November 6, 2013 Albert Lea Post Authority Minutes
November 6, 2013
ALBERT LEA PORT AUTHORITY
MINUTES
November 6, 2013
Albert Lea Business Development Center
- CALL TO ORDER & NOTATION OF ROLL
The Regular Meeting of the Albert Lea Port Authority was called to order on Wednesday, November 6, 2013 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 and Al Brooks
COMMISSIONERS ABSENT: Jerry Ehn
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: Mike Murtaugh-Freeborn Mower Cooperative Services, Harold Kamrath, and Rebecca Gisel-Alliant Energy
2. APPROVAL OF MINUTES FROM OCTOBER 2, 2013 MEETING
The minutes from the October 2, 2013 meeting were reviewed. Commissioner Rasmussen made a motion to approve the minutes as presented, seconded by Commissioner Moore. President Skophammer asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.
3. RESOLUTION PA-13-22 AUTHORIZING PAYMENT OF CLAIMS
The claims were presented for review. Executive Director Nolander noted the payments for the Tribune Impact edition and the addition of gutters to remedy the ice issue on the north side of the ALBDC building. Commissioner Fligge made a motion to accept the claims as presented in the amount of $20,950.17, seconded by Commissioner Moore. President Skophammer asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.
4. EXECUTIVE DIRECTOR’S REPORT
Project Bluejay – This was the meat processing facility lead in the ALEDA Park. We’ve learned MN is no longer in the running because the company didn’t want two facilities close together. We welcomed them to relocate their company headquarters here, but they prefer to be in the metro area.
Enderes (Northbridge) Tool update – In exchange for a reduction in rent, Steve Overgaard agreed to make improvements to the building; however, staff has no indication this has been done. He also hasn’t reimbursed the Port for the second half property taxes. He said the Assessor was going to abate some of the taxes because the building is overvalued. Executive Director Nolander copied and pasted the part of the lease that referenced the repairs in an email to him. Either party can terminate the lease with four months’ notice. If notice is given, the lease will terminate on Feb 28, 2014 and then go month-to-month. Julie reminded him of the opt-out with his invoice last month, but he has not responded. Kennedy & Graven, who represented the Port since the forfeiture, said he still has time to do repairs, but we should be prepared for what we’ll need to do. Staff will continue working on it and will keep the board informed. A longer lease at a higher rate was the consensus, especially if no repairs have been done.
CBOC-VA Clinic – The most recent news is they are still reviewing it for two more weeks and we don’t know if that means a decision will be made. Then, it’s 120 days until it has to be up and running.
Interstate Molding Note – Back in 90’s, they were buying a Port-owned building on Myers Road on contract for deed. Diesel Specialties was in a lease/purchase agreement with the Port on the building next to it. When Diesel left, Interstate Molding assumed the contract and has paid this building off. The Port converted the remaining contract to a note to allow them to get a building permit so they could add onto the building. It was determined that the lease assignment from Diesel was never notarized so it wasn’t possible to record the transaction. Both the city attorney and Port staff have tried repeatedly to contact the woman from Diesel who signed the document, but she won’t cooperate. Interstate Molding wants to pay off the note to the Port and put a mortgage on the property, but his banker is concerned about this situation. The attorney for Interstate Molding, who handled this transaction, has the responsibility for clearing this matter up.
Entrepreneur Group Discussion – At the July retreat, Terry Whipple spoke on this topic. SMIF, Riverland’s Lunch & Learn Group, Albert Lea High School, and the Blandin 2013 group all have an entrepreneur focus. There is also a business person in town who wants to establish a fund to help entrepreneurs. As all these groups seem to be going in different directions, Executive Director Nolander asked for the board’s thoughts as they have directed staff to be involved in starting an entrepreneur group. Nolander sees the piece that’s missing is no one is in touch with entrepreneurs and he feels whoever leads this group may determine how we staff the agency. Chad Adams explained the Blandin group is in the gathering information stage and will report back and begin the next steps. He feels a partnership with ALEDA would be beneficial as the Blandin group is more of a think tank and not a core leader for it. A wide array of people have been interviewed as part of the Blandin group’s research, including Gerry Vogt, Ryan Heath, the Taco King owner, and Nolander (who had not yet been contacted) have been interviewed. Commissioner Kehr said Randy Kehr has been interviewed. SMIF, ALEDA, Riverland and Albert Lea High School could have a role, and Commissioner Rasmussen would like to see all entities pull together before hiring a staff person for ALEDA. One of the Freeborn Bank focus groups suggested using the former bank building for people starting up in need of retail space. Rochester has a private entrepreneur group doing office co-space. Northfield also does office co-space and it is a subsidiary of their economic development. The consensus was that ALEDA be a driver because it has resources, e.g., loan programs, SBDC and SCORE. The question was raised if ALEDA should provide funding or leadership or both. Commissioner Rasmussen asked if city has staff to share with ALEDA for a few months at least to see if it will work, then possibly share more. Commissioner Rasmussen feels ALEDA should be the leader, but the role needs to be defined.
Business Retention & Expansion Visits – Executive Director Nolander said he and Randy Kehr have planned retention visits for the first Monday of the month beginning in December. They’ve identified 37 businesses to meet with. The first three scheduled are: Agilis, Interstate Molding, and Steve Waldhoff with MCHS. They will use a questionnaire furnished by the MN Chamber.
- 5. EX-OFFICIO UPDATE
Freeborn County – Mike Lee, Freeborn County Representative
- The VA clinic was already discussed.
- No reply yet from Union Pacific on the county’s bid for the land along Hwy 13.
- The recycling fee has been lowered for small businesses from $50 to the resident fee of $30.
- The County has launched its new website. It’s much more informative and easier for staff to maintain.
City of Albert Lea – Chad Adams, City of Albert Lea Representative
- The Freeborn Bank building RFP went out to developers. The city’s website page has a link to the materials. To see the community response, the focus group summary is also on the website. December 6th is the deadline for a statement of interest. Dec 13th is a roundtable for developers and city to answer questions and tour the building. Formal submittal date is the end of January and selection will be made the end of February. Currently, there are two or three developers that are very interested and the City is hoping for more.
- IBM Smart City Challenge is an opportunity to apply for a grant from IBM to come into the community for three weeks and meet regarding projects the community wants accomplished and to give their ideas, etc. Chad is willing to submit the application. This could bring both financial and intellectual capital to the City.
- There is a City ordinance requiring an annual meeting with the City Council and the Port Authority Board. He suggested it be on a Saturday or Thursday evening.
- Three developers want to build market-rate rental housing, up to 48 units. There’s a large concensus saying there isn’t anything like this available in the community.
- On Tuesday’s council meeting agenda, there will be a second reading for the DCD. Chad thanked Ryan for his input. Final tweaking is being done to make it clear and consistent with the IDD language.
- The general debt service levy will be at 6.7% and the operating levy at 0%. Most commercial and industrial properties are going up. Along with ag properties, this will help alleviate residential property taxes. Executive Director Nolander shared that the ALBDC property taxes are going up $17K, and there isn’t that kind of margin in the operation.
Chamber of Commerce – Randy Kehr, business community representative
(In Randy’s absence, Commissioner Kehr gave his comments.)
- Randy is excited to get started on retention meetings.
- At the recent Chamber Annual meeting, the large business of the year went to Dave Syverson’s Auto Plaza; the medium award to the County Inn & Suites; and the small business award went to Fisher’s Fine Jewelry. Dr. Manny Steil spoke on the art of listening. Nolander commented that it was a great meeting.
- There is a mobile apps seminar to be held November 12, at the ALBDC. You can register online.
- A survey is coming out regarding childcare, especially for people working shift work and students that help out with their siblings. Select Foods has brought up the issue to Nolander regarding their workers.
6. COMMISSIONER ITEMS
Executive Director Nolander noted the first Wednesday in January is the 1st. It was decided to move the meeting to Thursday, January 2, 2014.
7. ADJOURNMENT
Commissioner Kehr made a motion to adjourn the meeting, seconded by Commissioner Brooks. The motion carried 6 in favor, 0 opposed. The meeting adjourned at 8:35a.m.
Filed and attested November 6, 2013.