October 3, 2012 Albert Lea Post Authority Minutes
October 3, 2012
ALBERT LEA PORT AUTHORITY
MINUTES
October 3, 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, October 3, 2012 at 7:30 a.m. by President Vern Rasmussen. Roll was noted by the Board Secretary.
COMMISSIONERS PRESENT: Vern Rasmussen, Jr, Jerry Ehn, Ellen Kehr, Mike Moore, Keith Fligge, Nancy Skophammer, and Al Brooks
COMMISSIONERS ABSENT: None
EX-OFFICIO MEMBERS PRESENT: Chad Adams, city of Albert Lea representative; Randy Kehr, business community representative; John Kluever, Freeborn County Representative
EX-OFFICIO MEMBERS ABSENT: None
STAFF MEMBERS PRESENT: Dan Dorman, Executive Director; Ryan Nolander, Assistant Director; and Julie Dandrea, Administrative Assistant
STAFF MEMBERS ABSENT: None
GUESTS: Greg Steil, Steve Overgaard, Rebecca Gisel- Alliant Energy, Mike Murtaugh- Freeborn-Mower Cooperative
2. APPROVAL OF MINUTES FROM SEPTEMBER 5, 2012 MEETING
The minutes from the September 5, 2012 meeting were reviewed. Commissioner Fligge made a motion to approve the minutes as presented, seconded by Commissioner Brooks. President Rasmussen asked for any discussion and hearing none, the motion carried 5 in favor; 0 opposed.
3. RESOLUTION PA-12-16 AUTHORIZING PAYMENT OF CLAIMS
The claims were presented for review. Commissioner Kehr made a motion to accept the claims as presented in the amount of $73,658.77, seconded by Commissioner Moore. President Rasmussen asked for any discussion and hearing none, the motion carried 5 in favor; 0 opposed. (Commissioner Skophammer arrived.)
4. RESOLUTION PA-12-17 TRANSFER OF FUNDS FROM REAL ESTATE TO GENERAL
Executive Director Dorman explained that from time to time, funds need to be transferred from the real estate fund to the general fund to enable the Port to pay expenses as most of the Port’s income goes into the real estate fund. Commissioner Brooks made a motion to move $100,000 from the Port’s Real Estate Fund to the General Fund. The motion was seconded by Commissioner Fligge and was approved 6 in favor; 0 opposed.
5. EXECUTIVE DIRECTOR’S REPORT
Enderes Tool Update – The deed was recorded into the Port Authority’s name yesterday. We are still trying to reach an understanding with American Bank in St. Paul on a storage agreement for their equipment in our building. There is still title work to be cleaned up. Different potential buyers of the equipment are saying they have agreements to buy the assets from American Bank. The building needs a new roof and maintenance has been severely neglected. Vasco owner, Steve Overgaard, attended the meeting and addressed the board. He said he’s been in close contact with American Bank and gave an overview of his discussions with them. He is confident the bank will sell him the assets. He would like to hire back the employees and keep the business running locally. One of the things he would be buying is the Enderes Tool name. Commissioner Skophammer explained about banking regulatory structure hand tying banks during negotiations like this.
Gametec Bldg – The building appraised at $720K with the assumption the roof was replaced. The rest of the building is in good shape. The commercial market is currently depressed. The building is 33,125 square feet including the addition.
Bridge Avenue – Discussions are ongoing. Decisions must be made on who pays for what and where the funds come from. Thoughtful decisions must be made for the community in general and not made under pressure. Kwik-Trip had plans to build here regardless and had submitted their plan with the frontage road in place.
Freeborn Bank Bldg Update – Meetings continue with the Phoenix Development Corporation on plans to develop housing options. Hopefully, a Memo of Understanding will be signed shortly. There have been no new market rate apartments since the early 1980’s. Coincidently, that is also the last time a curb cut on Bridge Avenue was done.
Flax Seed Visit – This group is looking at the ALEDA spec building and liked the building and location. They would require the entire building and want to own, not lease. They also visited several sites in Iowa and Nebraska.
Board Terms expiring 12/31/12: Vern Rasmussen, Jr. & Nancy Skophammer – The Mayor makes his recommendations to the city council for their approval. President Rasmussen’s spot will be contingent upon winning the mayoral election. Commissioner Skophammer has been filling out a former board member’s term and can be re-appointed for another six-year term.
6. EX-OFFICIO UPDATE
Freeborn County – John Kluever, Freeborn County Representative
The Bridge Avenue update was covered earlier. Kluever and County Commissioners Lee and Belshan recently met with Kwik-Trip, who will be submitting a plan to the city for their site very soon. The county has also met with Hy-Vee regarding the cost of signalization. Kwik-Trip will attend the county’s November meeting. The county recognizes the need to share in costs for this project, but hasn’t talked to the city about this. They will use the budgeting process in late fall to see where their cost participation will be. Some commissioners suggested adding an economic development line in the budget. President Rasmussen expressed concern if Kwik-Trip will come with their plan before a developer’s agreement is signed.
The Magnuson Hotel came before the county board to request that penalties and interest be waived for back taxes. Dennis Distad is working up a payment plan. (Commissioner Ehn arrived.)
City of Albert Lea – Chad Adams, City of Albert Lea Representative
There will be a joint city/county meeting on Bridge Avenue and the Stables sewer project on October 25. The Freeborn Bank update was covered previously. Benchmarks will be put into the agreement with the developers requiring that if certain expectations are not met the city can pull back on the deal. A pro forma analysis will be done to demonstrate if there will be a need to put more money into the project. A 4.5% preliminary tax levy was approved by the city council. This reflects the fire services restored to a five-man crew. A five-man crew is good from an economic development standpoint as other similar-sized communities don’t have it. The city continues to work on the water and sewer rate analysis. Water rates may have to increase as the fund is down. They are waiting to hear from the feds on the city’s sewer rate incentive. The city council decided to move forward with finalizing the streetscape design over the next month. The project would be bid out in the winter and awarded in the spring.
Chamber of Commerce – Randy Kehr, business community representative
This Saturday the candidate forum for the state races will start at 8:00 am at Freeborn Mower Cooperative Services. At 7:00 p.m. on October 10th there will be a school board forum in the city council chambers broadcasted on the government channel and possibly the radio. Another forum will be held October 11th for the mayoral race, county race, and opposing views given on the charter amendment for mayoral term. October 25th is the Chamber of Commerce’s annual meeting to be held at Wedgewood Cove.
7. COMMISSIONER ITEMS – none
8. ADJOURNMENT
Commissioner Kehr made a motion to adjourn the meeting, seconded by Commissioner Brooks. The motion carried 7 in favor, 0 opposed. The meeting adjourned at 8:20 a.m.
Filed and attested October 3, 2012.