October 1, 2014 Albert Lea Post Authority Minutes

By Tyler Golberg | October 1, 2014

October 1, 2014

ALBERT LEA PORT AUTHORITY

MINUTES

October 1, 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, October 1, 2014 at 7:30 a.m. by Vice President Rasmussen.  Roll was noted by the Board Secretary.
  • COMMISSIONERS PRESENT:  Vern Rasmussen, Jr., Mike Moore, Ellen Kehr, Al Brooks, Nate Jansen, and Mark Heinemann
  • COMMISSIONERS ABSENT:  Keith Fligge
  • 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:  Tim Penny-SMIF; Rebecca Gisel-Alliant Energy; Jim Krueger and Mike Murtaugh-Freeborn Mower Cooperative Services

2.     APPROVAL OF MINUTES FROM SEPTEMBER 3, 2014 MEETING

  • The minutes from the September 3, 2014 meeting were reviewed.  Commissioner Jansen made a motion to approve the minutes as presented, seconded by Commissioner Heinemann.  Vice President Rasmussen asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

3.     RESOLUTION PA-14-18 AUTHORIZING PAYMENT OF CLAIMS

  • The claims were presented for review.  The property taxes and insurance were noted.  Commissioner Moore made a motion to accept the claims as presented in the amount of $106,010.69, seconded by Commissioner Brooks.  Vice President Rasmussen asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

4.     SMIF PRESENTATION – Tim Penny

  • Last year’s annual report from SMIF was handed out.  Their annual luncheon is tomorrow in Owatonna.  Their focus is on three areas: Managing community funds (predominately, smaller communities), early childhood, and entrepreneur investments.  SMIF has invested $300K in Freeborn County and has expended funds across a 20-county region.  SMIF also makes start-up and other gap loans and gives some grants for economic development projects.  The recent Impact article about the Schipp’s Power Wash expansion was passed around.  Executive Director Nolander brought SMIF together with John Schipper and his banker to help with additional gap financing for his project.  Tim Penny noted SMIF has given $44K in books to a variety of organizations for early reading programs and has a partnership with every Kiwanis Club in Albert Lea.  He thanked the board for their past support.  Board members made positive comments about SMIF’s programs and continued the discussion about the importance of early childhood education.  Penny said 35-40% of resources go toward this focus.  Additionally, he said they have made marked progress in readiness to learn beginning in kindergarten.  Executive Director Nolander noted that Diane Lewis from SMIF will present their loan programs at the ALEDA lenders’ meeting next week.  ALEDA also has a grant request to SMIF for an entrepreneur program that will be reviewed here next week.

5.     EXECUTIVE DIRECTOR’S REPORT

  • ALEDA Outlot A update – The is the market rate housing project.  A purchase agreement has been in place with Schrom Construction; however, we learned they have been looking at other potential sites.  Staff has tried to communicate unsuccessfully with them numerous times so we’re assuming it’s off the table.  We don’t see an issue with leaving the lot rezoned as Planned Development.
  • St. John’s update – Chad Adams responded to this update.  The original bids were high so it was rebid.  They are looking at ways to cut costs and now it’s down to an amount the USDA is comfortable with.  A signed agreement with a contractor is thought to be in place.  St. John’s is reviewing the developer’s agreement with the City.  Their timeline for finalizing the developer’s agreement and TIF agreement is unknown.  The recent housing study did show a need for senior housing.  The City is trying to update the infrastructure for the project to possibly help the Stables area in the future.  Commissioner Lee added the county commissioners are split on the county’s responsibility towards the Stables issue.  The City continues to have challenging discussions in regards to the TIF negotiation.
  • Mrs. Gerry’s update – They turned down the Job Creation Fund award because of the prevailing wage requirement and are still working with City on a TIF.  A bigger issue now is the retention pond.  The City is looking into a regional pond and will receive an appraisal on nearby land today.  Chad Adams and Ryan Nolander are meeting with Select Foods and MCB representatives after the board meeting for input from their companies about the regional pond.  Jim Krueger from Freeborn Mower Cooperative Services said they are working on a USDA loan guarantee for Mrs. Gerry’s.  Mrs. Gerry’s is asking for substantial upgrades from FMCS for their project.  FMCS is looking at creative options to provide value to them without creating further strain on their balance sheet.  Assistant Director Nolander reiterated that FMCS is our local utility provider who continues their efforts to assist local companies.
  • Downtown projects – There is a lot of activity lately.  Staff met last week with local officials and a company who is interested in the former Sterling Drug and Let Electronics buildings.  Someone is buying the Tax Refund building next year and there are rumors on other buildings downtown.
  • Education Foundation Forum – After his participation on the panel, Nolander said the bottom line is we need to work on marrying the High School, Riverland, and local business together to provide opportunities for students as an alternative to four-year college.  Statistics were released showing half of our local students don’t return to college after year one.  The forum consensus was the need to work on parents’ beliefs that their kids must attend a four-year college.  Commissioner Kehr said next week Riverland will begin strategic planning after having waited for a new President.  Their primary focus will move beyond scholarships to begin getting community partnerships for new equipment and supporting youth for local jobs.
  • It’s Beautiful Here! Marketing campaign – This idea started a couple of months ago.  Al Arends approaching officials saying the locals are not marketing our community enough.  Gerry Vogt and Henry Savelkoul are also behind it.  They showed a power point presentation to Randy Kehr, Susie Petersen, and Executive Director Nolander.  Nolander suggested the focus first be on fixing the negativity within the City and the need to go back to the model of Greater Jobs’ early development when it was a community marketing process.  Everyone in town should be a salesperson.  In order to market to our community first, it was agreed there is a need for local help so a meeting is planned with Marketing Plus and The Marketing Plant to brainstorm ideas.
  • Universal Building – Executive Director Nolander had an opportunity recently to walk through the building with Commissioner Brooks.  It’s a huge building and in good shape.  Staff has tried to get information from the broker.  They want to lease or sell to one tenant, but it’s large enough to be broken up into smaller sections.
  • Handout – An article on empty big box stores from the Minneapolis Star was handed out showing that even the metro area is having problems with large empty buildings.
  • Other items: The Attorney General found a $6 billion mistake in the Destination Mayo project.  To get a match based on their formula, Mayo would have to raise $12 billion.
  • SMIF Contribution – A motion is needed to approve the annual funding to SMIF.  Historically, it’s been a $5,000 contribution, split 60/40 between entities.  Commissioner Moore made motion to contribute the budgeted amount of $3,000 for 2015 from the Port Authority.  Commissioner Kehr seconded.  With no further discussion, it was approved 6 in favor, 0 opposed.

6.     EX-OFFICIO UPDATE

Freeborn County – Mike Lee, Freeborn County Representative

  • The commissioners passed a resolution extending AmTech Ingredients’ loan for another year to meet the employee numbers.
  • The proposed budget is $43.6M with a tax levy increase of 3.9%.  They are hoping to finalize it before December.  Basically, the levy increase is due to debt service for roads and healthcare costs.
  • They are still working on the final details for the bike trail on the abandoned rail property.
  • Replacement of the Shell Rock river dam has started.

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

  • The City completed its annual reporting on MIF loans.  SAR is not finding sustainable workforce.  By not having added the number of jobs required by the loan, they might need to extend or modify the loan agreement.
  • The Blandin committee submitted a $20K grant for ALEAP to SMIF, who is coming on Monday to review the request to determine if it makes the final cut.  If the committee gets SMIF’s support, they will then apply for a grant from Blandin.  The committee has seen a lot of interest in their entrepreneurial plans.  Randy Kehr added 50 students have signed up at the high school for their new entrepreneurial program.  Chad Adams noted the Blandin committee also wants to do a student contest.
  • The tax levy was set at 3%.  They were able to keep it down because the health insurance premiums did not increase.
  • The facilities master plan will be presented at the October 9th work session.  The Blazing Star Landing is part of the plan, including public and private development.  The council will look for public feedback in October or November.
  • The South Broadway overlay is scheduled for 2015.
  • The City’s organizational restructure was in the local newspaper.  The council had a work session last week and will have time to digest the proposed changes before a final vote at the end of October.  The formal recommendation and all the rationale behind it is on the City’s webpage.  It’s also been on TV, newspaper, and will be on KATE radio.  City staff has had mixed feedback.

Chamber of Commerce – Randy Kehr, business community representative

  • 31 businesses participated in window decorating for homecoming in the effort to bring back the tradition.
  • The Big Island Rendezvous is this weekend.
  • House Speaker Thiessen was here touring Granicrete recently and Executive Director Nolander had a chance to speak with him about the impact of the Job Creation Fund’s prevailing wage requirement on local projects.
  • The Chamber’s annual meeting is October 23rd.  The speaker was with the secret service electronic crimes forensic task force and will talk about data breaches.
  • Many political forums are coming up.  On October 14th, the sheriff race will be held at Riverland’s lecture hall since a larger turnout is expected.  KATE radio will broadcast live.  The City races will be at city hall on October 15th, beginning at 6:30 pm.  The Coalition of Greater MN cities is holding a forum for the 27A race.  Tim Engstrom will be moderating and no questions will be taken.  Audience questions will be taken on October 28th at another 27A forum at Riverland.

7.     COMMISSIONER/OTHER ITEMS

  • Vice President Rasmussen added to Chad Adams’ comment about the levy increase, stating that infrastructure cost is driving the increase.  Huge infrastructure needs will come within the next five years.  The City will try to maintain overlays as reconstruction costs are much higher.

8.     ADJOURNMENT

  • Commissioner Brooks made a motion to adjourn the meeting, seconded by Commissioner Moore.  The motion carried 6 in favor, 0 opposed.  The meeting adjourned at 8:40 a.m.

Filed and attested October 1, 2014.

Posted in Minutes