HomeMy WebLinkAboutI.A - Agenda NotesHASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT
AUTHORITY
July 11, 2024 - 6:00 pm.
HASTINGS CITY COUNCIL CHAMBERS
I. Quorum
II. Minutes
Please see the attached HEDRA Meeting minutes from the June 13, 2024 Regular
Meeting and June 24, 2024 Closed Door Meeting for your review and approval.
III. Bills
June Bills
Levander Gillen Miller $1,973.00 213 Ramsey Street – Legal – Property Deeds
Electro Watchman $1,080.00 213 Ramsey Street – Security
Levander Gillen Miller $224.00 Legal – General Matters
Please see attached general ledger detail for further information.
IV. Business
A. Resolution 2024-09 – Termination of Purchase Agreement – River City
Investments LLC (Luke Siewert)
HEDRA is asked to adopt the attached resolution terminating the Purchase Agreement
with River City Investments LLC (Luke Siewert) for sale of the parking lot at the
northwest corner of 3rd and Tyler Streets. The Agreement was first executed on April
27, 2022 in conjunction with plans to develop 32 apartment units on the subject
property and land owned by River City directly to the west. The agreement has been
extended on two previous occasions and expires on August 1, 2024. Staff last met with
River City in March, 2024 and the project does not appear to be moving forward. River
City has been contacted about the termination and has not responded. Termination of
the agreement would not preclude execution of a future agreement to sell land but is in
recognition of the project not moving forward.
Action: Motion to approve Resolution 2024-09.
B. Resolution 2024-10: Decertification of TIF District No. 5 – Napa Auto
HEDRA is asked to adopt the attached resolution decertifying Tax Increment Finance
(TIF) District No. 5 – Napa Auto. In 2010 HEDRA entered into a TIF Agreement with
Linn Companies to pledge $128,000 of the TIF proceeds to assist with demolition of the
former Jiffy Gas Station and adjoining home as well as environmental cleanup of the
site. Napa Auto Parts was constructed shortly after. Our TIF obligation has concluded,
and we wish to terminate the TIF district.
Action: Motion to approve Resolution 2024-10.
V. Reports and Information
A. Local Affordable Housing Aid (LAHA) Update
Starting this year, Metro Area counties and cities will receive two installments of sales
tax dollars that are dedicated to constructing, maintaining, and providing affordable
housing options. Ahead of the joint Council and HEDRA meeting with the Dakota
County CDA, on July 22nd, Staff wanted to present the Commissioners with more
background on the program and what type of uses that the money can be allocated for.
The current scheduled for the two payments are on July 20th and December 26th. The
funding comes from a 0.25% sales tax and the amount distributed to each county and
city is determined by a “distribution factor”. The City’s distribution factor is 0.7257%
of the total revenue from that tax, which will yield an estimated amount of $200,000 per
distribution period. Funds must be spent by December 31 of the fourth year that the aid
was received.
These funds cannot be used for any type of development project, they must be spent on
qualifying projects or be transferred to a local housing trust fund. Qualifying projects
include the following:
Emergency rental assistance for households earning less than 80 percent of area
median income as determined by the United States Department of Housing and
Urban Development
Financial support to nonprofit affordable housing providers in their mission to
provide safe, dignified, affordable and supportive housing; and
Projects designed for the purpose of construction, acquisition, rehabilitation,
demolition or removal of structures, construction financing, permanent financing,
interest rate reduction, refinancing, and gap financing of housing to provide
affordable housing to households that have incomes which do not exceed:
o For homeownership projects, 115% of the greater of state or area median
income as determined by the United States Department of Housing and
Urban Development
o For rental housing projects, 80% of the greater of state or area median
income as determined by the United States Department of Housing and
Urban Development
Housing developed or rehabilitated with funds under this section must be affordable
to the local work force
If aid received under this program is used for demolition or removal of existing
structures, the cleared land must be used for the construction of housing to be owned or
rented by persons who meet the income limits described above.
If an aid recipient uses the aid on new construction or substantial rehabilitation of a
building containing more than four units, the loan recipient must construct, convert, or
otherwise adapt the building to include:
The greater of:
o At least one unit
o At least 5% of units that are accessible units, as defined by section 1002 of
the current State Building Code Accessibility Provisions for Dwellings Units
in Minnesota, and include at least one roll-in shower
The greater of
o At least one unit
o At least 5% of units that are sensory-accessible units that include:
Soundproofing between shared walls for first and second floor units
No florescent lighting in units and common areas
Low-fume paint
Low-chemical carpet
Low-chemical carpet glue in units and common areas
B. Development Updates
New Information:
United Heroes League – Stadium Seating and Locker Room – The City Council
approved plans the stadium seating and locker room facilities on June 17th.
Pleasant Drive Addition – Northwest Corner of Pleasant Drive and Co Rd 46 – City
Council approved on June 17th. Dakota County will subdivide the property into two lots for
future development of trail and highway improvements as well as a future site for housing.
Construction of items would be presented at a later date.
Rio Gran Express – 601 31st Street E - Plans have been submitted for the future trucking
garage. Planning Commission will review on July 8th with City Council review anticipated
on July 15th. Closing on sale from HEDRA to owners has been extended to December 31,
2024.
South Oaks 4th Addition – Model home permits have been submitted for the 35-lot single
family home subdivision near 31st Street and Century Drive.
Highway 55 Small Area Plan – City Council approved execution of a contract with HKGI
on July 1st. We anticipate holding the kickoff meeting shortly. The document would assist
with future planning of land at the western border of the city near Highway 55.
315 Pine Street - Thorwood – Staff met with owner on June 27th. Substantial demolition
work has occurred on the inside of the property and framing has commenced. Special Use
Permit for use of the first-floor area for a 25–30-person meeting space approved by City
Council.
Previous Information:
Mint Development - National Retailer – Pleasant & South Frontage – City Council
approved the Comprehensive Plan Amendment and Rezoning on June 3rd. Purchase and
Development Agreement executed, and earnest funds paid. Plat and Site Plan approval
must occur prior to the December 31st closing date.
Zoning Code Update – Our consultant Codametrics held listening sessions with the
Planning Commission and community members on June 6th and 7th and will begin drafting
the code. The one-year project will include public input and work with the Planning
Commission.
Storage Werks – Glendale and Spiral – Grading work has commenced on construction of
storage units similar to their other facilities on Lightbourn Court and Spiral Blvd.
Walden - Redwing Blvd & Michael Avenue – Awaiting revisions to deem the application
complete and schedule for Planning Commission review. Park and Recreation Commission
reviewed park dedication options in February for the 450-unit housing development
Augustine Property Development – Planning Committee of City Council reviewed
concept plan for development of 300 housing units. Site is being marketed for
development. No formal applications submitted. Site located at the western limits of the
City, north of 15th Street past Jacob Avenue.
Dakota County Solar – Building plans for ground level solar plans are currently under
review consistent with the variance granted by City Council in November, 2023.
Hastings Coop Creamery – Fire investigation has concluded, and site has been cleared for
cleanup. Staff is working with owners on cleanup plan. No further information on future
of business or site.
Current 33 Apartments – The first building is complete and is currently being leased 2nd
building is underway. Total of 211 apartments at 33rd and Vermillion.
Vermillion Acres – Modular units have arrived and are being assembled for
the 75-unit senior housing facility near County Rd 47 and Riverwood Drive.
Gregg Lowe – Auto Repair Garage- 3000 Lightbourn Court – The 6,000 s.f. building is
currently under construction.
Dakota County Law Enforcement Addition – Construction of the 13,000 s.f. Integrative
Health Unit is underway.
Suite Living - Senior Housing – Building plans have been submitted and the plat has been
recorded for the 32-unit senior housing facility at the southeast corner of 33rd Street and
Vermillion. The one-story project consists of both dependent and memory care units.
Hastings Theater – 1313-1325 South Frontage Rd – Building being converted into
multiple office\warehouse, restaurant, and entertainment spaces.
Shephard of the Valley - Townhomes – Staff has reviewed concept plans for
approximately 15 townhome units east of Shepard of the Valley Church located near 4th
Street and Whispering Lane. City Council approved a minor subdivision to split the church
land from the development site at the July 17th Meeting.
Heritage Ridge – Grading activities have commenced for the final addition of the 116-lot
single family residential development near General Sieben Drive and Northridge Drive.
City Council approved a one-year extension on the final phase of the project at the July 17th
meeting.
418 Vermillion Street – Dicks Barber – HEDRA purchased the property on May 30th. A
two-year lease has been executed to allow operation of the existing tenants. A blight study
is being conducted to determine TIF eligibility and we are reviewing a contract for potential
payments to tenants.
Green Mill – 909 Vermillion Street – Camegaran LLC’s franchise agreement with Green
Mill will discontinue and the restaurant will be closing at the end of June. The owner will
be seeking another restaurant for the space.
114 West 5th Street – As of April 27th, HEDRA is now the proud owner of the single-
family house across from the fire station.
Villas at Pleasant – More permits have been submitted for construction and work
continues on the first model home at the 32-unit subdivision near Northridge and Pleasant.
ATTACHMENTS
Agenda – July 11, 2024 Regular Meeting
Minutes – June 13, 2024, Regular Meeting
Minutes – June 24, Special Meeting – Closed Door
Bills – June 2024
Resolution 2024-09 – Termination of Siewert Agreement.
Resolution 2024-10 – Decertify NAPA TIF
Next Meeting: Monday, July 22, 2024 – 6:00pm – Special Joint Meeting with City Council
Thursday, August 8, 2024 – 6:00pm – Regular Meeting