August 6, 2014 Albert Lea Post Authority Minutes

By Tyler Golberg | August 6, 2014

August 6, 2014

ALBERT LEA PORT AUTHORITY MINUTES

August 6, 2014

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 6, 2014, 2014 at 7:30 a.m. by Vice President Fligge. Roll was noted by the Board Secretary.
  • COMMISSIONERS PRESENT: Vern Rasmussen, Jr., Ellen Kehr, Keith Fligge, and Mike Moore (arrived at 7:55)
  • COMMISSIONERS ABSENT: Al Brooks and Nate Jansen
  • EX-OFFICIO MEMBERS PRESENT: Chad Adams, City of Albert Lea representative; Randy Kehr, business community representative; Mike Lee, Freeborn County representative
  • EX-OFFICIO MEMBERS ABSENT: None STAFF MEMBERS PRESENT: Ryan Nolander, Executive Director and Julie Dandrea, Board Secretary STAFF MEMBERS ABSENT: None
  • GUESTS: Mark Heinemann, Farmers State Bank and Rebecca Gisel, Alliant Energy

(The agenda order was changed pending a voting quorum.)

2. EX-OFFICIO UPDATE

Freeborn County – Mike Lee, Freeborn County Representative

  • The County has begun working on their 2015 budget.
  • Closing on the Union Pacific rail property is anticipated the end of September.
  • The County has the funding for replacing the Shell Rock River dam and plans to have it finished by December, 2015.
  • The County passed a resolution of support for the MN Multi-Family Housing Program which offers low interest loans for low income households.

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

  • The City is applying for grants for downtown building interiors, due in February, as other communities have had success in getting funds.
  • The Blandin entrepreneur group will present a final outline of their five-tiered program to the Port Authority board after reviewing first with ALEDA staff. They are looking to ALEDA to be the agent running the program and are seeking grants through Blandin and SMIF to help support it. The group has been approached by a business who wants to buy a building downtown for an incubator, which is one of the group’s tiers.
  • It will be late September before a decision is known on the historic credits for the Freeborn Bank building. The developer is moving forward and the Art Center is doing well with their fund raising. It will be another year before they are occupying space within the building.
  • The city council has approved a tax abatement policy for professional services. Advanced Family Dental’s abatement request is coming up for public hearing. Their expansion brings 6-8 well-paying jobs. Abatement would be over 5 years on the tax rolls: 90%, 80%, 70%, 60% and 50%. The County is having a tax abatement discussion this week.
  • A housing study will be finalized in August and shows high demand for market rate housing. The ALEDA Park outlot was rezoned last night and the final plat was passed for Schrom Construction.
  • The Blue Zone Project is moving forward. Another part-time employee will join the Vitality Center for a year.
  • A Blazing Star Landing Community Center meeting was held recently with another Blandin small group. The Center could include Senior Resources, the Y, and others, leaving outlots for private taxable development. There will be open house meetings in September, along with the master comprehensive plan rollout.

Chamber of Commerce – Randy Kehr, business community representative

  • The Blue Zones Project started 8/1/14. Other than space in the Vitality Center and support services, the City is not funding this initiative. Ellen Kehr is an employee of Healthways and the engagement lead with be funded by Dan Buettner. The kickoff will be in November. There are planning stages for the leadership team and lots of committees are already in the works. Stacy Palmer will be the engagement lead and will start 8/12/14 for a period of 4 months or as fits.
  • Tonight, the three candidates for sheriff and the two opposition candidates running for 6th ward will debate at city hall. KATE will broadcast the debates live and both debates will be taped and available on the City’s website. Before the general election another debate will be held.
  • He referred a call to Jon Ford regarding Home Depot’s return program for nonprofits.
  • There is 11,000 SF available for temporary storage at fairgrounds.
  • Working on a video project for their website. The City did one in 2005.
  • Upcoming events: Relay for Life is this weekend, Big Island BBQ on 8/22, Albert Lea Lake float event on 8/23 with Budweiser, who gave $50k for a soft boat landing, in attendance. A first time art event will be on 8/24 at Edgewater Park with different things going on. Tomorrow at 6:00, another Blandin event featuring an “ending poverty in the area” conversation will be held at the Fairlane building.
  • The Leadership Class has 21 enrolled.
  • On 9/12, a speaker will be giving free board training for those interested in being a member on nonprofit boards. The Chamber will send out more information.

3. APPROVAL OF MINUTES FROM JULY 2, 2014 MEETING

  • The minutes from the July 2, 2014 meeting were reviewed. Commissioner Rasmussen made a motion to approve the minutes as presented, seconded by Commissioner Moore. Vice President Fligge asked for any discussion and hearing none, the motion carried 4 in favor; 0 opposed.

4. RESOLUTION PA-14-16 AUTHORIZING PAYMENT OF CLAIMS

  • The claims were presented for review. The three cooler units for the Ring Can building, which were discussed in recent meetings, were noted. Commissioner Moore made a motion to accept the claims as presented in the amount of $73,846.88, seconded by Commissioner Kehr. Vice President Fligge asked for any discussion and hearing none, the motion carried 4 in favor; 0 opposed.

5. BOARD MEMBER DISCUSSION

Executive Director Nolander received Nancy Skophammer’s resignation on 7/8/14. Her home in Albert Lea is for sale and she has relocated to the cities. Commissioners Rasmussen made a motion to accept Nancy Skophammer’s resignation effective immediately and Commissioner Moore seconded. The motion passed 4 in favor, 0 opposed. This action brings up other discussion items. Commissioner Fligge is currently the Vice President and is willing to move into the President role, however, his last term is up at the end of 2014. With Commissioner Fligge leaving, Commissioner Skophammer gone, and Commissioner Jansen still fairly new, that leaves three board members with experience. Commissioner Kehr is currently the Treasurer and wants to remain in that role. Commissioner Rasmussen agreed to be the Vice President. Commissioner Moore moved to make the following changes to the executive committee: Keith Fligge, President; Vern Rasmussen, Vice President; Ellen Kehr, Treasurer through the end of the 2014. Commissioner Kehr seconded. After no further discussion, the motion passed 4 in favor, 0 opposed.

Mark Heinemann has shown interest in a board position and was in attendance today to be available for any questions from the board. Mr. Heinemann gave an overview of his background. With his banking background, IT and CFO skills, Mr. Heinemann feels he will bring valuable personal and professional experience, along with an outside perspective to the board. He is committed long-term to staying in Albert Lea. Commissioner Kehr feels Mr. Heinemann would make a valuable board member. Executive Director Nolander suggested the board think long-term going forward with selecting board members. He has received other suggestions and has a list of interested candidates for other positions as they arise. Commissioner Rasmussen made a motion to have Mark Heinemann join the Port Authority beginning September 3, 2014. Commissioner Moore seconded the motion. Without further discussion the motion passed 4 in favor, 0 opposed. The Mayor will make the appointment on this Monday’s city council meeting. At next month’s Greater Jobs meeting, a vote will be taken to bring him onto that board position.

6. 2015 BUDGET – FIRST DRAFT

Executive Director Nolander went over the budget draft for 2015 and some changes that were made from last year. There is no income on the general fund revenue side so some expenses will start coming out of the real estate fund. Compensation has been reallocated on Port Authority and Greater Jobs to reflect actual workload breakdown. Transportation went down as the Executive Director portion was moved to the real estate fund. Insurance is highlighted because we don’t have an up-to-date number yet. Commissioner Moore suggested putting some liability and theft under real estate. The first TIF payment will be collected this year for the ALEDA spec building on the real estate income side. Rentals on last page shows zero rent for the south Ring Can space since Larson Manufacturing vacated it. Northbridge Tool will be moving out of the Enderes building this fall so that income goes away. The sale to Jensen Excavating last year is shown under actual 2013. Insurance is much higher now that the Port is off the city’s multi-building policy. The title clearance for Enderes has been high under professional services and still not complete. Commissioner Moore suggested inserting the budget figure for the demolition of the Enderes building for transparency. The building is not rentable and the demolition will be bid out. It may have to be boarded up for the winter. The Greater Job budget was reviewed at this time. The interest was noted on the loan with Freeborn Mower Cooperative Services for the I-35 Park, which Greater Jobs would like to refinance because the balloon is due this year. Audit expenses are higher now that we have loan programs requiring a full audit. Real estate taxes have increased because the I-35 property is rated as development property instead of farmland. ALBDC rentals are up with the MERC warehouse lease budgeted. Professional services has been increased because of higher snow removal costs last year. Without the assistance from Freeborn County, the ALBDC would be in the red. The budget must be finalized in September and given to city for Executive Director Nolander to present to the council on September 8, 2014.

7. EXECUTIVE DIRECTOR’S REPORT

Property insurance premiums – This cost went up and was talked about earlier.

Bridon Cordage update – A local group is trying to make a bid for purchasing the Bridon facility. They’re working on the financing and their attorney said there may be a gap, and we told them we need a number before we can offer assistance. Most bidders are investors with cash which would make a quick closing, whereas bank financing takes longer.

St. John’s update – Chad Adams spoke on this topic. On Friday, the City met with them and are continuing negotiations on a TIF. They have asked for 100% of the TIF for 13 years and the City would begin collecting in years 14-26. They are also asking for waiver of all fees. The Watershed will need to get on board for their share of the Crescent Drive extension, but the Watershed needs a final number for road. The Watershed doesn’t want the road to be paved until they’re done with dredging because it will get damaged. September 25th was not the deadline for everything as first believed, although the TIF and development agreement must be done by then. It may be possible to use the Bath Road entrance to the property for construction. Nolander noted there are concerns about the TIF amount for a retirement facility since it’s a nontaxable entity on the nursing home side. The City, by law, can’t give a TIF for that part of the infrastructure.

GMNP membership – A letter was received from Dan Dorman asking for a contribution. Last year the Port gave $1,500 and Greater Jobs gave $1,000. GMNP took part last year in the Coalition Day at the capital. The organization is doing a good job lobbying for us. Commissioner Moore made a motion to again contribute $1,500 from the Port and $1,000 from Greater Jobs. Commissioner Kehr seconded and the motion passed 4 in favor, 0 opposed.

Other Items:

  • The preliminary plat from Schrom’s market rate housing project was passed out.
  • Carol Pressley with DEED is coming next week to review our files and visit AmTech as part of LDO compliance.
  • A Site selector from Ohio will be in Albert Lea Tuesday for 1½ hours as part of the Familiarization Tour hosted by DEED again this year. Randy Kehr will be along as they tour the City.
  • Will attend the GMNP annual meeting with Randy Kehr.

8. COMMISSIONER/OTHER ITEMS

Board Secretary, Julie Dandrea expressed thanks for sending her to the Upper Midwest Basic Economic Development Course in Duluth July 21-25.

9. ADJOURNMENT

Commissioner Moore made a motion to adjourn the meeting, seconded by Commissioner Rasmussen. The motion carried 4 in favor, 0 opposed. The meeting adjourned at 9:10 a.m.

 

Filed and attested August 6, 2014.

 

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