October 7, 2015 Albert Lea Post Authority Minutes

By Tyler Golberg | October 7, 2015

October 7, 2015

ALBERT LEA PORT AUTHORITY

MINUTES

October 7, 2015 – 7:30 a.m.

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 7, 2015 at 7:30 a.m. by President Kehr. Roll was noted by the Board Secretary.
  • COMMISSIONERS PRESENT: Vern Rasmussen, Jr., Mike Moore, Ellen Kehr, Al Brooks, Nate Jansen, and Ginny Larson
  • COMMISSIONERS ABSENT: Mark Heinemann
  • 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: Mike Murtaugh and Bryan Skogheim with Freeborn Mower Cooperative Services

2. APPROVAL OF MINUTES FROM SEPTEMBER 2, 2015 MEETING

  • The minutes from the September 2, 2015 meeting were reviewed. Commissioner Rasmussen made a motion to approve the minutes as presented, seconded by Commissioner Jansen. President Kehr asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

3. RESOLUTION PA-15-20 AUTHORIZING PAYMENT OF CLAIMS

  • The claims were presented for review. Noted were the second half property taxes, membership to the Greater MN Partnership, and dock repair work which Ventura has reimbursed on the Ring building. Commissioner Jansen made a motion to accept the claims as presented in the amount of $104,221.95, seconded by Commissioner Moore. President Kehr asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

4. RESOLUTION PA-15-21 APPROVE TIF-9-1 AGREEMENT

  • Executive Director Nolander reviewed the background on the TIF for the ALEDA spec building. The agreement between the city of Albert Lea and the Port Authority was emailed to the members prior to the meeting for review. In April of 2009, a public hearing was held at the city council meeting and a resolution was passed approving tax increment financing to help pay for development costs on the spec building for the economic betterment of the community. Going through paperwork, it was realized that the agreement was never finalized between the former city manager and former Port executive director. The project max is approximate $370K through 2019 and the Port has received $42K so far. After the Port Authority board approves the agreement, it will go to the city council to approve at their October 12th meeting. Commissioner Moore moved to introduce Resolution PA-15-21 for approval of Albert Lea TIF 9-1 as presented. Commissioner Brooks seconded it and the motion passed 6 in favor; 0 opposed.

5. EXECUTIVE DIRECTOR’S REPORT

Project Blazingwire update – This is the data center project. Getting status updates from the site selector have been futile. The data center was discussed in recent Oronoco city planning and city council minutes with representatives from the business in attendance. Once the official word is out that Oronoco was chosen, we will try to find out what their package was and why we didn’t get the project. One of the site selector’s early concerns was workforce and Oronoco would be able to draw from IBM in Rochester.

Enderes demolition update – The building is down with some small areas left to clean up. Soil clean-up will not be too costly and the project will come in under budget. A local business is going up their corporate ladder for interest in purchasing the site.

Northaire regional retention pond update – It will take another 30 days for rail approvals per the city engineer. The project can move forward with funds from the watershed district and not have to use BDPI funds.

MN Marketing Quarterly Meeting & Site Selector Wrap-up – A state group organizes the annual Familiarization tour that was held on 9/16/15. Our area didn’t have anyone this year due to miscommunication between the organizer and the site selector they chose. Executive Director Nolander participated in the wrap-up session anyway. The EDA’s along the I-35 southern corridor mutually agreed to independently bring in site selectors from Minneapolis to visit the area.

SE MN EDA Professional’s meeting – This ties into the aforementioned EDA’s that are also members of this group. Membership covers SE MN from south of the metro over to WI. Meetings are every two months with a recent one on 9/11/15 to set legislative priorities for the upcoming year. One of the items discussed was the prevailing wage rules and how it is calculated. The group consensus was the state needs to be consistent when prevailing wage rules apply and also be fair to Greater MN businesses. Mrs. Gerry’s won an award from the MN Job Creation Fund, but turned it down when they calculated paying prevailing wages would add to the project almost as much money as the award. The problem isn’t about paying union scale, but the wages must be based on the local area and not metro wages which are currently part of the calculations.

DEED Programs Informational Session – Chad Adams and Executive Director Nolander attended a workforce housing program in Austin on 10/1/15, and the prevailing wage issue was also discussed. In Thief River, prevailing wage added over $1M to a recent project. Another state program, the Job Training Incentive Program, is allowing companies to get up to $100K for in-house training. ZRB employees attended the session and using the information presented, they calculated that they would have to pay a new untrained employee considerably higher than someone already trained. The Job Training Incentive Program is another program that will go unused because of the way the wage requirement is calculated. Executive Director Nolander contacted Dan Dorman with GNMP and he was unaware of the issue and will look into it. Most of DEED’s programs do not fit for Greater MN due to rules and requirements made by metro centric lawmakers and staff members.

Rewriting the Rural Narrative presentation – On 9/17/15, Randy Kehr, Noel Austin, Susie Petersen, Steve Bowron, and Executive Director Nolander attended “Rewriting the Rural Narrative” in Owatonna presented by Ben Winchester from the U of MN Extension Center for Community Vitality. He shared data showing positive trends for the future of rural communities. The top three reasons people move or return to small towns are: Slower pace, safer and low crime, and low cost of housing. Employment was not even in top 10 for reasons. He said quit worrying about the 17-25 age group and focus on the migration of 30-49 year olds. The biggest things for rural communities to work on is how do you think of your community and overcoming the negativity. He believes more senior housing is needed which will then free up more housing for workforce.

Education Foundation public forum – This was held on 9/10/15, and Nate Jansen was on the panel along with Sid Verdoorn, John Morrison and others. Executive Director Nolander was able to attend some of it and said it was a great group, but there were only 22 people in the audience. John Morrison will fund a person to be the liaison to work between business, industry, and education on creating internships and mentorships. Nolander will be meeting with Mannie Steil and others today on the next steps. The goal is more internships and mentoring in our high school to expose students to the opportunities that are available locally and to give them experience in the work world prior to graduation.

SE MN Together gathering – This event focuses on our workforce shortage and the first session will be in Albert Lea on 10/29/15. Registration is at 32 and targeting 100. Executive Director Nolander is writing a column about it for the newspaper and will talk about it on the radio today. Round table discussions will take place, not just a speaker. Please promote it within your workplaces.

6. EX-OFFICIO UPDATE

Freeborn County – Mike Lee, Freeborn County Representative

  • On September 15th the county set a 5% levy increase. The increase will help pay for the dispatch picked up from the city and two additional transportation deputies.
  • Mick Delger was appointed to the watershed board for the remainder of the year and position will be up for re-election next year.
  • Two workshops are planned in November to finalize the 2016 budget.
  • The commissioners are looking forward to another city/county meeting yet this year.

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

  • The tax levy increase proposed is 6.3% to be used for debt service and the general levy is not increasing. Water rates could be looking at an 8% increase with no increase in sewer rates. Without an increase, the city would have to stop doing projects.
  • The city now owns three properties on the 300 block downtown. One building was free, one cost $1.00, and the other is the recent law office purchase. There will have to be a partnership to develop this property. The city council is divided on purchasing properties and there’s concern it may have to return to the private sector if not supported. Executive Director Nolander advised against selling back to the private sector as history has proven that improvements don’t transpire, taxes stopped being paid, and vandalism occurs. The city is not going to build a new city hall in that location.
  • On October 29th, the city will submit a pitch for $50M to move Front Street to enable lakeshore development and infrastructure work north of it. No development would begin until private development is started. The pitch was split into two projects to at least get some of the funds. The second development piece could include a hotel, convention center, retail, waterpark, and a marina/restaurant. An RFQ would be sent to entities that do these types of developments.
  • Another bonding project is the Stables water and sewer installation. The city is looking for 50% of the funding from the private landowners, plus city and county help.
  • Market rate housing will have at least one building open with the other two opening on December 1st. The developer may shift to a one level condos for the next phase.
  • On October 22nd, the city will learn if there will be funding for the Freeborn Bank Building project.
  • The city is starting a weekly newsletter email. The community newsletter will continue to be mailed out monthly. A door-to-door campaign has started in ward 5 to ask residents about their concerns.
  • Congressman Waltz’ chief-of-staff was here recently about a new plan to give seed money for workforce development using a pilot city to start the project.
  • MPCA is getting closer to a ruling on waste water treatment plants being forced to reduce phosphates. Cities would need a significant cost share for unfunded mandates.
  • Reviewing the sales tax for the watershed and the future of it.
  • DRT is reviewing plans for a strip mall north of Walmart.
  • President Kehr shared what John Ford from the HRA said that there is 7% of affordable housing locally and only 3-4% is needed. Ford believes market rate housing is needed more.

Chamber of Commerce – Randy Kehr, business community representative.

  • The partner of the person who spoke at last year’s annual meeting is coming to talk more about internet security and communications. He is with Certified Data Recovery Service.
  • The chamber is working on new website. Randy has incorporated Blue Zones by Healthways into his signature line.
  • Three Oak Winery won a governor’s cup award. This Saturday, they will launch six new white wines at an event at the winery. The wine is also for sale locally.

7. COMMISSIONER/OTHER ITEMS

  • Mike Murtaugh introduced Brian Skopheim. Brian is the key accounts representative and making contacts with FMCS new members. FMCS has entered into a program with MN Energy resources to do energy audits and will split the cost with the residents. MERC been doing this in other communities.

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 9:05 a.m.

 

Filed and attested October 7, 2015.

 

 

 

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