June 6, 2012 Albert Lea Post Authority Minutes
June 6, 2012
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ALBERT LEA PORT AUTHORITY MINUTES June 6, 2012 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 6, 2012 at 7:30 a.m. by Vice President Nancy Skophammer. Roll was noted by the Board Secretary. COMMISSIONERS PRESENT: Ellen Kehr, Al Brooks, Mike Moore, Jerry Ehn, Nancy Skophammer and Keith Fligge COMMISSIONERS ABSENT: Vern Rasmussen, Jr. 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: Dan Dorman, Executive Director; Ryan Nolander, Assistant Director; and Julie Dandrea, Board Secretary STAFF MEMBERS ABSENT: None GUESTS: Lee Bjorndal, Mike Murtaugh, Freeborn-Mower Coop; Rebecca Gisel, Alliant; Kimberly Hillberg, CliftonLarsonAllen (arrived at 8:00 a.m.) 2. APPROVAL OF MINUTES FROM APRIL 4, 2012 MEETING The minutes from the May 2, 2012 meeting were reviewed. Commissioner Brooks made a motion to approve the minutes as presented, seconded by Commissioner Kehr. Vice President Skophammer asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed. 3. RESOLUTION PA-12-10 AUTHORIZING PAYMENT OF CLAIMS The claims were presented for review. Commissioner Moore made a motion to accept the claims as presented in the amount of $7,098.94, seconded by Commissioner Brooks. Vice President Skophammer asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed. 4. Annual Retreat – July 11, 2012 at Wedgewood Cove Golf Club A draft of the Program of Work was handed out for review. It will be completed and updated for the retreat next month. Executive Director Dorman asked the board to let him know if there are any additions/suggestions they would like to see covered at the retreat and it will be put on the agenda. Preliminary budgets may be ready by then as well. 5. EXECUTIVE DIRECTOR’S REPORT Bank Building – An RFQ (request for qualifications) will be sent out by the City in search of qualified developers who have an interest in putting together a project within a timeframe of 6 months to a year. The RFQ should be finalized in a month or so. Knights Inn –Due to property taxes not being paid for several years, the property is scheduled to go to tax forfeiture auction in August of this year. It would have been on the auction last year, however, the County Auditor Treasurer entered into a re-payment plan with the owners to avoid the auction. The owners did not meet the terms of the repayment plan. The amount of the taxes, interest and penalties owed is $310,000. City Attorney, Lee Bjorndal, attended the meeting to inform the board of its abilities in this matter. A concern is if the property goes to auction and no one buys it, it will sit empty and likely be vandalized or worse yet, another unqualified buyer could take it over at auction and repeat the cycle. The Port Authority has the legal authority to acquire the property and preempt the tax forfeiture sale. According to Mr. Bjorndal, the Port Authority is uniquely able to step in and take control of the property and do the work to make the property marketable. It would be more difficult for the City to do. There are concerns regarding the building condition, one being asbestos. The board packets contained a memo dated 1/1/12 from Lee and another one dated 12/10/03 from the St. Paul Port Authority both citing state statutes allowing government entities to acquire tax-forfeited properties for nominal amounts. Mr. Bjorndal suggested starting a discussion of what needs to be done. A TIF may need to be put in place. Also, a notice must be sent to the auditor conveying the Port’s interest in assuming the property. Commissioner Moore asked if there are restrictions on how the property is developed. Executive Director Dorman believes the property may need to be included as part of the Port’s Industrial Development District (IDD), but that doesn’t mean it has to be used for industrial. Mr. Bjorndal recommended the Port consult an attorney with more experience in this area. Commissioner Skophammer asked about a redemption period and there isn’t one, and also about the first mortgage. American Bank sold the current owners the redemption certificate from the mortgage foreclosure sale. Any debt is wiped out by the process of tax forfeiture. The owners would have to get current on the property taxes through 2011 to stop the sale process. This is a four-acre parcel that could be divided into two pieces. Commissioner Moore asked what the return would be on an estimated $250,000 demolition plus legal fees. Executive Director Dorman explained that the property could be a redevelopment TIF district like the Green Mill area. Expenditures could be recovered based on that. Additionally, the site is worth more than $250,000; it would be more of a cash flow issue. The Port could sit on it for a while and not lose money in the long run. The site is potentially worth $750,000 when redeveloped. Chad recommends working with a developer for uses for the property through an RFQ. A public hearing must be held with a ten-day notice at a Port Authority Meeting. After the Port’s interest is stated, it stops the auction and starts a six-month clock to close on the purchase. Chad recommended not establishing a TIF too soon. The assessor will set the value for the TIF at the bare land cost. On August 1st, the building should be available to assess the condition. Mr. Bjorndal said the Port will have to go to the County Board of Commissioners for approval of their plan. The Port may need to update the industrial development district map. (Executive Director’s Report was interrupted at this point for the Audit report.) 6. AUDIT: CLIFTON LARSON ALLEN – Kimberley Hillberg (The audit presentation was moved down in the agenda pending the arrival of Kimberly Hillberg.) Kimberley introduced herself and noted the merger and new name of the firm. She gave a general overview of the audit and suggested the board read the condensed version of the assets and liabilities found in the management’s discussion and analysis beginning on page 4. There is a new asset classification called “non-spendable” (meaning not easily converted to cash). She acknowledged levying authority is available to the Port to generate funding if needed, but noted it has chosen not to use. With Gametec leaving, there was less revenue in the real estate fund. Cash flow for operating costs is not subsidized from other sources and this is something the auditors like to see. She recommended getting a stamp or preprinted check stock that includes the legal compliance declaration noted on page 37. She also recommends an independent individual, such as the executive director, review the bank reconciliation each month. Commissioner Moore had a question on material adjusted accrual entries – can this be anticipated every year or can it be corrected? The salaries and compensation absences have been fixed and she doesn’t see it as a continual adjustment. With no other questions, Commissioner Fligge made a motion to accept the Port Authority’s financial statements as presented, seconded by Commissioner Ehn. The motion passed 6 in favor; 0 opposed. (Kimberley left at 8:30 a.m.) (The Executive Director’s Report continued at this point.) National Citizens’ Survey Results – The City undertook a survey regarding city services. The portion of the report that impacts economic development was handed out. It was noted that comparisons were made with average cities, not necessarily similar cities. Also social issues were not addressed in the survey. One page showed unfavorable ratings on employment opportunities and places to work. Unfortunately, there is no longer high-wage, low-skill jobs as when a packing house was located in Albert Lea. Assistant Director Nolander noted it was interesting to see the number of employment opportunities rated so low, because both Agilis & Zumbro River Brands can’t find needed employees and both pay fairly well. Another page showed jobs and retail growth too slow. The JOBZ program disputes that somewhat. Economic development services were rated as poor. Executive Director Dorman would have liked to see a custom question for that section on whether respondents had any interaction with the agency. Dorman highlighted some of the custom questions on one page regarding the overall direction Albert Lea is taking and that there are not enough restaurants and shopping opportunities. However, these types of businesses are market driven. Commissioner Fligge asked how many surveys were returned and Chad said 465 respondents out of 1,200 sent. Some people mistakenly look at Broadway Avenue and not the industrial areas of Albert Lea in terms of economic development and may not be including SAR, AmTech, and the new Holiday Inn Express. Half of the respondents were unemployed and not within mid-to-upper class. There were maybe two dozen other cities in MN that partook in the survey; otherwise it was based on national comparisons. The city may decide to participate every three years. Commissioner Skophammer suggested it could be a public relations issue, but it appears the economy is mostly to blame. The City has the demographic information on file for more information and the full survey is on the City’s website and at the library. Julie will email the website link to the board members. 7. EX-OFFICIO UPDATE Freeborn County – Mike Lee, Freeborn County Representative · The County has moved forward and agreed to use Greater Jobs as an LDO to provide a loan to AmTech Ingredients. · The County has applied for a 180-day extension to Union Pacific to obtain more funding for a bike trail on Highway 13. Commissioner Skophammer inquired on behalf of Hartland residents if the trail will stop at the railroad crossing so users will go into town. Mike said it may end a little south of crossing. Canadian Pacific owns the rest of the track going north. · The County is still considering the DHS re-design and will make a decision before July 1. · The County has ratified the union contract for patrol deputies. · The Bridge Avenue corridor study is now in process. There will be a city-county meeting later this summer or fall. City of Albert Lea – Chad Adams, City of Albert Lea Representative · The City is considering utilizing the TIF that has been pooled together on the bank building. On June 30, the TIF will default back to the school and county if no plan to use it is in place by then. A possible use would be to install a new elevator in the bank building to current standards. Bids for the project will be opened June 25. · The city has partnered with the county and Greater Jobs as an LDO with $200,000 from existing revolving loan funds to make a loan available to AmTech. · The city has hired a finance officer pending a background check and she will start in 30 days. · The Fire report is now on their website and at the library. A community presentation will be held at the Marion Ross Center to share the results and allow for questions. The report indicates the City needs a full-time fire crew with some changes, but backs the current staffing. There was concern with the ISO rating going from 3 to 4. Residents won’t see an increase in insurance costs; commercial might see a small increase, but won’t see an impact for 10 years. One recommendation was to assign a leadership position and build the organization from that. New equipment is also needed. · The streetscape project moves forward and another public open house was held a couple of nights ago. A pedestrian plaza continues to be a theme. The city has received one million from the state for the project and the rest of the funding will be pooled from five different areas. · The parking concerns downtown were mitigated, preserving the same number of spaces. According to the citizen’s survey, people think there is an ample amount of parking downtown. · The Open Streets event went well. There was an open house for the Vitality Center and Prairie Wind Coffee opened for the day with lots of buzz. There are unpaid interns doing work at the Vitality Center this summer. · On June 28, there will be a City-County meeting to discuss sharing services, Bridge Street, and UP rail appraisals, theirs and ours, on the 70+ acres along Highway 13. More grants are needed for acquisition in addition to the $150,000 that has already been funded. We can’t buy only various segments. The UP was very open to grant an extension in order to allow time to get funds for the property acquisition. After appraisals are done the price may come down. Chamber of Commerce – Randy Kehr, Business Community Representative · The fireworks fundraiser was very successful. MN Corrugated Box was the donation leader. The parade planning for July 3 is coming along. · A number of people have asked about the old Wal-Mart. There has been painting and work done on the parking lot. Speculation is it may be routine maintenance or maybe the lease is up and it must be returned in the same condition. · Dan & Randy met with the Coalition of Greater MN Cities regarding their program of work. · Some business advertised for Open Streets, others didn’t plan for it. For most, it wasn’t a business-generating event. It was well received by the public. KIMT ran a somewhat disappointing story about the event; however, they are re-running it on July 9, in conjunction with a Blue Zone story during sweeps week. · Chamber golf outing is in July and teams can register on the Chamber website. 8. COMMISSIONER ITEMS – none 9. ADJOURNMENT Commissioner Moore made a motion to adjourn the meeting, seconded by Commissioner Fligge. The motion carried 6 in favor, 0 opposed. The meeting adjourned at 9:25 a.m.
Filed and attested June 6, 2012.
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