December 1, 2010 Albert Lea Post Authority Minutes

By Tyler Golberg | December 1, 2010

December 1, 2010

ALBERT LEA PORT AUTHORITY

MINUTES

December 1, 2010

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, December 1, 2010 at 7:30 a.m. by President Ellen Kehr.  Roll was noted by the Board Secretary.

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

COMMISSIONERS ABSENT:  None

EX-OFFICIO MEMBERS PRESENT:  Randy Kehr, business community representative and Patrick McGarvey, interim City Manager

EX-OFFICIO MEMBERS ABSENT:  Christopher Shoff, Freeborn County Representative

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

STAFF MEMBERS ABSENT:  None

GUESTS:  John Kluever, Freeborn County Administrator; Greg Stiles, citizen

2.      APPROVAL OF MINUTES FROM NOVEMBER 3, 2010 MEETING

The minutes from the November 3, 2010 meeting were reviewed.  Commissioner Fligge made a motion to approve the minutes as presented, seconded by Commissioner Ehn.  The motion carried 7 in favor; 0 opposed.

3.     RESOLUTION PA-10-20 AUTHORIZING PAYMENT OF CLAIMS

The claims were presented for review.  Commissioner Rasmussen made a motion to approve Resolution PA-10-20 authorizing payment of claims in the amount of $19,835.12 seconded by Commissioner Moore.  The motion carried 7 in favor; 0 opposed.

4.      RESOLUTION PA-10-21 TRANSFER OF FUNDS

Executive Director Dorman explained funds are transferred from the real estate fund to the general operating fund semi-annually or as needed.  The Port Authority earns the majority of its cash in the Real Estate fund, but the majority of expenses are in the General Fund.  There was a transfer of $150,000 made in June and another of $125,000 in November.  Commissioner Fligge made a motion to approve Resolution PA-10-21 to transfer funds from the real estate fund to the general fund for operating expenses.  Commissioner Ehn seconded and the motion passed 7 in favor; 0 opposed.

5.      ALMC PROJECT

Executive Director Dorman gave a brief update on this project.  Mayor Rasmussen has asked him to take a more direct role.  Springsted and Associates are coming to Albert Lea today for a meeting.  All options are being discussed, including surface parking and possible tax credits.  All involved will sit down together so everyone hears the same information.  Director Dorman recognized Mayor Rasmussen on his efforts with the project.   Commissioner Ehn applauded the efforts to bring all parties together.  The ALMC has been approved to spend $4 million on the project.

6.      EXECUTIVE DIRECTOR’S REPORT

  • ALEDA Industrial Park – Executive Director Dorman said the City Engineer and ZRT continue to work with the contractor to resolve construction issues on 14th St. in the ALEDA Industrial Park.  The City has not released either the contractors bond nor the payment retainage.
  • Succinic Acid Plant – Director Dorman informed the Board that this prospect has excluded Minnesota from consideration.  This de-icer manufacturer will likely locate in Iowa; the company reports that Iowa has a more favorable business climate including investment tax credits that Minnesota does not offer.

Economic Development – Director Dorman plans to provide information to the Coalition for Greater MN Cities regarding economic development issues.  The Coalition will be providing information to Governor Elect Dayton.  One example is Minnesota’s 9.8% corporate tax, which is the highest in the nation.  Interim City Manager McGarvey commented that Iowa’s incoming governor wants to lower their property taxes which will make it even more difficult for attracting new business to Minnesota.  Commissioner Rasmussen would like all the board members to receive a copy of report Director Dorman sends to the Coalition and commented that we should continue getting information out to people to make them aware of the problems faced in economic development in Minnesota. On a positive note, Kevin Kelleher from DEED continues to send things our way because he knows we will respond quickly and aggressively.

  • Project Lightning – Executive Director Dorman said if this project goes forward, this company may purchase an existing building and, in turn, that business may move into the ALEDA spec building.
  • Gametec – Executive Director Dorman and Assistant Director Nolander met with Gametec officials recently.  They would like to use the building as warehouse space and asked for a rent reduction.  Their lease looks high versus other properties, but it’s because the Port pays the real estate taxes.  They currently pay $3.75/ft. and want it halved.  We asked for a one year commitment at $2.75/ft.  They came back wanting a six-month commitment with another six-month option which makes it appear they will probably leave in six months.  After discussion, it was decided to offer them one year at $2.75/ft. or month-to-month at $3.75/ft.
  • Al Larson Building – The Port Authority does not own this property, however, are helping him market this property to a potential Minnesota-based company to use as a distribution center.     A site selector was in last week and, after looking at the spec building that was too small and the Rainbow and Universal Coop buildings which were harder to subdivide, thought Larson’s building would fit their needs best.  If this company decides to warehouse here, it could bring 10-12 new jobs.
  • Other Leads – Information was sent to a Canadian firm that builds tanker trailers and is interested in SE Minnesota.  They didn’t give a reason why they’re interested in this part of the state.  Also, a data farm lead came from the state which would be a good fit for either the ALEDA park or the I35/I90 park.  Director Dorman said we are putting together aggressive bids on both projects.  Also, there has been talk from local businesses about expansion.

7.     EX-OFFICIO UPDATE

Freeborn County

  • John Kluever said seven people have filed for the 5th district county commissioner vacancy.  The primary will be in January with a special election in March.
  • Two workshops are planned – one for salary requests and other personnel issues, the other for budget and proposed property taxes.
  • The recount is done and the voting machines worked.  The only changes were with voter intent, e.g., circling the name instead of filling in bubble.
  • Chemical Dependency Center is closing.  The Human Services Board met with court officials and others to review this contract.  The courts felt the quality and service would be better if provided in-house and it was decided not to renew the $140,000 contract.  Director Brooks asked about staffing issues and John Kluever said Human Services has hired an additional person.

City of Albert Lea

  • Mayor Rasmussen met one of his goals in hiring an interim city manager, Patrick McGarvey.
  • The downtown bank project is in the forefront currently and all options are being explored.
  • The levy process will be adopted at the next city board meeting.  He doesn’t have a solid feel of where it will end up.
  • The hiring of a finance director is moving along and the field has been narrowed to six.  The city of Austin will help with the interview process.
  • In the near future the city will begin to look at hiring a permanent city manager.

Chamber of Commerce –

  • Randy Kehr reported they had their annual meeting in November.  Anytime Fitness was named small business of the year, Security Bank was named medium business of the year, and Mrs. Gerry’s was named large business of the year.  They also honored several distinguished local alumni.
  • The Chamber is in the process of moving into their new offices and will host an open house on Tuesday, December 7th from 4:30-6:30.
  • Thursday, December 9th at 7:00 p.m., there will be a public hearing at Riverland with Alliant Energy.  Randy encouraged all customers to attend.  Mayor Rasmussen asked if anyone knew customers that would be willing to testify at the meeting for Flaherty and Hood.
  • The Chamber will host an upcoming forum for the seven county commissioner candidates.

8.      COMMISSIONER ITEMS – None

9.      ADJOURNMENT

Commissioner Moore made a motion to adjourn the meeting, seconded by Commissioner Books.  The motion carried 7 in favor, 0 opposed.  The meeting recessed at 8:30 a.m.

 

Filed and attested December 1, 2010.

 

Ellen Kehr, President                                                              Julie Dandrea, Board Secretary

Posted in Minutes