February 2, 2011 Albert Lea Post Authority Minutes

February 2, 2011

ALBERT LEA PORT AUTHORITY

MINUTES

February 2, 2011

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, February 2, 2011 at 7:30 a.m. by President Vern Rasmussen.  Roll was noted by the Board Secretary.

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

COMMISSIONERS ABSENT:  None

EX-OFFICIO MEMBERS PRESENT:  Randy Kehr, business community representative and Pat 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:  Chuck Paczkowski and Mike Lee, citizens; Rebecca Gisel from Alliant Energy; and John Kluever, Freeborn County Administrator

2.     APPROVAL OF MINUTES FROM JANUARY 5, 2011 MEETING

The minutes from the January 5, 2011 meeting were reviewed.  Commissioner Fligge requested the minutes be changed to reflect his question on the status of unpaid real estate taxes on the old Kahler Motel.  The answer was the taxes remain unpaid.  Discussion followed.  Commissioner Moore made a motion to approve the minutes with this revision, seconded by Commissioner Fligge.  The motion carried 7 in favor; 0 opposed.

3.     RESOLUTION PA-11-04 AUTHORIZING PAYMENT OF CLAIMS

The claims were presented for review.  Commissioner Ehn asked about the payment made to “Southern Minnesota” as shown on claims.  Executive Director Dorman explained this is for annual membership dues paid to the Southern Minnesota Initiative Foundation.  Commissioner Brooks made a motion to approve Resolution PA-11-04 authorizing payment of claims in the amount of $13,041.52, seconded by Commissioner Skophammer.  The motion carried 7 in favor; 0 opposed.

4.     BROADWAY RIDGE FUND

Commissioner Moore gave the board some background.  Several years ago this fund was started for the purpose of giving low interest loans for exterior improvements and facades of historic buildings downtown.  Pat McGarvey said Austin has a grant fund for the same purpose which has been used with great success with their Port Authority administering it.  Commissioner Ehn asked how Austin’s program works.  McGarvey said they require matching funds from the owner.  They’ve done about 30 storefronts.  Hormel has been a corporate sponsor.  McGarvey is working on changing some of the language in the program.  Ownership must be maintained for five years to qualify for a total grant so as not to use the money to fix up their building to sell.  Commissioner Skophammer asked about the criteria to qualify for the grant.  Some of the requirements are that plans would be drawn by an architectural firm to meet historical condition and the owner’s funds would be put in up front.  An owner could be wealthy and still qualify for this grant.  The city would like to see three or four grants given this year.  Commissioner Brooks asked John Kluever if there would be any issues with the county regarding this program.  Pat McGarvey will send John copies of the paperwork for informational purposes.

5.     ALMC PROJECT

Executive Director Dorman said the project continues to progress.  The ball is in ALMC’s court now that they have an M.O.U. in place.  The next step is to make sure the numbers are accurate.  The parking lot behind would go with the building.  This was never a municipal lot.  As of now, there are no plans for a parking ramp.  If the city is able to get tax credits, they may be able to do more parking downtown as there is a need for it.  Commissioner Fligge asked about parking to the east and where housing may possibly be condemned.  The city will certainly buy property when they have the chance.  President Rasmussen commented on the fact that if Albert Lea needs more parking downtown, it’s a good thing.

6.     EXECUTIVE DIRECTOR’S REPORT

• Tax Issues – Commissioner Fligge asked for clarification regarding tax issues on foreclosed properties bought at sheriff’s auctions at a discounted rate.  According discussion that followed, the previous owner has a one-year time limit to buy the property back.  The new owner is not required to bring delinquent real estate taxes up-to-date.  As in the case of the “old Kahler” (Knights Inn) motel, what the new owners did by buying it and not paying the overdue taxes is legal.  It takes seven years of delinquency before the city can go after the property.  The penalties and interest keep adding up.
• Commissioner Fligge and Executive Director Dorman are working on a transition with an existing business to a new owner that looks promising.  A common mindset of the public is that a lot of free monies are available; however, there are not as many incentives as people think.  There is a revolving loan fund from the state of Minnesota available to those who meet the qualifications.
• The Port Authority annual audit is coming up.   LarsonAllen conducted the Port Authority audit last year at a cost of $5,300.00.  In past years, the City Finance Director has written the annual audit report for a cost of $1,000 to the Port. This year, the Port is going to have to contract with another party for this report. Larson Allen had bid $2,000 to write this report.  Although board action is not required, Executive Director Dorman asked for guidance on whether to continue with the current arrangement, bid the audit out or wait until next year to bid out.   Commissioner Ehn asked about the time line.  Commissioner Moore feels there would be efficiencies, but suggested looking around at other options if time permits.  Executive Director Dorman will look into the cost other firms would charge for this.
• Project Lightning – Executive Director Dorman said we are still waiting for a decision on this project.  The company involved would buy an existing building and portion of a business here.  The standstill is due to differences in the value of the building.  The existing business must be willing to sell since they have a profitable business now.

7.     EX-OFFICIO UPDATE

Freeborn County

• John Kluever said the county commissioner meetings are now back to normal schedule.  February meetings will be on the 8^th and 22^nd.
• On March 2, the city and county will have a joint meeting.
• Lois Ahern, the public health nurse, is retiring the end of February.  Randy Tuchtenhagen in environmental services is also retiring with a phased out option agreement.
• Bent Tree is going commercial by the end of March.
• The numbers are not solid yet on what the state deficit will be.
• John discussed the lengthy process in place to get the Union Pacific to abandon the railroad tracks from South Broadway to Hartland.  This consists of 12 miles and would be used for a public trail that intersects with the bike trail.  Grants will be written for both state and federal funding.

City of Albert Lea

• The goal is still to have the memo of understanding between the City and the ALMC finalized by February 28.
• The streetscape project has a huge price tag.  However, it could be split into two areas:  Main Street to Fountain Street and Main Street to Front Street. The State DOT controls the right-of-way south of Main St. and they have upgrades in their long term plan.
• Pat is leaving early to meet with Austin officials to discuss the opportunity to share their city’s finance director.  For this to happen, both city councils would have to sign agreements.  This could save Albert Lea $40,000-50,000 per year.  Currently, Albert Lea is using a consultant when needed.
• If the City lost all LGA real estate taxes could increase by $394 on a $100,000 home and increase by $1,000 on a $100,000 business.  McGarvey wants the city council to start exploring options now.  He is going to the capital next week to defend the city’s position on LGA.  President Rasmussen said he knows cuts will have to be made but should be fair across the board.  (Pat McGarvey left at 8:30.)

Chamber of Commerce

• Randy Kehr spoke more about the proposed LGA cuts.  The first proposal sent by the MN Chamber said “eliminate” LGA funding; now it’s been revised to say “reduce.”  There is disparity between property-rich cities.  He has been conferring with other Chambers and Rich Murray.
• Passed resolution regarding Lessard-Sams funding to do land acquisition on Albert Lea Lake.
• Passed resolution regarding medical reimbursements to level the field between the metro and non-metro area.
• Today is career day at Southwest Middle School.
• A forum is planned for the county commissioner race and candidates for the city council seat before the election.
• The Big Freeze will be February 18-20.  Lots of events and some new ones are planned.  Both lakes will be used.

8.     COMMISSIONER ITEMS

Evaluations and recommendations have been finished on Director Dorman’s review and were open for approval and questions.  With none heard, Commissioner Fligge moved to approve Executive Director Dorman’s review.  Commissioner Moore seconded it.  Motion passed 7 in favor; 0 opposed.

9.     ADJOURNMENT

Commissioner Brooks made a motion to adjourn the meeting, seconded by Commissioner Kehr.  The motion carried 7 in favor, 0 opposed.  The meeting recessed at 8:45 a.m.

 

Filed and attested February 2, 2011.