REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, October 9 2023, 7:00 p.m.

PRESENT: Mayor Rich Murray, Councilors Rachel Christensen, Larry Baker, Jason Howland, Sherri Rasmussen, Robert Rasmussen, Brian Anderson. Also present were City Manager Ian Rigg, Public Works Director Steven Jahnke, City Attorney Joel Holstad of Lake National Law LLP, and City Clerk Daphney Maras.

ADDITIONAL STAFF PRESENT: Sergeant-at-Arms-Public Safety Director JD Carlson.

CALL TO ORDER AND ROLL CALL – Mayor Murray called the meeting to order at 7:00 PM. Clerk Maras administered roll call.

PLEDGE OF ALLEGIANCE – Mayor Murray asked all in attendance to stand and recite the Pledge of Allegiance.

CEREMONIAL ITEMS – None

PUBLIC FORUM – None

CONSENT AND APPROVAL OF AGENDA
A. Approve Minutes of the September 25, 2023 Regular Council Meeting
B. Approve Minutes of the September 25, 2023 Work Session
C. License & Permits
D. Resolution Calling a Public Hearing on Proposed Assessments for the 5th Street & Frank Hall Drive Reconstruction Project (Job 2301)
E. Resolution Calling a Public Hearing on Proposed Assessments for the 2023 State Aid Street Overlay Project (Job 2302)
F. Resolution Calling a Public Hearing on Proposed Assessments for Delinquent Water/Sewer Accounts and Miscellaneous Accounts Receivable
G. Resolution Amending Professional Agreement with Bolton & Menk, Inc. for Work Order No. 1 (Job 2406)

Motion made by Councilor Baker, seconded by Councilor S. Rasmussen. On roll call vote the following councilors voted in favor of said motion: Christensen, Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.

(See Secretary’s Original Resolution 23-176 through 23-179
Included with these minutes)

PETITIONS, REQUESTS AND COMMUNICATIONS – None

UNFINISHED BUSINESS – None

NEW BUSINESS

A. Resolution 23-180 Approving Master Service Agreement Between Bolton and Menk Inc. and the City of Albert Lea (Job 2308)

Rigg said Mead & Hunt is currently the airport consultant and has been since 2003. In August the City sent out a request for qualification statements. The City received proposals from Bolton & Menk, Inc. and TKDA. In September City staff, the Airport Manager and members of the Airport Advisory Board interviewed both firms. Based on these interviews the Airport Advisory Board, Airport Manager & City staff is recommending to contract with Bolton & Menk, Inc. as the Airport Consultant. This resolution authorizes the City to enter into a Master Services Agreement with Bolton & Menk, Inc.

Motion made by Councilor Baker, seconded by Councilor R. Rasmussen. On roll call vote the following councilors voted in favor of said motion: Christensen, Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.

(See Secretary’s Original Resolution 23-180
Included with these minutes)

B. Resolution 23-181 Establishing Youth Scholarship Program Pilot Project and Accepting Donation from Blue Zones Albert Lea

Rigg explained the goal of the proposed scholarship program is to remove some financial barrier in program participation offering physical, mental and social benefits. The City of Albert Lea has offered similar scholarships for free swim lessons and Aquatic Center passes the past 2 years. The Recreation Department would like to conduct a pilot project for Learn to Skate and Mites Hockey this fall. Blue Zones Albert Lea would donate $780 toward youth scholarships as part of a grant from Mayo Clinic Health System to promote youth recreation. The scholarship would cover 70% of a program fee with the participant providing the remaining 30%. By requiring some participation in the fee, staff believe students would be more committed to completing the requirements.

Motion made by Councilor S. Rasmussen, seconded by Councilor Christensen. On roll call vote the following councilors voted in favor of said motion: Christensen, Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.
(See Secretary’s Original Resolution 23-181
Included with these minutes)

C. Resolution 23-182 Authorizing an Agreement with Century Partners, LLC
The City of Albert Lea and Century Partners, LLC have negotiated the terms of a Purchase Agreement and Contract for Private Development which includes development of a mixed-use commercial space at 201-211 S Broadway (Freeborn Bank and Jacobson Building). Included in the Agreements is the sale of the upper two floors of the Freeborn Bank and the Jacobson Building (upon completion of façade repairs) for $1.00 and the issuance of a pay-go TIF Note in a not to exceed amount of $111,500.00. The TIF plan was previously approved in June of 2022.

Rigg reiterated the statement he made during the work session affirming all agreements are contingent upon the submittal of proper plans and specifications by the developer including the facade easement. He stated negotiations were done by staff with local investors. Neither Mayor Murray nor any elected official took part in this process. Additionally, any official that has or may have a perceived conflict of interest, should abstain from approval on this item. Rigg detailed the terms of the purchase agreement, funding, and the benefit to taxpayers. Noting the sale is for $1.00 however, there is a $158,000 promissory note that is included in the sale of the building. This amount is based on the tax assessed value of the property the City owns. The note will be forgiven upon completion of the project as part of the incentive package. This project was vetted through a third party and went through deviations due to changes in market and risks. Upon review, there were not enough incentives to make this project viable under normal traditional standards that the third party would typically see. Thus, the fact that local investors have more of an interest in this project than simply adding to the revenue stream. The forgivable mortgage and TIF is the only way this project is going to occur. The City’s initial investment was not to lose a significant historical structure that without state grants and local investments would have been demolished some 20 years ago. Staff believes that in order to not waste the money that has already been spent, incentivizing private ownership and full rehabilitation of the remaining building is the best course of action long term. In making the remaining space available, the City was able to be fully reimbursed on its $740,000 economic development loan that was originally used to develop the lower two levels of the bank building. If this agreement is approved, the City would no longer be burdened with maintenance, utilities, and insurance costs of the structure nor any future repairs. Lastly, the façade that the taxpayers have already invested in will have an easement placed on it to protect that venture.

Councilor Baker mentioned he is working with the developers through his place of employment with the possibility of them purchasing materials. For that reason, although he supports this project, he will abstain from voting.

To Councilor Anderson’s question, City Manager Rigg provided the history of this building. Rigg said the City has owned this property for 25 years. Grants have been received and used for repairs of windows and the façade at the bank building with additional repairs on the Jacobsen building. In that 25 years, the City has activively sought private investors and have continued to run into the same thing where outside stakeholders expressed interest and then the investment ultimately fell through. The heat and water utilities have continued to be paid by the City.
Councilor Christensen commented she is thrilled that local investors have committed to taking on this project.

Mayor Murray stated he, too, will abstain from voting due to his association to some of the investors.

Motion made by Councilor Christensen, seconded by Councilor Anderson. On roll call vote the following councilors voted in favor of said motion: Christensen, Howland, S. Rasmussen, R. Rasmussen and, Anderson. Mayor Murray and Councilor Baker abstained. Mayor Murray declared the motion passed.

(See Secretary’s Original Resolution 23-182
Included with these minutes)

MAYOR AND COUNCIL REPORTS:
First Ward, Councilor Christensen report:

    • Ward Items – Mentioned the upcoming public meeting on November 9th to discuss potential changes to Greenwood Drive. Residents are invited to attend this meeting. Announced St. Johns Lutheran Community at Fountain Lake will be hosting 13 harpists from around the U.S. and Canada. They will arrive in Albert Lea on Monday to study therapeutic music. They will perform several free casual concerts while they are here and the public is welcome to attend.
    • Committee Update – Noted she is wearing purple this evening in support of Domestic Violence Month. She attended and spoke of the Entrepreneur Bridge event hosted by ALEDA and the Southern Minnesota Initiative Foundation (SMIF) held at Wedgwood Cove.

Second Ward, Councilor Baker report:

    • Ward Items – None
    • Committee Update – Attended an HRA meeting. He reported the new HRA Director, Dr. Mitchell, provided insight on her plans going forward with HRA projects. Attended an event at the Albert Lea Art Center titled “The Art of Speaking”.

Third Ward, Councilor Howland report:

    • Ward Items – None
    • Committee Update – Will be attending a City budget meeting on Wednesday and the Special Council meeting on Thursday and a Park & Recreation meeting next Monday.

Fourth Ward, Councilor S. Rasmussen report:

    • Ward Items – None
    • Committee Update – Spoke about domestic violence and reminded people to seek help if they are in a violent or unsafe relationship.

Fifth Ward, Councilor R. Rasmussen report:

    • Ward Items – None
    • Committee Update – None

Sixth Ward, Councilor Anderson report:

    • Ward Items – None
    • Committee Update – None

MAYOR REPORT:

    • Attended the following meetings and/or events:
    • Attended the Entrepreneur Bridge event hosted by ALEDA and the Southern Minnesota Initiative Foundation (SMIF) held at Wedgwood Cove
    • On Sat., October 30th attended the Recovery Event at Central Park
    • On Sat. October 30th attended the open house for the Albert Lea Gymnastics
    • Visited Mr. Chapman who is the gentleman that bought two houses from the City recently to convert into homes for Veterens. Mayor reported the house he visited on Giles Place is coming along nicely.
    • Attended the Riverland Impact meeting at Riverland Community College. He spoke of the importance of maintaining a partnerhship with them.
    • On Wednesday, attended the ALEDA Greater Jobs meeting. Housing continues to be the main topic.
    • Attended Paint the Town Purple event last week. He commended the group involved in helping people in difficult situations.
    • Condolences to Councilor Anderson on behalf of himself and the council at the passing of Concilor Anderson’s mother.

Announced all the upcoming events.

CITY MANAGER REPORT –

    • Recognized the people who commit their time to bringing awareness to domestic abuse and offering support to those who have and are enduring domestic abuse.
    • Shared highlights from a conference he recently attended.
    • Staff contines to work on budgets. Specifically, at this time, focusing on utilities and capital.
    • Staff is reviewing the Comp Study structure
    • City Lots that are currently for sale will be reposted as calls have been received from people with interest
    • Received bids on the VFW repairs and the bids are being reviewed
    • He is pleased to be moving forward with some major items including the sale of the Jacobsen Building
    • Will be meeting with the new HRA Director this week on Wednesday
    • Thanked council for allowing him time away from work to spend time with family

APPROVAL OF CLAIMS
A. Resolution 23-183 Approving Claims
(1). Presentation of Claims Over $25,000

The attached resolution directs the Mayor and City Treasurer to issue the payment of claims as presented in the Detail of Claims report. In addition, Maras displayed a list of claims over $25,000 for the public’s viewing, transparency and education.

Motion made by Councilor Anderson to approve the claims as presented, seconded by Councilor Howland. On roll call vote, the following councilors voted in favor of said motion: Christensen, Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.
(See Secretary’s Original Resolution 23-183
Included with these minutes)

Councilor Howland motioned for adjournment, Councilor Anderson seconded. That there being no further business, the Council meeting adjourn until the next regular meeting of the Albert Lea City Council at 7:00 p.m. on Monday, October 23, 2023. On roll call vote, all councilors voted in favor of said motion.

Mayor Murray declared the motion passed and the meeting adjourned.

ADJOURNMENT: 7:34 P.M.

__/s/__________________________
Mayor Rich Murray

_/s/___________________________
Daphney Maras
Secretary of the Council