April 6, 2011 Albert Lea Post Authority Minutes

April 6, 2011

ALBERT LEA PORT AUTHORITY

MINUTES

April 6, 2011

Albert Lea Business Development Center

 

1.      CALL TO ORDER & NOTATION OF ROLL

The Regular Meeting of the Albert Lea Port Authority was called to order on Wednesday, April 6, 2011 at 7:30 a.m. by President Vern Rasmussen.  Roll was noted by the Board Secretary.  President Rasmussen introduced Mike Lee as the new Freeborn County Commissioner of District 5.

COMMISSIONERS PRESENT:  Jerry Ehn, Ellen Kehr, Mike Moore, Nancy Skophammer, Vern Rasmussen, Jr. and Al Brooks

COMMISSIONERS ABSENT:  Keith Fligge

EX-OFFICIO MEMBERS PRESENT:  Randy Kehr, business community representative and Pat McGarvey, interim City Manager and Christopher Shoff, Freeborn County Representative

EX-OFFICIO MEMBERS ABSENT:  None

STAFF MEMBERS PRESENT:  Dan Dorman, Executive Director; Ryan Nolander, Assistant Director; Julie Dandrea, Board Secretary

STAFF MEMBERS ABSENT:  None

GUESTS:  Chuck Paczkowski, Greg Steil, Commissioner Mike Lee and Rebecca Gisel from Alliant Energy

2.      APPROVAL OF MINUTES FROM MARCH 2, 2011 MEETING

The minutes from the March 2, 2011 meeting were reviewed.  Commissioner Kehr made a motion to approve the minutes as presented, seconded by Commissioner Brooks.  The motion carried 6 in favor; 0 opposed.

3.      RESOLUTION PA-11-06 AUTHORIZING PAYMENT OF CLAIMS

The claims were presented for review.  The large claim was due to the transfer of funds to Farmers State Bank when the checking account was moved to that bank.  Commissioner Skophammer inquired about the claim to Tic Toc Digital Printing.  Assistant Director Nolander explained the claim was for a sign at the new spec building and for rebuilding the damaged sign on the Habben property.  Commissioner Moore motioned to accept the claims as presented in the amount of $160,062.09, seconded by Commissioner Ehn.  President Rasmussen asked for questions and hearing none the motion carried 6 in favor; 0 opposed.

4.      ALMC PROJECT

Executive Director Dorman said they are looking at utilizing more of the bank building and not building above Stadheim Jewelers which would save money.  If we are able to use state tax credits and construction costs are in the five million dollar range the project can happen. However, if costs are closer to seven million, it will be a problem.  Bob Graham has identified houses downtown that may be acquired for surface parking as there will definitely be a need for more parking for ALMC and other employees.

5.      JOBZ AUDIT & REPORT

JOBZ audits were completed in March and the results were very positive.  A spreadsheet was passed out showing more jobs were created than were required by the program.  It shows total capital investment of $47,468,000 and 665+ jobs have been added to the community through the program.  Executive Director Dorman said that despite what has been reported in the news, this program worked. For example, Select Foods would not be here if it weren’t for JOBZ.  Dorman thanked Assistant Director Nolander for his diligence in doing the audit.  Nolander said each company must pay $300 for their audit.  He pointed out that the total numbers show only the additional jobs in the JOBZ operation and not at other plants. These were noted on the spreadsheet.  He also pointed out the total capital investment from the beginning in 2005 to 2010 is over $47,000,000.  President Rasmussen suggested sending our local results to the local paper and the Minneapolis/St. Paul newspapers.  Discussion followed on the need for a replacement program.  Executive Director Dorman reported that he has spoken with State Representative Bob Gunther. Rep. Gunther is the Chair of the Economic Development Finance Committee and is optimistic that JOBZ will be revamped and extended. Rep. Gunther is soon releasing a bill that will make JOBZ a statewide program and have dedicated funding for economic development.

6.     EXECUTIVE DIRECTOR’S REPORT

• Bids for the annual audit were sought. The low bid received was from Larson Allen. We planning on seeking bids again next year.  Hammer Dieser Mangskau no longer does public audits.
• The city is proceeding with making necessary street improvements on Myers Road.
• Mayor Rasmussen wants us to create a sewer incentive to attract more wet industry to Albert Lea.  Currently, we are overly dependent on too few industrial users. Should we lose one of the large users, the resulting increases in sewer rates to all users including residents would be dramatic.  Executive Director Dorman has talked to current users and they were comfortable with some type of rebate offered to new industry.  They understand the costs will stay down if there are more users.
•  Executive Director Dorman attended a Positively Minnesota meeting recently and learned that the department is planning to focus on recruiting a server or data farm to Minnesota. Many northern states, including Iowa, have incentive programs in place to attract this type of business.  Data farms create lots of heat so it’s more cost efficient to be located in cooler climates.  DEED is proposing legislation for creating incentives in Minnesota and we are talking with Freeborn-Mower Cooperative about a joint marketing effort for the I-35 Business Park.  Data farms are huge electrical users and redundent fiber internet connections are required.  Qwest and Charter could provide the service to the I-35/I-90 Business Park for under $100,000 if a large customer locates there.  McCloud USA has fiber in front of property so there are three possible providers for the park.  Freeborn-Mower has marketing dollars to go after this new business secto

7.     EX-OFFICIO UPDATE

Freeborn County – Christopher Shoff reported a busy month.  He gave a recap on the following items:

• The judge’s ruling on the sheriff’s salary.
• The new commissioner, Mike Lee, was sworn in on March 15.
• The commissioners met with the ICE reps recently.  The contract is halfway through.
• He testified about our local option sales tax at the state.
• The process goes forward on the rail abandonment along Highway 13.
• The discussion on reorganizing the sheriff’s office will be held off until the next workshop.
• With a full board now, the county commissioners may get new board assignments.

City of Albert Lea

• Interim City Manager McGarvey said the city has started a search for a financial director.  The shared arrangement with Austin did not work out.  Tom Dankert felt he could not give 100% to each city.
• The city must make a contingency plan due to possible reductions in state aid.
• There has been a final workshop for the sign ordinance.  The next step will be a public hearing.
• Broadway Ridge Fund – No one has applied as yet; however, the owners of the former St. Paul Clothiers store are interested.  The new city manager is under contract.  Interim manager McGarvey plans to exit the office in May.  Until then, he will be in contact with the new manager to bring him up to speed.
• McGarvey would like to see the 20-year old computer system at city hall updated.

Chamber of Commerce

• Randy touched again on the sign ordinance.  The public hearing will take place May 3.
• First Lutheran wants approval for a parking lot behind the church.  They need some minor tweaking done.
• March was a busy month – He met with Governor Dayton re: LGA.  There was a CEO meeting with Hormel Government Relations Director Joe Swedberg speaking.  There was a great response to the wellness conference with 48 people attending.  The Ag Luncheon was held.  Today, there is a small focus group meeting for the alliance for a healthier Minnesota looking at ways to bring down the cost of health care.  Randy is on the committee to interview 3-5 finalists to replace Judge Chesterman.

8.     COMMISSIONER ITEMS

• Commissioner Kehr attended a meeting with Commissioner of Revenue and Education regarding budget cuts.  The next cut will continue to affect programs at Riverland College which brings major concerns about our workforce.
• Commissioner Ehn reported that the medical center has changed to a new medical records system called Cerner.   He also said there have been rebranding changes.  The clinic will be called Mayo Clinic Health Care – Albert Lea.  Whether they remodel or move downtown, bringing regional work here is part of their business plan.
• President Rasmussen will meet with the new city manager over the weekend.  He went on to say the loss of market value credits has really hit everyone hard.  He is concerned about the loss of local government aid and feels there needs to be funds to help with the levy or everyone’s taxes will go up.

9.     ADJOURNMENT

Commissioner Kehr made a motion to adjourn the meeting, seconded by Commissioner Brooks.  The motion carried 6 in favor, 0 opposed.  The meeting recessed at 8:20 a.m.

 

Filed and attested April 6, 2011.

 

______________________________                  __________________________

President                                                               Board Secretary