May 7, 2014 Albert Lea Post Authority Minutes

By Tyler Golberg | May 7, 2014

May 7, 2014

ALBERT LEA PORT AUTHORITY

MINUTES

May 7, 2014

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 7, 2014 at 7:30 a.m. by President Nancy Skophammer.  Roll was noted by the Board Secretary.
  • COMMISSIONERS PRESENT:  Vern Rasmussen, Jr., Mike Moore, Nancy Skophammer, Ellen Kehr, Keith Fligge, Al Brooks and Nate Jansen
  • COMMISSIONERS ABSENT:  None
  •  EX-OFFICIO MEMBERS PRESENT:  Chad Adams, City of Albert Lea representative and Mike Lee, Freeborn County representative
  •  EX-OFFICIO MEMBERS ABSENT:  Randy Kehr, business community representative
  •  STAFF MEMBERS PRESENT:  Ryan Nolander, Executive Director and Julie Dandrea, Board Secretary
  •  STAFF MEMBERS ABSENT:  None
  •  GUESTS: Rebecca Gisel – Alliant Energy and Mike Murtaugh – Freeborn Mower Cooperative Services

2.     APPROVAL OF MINUTES FROM 4/2/14 MEETING & JOINT CITY COUNCIL/PORT AUTHORITY MEETING 3/20/14

  • The minutes from the April 2, 2014 meeting were reviewed along with the joint city council/Port Authority meeting from March 20, 2014  Commissioner Rasmussen made a motion to approve both sets of minutes as presented, seconded by Commissioner Brooks.  President Skophammer asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.

3.     RESOLUTION PA-14-11 AUTHORIZING PAYMENT OF CLAIMS

  • The claims were presented for review.  Building repairs, property taxes and final audit claims were noted.  Commissioner Fligge made a motion to accept the claims as presented in the amount of $110,304.00, seconded by Commissioner Moore.  President Skophammer asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.

4.     RESOLUTION PA-14-12 SETTING CAPITALIZATION THRESHOLD

  • Executive Director Nolander explained the Port already had a $2,500.00 threshold, but Greater Jobs has been capitalizing at the $500.00 level.  On the recommendation of the auditors, staff would like to formalize the same policy for both entities.  Commissioner Moore introduced Resolution PA-14-12 setting the capitalization threshold at $2,500.00.  Commissioner Kehr seconded it and the resolution passed 7 in favor, 0 opposed.

5.     EXECUTIVE DIRECTOR’S REPORT

Market Rate Housing –ALEDA Park Outlot A has 11.83 acres and is zoned R-1.  This lot was never going to be developed for industrial because it’s too close to housing and the street.  Schrom Construction has again expressed interest in developing the outlot into market rate rental housing with a townhome concept.  Nolander is meeting with them this afternoon and the City is meeting with them later today.  Schrom is planning on 6 six-plexes with attached garages, but not all built right away.  Much discussion followed.  The City’s arena property infrastructure was going to be too expensive to put in.  It’s a race to the market right now with other companies wanting to do rental housing.  Staff is recommending selling the parcel for this redevelopment and getting the hard costs back from the sale.  The consensus of the board was the sale would be a good opportunity.  Before rezoning to multi-family, a public hearing will need to be held by the City.  Formal approval from the Port board would be done as a public hearing at the June meeting, if possible.  The board agreed to move forward with the sale.

South #1 Refrig. Issues – A couple years ago, three units were replaced in the northern space. There are three additional units for the south space.  Two of these units are down, leaving only one unit working.  Staff is getting quotes.  If the quote is over $100,000.00, we’ll need to get formal bids.  Replacing the units may cost $50,000.  Ventura is in a lease through 2019, and is a good tenant.  It might take two weeks to get units delivered so staff will need to make a decision in the very near future. Business retention visit recap:

  • ·  POET- Randy and Ryan met with Steve McNinch.  The ethanol market is favorable right now even though corn prices are up, but corn supply will be an issue.  They have 42 employees and no issues with workforce.  They won’t expand here as state regulatory is tougher here than in other states. They are working on improving efficiencies.
  • ·  Larson Mfg. – Steve Wagner said it’s a seasonal battle to solve staffing needs.  The had 80% turnover last year for their seasonal employees so they increased the starting wage and are looking at ideas such as transferring employees to their Lake Mills plant for winter work to keep them on.

Review site Selector Presentation – Portions of a slide presentation put together by a site selector from the MN Marketing Partnership meeting in March were reviewed.  The Right-to-Work law is a hindrance for MN.  They named two strategic resource items – workforce which is a big issue for us, and real estate, which we can offer.  He concluded by pitching shovel-ready certification, which he provides.

Bank Building Process – Chad Adams provided the update.  Monday night will be a closed City Council session to discuss the developer’s agreement.  The developer is having an open house at the bank building with a presentation on 5/13/14.  On 5/20/14, the Planning Commission reviews the proposal to insure correct usage of the property.  Then on 5/27/14, there will be a public hearing at the City Council meeting to consider the purchase agreement and developer’s agreement.  Closing would take place December or January if the developer gets their tax credits.

Bridon Cordage had to lay off 50 out of 120 employees due to issues at the parent company, Universal Cooperative.  Universal is in the process of restructuring and trying to sell off some of their companies.  Bridon is the most profitable company in the Universal family so that should fare well for the local plant and Albert Lea.  Universal still owns the Tire Warehouse facility.

6.     EX-OFFICIO UPDATE

Freeborn County – Mike Lee, Freeborn County Representative

  • The County board approved a conditional use permit for fiber by the Mower County line.
  • Pat Paquin is the county’s new finance manager with Bill Helfritz retiring.
  • The Board passed a resolution accepting debit and credit cards for paying property taxes.
  • The UP sale is moving forward.
  • Mike noted that Mayor Rasmussen, Commissioner Shoff and Senator Walz did a good job at VA Clinic opening.
  • Mike is on the Shellrock River Advisory Committee and they are setting up a 25-mile long canoe trail on Fountain Lake through Albert Lea Lake dam and onto the Shellrock River to Iowa.
  • Discussion about the bonding bill followed.  Randy Kehr is meeting with Governor Dayton’s bonding person and Senator Sparks today.  (Commissioner Brooks left at 8:40 a.m.)

City of Albert Lea – Chad Adams, City of Albert Lea Representative

  • The Lake Foundation received a $50K grant from Anheuser Busch for Albert Lea Lake.  The group is working on options to bring to the City Council on Monday night.  An Anheuser Busch representative will here Friday to promote their grant to the community.
  • There’s a meeting later this morning with St. Johns and the Watershed.  They hope to come to an agreement on the road easement on the former county club property.  St. Johns is still working on their financing.
  • The Blandin entrepreneur group is meeting next week to see where to go from here.  Within the next month the group will meet with Ryan to see how they can make it work.  They plan to apply for grants for a facilitator to lead the program.
  • The community center feasibility study is going on now and looking at the Blazing Star landing site.  There could still be land available for outlots even if the YMCA joined the community center.  The City will be working with architects and engineers over the next three months on this project.
  • The sewer rebate program is still being worked on.  The City was working with EPA and the state last year for an opinion on what we can/can’t do.  The major hang-up is due to wording in the agreement when the wastewater treatment plant was built.
  • Discussion about what should be done when the City/ALEDA is approached by white collar businesses needing gap financing within community.  Some expansions may only be 2-3 jobs at first, but ultimately 20-50 over a period of time.  State level programs are based on new construction or new jobs with a minimum of 10.  What if only 8 or less new employees and no investment in property or equipment?  Programs are in line with manufacturing jobs, not white collar.  Growth in our community will come from within; how do we incentivize this type of growth?

Chamber of Commerce

  •  Fireworks fundraiser will be May 30.

7.     COMMISSIONER/OTHER ITEMS – None

8.     ADJOURNMENT

  • Commissioner Moore made a motion to adjourn the meeting, seconded by Commissioner Jansen.  The motion carried 6 in favor, 0 opposed.  The meeting adjourned at 9:00 a.m.

 

Filed and attested May 7, 2014.

Posted in Minutes