Albert Lea, MN

June 14, 2004

Pastor Curtis Zieske from Trinity Lutheran Church offered a prayer.

The regular meeting of the Albert Lea City Council was called to order at 7:00 P.M. in the City Center Council Chambers by Mayor Jean Eaton.

Present were Councilors Warren Amundson, Randy Erdman, Jeff Fjelstad, Mary Kron, Al Brooks and Mayor Jean Eaton. Absent was Councilor George Marin. Also present were City Manager Victoria Simonsen, Public Works Director Steve Jahnke, City Attorney Steve Schwab, Council Secretary Sandi Behrens and representatives from KATE Radio and the Albert Lea Tribune.

The Pledge of Allegiance was recited.

TATTOO ARTIST

Brian T. Nelson, Mystical Ink Tattooing and Body Piercing, 115 East Clark Street

(c)  RESOLUTION 04-129 ADOPTED – CLAIMS: Resolution 04-129 presents the financial claims of the City.

(See Secretary's Original Resolution 04-129 included with these minutes.)

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

Mayor Eaton opened a public hearing for the re-adoption of the Albert Lea Business Subsidy Plan dated March 8, 2004. The necessary notice for this hearing was published on June 3, 2004.

City Manager Victoria Simonsen explained that this hearing is required to permit public input into the criteria of the business subsidies.

Terry Kvenvold, Interstate Motor Trucks, commented that one of his competitors is included in the JOBZ program and he feels that he is at a disadvantage.

Ed Tschida, the City’s consultant for the JOBZ program, explained that the Business Subsidy Plan includes criteria for the JOBZ program and also recognizes the separation of the Albert Lea Port Authority from the City of Albert Lea. The plan also lays out more clearly how the City will evaluate proposals received. He noted that he used this plan to review proposals received to-date.

City Manager Simonsen commented that she have received questions regarding a clause in the plan stating that subsidies will not be made for retail or commercial activities and asked Mr. Tschida to comment.

Ed Tschida noted that the retail is not the primary factor for the Trail’s project. The project is predicated on Trail’s signing a contract for fleet sales. Trail’s is also required to provide documentation for an increase in employment figures. He also noted that there is some amount of retail in almost every business.

Terry Kvenvold explained that his business specialized in overhauls and transmissions in previous years but that today the daily routine business is required to continue the business.

Dan Dorman, 19263 767^th Avenue, appeared before the City Council as the area’s State Representative. He explained that the State does not prohibit competition or retail business from the JOBZ program and that no State approval is required. The JOBZ program is a locally controlled program and is a powerful economic development tool. He senses that some changes to the program will be forthcoming to assure that the proposals are appropriate.

Councilor Amundson asked Mr. Dorman if there is a State perception of abuse in the City’s program. Dorman responded that the only proposal that the State found as a form of abuse was the Hackensack proposal for a movie theatre. When that proposal was received, the legislature talked about prohibiting retail. He noted that there is some concern about "big box" proposals.

Mr. Tschida explained that the State approved the zones included in the JOBZ program but that the Council approves usage. He noted that the State has received all of the information for the Trail’s project and that the Department of Employment and Economic Development is prepared to sign an agreement for the project. The project meets the letter of the law and is not an untypical project

Councilor Brooks moved, Councilor Amundson seconded, that Resolution 04-130, re-adopting the Business Subsidy Plan, be approved. On roll call vote, all Councilors voted in favor of the motion. Mayor Eaton declared the motion carried, the resolution adopted and the public hearing closed.

(See Secretary's Original Resolution 04-130 included with these minutes.)

Mayor Eaton opened a public hearing for the request for JOBZ business subsidy from Quality Pork Processors, Inc. and Hormel Foods Corporation. The necessary notice for this hearing was published on June 3, 2004.

Ed Tschida explained that this request is for a boning and packaging facility on an 11 acre site in the Northaire Industrial Park. The company will employ 100 people initially and intends to employ 200 people in the next two years. The companies are investing over $5 million in the building and an additional $5 million in equipment. The primary beneficiary of the JOBZ program tax exemptions is Quality Pork Processors and the program meets the requirements of the plan.

After Council discussion, Councilor Amundson moved, Councilor Fjelstad seconded, that Quality Pork Processors/Hormel Foods request for a JOBZ business subsidy, be approved. On roll call vote, all Councilors voted in favor of the motion. Mayor Eaton declared the motion carried, the resolution adopted and the public hearing closed.

(See Secretary’s Original Resolution 04-131 included with these minutes.)

Mayor Eaton opened a public hearing for the request for submission of a Minnesota Investment Fund Application on behalf of Quality Pork Processors, Inc. and Hormel Foods Corporation. The necessary notice for this hearing was published on June 3, 2004.

Ed Tschida explained that this hearing will permit submission of a $250,000 grant application to the Department of Employment and Economic Development. The funds will be used to acquire the site for the proposed project.

After Council discussion, Councilor Brooks moved, Councilor Amundson seconded, that the submission of a Minnesota Investment Fund Application on behalf of Hormel Foods Corporation and Quality Pork Processors, Inc. be authorized. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried, the resolution adopted and the public hearing closed.

(See Secretary’s Original Resolution 04-132 included with these minutes.)

Mayor Eaton opened a public hearing for the ProfitPro JOBZ business subsidy proposal and modification of the JOBZ boundary. The necessary notice for this hearing was published on June 3, 2004.

Ed Tschida explained that the location for the ProfitPro proposal is not in the original JOBZ designation boundary and that a modification of the original boundary needs to be approved prior to the consideration of the ProfitPro proposal. He noted that the State has adopted a formal procedure for modification and that he has presented the proposal for the transfer of the acreage to the local taxing entities and that these entities have approved the transfer. This project will include the re-use of an older vacant building and the business is ag-related.

Mayor Eaton asked what happens if the businesses don’t comply with the requirements. Mr. Tschida explained that there are penalties in place if this occurs and that money would be paid back pro rata.

Councilor Brooks moved, Councilor Amundson seconded, that the Freeborn County JOBZ sub-zones application modification be approved. After Council discussion and on roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary's Original Resolution 04-133 included with these minutes.)

Councilor Brooks moved, Councilor Amundson seconded, that Resolution 04-134, approving the ProfitPro JOBZ business subsidy, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried, the resolution adopted and the public hearing closed.

(See Secretary's Original Resolution 04-134 included with these minutes.)

City Manager Simonsen told the Council that the Union Center has applied for permission to hold a street dance on Main Court adjacent to the club on July 3, 2004 from 4 p.m. to 10 p.m.

Councilor Kron moved, Councilor Brooks seconded, that the Union Center request for a street dance be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the street dance approved.

City Manager Simonsen explained that the Fraternal Order of Eagles has requested closure of St. Mary Avenue between William and West Main on Sunday, July 18, from noon to 5 p.m. for its annual family picnic.

Councilor Erdman moved, Councilor Kron seconded, that the request of the Eagles for the street closing be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the closing approved.

City Manager Simonsen noted that the Downtown Association has requested permission to close portions of South Broadway and William Street on Thursday, July 22, for its annual Crazy Daze event.

Councilor Erdman moved, Councilor Kron seconded, that the request of the Downtown Association for the street closing be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the closing approved.

City Manager Simonsen presented a Certificate of Commendation received from the Minnesota Pollution Control Agency to Rick Ashling, Chief Operation of the Wastewater Treatment Plant, for outstanding operation, maintenance and compliance of the wastewater treatment system for the period from October 1, 2002 through September 30, 2003.

City Manager Simonsen commented that the Albert Lea Port Authority Board of Directors has requested the City consider using tax increment financing as a tool to assist in the purchase of Lot 2, Block 4, Northaire Industrial Park. She noted that the purchaser of the property is Al Larson. Mr. Larson intends to building a 20,000 square foot building on the property and the district would be a pay-as-you-go district not requiring any up-front cash from the City.

After Council discussion, Councilor Amundson moved, Councilor Brooks seconded, that Resolution 04-135 authorizing the City Manager to proceed with the formation of a tax increment district for this purpose be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-135 included with these minutes.)

Mayor Eaton opened a public hearing for Ordinance 76, 3d, which accepts the Minnesota Office of Strategic and Long Range Planning annexation order for the Good Samaritan property. The necessary notice for this hearing was published on June 3, 2004.

On roll call vote, all Councilors voted in favor of Ordinance 76, 3d. Mayor Eaton declared the ordinance enacted and the public hearing closed.

(See Secretary’s Original Ordinance 76, 3d included with these minutes.)

City Manager Simonsen told the Council that the City had received a classification listing on non-conservation land forfeited for non-payment of property taxes. She explained that it is necessary for the City Council to either request to purchase the properties or decline acquisition.

After Council discussion, Councilor Brooks moved, Councilor Kron seconded, that purchase of the tax forfeited properties be declined. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-136 included with these minutes.)

City Manager Simonsen informed the Council that the Albert Lea Advisory Planning Commission has recommended approval of the amended conditional use permit for JD Ventures/Jared Dawson allowing the expansion of the townhouse development to the north of Quisley Street adjacent to Green Lea Golf Course.

Councilor Erdman moved, Councilor Amundson seconded, that Resolution 04-137, amending the conditional use permit for JD Ventures/Jared Dawson be approved. On roll call, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-137 included with these minutes.)

City Manager Simonsen commented that this resolution approves an administrative survey of Lot 1, Block 6, Buschbom Fourth Addition.

After Council discussion, Councilor Kron moved, Councilor Amundson seconded, that Resolution 04-138, approving an administrative survey of Lot 1, Block 6, Buschbom Fourth Addition, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-138 included with these minutes.)

City Manager Simonsen explained that this resolution approves Registered Land Survey No. 9 for the Albert Lea Medical Center Mayo Health Systems prepared by John Schulte of Jones, Haugh and Smith.

After Council discussion, Councilor Erdman moved, Councilor Fjelstad seconded, that Resolution 04-139, approving Registered Land Survey No. 9 and accepting the plat, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-139 included with these minutes.)

City Manager Simonsen noted that the City Council approved the use of JOBZ tax exemptions and tax credits to M. F. Technologies on March 22, 2004. This resolution reauthorizes the JOBZ tax exemptions to M. F. Technologies following the public hearing and adoption of the City’s Business Subsidy Plan.

Councilor Amundson moved, Councilor Kron seconded, that Resolution 04-140, affirming Resolution 04-76 relating to M. F. Technologies JOBZ subsidy, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-140 included with these minutes.)

City Manager Simonsen commented that the City Council approved the use of JOBZ tax exemptions and tax credits to Trail’s Service Center in Resolution 04-88 adopted April 12, 2004. This resolution reauthorizes the JOBZ tax exemptions to Trail’s Service Center.

Terry Kvenvold, Interstate Motor Trucks, explained that he had received the public document today and questioned the meaning of a paragraph included in this document, which states that the qualified business agrees not to compete with or displace local businesses currently operating within the Subzone community.

Ed Tschida told the Council that he specifically asked that question of the business and was told that they do not believe it will be competing. The business is looking for an increase in fleet sales of fuel.

After Council discussion, Councilor Kron moved, Councilor Fjelstad seconded, that Resolution 04-141 relating to the Trail’s Service Center JOBZ subsidy, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-141 included with these minutes.)

City Manager Simonsen told the council that the use of JOBZ tax exemptions and tax credits to Larson Manufacturing Company was approved in Resolution 04-89 adopted April 12, 2004. This resolution reauthorizes the JOBZ tax exemptions to Larson Manufacturing.

Councilor Brooks moved, Councilor Amundson seconded, that Resolution 04-142, affirming Resolution 04-89 relating to Larson Manufacturing Company JOBZ subsidy, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-142 included with these minutes.)

City Manager Simonsen explained that this resolution authorizes an agreement with School District 241 and Community Education to continue to provide a gender fair athletic program for 7^th and 8^th grade students.

Councilor Brooks moved, Councilor Amundson seconded, that Resolution 04-143, authorizing an agreement for the Youth First Program for 2004-2005, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-143 included with these minutes.)

City Manager Simonsen noted that the City’s sold waste disposal site continues to lose money and requires a subsidy. She is requesting the Council authorize the transfer of $100,000 from the General Fund Unappropriated Fund Balance to the Solid Waste Management Fund.

After Council discussion, Councilor Kron moved, Councilor Brooks seconded, that Resolution 04-144, authorizing the transfer of $100,000 as requested, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-144 included with these minutes.)

City Manager Simonsen explained that this motion calls for a public hearing for the transfer of the on-sale intoxicating liquor license and Sunday on-sale intoxicating liquor license from Bueno Management to Jaxx, Inc. at 137 East Clark Street.

Councilor Kron moved, Councilor Fjelstad seconded, that a public hearing be called for June 28, 2004 to consider the transfer of the on-sale intoxicating liquors from Bueno Management to Jaxx, Inc. be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the public hearing called.

City Manager Simonsen told the Council that the original joint power agreement for the Freeborn County Family Services Collaborative contained a five-year sunset clause. The agreement was amended to include additional school districts and was extended to June 30, 2004. The Collaborative is requesting an extension to June 30, 2006 which would enable the Collaborative to continue its functions of providing support, leadership, communication and facilitation for the agencies that serve children and families in Freeborn County.

After Council discussion, Councilor Brooks moved, Councilor Erdman seconded, that the extension of the sunset clause to June 30, 2006 be authorized. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the extension authorized.

City Manager Simonsen explained that the Strong Insurance Agency has acted as the City’s Agent of Record for many years. She recommended a fixed commission of $12,000 for Strong Insurance to continue to administer the City’s commercial insurance from July 1, 2004 to July 1, 2005.

Councilor Amundson moved, Councilor Brooks seconded, that Resolution 04-145, naming Strong Agency as the City’s agent of record be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-145 included with these minutes.)

City Manager Simonsen told the Council that the City had accepted bids for Job 0406, reproofing of the sludge thickening building and anaerobic digester building at the Wastewater Treatment Plant. The City received six bids and staff recommends award to the low bidder, Nieman Roofing, New Prague, at a total cost of $109,550.

Councilor Kron moved, Councilor Fjelstad seconded, that Resolution 04-146, accepting the bid of Nieman Roofing, New Prague, for Job 0406 at a total cost of $109,550, be approved. On roll call vote, all Councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the resolution adopted.

(See Secretary’s Original Resolution 04-146 included with these minutes.)

Mayor Eaton:

(1)  Congratulated the Wastewater Treatment Plant staff for the excellent work.

(2)  Congratulated the Albert Lea High School Alahasa staff for its award from Columbia University in the amount of $1500.

(3)  Congratulated the Freeborn County Trail Association for the opening of Phase II of the Blazing Star Trail.

(4)  Congratulated the Fountain Lake Sportsmen’s Club for a very successful 17^th annual Take-A-Kid fishing day with 900 kids participating.

(5)  Congratulated the Gus Macker volunteers for a successful tournament noting that this is the 9^th year and that 230 teams participated.

(6)  Congratulated the Low Bucks Car Club and the Freeborn County Historical Museum for a successful 15^th annual Eddie Cochran weekend. She noted that the Cochran family was here for the event this year and that funds raised by the Car Club during the weekend are given for music scholarships in Freeborn County.

(7)  Congratulated the Pelican Breeze on celebrating its 9^th year on Albert Lea Lake.

(8)  Announced that Minnesota Public Radio will be in Albert Lea on July 1 from 3 p.m. to 6 p.m. at the Lakeside Creamery.

Second Ward, Councilor Erdman:

(1)  Downtown redevelopment is one of the priorities that the Council identified at its retreat. He requested that the plywood in the old Freeborn Bank Building windows be replaced with glass and that the vault letters be removed from the building.

(2)  Requested that the Tyvek paper on the Jacobson Building be covered. He reminded the Council that the Festival of Bands will be held this coming weekend and that they bands march right down Broadway past these buildings.

(3)  Cautioned citizens to cease blowing grass, leaves and branches into the street. The City will no longer tolerate this activity. These items go directly into the lake system. Fountain Lake is already turning green and the City will be treating it with copper sulphate. The treatments won’t do much good if citizens don’t stop dumping items into the storm sewers. This is the responsibility of all residents.

(4)  Thanked Steve Jahnke for providing a cost estimate for year-round street sweeping and asked staff to budget for this next year.

Fourth Ward, Councilor Fjelstad:

(1)  Asked when the crosswalks around Thorne Crest will be painted. Steve Jahnke told Councilor Fjelstad that he would look into it and let him know.

Fifth Ward, Councilor Kron:

(1)  Asked when the boulevard by the water tower on Fountain would be mowed.

(2)  Asked that the globes on the lights on Broadway be cleaned and those that are burned out replaced.

(3)  Received a call from a lady in the North Broadway Condominiums that a flag has blown off the pole and she has it in the condo entryway.

Roger Bok, 1012 Cato Drive, asked where the public agenda was tonight, noted that there is an ordinance against putting grass in the street and suggesting the Inspection Department enforce it, suggested that the City hire others to mow lawns violating City ordinances rather than City staff, asked why water bills are being processed in Des Moines, asked that public items be put back on Item 4 on the Council agenda, asked why these things aren’t being reported in the newspaper, asked about the chain across the drive into Garden Villa Park and commented that George Marin has missed too many meetings. Mr. Bok wanted to know why he is missing and if he is getting paid for those meetings.

Councilor Amundson moved, Councilor Brooks 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, June 28, 2004. On roll call vote, all councilors voted in favor of said motion. Mayor Eaton declared the motion carried and the meeting adjourned.

Filed and attested June 15, 2004.

 /S/ Sandi Behrens                                                              /S/ Jean Eaton                                                         

Secretary of the Council                                                    Mayor