May 4, 2011 Albert Lea Post Authority Minutes

By Tyler Golberg | May 4, 2011

May 4, 2011

ALBERT LEA PORT AUTHORITY

MINUTES

May 4, 2011

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, May 4, 2011 at 7:30 a.m. by President Vern Rasmussen.  Roll was noted by the Board Secretary.

COMMISSIONERS PRESENT:  Jerry Ehn, Ellen Kehr, Mike Moore, Vern Rasmussen, Jr. and Al Brooks

COMMISSIONERS ABSENT:  Keith Fligge and Nancy Skophammer

EX-OFFICIO MEMBERS PRESENT:  Randy Kehr, business community representative, Pat McGarvey, interim City Manager and Christopher Shoff, Freeborn County Representative

EX-OFFICIO MEMBERS ABSENT:  None

STAFF MEMBERS PRESENT:  Dan Dorman, Executive Director; Ryan Nolander, Assistant Director; Julie Dandrea, Board Secretary

STAFF MEMBERS ABSENT:  None

GUESTS:  Chuck Paczkowski and Greg Steil

2.     APPROVAL OF MINUTES FROM APRIL 6, 2011 MEETING

The minutes from the April 6, 2011 meeting were reviewed.  Commissioner Kehr made a motion to approve the minutes as presented, seconded by Commissioner Moore.  The motion carried 5 in favor; 0 opposed.

3.     RESOLUTION PA-11-07 AUTHORIZING PAYMENT OF CLAIMS

Executive Director Dorman pointed out the monthly ACH payment in the amount of $11,363.17 on the ALEDA Park spec building does not show on the claims report.  The claims report only shows payments made by check.  However, a resolution to make automatic payments was passed on August 4, 2010.  Commissioner Moore suggested this resolution be addressed annually.  A formal resolution will be on the agenda for next month and added to the annual list of resolutions introduced in January of each year.

The claims were presented for review.  Commissioner Moore asked about the payment to Svendesen Masonry.  This was for repair work around a few windows on the Ring Can building.  The large payment to the Freeborn County auditor was for property taxes.  Commissioner Ehn motioned to accept the claims as presented in the amount of $83,922.62, seconded by Commissioner Brooks.  President Rasmussen asked if there were any other questions and hearing none, the motion carried 5 in favor; 0 opposed.

4.     ALMC PROJECT

Executive Director Dorman said the local ALMC board voted to go to the design stage.  They will most likely use state historic tax credits.  Schematic drawings will go to the state for review and then go onto the federal government for approval for use of tax credits.  This could be a 60-90 day process.

5.     14th STREET REPAIR ISSUES

This street is located in the ALEDA industrial park.  Executive Director Dorman explained the problem with the position of the rebar in the road.  ZRT had the road “x-rayed” to see where the rebar lies. The city engineer and ZRT are recommending the contractor saw the longitudinal joints.  In addition, the contractor would pay the city $39,150 for future repairs.    No action is required.

6.     ANNUAL RETREAT PLANNING SESSION AND PROGRAM OF WORK

The annual retreat and regular meeting will be held at the Wedgewood Cove on July 6, 2011.  A Program of Work involving strategies to help guide us and carry out the mission statement was handed out.  Executive Director Dorman asked the board to review this document and suggest changes.  Several other Minnesota EDA’s were contacted to inquire as to what they use for planning.  Most use their city’s comprehensive plan and have an annual retreat as we do.  ALEDA is poised to respond to opportunities, but without a state government partner, it’s difficult to compete with other states.  As last month’s JOBZ audit report showed, 600+ jobs were created since the program’s inception.  Other cities infuse cash into their programs, but in Albert Lea both organizations (Port Authority and Greater Jobs, Inc.) are self-funded by use of existing assets.

7.     EXECUTIVE DIRECTOR’S REPORT

  • ALEDA Spec Building – It’s likely we will be leasing one-third of the spec building to Zumbro River Brands in a six-month lease with an extension.  Executive Director Dorman asked for board approval for a six-month lease at $2.90 per foot, triple net, with six additional months at $2.75 per foot, triple net.  A lease for the entire building would be entertained at any time.  The Port Authority cost for the necessary build-out would be $20,000 to $30,000.  These costs include an eyewash station, water heater, electric charging station for a forklift and a unisex bathroom.  These items would likely be required for whoever leased the space.  A dividing wall is not required, but could be added should another company wish to lease space.  Commissioner Kehr asked what the square footage of the building is and it is 62,500 SF.  Commissioner Ehn asked if there is an estimate job on growth.  Dorman will check with ZRB.  Using the space for warehousing would not add as many jobs and packaging would.  President Rasmussen asked if there were any other questions.  Hearing none, Commissioner Ehn made a motion to move forward and enter into a contract with Zumbro River Brands.  Commissioner Moore seconded and the motion carried 5 in favor; 0 opposed.
  • A memo from Pat McGarvey was passed out showing some of Iowa’s economic development projects and the aggressive incentives provided to them from the state and local levels. Executive Director Dorman thanked Pat for the information and reiterated the need to replace the JOBZ program to enable us to compete with our neighboring states.
  • There is a parcel at the end of Sykes Street by the Kleentec building the Port has been paying property tax on.  The city is listed as the owner.  The land has been retained to make sure rail access is retained otherwise there is not much value to it.  This could be made tax exempt.  Dorman asked the board for their thoughts if it should left as is or put in the Port Authority’s name.  Commissioner Brooks asked if there is infrastructure under it and there is not.  Commissioner Moore said whoever owns the lot owns the rail access.  He also said the switch behind Mrs. Gerry’s will never happen because Union Pacific’s standards have changed and it would be expensive to hook up.  Dorman will talk to the city council to see what they want to do.
  • Executive Director Dorman received a memo from John Kluever requesting Mike Lee be appointed the new ex-officio to the Port Authority.  The county commissioners recommend the commissioner, but the Port Authority board must approve it.  Commissioner Kehr made a motion to approve Mike Lee as the new ex-officio to the Port Authority and Commissioner Brooks seconded.  The motion passed 5 in favor, 0 opposed.

8.     EX-OFFICIO UPDATE

Freeborn County

  • The Teamsters union contract has been approved for the detention center for two years
  • The demolition of the goat/sheep barn and a new building was approved.
  • Chris touched on a recent newspaper article regarding the county auditor/recorder possibly being changed to an appointed position instead of elected one.
  • The sheriff’s office is being reorganized and a chief deputy position was approved.  Previously, the position was in name only.  Also, patrol sergeants management positions have been created.
  • Chris attended a national railroad conference in Chicago.  He asked what we can do to help companies who want rail capabilities.  Executive Director Dorman said the previously mentioned, Program of Work, has identified the Glenville corridor as such.  Both DEED and ALEDA market that property for companies needing rail.  Another opportunity is the Blazing Star Landing site.  This would be a prime location for a distribution center and the property could be screened to hide….Rail connection has also been retained by Alamco on the 9th Street property.
  • The Hartland rail abandonment goes to the Surface Transportation Board next week.  However, the acquisition may take years.
  • The Shell Rock Wind Farm went before the utilities commission on April 15.  This could bring 24-29 turbines to Pickeral Lake Township.  Construction is due to start in 2012.

City of Albert Lea

  • Plat 2 for the I-35/I-90 Business Park and the developer’s agreement will be on a special planning meeting agenda.  Renaming a street from a numbered street to Hartman Street doesn’t require going to planning as re-platting does. Renaming the street will go to the city council.  Executive Director Dorman said the hotel group buying a lot would like a name instead of a number on the street to feel part of the city.
  • Pat thanked Dan for all his assistance on the ALMC project as he will no longer be the interim city manager to see it through.
  • The city has developed a contingency plan with options for meeting the budget if the state reduces its funding.  Either raise taxes locally or without raising taxes, another way would be through staff reductions.  This could occur through retirements and a reduction of full time to part time staff.
  • In his parting comments, Pat would like to see the Port Authority become a major player in Albert Lea and help to re-vitalize downtown.  Commissioner Moore stated he would like to see the private property owners get on board also.  Pat believes the city needs the streetscape project and feels Albert Lea has the ability to get it done without state aid if the state would fund half the amenities.
  • Pat thanked the board and said he has enjoyed working with them along with the city staff and council.

Chamber of Commerce

  • The sign ordinance is going before the planning commission.  There is concern it may be too limiting for businesses.
  • The governor has appointed a new judge for Freeborn County, U.S. Navy Capt. Ross Leuning, who will be sworn in July.  He is from Owatonna, but will be moving to Albert Lea.
  • The Charter Commission met regarding changing the mayoral term to four years.  They would like more public input so there will be phone numbers listed on the government channel for the public to voice their opinion. There are some unfairness issues to work out in consideration to council members who may run for mayor.
  • Along with Executive Director Dorman’s help, Assistance Director Nolander and Randy Kehr will host the Leadership day that will begins at the ALBDC followed with lunch at Crescendo and local business tours.

9.     COMMISSIONER ITEMS

Pat McGarvey mentioned for information, the Cargill plant in Mason City is expanding again.  Their city council approved a 100% tax abatement.

10.  ADJOURNMENT

Commissioner Kehr made a motion to adjourn the meeting, seconded by Commissioner Moore.  The motion carried 5 in favor, 0 opposed.  The meeting recessed at 9:05 a.m.

 

Filed and attested May 4, 2011.

 

_____________________________                    __________________________

President                                                               Board Secretary

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