The Austin Port Authority could have ownership of a “new building addition” for The Hormel Institute.

A memo from port authority Executive Director Jim Hurm to the Port Authority, Mayor Tom Stiehm and City Council members states, “This project would include infrastructure modifications and ownership of the new building addition by the Port Authority.”

The memo explains that the city of Austin, through the port authority, plans on requesting approximately $13.5 million through the Minnesota Legislature’s 2012 bonding bill for “necessary public facilities as well as for the building itself.”

The port authority is an entity of the city of Austin. It is able to make decisions independently without the city’s approval, but must seek the City Council’s approval when buying or selling land, according to council member Marian Clennon.

The port authority’s role in the expansion was partially laid out in the city of Austin’s five-year capital improvement plan. The plan says public infrastructure must be reconfigured in the area of the expansion.

“The estimated cost of the project is $1 million and would be paid for via grant requests ($800,000) and through port authority fund balance ($200,000),” the capital improvement plan states.

However, Clennon said Hurm’s June 22 memo is the first she’s heard of the city or port authoritybecoming involved in owning the Institute’s new building.

“I’ve been asking questions since last October or November and was told this (expansion project) was not going to be a city issue, which obviously right now is not true,” Clennon said. “We were only told that we were going to pay for the infrastructure — the streets, the sewer, that kind of information. We were never told we were going to own the building.

“This whole project has been a big mystery,” she added

Clennon said she feels deceived by the information she has received in recent months, but that she supports the institute.

“I am a huge supporter of the institute,” she said. “A family member is battling breast cancer, so their work is important to me. I don’t like how this project is being handled on their behalf.”

Hurm stressed the importance of the port authorityowning the addition in his memo.

“The concept of the port authoritybeing responsible for building and owning this new addition, accompanied by a long-term lease with The Hormel Institute and The Hormel Foundation, is essential for this project to become a reality,” the memo states.

In early May, Community Development Director Craig Hoium said the city had not been actively or financially involved in the project or its acquisitions.

“It’s a private development,” he said in May. “If they have questions about zoning or infrastructure, we answer those questions to the best of our ability, just like we would for any other development.”

Gail Dennison, director of public relations and development for the Hormel Institute, would not comment further than a e-mailed statement on the details of the port authorityor city’s involvement in the project.

“Regarding a possible expansion, the Austin port authorityand Austin City Council are looking at the 2012 bonding bill as a possible source of funding,” Dennison said in an e-mail Friday.

Leaning Tree LLC has purchased 23 properties since September 2010 to “have some real estate available for future possibilities” for the institute, said Steve Rizzi, secretary for the Hormel Foundation and Leaning Tree, in May. Rizzi could not be reached Friday afternoon.

Rizzi, also with the Austin law firm Adams Rizzi Sween, said at the time the potential for the property is undetermined, but it could be green space, low-density housing or multi-family housing. Rizzi also didn’t rule out potential institute expansion.

“It could be used for other community purposes, or the potential for other entities to bring scientific research to Austin, and develop facilities in that area,” he added.

The properties, on 15th and 16th Avenue NE, directly east of the institute, sold for an average of $53,000, and total of more than $1.2 million.

The institute tripled its size and doubled its number of faculty and staff in 2008, but Rizzi said anything new is still long-range and there is no timeline.

Hurm’s memo said the Minnesota House and Senate Capital Investment Committees will likely come to Austin later this summer for a tour and presentation of the proposed expansion.

Hurm, Hoium and Stiehm were unavailable for comment. Council members Steve King and Janet Anderson did not wish to comment before reading the memo.