September 2, 2015 Albert Lea Post Authority Minutes

ALBERT LEA PORT AUTHORITY

MINUTES

September 2, 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, at 7:30 a.m. by President Kehr. Roll was noted by the Board Secretary.
• COMMISSIONERS PRESENT: Mike Moore, Ellen Kehr, Al Brooks, Nate Jansen, Mark Heinemann, and Ginny Larson (arrived 7:50 am)
• COMMISSIONERS ABSENT: Vern Rasmussen, Jr.
• 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: Ryan Nolander, Executive Director and Julie Dandrea, Board Secretary
• STAFF MEMBERS ABSENT: None
• GUESTS: Dan Dorman – Greater MN Partnership, Jerry Gabrielatos – Assistant City Manager; and Mike Murtaugh – Freeborn Mower Cooperative Services

2. END OF SESSION LEGISLATURE REPORT – Dan Dorman, GMNP

• A handout with highlights from the end of session report were reviewed including information on proposed workforce housing credits, the workforce program that passed, GMNP policy positions for 2016 and the membership list. Dan Dorman thanked ALEDA for its support and reported the organization’s membership continues to grow. Highlights for 2015 included funding for workforce housing. The GMNP board will soon be ranking their order of priority items to work on for the 2016 session. Workforce is still number one. Dorman asked the board for their input regarding higher priority items or additions to the list. Prevailing wage is one of most important items to our area Executive Director Nolander added. Dorman said he was unsure if it would be on the final list. State incentive programs aren’t being utilized because of how prevailing wage is calculated. No one is implying to eliminate union wages, just pay the appropriate wage for our area. Currently, the wage rates have a metro influence which are considerably higher. It was noted that workforce housing credits go right to developer and bypass the prevailing wage requirement.
• Dorman was asked if much would happen in 2016 since it will be an election year. He said there will be a tax bill to include transportation funding dollars, but not for local roads. Executive Director Nolander noted that the lack of a transportation bill is why Freeborn County had to implement the ½ cent sales tax to pay for road repairs. Chad Adams added that DEED is beefing up grants and funding for housing projects; however there is still a financing gap on these projects. Nolander added some local companies have joined the GMNP because of the MPCA issue that will affect them if passed. Dorman said the MPCA has been asked to prove their science regarding phosphate levels and feels that the changes cities would have to implement would have very little impact on water quality. The questions remains how do we get the best impact for the cost. (Dan Dorman left at this point.) Executive Director Nolander noted next month’s claims will reflect continuing support to the GMNP.
• Jerry Gabrielatos introduced himself as the new assistant city manager, discussed areas he will be working on and expressed his enthusiasm for locating to the community.

3. APPROVAL OF MINUTES FROM AUGUST 5, 2015 MEETING

• The minutes from the August 5, 2015 meeting were reviewed. Commissioner Heinemann made a motion to approve the minutes as presented, seconded by Commissioner Brooks. President Kehr asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

4. RESOLUTION PA-15-19 AUTHORIZING PAYMENT OF CLAIMS

• The claims were presented for review. Some items noted were dues to the MN marketing group, higher monthly accounting charges due to audit work, D&O insurance, Overhead Door which will be reimbursed by Ventura, the first payment to Dulas Excavating on the Enderes building demolition, ZRT engineering services for the demolition, along with environmental testing that had to be done on the soils. Commissioner Moore made a motion to accept the claims as presented in the amount of $38,623.03, seconded by Commissioner Jansen. President Kehr asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.

5. APPROVAL OF 2016 BUDGET

• Nothing changed on the general fund. Reroofing south building #1 will be capitalized using cash and not budgeted following our accountants’ advice. The amount budgeted for personnel services is conservative. Commissioner Jansen moved to approve the 2016 budget as presented with Commissioner Heinemann seconded it. Motion passed 6 in favor; 0 opposed. By state statute, the Port Authority must submit the annual budget to the city council because generally Port Authorities levy a tax; however, the Albert Lea Port Authority has never levied a tax and will not again this year. The Port Authority continues to be self-sustaining through investments and fiscal management.

6. EXECUTIVE DIRECTOR’S REPORT

Project Blazingwire – This project has been talked about for months and continues to be an enigma. They initially wanted to start construction on 8/1/15. At the end of August, the second site selector was out for a month on medical leave, but said Albert Lea is still being considered for the project. The site selector set up a call for last Friday, but didn’t follow through or respond to email. The potential incentives for this project have been structured with the county, city and schools.

Enderes demolition update – Photos of the demo were passed around. An analysis of soils in and around the holding tank were done and a large disposal cost is not expected. It looks as if it will come in under budget. Another business has shown interest in the property.

Northaire regional retention pond update – The BDPI application has not been turned in yet as the city is looking into using watershed mitigation funds to see if they can be used to help pay for the regional pond.

Familiarization tour – Annually, the state brings in site selectors to learn about the regions. The appointee for our region was from Minneapolis. Representatives from the I-35 corridor held a conference call and the site selector chosen didn’t commit to the time so our area will not be having a tour. A conference call with the new business development director at DEED is scheduled for tomorrow and Executive Director Nolander will voice his concern with this process.

SE MN Together – On 10/29/15 from 11 am – 4 pm, this regional group will be meeting in Albert Lea to explore the workforce issue. The agenda and session are still being fine-tuned. Buy-in is needed from local companies, administrators, educators, workers, etc. Executive Director Nolander asked Commissioner Jansen to help with getting input and involvement from Austin officials. There is a planning meeting next Wednesday morning here. When the flyer is finished, a save-the-date email will go out to Greater Jobs members, Chamber members, and posted on the city’s website. President Kehr invited each board member to nudge folks in their own spheres to attend.

More Positivity – Executive Director Nolander passed out a Facebook posting by a local entrepreneur that addresses the local negativity. She has been part of ALEAP gatherings and is opening a business downtown. We need to keep pushing the positive and try to get the Tribune to print more positive articles. Nolander will talk about it during his radio spot. The city plans to do e-newsletter and more social media.

7. EX-OFFICIO UPDATE

Freeborn County – John Kluever, Freeborn County Representative (Mike Lee was unable to attend.)

• The commissioners are continuing to work through the 2016 budget. The ½ cent sales tax has been approved. Highway levy has went up considerably. DHS is overcrowded and corridor replacements are eating up reserves. Commissioners are looking at a 2% levy increase, mostly going to general fund for operations.
• There are nine names to consider on the 15th for the watershed appointments. The term is less than one year and would need to be re-appointed in 2016.
• There are rumors again of a wind farm project in the southeast part of the county.
• One of the commissioners is on a rural energy board and said they are looking at a project to develop energy projects using Gates Foundation money. Eighteen counties could be working on solar projects.
• The ICE population is up again, but not staying as long in the facility. So much of these numbers are out of the county’s control.
• Funding for the ALBDC is still in the budget.
• John Kluever was asked Commissioner Moore if he knew anything regarding traffic rail spurs for two-mile trains locating here, but he said he hadn’t heard anything and that type of rail doesn’t come through here. (Commissioner Moore left here.)

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

• Chad Adams discussed why the city is investing in properties on the 300 block downtown.
• The city is working on the 2016 budget and it looks as if the operating levy will be at 0% for the 4th year in a row. The debt service will see an increase and they may use reserves to cover some of the increase.
• The sewer and water rates study is done. Water rates will most likely increase with the sewer fund holding as is. If the phosphate legislation passes, the city would need state and federal funds to help with upgrading the facilities to meet the requirements. Executive Director Nolander asked about how pre-treatment facilities at local businesses will affect the water and sewer funds.
• The sewer rebate program is slowly moving along.
• Roads projects are behind because of rain and the same contractor is doing most of the projects locally.
• The city has been selected to speak at the EDAM winter conference on meeting workforce housing needs. They also wrote an article for the Tribune Impact magazine. Jerry Gabrielatos is working on a small cities grant application for downtown facades and other uses.
• Senator Sparks called asking about potential bonding projects. One project the city is looking at is possibly moving Front Street closer to the railroad tracks which will promote business opportunities on the lake. Phase 2 would be a potential community center on the site, but wouldn’t be done until there are commitments from developers. (John Kluever left here.)

Chamber of Commerce – Randy Kehr, business community representative

• They are redoing their member directory.
• They are taking nominations for small, medium, and large Businesses of the Year.
• Both Randy Kehr and Executive Director Nolander were invited by Manny Steil to be on a workforce and education panel for the Education Foundation forum, but both have conflicts on September 10th. The location will be at Wedgewood Cove from 4:00-5:45, with the distinguished alumni dinner following. Commissioner Jansen agreed to fill in on the panel.
• The gala for Riverland will be on September 26th. Local businesses are being asked to be table sponsors which is very important for raising scholarship funds. The Riverland Foundation will give $5K from this gala to support the ALEAP program. ALEDA is sponsoring a table and there are still 4 tickets available as neither staff members can go.

8. COMMISSIONER/OTHER ITEMS – None

9. ADJOURNMENT

• Commissioner Heinemann made a motion to adjourn the meeting, seconded by Commissioner Brooks. The motion carried 5 in favor, 0 opposed. The meeting adjourned at 9:20 a.m.

Filed and attested September 2, 2015.