July 1, 2009 Albert Lea Post Authority Minutes

By Tyler Golberg | July 1, 2009

July 1, 2009

ALBERT LEA PORT AUTHORITY

MINUTES

Wednesday, July 1, 2009

7:30 a.m.

Wedgewood Cove Golf Club

 

  • The Regular Meeting of the Albert Lea Port Authority was called to order on Wednesday, July 1, 2009 at 7:30 a.m. by President Ellen Kehr and roll was noted.

COMMISSIONERS PRESENT: President, Ellen Kehr; Commissioners: Al Brooks, Paul Field, Keith Fligge, Mike Moore, and Vern Rasmussen Jr.

COMMISSIONERS ABSENT: Nancy Skophammer.

EX-OFFICIO MEMBERS PRESENT: Randy Kehr, Business Community representative; Chris Shoff, Freeborn County representative; Victoria Simonsen, City of Albert Lea representative (arrival 8:25 a.m.).

EX-OFFICIO MEMBERS ABSENT: None.

STAFF MEMBERS PRESENT: Dan Dorman, Executive Director; Ryan Nolander, Assistant Director; Nanciana Jensen, Board Secretary.

STAFF MEMBERS ABSENT: None

GUEST: John Kluever, Freeborn County Administrator.

  • APPROVAL OF MINUTES OF THE JUNE 3, 2009 REGULAR MEETING.

The minutes of the June 3, 2009 meeting were reviewed. Commissioner Field made a motion to accept the minutes as presented, seconded by Commissioner Fligge. The motion carried with 6 in favor and 0 opposed.

  • RESOLUTION PA-09-12 AUTHORIZING PAYMENT OF CLAIMS.

The claims were presented for review and discussion followed. Executive Director Dorman reported that the first payment was made to AB Systems for construction of the new Spec building, and that ZRT also received a payment for architectural/engineering services on the new Spec building. Discussion was also held regarding payment to Jim and Dudes Heating. Commissioner Fligge made a motion to approve Resolution PA-09-12 authorizing payment of claims in the amount of $176,173.79, seconded by Commissioner Brooks. The motion carried with 6 in favor and 0 opposed.

  • RESOLUTION PA-09-13 AUTHORIZING THE SALE AND ISSUANCE OF TAXABLE REVENUE BOND.

Executive Director Dorman reviewed the sale and issuance of the taxable revenue bond for the construction of the new spec building in the ALEDA Industrial Park, noting that formal passage of Resolution PA-09-13 was required.

Discussion followed. Director Dorman reviewed the financing option discussed by the Board at both the May 13th and June 3rd meetings. The Board recommendation was for the Port Authority to go with the variable rate from Farmers State Bank with the option to prepay on the principal. Director Dorman said that the Board’s goal is to pay off the debt as additional land is sold in the ALEDA Park with the hope that we could pay off the debt in 5 years.

The attorney for the Port Authority recommended that the following Statement of Conflict be added into the minutes as a matter of record:

        “Pursuant to Minnesota Statutes, Section 471.88, subd. 11, when a commissioner of a port authority is employed by a bank engaged in making loans involving real or personal property to such port authority, no restriction shall apply to any such loans made or trust services performed by said bank if the commissioner discloses the nature of such loans of which the commissioner has personal knowledge, which disclosure shall be entered upon the minutes of the port authority.

        Commissioner Skophammer and the remaining members of the Board of the Albert Lea Port Authority hereby acknowledge that Commissioner Skophammer is the President and Chief Executive Officer of Farmers State Bank of Hartland. Farmers State Bank of Hartland is purchasing the Taxable Revenue Note (ALEDA South Industrial Park Project), Series 2009 from the Albert Lea Port Authority. The Note will be issued in the amount of $1,800,000 and the proceeds of the Note will be used to finance the construction of a speculative building in the South Industrial Park. After reviewing all proposals received for the purchase of the Note, the Board determined that the offer of Farmers State Bank to purchase the Note was the most economical.”

Commissioner Mike Moore made a motion to accept Resolution PA-09-13 as stated (see attached) which recommends the $1,800,000 bond sale at the variable interest rate at 5.5% with Farmer’s State Bank, seconded by Commissioner Field. President Kehr requested a roll call vote: Commissioner Field: Yes; Commissioner Rasmussen: Yes; Commissioner Brooks: Yes; Commissioner Moore: Yes; Commissioner Fligge: Yes; President Kehr: Yes. The motion carried with 6 in favor and 0 opposed.

  • RESOLUTION PA-09-14 AUTHORIZING THE LEASE OF SPACE TO VENTURA FOODS.

Executive Director Dorman informed the Board that although the Port Authority Board made a motion to extend the current lease with Ventura Foods for 13,800 square feet of refrigerated space located in the Ring Can building at the June 3rd meeting, a formal resolution was necessary for all lease agreements.

Commissioner Fligge made a motion to accept Resolution PA-09-14 which authorizes a three year lease with Ventura Foods starting August 1st, 2009. The lease rate for the first six months would be $4.25 per square foot, and the next 30 months at $4.50 per square foot for the leasing of 13,800 square feet of refrigerated space in the Ring Container Building located at 2105 Myers Road. This motion also includes an ‘opt out’ of the lease for Ventura Foods if they decide to construct a new building in Albert Lea, comparable in size to the space they are currently leasing, within the 3 year lease period. The motion was seconded by Commissioner Moore. The motion carried with 6 in favor and 0 opposed.

  • CARPENTER LEASE PROPOSAL.

Executive Director Dorman informed the Board that officials of Carpenter had discussed a new lease with the Port Authority. Being the oldest tenant of the Port Authority, Carpenter is currently leasing 60,000 square feet of space for a lease rate of $1.50 per square foot triple net. The current lease agreement ends December 31, 2009. Carpenter has agreed to a new three year lease in the amount of $1.80 per square foot triple net, beginning January 1, 2010.

The parking lot at Carpenter needs extensive repair or replacement. The current lease states that the Port Authority would pay for the first $3,500, and then Carpenter and the Port Authority would split the cost 50/50. The cost to replace the parking lot would be approximately $100,000 for each entity. Director Dorman informed the Board that nothing had been done to the parking lot in the last several years since it was built in the 1980’s. Discussion followed.

It was the consensus of the Board that Director’s Dorman and Nolander propose a new lease rate to Carpenter with a different lease rate to include the parking lot repair/replacement and then come back to the next Board meeting. The proposal will come back to the Board in the form of a resolution at the August 5, 2009 meeting.

  • SPEC BUILDING UPDATE.

Executive Director Dorman informed the Board that the soil fill is all in, and the lot looks good. The construction company is approximately a week behind due to the rain. The company hopes to pour footings for the new spec building yet this week.

  • EX-OFFICIO UPDATES.

Chris Shoff – Freeborn County Representative

  1. ICE Contract – Freeborn County has about 40 detainees at this time.
  • Freeborn County has purchased two new transport vans, as transport of detainees is a huge part of the program.
  • They have hired 18 additional staff so far: 10 correctional officers, 4 transport officers, 2 programmers, 1 administrator, and 1 maintenance person.
  • It will cost approximately $850,000 per year to do the project. The ICE contract is for payment of $77.00 per detainee. Interpretive services are billed separately.
  • The Freeborn County facility has had four surprise inspections, and has passed all of them.
  1. The Freeborn County Commissioners had a retreat on June 30th. They also had a county road tour, went to the Bear Lake Dam; and to the bridge on Albert Lea Lake which is 1/3 done. Commissioner Shoff also noted that construction has begun to redo County Road 34.

City of Albert Lea – information shared by Vern Rasmussen Jr., Al Brooks and Victoria Simonsen.

  1. The City Council will again revisit the Bridge Street Corridor idea.
  2. Kay Rasmussen, administrative assistant to Ms. Simonsen has retired from the City offices.
  3. A discussion was held regarding State LGA and how it affects Albert Lea and surrounding communities.
  4. Budgets are being prepared and are due July 10th.
  5. A City Council Board retreat may be held on August 3rd.
  6. Blazing Star Landing – Starting fill to replace underground tanks taken out.
  7. A sediment dredging request was received from the Watershed Board.
  8. Bond requests were due June 25th.

Discussion followed regarding mosquito spraying and the Blazing Star Landing.

Randy Kehr – Chamber of Commerce.

  1. Director Kehr met with educators in the community to try to develop workforce for the Albert Lea area, and to get youth ready to be a part of that workforce. His committee will be putting together 10 minute videos of people in jobs in the community. They have produced a brochure which is available for middle school students so that they get a real feel for the community.
  2. Today the Chamber will submit four grant requests to the State for the Pohlad Grant for small businesses. There is $3,000,000 in job retention dollars available. Each Chamber was allowed to submit four requests. The Chamber should hear by August 1st if any or all of our small business entrants have been chosen to receive grants.
  3. Director Kehr stated that he and Director Dorman received a new business lead yesterday, a warehouse facility looking for 75,000 – 150,000 square feet of space in southern Minnesota. Currently they are leaning toward the Glenville area due to the availability of rail.
  4. The 3rd of July parade is scheduled to begin at 6 p.m. on Friday.
  5. The Chamber Ambassador Golf Tournament is coming up.
  6. Leadership graduation meeting and luncheon was followed by Business After Hours.
  • EXECUTIVE DIRECTOR’S REPORT.
  1. Project Magnolia is still on hold.
  2. Executive Director Dorman spoke with Garry Hart of Cedar Valley Services and they are still interested in the construction of a building for their bus garage on one of the lots in the new ALEDA Industrial Park.
  3. Director Dorman had a discussion with Wayne Drake of Ring Container regarding a new lease.
  4. GameTec – Director Dorman informed the Board that GameTec has a dehumidification system which is necessary for their process. Currently they are in need of a replacement system at a cost of approximately $80,000. The original dehumidification system was paid for by the Port Authority and added to the GameTec lease. Discussion followed. The Board felt that the dehumidification system is GameTec’s responsibility as it is special equipment needed for the production of their product.
  • COMMISSIONER ITEMS.
  • Commissioner Brooks raised a question regarding maintenance on a property owned by the Port Authority on Moline Street near the Jehovah’s Witness Church. There is a new home owner on Moline Street who was asking where the property line was.
  • ADJOURNMENT.

Commissioner Rasmussen made a motion to adjourn the meeting at 8:45 a.m., seconded by          Commissioner Brooks. The motion carried with 6 to approve and 0 opposed. .

Filed and attested July 1, 2009.

____________________________________                    ___________________________________

Ellen Kehr, President                                                        Nanciana Jensen, Board Secretary

Posted in Minutes