Council to consider deal to develop vacant lot

City News November 7, 2025

The Albert Lea City Council will vote Monday on an agreement with a private developer to build workforce housing on a city-owned vacant lot at 610 E. Fourth St.

The city acquired the property through tax forfeiture and removed a house on the lot due its hazardous condition in 2022.

Earlier this year, the council approved a package of incentives to help attract developers for several tax-forfeited properties. That package prompted a proposal from Kingdom Homes of Albert Lea.

Under the proposal, Kingdom Homes would construct a 3-bedroom, 1-bathroom single-family home over the winter with plans to sell it in the spring. In return, the city would provide the lot at no charge to Kingdom Homes along with $5,000 in development assistance and up to $5,000 toward water and sewer hookups.

The city is providing the incentives because, “In a time of housing shortages and employment vacancies, the development of workforce housing is critical for economic growth of the community,” according to the resolution up for council approval.

In addition to gaining housing, the city would benefit from increased property taxes and utility payments from the new owner.