May 13, 2009 Albert Lea Post Authority Minutes

By Tyler Golberg | May 13, 2009

May 13, 2009

ALBERT LEA PORT AUTHORITY

 MINUTES
Wednesday, May 13, 2009
7:30 a.m.
Albert Lea Business Development Center

 

1)       The Regular Meeting of the Albert Lea Port Authority was called to order on Wednesday, May 13, 2009 at 7:30 a.m. by President Ellen Kehr and roll was noted.

 

COMMISSIONERS PRESENT: President, Ellen Kehr; Commissioners: Al Brooks, Paul Field (arrived at 7:35 a.m.), Keith Fligge, Mike Moore, Vern Rasmussen Jr. (arrived at 7:38 a.m.).

COMMISSIONERS ABSENT: Nancy Skophammer.  

 

EX-OFFICIO MEMBERS PRESENT: Chris Shoff, Freeborn County representative (arrived at 7:40 a.m.); Victoria Simonsen, City of Albert Lea representative (arrived at 8:25 a.m.)

EX-OFFICIO MEMBERS ABSENT: Randy Kehr, Business Community representative. 

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

STAFF MEMBERS ABSENT: None

GUEST: Sandra Hans of LarsonAllen LLP.

2)       APPROVAL OF MINUTES OF THE APRIL 1, 2009 REGULAR MEETING.

The minutes of the April 1, 2009 meeting were reviewed. Commissioner Moore made a motion to accept the minutes as presented, seconded by Commissioner Fligge. The motion carried with 4 in favor and 0 opposed.

3)       APPROVAL OF MINUTES OF THE APRIL 22, 2009 SPECIAL MEETING.

The minutes of the April 22, 2009 special meeting were reviewed. Commissioner Fligge made a motion to accept the minutes as presented, seconded by President Kehr. The motion carried with 4 in favor and 0 opposed.  

4)       RESOLUTION PA-09-10 AUTHORIZING PAYMENT OF CLAIMS. 

The claims were presented for review and discussion followed. Commissioner Brooks made a motion to approve Resolution PA-09-10 authorizing the payment of claims in the amount of $95,203.89, seconded by Commissioner Fligge. Discussion followed. The motion carried, with 5 in favor and 0 opposed.

5)       2008 FINANCIAL REPORT REVIEW – Sandra Hans of LarsonAllen

Executive Director Dorman introduced Sandra Hans of LarsonAllen. The LarsonAllen accounting firm are the auditors for the Port Authority financial report. The report was prepared by Rhonda Moen, Finance Director of the City of Albert Lea, and reviewed by Executive Director Dan Dorman before compilation and Board presentation.

Ms. Hans reviewed the financial report with the Board.   She reported to the Board that she felt the Port Authority ‘had a good year with many positive things happening’.

Commissioner Brooks made a motion to accept the financial report as presented, seconded by Commissioner Moore. The motion carried, with 6 in favor and 0 opposed.

6)       SPEC BUILDING FINANCING:
·         US Bank Bid
·         Wells Fargo Bid
·         Farmers State Bank Bid

 

Executive Director Dorman informed the Board that the Port Authority had received 3 bids from banks for financing the new spec building in the amount of $1,800,000. Farmers State Bank was the only bank to submit a variable rate option for the 10 year period. US Bank would submit a variable but the rate was higher, more fees would apply and there would be a balloon in five years. US Bank provided the lowest fee structure, but the reduced fees would be offset by the higher interest rate within the first year compared to Farmers State Bank and within 3 years with Wells Fargo (comparing the lowest US Bank option). Discussion followed. Executive Director Dorman recommended the Board go with the variable rate from Farmers State Bank with the option to prepay on the principal. President Kehr suggested that as a Board, we should be watchful of the variable interest rate in the future, and if the interest rate would continue to climb, the Board could manage it at that time. Director Dorman said that the Board’s goal is to pay off the debt as additional land is sold in the ALEDA Park, and hopes that we would be in a position to pay off the debt in 5 years. The Board felt that this would be an ideal time to build the spec building due to the low interest rates. At the Special meeting held on April 22, 2009, the Port Authority Board made the commitment to build a new spec building in the ALEDA Industrial Park. Commissioner Field made a motion to take advantage of the Farmers State Bank program with a beginning variable interest rate of 5.5%. The motion was seconded by Commissioner Moore and was approved with 6 in favor and 0 opposed.

7)       INTRODUCTION TO NEW WEBSITE.

Executive Director Dorman introduced the new website to the Board members. The Board approved of the website and complimented the staff on a ‘job well done’. Director Dorman asked the Board members to take time to review the site again on their own time to see if they would like to offer any ideas or suggestions.

 

8)       EX-OFFICIO UPDATES.

Chris Shoff – Freeborn County Representative

  1. ICE Contract – Freeborn County is still waiting for the final word on the ICE Contract as someone from Washington D.C. must sign off on the document.
  2. Freeborn County Commissioner Shoff was in Washington D.C. on Friday, May 8th. At that time, he talked with Tim Walz regarding the VA Clinic project. He said that possibly in December the bidding for the project would open, and that Freeborn County Administrator John Kluever will be the point person for the project.

 

Victoria Simonsen – City of Albert Lea.

  1. Simonsen said that the next few days are going to be very busy with Blue Zones leading
    up to their kick-off on Thursday evening at the High School.
  2. Simonsen discussed the summer projects that have been approved by the City Council:
  • The airport stimulus funding has been received so that work can begin on the airport runway addition.
  • The new Plaza Street should be paved this week.
  • There are major projects with State aid roads; they will be putting in a lot of new sidewalk.
  • North Shore Drive project will begin after the Plaza Street project is completed.
  • The bids for summer projects came in really good, approximately $250,000 less than projected. Local contractors received the projects.
  1. The City is awaiting the end of the current legislative session to see which tax bill will be approved for City funding.
  2. Negotiations will begin with the four local unions for city employees.
  3. Art Space – They continue to move forward with the project and will be discussing a predevelopment agreement. Discussion followed as to the ownership of the building if Albert Lea is chosen for the Art Space project.

Randy Kehr – Chamber of Commerce (written report in his absence).

  1. The Chamber partnered with Riverland and the Austin Chamber to call several workforce summit meetings for the month of June. They include Manufacturing, Alternative Energy, Construction Trade (carpentry) and Construction Trade (construction electrician).
  2. He traveled to Decorah with Susie Petersen, Ryan Nolander, Larry Nelson from Alliant Energy, and Ellen Kehr to attend a daylong seminar on “Marketing your Downtown as a Destination” through community branding.
  3. He had communicated with all of our JOBZ companies and asked that they contact the House and Senate Tax Conference Committee and our local representatives regarding the importance of the continuation of their JOBZ benefits.
  4. He has been working with the AARP/Blue Zones Vitality Project sponsored by the United Health Foundation, and the Chamber has arranged a visit to Innovance/Lou Rich Wednesday morning by Dan Buettner, Dr. Brian Wansink, and Dr. Leslie Lytle. It is anticipated that AARP The Magazine will document their efforts to bring health and wellness to their workforce.
  5. The Chamber has arranged a special “Business Round Table” for Thursday afternoon (5/14/09) from 1:30 to 3:00 p.m. at Mrs. Gerry’s. The topic will be the Employer Pledge and things that companies can do to assist their workforce and their families to live longer and healthier lives.
  6. Thursday, May 14, 7 p.m., Albert Lea High School: Launch of the AARP/Blue Zones Vitality Project sponsored by the United Health Foundation. Randy encouraged everyone to attend.

9)       EXECUTIVE DIRECTOR’S REPORT.

  1. Windpower Conference – Executive Director Dorman attended the Windpower Conference last week in Chicago. The number of attendees was more than Minneapolis could handle, and so the conference had to be moved to Chicago. Lou-Rich had a booth there and they were showcasing their metal fabrication business. Pro Manufacturing representatives also attended the conference and in doing so, acquired a good business lead. Discussion followed. Director Dorman said that Minnesota companies are trying to capitalize on wind power manufacturing production, but that Iowa, Illinois and Wisconsin have wind manufacturing companies already in place.
  2. Bent Tree Wind Farm – Executive Director Dorman was able to schedule a meeting with Steve Sviggum to assist Alliant Energy and Freeborn County in resolving issues that needed to be dealt with before construction on the wind farm could begin.
  3. I35/I90 Business Park – Last week, Ryan attended the TEP panel meeting and the committee has agreed to let us move forward with the planned road for the I35/I90 Business Park. ALEDA is also close to getting the federal grant dollars they had applied for, to assist in the construction of the road.
  4. Project Magnolia – Director Dorman has not yet heard when the meeting with Project Magnolia will take place.
  5. Ring Can – The lease for Ring Can expires on January 31, 2010. The company wishes to down size and utilize only 20,000 square feet of space. They will let us know when they want us to market the other space.
  6. Merricks (Freeborn Foods) – Director Dorman informed the Board that Merricks had to lay off 13-14 people as they need to refurbish one of their dryers. The business remains financially strong.
  7. Bridon Cordage – A Bridon Cordage executive meeting is scheduled for next week, and at this time they will try to determine whether or not to build an 110,000 square foot building next to their current facility, or to lease warehouse space. Carpenter may have some short-term leasing areas available which Bridon could use temporarily.
  8. Director Dorman has been asked to speak with the coalition of Greater Minnesota Cities regarding LGA.
  9. Building colors and brick samples for the new Spec building were available for Board review.

10)   COMMISSIONER ITEMS.

  • Commissioner Field informed the Board that on Tuesday, May 19th, people can go out to Wedgewood Cove for dinner for a ‘soft’ opening of the new facility.
  • President Kehr suggested that we plan a Board retreat for July or August and she also suggested that we invite the ALBDC Board. She felt it would be a good combination of people, and that we could use that time to brainstorm new ideas in economic development.

11)   ADJOURNMENT.

President Kehr made a motion to adjourn the meeting at 9:15 a.m., seconded by Commissioner Fligge. The motion carried with 6 to approve and 0 opposed. .

Filed and attested May 13, 2009.

_______________________________                   _____________________________

Ellen Kehr, President                                        Nanciana Jensen, Board Secretary

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