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Development Increases Value

City News May 22, 2025
A row of apartments with individual wooden decks overlooks a body of water and a grassy area. The apartment building is two stories high, with light grey siding on the upper level and a darker grey siding below. Each apartment has a sliding glass door leading to a private deck with a wooden railing. Some apartments also have air conditioning units mounted below the windows. In the background, across the water, there are trees and some buildings, possibly part of a town or industrial area. The sky is blue with a few clouds.

The League of Minnesota Cities recently highlighted the Front Street Apartments project in its magazine that focuses on housing initiatives across the state. The city supported this private development of 48 rental units by using $944,000 in state funding toward $1.26 million in costs for cleaning up contaminated soil at the 3.4-acre site. The city is also supporting the project with $474,000 in tax increment financing over 26 years.

Since the apartments opened in 2022, Freeborn County has increased the property valuation from $52,200 to $3 million. In addition to raising the local tax base, the apartments are helping Albert Lea fill a critical need for housing, expand housing choices and maintain affordable housing. About 10 units qualify for rent subsidies for residents with low incomes, as defined by 50% or less of the area’s gross income.

For more about Albert Lea’s housing goals, see the Comprehensive Plan.