September 4, 2013 Albert Lea Post Authority Minutes
September 4, 2013
ALBERT LEA PORT AUTHORITY
MINUTES
SEPTEMBER 4, 2013
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 4, 2013 at 7:30 a.m. by President Nancy Skophammer. Roll was noted by the Board Secretary.
COMMISSIONERS PRESENT: Vern Rasmussen, Jr., Mike Moore, Jerry Ehn, Nancy Skophammer, Keith Fligge and Al Brooks
COMMISSIONERS ABSENT: Ellen Kehr
EX-OFFICIO MEMBERS PRESENT: Chad Adams, City of Albert Lea representative, Randy Kehr, business community representative; Mike Lee Freeborn County representative (7:40 am)
EX-OFFICIO MEMBERS ABSENT: None
STAFF MEMBERS PRESENT: Ryan Nolander, Executive Director; Dan Dorman, Project Manager; and Julie Dandrea, Board Secretary
STAFF MEMBERS ABSENT: None
GUESTS: Terry Berg, City of Albert Lea; Tim Penny, SMIF; Rebecca Gisel, Alliant Energy
2. APPROVAL OF MINUTES FROM AUGUST 7, 2013 MEETING
The minutes from the August 7, 2013 meeting were reviewed. Commissioner Ehn made a motion to approve the minutes as presented, seconded by Commissioner Rasmussen. President Skophammer asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.
3. RESOLUTION PA-13-19 AUTHORIZING PAYMENT OF CLAIMS
The claims were presented for review. A revised claims list was passed out. A check to GIS Planning was voided and rewritten in the correct amount. GIS licenses the online use of the property search software that interfaces with the state’s website. Commissioner Fligge made a motion to accept the claims as presented in the amount of $25,132.23, seconded by Commissioner Moore. President Skophammer asked for any discussion and hearing none, the motion carried 6 in favor; 0 opposed.
4. RESOLUTION PA-13-20 SIGNATORY CHANGE
This resolution is passed every January for bank account authorization. The change takes Dan Dorman off the accounts and puts Executive Director Nolander as a co-signer, along with the president and treasurer. Commissioner Brooks made a motion to pass the resolution as presented and Commissioner Ehn seconded it. The motion passed 6 in favor; 0 opposed.
5. APPROVE 2014 BUDGET
No changes were made from the proposed budget that was handed out at the last meeting. The budget is used as a guide since there are so many unknown variables in both assets and expenses with personnel, property taxes, rents, etc. Commissioner Fligge made a motion to approve the 2014 budget as presented, seconded by Commissioner Rasmussen. The motion passed 6 in favor; 0 opposed. Chad Adams invited Executive Director Nolander to present the budget to the city council at their meeting on September 9th.
6. SMIF PRESENTATION
Tim Penny passed out SMIF’s annual report and gave a brief review. The organization is 25 years old. Half of the budget is dedicated to making gap funding loans to entrepreneurs. They worked with SCORE to bring Albert Lea into the Owatonna group which now serves several counties. Early childhood education is another major focus. He said 92% of their resources come from EDA’s and cities outside Owatonna. He thanked ALEDA for their support in years past and hopes it will continue. Tim Penny and Dan Dorman left at this time (8:45 a.m.). Historically, $2,500 from the Port Authority and $2,500 from Greater Jobs has been given to support SMIF. These amounts were included in the 2014 budget so the board agreed to fund at the same amount as listed above.
7. GMEDP MEMBERSHIP
A flyer from GMEDP was handed out. Executive Director Nolander spoke in Dan Dorman’s absence, noting last year the Port joined the group at the $1,000 level. The focus of the group is to bring economic development ideas and issues from Greater MN to the capital. Dorman asked the Chamber to join at the $500 level and also asked Randy Kehr to serve on its board of directors. The consensus was to get behind the initiative Dan is leading as an advocate for our community. Commissioner Moore believes it’s a good idea and suggested joining at a higher level if the budget allows. The City is paying substantially more as a city in the coalition. Two-thirds of the GMEDP funding comes from cities, one-third from EDA’s, Chambers and businesses. They are our voice at the legislature. Commissioner Moore moved to join at the level of $2,500.00 split between Greater Jobs and the Port. Commissioner Ehn seconded it. The motion passed 6 in favor; 0 opposed.
8. EXECUTIVE DIRECTOR’S REPORT
Project Bluejay – Another blind lead came from the state a couple of weeks ago for a meat processing facility looking for a building or a 35-40 acre site. The majority of ALEDA Park was pitched because of the water capacity. This is only the first round and it’s unknown how many communities will respond. The facility would hire 250 employees to start and another 250 within the next five years.
Familiarization Tour –DEED is working with Positively MN group to host site selectors in Rochester on the 11th and then meet in Minneapolis for the quarterly meeting and feedback on the 12th. Five site selectors are coming, each sent to different regions. Each community in the region is given a half hour to present their area after a luncheon. Sue Miller from the county and Chad Adams were invited to attend to help answer any questions from the site selector. Executive Director Nolander would have liked to see the regions pitched as a whole. Dinner and a reception will follow later that night.
Cost Breakdown Discussion – In reviewing the claims report, it was realized the executive director wages have been paid 100% by the Port and the assistant director and administrative assistant wages paid 50% from the Port and 50% from Jobs. With staffing changes, both Dan and Ryan would be paid 100% from the Port. A change is suggested for the time being. Dan’s wages will be 50% Port and 50% Greater Jobs. Ryan’s wages will be 100% Port and Julie’s will remain the same. Commissioner Moore made the motion to accept this change and Commissioner Fligge seconded it. The motion passed 6 in favor, 0 opposed. Hammer Dieser will correct the last payroll. As a reminder, the Port pays the entire payroll and Greater Jobs reimburses the Port.
Tesla Motors – They want to install an electric charge station in Albert Lea. Randy Kehr and Executive Director Nolander became involved in discussions after Mayor Rassmussen received an email from them. The Tesla group in California wants to put 45 minute charging stations east to west coast by end of year. They want to be near amenities. The Northbridge Mall area has motels and restaurants. Their representative was put in touch with Barb Fate with the mall, AmericInn and Applebee’s. He’s already met with the city and Alliant. Hy-Vee was thought to be a good idea because they’re open 24 hours, but they were only interested if the spots were located in the back of store. Tesla puts in the infrastructure and pays for electricity. The car’s GPS screen shows the charging locations which are only for Tesla vehicles.
Jensen Excavating Rezone & Sale – At the city council’s August 12th meeting, the parcel was rezoned to I-1 and the signed purchase agreement was received a couple of days later. The closing papers will be ready within the next couple of weeks.
ZRB Expansion – Zumbro River Brand is looking at an expansion of 10,000 SF for manufacturing. They currently use the whole ALEDA spec building for warehousing. A meeting was held here last week with staff, DEED, the city, a bank and SMIF to talk about different options to fill a financing gap. Before the meeting, the entire group toured their facility. State or federal MIF funds could be applied for. Federal funds require the use of prevailing wage; however, since ZRB is a JOBZ client, they will have to use prevailing wage anyway. All federal dollars repaid can be kept, but only 20% of state dollars can be. DEED feels pressure to use up state dollars which come with less restriction due to the large allotment passed last session. The Port could partner with the city to get the funds since they already do the accounting and the city could keep the money repaid to revolve. Many questions were asked. Since the project is in the city, DEED thought it was a better idea to give the city the first turn to apply for funding rather than the county. Pam Sander from ZRB would like to see the repaid money stay in the community, if possible. Before the meeting, the entire group toured their facility.
Ventura/Ring Can Lease –Ring Container is getting out warehousing for Ventura locally. Rather than Ventura taking over the remainder of the Ring lease, they would like to move the inventory to the middle space and out of south end in order to be next to their current space. Staff wanted to tie in both spaces for the same lease duration. Ventura wants to keep same lease rate and term as the current Ring lease, but move to the middle space because they may want to get out of longer warehousing and do more “on time” warehousing. Executive Director Nolander suggested a motion to have the change on record. Commissioner Ehn made a motion to allow Ventura to move to the middle space with the same terms as the previous Ring Can lease. Commissioner Moore seconded and the motion carried 6 in favor; 0 opposed.
Alliant Energy – Yesterday, Alliant Energy brought a group here to announce their sale in Minnesota. The gas will be sold to Minnesota Energy Resources (MERC) and the electricity will go to Freeborn-Mower Cooperative Services and other cooperatives. The sale could take 6-12 months to go through regulatory. The buyers will extend offers to keep Alliant employees. Alliant’s electric territories in Minnesota are surrounded by cooperatives so it made sense to sell to them. The buildings will go to the cooperatives. The wind farms stays with Alliant.
St. John’s – Executive Director Nolander met with Scot Spate from St. John’s about financing issues with USDA on funding for their project. Scot asked Ryan to help by sending letters to Sentators Klobuchar and Franken and Congressman Walz. The St. John’s project will create 20-30 new jobs and saves existing jobs. Additionally, the independent living section will add to the tax base.
9. EX-OFFICIO UPDATE
Freeborn County – Mike Lee, Freeborn County Representative
· The Shellrock Wind Farm is on hold.
· John Kluever has been chosen as a finalist for the county administrator for Sherburne County which will be selected September 24.
· The county passed their 2014 budget, looking at a 0% levy increase.
· Mike Lee commented the board of commissioners was impressed by Executive Director Nolander when he presented the request for funding to the ALBDC at a county workshop.
City of Albert Lea – Chad Adams, City of Albert Lea Representative
(Chad Adams left earlier and Terry Berg gave the city report.)
· They have been working on their preliminary budget and levy. There will be no general levy increase; however, the debt service levy is going up due to projects.
· There will be some adjustments in utility rates, with water being the largest and sewer minimal.
· The HRA requested a special levy again this year. Last year they levied $50,000 and this year they are asking to levy $162,000.
· Eight focus group meetings have taken place regarding uses for the bank building. There will be an open house with tours with a presentation on September 10th and a chance for public comment. The city would prefer not to be the owner of the building.
· St. John’s zoning requests will be discussed on September 9th.
· A housing developer is looking at sites to build six-unit market rate housing in the community.
Chamber of Commerce – Randy Kehr, business community representative
· The Leadership Program kicked off with 16 members to meet the third Tuesday of every month.
· The Chamber is undergoing staffing changes and starting to interview for a staff replacement.
· The MN Chamber was intrigued by the youth apprenticeship program and will present the idea at the manufacturing summit in October for next year.
· There was a meeting at the AL Freezer Warehouse with Tom Newell, Representative Savick, Senator Sparks, ALEDA staff, and Al Larson about warehousing issues. Newell hasn’t been able to get an answer if the new warehouse tax applies to him. It says refrigerated space is exempt.
10. COMMISSIONER ITEMS – None
11. ADJOURNMENT
Commissioner Brooks made a motion to adjourn the meeting, seconded by Commissioner Rasmussen. The motion carried 6 in favor, 0 opposed. The meeting adjourned at 8:40 a.m.
Filed and attested September 4, 2013.