September 2, 2009 Albert Lea Post Authority Minutes

September 2, 2009

ALBERT LEA PORT AUTHORITY 

MINUTES

Wednesday, September 2, 2009

7:30 a.m.

Albert Lea Business Development Center/Conference Room

 

1. The Regular Meeting of the Albert Lea Port Authority was called to order on Wednesday, Sept-ember 2, 2009 at 7:30 a.m. by President Ellen Kehr and notation of roll was made.

COMMISSIONERS PRESENT:  President, Ellen Kehr; Commissioners:  Al Brooks, Paul Field (excused from meeting at 9:50 a.m.), Keith Fligge, Mike Moore, Vern Rasmussen Jr. and Nancy Skophammer.

COMMISSIONERS ABSENT:  None.

EX-OFFICIO MEMBERS PRESENT:  Randy Kehr, Business Community representative.

EX-OFFICIO MEMBERS ABSENT:  Christopher Shoff, Freeborn County representative; Victoria Simonsen, City of Albert Lea representative.

STAFF MEMBERS PRESENT:  Dan Dorman, Executive Director; Ryan Nolander, Assistant Director; Nanciana Jensen, Board Secretary.

STAFF MEMBERS ABSENT:  None.

GUEST:  John Kluever, Freeborn County Administrator.

APPROVAL OF MINUTES OF THE AUGUST 5, 2009 REGULAR MEETING.

The minutes of the August 5, 2009 meeting were reviewed.  Commissioner Rasmussen made a motion to accept the minutes as presented, seconded by Commissioner Moore.  The motion carried with 7 in favor and 0 opposed.

RESOLUTION PA-09-20  –  AUTHORIZING PAYMENT OF CLAIMS.

The claims were presented for review and discussion followed.  Commissioner Fligge made a motion to approve Resolution PA-09-20 authorizing payment of claims in the amount of $43,826.14, seconded by Commissioner Field.  The motion carried with 7 in favor and 0 opposed.

SPEC BUILDING UPDATE.

Executive Director Dorman informed the Board that an issue of color combination has occurred on the new spec building.  The color combinations of the outside panels were placed incorrectly.  Executive Director Dorman got in touch with ZRT, and they found that the manufacturer made the error, not the contractor, AB Systems.  Discussion followed.  Director Dorman informed the Board that the construction company would be willing to dismantle the siding and re-order the outside panels, although this would cause a delay in the completion of the new spec building.  Director Dorman suggested to the Board that the color combination of the panels be left as they currently are placed, but to work with AB Systems to try to get some enhancements to compensate the Port Authority for the error.  Commissioner Field asked what the true cost for AB Systems would be to rectify the error.  Director Dorman will get clarification as to cost from ZRT and AB Systems.  The Board was in agreement that the construction of the new Spec Building should not be held up, and to leave the color combination on the building ‘as is’, but that we need to ask for enhancements from the construction company to compensate for the error made on their part.

B-2 ZONING PROPOSAL.

Executive Director Dorman opened up a discussion of B-2 zoning design standards in Albert Lea.  He gave a slide presentation of currently constructed buildings in Albert Lea, offering a visual concept of B-2 zoning conflicts, and noting those that do not meet the suggested design standards.  Director Dorman noted that people are supportive of design standards, but he felt that the standards should not be so restrictive as to discourage growth in Albert Lea.

Chamber of Commerce Director Randy Kehr had met with City Manager Victoria Simonsen and Planning Director Bob Graham to look at the four primary zoning corridors.  Director Kehr heard from the planning commission that design standards would be ‘light weight’, although the standards did not seem ‘light weight’, but rather strict standards, which could be subjective from project to project.  Board discussion took place regarding the strict restrictive standards, i.e. does it help us or hurt us in creating tax base?

Commissioner Moore felt that design standards are necessary in Albert Lea, but that the current standards only apply to new construction.  He felt they should also apply to remodels, and current buildings in Albert Lea needing attention.

Executive Director Dorman informed the Board that he will continue to work with City officials and the design standards committee.  Director Dorman suggested that this was a ‘community issue’, not a ‘business issue’, and that it is about tax base development.  Commissioner Rasmussen reminded the Board that the City Council must approve all planning commission plans.

Board members suggested that we need to be assertive as to what needs to be done, and that we need to be strong advocates for the business end of development.  Personalities should not interfere with the economic development progress of Albert Lea.

CARPENTER LEASE DISCUSSION.
      Executive Director Dorman reminded the Board that included in the Board packets were tentative lease offerings with the Carpenter Company for board review.  He also included the history of leasing with Carpenter, and highlighted events with Carpenter for the last several months.  Carpenter has leased the 60,000 square foot building (Spec Building #1, Northaire Park) from the Port Authority since 1984, and has not had a lease rental rate increase since 1998.  They wish to lease the building for three years at $1.65 per square foot triple net, but at that rate, Director Dorman said he felt we would be subsidizing the business.  Discussion of the Carpenter building parking lot renovation followed.  As the current lease with Carpenter contains a parking lot provision not found in other Port leases.  Director Dorman said that it would be necessary to publically bid the parking lot resurfacing.  He also suggested putting in concrete for the parking lot, but that bids would be requested for both asphalt and concrete.  Further discussion followed regarding the lease and parking lot renovation.

Executive Director Dorman’s recommendation to the Board was that the lease rate should be more equitable between all companies who lease our spec buildings, but that he was open to any Board suggestions on the situation.  It was the consensus of the Board that regardless of what is done, we need to solve the parking lot issue.  The Board felt that the expense of refurbishing the parking lot should be a part of the lease rate as noted in earlier leases, as the current lease rate with Carpenter is below market rates and that it needs to get to a place where it is more equitable with other lease rates.  The Board discussed leasing the building for $1.65 per square foot triple net for the first year, $1.85 the second year, and $1.95 the third year, which averages out over the three years to be $1.82 per square foot triple net.

Commissioner Moore made a motion to counter the last Carpenter lease proposal with a three year lease for the 60,000 sq. ft. building with $1.65 per square foot the first year triple net, $1.85 the second year, and $1.95 the third year, and to also go ahead with the bidding of the parking lot resurfacing.  Commissioner Skophammer seconded the motion and the motion carried with 7 in favor and 0 opposed.

ALBDC SIDEWALK REPLACEMENT.

Executive Director Dorman informed the Board that bids were received regarding the replacement of the sidewalk on the south side of the ALBDC building which would include tiling and landscaping.  Discussion followed.  The Board was in agreement that the sidewalk replacement needed to take place now before the winter weather sets in.

Further discussion followed regarding the issue of which entity would pay for this capital expense because it is a Port building.  Currently it would be a 60%/40% split between the Port Authority and Greater Jobs Inc.  Executive Director Dorman felt that the sidewalk replacement should be 100% Port Authority expense.  The Board agreed with Executive Director Dorman, and also suggested that the cost not exceed $25,000.

EX-OFFICIO UPDATES.

John Kluever – Freeborn County representative.

1. The Board had proposed 2010 levy and budget approval meetings on Tuesday morning.  The Commissioners had a productive August.  At this point, the Board is likely to approve a levy increase of 3.5% in December and set the proposed levy at 4.3%.  The budget was decreased by $919,000; the revenue projection is up to $734,000.
2. The Commissioners will be going into the ARMER System in communications which will allow emergency entities to be able to talk to each other.  The current cost is $3.8 million.
3. The Board had a meeting last Wednesday at the Albert Lea Lake Dam, with the east side of the dam the topic of discussion.  Representatives from the County, DNR, Watershed Board and Greg Jensen were in attendance, where discussion was held regarding the repair of the dam.

Vern Rasmussen – City of Albert Lea representative.

1. Many of the scheduled projects are coming to an end.
2. The Council may certify a .8% levy.
3. The Council is cutting about $1.2 million out of the budget.
4. The City has approximately $5.8 million in reserves.
5. Every department has made huge efforts to work within the budget guidelines.
6. Regarding Blue Zones – Insurance claims for health care for City employees has gone down 50% for the first 6 months of the year, which could be attributed to the Blue Zones Vitality health project.

Randy Kehr – Chamber of Commerce.

1. The Chamber received a letter from Dr. Pam Sander of Zumbro River Brand, Inc. thanking them for their help with the application for a award of a Pohlad Foundation/Grow Minnesota grant, which they ultimately received.
2. There has been a couple of tobacco free presentations for businesses.
3. On September 16^th at the Freeborn Mower building, a presentation will be given by the Commission of Agriculture.
4. The Senate bonding committee will be in town today to talk with the Watershed Board.
5. Good Morning American will be coming back next Monday (Labor Day) morning between 7 and 8 a.m. at Pioneer Park to televise a Vitality Breakfast Potluck.
6. Titon Equipment, the largest farm equipment dealership in North America will be bringing in New Holland, locating in the Albert Lea Tractor building, and offering a part source for area farmers and dealerships.

EXECUTIVE DIRECTOR’S REPORT.

1. The bids for expansion of the Bridon Cordage facility will go out this week.  Director Dorman informed the Board that our role in the process is as a conduit for financing, as Bridon may use the Port Authority to gain access to small issue revenue bonds available through the Federal government.  There will be no risk to the Port Authority.
2. Executive Director Dorman informed the Board on the updates to the Ring Building as the building needs to be brought back to its original condition.  At this time, only one restroom instead of two will be put back.
3. Director Dorman will begin working with President Kehr, Commissioner’s Moore and Field and Assistant Director Nolander on the budget for next year, with the hope of bringing a preliminary budget back to the October board meeting for review.
4. City sewer report – A public review will occur at a City Council pre-agenda meeting.  The report has had four revisions, and the City Council has not had an opportunity to review it as yet.

COMMISSIONER ITEMS.

            ** Chamber of Commerce, Director Randy Kehr and Freeborn County Administrator, John Kluever excused themselves from this portion of the meeting.

1. President Kehr distributed copies of the evaluations compiled on the performance of Executive Director, Dan Dorman this past year for Board review.  President Kehr then made a recommendation on behalf of the review committee, that the Board should defer the salary review until January 1, 2010.  This would enable him to be on the same salary schedule (January 1 – December 31) as the two other staff members, Assistant Director Nolander and Administrative Assistant Nancy Jensen.

Executive Director Dorman’s contract goes to 2010.  She informed the Board that the Port Authority needs to honor the 2% increase from    July to December 2009.   On January 1, 2010, the Board will use the evaluations to determine Director Dorman’s salary   increase.  She informed the Board that a vote is not needed at this time as it is a recommendation. The Board was in consensus of the recommendation.

• Commissioner Fligge asked if anyone knew of the KFC timetable.  Discussion followed.
• Commissioner Fligge asked if anyone attended the Venture Capital meeting with SMIF.  Executive Director Dorman informed him that we did not receive notice of the meeting.
• Commissioner Fligge opened up for discussion the Bike Trail meeting.  To complete the bike trail from Hayward to the State Park, the funding appropriated to the project needs be committed by the end of 2010 or the funds will be lost.  At this time, there seems to be some complications with the DNR.

ADJOURNMENT.

Commissioner Rasmussen made a motion to adjourn the meeting at 10:00 a.m., seconded by Commissioner Fligge.  The motion carried with 6 to approve and 0 opposed.  .

Filed and attested September 2, 2009.

____________________________________      ___________________________________
Ellen Kehr, President                              Nanciana Jensen, Board Secretary