REGULAR COUNCIL MEETING
CITY COUNCIL CHAMBERS, CITY OF ALBERT LEA
Monday, July 10, 2023, 7:00 p.m.

PRESENT: Mayor Rich Murray, Councilors Rachel Christensen, Larry Baker, Sherri Rasmussen, Robert Rasmussen, Brian Anderson. Also present were, City Manager Ian Rigg, Public Works Director Steven Jahnke, Sergeant-at-Arms-Public Safety Director JD Carlson, and City Clerk Daphney Maras.

ADDITIONAL STAFF PRESENT: Finance Director Kristi Brutlag.

ABSENT: Councilor Jason Howland and City Attorney Joel Holstad of Lake National Law LLP.

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
Oath of Office – Keith Grzybowski – ALPD – This item has been postponed to a future date to be determined

PUBLIC FORUM – Dave Karge spoke of the speeding traffic on Frank Ave. by the Pickleball Court. He asked if a speed zone could be added in that area. He also suggested a “no loitering” sign be installed at the North Broadway parking lot.

CONSENT AND APPROVAL OF AGENDA

A. Approve Minutes of the June 26, 2023 Regular Council Meeting
B. Approve Minutes of the June 26, 2023 Work Session
C. License & Permits
D. Resolution Approving Plans and Ordering of Bids for the 2023 Snyder Field Fence Project – Job 2317
E. Resolution Approving Donation of Memorial Bench along Blazing Star Trail for Maddison “Maddie” Mann – 2023 Misc. 255
F. Resolution Accepting Donations as Presented to the City of Albert Lea

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, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.

(See Secretary’s Original Resolution 23-122 through 23-124
Included with these minutes)

PETITIONS, REQUESTS AND COMMUNICATIONS – None
UNFINISHED BUSINESS – None

NEW BUSINESS

A. Resolution 23-125 Awarding Sale of General Obligation Bonds, Series 2023A
Rebecca Kurtz of Ehlers was present. She provided competitive sale results of the GO Bonds, Series 2023A for the purpose of financing the City’s 2023 assessable improvement projects and improvements to the City’s ice arena. Seven bids were received. The low bid was at 3.22% received from TD Securities, LLC. She commended the City on receiving the award for the AA- rating from Standard & Poors.

Per the City Charter, the City of Albert Lea has the authority to issue General Obligation Improvement Bonds to provide assessable public improvement projects undertaken by the City. Staff recommends the sizing of the bond to be $2,455,000 to finance City improvement projects, including Job 2301 5th Street and Frank Hall Drive Reconstruction, Job 2302 the 2023 State Aid Street Overlay Project, Job 2303 the Blazing Star Trail, Cedar Ave. and Eddie Cochran Street Resurfacing Project, the parking lots at the Aquatic Center and Bancroft Park and the replacement of the bleachers at the City Arena. The proposed bond would have a term of 10 years and be sold competitively. Rebecca Kurtz from Ehlers & Associates recommends council accept the bid at an interest rate of 3.22%.

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

(See Secretary’s Original Resolution 23-125
Included with these minutes)

B. Public Hearing Regarding $25,000 Small Cities Development Program Grant for
Rental Rehabilitation at 404-406 Vine Ave.

City Manager Rigg explained the City of Albert Lea was awarded Small Cities Development Program (SCDP) funds to develop viable, eligible communities and provide suitable living environments by expanding economic opportunities principally benefiting low to moderate income households. As such, Lanier Pratt obo Landmark Apartments of Albert Lea has applied for SCDP funds to install a new roof, siding, soffit, fascia, gutters and downspouts at 404-406 Vine Ave.

The attached agreement authorizes the City Manager to enter into a loan agreement for a maximum amount of $25,000 (or up to $12,500 per unit) which is forgivable after five (5) years provided the property isn’t sold, transferred or conveyed before the end of the five-year period.

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

B1. Resolution 23-126 Authorizing SCDP Agreement – 404-406 Vine Ave.

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

(See Secretary’s Original Resolution 23-126
Included with these minutes)

C. Public Hearing Declaring City Property (portion of the Blazing Star Site) of No Public Use, Waive the Planning Commission for Review for Analysis of Consistency with the Comprehensive Plan, and Sell the Property Listed at Fair Market Value

The City of Albert Lea and Tapestry Companies or RCIL Land Holdings, LLC have negotiated the terms of a Contract for Purchase and sale of approximately 4 acres of property at the Blazing Star Landing (full legal description attached) in order to facilitate a 60-unit LMI housing development and 68 units of senior housing. The contract for purchase and sale of property requires a $8,000.00 deposit from the purchaser and assigns a closing date of December 31, 2024. In addition, the city may provide in kind contributions that consist of sewer and water access fees, park land dedication fees, stormwater retention, grading and site preparation, installation of geo-piers—the final amounts of all of which will be provided in a separate development agreement and qualifying tax increment financing district.

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

C1. Resolution 23-127 Declaring City Property (portion of the Blazing Star Site) of No Public Use, Waive the Planning Commission for Review for Analysis of Consistency with the Comprehensive Plan, and Sell the Property Listed at Fair Market Value

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

(See Secretary’s Original Resolution 23-127
Included with these minutes)

D. Resolution 23-128 Approving Interim Use Permit for Habben Properties at 1212 Sykes St.

The Planning Commission met on July 5, 2023 to conduct a public hearing to consider the application for an Interim Use Permit (IUP) for residential conversion housing in order to accommodate new and potential employees at Select Foods. The purpose of an interim use permit is to temporarily allow a use under certain conditions that would otherwise not be allowed. In this case, residential uses such as dwellings, apartments and lodging housing are not permitted within the I-2 industrial district but because of the temporary nature of the request, MN Statute 462.359 allows interim use permits as long as a framework for the land use is established.

The Planning Commission made the following findings:
1. The interim use permit for residential conversion housing will alleviate housing shortages which has contributed to the inability of employers to attract and retain employers.
2. The residential conversion housing will not impact nearby properties as the construction is contained 100% within the existing structure.
3. Adequate utilities, access roads and drainage have already been provided and no additional public costs are expected.

The Planning Commission recommends approval with the following conditions:
1. The property shall adhere to residential noise ordinances.
2. All refuse shall be enclosed in a 3-yard dumpster container and schedule for regular pick-up.
3. No outdoor merchandise display or sales are allowed.
4. No outdo or storage of construction equipment or materials including vehicles, trailers, lawn mowers, snow blowers and other recreational vehicles is allowed on site.
5. The interim use permit shall expire after 24-months from the date of approval with the option to reapply.

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

(See Secretary’s Original Resolution 23-128
Included with these minutes)

E. Ordinance 23-099 Amending Chapter 50, Sec. 50.0199 Tabulation of District Requirements (1st Reading)

This ordinance amendment is staff initiated based on conversations with a proposed developer and follow-up research on changing trends in industrial real estate. Currently, the I-1 Limited Industrial District allows for a maximum building height of 40 feet which limits the amount of “clear height” or the height to which a product can be safely stored on racking or the height of a building from the floor to the bottom of the lowest obstruction (sprinklers, lighting, duct work, etc.).

Due to increased demand in warehousing space as seen in Albert Lea, industrial users are expecting clear heights of 36-feet or more, which makes the existing maximum building height difficult. As such, staff is recommending an increase in the maximum building height from 40-feet to 60-feet.
Additionally, staff researched industrial building height maximums in neighboring communities for comparison and while some cities remain in the 40-50-foot range some cities have no height restriction at all.
The Planning Commission held a public hearing on July 5, 2023 and recommends approval.

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

(See Secretary’s Original Ordinance 23-099
Included with these minutes)

MAYOR AND COUNCIL REPORTS:

First Ward, Councilor Christensen reported:

  • Ward Items – Thanked the community for the support and participation in all the Summer activities.
  • Committee Update – The Blue Zones committee had visitors from Pine County in Duluth interested in learning how Albert Lea became a Blue Zones City. She commended Cathy Malakowsky for the presentation she provided to these visitors. Also announced the 9 weeks of Summer Program is still in full swing and encourages residents to participate.

Second Ward, Councilor Baker reported:

  • Ward Items – None
  • Committee Update – Will attend two meetings on Wednesday

Third Ward, Councilor Howland reported: ABSENT

  • Ward Items
  • Committee Update

Fourth Ward, Councilor S. Rasmussen reported:

  • Ward Items – Reports Ward 4 has been fairly quite aside from some concerns from the falling debris from the Fireworks.
  • Committee Update – Will attend a Senior Center Board meeting on Wednesday

Fifth Ward, Councilor R. Rasmussen reported:

  • Ward Items – None
  • Committee Update – Will be attending an Airport Board meeting next week.

Sixth Ward, Councilor Anderson reported:

  • Ward Items – None
  • Committee Update – Will be reviewing the employment contract for the new HRA Director. He has been attending the Relay for Life meetings and stated volunteers are needed for the night of the Relay for Life. An ice cream social will be held at the American Legion and selling the luminary bags for this event.

MAYOR REPORT:
Attended the following meetings and/or events:

  • HRA meeting over a week ago
  • Open House at the new Veterans Home
  • Participated in the July 3rd Parade
  • The 13th Annual Car Show and awarded the Mayor’s choice award for best car
  • The Fireworks Show
  • Relay for Life is coming up on August 11 and 12.

Mentioned the upcoming events.

CITY MANAGER REPORT

  • Department budgeting for 2024 is in process
  • Wrapping up the Pay Equity report and Market Rate Study
  • Staff are working on inspecting properties along the Trail for cleanup
  • Bargaining process with the Union will be meeting soon
  • Met with County staff to review agreements and shared services
  • He commended staff for their creative solutions to the action items on the agenda

APPROVAL OF CLAIMS

A. Resolution 23-129 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 Christensen to approve the claims, seconded by Councilor Baker. On roll call vote, the following councilors voted in favor of said motion: Christensen, Baker, S. Rasmussen, R. Rasmussen, Anderson, and Mayor Murray. Mayor Murray declared the motion passed.

(See Secretary’s Original Resolution 23-129
Included with these minutes)

Councilor Baker 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, July 24, 2023. On roll call vote, all councilors voted in favor of said motion.

Mayor Murray declared the motion passed and the meeting adjourned.

ADJOURNMENT: 7:36 P.M.

___/s/_________________________
Mayor Rich Murray

___/s/_________________________
Daphney Maras
Secretary of the Council