December 4, 2013 Albert Lea Post Authority Minutes

By Tyler Golberg | December 4, 2013

December 4, 2013

ALBERT LEA PORT AUTHORITY

MINUTES

December 4, 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, December 4, 2013 at 7:30 a.m. by Vice President Jerry Ehn.  Roll was noted by the Board Secretary.
  •  COMMISSIONERS PRESENT:  Vern Rasmussen, Jr., Mike Moore, Jerry Ehn, Ellen Kehr, Keith Fligge and Al Brooks
  • COMMISSIONERS ABSENT:  Nancy Skophammer
  •  EX-OFFICIO MEMBERS PRESENT:  Chad Adams, City of Albert Lea representative; Randy Kehr, business community representative; Chris Shoff, Freeborn County representative
  •  EX-OFFICIO MEMBERS ABSENT:  None
  •  STAFF MEMBERS PRESENT:  Ryan Nolander, Executive Director; Julie Dandrea, Board Secretary; and Lee Bjorndal, City Attorney
  •  STAFF MEMBERS ABSENT:
  •  GUESTS:  Rebecca Gisel, Alliant Energy and Mike Murtaugh, Freeborn Mower Cooperative Services

 

2.     APPROVAL OF MINUTES FROM NOVEMBER 6, 2013 MEETING

  • The minutes from the November 6, 2013 meeting were reviewed.  Commissioner Fligge made a motion to approve the minutes as presented, seconded by Commissioner Brooks.  Vice President Ehn asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

 

3.     RESOLUTION PA-13-23 AUTHORIZING PAYMENT OF CLAIMS

  • The claims were presented for review.  Commissioner Moore made a motion to accept the claims as presented in the amount of $13,429.73, seconded by Commissioner Kehr.  Vice President Ehn asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

 

4.     RESOLUTION PA-13-24 AUTHORIZATION TO RECORD COVENANTS ON PLAZA PARCELS

  • As a condition to the City rezoning the Port-owned parcels on Plaza Street, they have asked if the board would pass a resolution to record covenants on the properties.  The sale to Jensen Excavating had the covenant restrictions put into their deed.  Basically, the covenants don’t allow billboards or mini storage.  Commissioner Fligge moved to approve recording the covenants on the Plaza parcels as described in the resolution.  Commissioner Rasmussen seconded it and motion carried 6 in favor, 0 opposed.

 

5.     EXECUTIVE DIRECTOR’S REPORT

CBOC –VA Clinic – It was announced after the last board meeting the award went to Albert Lea. Chad Adams shared that he met the new veteran’s affairs person this week.  The clinic is hoping to open by 7/1/14.

Jensen Excavating closing – The sale closed November 20th.  As discussed earlier, the easements and covenants are in place.  Site work will begin next year.

Market rate housing project – A map of ALEDA Park was handed out. Staff is working with the city on this project.  The developer is still considering the out lot in ALEDA Park and called last week for permission to do soil borings.  It’s unlikely the property will develop as industrial with housing all around it.  If we get our hard cost out of it, it would be a good deal as there is not much other potential for this lot.  Commissioner Moore had a concern about the development of lot 4 if housing is built next to it.  Executive Director Nolander pointed out a grove of trees that can be left as screening.

There is another piece by Alamco on 9th Street that has marginal potential.  There is no topsoil so the Port barely makes enough on farm rent to pay the property taxes.  It doesn’t fit in our portfolio since the rail was taken out and there isn’t much other use for it.  Staff will put feelers out to see if a farmer or the Albert Lea Elevator wants it.  We pitched this site for the market rate project, but they didn’t like it.  If ethanol ever goes away, the elevator may want to put rail back in.

Enderes’ Tool update – In the agreement with Steve Overgaard, a lower lease rate was given if improvements were made to the building.  Executive Director Nolander met with Overgaard who said he would provide a list before the board meeting of the improvements made.  When he was contacted again for the list, he said he hasn’t had time.  The building is in rough shape.  It’s a unique situation as the Port owns the building and Overgaard owns the equipment.  Currently, he is paying $20K/year vs. nothing if he vacates. The tool sales haven’t come back as Overgaard projected.  He said his long term plan is to be out late next year and move the entire operation to the Progress Castings building; however, he said he would ramp up inventory and give four months’ notice if the Port terminates his lease.  Staff will keep working with him to get his improvement list.

Freeborn Bank Building – Chad Adams gave the update.  There’s a 12/6/13 deadline for letters of interest from developers.  The city has received four already, with three being very experienced.  Two are from the Twin Cities, one from Kansas City, and one is just interested in developing the first floor.  Next Friday, there is a roundtable session to answer questions on tax abatement, TIFS, etc.  There have been 600 hits for the RFP on the city’s website.

DEED Lead – We received an inquiry yesterday from the state for a food operation from Wisconsin looking for a food-grade facility. We pitched them the 19,000 SF in the Ring building.

Business retention visit recap – Executive Director Nolander and Chamber Director Kehr made two visits on Monday – Interstate Molding and Agilis.  They will visit MCHS this afternoon.  The two companies said workforce is their biggest issue.  Both companies see their business going up. Interstate Molding stated they can train people; they just need reliable workers.  Property taxes were another issue for Interstate Molding.  Their property value went from $565K to over $700K.  Executive Director Nolander mediated with the county assessor on their behalf and got the value lowered to $530K.  Obamacare is the other big concern for Agilis.  They will save money by paying the penalty rather than provide the insurance required.  Commissioner Kehr shared she is taking part in Riverland’s strategic planning meeting in Mankato this week and the workforce issue is one of the items they’ll be discussing.

Rules of Decorum – Some port authorities give an opportunity for public input during their meetings so staff is recommending adoption of a general set of rules and decorum for addressing the Board.  Staff used the City’s rules and tweaked them to specify the Port Authority.  The Commissioner Items could be revised to Commissioner/Other items.  City Attorney, Lee Bjorndal suggested the board president could ask if visitors want to address the board at that time.  Chris Shoff said the County Commissioners’ rules are read at each meeting to inform speakers what is allowable.  Formal approval of the rules will take place in January with the other annual resolutions.

 

6.     EX-OFFICIO UPDATE

Freeborn County – Chris Shoff, Freeborn County representative

  • CBOC-VA Clinic was a wonderful example of how the city and county worked together on this project.  He recalled the opening of a new clinic was announced way back in Dec 31, 2007.
  • The County budget passed a 0% levy increase.
  • Interviews for a statewide health improvement program (SHIP) employee have begun with seven candidates.  The resolution to hire has been done so within the next couple of weeks someone should be selected.
  • UP update – The County’s bid was submitted in July.  Chris reached out to his contact that had the regional person call John Kluever to discuss the offer.  The appraisal came in at $1.4 to $1.5 million.  In January, the County will need to do another six month extension if the bid hasn’t been accepted.
  • Next week Chris will attend the annual conference for Association of MN Counties.
  • When the county commissioner assignments are made for the coming year, the arrangement to have Mike Lee, Chris Shoff or John Kluever give the ex-officio report will likely stay the same.

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

  • As reviewed last month, the Blandin group, interviewed 12-14 people for their research and will meet next week in Mankato to discuss the next steps.
  • Chad applied for the IBM grant to receive their technical assistance for three weeks in the area of economic development.  It will be late January to hear if we were awarded.
  • Diversified Central District division has been added to the area around downtown to provide for high density residential and more mixed uses.
  • Downtown open forum meetings will be held to talk about next steps now that the streetscape is completed; i.e. snow removal, flowers, etc.  This will be an opportunity to educate building owners on utilizing historic tax credits for their second stories.
  • Another developer is interested in building market rate housing on the corner of Highway 69 and 9th Street, around 40-50 units.  It will be a tight timeline to begin in spring.  There may be a tax abatement request.
  •  A small group including the YMCA, the City and education talking about forming a community center.
  • There will be a joint meeting between the Port Authority and the City Council on March 20, 5:30 p.m.
  • The City is going to U of M to receive a plaque in recognition of the innovative things the City is trying to do.

Chamber of Commerce – Randy Kehr, business community representative

  • Yesterday was the grand opening for Kwik-Trip.  Many of the Chamber ambassadors were there as was the entire Zietlow family.  Kwik-Trip donated $5k toward the soccer operation at Edgewater Park.
  • The ambassadors will be attending the 40th Anniversary today for Mrs. Gerry’s.
  • The Senate capital investment group is coming here to tour Fountain Lake and downtown, mainly focusing on the lake.  There is a $7.5 million request for the Fountain Lake cleanup project.
  • The Employee reward program with MCHS is keeping the chamber staff busy stuffing envelopes with chamber bucks.  The numbers are significant.  As of yesterday, Home Depot is back accepting the bucks that are spendable in Austin or Albert Lea.
  • The Chamber will offer low-priced online training, about $250, for assorted courses. Members get 10% discount and the courses will also be available to community.  This will work better for businesses rather than sending employees away to half-day of training.

 

7.     COMMISSIONER ITEMS

  • Jerry Ehn announced he has accepted a different position, relocating outside of Albert Lea.  His board position will need to be reassigned.  His term goes through 2017.  As per the Port by-laws, the Mayor appoints someone to fill out the term.  They must be a city resident to be on the Port board.  A decision will be made over the next few weeks.  The board agreed it would be beneficial to have someone from business or industry or maybe a downtown business owner.

 

8.     ADJOURNMENT

  • Commissioner brooks made a motion to adjourn the meeting, seconded by Commissioner Kehr.  The motion carried 6 in favor, 0 opposed.  The meeting adjourned at 8:40 a.m.

 

 

Filed and attested December 4, 2013.

Posted in Minutes