October 2, 2013 Albert Lea Post Authority Minutes
October 2, 2013
ALBERT LEA PORT AUTHORITY
MINUTES
October 2, 2013
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 2, 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, Al Brooks and Jerry Ehn
COMMISSIONERS ABSENT: None
EX-OFFICIO MEMBERS PRESENT: Chad Adams, City of Albert Lea representative; Randy Kehr, business community representative; Chris Shoff, Freeborn County representative
EX-OFFICIO MEMBERS ABSENT: None
STAFF MEMBERS PRESENT: Ryan Nolander, Executive Director; Dan Dorman, Project Manager; and Julie Dandrea, Board Secretary
STAFF MEMBERS ABSENT: None
GUESTS: Mike Murtaugh, Freeborn-Mower Cooperative Services
2. APPROVAL OF MINUTES FROM SEPTEMBER 4, 2013 MEETING
The minutes from the September 4, 2013 meeting were reviewed. Commissioner Rasmussen made a motion to approve the minutes as presented, seconded by Commissioner Fligge. President Skophammer asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.
3. RESOLUTION PA-13-21 AUTHORIZING PAYMENT OF CLAIMS
The claims were presented for review. It was noted that property taxes were paid this month. Commissioner Fligge made a motion to accept the claims as presented in the amount of $99,649.00, seconded by Commissioner Kehr. President Skophammer asked for any discussion and hearing none, the motion carried 7 in favor; 0 opposed.
4. EXECUTIVE DIRECTOR’S REPORT
Project Bluejay – This is the meat processing facility blind lead from the state looking for 30-35 acres discussed last month. Additional gas and electricity information was provided at their request and we haven’t heard anything else.
Familiarization Tour Recap – Five site selectors from all over the country were brought to MN to meet with participating EDA’s from around the state on September 11. Chad, Dan and Ryan attended the luncheon. The brochure created for the event showcased our business parks and copies were handed out to the board. The site selector agreed the excess sewer and water capability was a good asset to promote. Other suggestions were to get out in front of selectors more, join trade organizations and attend conferences specializing in food manufacturing or metal fabrication – our strong suits. He also said we could send out direct mailing postcards relating our history in food manufacturing.
The next day the site selectors were at the Positively MN quarterly meeting where they commented that MN has been absent from economic development for 30 years. They said we are too “MN nice” and don’t brag enough about our state as a great location for business. Chad agreed about marketing our sewer capacity more. Randy will put the brochure on the Chamber’s website and changes are being planned for the ALEDA website. Currently, MN has no budget for marketing, unlike other states who invest heavily on advertising promotion.
A news release from DEED was handed out showing MN ranks 8th on Forbes 2013 List of Best States for Business; however, in the full article MN ranks 34th in business costs.
ZRB expansion – A meeting was held last month with staff, Pam Sander, two area banks and SMIF to discuss gap funding options for ZRB’s expansion. They solicited other bids and decided against utilizing any gap financing now. If federal MIF funds were used, 100% of the repayments would have stayed local. However, state dollars are being pushed with only 20% of the repayments kept so ZRB decided to keep all the financing at one bank. They are adding on manufacturing space and are leasing the entire spec building for warehousing.
Job Creation Fund meeting – An overview of the new fund was handed out and reviewed by Executive Director Nolander, who had been invited to participate in a meeting in Rochester to discuss the program. The program replaces JOBZ and will provide benefits for expansions or new business. The program requires results before funding so businesses will have to fund their project upfront and get reimbursed. Dorman commented first on his appreciation of ALEDA joining GNMP last month. He said in the beginning, this program had a metro focus and GNMP persuaded the state to have requirements that work in Greater MN and the metro. Much discussion followed. The JCF has been very successful in other states and he believes it has the potential to be a good thing. The sales tax exemption of the JOBZ program was also preserved by the GNMP.
Enderes Tool update – In accordance with the lease, Overgaard must give notice by October 31st if he’s leaving at the end of the lease or it will continue month-to-month beginning February 1. Project Manager Dorman will contact Steve Overgaard to find out if he has spent the obligatory $50K on building upgrades which was a condition of the discounted lease. If not done by February 1, we must be prepared to do what is necessary if he defaults on the lease. Kennedy & Graven is looking into the legalities.
Manufactured housing lead – A company called looking for existing space in which to build manufactured housing. The broker for the Continental building happened to be in town the same day so Executive Director Nolander put him in touch with the company to show them the building.
5. EX-OFFICIO UPDATE
Freeborn County – Chris Shoff, Freeborn County Representative
· John Kluever did not get the Sherburne county position, but is happy to be staying here.
· The county rezoned part of Gordonsville to industrial for a business venture starting up. An issue with parking right-of-way was resolved by the township.
· No news on the VA clinic or the Union Pacific regarding the land purchase for a bike trail. Dorman called the CBOC vendors, who didn’t return his call. Curtis Smith of Skyline Plaza said a vendor was coming next week for a walk-through.
· Chris was fairly certain the funding for ALEDA will be included in the budget for 2014.
· Chris thanked Dan for his work and hopes to work with him in the future in his new job.
City of Albert Lea – Chad Adams, City of Albert Lea Representative
· The open house in the Freeborn Bank building had a good turnout. Seven focus groups were held to determine what they’d like to see on each level of the building along with anticipated parking needs. Results are being evaluated compiled by Chad. Information on what the community wants will be shared. A new RFP should be ready for distribution early November. A handful of developers are already waiting for it.
· St. Johns has received preliminary approvals zoning approvals. There are issues with the Watershed District on road access. Executive Director Nolander has been in contact with Scot Spates about USDA funding issues. Scot is trying to break down the cost of the town center to give the USDA, who wants to rein in some of the costs. Discussion followed on ways to help the project. Nursing homes are exempt from property taxes; however, the assisted and independent living part isn’t so a TIF is difficult to do. Chad suggested possible tax abatement.
· Chad recently attended the Blandin Foundation program and highly recommends it. The 24 members from Albert Lea came back with their chosen projects; one is to start a local entrepreneur group. They will gather information for three months and then meet with the Blandin group to report.
· The City approved a preliminary 0% operating levy and 6.7% debt service levy increase. It will be a big bonding year in 2014 for the City. The tax cap increased by $300K. The HRA levy has been bumped up to an approved $109K, but didn’t receive the maximum they requested.
· Schrom Construction wants to build six 6-six unit market housing complexes here and have narrowed it down to two sites, but is willing to look at other sites if these fall through. Second on the list is the Port Authority’s 11-acre outlot in ALEDA Park. Strom has built similar housing in Eagle Lake and other locations. Generally, all sites are located along main corridors. The city arena property is the other top pick. The City may want to market that site if this doesn’t work out.
· Mike Moore asked for the total tax capacity number. Chad reported the tax capacity is up $300K.
Chamber of Commerce – Randy Kehr, business community representative
· Their annual meeting is October 24. Dr. Manny Steil will be the speaker. Call the Chamber for tickets if you want to attend.
· Dr. Nuga from Riverland is joining Randy on his radio program today.
· The Chamber has also joined GMNP.
· The business mentoring program tied into Riverland or other higher education is in the early stages of development. The young apprenticeship program is growing.
· Randy received a call from Congressman Walz’s district director looking into local reaction to the government shutdown and the debt ceiling. Send Randy an email if you want to express your thoughts and he will forward it. Walz want to know what big business feels about these issues. He may be here for lunch in the next couple of week. If so, Randy will be in touch with Ryan.
6. COMMISSIONER ITEMS
Commissioner Rasmussen thanked Dan for his work with the organization and also personally appreciated his help. President Skophammer also said thanks on behalf of the entire board.
7. ADJOURNMENT
Commissioner Brooks made a motion to adjourn the meeting, seconded by Commissioner Moore. The motion carried 7 in favor, 0 opposed. The meeting adjourned at 8:40 a.m.
Filed and attested October 2, 2013.