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Home My WebLink AboutI.A - Agenda NotesHASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY September 11, 2025 - 6:00 pm. HASTINGS CITY COUNCIL CHAMBERS I. Quorum II. Minutes Please see the attached HEDRA Meeting minutes from the August 14th Regular Meeting for your review and approval. III. Bills August Bills BMO $1,850.00 Education – Econ Dev Finance Course - Menke Northland Financial $1,250.00 TIF Reporting – 2024 Annual Report Levander Gillen Miller $834.14 Block 28 – Legal MN Pollution Control $75.00 UBC-Lake Isabel Flats – Environmental Review Centerpoint Energy $36.04 Block 28 – 400 Vermillion – Gas 6/16/25-7/21/25 Centerpoint Energy $18.28 Block 28 – 418 Vermillion Ste 1 – Gas 6/16/25-7/21/25 Centerpoint Energy $11.60 Block 28 – 418 Vermillion Apt 2 – Gas 6/19/25-7/21/25 Terrys Hardware $7.97 Block 28 – 400 Vermillion – Light Bulb Please see attached general ledger detail for further information. IV. Business A. Strategic Plan Quarterly Update Please find attached the HEDRA Strategic Plan Quarterly Update. Items to keep in mind in reviewing the report:  TH 61 Project. Construction delayed until 2028. How does this impact the timing of the Block 28 Gateway Redevelopment.  Wastewater Treatment Plant. Met Council no longer plans to construct the plant in Hastings and has delayed construction for at least 10 years. HEDRA’s plans to reuse the existing property will be delayed.  Block 16 Red Rock Corridor\Depot Parking Lot. Parking lot constructed for future transit park and ride use for the Red Rock Corridor. $600,000 in proceeds derived from state bonding funds were allocated from Metropolitan Council to the City in 2011. Property is subject to a 40 year ground lease. Red Rock Corridor Transit will not be operating to Hastings in the near future. Metropolitan Council is supportive of ending the ground lease allowing development of the property. The city may need to pay back funds spent (approximately $560,000). Property appraisal is necessary to determine property value. Should the development of this property be of higher priority? Action Requested: Discuss Quarterly updates and potential changes in priority of identified projects. B. Authorize Signature: Appraisal Services – Block 16 TaTonka At the August HEDRA meeting, Staff presented an update on what it would take to make Block 16 a developable property. Given that the parking lot was constructed using funds from State bonding and that there is a 40-year ground lease with Met Council, there are several obstacles with this site. Staff met with representatives from Met Council and the Minnesota Management and Budget Office to get clarity on the steps needed to absolve the property of the lease. The first step is to get the property, and ground lease, appraised by a third party to know what the minimum sale price should be. The City is required to pay the State the proceeds of the land sale, up to the amount equal to the bond funds used. Staff reached out to three property appraisal firms and received bids from each. Staff is recommending entering into an agreement with TaTonka Real Estate Advisors. Action Requested: Authorize the signature of the agreement with TaTonka Real Estate Advisors to perform a Market Value Appraisal for Block 16 C. Resolution: Authorize 2026 HRA Levy As part of the 2026 budget, City Staff has prepared the proposed 2026 HRA Levy. Staff is recommending the full HRA tax levy of 0.0185 percent which would generate approximately $548,904 in revenue for HEDRA. Those dollars would be utilized to complete projects and goals identified within the current HEDRA Strategic Plan. Action Requested: Adopt the 2026 HRA Levy. Please see the attached resolution and HEDRA Budget Outline for further information. D. Resolution: Façade Improvement Program Grant – 2137 Vermillion St Additional information will be provided under a separate cover V. Reports and Information A. Industrial Park Marketing - Gaughan Staff, with the guidance of HEDRA, signed a brokerage agreement with Gaughan Companies to market the 50-acre Industrial Park site. In addition to marketing that property, they are providing connections for the Block 28 redevelopment site as well. There are currently no firm leads, but Staff will update as they do. B. Downtown Parking Study Please see the attached 2025 Downtown Parking Study. Key takeaways include ● The parking supply can handle the day-to-day parking demands ● Parking utilization is increasing ● The Block 4 alley and gravel area have significantly increased in usage ● Lake Isabelle Flats and Artspace have not strained the surrounding parking areas C. Development Updates New Information: Special Use Permit – Boat Sales – 624 Spiral Blvd The Planning Commission will review the request on September 8th with Council action anticipated on September 15th. IPB Battery would continue to operate out of the rear of the building with boat sales in the front. All boats would need to be within a screened fenced area. Chase Bank – Cub Parking Lot Chase Bank has proposed construction of a bank in the parking lot north of Cub Foods near Highway 55 and General Sieben Drive. City Council approved the Site Plan on August 18th. Staff is awaiting building plans for construction. 1292 North Frontage Road – Carbones Pizza\Stacy’s Stars – Central Treatment Plant The building is vacant. Stacy’s Stars will be relocating to the 33rd Street strip mall near Coborn’s. Carbones pizza continues to work on finalizing lease details. City Council has authorized plans and contact for construction of the new treatment plant. Demolition of the building is anticipated towards the end of summer. Previous Information: Cannabis Permits – The City Council has approved Special Use Permits for four retail cannabis facilities in Hastings. These facilities will need to secure licensure through the Minnesota Office of Cannabis Management and register with the City prior to operation. Upon the advice of the City Attorney’s review of state statutes, the Council agreed to allow two retail permits instead of allowing one permit as previously directed. Walden - Redwing Blvd & Michael Avenue – The purchase agreement has been extended until the end of 2026. Staff are awaiting further information on plans. The Concept Plan shows 450 units for development. Suite Living Senior Apartments – 33rd Street and Vermillion – City Council reauthorized Site Plan approval on August 4th. The developer plans on beginning the project later this year. Approval for the 32-unit project was granted by the City Council in 2022. Heritage Ridge – City Council granted a one year extension on August 4th. Streets and utility construction may commence this year for the final addition of the 116-lot single family residential development near General Sieben Drive and Northridge Drive. Vermillion Acres – Construction continues a fall 2025 opening is anticipated. Jaybird Senior Living will manage the 75-unit senior housing facility near County Rd 47 and Riverwood Drive. Rio Gran Express – 601 31st Street E – Property has been transferred, and construction has begun for the trucking garage. Zoning Code Update – Staff continues to meet with the consultant to go over the draft plan. 418 Vermillion Street – Dicks Barber – All tenants have moved out and staff is preparing the building for vacancy. National Guard Armory – Parking and Stormwater – Construction has begun on the project. The City Council approved the site plan at the January 21st meeting for stormwater and parking lot improvements. Sunset West 3rd Addition – Plans for development of 41 single family homes northwest of 15th Street and O’Connell Drive. South Oaks 4th Addition – Homes are under construction for the 35-lot single family home subdivision near 31st Street and Century 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 plans. No further information on the future of the 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. The City Council approved a minor subdivision to split the church land from the development site 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 – September 11, 2025, Regular Meeting  Minutes – August 14, 2025, Regular Meeting  Bills – August 2025  Strategic Plan Update  Appraisal Services Contract – TaTonka  Resolution: Authorize 2026 HRA Levy  2026 HEDRA Budget Outline  Downtown Parking Study Next Meeting: Thursday, October 9, 2025 – 6:00pm – Regular Meeting