Albert Lea, MN October 8, 2001

The regular meeting of the Albert Lea City Council was called to order at 7:30 P.M. in the City Center Council Chambers by Mayor Bob Haukoos.

ROLL CALL

Present were Councilors Warren Amundson, David McPherson, George Marin, Ron Sorenson, Mary Kron, Al Brooks and Mayor Bob Haukoos.  Also present were City Manager Paul Sparks, Public Works Director David Olson, City Attorney Steven Schwab, Acting Council Secretary William L. Schmitt and representatives from KATE Radio and the Albert Lea Tribune.

CONSENT AGENDA

(a)               APPROVAL OF THE MINUTES FROM THE COUNCIL MEETING OF SEPTEMBER 24, 2001.

(b)               LICENSES AND BONDS APPROVED:

TEMPORARY LICENSE

FOOD/BEVERAGE

Hickory Barek’s Lodge (Terry Barek), 4128 Oakland Avenue South, Minneapolis, for Rendezvous October 4-7, 2001

Andrea Riemann, R.R.4, Box 6A, Albert Lea, for Rendezvous October 4-7, 2001

OFF-PREMISES LIQUOR

Jeff Fjelstad, dba Aragon Bar, Inc., for the Armory October 6 and October 20, 2001

(c)     RESOLUTION 01-228 ADOPTED - CLAIMS:  Resolution 01-228 presents the financial claims of the City.

                (See Secretary's Original Resolution 01-228 included with these minutes.)

Roger Bok, 1012 Cato Drive, requested that the items from the Consent Agenda be placed on the regular agenda.

Councilor McPherson moved, Councilor Brooks seconded, that the consent agenda items be adopted.  On roll call vote, all councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the consent agenda items adopted.

BUDGET WORKSHOPS SCHEDULED

City Manager Sparks requested the Council establish dates for budget workshop meetings to review the proposed 2002 budget.

After Council discussion, Councilor Amundson moved, Councilor Marin seconded, that the budget workshops be scheduled for October 18, 2001 and November 8, 2001 following the pre-agenda meeting on those evenings.  Councilor Marin requested that discussions with the CVB be included in the November 8 workshop.  On roll call vote, all councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the dates scheduled.

RESOLUTION 01-229 ADOPTED – AUTHORIZING A LOAN TO CARLSEN COMPANIES OF ALBERT LEA/CROSSROADS FARMS

City Manager Sparks explained that the City had received a request from Kim Carlsen of Carlsen  Companies  of Albert Lea/Crossroads  Farms  for  a loan  from the City’s Economic Development Revolving Loan Fund in the amount of $125,000 to permit the purchase of equipment to allow expansion of his business and the addition of employees.

Kim Carlsen, 1314 Martin Road, appeared before the Council.  He explained that he had hired 11 new employees in the past week and expects to hire a total of 43 full-time employees at $9.00 per hour plus benefits as new equipment and packaging lines go into operation.

After Council discussion, Councilor Marin moved, Councilor Amundson seconded, that Resolution 01-229, authorizing a loan in the amount of $125,000 at four percent interest for a term of five years subject to verification of numbers and a review of financial information, be approved.  On roll call vote, all councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the resolution adopted.  

(See Secretary’s Original Resolution 01-229 included with these minutes.)

RESOLUTION 01-230 ADOPTED – AUTHORIZING ECONOMIC DEVELOPMENT PROPOSAL FOR FARMLAND FOODS

City Manager Sparks informed the Council that the Economic Development proposal for Farmland Foods has been prepared and is presented to the Council for its consideration.  The proposal includes an offer to sell a 32-acre parcel owned by the Albert Lea Port Authority in Habben First Addition to Farmland Foods for construction of a new state-of-the-art facility to be purchased from a tax increment district created for this purpose at an established purchase price of $2.5 million, which includes an economic development grant from the State of Minnesota to the City of Albert Lea to provide a forgivable loan to the company.  Also, the City will take responsibility for and ownership of the existing Farmland Foods plant site and would proceed to investigate the environmental issues related to the site and perform the demolition necessary to clear the property with a combination of tax increment proceeds and grant funds provided by the State of Minnesota and the United States government.  The expected cost of demolition and remediation is $5 million.

Council discussion centered around the fact that there is no guarantee that the demolition and remediation will cost $5 million or less and suggested that a clause be included in this resolution that any costs exceeding the City’s $5 million responsibility be the responsibility of the Farmland Foods company.  The Council also requested that the Phase II clean-up study be completed prior to any finalization of a contract with Farmland Foods.

Roger Bok, 1012 Cato Drive, questioned why the Council is talking with Farmland and not Seaboard, as Seaboard is the owner of record of the existing property.  City Manager Sparks explained that Farmland has a contract with Seaboard and that this contract would be paid off as a part of the agreement.  Mr. Bok also questioned whether Farmland would be doing any pre-treatment at the new facility.

After additional Council discussion, Councilor Sorenson moved, Councilor Kron seconded, that Resolution 01-230, authorizing the economic development proposal for Farmland Foods including a clause that Farmland is responsible for any clean-up over the expected $5 million to be provided by the City and a clause that the Phase II clean-up study be completed  prior to the  finalization of a contract with Farmland Foods, be approved.  On roll call vote, all councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 01-230 included with these minutes.)

RESOLUTION 01-231 ADOPTED – AUTHORIZING APPLICATION FOR FUNDING FROM THE UNITED STATES ECONOMIC DEVELOPMENT ADMINISTRATION

City Manager Sparks explained that this resolution authorizes the City to make application to the U. S. Economic Development Administration for a grant to assist with the evaluation of the redevelopment issues involving the existing Farmland Foods plant site and that this is a matching grant that will be coordinated with the State Brownfield Grant.  This application is a necessary first step in doing the study to allow us to make application for a Brownfield grant.

After Council discussion, Councilor Brooks moved, Councilor Marin seconded, that Resolution 01-231, authorizing application for funding from the U.S. Economic Development Administration, be approved.  On roll call vote, all councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 01-231 included with these minutes.)

RESOLUTION 01-232 ADOPTED – AUTHORIZING APPLICATION FOR FUNDING FROM THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT

City Manager Sparks informed the Council that this resolution authorizes an application for a R.A.P. Development Grant for the purpose of doing a contamination investigation at the existing Farmland Foods plant site.  This is a necessary first step in identifying issues related to the Brownfield cleanup.  This funding is primarily involved with the ground contamination and its primary benefit to the City would be with the ash landfill.  Other areas may be identified in the study that involve cleanup that will also be eligible for funding.

After Council discussion, Councilor Amundson moved, Council Brooks seconded, that Resolution 01-232, authorizing an application for funding from the Minnesota Department of Trade and Economic Development, be approved.  On roll call vote, all councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 01-232 included with these minutes.)

RESOLUTION 01-233 ADOPTED – AUTHORIZING A CONTRACT WITH SHORT-ELLIOTT-HENDRICKSON FOR PHASE II CLEAN-UP STUDY

City Manager Sparks told the Council that as a result of the Council’s approval of the Economic Development Proposal for Farmland Foods, that it is necessary to proceed to investigate the environmental issues related to the existing Farmland site and the demolition necessary  to clear the property.   He noted that the  City has received a proposal from SEH for a Phase II clean-up study at a cost of $100,000 which would be paid for primarily by grant funds.

After Council discussion, Councilor Sorenson moved, Councilor Amundson seconded, that Resolution 01-233, authorizing a contract with Short-Elliott-Hendrickson for Phase II clean-up study, be approved.  On roll call vote, all councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 01-233 included with these minutes.)

RESOLUTION 01-234 ADOPTED – APPROVING HABBEN FIRST ADDITION FINAL PLAT

City Manager Sparks explained that this resolution approves the final plat for Habben First Addition. 

After Council discussion, Councilor Amundson moved, Councilor Brooks seconded, that Resolution 01-234, approving Habben First Addition final plat, be approved.  On roll call vote, all Councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 01-234 included with these minutes.)

UNLISTED ITEMS

WARD ITEMS

Third Ward, Councilor Marin:

a)      Thanked the street department for posting directional traffic signs around the gas stations during the perceived gas crisis following the September 11 attack.

b)      Questioned the potential for the installation of equipment in Wedgewood Park.  City Manager Sparks told Councilor Marin that this could be handled in budget workshops.

Fourth Ward, Councilor Sorenson:

a)      Asked whether the property owners adjacent to the alley off of Albert Lea Street were aware of the alternatives.  The City Engineer explained that he had just provided the proposals to the City Manager and that the residents would be informed in the near future.  Councilor Sorenson noted that an out-of-town owner is in attendance at the Council meeting and requested that the owner leave his name and address with the Engineer so that he could be informed of any alternative measures to be taken.

Fifth Ward, Councilor Kron:

a)      Received a request from Our Savior’s Lutheran Church for additional yellow

      curbing in front of the church, perhaps the entire side of the street.

Sixth Ward, Councilor Brooks:

a)      Stated that he received a complaint of a gas smell from a resident along South

      Shore Drive near the Assemblies of God Church.

PUBLIC ITEMS

Roger Bok, 1012 Cato Drive, told the Council that State Statutes require the posting of  Council meeting notices and suggested posting in the lobby bulletin board.  Mr. Bok also complained about the lighting along the interstate highways needing replacement.

ADJOURNMENT – 8:25 P.M.

Councilor McPherson moved, Councilor Sorenson seconded, that there being no further business, the council meeting be adjourned until the next regular meeting of the Albert Lea City Council on Monday, October 22, 2001.  On roll call vote, all councilors voted in favor of said motion.  Mayor Haukoos declared the motion carried and the meeting adjourned.

Filed and attested October 9, 2001.

______________________________                        _____________________________

  Acting Secretary of the Council                                                    Mayor