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Home My WebLink About20090120 - XII-1 HOUSING AND REDEVELOPMENT AUTHORITY ANNUAL REPORT FOR 2008 COUNCIL PLANNING COMMITTEE, HRA & EDC WORKING GROUP In 2007 Mayor Hicks appointed a working group consisting of the Council Planning Committee Anthony Alongi, Danna Elling Schultz and Michael Slavik, HRA members Dennis Martodam and Ronald Toppin, and Economic Development Commissioner Shane Bauer to review the potential for public and private roles in downtown redevelopment, and whether or not to establish an Economic Development Authority (EDA). In March the Working Group Report recommended that City Council should establish an EDA, with HRA powers, to take the place of the HRA and the Economic Development Commission. The Group also recommended a number of public improvements in the downtown area to prepare for future development. The group recommended that infrastructure improvements already designed for the Block 1 and 2 condominium projects be completed in 2008. Other downtown area and Levee Park improvements and concepts were identified, costs estimated and prioritized. ESTABLISHMENT OF AN EDA On September 15, 2008, the City Council adopted the enabling resolution establishing an EDA in the City of Hastings, effective January 1, 2009. It is named the Hastings Economic Development and Redevelopment Authority (HEDRA). Its responsibilities include facilitating the development of business and industry, redevelopment and rehabilitation of commercial and residential property and the prevention of blight. The downtown property owned by the HRA and the City-owned land in the Industrial Park will be administered by the HEDRA. The staff members, budgets, real estate, agreements, loans and mortgages will all be transferred from the HRA, Industrial Park and the EDC to the HEDRA. When this is completed the HRA will be dissolved, probably in mid-2009. The Mayor and Council appointed five citizens (also serving as HRA commissioners), Robert Hollenbeck, Pam Holzem, Kurt Keena, Dennis Martodam and Ronald Toppin, and two council members, Anthony Alongi and Danna Elling Schultz to the Board of the HEDRA. BLOCK 1 AND BLOCK 2 The City Council authorized contracts for the new water main serving Blocks 1 and 2 and the east side of the railroad, for the reconstruction of Tyler and Ramsey Street, for the bike trial extension on Block 1, and for the completion of Quiet Zone work. The north 2/3 of HRA property on Block 1 was cleared and graded. The remains of the Kuenzel buildings on Block 2 were removed by Robert Abdo, the property owner, because they were unused and in disrepair. An estimated $75,000 of the project cost will be assessed to the HRA property on Blocks 1 and 2 in 2009. The HRA authorized completion of the title work and the replat of Block 1 by First American Title and Alliant Engineering. The intent is to complete and benefit from the title and plat work accomplished during 2005 and 2006 for the Sherman proposal, and to be prepared for future development. The project was completed and the Riverfront Addition Plat was approved by City Council in December. QUIET ZONE WORK Quiet Zone improvements on the Second and Third Street crossings were completed in November. Federal Rail Authority then required additional work to qualify for a permanent quiet zone, including closing adjacent curb cuts on Second Street. Costs for both the 2007 and the 2008 quiet zone work are paid for by assessing the adjacent HRA development property. The FRA approved the work, and Canadian Pacific and Amtrak were notified of the establishment of the quiet zone on September 17, 2008. BLOCK 29 A Request for Redevelopment Proposals was advertised in April. One party, Stotko- Speedling Construction, expressed interest but was unable to complete plans for HRA consideration during 2008. Another RFP is expected in 2009. VERMILLION STREET REDEVELOPMENT PROJECT AREA The Redevelopment Project Area, recognizing that City assistance is likely to be necessary to improve or correct existing conditions in the specified area, was recommended by the HRA and approved by the City Council after a public hearing in October. A Project Area had to be established before the HRA or EDA can use redevelopment tools, such as tax increment or the purchase and sale of property, to assist projects, such as the Jiffy site. Like the Downtown Redevelopment Project Area, established in 1973, the Vermillion Project Area has goals and objectives to guide future development, and encourages owners to make improvements. The attached maps show thth the Project Area, parcels adjacent to and near Vermillion Street, from 10 to 25 Streets. The first sign of redevelopment was the acquisition and clearance of two properties at the th corner of 15 Street and Vermillion by the Linn Companies. NORTH VERMILLION RECONSTRUCTION PROJECT . After five years of planning and securing grant funds, MnDOT contracted for the reconstruction of the historic retaining walls along Vermillion Street in 2008 and the City ththth Council contracted for reconstruction of parts of 6, 7 and 8 Streets, the alleys and adjacent walls at the same time. The HRA pledged $50,000 toward the cost of reconstruction studies and plans by McDonald and Mack Architects. The public purposes were to correct blighting conditions and to reduce the cost to the adjacent properties including many affordable apartments and designated historic sites. The project was completed and the funds were transferred. LOAN PROGRAMS The board approved commercial rehabilitation loans for 106 and for 108 E Second Street (RJ’s) upon completion of the reconstruction and rehabilitation work in June. The work included structural stabilization, HVAC systems, plumbing, walls and floors. The loans were $30,000 for each of the two buildings which have been combined for one business. th The board authorized a residential rehabilitation loan for 740 8 Street for handicapped accessibility improvements in cooperation with CDA’s rehab program in the amount of $15,000. RED ROCK CORRIDOR An Alternative Analysis study completed in 2007 indicated that it will take time to achieve a cost/benefit ratio that would justify commuter rail. The Board plans to build up rider numbers in the corridor by offering ride share and bus transit. A commuter bus transit study was initiated in the summer of 2008. The proposed high speed train system to Chicago continues to be considered at the state and federal levels. It would benefit potential Red Rock commuter rail by funding some infrastructure upgrades. The HRA continued to support funding for a park and ride lot on Block 16 adjacent to the depot. A multi-modal transit center is a key component of the Downtown Redevelopment Plan. HRA REAL ESTATE The attached map shows HRA properties at the end of 2008. There were no new purchases or sales. The Senior Center property was deeded to the City of Hastings after the Joint Powers Board paid off the HRA revenue bond (note). The City exercised its right to acquire the property under the lease-purchase agreement with the HRA. MEMBERSHIP Robert C. Hollenbeck – reappointed to 2013 Ronald Toppin – Chairperson – reappointed to 2013 Dennis Martodam Kurt Keena - Secretary Pam Holzem – Vice chairperson FINANCE HRA funds will be included in the City’s 2008 Audit and Financial Report, to be completed approximately March 30, 2009. Reported by: John Grossman Executive Director 1166YYWWHH VermillionStreet Redevelopment ProjectArea =ProjectAreaBoundary =ParcelLines =Buildings SiteLocation TtxeTtxe CityofHastings, DakotaCounty,Minnesota October,2008:N:HRA Site Location City of Hastings, Vermillion Street Dakota County, Redevelopment Minnesota Project Area = Project Area Boundary = Parcel Lines = Buildings August, 2008: N:HRA