The Koochiching Economic Development Authority Board Wednesday briefly touched on the city of International Falls’ plan to annex the foreign trade zone.
Board Chairman Wade Pavleck said he introduced the topic because it had previously been addressed during KEDA meetings and thought it fair to allow the opportunity for comment on the city’s recent proposal.
“I don’t have a lot to say. The county board certainly has made its position clear,” Pavleck said.
Board member Allen Rasmussen clarified the history of the competing annexation situation and, when told the case was going before an administrative law judge, asked if an appeal was possible. He noted that from his experience on other boards, a law judge was sometimes overruled on appeal.
“That’s a very good question. I don’t know for sure,” Pavleck responded. “I guess we’re going to find out. It won’t be without some controversy.”
Ranier resident Arden Barnes said, “I think you should explain to Allen that by a very tricky maneuver of (Falls city attorney) Joe Boyle or somebody, they picked up a piece of private property east of the tracks which was not part of the trade zone,” said Ranier resident Arden Barnes.
Board member Gail Rognerud explained that the property east of the railroad tracks is owned by two private landowners, both of whom were notified of the annexation proposal and “did not have any problem with it.”
After the KEDA meeting, Boyle told The Daily Journal that the private property owners had been notified and were accepting of the proposal. He further clarified that part of the property had once been involved in a land-swap between the KEDA and the property owner, so that the FTZ was on one side of the railroad tracks and the private property on the other.
The property in question is separated from the east side of the FTZ by the railroad tracks. The proposed Falls annexation area extends to cover the section that includes the east corner of the FTZ and remaining private and Boise Inc. land.
Rognerud also said that the city’s plan did describe annexing land that could be used to build a road to the FTZ in the future.
International Falls voted to pursue annexing the foreign trade zone and nearby land for a road to the zone. The Falls plan competes for part of the area included in a Ranier pact with Koochiching County that would annex several unincorporated additions near Ranier, as well as the FTZ. The entire matter is currently pending the conclusion of a hearing by the state Office of Administrative Hearings law judge.
KEDA is the grantee of the FTZ and manages the area, which is owned jointly by Koochiching County and International Falls.
Paul Nevanen, KEDA director, included in his report information from two conferences that he recently attended.
In a summary of what he learned at the Minnesota Development Conference, he noted that among the recommendations for economic development officials, “Nobody wants to come to an area where there is conflict between the city and county or township.”
He also said that competition is steep between cities for new commerce, and that cities hoping to compete should: Work together as a region for smaller-population areas, have data readily available for site selectors, have an up-to-date Web site that will drive clients to an area, note what it is that allows the community to stand apart from others, and be responsive and follow through with site selectors.
Rasmussen added that “minor little things become important” during the process and “You have to have someone that responds. Personal contact is extremely important.”
Nevanen also reported on the FTZ Conference in Dallas that he attended. He brought particular focus to the alternative site framework program, which he said would “provide greater flexibility to designate and manage FTZ sites.” This program would eliminate the need to swap equal acreage when doing minor boundary modifications and would greatly shorten that modification process.
The board voted to submit an application to the statewide program and get in the queue to become involved. Nevanen noted that this would give KEDA greater flexibility in locating sites that needed specific consideration.
Also during the trip, Nevanen reported that he visited several sites in Alliance and Terrel, Texas, to see operations there. He played for the board a marketing video created for the Indianapolis FTZ that detailed key informational points about the zones that its marketers should know; such as current usage and tax rules that would save tenants money.
Koochiching Economic Development Authority News Notes
• The Koochiching Economic Development Authority Wednesday heard an update on the ongoing Renewable Energy Clean Air Project. KEDA Director Paul Nevanen reported that the project was recently awarded nearly $1 million of additional federal funding.
Nevanen said that he and representatives of the board have been invited to tour the similar Westinghouse Plasma facility in Pittsburgh. Plans to tour the facility in November are being made.
• Jenny Dougherty of the Small Business Development Center gave an update on the SBDC. She said that she has been very busy with clients and developing relationships with lending institutions. She said that she has expanded marketing of the center to nearby areas, generating a more diverse customer base.
She also told the board that she is teaching monthly classes during lunch time on how to start a business. She said she will also give the same presentation to clients of the SBDC if needed. She noted that she is also learning software that will increase her capability to forecast financial information for a business.
• The board had a telephone conference with the board’s auditors, Walker, Giroux & Hahne. Representatives of the firm informed the board that their annual profits exceeded expenses by $15,484. Total liabilities and cash fund balances total $379,155.
Deficiencies noted include segregation of duties among accounting staff and lack of control over the financial reporting process. Because of the small number of staff members at KEDA, the audit firm said that these were standard issues that could not easily be resolved. They also recommended that KEDA have an anti-fraud policy, increase their policies and procedures and stop paying late fees to vendors by authorizing automatic bill payment for recurring items.
• Nevanen informed the board that he was reluctant to finish a 2010 budget before a joint session of the Falls City Council and Koochiching County Board, which was suggested as a time for discussing the future of the KEDA. The joint session had been previously rescheduled, and no date has been set for the meeting. Nevanen said that the KEDA would be fine with a decrease in funds from the city and county, but would like a recommendation from either the joint meeting or a budget committee on how to plan for the next year.
• Nevanen reported that two representatives of Berger Peat Moss were in Big Falls to tour the Pine Island bog site. “They are focusing dollars and attention here, so that’s good news,” Nevanen said. Berger plans to do work at the site this winter, including ditching and creating sediment ponds, according to Nevanen’s report.
