January 7, 2015 Albert Lea Post Authority Minutes

By Tyler Golberg | January 7, 2015

January 7, 2015

ALBERT LEA PORT AUTHORITY

MINUTES

January 7, 2015

Regular Meeting

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, January 7, 2015 at 7:30 a.m. by President Fligge.  Roll was noted by the Board Secretary.
  • COMMISSIONERS PRESENT:  Vern Rasmussen, Jr., Mike Moore, Ellen Kehr, Keith Fligge, Al Brooks, Nate Jansen, and Mark Heinemann
  • 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:  Ginny Larson – MCHS

Executive Director Nolander introduced Ginny Larson to the board.

2.     ELECTION OF OFFICERS FOR 2015

  • President:  Ellen Kehr
  • Vice President:  Vern Rasmussen, Jr.
  • Treasurer:  Mike Moore

Commissioner Brooks made a motion to accept the officers for 2015 as presented, seconded by Commissioner Heinemann.  President Fligge asked for any discussion and hearing none, the motion passed 7 in favor, 0 opposed.

3.     APPOINTMENT OF OFFICERS FOR 2015

  • a.      Board Secretary:  Julie Dandrea
  • b.     Assistant Treasurer:  Mardy Oyer (Hammer Dieser Mangskau)

Commissioner Brooks made a motion to accept the officers for 2015 as presented.  Commissioner Moore seconded and the motion passed 7 in favor, 0 opposed.

4.     APPOINTMENT OF EX-OFFICIO BOARD MEMBERS FOR 2015

  • City Representative:  Chad Adams
  • County Representative:  Mike Lee
  • Business Community Representative:  Randy Kehr

Commissioner Brooks made a motion to accept the ex-officios for 2015 as presented.  Commissioner Kehr seconded and the motion passed 7 in favor, 0 opposed.

5.     APPROVAL OF MINUTES FROM DECEMBER 3, 2014 MEETING

  • The minutes from the December 3, 2014 meeting were reviewed.  Commissioner Rasmusen made a motion to approve the minutes as presented, seconded by Commissioner Heinemann.  President Fligge asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.

6.     RESOLUTION PA-15-01 AUTHORIZING PAYMENT OF CLAIMS

  • The claims were presented for review.  The large payment to Alliant Energy was noted.  An agreement was entered into years ago whereby Alliant provided a $500,000 loan to the Port Authority to help build an industrial park.  An annual payment was paid every year, but the final payment was missed last year because Alliant didn’t invoice the Port.  Commissioner Heinemann made a motion to accept the claims as presented in the amount of $54,096.88, seconded by Commissioner Jansen.  President Fligge asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.

7.     RESOLUTION PA-15-02 DESIGNATING DEPOSITORIES AND SIGNATORIES FOR WITHDRAWAL OF FUNDS

  • Depositories:  US Bank, 4M Fund, Farmers State Bank, Produce State Bank, Wells Federal Bank, Home Federal Bank, American Bank, Security Bank MN and Wells Fargo Bank
  • Signatories:  President, Treasurer and Executive Director

President Fligge noted the list of depositories and signatories.  Commissioner Jansen made a motion to approve Resolution PA 15-02 as presented.  Commissioner Rasmussen seconded and the motion carried 7 in favor, 0 opposed.

8.     RESOLUTION PA-15-03 SETTING MEETING DATES, TIMES AND LOCATION FOR THE PORT AUTHORITY

  • First Wednesday of the month at 7:30 a.m. to be held at 2610 Y.H. Hanson Avenue

Commissioner Rasmussen made the motion to approve Resolution PA-15-03 as presented and Commissioner Moore seconded.  The motion passed 7 in favor, 0 opposed.

9.     RESOLUTION PA-15-04 AUTHORIZING ROUTINE CLAIMS TO BE PAID MID-MONTH

  • Executive Director Nolander reminded the board this resolution will be renewed annually in order to pay routine claims before the end of the month so as not incur late charges.  Commissioner Kehr made a motion to accept Resolution PA-15-04.  Commissioner Jansen seconded and the motion passed 7 in favor, 0 opposed.

10.  RESOLUTION PA-15-05 RULES FOR ADDRESSING THE PORT AUTHORITY/RULES OF DECORUM

  • Executive Director Nolander briefly went over the rules adopted last year; speaking time is limited to three minutes, one topic, addressed to the board as a body and no one individually.  Commissioner Moore made a motion to adopt the resolution as presented and Commissioner   Brooks seconded.  President Fligge asked for any discussion and hearing none, the motion passed 7 in favor, 0 opposed.

11.  EXECUTIVE DIRECTOR’S REPORT

  • MPCA Water Quality Rules – A meeting was held by city staff attended by major water users, Randy Kehr, and Executive Director Nolander.  The state is trying to limit phosphorus from the water released after the treatment process. These rules strongly affect Albert Lea and the future infrastructure needed could cost up to $20M.  Dan Dorman from the Greater MN Partnership also participated and has met with several other communities.  GMNP hasn’t budgeted to make this issue a priority and is looking for help to fund it.  Chad Adams urged industries to lobby their legislatures.
  • MN might be more aggressive now, but rules like this could ultimately apply to all states.  Albert Lea is working off an old permit right now, waiting before re-permitting with the state.  If these rules are implemented, it could cause residential rates to be increased $75-100 per month and the City would have no control over this.  The Legislature needs to tell MCPA to conduct a peer review.  Large users were very appreciative of being involved and asked to meet together more often to keep them informed of developments.
  • Mrs. Gerry’s Update –In disputation over their property tax value, the County and Mrs. Gerry’s each brought in someone to value the property now.  An independent valuation will be done that will go to a higher authority if they still can’t agree. A TIF deal for their expansion can’t be structured until the valuation is resolved.
  • The Bloomers rejected the City’s offer for their property.  Another neighbor has a piece of property that could be available for a regional retention pond.  If Mrs. Gerry’s must expand their own pond, it’s possible to allocate TIF dollars to offset this added cost.
  • St. John’s Update – Chad Adams gave the update.  St. John’s has received a TIF term sheet from the City, but hasn’t responded yet.  An agreement appears much closer than what it had been.  They still have a gap and are looking at alternative funding sources.
  • Downtown projects – Hal Davis from the DIY network has been on hold with the holidays.  Staff plans to meet and tour the VFW and Midwest Antique buildings. We have toured him through many other buildings downtown.  The Country Tack, now the Country Knack & Tack, is open again.  The owner’s niece is running it.
  • The Port may be in a position to buy a building downtown and lease it to an individual on a five-year contract and then sell it to them on a contract for deed.  Included are two housing units in the building.  We would not be responsible for the build-out.  A private party may do the deal and we won’t get involved if they can handle it.
  • Bridon Project Update – Bridon needs to expand for a new process and likes the location of the Ring building.  It would require a major renovation to the south end of the Ring Can building and we are currently waiting to get specs from their equipment manufacturers.  The 20’ ceiling would need to go to 40’ for extrusion.  There may be enough space for an expansion outside.
  • Enderes Building Update – Executive Director Nolander visited the building on Friday.  Northbridge Tool is moving equipment out and has turned the heat off, but not the water so he called the City to shut the water off at the street.  Northbridge Tool is unsure how to move the big presses out so when the building is demolished they asked if the roof can be taken off first to get equipment out with a crane.  The only way that would work is if they share the cost by paying the extra demo expense.  To date the legal fees are over $30K, plus add in the demo costs, possible clean-up issues, and there could be $35K an acre in costs for land we got for “free.”
  • W. 9th St. Property – The Port owns 37 acres near Alamco.  At the time it was thought having a rail spur there would be beneficial, but now the rail is gone and the land has been rented as cropland.  Last year the parcel was double-assessed for improvements to the two roads that border it.  This property doesn’t fit our portfolio as an industrial property.  Staff approached Albert Lea Elevator who had some interest.  The person farming it isn’t going to farm it anymore.  Staff has talked to other farmers and one of them has some interest.  An offer was made and it included splitting the assessments.  No tile and limited topsoil are on the property so it’s not great producing cropland.  It’s doubtful that it’s worth much for development.  Executive Director Nolander would like to do a request for proposals, send out to interested parties, and also publicize its availability.  It’s currently zoned I-2.  Commissioner Rasmussen suggested getting what we can and get out of it, but stipulate that buyer must contact the City to see if there are any issues with their planned use.  The Board directed staff to sell the property if $75K can be netted.

12.  EX-OFFICIO UPDATE

Freeborn County – Mike Lee, Freeborn County Representative

  • At the 12/16/14 meeting, the tax levy was set with a 3.4% increase.  The increase covers the bond paid for road repairs, a new shop building, and another tier of insurance for the Affordable Care Act.
  • The County has received another six-month extension on the abandoned rail property.
  • At Tuesday’s workshop, the commissioners will talk about a possible sales tax to pay for road repairs.  There has been a shortage of $6M each year for road maintenance.
  • Income on the ICE contract has steadied the last two years.  The new sheriff is trying to increase the contract, however, the feds set up the contract.
  • Mike Lee extended his thanks to Commissioner Fligge for his years of service and said he would be missed.

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

  • The council approved a 7% water rate increase which was down from the proposed 9%.  They will conduct a water and sewer rate study in 2015.  The City may have to bond for future projects.
  • The City was contacted yesterday regarding an inter-city passenger rail from the Twin cities to Albert Lea.  This is a whole different project that the one to Rochester.  They will also talk to Iowa to get them on board.  Initially, they would like a support letter for the initiative.  Chad suggested giving them Mike Moore’s name as the resident rail specialist.  It may not happen for 10 years, but the project should get in MnDot’s queue.  Commuter rail could use existing rail with some capital expense.  Commissioner Rasmussen made a motion directing staff to write a letter of support, copying Mike Moore, on behalf of the Port Authority and economic development. Commissioner Moore seconded and the motion carried 7 in favor, 0 opposed.
  • Chad and Ryan continue to work together on an office incubator for the ALEAP program.
  • Christian & Peterson law practice approached the city about purchasing their building.  The city council asked if ALEDA would partner with them on an appraisal.  Executive Director Nolander agreed to share the appraisal cost, but asked the board to think of what’s realistic for ALEDA’s involvement?  If the land is purchased to end up as a parking lot, it’s not really categorized as economic development.
  • Clint Jayne with Cohen Esry is still looking at tax credits for the Freeborn Bank building and will look at a new full application in June to possibly score more points.  The City council will look at extending a contract with them for another year.
  • Market rate housing project is on hold right now.  The city will try to get assistance from the state with tax credits.  The GMNP is pushing the state to help with this problem as there will be further erosion of rural communities if there is no place to live in them.

Chamber of Commerce – Randy Kehr, business community representative

  • Chad Adams, Randy Kehr, and others are going to the Session Priorities tonight where preliminary footwork starts with new legislators.
  • The Chamber’s Government Affairs Committee meets tomorrow to identify issues.  As mentioned last month, the MN Chamber got involved with the Alliant sale.  A few members are driving the issue not entire communities.  Our chamber sent a letter saying it doesn’t support the MN Chamber’s position.  On Wednesday, January 21, there is a public meeting at the high school in regards to the Alliant sale.
  • The Chamber board sent a letter to the mayor and the city council with their position of reorganization not being a bad thing and urging them to continue to look at it.
  •  A bottle of wine was displayed from the local Three Oak Winery that’s for sale at Hy-Vee.  They hope to produce a number of wines next year and to make it a destination place.

13.  COMMISSIONER/OTHER ITEMS

President Fligge thanked everyone for sending in their evaluations.  Board Secretary, Julie Dandrea tabulated them and Commissioner Rasmussen, with Commissioner Kehr on speakerphone, and himself met with Executive Director Nolander to review the evaluations.  Congratulations were given on the job he’s doing.

14.  ADJOURNMENT

Commissioner Brooks made a motion to adjourn the meeting, seconded by Commissioner Jansen.  The motion carried 7 in favor, 0 opposed.  The meeting adjourned at 8:50 a.m.

 

Filed and attested January 7, 2015.

Posted in Minutes