HomeMy WebLinkAboutI.A - Agenda NotesHASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT
AUTHORITY
March 13, 2025 - 6:00 pm.
HASTINGS CITY COUNCIL CHAMBERS
I. Quorum
II. Minutes
Please see the attached HEDRA Meeting minutes from the January 9, 2025 Regular
Meeting for your review and approval.
III. Bills
February Bills
Hoisington Koegler Group $4,790.00 Hwy 55 Small Area Plan
SRF Consulting $1,683.48 Block 28 – 418 Vermillion Relocation
Midwest Electric $250.00 Block 28 – 400 Vermillion St Replace Outside Light
Precision Landscaping $215.00 Block 28 – 400 Vermillion St Snow and Ice - Jan
Signarama $83.13 Admin – Council Chambers Nameplate
Levander Gillen Miller $44.00 Block 28 - Legal
Levander Gillen Miller $16.00 Admin – Legal General
January Bills
Econ Dev Assoc of MN $545.00 Admin – Annual Subscription Fee
Econ Dev Assoc of MN $390.00 Admin - Conference – Hinzman and Menke
SmartSheet $145.00 Admin – Annual Subscription Fee
Please see attached general ledger detail for further information.
IV. Business
A. Block 28 Gateway – Vermillion Corridor Vision
With the acquisition of 400 Vermillion Street, HEDRA has secured nearly 90 percent of Block
28 and can proceed with redevelopment of the Gateway Project. Redevelopment of the block
has been guided by the Vermillion Street Corridor Study completed in 2018.
We want to ensure that we are correctly sharing HEDRA’s vision for redevelopment. The
Vermillion Street Corridor Plan – Model Site Development Outlines the following for
redevelopment of the block:
Uses. Mixed-use buildings with commercial on the ground floor with office and
residential above.
Parking. Buildings to have a shared parking lot in the rear which is accessed from 5th
and Eddy Streets and include landscaped islands and screening
Building Setback. Buildings to be located near street edges and accommodate
sidewalks.
Plaza Space. Space between buildings to be used as pedestrian walk and plaza space
to accommodate outdoor dining or event space.
Building Height. 4th and Vermillion Building shown as four stories (1st floor
commercial with three stories of residential development). 5th and Vermillion Building
shown as three stories (1st floor commercial with offices above)
Other Considerations. Are there other items or priorities that are important to the
board.
Action: Review the Vermillion Street Corridor’s vision for development of Block 28 and
provide any modifications. Please see the Vermilion Street Corridor Model Site Plan for
further information.
B. Façade Improvement Grant Language
The current process for awarding façade improvement grants has the HEDRA board
approving a specific amount to reimburse based on supplied quotes from the applicant. When
it comes time for the applicants to submit the paid invoice to collect their reimbursement,
there have been times where the final invoice was higher than what was originally quote. To
amend this, it currently requires another review/approval by the HEDRA board, which can
delay reimbursement by a month. To better streamline the process, it was asked if resolutions
could be written that allow for flexibility with payments when those invoice discrepancies
occur. After discussing with the City Attorney, there does not appear to be any issues in
structuring the resolution differently.
Staff is suggesting that instead of specifying the reimbursement amount, it will say that the
grant is in the amount of “the lesser amount of one third of the total eligible project cost or
$5,000” This change still requires Staff to review the initial application for the eligible
expenses and requires Staff to confirm that the final invoice is still within the scope of the
original quote and that the added expenses are also eligible.
Action: Approve the change in the verbiage for Façade Improvement Program resolutions
from specifying the dollar amount rewarded to one-third of the eligible project cost. Please
see the attached model resolution for further information.
C. Façade Improvement Program Changes
The Façade Improvement Program was started in 2022, designed to provide grant
support to businesses within Downtown and along Vermillion Street to assist in
repairing their property exteriors. The program was well received, depleting the entire
$50,000 allocation in 2022. In 2023 and 2024, utilization decreased to under 50% for
both years.
To ensure that the funds are being fully disbursed annually, Staff proposes several
changes to the program that will increase utilization.
1. Remove the location restrictions currently in place, making any business within
the City eligible for funds
2. Include parking lot repair as an eligible expense
3. Include certain interior projects as eligible (painting/remodeling customer facing
spaces, HVAC repair/replacement)
Staff is seeking input and guidance surrounding the proposed changes to the program.
Action: Discuss and provide guidance to Staff on the proposed changes to the Façade
Improvement Program. Please see the current Façade Improvement Program Guide
for further information.
D. Authorize Signature: Legal Services Agreement – Campbell Knutson
Andrea McDowell Poehler of Campbell Knutson has provided supplemental legal
assistance for tax increment financing and development projects since 2017. The
current contract has expired, and staff seeks execution of a new two-year agreement.
Action: Authorize signature of the attached legal services agreement.
E. Resolution 2025-03: Façade Improvement Program Grant for 411 Vermillion St
HEDRA has received an application from Rajesh Gandhi who represents the property
at 411 Vermillion Street
The full scope of the project includes the following:
- Remove existing doorway to 411 Vermillion St
- Install proper hardware
- Install new door
The project has eligible costs totaling $5,425.00; 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 2025-03 approving a façade improvement
program grant award to Rajesh Gandhi for the replacement of the door to 411
Vermillion Street in the amount of $1,808.33. Note, two potential resolutions have
been prepared based upon action on façade improvement grant changes to be
discussed earlier in the meeting. Please see the attached application for further
information
F. Authorize Signature: Right of First Refusal – Southwest Corner of Pleasant Dr
and South Frontage Rd
Joe Schnell of Stretch Holdings LLC seeks signature of the attached Right of First
Refusal for the 3.94-acre HEDRA owned property located at the southwest corner of
Pleasant Drive and South Frontage Rd. Stretch plans to conduct due diligence in
conjunction with a potential offer to purchase the property and seeks the ability to
counter any future purchase offers. HEDRA executed a Purchase Agreement with Mint
Development for the same parcels last year which was terminated.
The Agreement is valid for one year and grants the following:
HEDRA must notify Stretch if an offer is received for the property
Stretch is allowed five business days to advise HEDRA of its intention to
purchase the property
Action: Authorize Signature of the attached Right of First Refusal Agreement.
V. Reports and Information
A. Open To Business 4th Quarter Report
Open to Business provided their year-end report. In 2024, OTB met with seven
Hastings’ businesses and four Hastings residents. Open to Business provides free
consulting services to small business owners and can provide lending services to help
bridge gaps that may not be able to be met by traditional lenders.
B. HEDRA Strategic Plan Update
The 2024-2025 Strategic Plan was adopted by the Board in May, 2024. Staff will
present an update on plan accomplishments at the meeting.
Action: Review the attached strategic plan update and provide any direction to staff.
C. Development Updates
New Information:
Highway 55 Small Area Plan – The final draft plan has been posted on the website along
with an interactive map for comments. The Planning Commission will review at their
March 10th meeting, with City Council review anticipated on March 17th. The document
would assist with future planning of land at the western border of the city near Highway 55.
National Guard Armory – Parking and Stormwater – Construction has begun on the
project. City Council approved the site plan at the January 21st meeting for stormwater and
parking lot improvements.
Zoning Code Update – Staff met with the Planning Commission on February 10th to
review the first phase of changes. The consultant is working on the final phase of changes.
Staff will review in March with Planning Commission review likely in April.
Walden - Redwing Blvd & Michael Avenue – Developer anticipates submittal of land use
applications in Spring\Summer. 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
418 Vermillion Street – Dicks Barber – The last residential unit should be vacant in the
next week and then building will be completely vacant. Staff has been meeting with
potential developers to determine interest and development questions in anticipation of an
invitation to developers for plans. 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.
1292 North Frontage Road – Carbones Pizza\Stacy’s Stars – PFAS Plant – The City
Council has executed a purchase agreement for the property for construction of the Central
PFAS Plant. Staff along with SRF Consultants is working with the tenants Carbone’s Pizza
and Stacy’s Stars dance studio to find alternative locations. Both are interested in
remaining in business in Hastings.
Suite Living Senior Apartments – 33rd Street and Vermillion – Developer plans on
beginning the project later this year. Approval for the 32-unit project was granted by the
City Council in 2022.
Previous Information:
Broadway Pizza – The restaurant will be opening in the former Green Mill restaurant
space in Schoolhouse Square.
Augustine Property Noor Development – Noor Development has cancelled their
purchase agreement for the property.
400 Vermillion Street Acquisition - HEDRA purchased the property on November 5th.
Sunset West 3rd Addition – Plans for development of 41 single family homes northwest of
15th Street and O’Connell Drive.
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.
South Oaks 4th Addition – Homes 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 – Site is currently under
construction.
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.
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.
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 –March 13, 2025, Regular Meeting
Minutes – January 9, 2025, Regular Meeting
Bills – January and February 2025
Proposed Façade Improvement Program resolution language
Existing Façade Improvement Program information and application
Legal Services Agreement – Campbell Knutson
Resolution 2025-03: Façade Improvement Grant for 411 Vermillion St
Façade Improvement Grant Application and Quote – 411 Vermillion St
Right of First Refusal Agreement – Southwest Corner of Pleasant and South Frontage
Rd
Vermillion Street Corridor Plan
Open To Business 4th Quarter Report
HEDRA Strategic Plan Update
Next Meeting: Thursday, April 10, 2025 – 6:00pm – Regular Meeting
