August 7, 2013 Albert Lea Post Authority Minutes
August 7, 2013
ALBERT LEA PORT AUTHORITY
MINUTES
AUGUST 7, 2013
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 7, 2013 at 7:30 a.m. by President Nancy Skophammer. Roll was noted by the Board Secretary.
COMMISSIONERS PRESENT: Vern Rasmussen, Jr., Mike Moore, Jerry Ehn, Nancy Skophammer, Ellen Kehr, Keith Fligge and Al Brooks
COMMISSIONERS ABSENT: None
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: Dan Dorman, Executive Director (arrived at 8:07); Ryan Nolander, Assistant Director; and Julie Dandrea, Board Secretary
STAFF MEMBERS ABSENT: None
GUESTS: Mike Murtaugh-Freeborn Mower Cooperative and Daniel Otten (8:07)
2. APPROVAL OF MINUTES FROM JULY 10, 2013 MEETING
The minutes from the July 10, 2013 meeting were reviewed. Commissioner Fligge made a motion to approve the minutes with a slight revision, seconded by Commissioner Ehn. President Skophammer asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.
3. RESOLUTION PA-13-16 AUTHORIZING PAYMENT OF CLAIMS
The claims were presented for review. Commissioner Rasmussen made a motion to accept the claims as presented in the amount of $18,796.57, seconded by Commissioner Moore. President Skophammer asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.
4. RESOLUTION PA-13-17 TRANSFER OF FUNDS FROM R/E FUND TO GENERAL FUND
As a reminder, this is typically done once during the year because the general fund doesn’t produce revenue so it requires a transfer in order to pay expenses from it. Commissioner Fligge made a motion to approve Resolution PA-13-17 to transfer $150,000 from the real estate fund to the general fund for operating expenses, seconded by Commissioner Kehr. President Skophammer asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.
5. PUBLIC HEARING RE: SALE OF LOT 4, BLOCK 1, A.L. PORT AUTHORITY PLAT NO. 2
Assistant Director Nolander passed out a rough drawing showing where the building would be on the Jensen Excavating site plan. The site is wooded in back to provide natural screening.
Commissioner Rasmussen asked about the property value. It was priced at $10,000 per acre and was offered at $120,000 with $5,000 subtracted to allow for a city-requested 50’ easement. There was discussion regarding the Port lot east of this lot as there is no real value to it because it’s low area next to Bancroft Creek. Because the lot is next to the airport, the City will look into flight clearance requirements to determine if they would want it.
President Skophammer opened the public meeting and asked if the public wanted to speak. Mike Murtaugh suggested the Watershed or the Audubon group may want the parcel east of this lot, as discussed above, if the City doesn’t. This doesn’t affect the sale to Jensen Excavating. President Skophammer asked a second and third time for any more public discussion. Hearing none, she closed the open meeting.
6. RESOLUTION PA-13-18 APPROVING SALE OF LOT 4, BLOCK 1, A.L. PORT AUTHORITY PLAT NO. 2
Commissioner Ehn made a motion to approve Resolution PA-13-18 as presented, approving the sale of the aforementioned property to Jensen Excavating, LLC for $115,000, which includes the easement to the City. Commissioner Moore seconded the motion. On a roll call vote, the following commissioners voted in favor of said motion: Commissioners Brooks, Ehn, Kehr, Rasmussen, Fligge, Moore and President Skophammer. The following against: None. Motion carried 7 in favor; 0 opposed.
7. PROPOSED 2014 BUDGET
A draft of the proposed budget was handed out. Revenue and expenses were discussed and the personnel line was reduced. The TIF payment for the spec building will be doubled next year. Rental changes were discussed with ZRB leasing the entire spec building for 2014. The Port is required to give the budget to the City for a council meeting in September. The reason being if the Port would be proposing their operating tax levy it would have to be included in the City’s budget. However, the Port does not want to exercise their levying ability. Commissioner Ehn asked about any possible sales. At this time the buildings will probably be kept for lease income so any sales would come from land. It was decided to wait until next month to approve the budget which will be given to the city that day.
8. B2B TAX DISCUSSION
A flyer from the MN Chamber of Commerce calling for repeal of the business-to-business sales tax was included in the meeting packet. Randy Kehr said the ALFC Chamber Board is unanimously supporting this repeal. They have a meeting today at Minnesota Freezer Warehouse with state representatives and others. Commissioner Moore said the warehouse portion of the B2B tax will hurt his employer’s bottom line when competing with other states, forcing them to raise their rates. Manly, IA is purported to be opening a logistics park there. Commissioner Moore made a motion to support whatever efforts are needed to repeal the B2B Tax, including the use of our organization’s name, at the discretion of staff. Commissioner Fligge seconded. The MN Chamber is compiling list of businesses against the tax so they can add our name to list. Without further discussion, the motion passed 7 in favor; 0 opposed.
9. EXECUTIVE DIRECTOR’S REPORT
Rezoning Update – Plaza St. parcels & IDD proposed changes – Tonight’s planning meeting will be a discussion of the IDD changes, not a decision on rezoning. A second reading for the rezoning will be done on August12th. ALEDA staff told the Planning Commission we still want to rezone and keep IDD strong. Chad Adams said another option could be to extend the screening requirement to 1,200-1,500 feet from the interstate. He said Faribault and Owatonna have constraints in their design and storage requirements in their industrial parks. He believes the City has met the majority of concerns in the proposed changes.
Freeborn County Cooperative – We have not heard anything new from them. The Ring Can parcel could be an option to look into for them if the Enderes site doesn’t work out.
ZRB – They want to do long-term lease in the spec building and would like to add humidity control to the building.
Ventura/Ring Can – Ventura would like to take over lease assignment from Ring Can, but plans to move into middle space to allow for easier access to both their areas. This will open the south end of the building for a rail user if needed. Staff will be working on the lease for the middle space.
Executive Director Dorman arrived at this point and revisited the rezoning issue. With the language about the city’s comprehensive plan that’s in there, he believes there are items in the proposed changes that may be problematic and will make it more difficult for the city council to move away from design standards. He’s also worried about driving up development costs. Commission Brooks said he would want to compare the proposed changes to the IDD before taking a position. Chad Adams said the city must abide by the comprehensive plan no matter how it was approved, but changes can be made to it. Commissioner Moore thought things were too strongly worded in the IDD draft changes. The metal on the ALEDA spec bldg. would not be approved in the design standards being proposed. The city staff is trying to add language and strike a balance between clarity and consistency. He thinks Jensen’s project may exceed what’s required. ALEDA staff will attend the planning meeting to reflect our position.
10. PERSONNEL PROPOSALS
President Skophammer said Executive Director Dorman met with the executive committee in July to inform them he had taken a position with the Coalition of Greater MN Cities. The executive committee met several times and discussed what would be the most advantageous for the Port Authority right now.
Dorman expressed his thanks for the opportunity to serve as the Executive Director and his willingness to either stay and be of assistance during the transition or leave immediately. Commissioner Moore gave a summary of the committee’s ideas: Assistant Director Nolander would move up to Executive Director and Dorman would stay on one/third time to work on specific projects through October 13. The executive committee will give him a specific plan of work. The committee thought six months might be too long and 60 days would be enough time to get things wrapped up. The board was in agreement that Dorman should stay on to help in the transition. Dorman is happy about his new job and thinks it can have a positive influence on what we’re doing locally.
Commissioner Brooks voiced concerned about public backlash if Dorman stayed as long as 6 months and Commissioner Fligge questioned why the hurry for Dorman to leave in 60 days. President Skophammer believes that keeping the former Executive Director longer doesn’t give the chance for the new one to become the Executive Director. The executive committee feels strongly about the need of continuity with staffing and will continue to study the rest of the staffing needs. Julie has offered to help out by working more hours as needed. In October if more help is needed from Dan, we can re-evaluate his time. The board thought it was important to keep Dan on for the CBOC project that’s he’s been working on. Commissioner Rasmussen feels it would be a big win for the community if we get the clinic and this single project is huge to keep continuity. He went on to say no matter what decision is made today, there will be criticism; however, in the end the board must do the right thing for the organization.
Commissioner Fligge congratulated the ALEDA staff on what they’ve accomplished. Commissioner Ehn thanked Dorman for making the transition easier by giving an extensive notice. Commissioner Kehr appreciated the work executive committee has put into this proposal and thanked them for their efforts. She appreciated the allowance made for the transition and the flexibility given. Dorman again thanked the board and is proud of what’s been accomplished during his duration. He said anytime there is a transition people will criticize the operation. He added that other communities continue to ask how we’ve structured our organization and want to do the same. This organization has built its assets from building, leasing and developing land unlike other communities who have to financially support their economic development agencies.
President Skophammer asked for a motion to accept Dorman’s resignation as of August 5, 2013 as the Executive Director and hire him as Project Manager for the period of August 5, 2013 to October 13, 2013 in order to allow him to finish up projects. Commissioner Moore moved to accept Dorman’s resignation and hire him as project manager from August 5, 2013 to October 13, 2013. Commissioner Fligge seconded. Without further discussion, the motion passed 7 in favor; 0 opposed.
Now without an executive director, Commissioner Ehn made a motion to hire Ryan Nolander as Executive Director of ALEDA beginning August 5, 2013. Commissioner Kehr seconded. President Skophammer asked for any discussion. Commissioner Moore feels it’s important to give this opportunity to someone whose work ethic they know, has earned his stripes and comes with great resources. Commissioner Brooks said he would have liked the opportunity for the entire board to question Nolander as the city does when they hire. Commissioner Moore felt it was the executive committee’s job to recommend staff while staying within the statutes. Commissioner Ehn reminded Commissioner Brooks that he has been given the chance to ask questions and may do so now. Commissioner Brooks stated he did not have anything prepared. He was reminded that the Board directs the decisions and directions Nolander may take as executive director.
Assistant Director Nolander was asked about his plans should he be appointed. He said he plans to work more with local businesses on retention, and work with local businesses and their vendors to create opportunities locally that might currently be outsourced. He would like to work on getting an entrepreneur group together. Randy Kehr added that he is working with the high school on offering an entrepreneur class this fall.
Nolander went on to say we’ve done good job of being self-sufficient with building assets and land sales and he will continue to respond to blind leads and RFPs while working on these other ideas. He wants to build on the relationships with the county board, city staff and council, and the chamber. He is working on writing a standard operating procedure for economic development leads that come to any of the local agencies and how to keep everyone in the loop of our projects. Commissioner Fligge said board members should go with to council meetings or retention visits to businesses. Nolander said he would like to keep meetings with companies to a small group because previous experiences have revealed the smaller the group, the more the company will open up, but he can send an FYI email out about city council or county board meetings. Randy Kehr said there is a report form from “Grow Minnesota!” to use for retention visits.
The compensation package proposed is not at the same level as the former executive director. President Skophammer believes if a search was done they would not find anyone more capable than Nolander. Commissioner Kehr feels he is ahead of the learning curve with his eight years of experience and Commissioner Rasmussen concurred. President Skophammer read a letter from the President of the ALBDC board, Dick Kary, recommending Ryan Nolander be appointed the new executive director, citing the great job he’s done working with the ALBDC board and the center during his tenure. Dick Kary was unable to be here today, but board member, Daniel Otten, was in attendance to show their support. ALEDA staff stepped out of the meeting while a compensation package was proposed and discussed and then returned after the discussion.
Commissioner Brooks thanked Dorman and wished him good luck on his new position. He also thanked the executive committee for their efforts and the process, but would have liked to see Nolander be the interim Executive Director until Dorman leaves. Commissioner Brooks strongly emphasized his vote is nothing against Nolander or his abilities, just the process. On a roll call vote, the following commissioners voted in favor of said motion: Commissioners Ehn, Kehr, Rasmussen, Fligge, Moore and President Skophammer. The following against: Commissioner Brooks. The motion passed 6 in favor; 1 opposed.
11. TAX FORFEITED PROPERTIES
These parcels were discussed at last month’s meeting and Resolution PA-13-15 was put into place in the event the city was interested in them. Although this item was not on agenda; it’s been learned that two of the properties have paid their delinquent property tax and the city has decided they have no interest in the third parcel. Commissioner Rasmussen made a motion not to proceed with acquiring any of these three properties and seconded by Commissioner Ehn. The motion passed 7 in favor; 0 opposed.
12. EX-OFFICIO UPDATE
Freeborn County – Mike Lee, Freeborn County Representative
· In July, the commissioners passed a resolution to offer an incentive of $50,000 towards a veteran’s clinic along with the city’s incentive of the same.
· Freeborn County made an offer of $1.1 million on the railroad property south of Hartland. Commissioner Moore asked if a provision was added in case they want to return it to rail. Commissioner Ehn asked how much was covered by grant money and Mike said no county money was used.
· The county passed a $10 wheel-age tax effective January 1, 2014. Exceptions are: four-wheelers, bikes, classic cars, motorcycles, trailers, and semis, he believes. (Mike later confirmed semis are not included.) The tax should bring in $290K to be spent on county roads.
· The county passed a resolution to secure state funding of the future development of the Blazing Star bike trail.
· There are two workshops coming up to work on the 2014 budget.
· Mike invited new Executive Director Nolander to a commissioner meeting to introduce himself. He said now is the time to request county funding 2014. Mike feels the county commissioners and ALEDA are working together better now.
City of Albert Lea – Chad Adams, City of Albert Lea Representative
· Chad congratulated Ryan and Dan in their new positions and has enjoyed working with them both.
· St. John’s has submitted their project plan to the city. Their project will help out with the Stables area sewer issues. The city is talking to the watershed about them acquiring the eastern half of the former golf course and they are looking for assessments to be waived on this parcel.
· Focus groups continue on the bank building and another RFQ for new development will go out. The art center will give a presentation on occupying the first level of the building at the council meeting tomorrow night.
· A housing developer wants to build six market-rate rental housing units in the Tiger Hills subdivision. The city is talking to the bank owner and neighbors to see if it’s a viable project.
· The city council will be receiving the city’s proposed 2014 budget. The city is looking at a 0% levy with water rates going up and the debt service levy will be discussed.
· There will be a neighborhood picnics partnered with the Vitality Center in Cental Park tomorrow night and next week there will be a couple more. It’s a good time to get feedback from the public.
· August 26 will be the creation of the TIF district for Pro Manufacturing.
· HyVee is on Monday night’s agenda for their approvals.
Chamber of Commerce – None
Randy Kehr had to return to the office earlier.
13. COMMISSIONER ITEMS – None
14. ADJOURNMENT
Commissioner Brooks made a motion to adjourn the meeting, seconded by Commissioner Kehr. The motion carried 7 in favor, 0 opposed. The meeting adjourned at 9:40 a.m.
Filed and attested August 7, 2013.
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President Board Secretary