March 4, 2015 Albert Lea Post Authority Minutes

By Tyler Golberg | March 4, 2015

March 4, 2015

ALBERT LEA PORT AUTHORITY

MINUTES

March 4, 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, March 4, 2015 at 7:30 a.m. by President Kehr.  Roll was noted by the Board Secretary.
  • COMMISSIONERS PRESENT:  Vern Rasmussen, Jr., Mike Moore, Ellen Kehr, Al Brooks, Mark Heinemann, and Ginny Larson
  • COMMISSIONERS ABSENT:  Nate Jansen
  • EX-OFFICIO MEMBERS PRESENT:  Randy Kehr, business community representative and Mike Lee, Freeborn County representative
  • EX-OFFICIO MEMBERS ABSENT:  Chad Adams, City of Albert Lea representative
  • STAFF MEMBERS PRESENT:  Ryan Nolander, Executive Director and Julie Dandrea, Board Secretary
  • STAFF MEMBERS ABSENT:  None
  • GUESTS:  Mike Murtaugh – Freeborn Mower Cooperative and Rebecca Gisel – Alliant Energy

2.     APPROVAL OF MINUTES FROM FEBRUARY 4, 2015 MEETING

  • The minutes from the February 4, 2015 meeting were reviewed.  Commissioner Rasmussen made a motion to approve the minutes as presented, seconded by Commissioner Heinemann.  President Kehr asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

3.     RESOLUTION PA-15-08 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 $13,956.85, seconded by Commissioner Rasmussen.  President Kehr asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

4.     EXECUTIVE DIRECTOR’S REPORT

  • Mrs. Gerry’s Update – They have settled with the county on their property tax valuation so a TIF can be determined.  Regarding a regional retention pond in the Northaire Park, there is a new property being pursued.  We’re waiting for the design work from ZRT in order to do a BDPI application with the State.  State BDPI funds may be available for the pond and also part of the TIF could be used to offset the cost.
  • St. John’s Update – Executive Director Nolander, along with city officials, met with St. John’s and their attorney to continue working on the TIF & DA.  Access to the new facility will be off Crescent Drive.  The Watershed doesn’t want to develop the land between the Lakeview and the new facility in order to use it for dredge staging so they want to keep the road gravel.  The water/sewer extension has been bid out.  If the bids are too high, the city can walk away, but St. John’s wants to split the cost with city if the bids come in to high.  The city council will weigh in on the matter at their next council meeting.
  • W. 9th St. Property – The interested buyer is coming by this week to talk about the property.  Executive Director Nolander has lined up a potential farmer to rent the land in case an agreement can’t be reached to sell the land.
  • Streater Lease – They want to extend the lease on the south Ring space through the month of April and maybe longer.  They continue to need more warehousing space.
  • Bridon Project Discussion – They are interested in the south Ring space for a new production line.  An email was sent to them showing the preliminary costs of remodeling to fit their needs, but they haven’t responded yet.  Ballpark costs are $350-450K depending on which remodeling option is chosen.  They want to lease, not own.  This would be a long-term lease if we did the remodel and would create quite a few jobs.
  • Downtown Project Discussion – Previously, staff and the board have discussed buying a building downtown as an investment if the deal made sense.  A business office and a retailer have approached staff about wanting to locate downtown.  The Sterling building was toured with ZRT.  The second floor has lead paint and asbestos tiles and can only be reached from the outside on William Street.  The main floor and basement are in good shape.  To meet ADA compliance, both businesses would need entrances on Broadway.  The asking price is $250K, which is high.  Staff asked direction on whether to spend money on an appraisal.  An accurate appraisal could be very expensive.  Commissioner Rasmussen’s opinion was not to spend money on an appraisal or buying a downtown building if we need to invest in the potential project in the Ring building, which would be more in line with ALEDA’s mission statement.  Commissioner Moore was concerned it would deplete the Port’s reserves.  The consensus was to back off on this potential project.
  • Enderes Building Update – Steve Overgaard is in the process of moving the equipment to the Progress Castings building.  Steve said he vacated the building in December, however, the majority of the equipment was still there in February when ZRT was brought in to assess the building for demolition.  Steve had to come and open the building because he had changed the locks and didn’t provide us with a key.  He has not paid rent since December and his rationale is he ceased operations at the site in December.  ZRT said it would cost more to demo around his equipment, which is contrary to what Overgaard stated.  (Mike Lee arrived here.)  ZRT is working on getting specs together for the demo.  If it’s expected to be under $100K, it can be two written quotes from contractors, otherwise it will have to be formal sealed bids.
  • JOBZ Audits – Work is beginning on the annual audits due April 1, with 7 companies participating.
  • Accounting audit end of March – For information only.
  • Other – Recently, there have been two requests from DEED.  One was for a food-grade building of 55,000 square feet, no existing buildings fit their needs.  The other was a plastics company needing 200,000-400,000 square feet in this area, so the Universal building was pitched.

5.     EX-OFFICIO UPDATE

Freeborn County – Mike Lee, Freeborn County Representative

  • Now the closing date for the abandoned UP property looks like 8/31/15.  The papers were signed yesterday.
  • At am April meeting market rate housing will be discussed.
  • Next Tuesday is a workshop with a focus on roads.
  • There will be a public meeting on 3/17 in the county board room discussing transportation.  County engineer Sue Miller will talk about current issues and a public listening session will be included.
  • There will be a joint city/county meeting on March 19, at 5:30 at city hall.

City of Albert Lea – Mayor Rasmussen gave the update on items not already discussed.

  • The facilities master plan public meeting was held last week.  There was a low public turnout.  The presentation was rudely interrupted by two separate individuals.  The study laid out ideas that could be used for future planning in regards to facilities and looked at potential development opportunities that could be available in the future.  Those who attended thought it was a good presentation.

Chamber of Commerce – Randy Kehr, business community representative

  • Last week the Senate Transportation Committee visited and heard from residents, and local and surrounding communities.  The potential gas tax increase was discussed and it was mentioned that if it passed MN would have the third highest gas tax in the country.
  • Greater MN Partnership is making some progress in the House of Representatives regarding water regulations needing scientific peer review before being adopted.  If the bill to reduce phosphorous in the water passes it will cost Albert Lea $10-20 million to retro fit the waste water treatment plant.  This could double or triple water costs to the consumer.  Also, the state is looking at adding funding to the BDPI program.
  • The annual Ag luncheon is on March 17.  Call the Chamber for tickets.  A representative from Riverland will speak about their new programs.

6.     COMMISSIONER/OTHER ITEMS

  • Discussion on moving 5/6/15 meeting – The reason for moving the meeting date is because President Kehr must attend the Blue Zone Summit in Des Moines, and Executive Director Nolander, City Manager Adams, and Chamber Director Kehr are being asked to be panelists.  Commissioner Rasmussen will also attend if his schedule permits.  After discussion, the date that would work for the majority of the board was Tuesday May 12, beginning at 7:00 a.m.  Julie will send an email with the change.

7.     ADJOURNMENT

  • Commissioner Moore made a motion to adjourn the meeting, seconded by Commissioner Brooks.  The motion carried 6 in favor, 0 opposed.  The meeting adjourned at 8:40 a.m.

Filed and attested March 4, 2015.

Posted in Minutes