November 5, 2014 Albert Lea Post Authority Minutes

By Tyler Golberg | November 5, 2014

November 5, 2014

ALBERT LEA PORT AUTHORITY

MINUTES

November 5, 2014

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, November 5, 2014 at 7:30 a.m. by President Fligge.  Roll was noted by the Board Secretary.
  • COMMISSIONERS PRESENT:  Vern Rasmussen, Jr., Mike Moore, Ellen Kehr, Keith Fligge, Al Brooks, and Nate Jansen
  • COMMISSIONERS ABSENT:  Mark Heinemann
  • EX-OFFICIO MEMBERS PRESENT:  Chad Adams, City of Albert Lea representative; Randy Kehr, business community representative; Mike Lee, Freeborn County representative
  • EX-OFFICIO MEMBERS ABSENT:  None
  • STAFF MEMBERS PRESENT:  Ryan Nolander, Executive Director and Julie Dandrea, Board Secretary
  • STAFF MEMBERS ABSENT:  None
  • GUESTS:  Mike Murtaugh, Freeborn-Mower Cooperative

2.     APPROVAL OF MINUTES FROM OCTOBER 1, 2014 MEETING

  • The minutes from the October 1, 2014 meeting were reviewed.  Commissioner Rasmussen made a motion to approve the minutes as presented, seconded by Commissioner Kehr.  President Fligge asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

3.     RESOLUTION PA-14-19 AUTHORIZING PAYMENT OF CLAIMS

  • The claims were presented for review. Nolander noted the repair to the in-drive, the earnest money returned to Schrom Construction, and the assessments for Y.H. Hanson Avenue.  Commissioner Jansen made a motion to accept the claims as presented in the amount of $33,067.08, seconded by Commissioner Brooks.  President Fligge asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

4.     EXECUTIVE DIRECTOR’S REPORT

  • ALEDA refresher – A handout was passed out clarifying some recent campaign points that were inaccurate.  Per state statute, the Port Authority is its own entity, a political subdivision of the state and not a department of the City.  This takes all liability away from the City and taxpayers for Port actions.  Regarding the comment on lack of input from the city, two city councilors and the city manager are on the board, plus there is weekly communication between the City and ALEDA.  Currently, they are working together on six downtown projects that are not industrial-based, which was another inaccuracy about the Port only helping industrial businesses.  With the Port and Greater Jobs under the same economic development umbrella, businesses outside the city are able to receive assistance since Greater Jobs can work in the County and the Port is restricted to the City.  Regarding the industrial parks that have few tenants, it can take 25-30 years to fill an industrial park.  The private market doesn’t want to develop parks because of the risk, but for economic development we have to be prepared for industry growth.
  • Enderes title update – This project is almost completed.  By the end of year, the title clearance will be done. Northbridge Tool originally said they would be out the end of November, but he has not responded to emails.  They have paid property taxes through November 30.
  • Mrs. Gerry’s update – City Council approved modifications to the TIF plan to bring in Select Foods and MCB.  The developer’s agreement is not approved yet.  Negotiations for land for the regional pond is not going well.  The regional pond may not be feasible before their construction begins.  It makes sense long-range to have a regional pond for the area since having one at the site across Hammer Road would help future land development be ready for a project without putting in private dollars.  There’s a meeting tomorrow with Mrs. Gerry’s.
  • St. John’s update –Chad Adams gave the update.  St. John’s is amending their building plans to lower costs.  There are still a lot of loose ends on the TIF agreement.  The plat modification will be approved at the next council meeting.  The City is meeting with them every week.
  • Downtown projects – Once the Alliant sale is finalized, the building has an interested party.  The former Courtly Manor building has a purchase agreement for a new business to locate there in the spring.  The Sterling Drug building has an interested party who would move their business there, and the Tax Refund building will have a business locating there next spring.  A gentleman connected to a show on the DIY network, is looking to open a store in downtown Albert Lea.  It would be a re-purpose store and would be open every other weekend on Friday nights, Saturday and Sunday.  Due to his following, this store could create a lot of traffic for Albert Lea.  They don’t want to own so this could be a lease investment opportunity for the Port.  After more discussion, Commissioner Rasmussen made a motion to direct staff to look into purchasing a building downtown should a good opportunity present itself.  Commissioner Moore seconded it and the motion passed 6 in favor, 0 opposed.
  • Ruby’s Pantry & South Bldg. #1 –The Assembly of God Church, working through Ruby’s Pantry, approached staff looking for a place to unload food for their customers during the winter months on the first Saturday of month from 7 am-2 pm.  The Ring Can building has 19,000 SF available. The city attorney is working on wording for a hold harmless agreement with them. They realize they would have to vacate if a paying tenant comes along.  Ruby’s may be looking for a distribution center in the future in our area and we would be happy to assist them. Commissioner Rasmussen made motion to approve a non-gratis lease provided there is no liability to the Port Authority and Commissioner Kehr seconded it. After more discussion, the motion passed 6 in favor, 0 opposed.
  • Other Items:Commissioner Rasmussen spoke with the regional Budweiser representative who had been at the Golden Point event.  He said the company would like to locate a brewery in MN in the future.  Their Michelob Golden Draft brand’s largest market is in MN.  He suggested ALEDA and the City get out ahead and work together on a presentation. Dollar General is also supposed to be contacting us about a possible distribution center.
  • GMNP – A draft was handed out of their 2015 policy positions.  Some of the high points are broadband, workforce housing, transportation, and a statewide business property tax push for exemptions for expanding businesses.  Executive Director Nolander is pushing the prevailing wage issue, which is unfavorable toward Greater MN business expansions trying to use state programs due to how it is calculated.
  • U of MN Extension Handout – According to their survey, existing business adds almost six times as many jobs as new business.  Marshall, MN brings county, city government, business people and residents together in a summit every year. It’s a great way to explain why local government decisions are made.

5.     EX-OFFICIO UPDATE

Freeborn County – Mike Lee, Freeborn County Representative

  • Mike congratulated Commissioners Rasmussen and Brooks on their re-elections.  County Commissioner Shoff was also re-elected along with a new sheriff and new state rep.
  • The County ratified an agreement with patrol sergeants for a 2.25% increase and non-union workers the same.
  • Pat Paquin is now the full-time Finance Director.
  • Approved the sale with the UP on the abandoned rail along highway 13. The closing should take place Dec 18th.
  • Property tax statements will be sent out in the next couple of weeks.
  • Two workshops will be held to finalize the 2015 budget.
  • The Shell Rock damn project should be 90% completed in December.

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

  • Working with GMNP to advocate for tools to help with workforce/market rate housing.  One developer is starting to back away because of a financing gap, so the City is looking for ways to bridge the gap.  The City may host a housing summit with local bankers and potential investors to consider starting housing developments a little at a time.  Austin is having a similar meeting today that he will attend.
  • The developers for the Freeborn Bank building did not receive the housing tax credits.  They will get historical credits from the state.  They may go a different route that could add market rate housing on the top floor.  The Art Center is anxious to get in.  The City may have to be open for other uses, but right now are in an exclusive agreement with the developer.
  • The Blandin group has been awarded $20K from SMIF for the ALEAP entrepreneur program.  With matching dollars, they will have $40K.  It will be late spring before the program gets rolling.
  • Tax levy increase is preliminarily set at 3%.  Water rates will also increase, but sewer rates shouldn’t see an increase for 2015.
  • Facility master plan is coming back with the final draft next week.
  • The reorganizational plan will have a second reading on November 24.
  • The housing development initially interested in the Port’s property may still build housing on the corner of 9th Street and highway 69 with two developers working on that project.

Chamber of Commerce – Randy Kehr, business community representative

  • The annual meeting had great speaker, who is an internet forensic expert. He said a Russian expert designed the software that breached Target and Home Depot.
  • Zumbro River Brand, with ALEDA’S help leasing them warehouse space, was named business of year.  Medium business was Freeborn Lumber, and Thompson Electric was the small business of the year. The lifetime member award went to Keith Fligge.
  • Blue Zones is looking for a good turnout tonight at 5:30 at the High School. Dan Buettner will be there. Albert Lea is still in the forefront. Portland, Oregon is bringing Randy there to be on a panel with others to discuss healthy living initiatives.

6.     COMMISSIONER/OTHER ITEMS

  • Commissioner Brooks got a call from the Tribune late on election night.  They asked about economic development.

7.     ADJOURNMENT

  • Commissioner Brooks made a motion to adjourn the meeting, seconded by Commissioner Kehr.  The motion carried 6 in favor, 0 opposed.  The meeting adjourned at 8:50 a.m.

 

Filed and attested November 5, 2014.

Posted in Minutes