November 7, 2012 Albert Lea Post Authority Minutes
November 7, 2012
ALBERT LEA PORT AUTHORITY
MINUTES
November 7, 2012
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 7, 2012 at 7:30 a.m. by President Vern Rasmussen, Jr. Roll was noted by the Board Secretary.
COMMISSIONERS PRESENT: Vern Rasmusen, Jr., Jerry Ehn, Mike Moore, Keith Fligge, Nancy Skophammer, and Al Brooks
COMMISSIONERS ABSENT: Ellen Kehr
EX-OFFICIO MEMBERS PRESENT: Chad Adams, city of Albert representative; Randy Kehr, business community representative; and Mike Lee, 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: Greg Steil, Chuck Paczkowski and Mike Murtaugh, Freeborn-Mower Cooperative
2. APPROVAL OF MINUTES FROM OCTOBER 3, 2012 MEETING
The minutes from the October 3, 2012 meeting were reviewed. Commissioner Ehn made a motion to approve the minutes as presented, seconded by Commissioner Fligge. President Rasmussen asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.
3. RESOLUTION PA-12-18 AUTHORIZING PAYMENT OF CLAIMS
The claims were presented for review. Commissioner Brooks made a motion to accept the claims as presented in the amount of $8,476.78, seconded by Commissioner Skophammer. President Rasmussen asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.
4. PUBLIC HEARING RE: PROPOSED SALE OF SOUTH-BLDG #2
Executive Director Dorman gave some background on South Building #2 (Gametec building.) It’s been vacant for 14 months. Interstate Reserve wishes to expand their business. The roof is in bad shape and other items need repair. They’ve offered $500,000 because of these issues. The building appraised at $525,000 assuming it was re-roofed. Executive Director Dorman recommended the Board accept the sale on contract for deed for 15 years at 5%. President Rasmussen opened the public meeting by asking if anyone wanted to speak regarding the sale. Chuck Paczkowski asked to hear the interest rate again and the loan terms were repeated. Dorman explained that a contract for deed is safer for the Port should the buyer ever go into default because the property can be recovered easily, plus the contract for deed will return a constant stream of income to the Port Authority. President Rasmussen asked for a second and third time if anyone wanted to speak before he closed the public meeting.
5. RESOLUTION PA-12-19 APPROVE SALE OF SOUTH-BLDG #2
Commissioner Fligge moved to go forward with sale with the contract and terms as presented. Commissioner Moore seconded the motion. Commissioner Ehn asked if the items needing repair would cover the $25,000 difference from appraised and sale price. Executive Director Dorman said the buyer would do most of the repairs right away. With a roll call vote the following commissioners voted in favor of said resolution: Commissioners Brooks, Ehn, Skophammer, Fligge, Moore and President Rasmussen, Jr. President Rasmussen, Jr. declared the resolution passed.
6. EXECUTIVE DIRECTOR’S REPORT
Enderes Tool Update – A lease has been signed after a long negotiation. Steve Overgaard will manufacture there under the name, Northbridge Tool, LLC. The building needs roof repairs exceeding $300,000, plus doors need replacing and other repairs. Mr. Overgaard offered to pay a reduced rate and put money into building repairs. The lease term is $20,000 per year up to 16 months and stipulates $50,000 in repairs must be done to the building. Since this is still a public building, state statute requires he get two bids at this level. After the 16 months, the lease will go month- to-month unless notice is given by either party. The lease is all net with no expenses paid by the Port. Much discussion followed regarding future options for this property. Executive Director Dorman advised the board not sell either lot without the other since the two parcels combined equal 7 acres and the tax base is worth more. Freeborn County Cooperative may be interested in leasing the back lot. The Board recommended contacting them regarding their interest and future plans. The consensus was to lease the other parcel, if possible, and wait until the Overgaard lease is up before considering a sale. After sending an arbitrary amount, American Bank still owes storage fees from mid-July, but payable to the county they believe and not the Port because the property wasn’t transferred yet. The county said they would assign any fees recovered to the Port. We offered to settle for another $3,000 or we could take them to small claims court.
Bridge Avenue Update – The outcome for a stoplight for Kwik-Trip is still unknown. Current traffic doesn’t warrant the state or feds to pay for it. It comes down to what the community wants to spend on a convenience store and where the dollars will come from, plus down the road more changes might be required. It would be beneficial for the county and city to work together on this issue. Hy-Vee’s building timetable is unknown, but they’ve closed on their lot. They are willing to give up a curb cut. Aligning Plaza-to-Plaza would improve public safety and cost less than bringing Plaza to Sykes.
Freeborn Bank Bldg. Update – Meetings continue with the Phoenix Development Group. The focus is on market rate rather than subsized housing. The last time market rate apartments were built was 1982. The pro forma analysis should be ready in a few works to see what developer needs.
Flax Seed Update/Pet Food Plant – The flax seed facility burned down in Canada and they looked both here and in Iowa saying they didn’t have time to build. They liked the ALEDA spec building, but now have decided to build in South Dakota to bring them closer to their supply chain. The pet food plant is locating in Nebraska and told us we were too far from their supply chain. In these instances all we can do is be responsive and try to match their individual needs.
Pro Advantage Project – The new name encompasses Pro Trucking and Pro Manufacturing. They were negotiating to buy land in the Glenville corridor, but have decided to acquire 9-plus acres from Freeborn Mower Cooperative (the former drive-in theater location) and move their trucking business there. This location will make their expansion plan easier. A TIF was considered, however, it wouldn’t generate too many dollars.
Vision Lease – They were leasing the middle section of the Ring Can building, but have since moved back to Owatonna. Ring Can may need more space and is considering leasing this section again.
Tough Mudder Bid – The Port is working with the CVB, who is taking the lead, and the city on this potential project. It’s a sporting competition using a 10 mile obstacle course. It could bring up to 12,000 people over a weekend in July. They need approximately 400 acres and would restore the property when finished. There are two sites that would work: Ulland Brothers land along the Shellrock River or the Plaza area, including the old landfill. They liked this area, but are hesitant about working with public land owners. There are no state restrictions using landfills other than no digging. Staff will continue to work with them.
VA Clinic – It’s finally been approved to move forward with a clinic in southern MN. Hopefully, it’s put in a location to serve the most veterans. If so, Albert Lea would have a good chance to get the clinic here.
7. EX-OFFICIO UPDATE
Freeborn County – Mike Lee, Freeborn County Representative
The county has approved the joint application for Bridge Avenue with the City. Dennis Distad is retiring in December as Freeborn County’s Auditor-Treasurer. The final levy will be set on December 11. A truth in taxation meeting will be held in December. The Watershed District is moving across from the old Snyder Drug Store.
City of Albert Lea – Chad Adams, City of Albert Lea Representative
The county approved making a joint application with the city to MnDot for federal funds for a surface facelift on Bridge from Hammer Road to I-90. This would not include turn lanes or changing right-of-ways. The application must be in by 2013 to receive funds in 2017. The city met with a financial advisor regarding the Stables area and St. John’s project to bring water and sewer to that area. A report should be ready in three weeks. The city would partner with the county and the watershed on options. The Streetscape Project is in the final design stage. On November 19, the public will have one last time to look at the detail. The final specs will be approved over winter and construction will start in the spring.
The downtown façade program has been popular with the city and is now running short on funds. The water and sewer rate analysis is on the work session for tomorrow night. A consultant has put together a five-year analysis. In December, the council will look at an action plan for the next five years and all will be integrated into a financial management plan for the next five years to stabilize the future. There hasn’t been a good reserve in the water fund for a long time and rates will have to rise somewhat. More discussions will take place with the city council. If a sewer EPA rebate program is put in place it would be a great economic development tool.
Bob Graham is retiring December 7. The city will use a planning firm to help with land use applications as needed. The Port Authority and ALEDA are doing a lot toward economic development and the city will continue to partner with them. City Manager Adams plans to get more involved also. Another position may be developed to fill in the gaps. President Rasmussen added the city will continue to streamline and look for ways to run more efficiently.
The City has done the Port Authority accounting for long time, but is making software changes to their system. They may need additional software and training to continue doing the Port accounting so the city has asked the Port to get bids from other firms. This might make more sense for both the Port and the city.
Chamber of Commerce – Randy Kehr, business community representative
In conjunction with the façade project, downtown businesses can apply for up to $2,400 to make improvements to their rear entrances as the front will be inaccessible when the streetscape project is being done. On November 13, from 8-11:30 a.m., the Chamber is partnering with others to bring the program “The Power of Words.” At the Chamber annual meeting Innovance and Alliance Benefit Group each got the large business award, Geneva Bar & Restaurant got the medium award, and the small business award went to Fleet Farm.
8. COMMISSIONER ITEMS – none
9. ADJOURNMENT
Commissioner Brooks made a motion to adjourn the meeting, seconded by Commissioner Fligge. The motion carried 6 in favor, 0 opposed. The meeting adjourned at 8:45 a.m.
Filed and attested November 7, 2012.