July 2, 2014 Albert Lea Post Authority Minutes

By Tyler Golberg | July 2, 2014

July 2, 2014

ALBERT LEA PORT AUTHORITY

MINUTES

JULY 2, 2014

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, July 2, 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, Al Brooks and Nate Jansen
  •  COMMISSIONERS ABSENT:  None
  •  EX-OFFICIO MEMBERS PRESENT:  Chad Adams, City of Albert Lea representative and John Kluever, Freeborn County representative
  •  EX-OFFICIO MEMBERS ABSENT:  Randy Kehr, business community representative
  •  STAFF MEMBERS PRESENT:  Ryan Nolander, Executive Director and Julie Dandrea, Board Secretary
  •  STAFF MEMBERS ABSENT:  None
  •  GUESTS:  Lee Bjorndal-City Attorney; Jordyn Finer-City Intern; Breanne Rothstein-City Planning Consultant; and Kevin Kelleher-DEED

2.     APPROVAL OF MINUTES FROM JUNE 4, 2014 MEETING

  • The minutes from the June 4, 2014 meeting were reviewed.  Commissioner Rasmussen made a motion to approve the minutes as presented, seconded by Commissioner Jansen.  President Skophammer asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.

3.     RESOLUTION PA-PA-14-15 AUTHORIZING PAYMENT OF CLAIMS

  • The claims were presented for review.  Commissioner Fligge made a motion to accept the claims as presented in the amount of $16,430.63, seconded by Commissioner Brooks.  President Skophammer asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.

4.     REDEVELOPMENT MAP PRESENTATION – Breanne Rothstein, City Planning

  • A draft was handed out identifying areas for possible future redevelopment.  The City wants a development roadmap available to guide site selectors and developers.  Additionally, identified areas for redevelopment may be eligible for grant funding. When finalized, the map will be added as an addendum to the comprehensive plan.  Each district was briefly reviewed.  There is disinvestment in residential property in some of the areas identified, which may offer future tax forfeiture opportunities.  An updated flood plain overlay will be included with the map.  Major changes are not anticipated on the flood plain map.  Comments can be given to the Planning Commission.  City Manager Adams added that the City plans to use tools more frequently such as tax abatement and TIF and possibly buy properties that come up for sale in redevelopment areas.
  • Executive Director Nolander asked for thoughts from the board.  Discussion followed regarding the I-35 gateway, where the Knights Inn is located and also the other businesses on the north side that have closed.

5.     DEED Update – Kevin Kelleher, DEED

  • Kevin Kelleher noted there is a lot of activity all over right now.  Unemployment in Minneapolis/St. Paul is at 4%, the lowest in the nation.  Albert Lea is under 5%, which is close to full employment. There is a new pilot program for job training that will enable DEED to respond quickly to training requests with grants up to $50K.  Kevin outlined some of the criteria for this job training incentive program.  The program is great for paying training costs, including travel costs for trainers.  There are three upcoming application deadlines.  There will be more discussion at next Friday’s DEED meeting in Oronoco which Executive Director Nolander will be attending.

6.     CARPENTER COMPANY LEASE

  • Carpenter initiated lease negotiations early a couple months ago because their current lease expires 12/31/14.  They are a great tenant and take good care of the building.  Through our negotiations, we have reached an agreement on a 3-year triple net lease with a 5% rate increase.  Staff recommends approval.  Commissioner Jansen moved to approve the lease with the terms as presented.  Commissioner Moore seconded, and the motion passed 6 in favor, 0 opposed.  Commissioner Rasmussen abstained from the vote.
  •  Ventura wanted to lease the south portion of the Ring building short-term, but then decided they didn’t need it.  Staff quoted them the same pricing as Larson Manufacturing paid; an all-in price of $7,200/month.  Commissioner Rasmussen made a motion to approve the lease terms now in case Ventura determines they need the space after all.  Commissioner Fligge seconded the motion and it passed 7 in favor, 0 opposed.

7.     EXECUTIVE DIRECTOR’S REPORT

  • South #1 refrigeration update – This has been a topic for the last couple of months.  There were additional expenses added due to a leaking refrigerant line and installment of efficient thermostats.  Staff has applied to Alliant for rebates that may be available.
  • Property Insurance – Previously, coverage was carried through the City’s policy with the League of MN Cities, but earlier this year the City Finance department requested the Port purchase its own policy.  We are working with Security Insurance who carries the insurance for Greater Jobs.  The premium will likely cost more because the city had a $75,000 deductible and we are checking lower deductible options.  City Manager Adams explained their rationale for the change was because the City and Port are two different entities and their newly installed software would make it difficult to continue separating out costs and services to the Port.
  • Bridon Cordage update – A regional/local ownership group is interested in purchasing the local plant.  A stocking horse bid, whereby the bankruptcy attorney receives bid proposals from known bidders to set the bid floor, occurred last Friday.  The formal auction will be in August.  A $15M price tag has been mentioned.  The local group doesn’t want to run Bridon and would want the management’s assurance to stay on board.
  • Downtown development – Staff has received a lot of interest from potential businesses wanting to locate downtown now that the Streetscape project is done.  A design studio, a Northfield group looking for office space closer to Iowa, a yoga studio, and an expanding brewing company have all expressed interest.  Staff recently toured the Alliant building for knowledge on what the building offers for future opportunities.
  • Midwest/Knights Inn Discussion –Lee Bjorndal, City Attorney, announced as of yesterday this property was supposedly sold or transferred to new ownership.  He said plans to completely renovate the rooms, 25 at a time, begins next Monday.  They plan to have dining and the owner claims he’s owned several restaurants and has experience with hotels in worse shape.
  • The property came up for tax forfeiture two years ago, but the situation this time was a bank foreclosure, not a tax forfeiture.  The property has been included in the City’s redevelopment plan.

8.     EX-OFFICIO UPDATE

Freeborn County – John Kluever, Freeborn County Representative

  • FEMA will be here next Tuesday due to recent flooding.  Our area cleared the $108K threshold as there were $128K in damage reports from various county entities.  Alden had the most damage for that size.  There are 35 counties in the governor’s declaration.  The State threshold is $35M from all counties.  There is mitigation funding also.  The focus is not just on damage, but what can be done to mitigate problems from reoccurring.  The County has applied for a grant for a safe room to be available in the fairgrounds.  Executive Director Nolander noted a damage survey from DEED was forwarded to our Greater Jobs members and the Chamber.

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

Jordyn Finer, the City’s summer intern was introduced.  She has a B.S. in human resources.

Project updates:

  • Lee Bjorndal and Chad Adams are meeting with St. John’s Lutheran Home today.  St. Johns would like to use TIF for private gap financing.  They’ve received authorization from the state to move beds.
  • The Freeborn Bank developer finds out in October if they get the needed housing credits. If successful, later this year or early next year they will start the project.
  • Market Rate – There are two developers now: John Chadwick, who will build behind Home Depot and Schrom Construction, who plans to build on the outlot in the ALEDA Park.
  • The City Council and County Board had a combined workshop and discussed tax abatement for housing development and professional service businesses.  Executive Director Nolander said he and City Staff have been looking at ways to create a formula for a tax abatement. Kevin Kelleher commented that he thinks it’s great to see the City and County working together and that it will pay off in the future.
  • The Blandin group is meeting at noon today to finalize their report and potential recommendations for an action plan.

Chamber of Commerce

Commissioner Kehr noted some items in Randy’s Kehr’s absence.

  • The Leadership Class is already at 18 enrolled.
  • The 3rd of July Parade is huge this year with 112 entries.

9.     COMMISSIONER/OTHER ITEMS – None

10.    ADJOURNMENT

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

 

Filed and attested July 2, 2014.

Posted in Minutes