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HomeMy WebLinkAboutI.A - Agenda NotesHASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY October 10, 2024 - 6:00 pm. HASTINGS CITY COUNCIL CHAMBERS I. Quorum II. Minutes Please see the attached HEDRA Meeting minutes from the September 12, 2024 Regular Meeting for your review and approval. III. Bills September Bills Bathrick’s Appliance $14,000.00 213 Ramsey St – Air Conditioner Replacement\HVAC Mariah Stone $11,142.50 Block 28 – Residential Relocation – 418 Vermillion Melecio Properties $2,065.67 Façade Improvement Grant – 101 East 2nd St M Judge Electric $1,305.00 213 Ramsey St – Air Conditioner Replacement\HVAC Fleet Farm $9.18 Makers Market - Supplies Please see attached general ledger detail for further information. IV. Business A. Resolution 2024-14: Approve Dakota County CDA to Administer LAHA Funds In July, representatives from the Dakota County Community Development Agency spoke to a joint group of Hastings City Council members and HEDRA Commissioners to discuss the Local Affordable Housing Aid (LAHA) funds and potential collaboration opportunities. In 2024, the City will receive $114,387.44 in LAHA funding, which must be committed within three years. The CDA is requesting to collaborate with the City to use its LAHA funding to support two programs, the Home Improvement Loan Program and the Radon Mitigation Grant Program. The Home Improvement Loan Program provides up to $35,000 in a 0% deferred loan to single-family homeowners earning no more than 80% of the Area Median Income (AMI). The Radon Mitigation Grant Program would provide free radon tasting to clients of the Home Improvement Loan Program and would provide grant funding for radon mitigation to those homeowners with incomes at or below 80% AMI. The CDA is asking for a minimum funding commitment of three years and for direction of how the funding will be split between the two programs. Staff proposes a percentage based split committing 67% towards the Home Improvement Loan Program and 33% toward the Radon Mitigation Grant Program. Action(s): Determine the percentage of funding support for each program Motion to approve Resolution 2024-14 Approving the Dakota County Community Development Agency to administer City Local Affordable Housing Aid funds. Please see the attached materials for further information B. Resolution 2024-15: Façade Improvement Grant – Masonic Block Parking Lot HEDRA has received an application from Barb Hollenbeck, Hafstad Real Estate LLC, and David and Stacy Lofgren who represent the property at PID 193215014064, known as the Masonic Block Parking Lot The full scope of the project includes the following: - Fill and repair existing pothole - Overlay and repair exiting parking lot - Restripe parking spaces - Remove existing flower bed The project has eligible costs totaling $11,500.00; 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 2024-15 approving a façade improvement program grant award to Barb Hollenbeck, Hafstad Real Estate LLC, and David & Stacy Lofgren for the maintenance of the Masonic Block Parking Lot in the amount of $3,833.33. Please see the attached application for further information C. Resolution 2024-16: Façade Improvement Grant – 106 2nd St E – Quarry Taphouse HEDRA has received an application from Sara and Randy Stenger who represent the property at 106 2nd Street East The full scope of the project includes the following: - Removing the existing damaged stucco - Install new metal lath and expansion joints over the brick wall - Apply new cement stucco finish over the full wall The owners recognize that the replacement of the stucco will result in the loss of the existing mural. They plan to have a new mural painted in 2025. The project has eligible costs totaling $44,950.00; 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 2024-16 approving a façade improvement program grant award to Sara and Randy Stenger for the exterior maintenance of 106 2nd Street East in the amount of $5,000.00, pending approval by the Historic Preservation Commission. Please see the attached application for further information D. Resolution 2024-17: Authorize Exclusive Land Sale Negotiations – River City Properties (Siewert) 317 East 3rd Street Background At the July 11, 2024 meeting, the Commission extended the expiration date for a Purchase Agreement between River City Investments (Luke Siewert) and HEDRA until October 1, 2024 to allow River City to develop milestones for project completion. The Agreement involves the sale of a 0.21-acre parcel located at the northwest corner of 3rd and Tyler Streets that is currently used as a parking lot. The HEDRA parcel would be combined with an adjoining property owned by River City for construction of a 32-unit apartment building. River City has provided the following project milestones and dates for project completion:  Finalizing estimates with contractor/finalize Proforma. End of the year  Review financials with Lender – February 2025  Connect with city staff regarding TIF if there is a gap in Financing - Now until start date  Meet with Xcel on site to confirm the current design is still the plan - This fall  Send out for FINAL pricing February – March 2025  Obtain Commitment from Lender April – May 2025  Demo property and remove asbestos Spring 2025  Apply for Building permit Late Spring 2025  Begin Construction- June/July 2025 Staff Analysis and Recommendation Given the lack of a proforma, uncertainty of final building design, and possible request of TIF assistance staff does not support amending the existing agreement. However, staff strongly supports continued meetings to review project feasibility and proposes adoption of the attached Resolution which would grant exclusive rights to River City until October 31, 2025 and establish certain terms for consideration of a new agreement. History Consideration of the project first began nearly four years ago. The following provides a summary of City actions. A complete timeline of City actions and communication with River City since the July 10th HEDRA meeting is also attached:  November 12, 2020 - HEDRA first reviewed the potential concept plan from River City. After several meetings the Commission agreed to sell the land for $1 (estimated value at that time was $55,800).  May 13, 2021 HEDRA authorized signature of an agreement to sell the land subject to closing by August 1, 2021. Date for closing has been extended on six previous occasions, expiring on October 1, 2024.  July 16, 2021 City Council approved submittal of a $250,000 grant to Dakota County CDA to assist in site development. Grant approved by CDA. Grant originally expired on December 31, 2022, one year amendment granted from CDA. Grant has now expired.  October 4, 2021 City Council approval of land use applications for construction. Approvals were extended three additional time and expired on August 1, 2024. Recommended Action: Adopt Resolution No. 2024-17 Authorizing Exclusive Land Negotiations. Please see the attached Resolution, Project Timeline, and bank letter 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 has reviewed the ATM lease agreement and terms appear favorable. We are awaiting final signature of the agreement from the current owners. Current 33 Apartments – The final building has been completed and is currently available for rent. Total of 211 apartments at 33rd and Vermillion. Tyler Street Landing – Luke Siewert - HEDRA will consider adopting a resolution providing for exclusive property rights until October 31, 2025. Highway 55 Small Area Plan – HKGI will meet with the City Council and Planning Commission on October 7th to discuss preliminary thoughts. 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. Zoning Code Update – Staff is reviewing proposed Zoning Districts and Uses. The Planning Commission reviewed the Zoning Ordinance Directions Report at the September 3rd meeting. The one-year project will include public input and work with the Planning Commission. Previous Information: 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. South Oaks 4th Addition – Home are under construction for the 35-lot single family home subdivision near 31st Street and Century Drive. 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. 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. 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. 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 – October 10, 2024 Regular Meeting  Minutes – September 12, 2024, Regular Meeting  Bills – September 2024  Resolution 2024-14 – Approve Dakota County CDA to Administer LAHA Funds  LAHA Collaboration Memo  2024 Expanded Home Improvement Loan Program  2024 Radon Mitigation program  Resolution 2024-15 – Façade Improvement Grant – Masonic Block Parking Lot  Masonic Block Parking Lot Façade Improvement Program Application and Quote  Resolution 2024-16 – Façade Improvement Grant – 106 2nd St E – Quarry Taphouse  106 2nd St E – Façade Improvement Program Application and Quote  Resolution 2024-17 – Authorizing Exclusive Land Negotiations – River City Properties  Project Timeline – River City  Bank Letter – River City Next Meeting: Thursday, November 14, 2024 – 6:00pm – Regular Meeting