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Albert Lea City Council approves variances, cannabis registrations, grant application and project awards
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Summary
On March 23 the Albert Lea City Council approved final reading of Ordinance 26-153, authorized publication of its summary, authorized a SCDP grant application for owner-occupied housing rehab, approved two retail cannabis registrations (each with a mayoral no vote), awarded infrastructure and remodel funding actions, and approved two zoning variances.
The Albert Lea City Council on March 23 carried several motions affecting housing, zoning, public infrastructure and local business licensing.
Ordinance and publication: The council gave final approval to Ordinance 26-153 (an amendment to conditional-use permit time limits that lets permits be extended beyond 12 months when the approved project remains unchanged) and approved a separate resolution to publish a summary of that ordinance. Staff noted the summary requires four-fifths approval and the council passed the roll-call vote.
DEED SCDP grant application for housing rehab: Council opened a public hearing and then approved a resolution authorizing submission of a Small Cities Development Program (SCDP) grant application to the Minnesota Department of Employment and Economic Development (DEED). Staff and a SEMCAC representative described the proposal: a $431,250 application to support owner-occupied rehabilitation in targeted blocks (Fountain, Clark, Water and William streets). The program would run 30 months if funded; loans would be structured as seven-year instruments with up to $25,000 available before deductions for title, lead-risk assessment and possible clearance costs. For loan forgiveness, staff said 20% of the loan would be forgiven each year in years three through seven if the owner still occupied the house.
Retail cannabis registrations: The council approved two retail cannabis registrations — Big Dream Organics LLC (Jerry and Angie Collins) for 1039 Broadway Ave S and Brenda Zamora (DBA Affectionados, LLC) for 2006 Main Street E. Staff said background checks and zoning reviews cleared the applicants; both approvals carried conditions (Big Dream Organics must change front-window vinyl within 30 days to comply with state and local sign rules; Brenda Zamora must cease food services at the location when retail operations begin). Council roll call for both items recorded a majority of yes votes and a no from Mayor Murray.
Capital and contract actions: The council approved a $123,831.62 fund transfer to settle outstanding architectural expenses for the city-hall remodel, allocated 60% building maintenance fund / 20% water fund / 20% sewer fund. Council also accepted bids and awarded the 2026 cured-in-place pipe (CIPP) rehabilitation contract; engineering reported three bids and recommended the low bid. The transcript records the engineer's estimate as $264,255 and the announced low bid as $171,173,529.72 from Municipal Pipe and Tool Company LLC (Hudson, Iowa). That numeric reading in the meeting transcript is inconsistent with the engineer's estimate and appears to be a transcription or numeric error; engineering recommended awarding to the low bidder and council approved the award.
Zoning variances: The council approved a variance permitting single-family modular housing at 409 West Clark Street (the Board of Appeals recommended approval). The council also approved a reduced side-yard setback to 5 feet for a modular house at 915 Autumn Street after discussing fire-code compliance and the Board of Appeals' split recommendation.
Claims and adjournment: Council approved claims over $25,000, including payments for wastewater-phosphorus design, electric cooperative, and an arena-refrigeration project. The council adjourned after completing the agenda.
Votes at a glance: - Consent agenda (minutes, permits, and resolution to apply for MPFA drinking-water funds, job 2606): motion carried (voice vote). - Ordinance 26-153 final reading: motion carried (voice vote). - Resolution to publish summary of Ordinance 26-153 (requires 4/5): roll-call vote — approved. - Resolution authorizing SCDP grant submission to DEED ($431,250 request): roll-call vote — approved. - Retail cannabis registration — Big Dream Organics LLC (1039 Broadway Ave S): approved (yes 5, no 1 — Mayor Murray no). - Retail cannabis registration — Brenda Zamora (DBA Affectionados, LLC; 2006 Main St E): approved (yes 5, no 1 — Mayor Murray no). - Fund transfer for city-hall remodel ($123,831.62): approved (voice vote). - Award contract — 2026 CIPP rehabilitation (Job 2607): approved (engineering recommended low bid; see audit on reported bid figure). - Variance approval — 409 West Clark Street (allow single-family modular): approved. - Variance approval — 915 Autumn Street (reduced side-yard setback to 5 ft): approved. - Claims over $25,000: approved (listed payments in meeting).
Next steps: staff will process SCDP application to DEED by the stated application deadline (April 15, 2026) and follow the city’s usual procedures for contract execution and program administration when grants or bids are finalized.
