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HomeMy WebLinkAboutHEDRA Minutes - 2025.06.12-DRAFTHEDRA HASTINGS ECONOMIC DEVELOPMENT and REDEVELOPMENT AUTHORITY The Hastings Economic Development and Redevelopment Authority of the City of Hastings, Minnesota met in a regular meeting on Thursday, June 12th, 2025 at 6:00 p.m. at Hastings City Hall. HEDRA Commissioners Present: Anderson, Goblirsch, Horsch, Pemble and Haus (remote). HEDRA Commissioners Absent: Carter and Johnson Staff Present: Community Development Director John Hinzman Economic Development Coordinator Alex Menke I. Quorum A quorum was established, and the meeting was called to order by President Anderson at 6:00 PM with five members present. II. Minutes President Anderson asked if there were any additions or corrections to the minutes of the regular meeting of May 8, 2025. Minutes were approved as presented. III. Bills Hinzman summarized the bills for the previous month including payments for maintenance associated with Block 28. Commissioner Horsch motioned to approve, seconded by Commissioner Pemble. Ayes 5; Nays 0. Motion approved. IV. Business A. Authorize Signature: Sales Listing Agreement – Hastings Industrial Park – Gaughan Companies Menke provided an overview of the process of working with Gaughan Companies to market the shovel ready site in the industrial park. He explained that the agreement is for one year of marketing and would also look at other uses for the site. Menke explained the details of two elements of the agreement that have been in discussion and the commissioners had no comment about the terms of the agreement. Lucas (Luke) Gaughan, Timothy (Tim) Gaughan, and Savannah Gaughan provided background on the company. Mr. Lucas Gaughan discussed his connection to Hastings and his company’s experience in the surrounding markets. He described the two main avenues they would pursue for the site. He explained that they would start by reaching out and marketing the land to industrial developers. They would also work with the city to rezone the area as a planned unit development (PUD) and work with residential based developers, with a specific interest in “for-rent townhomes”. Then he presented marketing materials of the site. Commissioner Horsch asked about the city’s right to refusal and the duel marking of both industrial and residential. Mr. Lucas Gaughan answered that they could add or adjust the language in the agreement to better align with the city’s interest if need be. He explained that their main focus will be on finding an industrial developer, but that they can also pursue a residential townhome developer if that is what the city is more interested in or if there is no industrial interest. He also addressed concerns about the transportation restrictions of Hastings. Commissioner Pemble commented on the future construction of the Veterans Home north of the site. He then asked about what makes Gaughan Companies different from the other times the city has attempted to sell and develop this site. Mr. Lucas Gaughan answered that he believes that they have a different point of view, network and skill set. Mr. Timothy Gaughan also noted the company’s track record and the current industrial market. President Anderson asked about the history of the site and past marking attempts. Hinzman answered that the industrial park has been marketed since the 1980s and the shovel ready site has been the focus for the past eight to ten years. It has been continuously marketed as industrial. Commissioner Horsch motioned to authorize signature of the contract subject to assurances that the Board would not be liable for commission payment if a land sale was not approved. Commissioner Goblirsch seconded the motion. Ayes 5; Nays 0. Motion approved. B. Authorize Execution of Contract: Block 28 Environmental Assessment Menke provided information regarding the evaluation of Block 28 for any environmental contamination. This includes executing a phase one environmental site assessment, pre- demolition hazardous building materials inspection, and a preliminary geotechnical evaluation. After the bidding process, the project received four bids. After staff reviewed, they recommended entering into an agreement with GZA GeoEnvironmental, Inc., due to their in depth geotechnical proposal. Staff also plans to apply for an Environmental Investigation Redevelopment Incentive Grant thought Dakota County CDA. President Anderson brought up concerns about GZA’s pricing for their pre-demolition hazardous building materials inspection in comparison to the other quoted costs. Menke responded that he is unsure why GZA is cheaper, but the proposals all looked similar, and he can take a closer look if needed. GZA had a more in depth geotechnical proposal which corelated with its higher cost. Commissioner Goblirsch asked about the CDA’s grant amount and process. Menke responded that it covers phase one environmental site assessment, pre-demolition hazardous building materials inspection, and “some geotechnical”, but needs to follow up to understand if this will be covered as well. President Anderson asked if this is budgeted for within the budget. Hinzman responded that there is room in the budget for block 28 and in the consultant categories to pay the total amount regardless of the CDA grant. Commissioner Pemble motioned to approve execution of the contract as presented. Commissioner Horsch seconded the motion. Ayes 5; Nays 0. Motion approved. V. Reports and Information A. 2026 HEDRA Budget Priorities Hinzman provided a summary of proposed 2026 budget priorities, including the façade improvement program, downtown environmental cleanup, and other consistent fees (legal, consultant services). Commissioner Horsch asked about the state of the revolving loan program. Hinzman provided a summary of the past few years, including the last loan which was given out about four years ago. He does not believe that HEDRA is able to fund it currently with this consistent lack of interest. B. Hastings Business Survey Menke provided a summary of the Hastings Business Survey’s timeline. He created it to engage business owners, and it has been live for approximately three weeks with eight submissions. The survey has a rolling deadline, and results can be made available once there are more responses, hopefully by the end of the year. C. Development Updates: Hinzman provided an update on current developments. - Central Water Treatment Plant – plans are wrapping up and the site must be vacated by June 30th, besides special action which will be voted on at City Council. - Cannabis permits – now three total sites applying, two have been granted special use permits which allow them to apply for registration. Those two sites are 215 Ramsey St. and 2100 block of Vermillion St. A new site at 33rd St and Highway 316 has started the process to apply for a special use permit. The council’s decision to only allow one cannabis retailer is still in effect. - Vermillion Acres – senior housing on County Road 47, hoping to finish the project by the Fall. VI. Adjourn A. Commissioner Goblirsch made a motion to adjourn the meeting at 7:09 p.m., seconded by Commissioner Haus. Motion passed 6-0. Meeting adjourned. Next Meeting: Thursday, July 10, 2025 Respectively Submitted: Amelia Thibault