May 5, 2010 Albert Lea Post Authority Minutes

May 5, 2010

ALBERT LEA PORT AUTHORITY

MINUTES

Wednesday, May 5, 2010

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 5, 2010 at 7:30 a.m. by President Ellen Kehr.  Roll was noted by the Board Secretary.

MEMBERS PRESENT:  President Ellen Kehr; Commissioners:  Al Brooks, Keith Fligge, Mike Moore, Vern Rasmussen Jr., and Nancy Skophammer.

MEMBERS ABSENT:  None.

EX-OFFICIO MEMBERS PRESENT:  Randy Kehr, Business Community representative; John Kluever, Freeborn County representative; Jim Norman, City of Albert Lea representative.

EX-OFFICIO MEMBERS ABSENT:  Christopher Shoff.

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

STAFF MEMBERS ABSENT:  None.

VISITOR:  Mike Lee.

1. APPROVAL OF MINUTES OF THE APRIL 7, 2010 REGULAR MEETING.

The minutes of the April 7, 2010 meeting were reviewed.  Commissioner Rasmussen made a motion to accept the minutes as presented, seconded by Commissioner Fligge.  The motion carried with 6 in favor and 0 opposed.

2.       RESOLUTION PA-10-09  AUTHORIZING PAYMENT OF CLAIMS.

The claims were presented for review.  Commissioner Moore made a motion to approve Resolution PA-10-09 authorizing the payment of claims in the amount of $96,329.82, seconded by Commissioner Brooks.  The motion carried with 6 in favor and 0 opposed.

3.       PALLETON PALLETS – UPDATE.

Executive Director Dorman informed the Board that Palleton Pallets continues to put their plan together to construct a building.  They are looking at the Freeborn Mower site which would require rezoning from I-1 to I-2.  Director Dorman said ALEDA will be helping Palleton with USDA information on grants, etc. and would be involved in the possible rezoning of the property.  People have asked what kind of companies purchase pallets.  Palleton’s largest customer is Larson Doors and Windows.  Palleton would utilize their excess pallet wood to heat their new building, which would qualify them for USDA grants.  They may also put in a kiln to dry the wood.

4.       SPEC BUILDING LEADS.

Director Dorman informed the Board that there have been some good leads recently, and that one of the ‘leads’ is coming back to revisit the spec building.  This company is a Minnesota company who would like to expand, and does manufacturing of food ingredients, similar to Zumbro River Brand.  The company also looked at an Owatonna site.

On Thursday, May 6, management from the company will be coming to Albert Lea.  This company is interested in possibly leasing one-half of the new spec building.  Director Dorman has looked at several different ways to rent the building.  Additional work would need to be done on the office space.  Director Dorman shared fees which other companies pay to lease buildings in Albert Lea.  The rents range from $2.25 per square foot to $4.00 per square foot.  Director Dorman suggested that we lease the new spec building for $2.40 per square foot for five years.  Discussion followed.  Dorman said that there may be money in the Minnesota Investment Fund to assist the company with their expansion.  Commissioner Moore suggested using the other half of the building, which will not leased, for temporary storage.

TIF Strategy – Director Doman shared his thoughts as to how to maximize the TIF benefit.  The City would have 9 years to collect the TIF.  If the company leases after July 5^th, there would be no tax due in 2011.

The company would create at least 20 and up to 40 jobs and would pay up to $18.00 per hour.

5.    EXECUTIVE DIRECTOR’S REPORT.

• Design Standards.

Executive Director Dorman informed the Board that the latest version of the design standards is much improved and should not inhibit the growth of Albert Lea.

• Board Retreat – July meeting?

Director Dorman asked Board members if they would like to have a retreat in July, and should we   again invite the ALBDC Board to join us as we did last year?  The consensus of the Board was to hold the retreat following the regular ALEDA meetings on the regular meeting date of July 7^th, and to invite the ALBDC Board to join in the retreat.  Meetings will begin at 7:30 a.m., followed by the retreat, which will last until about noon when lunch is served.   Nancy Jensen will check with Wedgewood Cove to see if that date is available.

• Wind Power 2011.

Executive Director Dorman informed the Board that he will be attending a Wind Power Conference in Dallas, Texas from May 24^th – 26^th.  Last year, the conference was held in Chicago.  Dorman said that the State will hire someone this year to set up appointments.  In addition, with fewer people being asked to go, he will get more time in the Minnesota booth.  This will allow for further networking to take place.   The State is attempting to get wind turbine manufacturers to locate in Minnesota.

• Revolving Loan Fund.

Directors Dorman and Nolander have been working on a possible check list for any revolving loan fund applications.  He distributed copies of the first draft of a check list to Board members.  He suggested that any loan application start here, but that ALEDA would always be in consultation with the City.  Dave Lundak of the SBDC could provide assistance with spread sheet analysis of financials.  Dorman also suggested that a loan review committee be formed.  He said that we could make use of members from the ALBDC Board as he feels these Board members are underutilized.

Dorman expressed his thoughts that it would be good to have a process in place, which would provide good customer service, which is so important.  He suggested that we adopt something like this loan check list, and possibly review the business subsidy loan.  Discussion followed.  Chamber Director Kehr felt that this process would give the City Council the tools to make a good decision regarding any loan applications.  Director Dorman reiterated that ALEDA and the City would work together on the process.  Discussion followed.  It was suggested by Board members that two more items be added to the loan check list; a criminal background check and also to do an Internet presence check, i.e. on Facebook.   This could alleviate any rumors that may arise.  ALEDA would need to get documentation to do a criminal background check.  President Kehr asked for volunteers to be on the loan review committee.  She suggested two members of the ALEDA Board and two members of the ALBDC Board to look at the business subsidy plan.  Commissioners Nancy Skophammer and Mike Moore volunteered for the ALEDA Board.  Discussion followed.

• Open ALEDA Board Position.

Executive Director Dorman informed the Board that several people have stepped forward and applied for the open position on the ALEDA Boards.  A task force was suggested by Mayor Murtaugh to review the applications.  The Task Force would include the mayor, two non-City counselors from the ALEDA Board, one ALEDA Board member who is a City Council member, and one City Council member who is not part of the ALEDA Board.  Commissioner Fligge volunteered to be on this task force.  Vern Rasmussen would be the City council representative, and either Mike Moore or Nancy Skophammer will be the other ALEDA Board member.  The approval of the person, who will assume the open position, will be on the May 24^th City Council agenda.  Mayor Murtaugh will let us know who the non-ALEDA City Council member will be who will serve on the committee.  Three applications have been submitted for the open ALEDA Board position:  Dave Klatt, James Broberg and Jerry Ehn.

6.     EX-OFFICIO UPDATES.

John Kluever  –  Freeborn County.

• Discussion continues on the SHIP position.  The County Board members have not reached a consensus on the issue as yet.
• A concrete batch plant will be built in order to get concrete out to the wind farm site.
• Three Watershed members are up for appointment.  Their terms will be up the end of June.
• Chemical Dependency Center – Kluever said that the County is preparing to take the Chemical Dependency Center ‘in-house’ as of January 1, 2011.  By doing this, the County will save $60,000 -$80,000 per year, and that it will be a project for the Human Services department.
• Freeborn County will pull out of the South Country Health Alliance effective January 1, 2011.  There are 14 counties who are part of the Alliance – three counties have pulled out and eleven remain.
• The County Board is working on approving a template to follow in the event that another wind farm developer may come into the County.  Kluever felt the process with the Bent Tree Wind Farm people appeared cumbersome at times.

Jim Norman – City of Albert Lea.

• The City Council agreed to an on-boarding session which will be valuable to the both Council and the City Manager.
• On April 16^th, Jim Norman, Bob Graham and Lee Bjorndahl met to discuss the Freeborn Bank Building.  There seems to be some issues of structural needs for the building.

Randy Kehr  –  Chamber of Commerce.

• New City Manager, Jim Norman spoke to the CEO group in April.
• The Chamber is temporarily located in the Northbridge Mall.  Poll results indicated that sixty-six percent of the membership felt that the Chamber office should be downtown.  The Chamber is currently looking at possible relocation sites.
• In working with Bent Tree Wind Farm staff, the Chamber now has links to information on wind farms.
• Alliant Energy has applied for a 20% increase in rates, which would have a huge impact on the larger utility users.  The Public Utilities Commission will make the final decision on the increase.
• Design Standards – Director Kehr sent Chamber comments on the design standards to Interim City Manager, Lee Bjorndahl for his review.  Kehr felt the biggest roadblock was eliminated which was the major window requirement.  These requirements may have been restrictive to any businesses coming into Albert Lea.
• Southeastern Minnesota League of Municipalities – Director Kehr informed the Board that he, Dan Dorman, Ryan Nolander, Mayor Mike Murtaugh, and City Manager Jim Norman were invited to attend the Southeastern Minnesota League meeting although Albert Lea is not a member of the League.

 

7.     COMMISSIONER ITEMS.

• None.

8.     ADJOURNMENT.

Commissioner Fligge made a motion to adjourn the meeting, seconded by Commissioner Moore.  The motion carried with 6 to approve and 0 opposed.  The meeting was adjourned at 8:40 a.m.

Filed and attested May 5, 2010.

Ellen Kehr, President                   Nancy Jensen, Secretary