Albert Lea council approves arena remodel contract, Fountain Lake dredging permit and engineering agreement

The Albert Lea City Council on Feb. 10 accepted major donations for an arena expansion, awarded a construction contract for remodeling the City Arena and Aquatic Center, approved an interim use permit to support removal of dredged material from Fountain Lake and authorized a professional services agreement related to east Main Street intersection work.

City Manager Ian Rigg told the council that the Albert Lea Hockey Association is donating $250,000 toward an expansion of the City Arena and that the Minnesota Royals Youth Volleyball is donating $300 for nets at the National Guard Armory. "The Albert Lea Hockey Association is donating $250,000 towards the expansion of the City Arena," Rigg said during his presentation of the donations. Councilors and the mayor expressed appreciation for the contributions.

Why it matters: the council’s actions move forward several capital projects and planning steps that affect downtown recreation facilities and local transportation planning. The arena and aquatic center remodeling award starts construction on a voter-approved project; the Fountain Lake interim use permit enables a time-limited dredging operation; and the Alliant engineering agreement positions the city to respond to potential MnDOT grant-funded interchange work.

Most significant actions

- The council accepted the two donations and approved a resolution authorizing acceptance. Council members thanked the donors and noted the projects are tied to previously approved plans and a 2024 referendum for the arena expansion.

- The council awarded the remodeling contract to Bridal Construction of Minnesota Inc. The apparent low bid for the combined Arena and Aquatic Center work was $1,325,000. Staff proposed a 10% contingency ($132,500) and a construction management contract with Apex for $285,850, bringing the total project estimate to $1,743,350, which staff said was $3,650 under the current budget. Council approved the award and contingency and authorized Apex to manage construction.

- The council approved an interim use permit (IUP) requested by the Shell Rock River Watershed District to allow dredged sediment to be moved from Fountain Lake by overland piping into a confined disposal facility north of the city. Planning Commission recommended approval with conditions. Rigg said the permit, if approved, would be effective for 36 months and would include locations for staging, crane and truck access and a pipeline route crossing Plaza Street.

- The council authorized a professional services agreement with Alliant Inc. for an East Main Street intersection evaluation. Rigg said the Minnesota Department of Transportation (MnDOT) is studying I-35 interchanges with I-90, Highway 65 and Main Street and is considering changes that could include ramp signals or roundabouts. The proposed Alliant agreement is for time-and-materials work not to exceed $68,499.10; staff said the study work will put the city in position to submit documentation should MnDOT pursue grant funding for improvements.

Other approvals

- The council approved a change to the City Assessment Policy that updates interest-rate language and changes specified lighting pole material from fiberglass to aluminum.

- The council authorized the purchase of a Park Department mower replacement (unit 596). The replacement was budgeted in the capital improvement plan for $110,000; the selected replacement bid came in at $115,750.66. Staff noted a trade-in offer of $14,500 but recommended selling the old unit by minimum bid to maximize return.

- The council authorized advertising for bids for the 2025 splash pad bathroom improvement project (Job 2511). Staff described the selected design option and estimated the construction cost at roughly $200,000 and requested authorization to solicit bids.

- The council accepted the apparent low bid and awarded the Apex-managed construction contract, as described above, for the arena and aquatic center remodel; it also approved related contingency and management fees.

- The council approved claims and payments presented for the period, including several larger disbursements for construction-related vendors and health insurance. The city manager presented claims over $25,000 for council approval.

Quotes and council discussion

City Manager Ian Rigg explained the need to move forward on the MnDOT-related engineering work so the city would be ready if MnDOT applies for grants: "That's why we're asking for this now," he said. Councilors repeatedly thanked donors to youth sports and the arena project; one councilor described the planned lobby expansion as "quite an addition" and said it will be welcoming for many visitors.

What the council did not decide

The council approved the items as presented; there was no motion to delay or table the core project actions. A single abstention was recorded on the motion to advertise bids for the splash pad bathroom project after a council member disclosed a potential conflict related to involvement with a bidder and the city attorney recommended abstention.

Next steps

Contract documents and bid advertisements move forward as authorized: bids will be advertised for the splash pad bathrooms; the awarded remodeling contractor is scheduled to begin work under city oversight with the approved contingency; the IUP for Fountain Lake dredging, if implemented, would authorize operations for up to 36 months under conditions set by the Planning Commission; and the Alliant agreement will allow technical work needed for potential MnDOT grant applications.

A full list of votes and procedural motions appears below in "Votes at a glance."