August 5, 2015 Albert Lea Post Authority Minutes

By Tyler Golberg | August 5, 2015

August 5, 2015

ALBERT LEA PORT AUTHORITY

MINUTES

August 5, 2015 – 7:30 a.m.

Regular Meeting

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, August 5, 2015 at 7:30 a.m. by President Kehr. Roll was noted by the Board Secretary.
  • COMMISSIONERS PRESENT: Vern Rasmussen, Jr., Mike Moore, Ellen Kehr, Al Brooks, and Mark Heinemann
  • COMMISSIONERS ABSENT: Ginny Larson and Nate Jansen
  • EX-OFFICIO MEMBERS PRESENT: Chad Adams, City of Albert Lea representative and Mike Lee, Freeborn County representative
  • EX-OFFICIO MEMBERS ABSENT: Randy Kehr, business community representative
  • STAFF MEMBERS PRESENT: Ryan Nolander, Executive Director and Julie Dandrea, Board Secretary
  • STAFF MEMBERS ABSENT: None
  • GUESTS: Mike Murtaugh – Freeborn Mower Cooperative Services and Rebecca Rowe, city of Albert Lea summer intern

 

2. APPROVAL OF MINUTES FROM JULY 1, 2015 MEETING

  • The minutes from the July 1, 2015 meeting were reviewed. Commissioner Moore made a motion to approve the minutes as presented, seconded by Commissioner Brooks. President Kehr asked for any discussion and hearing none, the motion carried 5 in favor; 0 opposed.

 

3. RESOLUTION PA-15-18 AUTHORIZING PAYMENT OF CLAIMS

  • The claims were presented for review. Commissioner Heinemann made a motion to accept the claims as presented in the amount of $29,585.49, seconded by Commissioner Brooks. President Kehr asked for any discussion and hearing none, the motion carried 5 in favor; 0 opposed.

 

4. PROPOSED 2016 BUDGET & FINANCIAL REVIEW

  • The budget process was reviewed. Any changes will need to be finalized by the September 2nd board meeting and then submitted to the city for the September 14th council meeting. Some of the items reviewed were: One more year remains of the JOBZ program audit income; the real estate fund is now called the business activity fund; and a paper loss will be shown from the 9th street property sale due to the over-valuation of the property when it was put on the books. Our CPA firm has advised against accounting for a possible $100K sale of fixed assets each year as had been done in the past because this isn’t consistent activity. The Enderes’ building demolition and possible soil cleanup had been budgeted for 2015. The roof replacement on the Ring building was discussed. Unless the bids come in low, staff is preparing a capital expenditure plan to do a portion each year. This is why the Port has reserve funds to be able to use for capital repairs and possible project incentives. The board consensus was if a good bid was received, the whole roof should be done at once. Specifications will be drawn up by ZRT and the project may be bid next spring. If there are any questions or concerns regarding the budget, Executive Director Nolander asked to be contacted before the next meeting.

 

5. EXECUTIVE DIRECTOR’S REPORT

Project Blazingwire – This is the data center project. We responded to their purchase offer and have not heard back anything yet, but will continue to follow up.

Binswanger Project – This inquiry came directly to us from the site selector. DEED received the project lead that was looking at locating in southern MN or northern IA, but they didn’t include us when they forwarded it to other localities because our sites have not been certified shovel-ready. There is potential for 150 jobs. We sent information on ALEDA Park which would fit their needs and is essentially shovel-ready.

Food Industry Project – A business came to us a month ago about a new production opportunity. The east end space of the ALBDC is currently vacant. Although not a usual incubator project, the ALBDC board said they were agreeable since the center is within the board’s guideline of keeping 51% of the building for startups. ZRT said it’s possible to make the space food grade by making a clean room for manufacturing. The customer visited and liked the space and is providing a layout for equipment. A budget was put together. The ALBDC board wants to be part of the project. The agreement with the Port Authority and the ALBDC is 60% of capital improvements are paid for by the Port and 40% paid by Greater Jobs. The ALBDC board proposed splitting the 40% between ALBDC and Greater Jobs, making less of a burden upfront on each entity’s reserves. The remodel payback will be built into the lease with interest and the rent included in their monthly payment. A handout showing the revenue situation was given to the board. The company has agreed to the projected lease amount. The remodeling costs would be recouped in 3+ years. The business’s customer got a huge contract with a large company. They want a 5-year lease with another 5 year option. An agreement stating the business is responsible for costs incurred if the venture doesn’t work out will be drawn up. Executive Director Nolander asked for input and approval to move forward. One of the other incubator tenants may move out in the near future so having this new rental income would continue allowing the center to cash flow. Commissioner Rasmussen made a motion to move forward with working out the remodel and a lease agreement of the east end space with the business. Commissioner More seconded the motion and it passed 5 in favor, 0 opposed.

Regional Retention Pond Update – Chad Adams, Steve Jahnke and Executive Director Nolander met yesterday on the BDPI application for Northaire Park regional retention pond. The city has an agreement ready for the landowner across the road and are moving forward. There is concern the railroad will take a long time to get an agreement in place to allow piping to go under the rail. Overall, the state said the application looks good.

Ring Building – The building repairs were previously discussed. The costs for the loading dock damage is being passed along to Ventura. The middle space lease with Ventura was updated to match the expiration date with their lease on the north section. The lease expiration date for all the space is now 4/30/19.

Enderes Demo Update – The contracts are in place with Dulas Excavating. Environmental concerns have been looked into and tested. An area of concern turned out to be petroleum that may be contained to a small area so the cost to remedy it appears to be minimal. Commissioner Brooks met ZRT and Executive Director Nolander on the site after last month’s meeting. The environmental company had been there in 2010-2011 while the business was still operating as Enderes Tool and had a lot of information on file. Ventura possibly has interest in the land and could expand to that property. Ventura staff is running it through their upper management. We are hoping to recoup the costs incurred since taking over this property in tax forfeiture.

Downtown Update – The city council approved buying the law office on Broadway. Another building on the block will be taken through tax forfeiture. It will be a long-term project to rehabilitate the entire block. Since the streetscape was finished in 2013, several new businesses have moved in and we are working to continue that success down South Broadway after the repair work and reconfiguration this summer.

Site Selector Familiarization Tour on 9/14/15 – The last couple of years we’ve participated in the tour. There’s a change in the format this year. A site selector will come from the Minneapolis area to Albert Lea for a working lunch, site tour, and business tours. The day will end in Owatonna that night for a social event. Austin will participate here and next year the tour will be over there. Working together will help build a relationship with Austin.

SE MN Together Workforce Project – The date was changed and is now October 29th and will be held at Wedgewood. The agenda and format for a round table discussions are being worked out. We will incorporate local businesses from Albert Lea and Austin and are planning on a minimum of 100 participants. Participants will be from government, education, students, and employers. SMIF will be facilitating.

 

6. EX-OFFICIO UPDATE

Freeborn County – Mike Lee, Freeborn County Representative

  • Commissioner Moore recognized Freeborn County as being named a “friend of the fair” because of money given for grandstand repairs.
  • There was a meeting in July regarding emergency communications. First Net is setting up a national broadband system that can go live right after a tornado or other emergency event. The governor in each state can sign up in 2016. MN would receive $7 billion in funding which would cover only 20% of the cost.
  • Workshops will be held through August to work on the 2016 budget.
  • On August 18th, they commissioners will consider the 1/2 cent sales tax for road repairs. Executive Director Nolander added he attended the public hearing. Only three were there who gave input, however, people will undoubtedly complain if it’s passed. Mike Lee said he’s had only one call from a constituent.
  • Mike invited everyone to attend the Freeborn County fair.

City of Albert Lea – Chad Adams, City of Albert Lea Representative

  • Rebecca Rowe, the economic development summer intern, was introduced and gave a brief review of her activities. She has been working on the ALEAP program at The Outlet, participated in the downtown preservation project, and assisted with the application for a small cities development grant program. She is also working with ALEDA and the Chamber on a job database before wrapping up her internship.
  • All downtown owners are invited to a meeting on August 12th regarding the grant program. There will be flexibility in the program for grants and revolving loans.
  • The citizen’s survey is on the city’s website now. There are a lot of sectors and will be used as a tool to set goals.
  • The 2016 budget planning is underway now. The city is looking at holding steady on the general operation levy and is looking at options on how to control the debt service levy increase.
  • Water rates will probably increase in the 7% range. The sewer rates will remain stable.
  • The West End Salvage business is doing very well and are looking at a more permanent residence if they have to move out of bank building. They’ve received a lot of attention in the two weekends per month they have been in Albert Lea.
  • The market rate rentals near Wedgewood are being built now. When completion is 60 days out, applications will begin to be taken. The response will drive the next phase to begin. Four units are projected be completed before the end of year.
  • The city has received a grant from SMIF for the Community Growth Initiative. The assets mapping will be done at no charge and is a 6-10 month process. When complete there will be a strategic plan to move forward with potential projects and funding for those projects. Other people to lead the community leadership team rather than the usual public officials is preferred.

Chamber of Commerce (Ellen Kehr gave the update on behalf of the Chamber)

  • The golf tournament went well.
  • There was a site visit from Blue Zones on 7/15/15 that went very well.
  • The Chamber has moved into their new location at the Skyline Plaza, but are not completely set up.
  • The leadership program starts in two weeks. They anticipate 20 people and 17 have signed up so far.
  • The Riverland Foundation is going to give $5K of money raised from the gala toward entrepreneur programs instead of all scholarships. The upcoming gala turnout is hoped to be 500 people. Executive Director Nolander added that ALEDA is showing its support by being a table sponsor. Both ALEDA staff members are out of town that weekend so if any of the board members can utilize any of the eight tickets that will be available, please let us know.

 

7. COMMISSIONER/OTHER ITEMS

  • Mike Murtaugh said Freeborn County’s acquisition of Alliant’s electric assets was finalized last Friday morning. There are no employees stationed at the downtown location and 18 more people have moved into FMCS building and have already received orientation.

 

8. ADJOURNMENT

  • Commissioner Brooks made a motion to adjourn the meeting, seconded by Commissioner Heinemann. The motion carried 5 in favor, 0 opposed. The meeting adjourned at 8:45 a.m.

 

Filed and attested August 5, 2015

 

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