About a month after the issue was first tabled, the Albert Lea City Council on Monday is again slated to vote whether to amend the city’s agreement with the developers of the Tiger Hills housing development.

According to city officials, developer Greg Moen has requested the council amend the way assessments for the second phase of the development are paid for.

Instead of a certain amount of city assessments being due each year, he has requested that assessments be allowed to be paid in full plus interest at the time a lot is sold, or deferred until Nov. 30, 2017, whichever happens first.

The council approved a similar deferment for the assessments in phase one of the project.

Moen has said in documentation to the city that this would allow him to pay his delinquent real estate taxes. The lots are projected for a forfeiture sale in 2012 if the delinquent taxes are not paid.

In a letter to City Manager Chad Adams, Moen said he has been working with his bank to be able to release some of the proceeds from lot sales to pay the development’s delinquent taxes.

He said he is current through the first half of 2011 with the phase one taxes and has had a lot sell on June 17 and is expecting another on July 8.

“The bank has agreed that since the funds are available at this time, that they will release them to pay all the taxes and bring us current as long as the city changes our assessments to be set up the same as phase one,” he writes.

“The time has come that the council must make a decision on this now, as the funds are ready to be released at this time,” he continues. “If we wait then the bank will apply those funds to the loan, and depending on the market conditions, we may not have the ability to pay at that time.”

He asked the city manager to consider the tax revenue generated for the community.

“It should be quite easy for you to see that this has been a very good investment for the city of Albert Lea,” he said.

During discussion about the issue Thursday, Adams presented the council with four options on how to handle the issue.

• He said, first, the council could chose not to do anything with the agreement until spring of 2012, as the delinquent parcels would not go into tax forfeiture until August 2012. This would give more time to see if additional lots will be sold.

• A second option would be to modify the assessment schedule with a letter of credit. A letter of credit would be required to ensure the money is paid.

• Third, the council could choose to defer the assessments to lot sales, just not as long as 2017.

• Lastly, Adams presented the option that Moen prefers of deferring the assessments until lots sell or until 2017. The developer would be required to pay all delinquent property taxes and assessments to date. When the issue came before the council in May, Moen had paid about $500,000 of the principle owed to the city. The city put roughly $1.3. million into the project. But then there are also interest costs.

First Ward Councilor John Schulte V asked if there had been any hardship shown by Moen such as that he was going to go into bankruptcy if this amendment was not approved.

Adams said Moen had not indicated this.

Second Ward Councilor Larry Baker expressed support for Moen’s request, saying that he does not think the city should get into the business of selling lots in case the city ends up with the lots.

Mayor Vern Rasmussen said ultimately what needs to be decided is what’s the best way the city can recoup its money that has put into this.

Sixth Ward Councilor Al “Minnow” Brooks said for him, the decision comes down to whether the city is prepared to make similar amendments with other developers if they see this one approved.

“Are we going to give all the other developers the opportunity to come back and say we’re going to honor the same thing for you we did for Greg?” Brooks asked.

He said he thinks there would be nothing wrong in the council saying they would like to wait and vote on the issue in the spring after seeing what happens the rest of this year and beginning of 2012.

“We’re supposed to do what’s best for the community as a whole — not what we think individually,” Brooks said.

Moen is anticipated to be at the meeting Monday to answer questions from the council.

In other action, the council will:

• Vote whether to accept bids and award the contract for the Myers Road improvement project.

The city received three bids on the project, with the low bid coming in at $3.33 million from Sorensen Bros. Inc.

The engineer’s estimate was about $2.95 million.

The project includes the complete street and utilities replacement, along with storm system improvements from U.S. Highway 65 to 14th Street on Myers Road, according to background information provided by the city manager.

• Vote whether to accept bids and award the contract for the street, sewer and water contract involving repairs on Lincoln Avenue from Front Street to the north dead end.

One bid was submitted by Heselton Construction for about $142,000.

The engineer’s estimate was about $131,000.

This project involves the removal and replacement of the sanitary sewer, watermain, curb and gutter and sidewalk, and then paving the surface.

• Vote whether to accept bids and award the contract for the bituminous alley project.

One bid was submitted in the amount of about $71,000 by Ulland Bros Inc.

The engineer’s estimate was about $79,000.

This project includes milling and overlaying the existing bituminous and concrete surfaces on the alleys between Washington Avenue and Broadway Avenue from College Street to Water Street, according to background information provided by the city manager.

• Vote whether to revise the city’s low income assessment and utility billing policy for residents seeking relief in these areas.

The income guidelines have not been adjusted since 2006.

• Vote whether to defer assessments against a property at 1106 U.S. Highway 69. The homeowner’s reportedly qualify for the city’s low income assessment policy.

• Vote whether to approve a motion declaring a wastewater dump truck as surplus and abandoned property.

The truck has reportedly been giving the Parks Department problems, and would require more in repairs than it is worth.

It is slated to be sold for salvage.

City Manager Chad Adams said several departments will be sharing trucks in the interim.

• Vote on accepting two admissions of violating the city’s best practices policy for liquor violations on Nov. 30.

The Liquor Depot and Wedgewood Cove Golf Club have reportedly both admitted to selling alcohol to a person under 21. Both businesses will be required to make civil penalties.

• Vote on a request from Thorne Crest Retirement Community’s Wellness Director Weston Hulst to have a 5K run/walk starting at 9 a.m. Sept. 10.

Police assistance is requested at the corner of Richway Drive and Bridge Avenue.

• Vote on a request from Three Eagles Communications in Mason City, Iowa, for approval and assistance with a tractor ride on July 12. The group is slated to arrive in Albert Lea that day at 10 a.m. and is requesting assistance with crossing several streets in town.