August 14, 2023 | City of Albert Lea

REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, August 14, 2023, 7:00 p.m.

PRESENT: Mayor Rich Murray, Councilors 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, Sergeant-at-Arms-Public Safety Director JD Carlson, and Deputy City Clerk Karla Tukua.

ADDITIONAL STAFF PRESENT: Finance Director Kristi Brutlag, Building and Zoning Official Wayne Sorenson.

ABSENT: Councilor Rachel Christensen, City Clerk Daphney Maras

CALL TO ORDER AND ROLL CALL: Mayor Murray called the meeting to order at 7:00 PM. Deputy Clerk Tukua 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 – No one spoke.

CONSENT AND APPROVAL OF AGENDA

A. Approve Minutes of the August 14, 2023 Regular Council Meeting
B. Approve Minutes of the August 14, 2023 Work Session
C. License & Permits
D. Resolution Accepting Bid & Awarding Contract for the Snyder Field Fence Project – Job 2317
E. Resolution Authorizing Submittal of Grant Application to the Board of Water & Soil Resources (BWSR) Clean Water Fund (CWF) for the Purchase of Street Cleaning Equipment – 2023 Misc. 275

Motion made by Councilor Baker to approve the consent agenda as read, seconded by Councilor R. Rasmussen. On roll call vote the following councilors voted in favor of said motion: Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.
(See Secretary’s Original Resolution 23-135 through 23-136
Included with these minutes)

PETITIONS, REQUESTS AND COMMUNICATIONS – None

UNFINISHED BUSINESS – None

NEW BUSINESS

A. Public Hearing Regarding Main Corridor Renewal Grant Funding for 1039 S. Broadway – BDO Properties, LLC.

City Manager Rigg stated that Jerry and Angela Collins submitted a Main Corridor Renewal Grant for reimbursement up to 50% of costs associated with foundation repairs, new windows, doors, siding, gutters, lighting, signage and parking lot repairs at 1039 S Broadway Ave. The total improvement amount equals $60,062.08 which will provide the applicant with a maximum grant per policy of $25,000.00. All improvements have been completed and reviewed by the City’s Zoning and Building Official for compliance with application requirements. Staff recommends approval of the attached resolution which approves funding for up to 50% of the total project costs or a maximum of $25,000
Mayor Murray opened the Public hearing. He called once and twice, and no one spoke. He called a third time and Jerry Collins came up to podium to speak. Jerry Collins thanked the City for their partnership and mentioned he hoped they have got a good proof of concept. He’d like to see more buildings/businesses do this. He invited the Council to come down and take a look at his business. Mayor Murray then asked again if anyone else would like to speak and no one spoke. He closed the public hearing.

A1. Resolution 23-137 Authorizing Main Corridor Renewal Grant Funding for 1039 S. Broadway – BDO Properties, LLC

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

Councilor Baker thanked the Collins for their work on the building, he stated he appreciated working with Jerry since they bought their materials locally at where Baker worked.

(See Secretary’s Original Resolution 23-137
Included with these minutes)

B. Public Hearing Regarding Modification of the Development District Program for Development
District No. 5 and the Tax Increment Financing Plan for Tax Increment Financing District No. 5-31

City Manager Rigg explained that City staff has been working to facilitate a redevelopment TIF District consisting of six parcels in the Downtown Commercial Historic District or the 300 Block of South Broadway. The City currently owns four of the parcels located within the TIF District with two other parcels in private ownership. At this time, the City has not entered into an agreement or designated a developer but construction of a mixed-use development with commercial space and rental housing units is expected to occur in multiple phases beginning in 2024. Ehlers has drafted a Tax Increment Financing Plan and cash flow statement providing up to approximately $1.6 M in tax increment financing over the course of 26 years—both of which are attached for your review. Rebecca Kurtz with Ehlers is available remotely to answer any additional questions.

Rigg deferred to Rebecca Kurtz for her comments. She stated that this is a redevelopment district so it did qualify for more than 50% per statute, of existing buildings in need of redevelopment. Explaining what this meant and gave an overview of this district stating they are anticipating a mixed used development. She said there will be a development agreement, that will have specifics on what the assistance would be, with dollar amounts and terms. Kurtz opened it up for questions.

Baker had a question for City Manager Rigg about the TIF over the 26 years, being 1.6M and also in regards to gap financing, to which Rigg responded. Rigg gave different examples of what could change the 1.6M, and also gap financing. All factors will be determined at the time of financing and could only speak generally, deferring to Kurtz for her input. Kurtz stated that any gap financing or any TIF going to a developer would need to come back to the city and the council will have the opportunity to review that agreement.

Mayor Murray opened the Public hearing. He called three times. No one spoke. He closed the public hearing.

B1. Resolution 23-138 Approving Modification of the Development District Program for Development District No. 5 and the Tax Increment Financing Plan for Tax Increment Financing District No. 5-31

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

(See Secretary’s Original Resolution 23-138
Included with these minutes)

C. Resolution 23-139 Authorizing Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 5-31

City Manager Rigg noted this resolution will amend Resolution 22-195 which was adopted on September 12, 2022 and authorized the advance of(100,000) $1,000,000.00 for qualified costs, which may be financed on a temporary basis and are necessary in establishing TIF District 5-31 (300 block of South Broadway). The purpose of amending this resolution is to take advantage of a higher interest rate, 5% versus the original interest rate of 4%.

(See Secretary’s Original Resolution 23-139
Included with these minutes)

D. Resolution 23-140 Authorizing Interfund Load for Advance of Certain Costs in Connection with Tax Increment Financing District No. 5-30

Rigg stated that there has been a recent complication with this project, which will increase the City cost to $400,000-$450,000, he asked Rebecca if we can amend the amount through the motion from $200,000 to $450,000, which Rebecca said the City could do, by amending the amount and getting an updated resolution with the correct amount, per the motion.

This resolution amends Resolution 23-044 which was adopted on March 13, 2023 and authorized the advance of originally $200,000, but staff would recommend increasing to $450,000 if a council member would be inclined to amend the amount in their motion for qualified expenses, which may be financed on a temporary basis and are necessary in establishing TIF District 5-30 (201/211 S Broadway). The purpose of amending this resolution is to take advantage of a higher interest rate, 5% versus the original interest rate of 4% as well as making the amendment due to anticipated costs.

Motion made by Councilor Baker to approve with the raising up from $200,000 to $450,000, seconded by Councilor R. Rasmussen. On roll call vote, the following councilors voted in favor of said motion: Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.

Baker questioned what the additional money would cover, to which Rigg explained about a preservation grant the City had received would not allow the City to sell the property with any kind of ease, going into more detail of the barriers the grant put in place. Rigg said due to this the City has chosen to put the full amount of the façade repair into the TIF district and the reasons why. Rigg answered additional questions from council in regards to this building. Councilor Anderson also stated for the persons listening why the City may possibly spend an extra $200,000, it’s worth mentioning that by taking the grant it would seriously curtailed the City’s ability to do anything useful, to which Rigg stated that is correct and gave the reasons why.

(See Secretary’s Original Resolution 23-140
Included with these minutes)

E. Ordinance 23-100 Amending Chapter 22 – Health (1st Reading)
During the 2023 legislative session, a new law was passed that legalized adult-use cannabis in Minnesota beginning August 1, 2023. The law is silent on whether cannabis can be smoked in public places other than public places governed by the Minnesota Clean Indoor Air Act (MCIAA). While the law does not specifically authorize the use of cannabis in public places, it does not create any penalty for use in a public place other than those governed by the MCIAA. If a city would want an enforcement mechanism to prevent the use of cannabis in public places, adoption of an ordinance prohibiting such use is required. Staff recommends approval of the first reading of this ordinance.

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

Councilor S. Rasmussen spoke on the fact that the Council spoke at length during the work session and stated that it made sense that in public areas where cigarette smoking is not allowed that cannabis would also not be allowed.

(See Secretary’s Original Ordinance 23-100
Included with these minutes)

F. Resolution 23-141 Approving a Lot Combination Through a Certificate of Survey for the Properties Located at 102, 110, 118 and 120 Columbus Avenue

Midwest Ag Properties has purchased 7 individual lots and wishes to utilize the building complex on the site as one facility. Adding doors and windows on a zero-lot line is prohibited in this case. Combination into one large lot satisfies State Building Code and will further the commercial use of this property. Note the before and after maps included in the council packed

Councilor Baker asked that Building and Zoning Official Sorenson come up to give the Council a version of what is happening in this motion. Sorenson explained state building codes in regards to sites with multiple parcels/lots and gave reasons why it makes sense to combine into one lot for this business. He stated the new owner is wanting to use as one business. Sorenson answered additional questions in regards to this parcel and combination.

(See Secretary’s Original Resolution 23-141
Included with these minutes)

MAYOR AND COUNCIL REPORTS:

First Ward, Councilor Christensen reported:

- Ward Items – None
- Committee Update – None

Second Ward, Councilor Baker reported:

- Ward Items – Have had residents call on the Algae in the lake and wanting to go back to using what chemical the City used to use for this. He asked that Public Works Director Jahnke to comment and give history of chemical. Jahnke said it’s been so long that the City had used this chemical and stated he’d have to get back to him, he didn’t want to give wrong information. Baker wanted this to be a Work Session item in the future to discuss the algae bloom and what the City can do.
- Committee Update – Stated he had an ALEDA meeting where he received updates on different projects in different phases of completion. He mentioned there is a lot of things that are going on and shared his excitement on what is going on in Albert Lea.
- Had an HPC meeting where they did a Certificate of Appropriateness for the Art Walk. Explaining that Holly with the CVB spoke to the HPC giving the history of the Art Walk and it will be a great asset to the City of Albert Lea. Baker gave an example the Art Walk in Mankato and what the vision is for Albert Lea.
- Baker attended a Budget Meeting stating that Finance Director Brutlag and City Manager Rigg went through everything. He thanked them for the job they are doing. Councilor Howland responded to this and stated the chemical is copper sulphate, stating that all lakes are green right now it’s just the reality and he wouldn’t be in favor of using this chemical.

Third Ward, Councilor Howland reported:

- Ward Items – One follow up with a constituent, and thanked the City Manager who contacted the individual. Also, mentioned being the coach for the Albert Lea Anglers with having 1 team finish first and another team that came in 3rd. Congratulated Albert Lea Anger’s team of Matthew Hall and Curtis Parmenter, who won the Conference and are heading up to State at Gull Lake in September
- Committee Update – None

Fourth Ward, Councilor S. Rasmussen reported:

- Ward Items – Working with City Manager and Engineers on possible crosswalk options by New Denmark Park and EatIn Ice Cream, with potentially shifting the cross walk between Northpark and Security State Bank to this spot and gave reasons why she is proposing this.
- Committee Update – Senior Board now has a new director, Mallory Rose. Also at the Senior Center they will have their end of the season barbecue August 28th, you’ll need to register by the 18th and she gave costs to the event. Mentioning as well that cost of membership can be covered by some insurance.

Fifth Ward, Councilor R. Rasmussen reported:

- Ward Items – Working on one ward item.
- Committee Update – Library Board meeting on Weds.

Sixth Ward, Councilor Anderson reported:

- Ward Items – No Ward items, but wanted to thank the public for their participation in Relay for Life. There were a lot of businesses that donated items for the event. He stated they are taking steps to bring it back to the glory days.
- Committee Update – None

MAYOR REPORT:

- Attended a drill put on by the Albert Lea School District, it was a practice session, if anything would happen it was a way of how things would be handled and how students get hooked back up with parents.
- Attended the Minnesota Chamber event at Design Ready Controls. Where they covered what happened at the legislative session.
- Attended a meeting at Wedgewood Cove with the Vogt’s, looking for ways to be partners with the city.
- Met with inclusive playground committee on fundraising options.
- Attended the skate park memorial honoring Manny, who had died of an opioid overdose.
- Attended Party in the Park with Hope Church, it was well attended.
- Attended the ALEDA meeting last week. Stated that Albert Lea is doing well and open for business.
- Attended the Budget meeting, finance staff and City Manager Rigg are doing a good job getting this put together.
- Attended the Albert Lea Schools Back to School party.
- Listed the upcoming events.
- Last item, he expressed that our community suffered a tragedy with the loss of 11-year old Ayden Michael Brackey. He asked that each of us keep this family in our prayers and as a community to come together and be there for them.

CITY MANAGER REPORT

- City is working on the budget feeling confident about where the city is at.
- With development we are getting quite a bit of inquiries and while we’d like to give details not everything works out and some companies want to keep private until details are worked out. He then gave an overview of the steps the City takes with each of the inquiries. He commended staff and partnering agencies, ALEDA, Freeborn Mower Electric Cooperative, Minnesota Energy and Deed for their efforts in making this community grow.
- Currently the city is working on leases, purchasing agreements, and development agreements, he hopes to have to council in the next couple meetings.
- Next meeting there will be a presentation from Senior Resources during the Work Session and a possible presentation from the Green Team, letting staff know where we are at with our Climate Action Plan
- Excited about helping participate in the creation of a Haunted House attraction that will be at the fairgrounds.

APPROVAL OF CLAIMS

A. Resolution 23-142 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, Tukua displayed a list of claims over $25,000 for the public’s viewing, transparency and education.

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

Councilor Baker asked how many payments were left on the Water Tower. Rigg didn’t have an exact number of payments because that will be a matter of request, but he thought we had approximately $600,000 left. Baker than asked to date what we have spent, Rigg stated about $5.4M.

(See Secretary’s Original Resolution 23-142
Included with these minutes)

CLOSED SESSION
Mayor Murray explained a motion to move into closed session is requested as permitted by Minnesota Statute 13D.05, Subd. 3(c). He noted the properties that will be discussed are:

- 110 2nd Avenue N.
- Depot Property
- Blazing Star Landing Development

MOTION: Move to enter into closed session at 7:53 p.m.

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

At 9:10 p.m. Councilor Anderson motioned to return to open session, seconded by Councilor S. Rasmussen. On a roll call vote, the following councilors voted in favor of said motion: Baker, Howland, S. Rasmussen, R. Rasmussen, Anderson and Mayor Murray. Mayor Murray declared the motion passed.

Mayor Murray announced staff was provided with direction in the closed session.

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, August 28, 2023. On roll call vote, all councilors voted in favor of said motion. Councilor Christensen was absent.

Mayor Murray declared the motion passed and the meeting adjourned.

ADJOURNMENT: 9:13 P.M.

___/s/_________________________
Mayor Rich Murray
____________________________
Karla Tukua
Secretary Pro Tem