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HomeMy WebLinkAboutI.A - Agenda NotesHASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY September 12, 2024 - 6:00 pm. HASTINGS CITY COUNCIL CHAMBERS I. Quorum II. Minutes Please see the attached HEDRA Meeting minutes from the August 8, 2024 Regular Meeting and August 27, 2024 Special Meeting for your review and approval. III. Bills August Bills Stantec Consulting Services $841.50 Confluence – Environmental – Project Completion SRF Consulting Group $692.19 Block 28 – Relocation Payment – Apartment 2 Levander Gillen Miller $671.00 Legal Services Jupiter Peak Lodging $560.99 Façade Improvement Grant – 213 Sibley St Verizon Wireless $41.23 Admin – Cell Phone Payment Please see attached general ledger detail for further information. IV. Business A. 213 Ramsey Street Lease Background: The City began leasing out the property to Method Organization Company, an estate sales and property clean-out business, in April of 2024. The original lease was for two months so that Method Organization could have an interim space until their permanent property became available. Shortly after, the owner requested an extension to the lease, which the City approved for an additional six months, expiring on November 30th, 2024. Since that time, the Hastings Prescott Arts Council approached the City expressing interest in leasing the space when the current lease expired. Staff explained that with multiple interested parties that it would be up to the HEDRA Commissioners to determine which party should be selected for continued lease negotiations. Below are descriptions of what each tenant plans to use the property for should they be chosen. Method Organization: Method Organization proposes continued use of the space as the storage, sorting, and staging for estate sales events. These events are typically held on the weekends and vary in their frequency, depending on whether the estate wants sales at the home or at an off-site location (213 Ramsey St). Method Organization’s occupancy of the building ensures that there is a secure presence at the site and bringing additional foot traffic to the area when estate sales events occur. Hastings Prescott Arts Council: HPAC has proposed several uses for the space including hosting visual arts education events, providing studio space to artists, and hosting a show gallery for local artists. The intent is to serve as a business incubator for artists and to create a gathering space for the community. HPAC’s occupancy of the building also ensures that there is a secure presence at the site and would also bring additional foot traffic to the area when classes and other events occur. A more in-depth proposal can be found in the attachments along with a letter of support from the Hastings Arts and Culture Commission. Commissioner Considerations: To aide in the Commission’s decision, Staff wanted to provide a few items to consider; - Rental price: If the Commission were to decide in favor of Method Organization, their rental rate would likely stay the same at $700 per month. Should HPAC be chosen, the rental rate would be up for negotiation, however it has been shared that it would have to be less than $700 per month given their limited budget as a nonprofit but ensured that that they would be able to pay enough to cover the cost of utilities and maintenance. Whatever party is chosen, Staff will ensure that rent paid will at the minimum cover the carrying costs on the property. - Carrying costs: The main monthly costs that the City has on this property are utility fees. Given that the property sat vacant for over a year, the average utility bill is not representative of what full-time occupant would pay. In addition, the City recently spent $14,000 on HVAC improvements to the property, installing a new AC unit and replacing the furnace. The economic lifespan of HVAC equipment is roughly 15 years, so the rental price will take the mechanical and property maintenance costs into consideration. - Community impact: We ask that the Commission consider what the perceived impacts that each organization would bring to the property, and community at large. Action: Decide which organization to lease 213 Ramsey Street to, allowing Staff to begin negotiations on new lease terms. B. Resolution 2024-09 - Façade Improvement Program Grant – 212 2nd St E HEDRA has received an application from Barbara Hollenbeck who represents the property at 212 2nd Street East The full scope includes the following: - Rebuilding the upper 4 feet of the building’s parapet - Demolition and replacement of brick - Repainting brick after reconstruction The project has eligible costs totaling $43,800.00; Under the program, the grant award is based on matching funds of $2 of private investment for every $1 of grant funding. Action: Motion to approve Resolution 2024-09 approving a façade improvement program grant award to Barbara Hollenbeck for the exterior maintenance of 212 2nd Street East in the amount of $5,000.00. Please see the attached application for further information C. Resolution 2024-10 - Façade Improvement Program Grant – 221 Sibley St HEDRA has received an application from Levi Hafstad who represents the property at 221 Sibley Street The full scope includes the following: - Remove the existing, damaged, five windows on the rear building - Replace sash and windows - Paint or stain replacement stash kits The project has eligible costs totaling $14,195.00; Under the program, the grant award is based on matching funds of $2 of private investment for every $1 of grant funding. Action: Motion to approve Resolution 2024-10 approving a façade improvement program grant award to Levi Hafstad for the replacement of windows at 221 Sibley Street in the amount of $4,731.67. Please see the attached application for further information D. Resolution: 2024-11: Authorize 2025 HRA Levy As part of the 2025 budget, City Staff has prepared the proposed 2025 HRA Levy. Staff is recommending the full HRA tax levy which would generate approximately $537,640 in revenue for HEDRA. Those dollars would be utilized to complete projects and goals identified within the current HEDRA Strategic Plan. Below is a summary of HEDRA Budget Priorities that have been reviewed by both the City Administrator and Finance Committee of City Council: ACTION – Motion to adopt Resolution 2024-11 Approving Proposed 2025 HRA Tax Levy. Please see attached Resolution for further information V. Reports and Information A. Development Updates New Information: 400 Vermillion Street Acquisition - HEDRA authorized acquisition of the former Wells Fargo\EDS Building on August 27th. Staff is awaiting signature of the purchase agreement by the property owners and review of the ATM lease agreement. Tyler Street Landing – Luke Siewert - At the July 11th meeting HEDRA extended the purchase agreement until October 1st to allow for an amended agreement to include achievable and reasonable milestones. Staff is awaiting further information from the developer on potential plan changes and schedule in order to draft an amendment. Rio Gran Express – 601 31st Street E - City Council approved the Site Plan for a trucking garage on July 15th. Building plans have been submitted and are currently under review. Property closing is expected within the next month. Highway 55 Small Area Plan – HKGI has prepared a market analysis for development and existing conditions for the property. The document would assist with future planning of land at the western border of the city near Highway 55. South Oaks 4th Addition – The first home is under construction for the 35-lot single family home subdivision near 31st Street and Century Drive. Zoning Code Update – The Planning Commission reviewed the Zoning Ordinance Directions Report at the September 3rd meeting. Specific zoning changes are expected in the next month or two. The one-year project will include public input and work with the Planning Commission. Storage Werks – Glendale and Spiral – The first building has been completed for the storage unit site. Vermillion Acres – Meeting held with builder to review timeline and schedule. Builders plan on pouring a slab for the stick-built portion of the site shortly and additional modular units would be moved in later this fall. Completion of project by May, 2025 is anticipated 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 has received a certificate of occupancy and is finalizing its landscaping. Previous Information: United Heroes League – Stadium Seating and Locker Room – Building plans for the facilities are currently under review by the Building Department. 315 Pine Street - Thorwood – Monthly meetings have been established between the Building Official and owner to ensure timely completion. 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. 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. 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. 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. Dakota County Law Enforcement Addition – Construction of the 13,000 s.f. Integrative Health Unit is underway. 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. 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 – September 12, 2024 Regular Meeting  Minutes – August 8, 2024, Regular Meeting  Minutes – August 27, Special Joint Meeting  Bills – August 2024  HPAC Proposal to Lease 213 Ramsey Street  Letter of Support from Hastings Arts and Culture Commission  Resolution 2024-09 – Façade Improvement Grant – 212 2nd Street E  Façade Improvement Program Grant Application and Quote – 212 2nd Street E  Resolution 2024-10 – Façade Improvement Grant – 221 Sibley Street  Façade Improvement Program Grant Application and Quote – 221 Sibley Street  Resolution 2024-11 – Authorize 2025 HRA Levy Next Meeting: Thursday, October 10, 2024 – 6:00pm – Regular Meeting