WABASHA PORT AUTHORITY ANDDEVELOPMENT AGENCY

WABASHA CITY HALLTuesday, February 21, 2017

7:00 PM             

1. Call to Order2. Approval of Minutes -

1. December 20, 2016 Regular Minutes and February 6, 2017, Special Meeting Minutes3. Treasurers Report -

1. Financials4. Payment of Bills

1. City Support Staff Invoice2. City of Wabasha - K&C Fisheries Elec. Bill Reimb.3. Xcel Energy - K&C Fisheries February bill4. Custom Lawn Care LLC - K&C Fisheries mowing5. Gaedtke Accounting - K&C Fisheries Invoice6. K&C Fisheries Water Bill7. Wilford Geske & Cook - K&C Fisheries Legal Fees

5. General Business1. Grand Pad Demo - Mr. Scott Lien2. Elect 2017 Officers/Approve Resolution of Board of Directors for Bank 3. Riverfront Development - Next Steps4. Rural Healthcare Taskforce Update

6. Old Business7. Adjournment

Port Authority 2. 1. Meeting Date: 02/21/2017  ITEM TITLE: December 20, 2016 Regular Minutes and February 6, 2017, Special Meeting MinutesDEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Attached for review and approval are the minutes to the regular meeting held on December 20, 2016, and theminutes to the special meeting held on February 6, 2017.

ACTION REQUIRED:A MOTION to approve the December 20, 2016, regular meeting minutes and the February 6, 2017, special meetingminutes as presented.

Attachments12-20-16 Regular Meeting Minutes 2-6-17 Special Meeting Minutes 

D R A F T

WABASHA PORT AUTHORITY ANDDEVELOPMENT AGENCY

WABASHA CITY HALLTuesday, December 20, 2016

7:00 PM 

Present: Rolf Thompson; Treasurer Attorney Mark Jarstad; Mayor Rollin Hall; President John Friedmeyer;Vice President Amy Gaedtke; Dave Wodele

Absent: Kirk Lineweaver

AlsoPresent:

; City Clerk Sue Schamaun;

Attendees: Councilperson Dean Meurer, Jeff Sulla  

               

1. Call to Order - Port Authority President John Friedmeyer called the meeting toorder at 7:00 PM.

 

2. Approval of Minutes  

1. November 15, 2016, Port Authority and City Council Meeting Minutes:   

   Moved by Mayor Rollin Hall, seconded by Rolf Thompson to approve the November 15, 2016, Port

Authority minutes.   Vote: 6 - 0 Adopted - Unanimously  Other: Kirk Lineweaver (ABSENT)  

3. Treasurers Report    Moved by Dave Wodele, seconded by Vice President Amy Gaedtke to approve the November Port

Authority financials as presented.   Vote: 6 - 0 Adopted - Unanimously  Other: Kirk Lineweaver (ABSENT)  

 

1. Port Authority Financials   

 

4. Payment of Bills   Moved by Dave Wodele, seconded by Treasurer Attorney Mark Jarstad to approve the following bills as

presented:   Vote: 6 - 0 Adopted - Unanimously  Other: Kirk Lineweaver (ABSENT)  

1. December Staff Support - $1,250.00   

 

2. K&C Fisheries DVS Plate Renewal - Chad Reimb. - $49.95   

 

3. Wabasha Sand & Gravel - K&C Fisheries - 225.49   

 

4. Custom Lawn Care, LLC - K&C Fisheries Mowing - $350.00 (9/11 & 9/26 mowing)   

 

5. K&C Fisheries Xcel Energy Bill - $898.20   

 

6. Wilford Geske & Cook Invoice - K&C Fisheries Legal - October Invoice $1,201.50 and DecemberInvoice $1,055.00

  

 

5. General Business 

1. Appointment Renewal - Amy Gaedtke:Amy Gaedtke's Port Authority term ends on December 31, 2016. After discussion, Amy Gaedtke statedshe would renew her appointment extending her term until December 2022.

  

 

2. Revolving Loan Fund Discussion: Tabled until the next meeting.   

 

3. CLOSED SESSION: DISCUSS K&C FISHERIES POTENTIAL PURCHASE:

At 7:33 PM, the Port Authority unanimously moved to go into Closed Session to discuss the potential saleof K&C Fisheries.

At 8:00 PM, Dave Wodele and Amy Gaedtke moved to come out of Closed Session. Adoptedunanimously.

  

   Moved by Mayor Rollin Hall, seconded by Rolf Thompson to instruct staff to draft documents to offer the

K&C Fisheries property for $468,000.00.   Vote: 5 - 0 Adopted  Other: Treasurer Attorney Mark Jarstad (ABSTAIN)

  Kirk Lineweaver (ABSENT)  

6. Old Business 

7. Adjournment   Moved by Vice President Amy Gaedtke, seconded by Dave Wodele to adjourn at 8:10 PM.

  Vote: 6 - 0 Adopted - Unanimously  Other: Kirk Lineweaver (ABSENT)   

D R A F T

WABASHA PORT AUTHORITY ANDDEVELOPMENT AGENCY

Special MeetingWABASHA CITY HALLMonday, February 6, 2017

7:00 PM 

Present: Treasurer Attorney Mark Jarstad; Mayor Rollin Hall; President John Friedmeyer; KirkLineweaver; Vice President Amy Gaedtke; Dave Wodele

Absent: Rolf Thompson

AlsoPresent:

City Administrator Chad Springer; ;

Attendees: Attorney Eric Cook, via teleconference  

               

1. Call to Order - Council President John Friedmeyer called the meeting to order at 7:00PM and announced the special meeting was being held for a Public Hearing to considerpurchase agreement for sale of K&C Fisheries.

 

2. Public Hearing: Consideration of Approving Purchase Agreements for sale of K&C FisheriesBuilding

Port Authority President, John Friedmeyer, opened the Public Hearing at 7:01 pm.Attorney Eric Cook announced the K&C Fisheries Project has been going on for many months with the PortAuthority incurring holding costs of a non-conforming assets from a failed business. After a number ofmonths of trying to solicit purchase offers for this building going through a foreclosure process, there iscurrently a purchase agreement under considering from California Overland. This is a cash offer for$468,000.00 and would give the potential purchaser the option to review title for 10 days and provides forclosing within 30 days of the effective date of the signed purchase agreement. it also provides for depositing$5,000 in an escrow account. The property is being sold in an 'as is' condition with no warranties being givenas to the condition The terms in the agreement also do not provide for selling any personal property. Theagreement does provide that some of the lien holders release and satisfy their liens on record to clear the wayfor the transaction.

for the transaction.

Attorney Cook stated the meeting is for the Port Authority to determine whether they will accept thisPurchase Offer and proceed with executing the Purchase Agreement and giving the Port Authority theauthority to close on the transaction in the next 30 days.

At 7:04 PM, Port Authority President, John Friedmeyer, asked for public input.

Mr. Darrel Swanson inquired about the fire sale on this property scheduled for February 22, 2017.Attorney Cook stated he doesn't think a foreclosure sale will happen and it is still an open auction for the PortAuthority to proceed with that sale but only if it turns out that it is in the best interest of the Port Authority toproceed with that sale. It is more out of necessity and to keep the Port Authority's options open depending onwhat the status of the title is and other liens that may be against the property.Attorney Cook further explained that the scheduled February 22nd is a mortgage foreclosure sale. The PortAuthority holds two mortgages against the property and the full debt against the property is pretty significantas this is a very valuable piece of property. He feels the foreclosure sale will be canceled and the PortAuthority will proceed with the purchase agreement by accepting a deed in lieu from the borrower, whichmeans there wouldn't be a need for a foreclosure sale.Mr. Swanson asked what the amount of debt being held on this property is.Attorney Cook stated there is a judicial record at the County that would have what the full debt is on thisproperty and feels it is approximately $550,000.

After asking for public comments three times, Port Authority President, John Friedmeyer, closed the PublicHearing at 7:08 PM.

   Moved by Mayor Rollin Hall, seconded by Vice President Amy Gaedtke to authorize the Port Authority

personnel to finalize and execute the Purchase Agreement which will allow the Port Authority to proceed withclosing and authorize Port Authority signatures to execute conveyance documents in the form of a deed toconvey the real estate to the purchaser, California Overland, and any and all other documents necessary toclose the transaction.

  Vote: 5 - 0 Adopted  Other: Rolf Thompson (ABSENT)

  Treasurer Attorney Mark Jarstad (ABSTAIN)  

3. Adjournment   Moved by Mayor Rollin Hall, seconded by Vice President Amy Gaedtke to adjourn at 7:12 pm.   Vote: 6 - 0 Adopted - Unanimously  Other: Rolf Thompson (ABSENT)   

Port Authority 3. 1. Meeting Date: 02/21/2017  ITEM TITLE: FinancialsDEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Attached are the most recent Port Authority financials.

please review for approval.

ACTION REQUIRED:A MOTION to receive and file the January 2017 Port Authority financials as presented.

AttachmentsJanuary 2017 Port Authority Financials 

Port Authority Financial Summary/Projection:1/31/2017

Current Account Balances:Cash and Marketable Securities

PA Main Checking 869.30$ PA Main Money Market 220,029.81$

Restricted FundsPA Revolving Loan Checking 2,500.00$ PA Revolving Loan Fund 20,824.82$ Small Cities Dev Fund 16,314.65$

Total Current Account Balances: 260,538.58$

2017Additional Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Misc Interest 75$ 75$ 75$ 75$ 75$ 75$ 75$ 75$ 75$ 75$ 75$ 2017 Tax Levy 40,928$

Total Additional Revenue: -$ 75$ 75$ 75$ 75$ 41,003$ 75$ 75$ 75$ 75$ 75$ 75$

Commitments (Expenses)City of Wabasha - Admin Support 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ CEDA 1000K and C Foreclosure 7,000$

Total Commitments: -$ 8,250$ 2,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$ 1,250$

Remaining Gross Fund Balance: 260,539$ 252,364$ 250,189$ 249,014$ 247,839$ 287,592$ 286,417$ 285,242$ 284,067$ 282,892$ 281,717$ 280,542$

Less: Restricted FundsRevolving Loan Fnd 23,325$ 23,325$ 23,325$ 23,325$ 23,325$ 23,325$ 23,325$ 23,325$ 23,325$ 23,325$ 23,325$ 23,325$

RECC Donation (Doffing Grant) 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ Small Cities Development Fund 16,315$ 16,315$ 16,315$ 16,315$ 16,315$ 16,315$ 16,315$ 16,315$ 16,315$ 16,315$ 16,315$ 16,315$

Subtotal Restricted Funds 89,639$ 89,639$ 89,639$ 89,639$ 89,639$ 89,639$ 89,639$ 89,639$ 89,639$ 89,639$ 89,639$ 89,639$

Adjusted Fund Balance: 170,899$ 162,724$ 160,549$ 159,374$ 158,199$ 197,952$ 196,777$ 195,602$ 194,427$ 193,252$ 192,077$ 190,902$

Notes:A) Analysis does not show any impact from potential sale of K and C building.B) Need to make decision regarding approximately $15K remaining in City match funds for USDA loan.

Bank Account Detail1/29/2016

Checking Account Activity: Port Authority Money Market ActivityBalance Last Statement: 2,230.42$ Balance Last Statement: 220,246.80$

Deposits: Deposits:A) A) Interest 55.40$ B) 1,027.61$

Total Deposits: -$ Total Deposits: 1,083.01$

Withdrawals: Withdrawals:A) Total 1,361.12$ A) 1,300.00$

Total Withdrawals: 1,361.12$ Total Withdrawals: 1,300.00$

Current Balance: 869.30$ Current Balance: 220,029.81$

Less: Outstanding Items Less: Outstanding Items

Adjusted Balance: 869.30$ Adjusted Balance: 220,029.81$

Port Authority Revolving Loan Fund - Checking Port Authority Revolving Loan Fund - Money MarketBalance Last Statement: 2,500.00$ Balance Last Statement: 19,902.19$

Deposits: Deposits:A) A) Interest 2.95$ B) B) 919.68

Total Deposits: -$ Total Deposits: 922.63$ Account Summary:Checking Account Balance: 869.30$

Withdrawals: Withdrawals: Port Authority Money Market: 220,029.81$ A) A) Port Authority Revolving Loan Checking: 2,500.00$ B) B) Port Authority Revolving Loan Fund: 20,824.82$

Total Withdrawals: -$ Total Withdrawals: -$ Port Authority/NEC Capital Campaign MM: -$

Current Balance: 2,500.00$ Current Balance: 20,824.82$ Cash and Marketable Securities: 244,223.93$

Less: Outstanding Items Less: Outstanding Items

Adjusted Balance: 2,500.00$ Adjusted Balance: 20,824.82$

SCDP Account: Balance Last Statement: 16,312.38$

Deposits:A) 2.27$ B)

Total Deposits: 2.27$

Withdrawals:A) Total

-$

Total Withdrawals: -$

Current Balance: 16,314.65$

Less: Outstanding Items

Adjusted Balance: 16,314.65$

Port Authority 4. 1. Meeting Date: 02/21/2017  ITEM TITLE: City Support Staff InvoiceDEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Attached is an invoice for City Support staff for January and February.

AttachmentsCity Support Staff Invoice 

February 21, 2017

INVOICE

TO: Wabasha Port Authority & Development Agency

Staff Support:

January 2017 $ 1,250.00February 2017 $ 1,250.00

TOTAL DUE: $ 2,500.00

Please remit to: City of WabashaPO Box 268Wabasha, MN 55981

Port Authority 4. 2. Meeting Date: 02/21/2017  ITEM TITLE: City of Wabasha - K&C Fisheries Elec. Bill Reimb.DEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Attached is an invoice from Xcel Energy for K&C Fisheries.The City paid the bill due to the Port Authority not having a January meeting. The Port Authority needs to reimburse the City for this bill.

 

ACTION REQUIRED:A MOTION to approve payment of the Xcel Energy bill as well as any remaining amount due up until the time ofsale.

AttachmentsK&C Fisheries Xcel Energy Bill 

Port Authority 4. 3. Meeting Date: 02/21/2017  ITEM TITLE: Xcel Energy - K&C Fisheries February billDEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Attached is the January 2017 Xcel Energy bill for K&C Fisheries.

AttachmentsJan. 2017 K&C Fisheries Xcel Energy Bill 

Port Authority 4. 4. Meeting Date: 02/21/2017  ITEM TITLE: Custom Lawn Care LLC - K&C Fisheries mowingDEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Attached is the final invoice for mowing at K&C Fisheries for 2016.

AttachmentsCustom Lawn Care Final Mowing Invoice for K&C Fisheries 

Port Authority 4. 5. Meeting Date: 02/21/2017  ITEM TITLE: Gaedtke Accounting - K&C Fisheries InvoiceDEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Attached is an invoice from Amy Gaedtke, CPA, for processing payroll taxes for K&C Fisheries in 2016.

AttachmentsGaedtke Accounting - K&C Fisheries Invoice 

Port Authority 4. 6. Meeting Date: 02/21/2017  ITEM TITLE: K&C Fisheries Water BillDEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Attached is the outstanding water bill for K&C Fisheries.

AttachmentsK&C Fisheries Water Bill 

Port Authority 4. 7. Meeting Date: 02/21/2017  ITEM TITLE: Wilford Geske & Cook - K&C Fisheries Legal FeesDEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Attached are the January and February 2017 Invoices from Wilford Geske & Cook for K&C Fisheries legal fees.

AttachmentsWilford Geske & Cook January Invoice Wilford Geske & Cook February Invoice 

Port Authority 5. 1. Meeting Date: 02/21/2017  ITEM TITLE: Grand Pad Demo - Mr. Scott LienDEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Mr. Scott Lien, CEO and Co-Founder of GrandPad, as well as a former full-time Wabasha and current pat-timeresident of Wabasha will give a demo on a product he designed and created call the GrandPad.  Mr. Lien willdiscuss a future opportunity for GrandPad in Wabasha that he is pursuing and also begin the discussion for apossible Business Incubator for the City of Wabasha.

STAFF RECOMMENDATION:This is mostly an informative discussion, however, I would suggest forming a small group of myself and 2 PortMembers to further explore and work with Scott to discuss the Business Incubator idea.

Port Authority 5. 2. Meeting Date: 02/21/2017  ITEM TITLE: Elect 2017 Officers/Approve Resolution of Board of Directors for Bank DEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Election of 2017 Port Authority officers:

PresidentVice-PresidentTreasurer 

STAFF RECOMMENDATION:After election of officers, a Resolution will need to be approved for Port Authority bank authorization of officers.(Resolution attached)

ACTION REQUIRED:After electing officers, a MOTION approving the Resolution for Board of Directors for the Port Authority forsignatures.

AttachmentsBank Resolution for Signatures 

RESOLUTION #01-2017 OF BOARD OF DIRECTORS(Authority to Open Deposit Account)

I HEREBY CERTIFY that I am the duly appointed and qualified City Clerk/Treasurer of the Wabasha Port Authority and Development Agency and the keeper of the records and corporate seal of said Corporation and that the following is a true and correct copy of a resolution duly adopted at a regular meeting of the Board of Directors of said Corporation held in accordance with the By-Laws of said Corporation at its offices located at City Hall on the 21st day of February , 2017.

BE IT RESOLVED, that First State Bank of Wabasha (herein call the “Depository”) be, and it is hereby, designated a depository of this Corporation and that funds so deposited may be withdrawn upon a check, draft, note or order of the Corporation.

BE IT FURTHER RESOLVED, that all checks, drafts, notes or orders drawn against said account be signed by any two of the following effective February 21, 2017:

Accounts to be signed as follows:

Account NAME TITLEWabasha Port Authority and Development Agency

Treasurer

Checking Acct# XXXXX Requires two signatures

PresidentVice President

Wabasha Port Authority and Development Agency

Treasurer

Money Market Acct# XXXXX Requires two signatures

PresidentVice President

Wab. Port Authority/SCDPAcct# XXXXXX

TreasurerPresidentVice President

Revolving Loan Fund #XXXXX TreasurerPresidentVice President

Revolving Loan Fund CheckingAcct # XXXXX

TreasurerPresidentVice President

and countersigned by any one of the following:

NAME TITLE

whose signatures shall be duly certified to said Depository, and that no checks, drafts, notes or orders drawn against said Depository shall be valid unless so signed.

BE IT FURTHER RESOLVED, that said Depository is hereby authorized and directed to honor and pay any checks, drafts, notes or orders so drawn, whether such checks, drafts, notes or orders be payable to the order of any such person signing and/or countersigning said checks, drafts, notes or orders, or any of such persons in their individual capacities or not, and whether such checks, drafts, notes or orders are deposited to the individual credit of the person so signing and/or countersigning said checks, drafts, notes or orders, or to the individual credit of any of the other officers or not. This resolution shall continue in

force and said Depository may consider the facts concerning the holders of said offices, respectively, and their signatures to be and continue as set forth in the certificate of the Secretary or Assistant Secretary, accompanying a copy of this resolution when delivered to said Depository or in any similar subsequent certificate, until written notice to the contrary is duly served on said Depository.

IN WITNESS WHEREOF, I have hereunto affixed my name as Susan Schamaun/City Clerk and , President, ____________ and have caused the corporate seal of said Corporation to be hereto affixed this 21st day of February, 2017.

___________________________________ Susan Schamaun/City Clerk

seal ___________________________________ President

I, a Wabasha Port Authority and Development Agency Person of said City do hereby certify that the foregoing is a correct copy of a resolution adopted as above set forth.

___________________________________ President

TO First State Bank of Wabasha, 111 Main Street, West, Wabasha, MN 55981 I HEREBY CERTIFY that the foregoing is true and correct copy of all parts of the By-Laws of City of Wabasha Port Authority and Development Agency , covering the signing of checks, drafts and orders for the payment of money.

IN WITNESS WHEREOF, I have hereunto affixed my name as City Clerk and have caused the corporate seal of said Corporation to be hereto affixed this 21st day of February, 2017.

seal ________________________________Susan Schamaun, City Clerk/Treasurer

Port Authority 5. 3. Meeting Date: 02/21/2017  ITEM TITLE: Riverfront Development - Next StepsDEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:Based on the letter received from the developer pulling out from the development ofthe Riverfront development, the Wabasha Port Authority will be briefed on the current status and discuss the futureplans.

STAFF RECOMMENDATION:City Admin and CEDA have had some follow-up discussions and actions regarding the development.  An updatewill be given at the meeting.

Port Authority 5. 4. Meeting Date: 02/21/2017  ITEM TITLE: Rural Healthcare Taskforce UpdateDEPARTMENT: Administration

PURPOSE:

ITEM SUMMARY:In 2016, the Wabasha Port Authority voted Preserving Rural Healthcare as the number one priority.  Many actionshave been taken by this group in 2016 and those ideas/thoughts will be shared with the full Port Authority.  

ACTION REQUIRED:Motion to once again name Rural Healthcare as the #1 priority for the Wabasha Port Authority for 2017