February 5, 2014 Albert Lea Post Authority Minutes

By Tyler Golberg | February 5, 2014

February 5, 2014

ALBERT LEA PORT AUTHORITY

MINUTES

February 5, 2014

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 5, 2014 at 7:30 a.m. by President Nancy Skophammer.  Roll was noted by the Board Secretary.
  • COMMISSIONERS PRESENT:  Vern Rasmussen, Jr., Mike Moore, 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:  Ryan Nolander, Executive Director and Julie Dandrea, Board Secretary
  • STAFF MEMBERS ABSENT:  None
  • GUESTS:  Nate Jansen – QPP, Inc. and Mike Murtaugh – FMCS
  • Executive Director Nolander introduced Nate Jansen, who will fill out Jerry Ehn’s term.  Nate gave an overview of his background.  Ryan believes he will be a good fit with his varied labor and business experience.  Nate was attending as a guest as the process requires the mayor to appoint him before he can be a voting board member.

2.     APPROVAL OF MINUTES FROM JANUARY 2, 2014 MEETING

  • The minutes from the January 2, 2014 meeting were reviewed.  Commissioner Rasmussen made a motion to approve the minutes as presented, seconded by Commissioner Brooks.  President Skophammer asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

3.     RESOLUTION PA-14-07 AUTHORIZING PAYMENT OF CLAIMS

  • The claims were presented for review.  Executive Director Nolander noted the worker’s compensation insurance payment, DEED dues, and SMIF contribution.  The law office of Kennedy and Graven is still doing title work on the Enderes building.  Commissioner Fligge made a motion to accept the claims as presented in the amount of $18,778.66, seconded by Commissioner Moore.  President Skophammer asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

4.     EXECUTIVE DIRECTOR’S REPORT

  • Alliance Benefit Group update – There was a meeting last month to discuss their future plans.  Ideally, they would like to have all their business in one building, but could move the consultants to a different site.  They suggested a floor of the bank building and also looked at the Alliant building, which they liked.  The Knudson building wouldn’t work.  Capital is their biggest issue and their type of business doesn’t have many hard assets – mainly contracts.  Ryan sent a list to ABG of information required for loan consideration.  They want to do multiple acquisitions over the next few years which could bring 30+ good-paying jobs.  Commissioner Moore asked about the status of the VFW building.  Someone bought it 18 months ago and ABG had already looked at it.  It needs a lot of work.  Wherever they expand downtown, there will be parking issues long-term.  Staff will continuing working with the city and ABG.
  • Zumbro River Brand update – Walls are up on their addition and they hope to be operational by March.  Their bank approached Ryan last week as they are looking for partners to help finance ZRB’s new equipment needs.  There are available IRP funds.  ZRB also asked about buying the spec building.  If we sell the building, the Port would have to buy or build a new asset to replace the income as this is what we operate on.  They will add 15-20 new jobs with their new equipment.  Commissioner Rasmussen suggested enticing them to move down the 30 jobs they have in Owatonna; however, they’ve stated they don’t wish to move that operation.  Staff will continue working with them.
  • Manufactured housing project – Named Crowne Pointe Housing, this was talked about last fall.  It’s modular housing for the Bakken oil fields in ND and they claim to have a relationship with Panels Plus.  Julie showed the owner and another employee the Ring building south end space.  They need an 18’wide overhead door.  They want a month-to-month lease after a year commitment.  They also expressed interest in a lot in ALEDA Park.  If they buy a lot and build, we would let them out of lease early.  Long-term the oil field could dry up and they would transition to single family units around country.
  • WI food-grade company – This lead from DEED expressed interest earlier, and is now back on the table.
  • Old Wal-Mart building update – Robert Hoffman represents the building.  There seems to be a lot of interest lately, but no specific project now.  The building owners now own the land and building.  Not officially listed, maybe will be in March.

Business retention visits:

  • Bridon Cordage – They had the 2nd most profitable year in 2013.  They have 120 employees; run three shifts and are not having problems finding employees. Their parent company, Universal Coop is facing some business model changes in the near future.
  • Cargill – They need more capacity and may put money into new equipment.  They do 48 million lbs. per year.  An issue for them is the cost of labor and benefits which are the most expensive in their business unit.  Water and sewer rates are reasonable here compared to other plants.  Another issue is 25% of their maintenance group retires over the next few years.  They discussed having Cargill’s head of maintenance and their HR person meet with Dr. Nuga to discuss internships.  Riverland is looking at shorter certificates for these types of programs.  Most businesses are willing to train their own employees if Riverland gives them the basics.  Nate sees a lot of the core maintenance jobs are the same in the local industries.  President Skophammer asked if there are promotions for training opportunities for unemployed service men and women.  Director Kehr will bring this idea to the next Riverland retreat.
  • SAR, Inc. – It was a great visit.  It was a culture adjustment for employees with having on-site management and took a while to get their trust.  There are 32 employees.  The owner is an efficiency expert and asked for employee input in moving equipment around to be more productive.  His wife quit her job and is also there every day.  They recently purchased Tri-Star, a metal working shop in Kasson, which complement each other as they’re similar businesses.  A full- time sales person was gained and is now cross-selling for both businesses.  They are a great local success story and said they wouldn’t be here without all the help from the entities who partnered together on their loan gap. They would be willing to have an intern program.  Discussion followed on how to advertise these success stories and it was suggested we could include them on our website.

5.     EX-OFFICIO UPDATE

City of Albert Lea – Chad Adams, City of Albert Lea Representative (Chad spoke first and left for another meeting at 8:45 a.m.)

  • The City received three formal proposals on the bank building; two viable ones for both buildings and a third from the Art Center for the first floor and also as a  partner with one of the other respondents.  There are many questions to sort out and a selection is possible by the end of the month.  Occupancy is planned for late 2015.  One proposal would cost more based on proposed use.
  • The Blandin Leadership small group met with Ryan to talk about the entrepreneur program.  They will come in March or April for a board presentation.  The Blandin group plans to meet with Randy to update him and get his thoughts about entrepreneurship and also meet with his board. A core group of everyone to design a meeting is needed. There is a separate small group working on the Blazing Star Landing and a potential project with the Y.
  • Now there are three parties interested in building market rate rental housing.  The third is looking at space behind Home Depot.  The word is out that there is demand here.  John Ford with HRA is going to talk to the County to justify why rental housing is needed and it’s hoped the County will join in to fund a study.  The Mayor and Chad met with John Chadwick to talk about properties and infrastructure.
  • The City continues to work on the infrastructure needs for the St. John’s project.
  • The City is working on potential redevelopment areas for long-term planning.
  • Freeborn County – Mike Lee, Freeborn County Representative
  • UP talks are still going on and there should be an update in March.
  • HRA is bringing a request for funding for a housing study at Friday’s meeting.
  • Bids for a new road shop on CR 22 will be going out and depending on the bids, a decision will be made if the county will go ahead with a new building or put the money into road repairs instead.
  • State Line Road from Emmons to Gordonsville will be resurfaced this summer and a culvert will be put in State Line Lake.

Chamber of Commerce – Randy Kehr, business community representative

  • The gourmet auction was last Friday at Wedgewood.
  • The Big Freeze is coming up in a couple of weeks.
  • Randy will attend the Legislative Session Priorities on Feb. 25th, as will Ryan.  Fountain Lake dredging will be at the top of our list.  Randy met with local legislators last week.
  • The Coalition of Greater MN Cities has an action day on March 5th at the legislature.  Job training and broadband are the largest needs.  Ryan will be attending with Vern and Councilman Baker.
  • Alliant’s natural gas sale to Merc is being finalized.

6.     COMMISSIONER/OTHER ITEMS

  • President Skophammer spoke about the Farmers State Bank transition article in the Tribune yesterday.  She feels it’s good for community to keep the ownership locally and the sale will be seamless with no name change or disruption to customers or employees.  Congratulations and thanks from the board were expressed.
  • Commissioner Brooks commented on recent Tribune editorials.
  • Commissioner Rasmussen said the city council and staff met last week and talked about tax base opportunities and asked the staff and board to let Vern or Chad know of opportunities.  He added that we need to build our tax base so as not to cut service, even if we may take a loss short-term, we should take out-of-the-box steps.

7.     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 8:50 a.m.

 

Filed and attested February 5, 2014.

Posted in Minutes