior and market rate units as well.

In a separate project, 62 units are also proposed for the 300 block of South Broadway, and there are two additional groups that could bring a total of 200 units that have not been spoken about publicly yet, Johnson said.

With how many projects the city and ALEDA have in the works, Murray said he feels good about where the city will be in the coming years for housing.

“I don’t know that we’ve had this much activity in housing in many many many years, so this is exciting,” he said. “This is what the community needs. This is what our employers need. This is how we get more people to move into the community — more people living here, going to stores, buying things.”

If all or even some projects come to fruition, it will bring a big change from the low vacancy rate seen in recent years. Johnson said the city was at only about a 1.5% vacancy rate, where 3% is considered a crisis where you need development and 5% is considered healthy.

“It’s a very, very long process, but there’s a lot of potential going forward,” he said.

Rigg said the city and ALEDA will listen to anyone who has ideas about bringing additional housing to the community.

“We’re the ones trying to break down barriers, not put them up,” he said.

Aside from needing new units, the current housing stock will also need work into the future.

While the city itself cannot fund all of the renovations that need to take place, it could facilitate applying for grants that can help people, Murray said, noting even $20,000 or $30,000 to most people would help with larger improvements such as a roof or siding and help keep the homes on the tax rolls for many years to come.

He is optimistic about the efforts being put in to bring in new housing and economic development and emphasized how important it is to also help current businesses grow and do better.

“For this community to grow, we need both some new businesses and our current businesses to grow,” he said.

He said as more jobs and housing are developed, that will in turn trigger more retail and things to do in the community. While he said he thinks the community does a good job of having things for residents to do currently, they always have to continue to look at new options for everyone.