September 3, 2014 Albert Lea Post Authority Minutes

By Tyler Golberg | September 3, 2014

September 3, 2014

ALBERT LEA PORT AUTHORITY

MINUTES

September 3, 2014

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, September 3, 2014 at 7:30 a.m. by President Fligge.  Roll was noted by the Board Secretary.
  • COMMISSIONERS PRESENT:  Vern Rasmussen, Jr., Mike Moore, Ellen Kehr, Keith Fligge, Al Brooks, Nate Jansen and Mark Heinemann
  • COMMISSIONERS ABSENT:  None
  • 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:  Rebecca Gisel – Alliant Energy; Mike Murtaugh – FMCS; Savile Lord and John Holt – Blandin committee; Daniel Otten and Noel Austin – ALBDC board members

(The order of agenda items was moved due to the Blandin presentation @ 7:45 a.m.)

2.     APPROVAL OF MINUTES FROM AUGUST 6, 2014 MEETING

  • The minutes from the August 6, 2014 meeting were reviewed.  Commissioner Moore made a motion to approve the minutes as presented, seconded by Commissioner Brooks.  President Fligge asked for any discussion and hearing none, the motion carried 5 in favor; 0 opposed.

3.     RESOLUTION PA-14-17 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 $17,168.09, seconded by Commissioner Rasmussen.  President Fligge asked for any discussion and hearing none, the motion carried 5 in favor; 0 opposed.

4.     APPROVE 2015 BUDGET

  • On the general side, we are still waiting for the final number from Security Insurance on the Directors and Officers (D&O) liability insurance, but the current number should be close.  The real estate side had a change with the addition of a budget estimate for demolition of the Enderes building.  Northbridge Tool is expected move out approximately the end of November.  After no further discussion, Commissioner Moore moved to accept the 2015 Port Authority budget as presented.  Commissioner Brooks seconded and the motion passed 5 in favor, 0 opposed.  (Commissioners Heinneman and Jansen arrived.)

5.     FREEBORN MOWER COOPERATIVE SERVICES/ALLIANT PURCHASE DISCUSSION

  • This topic is on the agenda for information due to last week’s city council meeting where a resolution of support to Freeborn-Mower Cooperative Services was requested, but was tabled due to Henry Savelkoul voiced his concerns at the council meeting over the sale.  Executive Director Nolander spent time getting questions answered by Jim Krueger from FCMS and helped to facilitate a meeting with Jim Krueger and Mike Murtaugh of FCMS, Chad Adams, Henry Savelkoul, and himself to show and explain rate information.  Savelkoul wanted assurance that rates wouldn’t be out of line for new customers and the city residents wouldn’t be assuming county resident’s costs.  Savelkoul was also worried about City representation on the board and Jim Krueger explained how City representation will be added to the FMCS board.  Freeborn-Mower Cooperative Services has worked with many industries locally.  Commissioner Moore commented that MCB has been served by them for 18 years on Y.H. Hanson Avenue and FMCS has allowed them alternatives for flexibility.  It was mentioned that Tom Newell with MN Freezer Warehouse also had some concerns and Jim Krueger from FMCS and Rebecca Gisel from Alliant Energy will set up a meeting to address them with him.  Randy Kehr added the chamber board voted and sent a letter of support of the sale.  President Fligge asked if the Port Authority should provide a letter of support, but FMCS hasn’t asked for one.

6.     BLANDIN ENTREPRENEUR GROUP REPORT

  • Savile Lord passed out handouts and updated the board on the group’s five-prong Albert Lea Entrepreneur Advancement Program (ALEAP) to grow one business at a time.  The key result they foresee is 5 new businesses and 15 new jobs in 24 months by incorporating: 1) A “shark tank”; 2) Six-month training program; 3) Monthly networking/mentor program; 4) Incubator space; 5) Microloan program.   The facilitator for the program would be paid from SMIF funds and other sources.  Shark tank applications could be picked up and returned to ALEDA and/or the City offices.  The group doesn’t want to replace the incubator here, but create an office hotspot space downtown.
  • An application has been submitted for a micro loan grant.  Executive Director Nolander interjected that there are multiple loan programs available at ALEDA.  The Blandin group loans could possibly be small forgivable loans.  Nolander also thought a private party involved with the office incubator space should own it and not have ALEDA or the City running it.  The Blandin group doesn’t want to duplicate services ALEDA is already providing; they want to improve on them.  Nolander said marketing will be a big piece for the success of the program.  The group will begin advertising the shark tank applications after they hear about their grant application at the end of the month or beginning of October.  They may need matching funds.  It was discussed that ALEDA could possibly give up to $10K with a 60% Port/40% Greater Jobs split to help support the program. Commissioner Moore asked about who would facilitate networking meetings.  It would most likely be a paid, part-time contracted position to set up meetings and get the word out, an entrepreneur person possibly.  Commissioner Kehr asked about Riverland’s focus on an entrepreneurial center in Owatonna.  Chad Adams said the group would provide an update to Dr. Nuga and Steve Bowron of Riverland College. When asked about the timeline, the rollout can be flexible.

7.     EXECUTIVE DIRECTOR’S REPORT

  • Bridon Cordage update – Executive Director Nolander talked to Terry VanKampen from Bridon, who said Great Lakes Copper bought them effective last Friday.  They are located in London, Ontario and got their start by making copper fittings.  They are employee-focused, which was good.  They want to keep the operation here and get it 100% operational.  They plan to replace the 16 employees that quit during the transition and add 12 more.  Five groups submitted bids.  The winning bid was $19,250,000.  The no. 2 bidder would have probably moved the production from Albert Lea.  Commissioner Rasmussen suggested reaching out and introducing ourselves.  Staff will find out when the new management is in town.
  • St. John’s update – Chad Adams gave the update.  St. John’s is rebidding the project and confident they’ll stay within their budget.  The City continues to work through the development agreement and how much they can give to help while also working on their infrastructure responsibilities.  The final TIF analysis will be finished today.  Nothing is resolved yet and there is a lot of ongoing discussions.  There are three new contractors bidding this time.  Some locals didn’t bid as they’re too busy.
  • Mrs. Gerry’s update – They are planning a 93,000 SF addition.  Construction costs will be about $5M.  We were able to push the application through the state for approval and Mrs. Gerry’s was awarded $616,000 from the Job Creation Fund.  Projects over $500K require a public hearing and over $200K, prevailing wage kicks in.  Mrs. Gerry’s is worried that prevailing wage will cost more than the award.  The award can’t be reduced below $200K, so it’s either take it or take nothing.  The Speaker of the House Theissen was at the ALBDC touring Granicrete and staff had a chance to speak with him about this.  The prevailing wage requirement has been an ongoing issue due to the way it is calculated.  Speaker Theissen said he would bring this issue to DEED and to Governor Dayton.
  • Chad Adams gave an update on a possible regional storm pond to serve the Northaire Park.  A regional pond needs 8-10 acres.  One property owner said he doesn’t want to sell a piece of property, another owner said maybe in the future, and there is one other option.  Mrs. Gerry’s could expand their own pond now for this expansion and down the road join a regional pond.  Iowa has same the storm water issues there.
  • The City is also exploring whether to require pre-treatment facilities for heavy sewer users or should the City’s sewer system be updated.  There is enough flow capacity, but not enough essential bacteria in the system.
  • Advanced Family Dental – A groundbreaking ceremony was held a couple of weeks ago and it was a good event.  The City approved the abatement and the County did the same.  The City has received calls from other locales asking to share information because they read about the new abatement policy in the Minneapolis Star Tribune.
  • Site Selector visit – DEED organized another familiarization tour for August 12.  Executive Director Nolander and Randy Kehr picked up the site selector in Austin and gave him a driving tour of our properties and town.  He is consultant from Ohio and was impressed with the variety of inventory we had and enjoyed driving around rather than sitting in an office.  The Blazing Star landing really excited him.
  • Outlot A – Sack Thongvanh relayed Schrom is now looking at other land options within the community.  Schrom has not returned staff calls or emails.  It’s speculated that they are probably looking at ways to cut costs, however, the Port is selling the land for cost and doesn’t want to sell just a portion of the lot.  There is no downside to still moving ahead with rezoning lot as planned development.

8.     EX-OFFICIO UPDATE

Freeborn County – Mike Lee, Freeborn County Representative

  • The purchase of the Union Pacific abandoned rail piece is moving forward and they hope to close by October 1.
  • As previously mentioned, the County approved the tax abatement for Advanced Family Dental for five years at 90/80/70/60/50%.
  • The County is still working on the 2015 budget and will set the preliminary on September 16.

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

  • A Community Development Block Grant may be applied for to assist downtown projects.
  • Phase 2 of the streetscape will take place next year with the Broadway work from I-35 to Main Street.
  • The Blue Zones project is back.  Tomorrow there is a walking audit.
  • A facilities master plan to determine the expectant life of the City’s facilities is being developed.  The Blazing Star property is still being explored for a community/rec center which would still leave space for retail/commercial development around it.
  • The preliminary budget and levy will be set Monday.  The City might not need to increase sewer rates, but will increase water rates.
  • Commissioner Kehr commented that Dan Buettner with Blue Zones said he was impressed by the County’s action to buy the rail property along Highway 13.

Chamber of Commerce – Randy Kehr, business community representative

  • Reminded the board the Education Foundation is holding a forum at Wedgewood on September 11.
  • The Chamber is planning political forums for all political races.
  • Gave Dan Burden, transportation expert, a windshield tour and bike tour.  He was here 5 years ago for a walkability study.  Healthways is paying for his presence.
  • A fact checker from New York called about Dan Buettners’ new book.  The New York Times may also call for information.
  • The canoe launch paid for by a grant from Anheuser-Busch put 330 people in canoes and kayaks on the water.  The event was good exposure to the boat house and facilities.
  • Pro Trucking (now Pro Advantage) was visited by Congressman Walz.  They reported needing driver workforce.  Executive Director Nolander said his input on the education foundation panel will be focused on workforce.

9.     COMMISSIONER/OTHER ITEMS

  • President Fligge reminded the board he will be not be at the October 1st meeting so Vice President Rasmussen will preside.

10.  ADJOURNMENT

  • Commissioner Brooks made a motion to adjourn the meeting, seconded by Commissioner Jansen.  The motion carried 7 in favor, 0 opposed.  The meeting adjourned at 8:50 a.m.

 

Filed and attested September 3, 2014.

Posted in Minutes