Albert Lea City Council Faces Business Backlash Over Proposed Liquor License Fee Hike
- Meeting Overview:
During the Albert Lea City Council meeting on November 24, 2025, discussions surrounded a proposal to raise liquor license fees by 40%, prompting significant concern from local business owners. The council also addressed various resolutions, including solar projects, wastewater treatment plant improvements, and accepting property donations, alongside routine councilor reports and community event updates.
The meeting’s most contentious issue was the proposed increase in liquor license fees, taking center stage during a public hearing. The proposal suggested raising the on-sale liquor license fee from $2,000 to $2,800, a jump that had not been adjusted in over two decades. Councilor Larry Baker clarified that the on-sale fees had remained unchanged since 2004, contrary to previous assumptions about the off-sale fees.
James Hagen, co-owner of Bleachers Sports Bar and Grill, was a vocal opponent of the fee hike, arguing that the increased financial burden could jeopardize the viability of small businesses. Hagen detailed recent unexpected expenditures his establishment faced, such as a broken freezer and machinery repairs, which compounded the challenges of running a small business. He highlighted the nearly $22,000 in liquor taxes and over $31,000 in food taxes his business contributed to the community. Hagen urged the council to consider a less severe increase, suggesting a $1,200 fee that would still support public safety without overburdening small businesses.
Following Hagen’s comments, additional concerns were echoed by Councilor Rachel Christensen and Councilor Jason Howland, who both acknowledged the hardships faced by local businesses, especially in light of the pandemic’s lingering economic effects. They advocated for a more gradual approach to fee increases to mitigate the impact on business operations. Councilor Brian J. Anderson also agreed that while an increase was necessary, a sudden 40% hike would be unduly burdensome in the current economic climate.
The city manager provided insight into the procedural requirements for adjusting liquor license fees. This complexity could complicate the process of implementing gradual increases.
Additional council business included the approval of a resolution authorizing construction management services for improvements to the wastewater treatment plant. The proposal from Rice Lake Construction Group was accepted for $19,300 after evaluations by a selection committee. The council also approved state grants for solar projects on public buildings, with grants covering 70% of the costs and the remaining 30% offset by federal tax credits, potentially resulting in no net cost to the city. Councilor Howland supported the solar project, highlighting its benefits for clean energy and cost savings.
Furthermore, the council authorized a redevelopment agreement with Freeborn County for tax forfeiture properties. The agreement involved selling three lots to the city at $4,000 each, with the sale price waived if houses are developed on those lots. The city manager emphasized cost savings through the use of existing utilities and foundations.
The council also accepted property donations on Clark Street West and First Avenue, with plans to explore potential reuse options. The acceptance of these donations was contingent on title searches to ensure clear ownership.
In a separate resolution, the council approved funding for new street banners along Bridge Avenue, with donations from the Convention and Visitors Bureau covering half the cost. The motion carried without opposition, despite noting a minor over-budget situation for the parks operations department.
Councilor reports included updates from various meetings and community events. Councilor Reid Olson extended holiday wishes and urged patience with snowplows. Councilor Keith Van Beek reported on a library meeting and upcoming Housing Authority events, while Councilor Anderson mentioned attending a chamber event and hoped for recovery from a shoulder issue. Councilor Christensen discussed the Senior Center Advisory Board’s activities and upcoming Planning Commission meeting. Councilor Baker shared insights from a meeting about a duplex construction project, and Councilor Howland highlighted the community’s enthusiasm at the Aldi grand opening and discussed improvements at the Marian Ross Performing Arts Center.
City Council Officials:
Rich Murray (Mayor), Rachel Christensen (Ward 1 Councilor), Larry Baker (Ward 2 Councilor), Jason Howland (Ward 3 Councilor), Reid Olson (Ward 4 Councilor), Keith Van Beek (Ward 5 Councilor), Brian J. Anderson (Ward 6 Councilor)
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Meeting Type:
City Council
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Committee:
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Meeting Date:
11/24/2025
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Recording Published:
11/24/2025
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Duration:
62 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Freeborn County
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Towns:
Albert Lea
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