June 4, 2014 Albert Lea Post Authority Minutes

By Tyler Golberg | June 4, 2014

June 4, 2014

ALBERT LEA PORT AUTHORITY

MINUTES

Wednesday, June 4, 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, June 4, 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; Randy Kehr, business community representative; and 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:  Rebecca Gisel, Alliant Energy and Mike Murtaugh, Freeborn County Cooperative

2.     APPROVAL OF MINUTES FROM MAY 7, 2014 MEETING

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

3.     RESOLUTION PA-14-13 AUTHORIZING PAYMENT OF CLAIMS

  • The claims were presented for review.  Commissioner Rasmussen made a motion to accept the claims as presented in the amount of $16,625.84, seconded by Commissioner Kehr.  President Skophammer asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.

4.     PUBLIC HEARING RE: SALE OF OUTLOT A – PORT AUTHORITY PLAT #3

  • Pursuant to the public hearing notice published on May 21, 2014, the Port Authority Commissioners have reviewed a request to transfer property from the Port Authority to TSB Janesville, LLC.  President Skophammer opened the public hearing and asked for anyone wishing to speak to come forward.  President Skophammer asked a second and third time for parties to come forward.  There being none, the public hearing was closed.

5.     RESOLUTION PA-14-14 APPROVING SALE OF OUTLOT A – PORT AUTHORITY PLAT #3

  • Executive Director Nolander reported the aforementioned company, dba Schrom Construction, is interested in purchasing Outlot A, approximately 11.82 acre parcel in ALEDA Park.  A purchase agreement with the Port Authority’s terms and conditions was submitted.  Proper notice was given and the purposed use and relation of the use to the improvement to the City of Albert Lea is appropriate.  Commissioner Fligge made a motion to approve Resolution PA-14-14 as presented, approving the sale of the aforementioned property to TSB Janesville, LLC for $120,000.  Commissioner Moore seconded the motion.  On a roll call vote, the following commissioners voted in favor of said motion:  Commissioners Brooks, Jansen, Kehr, Rasmussen Jr., Fligge, Moore and Skophammer.  The following against said motion: None.  The motion carried 7 in favor; 0 opposed.

6.     EXECUTIVE DIRECTOR’S REPORT

South #1 refrigeration update – Staff had to move forward with ordering new condensers for the Ring Can section that Ventura leases.  On the first warm day, May 20, the whole system went down.  The units arrived and are being installed today.  This expense will be approved in July or August on the claims.

Ventura lease extension – This is for the mid-portion of South #1, and Ventura will extend their self-warehousing for another year.  Staff is recommending extending the lease through 7/31/15 at the current terms.  Commissioner Brooks made the motion to accept the lease extension for Ventura Foods and Commissioner Jansen seconded.  Motion passed 7 in favor, 0 opposed.

Freeborn County Co-op update – Staff was contacted again last week on whether there was any leeway on the asking price.  Staff is not recommending negotiating on such a small piece.  It would not be in the Port’s best interest for resale if such a small parcel is broken up too much.

Alliance Benefit Group update – ABG responded that they have received information from one of the acquisitions they have interest in.  They will put an offer together in the near future and will get back to City and the Port.  This again brings up what can we offer to smaller companies to help them grow.  Another local business, a dental office, wants to build a new facility by Dr. Enger’s property and will be hiring another dentist and support people, possibly totaling 10 people.  These are not manufacturing jobs, but high paying professional jobs.  Commissioner Fligge asked if there have been any precedents.  The City made a loan to ABG a few years ago.  The dental office would be considered a new business as their former building will be occupied with another professional business.  Differences between tax abatement and TIF were discussed as ways to help businesses.  A joint meeting is planned for June 19th, with the County and City to discuss tax abatement.  Commissioner Rasmussen noted the service industry is expanding and we need to grow our tax base wherever possible.  Staff will work with the City on strategy.

Bridon Cordage update –Universal filed Chapter 11 on May 11th, and is working on selling off its assets.  Bridon received money to fill their orders and rehired all the employees laid off last month.  Universal would like to sell Bridon together with Heritage Trading from Kansas City.  Companies are touring Bridon for bidding purposes.  Executive Director Nolander is trying to get local group of investors interested in buying Bridon to insure the manufacturing operation stays here; however, the asking price could be $15M.  Staff will keep the board informed of developments.

Education class & conference recap – Executive Director Nolander attending an IEDC economic development class last Thursday and Friday and an EDAM conference on Sunday and Monday.  Discussion topics included setting realistic goals that are appropriate.  Stating we will create “x” number of jobs in “x” number of years is not good goal setting because there is no control over it.  Appropriate goals discussed were having land available, buildings if possible, and a business retention program; all of which we have.  Educating your board was another topic so yesterday staff met to brainstorm ideas.  Board Secretary, Julie Dandrea will put together a new, condensed board book with more essential information like agency history, available land, loan programs, TIF/abatement, etc. Board members could bring it to each meeting to refer to.  This will greatly help new commissioners who join the board.

The work force topic at the conference turned into a brainstorming session on how to solve this problem.  Most of IEDC’s members are from metro areas where workforce is much less of an issue.  Apprenticeship programs in middle and high schools were discussed and a new idea from a member in Florida to “educate the educators” has been implemented there.  Companies sponsor teachers by paying for substitutes in order for them to attend a daylong meeting with manufacturers to educate them on what types of jobs are available and the skills needed.  She will send their program information to Executive Director Nolander and he and Randy Kehr will work together to implement a similar program here.

Nolander also attended a distribution and logistics panel at the conference.  New trucking regulations only allow 10 hours per day on the road.  This is changing where companies want to be located for distribution and will require moving closer to their markets.  Most companies like existing buildings, but retro-fitting is expensive so it could lead to more build-to-suit development.

Leadership Day recap – It was held May 20th, and led by Randy Kehr and Executive Director Nolander, who gave an introduction of ALEDA.  There were company tours and lunch at the Cuban restaurant downtown.  One attendee already has an idea for new business.  The companies visited that day reiterated the workforce issues sited during the ALEDA presentation.

Retreat discussion – Because of the holiday in July, August was discussed for a retreat if the board wishes to hold one.  Due to planned board members’ absences in August, it was decided to have a longer meeting in September and hold a retreat in February or March.  Discussion ideas for the retreat should be given to staff.

Board Secretary, Julie Dandrea will attend the week-long Upper Midwest Basic Economic Development course in Duluth July 21-25.

7.     EX-OFFICIO UPDATE

Freeborn County – Mike, Freeborn County Representative

  • The County has requested another 180-day extension on the UP property.  They hope to have ownership by October 1.
  • The watershed will receive $7.5M for dredging Fountain Lake, an additional $700,000 for the Shellrock River native fish barrier, and $433,000 for the Blazing Star Trail expansion.
  • Verizon was granted permission to erect a tower by Trails Truck stop.
  • The County will hold a workshop on June 10th.  Executive Director Nolander added he will attend and give the commissioners an LDO update.
  • On June 16th, the County will interview candidates for the watershed board.
  • On June 19th, there will be a workshop with the City and County boards.  Executive Director Nolander will be attending.

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

  • The City has approved the developer for the bank building.  Best case closing would be late December-early January, with 9-10 months of construction and occupancy in fall 2015.  The units will be income-restricted units, not subsidized.  The only way the development could happen is with housing tax credits, which makes it restrictive.  After 15 years, the units may be converted to market rate.  To make it market rate now, the City would have to invest a large amount.  Currently, there are three different housing developers who may be offering different market rate products.
  • St. John Lutheran Home will be on the agenda next Monday for final plat and rezoning.  The developer’s agreement is not worked out yet or how their gap will be met.  Road access issues appear to be worked out.  They are working backwards from a late September construction start date.
  • The Knights Inn is coming up for redemption in July.
  • The City has separated with the Finance Director due to philosophical reasons, not mismanagement or criminal activity.
  • The Blandin entrepreneur group is still working on their report.
  • A Community Center feasibility study is underway.  Results are expected late summer.

Chamber of Commerce – Randy Kehr, business community representative

  • Randy gave kudos to those involved on the successfulness of the bonding bill in the legislature.
  • Fireworks fundraiser has been completed, although collection was not as high as last year.
  • Nelson’s Grocery has been completely being revamped, and now called Marketplace.
  • Two new judges have been appointed in Mower County.  One of them is local attorney, Kevin Siefken.
  • In cooperation with Alliant, Home Depot will host an in-store seminar June 19th on buying light bulbs.  There will be another one in October, partnering with Freeborn-Mower Cooperative.
  • A Mower County retail sales study from U of M is available showing comparisons to neighboring communities.  Executive Director Nolander will forward it onto board members.

8.     COMMISSIONER/OTHER ITEMS

  • Commissioner Moore said we are not the only communities facing the issue of incentives for service vs. industrial.
  • Commissioner Rasmussen reported June 14th will be an Open Streets event from 9-1 pm with Bridge Street shut down from Ruble to Fountain.  Kayak, canoe rentals, rock wall climbing etc. will be free and there will be a bike rodeo.  Also, June   17th is the grand reopening of Fountain Lake Park.
  • Commissioner Kehr suggested the board consider doing something in regard to Paul Sparks’ funeral.  Staff will send flowers.

9.     ADJOURNMENT

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

 

Filed and attested June 4, 2014.

Posted in Minutes