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HomeMy WebLinkAboutHEDRA 05-14-09 PacketA short HRA meeting will precede the EDRA meeting. HASTINGS HOUSING ~ REDEVELOPMENT AUTHORITY May 14, 2009, 6:00 p.m. City Hall CYty Council Chamber Agenda I. Quorum. II. Minutes ofJanuarv 8, 2008 III. Business A. Order public hearing on transfer of East 2/3 of Lot 1, Block 14, Olivers Grove, to the Cily of Hastings for the meeting of June 11, 2009 at 6:00 p.m. IV. Adjourn HASTINGS HOUSING & REDEVELOPMENT AUTHORITY Minutes of January 8, 2009, x:30 p.m. City Hall CSty Council Chamber I. Quorum: Commissioners Hollenbeck, Holzem, Keena, 1\,lartodam and Toppin present; staff: Grossman. Chairperson Toppin called the meeting to order at 5:30. II. 1\linutes of December 11, 2UU8. Keena moved and Toppin seconded approval; mmtion carried. III. Business A. Election of otYicers: chair, vice-chair, secretary. Hollenbeck nominated Holzem for Chairperson; Keena nominated Hollenbeck for `-icechairperson; Martodam nominated Keena for Secretary. All the nominees were elected by voice vote, 5-0. B. Resolution 1-2009. Resolution authorizing preparation of deeds to transfer real estate to HEDRA. Keena moved and Holzem seconded the adoption of Resolution 1-2009; motion c:n'ried, 5-0. IV. Adjourn. Hollenbeck moved, Martodam seconded adjournment at x:45; motion carried ~-0. HASTINGS HOUSING F~ REDEVELOPMENT AUTHORITY NOTICE OF PUBLIC HEARING TRANSFER OF PROPERTY Notice is hereby given that the Hastings Housing and Redevelopment Authority will hold a public hearing on Thursday, June 11, 2009 at 6 p.m. at City Hall, 101 E. 4th Street, Hastings, Minnesota, related to the proposed transfer of property owned b_y the Authority to the City of Hastings pursuant to and in accordance ~~~ith Minnesota Statutes, Sec. 469.001 to 469.047 inclusive as amended. The property is legally described as: East 2/3 of Lot 1, Block 14, Town of Hastings This property, now known as "Oliver's Grove" was improved by the Authority as downtown open space and parking in 1992. The purpose of the transfer is to facilitate the future maintenance of the property for public uses by the City of Hastings. Interested persons may appear at the hearing and present their views orally or in writing. By order of the Board of the Housing and Redevelopment Authority in and for the City of Hastings. s/John Grossman Director Published and posted May 28, 2009. HASTINGS ECONOMIC DEVELOPMENT & REDEVELOPI\1ENT AUTHORITY Agenda for Nlap 14, 2009, 6:00 pm. CSt`~ Hall CSty Council Chamber I. Quorum- II- 1\,linutes of April 9, 2009 III. Bills IV. Business A. Proposal for evaluation of Hudson relocation B. Block 29 draft preliminary agreement C. Planning ~a~orkshop -dates and agendas V. Reports and Information A. Dental Arts update B. 31~ 3`d St E update C. Spiral Boulevard update D. 23`d Street Intersection Study update E. Bridge process update F. Block 1 update G. Vermillion Area update ~'L Adjourn AGENDA NOTES BILLS American Legal Pub. Bradley-Deike Ehlers Assoc. First .American Title First .American Wilson Development BUSINESS $75.00 City code book for HEDRA $176.00 Rehab legal advice $570.00 Financial analysis - P&L $6,000 Title research and exantination for Block 1 between 2005 and 2008. $1,083.00 Owners title insurance: Block 1 $88450 Relocation/acquisition services, 31~ E 3`d A. Proposal for evaluation of Hudson relocation. The attached memo explains why staff requested Sebesta Blomberg to make dte proposal The Board is asked to consider funding the study at anot-to-exceed cost of $33,400 out of HEDRA funds. The fiords u e available, although a budget amendment will be needed to allocate them. Timing is important, as decisions have to be made with the bridge schedule in mind. The study will take about six weeks. B. Block 29 draft ureliminarv agreement. The attached draft preliminary an Bement documents the Bo:nd's acceptance of the concept proposed by Stotko Speedling Construction for redevelopment of Block 29. They have the draft and will comment before the meeting. If both the Board and the developer ate satisfied, the board can approve the agreement for execution. The agreement says: • The developer has until June 30, 2012 (3 yeu s) to sign a development agreement with the Authority. The Authority will not entertain other proposals dining this time. • The Authority expects that the sale price of the land will be nominal. The agreement provides drat an analysis of dte return on investment will be made to justify the price when all the costa and rents u e knovrm. • The developer will seek a tenant or purchaser for the extra space in the building. • The developer will refine the design and costs. The final plans will generally be consistent with the plans in dte proposal. • The developer will seek a commitment for financing. • The developer may conduct soil and environmental tests and update the title. C. Planning workshou -dates and agendas. The conmtissioners :n'e requested to consider dates acrd times in the few months for a workshop session. Days or evenings are possible. The length might be two to tluee hours. Its important that as many of the commissioners and staff as possible participate. Staff will prepare a calendar showing vacation periods if members have any plans to share. known staff vacations are the week of June 22 and the weeks of July 20 and 27. The focus would be on EDRA's future roles and goals in economic development or redevelopment benefiting the city. Some examples are enclosed. Identify priority questions, concerns or projects for the ~a~orkshop agenda so that staff can prepare. Some examples: The impact and importance of commuter bus or train connections to the metro core, local mobility, development needs related to a transit center, and use of HEDRA property. The state of existing or potential manufacturing and services businesses, local employment considerations, future infiashucture and space needs, possible locations, use of Industrial Park or other property. The need for intervention in specific residential neighborhoods or commercial zones with actual or potential blight. Rese:u'ch policies or programs that encourage reinvestment and improvement. REPORTS A. Dental Arts The City Council granted preliminary concept plan and land credit approval on April 20, 2009. Mr. Iocco is completing civil engineering and :u'chitectural plans in order to submit for Site Plan approval. B. 315 3`d St E Wilson Development Services has notified Pete Nelson, the realtor, that the EDRA Board and the owners are far apart ar'e price and suggested meeting with the owners to discuss whether there are other ways of coming to an agreement. C. Spiral Boulevard The City Council is scheduled to re-examine Indush'ial Park Improvements at the May 18a' City Council Meeting. With the assistance of properlu owners, the Engineering Department has developed an alternative to the April 6a' Industrial Park Improvements. By eliminating storm sewer and some trails, the front foot assessment for improvements has been reduced from $68.40 to $45. Engineering has also examined putting in curb only (no storm sewer). The curb only option would increase the rate from $45 to $47. Please see the attached letter to property owners for further information. D. 23`d Street Intersection Study The City Council accepted SEH's proposal for services at the May 4a' Council Meeting. The scope of services includes the following: • Data collection including h'affic counts, turning movements, and crash data. • Traffic forecasts • Traffic analysis • Intersection Control Evaluation Report for potential siglralization • Backage road concept plans Staff will hold a kick off meeting with SEH on May 20. The project is anticipated to be complete by September 1st at a cost not to exceed $40,000. E. Bride Process n1N Dot has completed the Environmental Assessment for the TH 61 Bridge. The comment period began on May 4, 2009. Comments will be accepted through 4:30 p.m., June 17, 2009. A public hearing is planned for EA public involvement on this project. The public hearing will beheld on May 20, 2009 at the Hastings City Hall from 3 p.m. to 7:30 p.m. with presentations at 4 p.m., 5 p.m. and 6 p.m. Comment cards will be available at the public hearing for written input and a court reporter will be available to record verbal comments. The EA is available for public review on the project website at tt~~~~~.dot st.xtc.mn.uk motto/p~otccts;ha,tin~sbru9~rcaa F. Block 1 Block 1 has been transferred to EDR~. The owner's title insurance will be in the name of EDRA. The titles to the eight parcels on Block 1 required long, complicated and expensive work to cleat' exceptions and objections, and correct descriptions and easements. The HRA authorized finishing the title work, a survey, a new plat, and title insurance late in 2008. .Any or all of the three otttlots could now by_ conve_yed without delay. Greenhouse Village Properties called to ask if the Block 1 property was still available. They have built a number of elderly co-op buildings. Mark Finnemann, an architect, met with staff about possible multi-unit residential building sites in the City, including Block 1 and the Abdo property. They work with builders on elderly rental properties. G. ti erniillion Area • iylidtown Shopping Center -Salvation Army. The owners of Midtown Shopping Center have approached the City on leasing out the former Midtowm Foods space for a Salvation Army Tluift Store. Although the project meets the zoning requirements for operation, staff has concerns about how donation drop-offs would be handled. The rear of the mall (along Eddy Street) has very limited space, and is immediately adjacent to residences. The owner has been informed that accumulation in the open of discarded and disused goods is prohibited under Cily Code. Donation drop-offs (both during and after business hours) could not occur in open areas; an enclosed drop-off area for goods will be required. • Ed Peterson Properties - 1300 Block -Staff will be meeting with Ed Peterson on A,lay 13a' to discuss potential development. 1\,1ore information will be provided at the meeting. Hastings EDRA Hastings Economic Development and Redevelopment Authority 6:00 p.m. Hastings City Hall Minutes of April 9, 2009 I. Called to order 6:00 HEDRA Commissioners, Ron Toppin, Pam Holzem, Kurt Keena, Bob Hollenbeck, and Dennis Martodam present Commissioner Danna Elling Schultz and Anthony Alongi, absent Staff present: HEDRA Director John Grossman, Community Relations Specialist Shannon Rausch, Others Present: Greg Stotko and Doug Speedling II. Approval of Minutes Minutes from the March 12, 2009 meeting were presented, Keena moved to approve the minutes with no changes. Toppin seconded the motion; Motion passed 5-0 III. Bills Commissioner Toppin moved to pay the bills. Commissioner Keena seconded the motion. Motion passed 5-0 IV. Business A. Land Credit Formula HEDRA Director Grossman provided a brief review of the formula and land credit program. He explained how the increase in the land price from $1.00, to $1.35 and now $1.65 made it virtually impossible for businesses to achieve their goals and earn credits exceeding the deferred land price. Director Grossman recommended the authority adopt the revised formula based on the current land price of $1.65/sq.ft. to make the land credit program work again. The proposed revision places more emphasis on job creation, by multiplying the "job equivalents" by $12,000 instead of $5,400. The 10% credit for building value remains the same. Director Grossman noted that any changes the Authority makes today will not affect the existing agreements. Commissioner Toppin moved to adopt the proposed changes in the land credit formula; Commissioner Keena seconded the motion. Motion passed 5-0 B. Block 29 HEDRA Director Grossman presented the one response HEDRA received to the RFP issued for Block 29 from Stotko Speedling. Their proposal meets the RFP almost EDRA: 04/09/09 1 completely. They are offering $1.00 for the land, and are asking three years to find tenants to fill the space and begin to build. The Board discussed the $1.00 offer for the land and the three years to "market" the property. HEDRA Director Grossman, reminded the Authority that this property has been on the market both in good time -and - in tougher times and this is the only real proposal that has been brought forward that meets the majority of the requirements. With the new bridge being built in the next couple of years three years may not be too much to ask. Mr. Stotko was present to address the Authority and told them that he and his partner, Mr. Speedling have been interested in the property for some time, but just haven't been able to make it work. They have considered amixed-use property but parking becomes an issue. They have considered splitting unit by 1sl Floor / 2"" floor, but the size (just over 3,000 sq ft) would require an elevator. In the end they decided on splitting the building down the center so each unit has two levels and only 1,500 sq ft per floor which eliminates the need for and elevator and helps keep the cost of the building lower. Mr. Stotko said that they would occupy one unit and probably lease out the second unit, possibly sell it as a condo. Commissioner Martodam suggested that the Authority wait and see what exactly the project is going to be when it is built before approving a land price, since there are so many variable left unknown. Commissioner Toppin asked whether the project would be more affordable if the footprint were enlarged to 8,000 sq ft, rather than restricting to 6,000 sq ft in order to save the trees on the property. Commissioner Keena moved and Commissioner Hollenbeck seconded acceptance of the concept and directed staff to prepare a preliminary agreement on the basis of the proposal with certain closing conditions including feasibility analysis, for the Authority's consideration at the next meeting. Motion passed 5-0 C. Industrial Park Preliminary Approval with Dental Lab Red Wing Dental wants to consolidate two offices and move to the Hastings Industrial Park. This would bring 14 jobs that pay around $13 - $14/ hour to the park. This type of business fits the parks and would fit the land credit program as well. This kind of building business on the site which they are considering would be a nice transition from the Industrial Park to the Residential area beyond. Staff is looking for a recommendation from the authority to City Council to approve the sale of the land to Red Wing Dental. Architectural and planning requirements still would have to be submitted and discussed and need to meet approval. Commissioner Keena motioned and Commissioner Hollenbeck seconded the recommendation to City Council for the approval of the sale to Red Wing Dental. Motion passed 5-0 EDRA: 04/09/09 2 V. Reports A. 315 East 3ftl Street HEDRA Director Grossman and Planning Director Hinzman met with the Realtor for 315 3rd Street East. In 2005 the property was bought for $229,000, current market value is $153,00. Right now the owner is asking $209,000 and doesn't appear to be any room for negotiating. Staff is looking for direction from the Authority on whether or not they would like to consider making an offer on the property. Commissioners questioned what the motivation is now that the second half of the senior center is off the market for at least the next 5 years since the owner has two new leases on his units each for five years. Direction given to staff at this time is to wait in see. B. Senior Center As stated above the owner of the second half of the building has two five year leases on his property and is no longer interested in selling the property to the City and School Board. C. Updates and Info Spiral Boulevard is back on the drawing board following a large showing of property owners at the City Council meeting on April 6l". Engineering Department is trying to look for ways to reduce the cost of the project including eliminating the curb and gutters from the project. PW works has contacted the firm, Short Elliott Hendrickson about doing the intersection study on 23ftl street. This will go to Council for approval at the first meeting in May. No new news on Ed Peterson Property at midtown Bus transit study will wrap up in June. Based on what they are finding we would need 200 riders from Hastings to Minneapolis. Cost would be any where from $3.50 - 4.25 (one way) and there would be four buses running to and from in the morning and again in the afternoon. With a possible mid-day run in each direction. If MTC runs it, it would be regular buses. IF they contract it out to a private company it would probably be coach buses which cost a bit more, but typically get better ridership. Regarding the rumored cuts to funding for the new bridge Senator, Steve Murphy says the Mn/DOT Budget issues will not affect the Hastings Bridge. Still waiting to hear from Hudson about possible relocation. Additional CDBG funding for fire alarm grants, not much is know at this time. Staff is still waiting to find out more. Staff met with Intek Plastics. They are currently looking for creative ways to fund their assessments. VI. AdJournment: Keena moved to adjourn at 7:10 p. m., Toppin seconded; motion passed 5-0 Next meeting is scheduled for May 14, 2009 at 6:OOpm in the Council Chambers. Shannon M. Rausch, HEDRA Secretary EDRA: 04/09/09 3 9-15-2009 1:95 PM D E T A I L L I S T I N G PAGE: 1 FUN D 909-HRA RE~VELOPNE,TIT ACTIVE A CCOUNTS ONLY PE RI OB TO USE: Jan-2009 THRU Mae- 2009 LEPT 500 HOUSING S RELEVELOPNH'MP SUPPRESS ZEROS AC CCUNT S: 500- 6003-6201 THRU 500- 6206-6902 POST DATE TRAN # REFERENCE PACKET== __ BESCRIPTI ON== __ = VENB INV/P O/JE # NOTE __ ==AMOUNT= = _ __ =BALANCE == _ FUNS: 909 - HRA REBEVELOPNE,TIT 500- 6003 -6201 OFFICE SUPPLIES B E G I N N I N G R ALAN C E 0 .00 3/03/09 3/10 A63095 CHK: 939199 01299 CHECK STOCK 98150 395 .91 395 .91 MATT PARROTT F SONS CO. INV# 23998 /PO# __ __ __ _= MARCH ACTIVITY BB: 395.91 CR: 0 .00 395 .91 __ __ __ _= ACCOUNT TOTAL BB: 395.91 CR: 0 .00 500- 6003 -6206 DUPLICATING F COPYING SUPPLIES B E G I N N I N G R ALAN C E 0 .00 1/01/09 2/29 805893 01619 OB Expenses paid in 09 JE# 002893 11 .09CR 11 .09CR __ __ __ _= JANUARY ACTIVITY BB: 0.00 CR: 11 . O"]CR 11 . O"]CR 2/19/09 2/29 A62385 CHK: 936983 01231 COPIER USAGE 000161 15 .59 9 .52 CANON BUSINESS SOLUTIONS- INV# 9001"]"] "]123 /PO# __ __ __ _= FEBRUARY ACTIVITY BB: 15.59 CR: 0 .00 15 .59 __ __ __ _= ACCOUNT TOTAL BB: 15.59 CR: 11 . O"]CR 500- 6003 -6309 LEGAL FEES B E G I N N I N G B ALAN C E 0 .00 3/10/09 3/12 A63902 CHK: 939189 01256 ABVI CE-LANB TRANSFE RS 06913 80 .00 80 .00 HRABLEY F BEIKE PA INV# 29119 /PO# __ __ __ _= MARCH ACTIVITY BB: 80.00 CR: 0 .00 80 .00 __ __ __ _= ACCOUNT TOTAL BB: 80.00 CR: 0 .00 500- 6003 -6321 TELEPHONE B E G I N N I N G B ALAN C E 0 .00 1/01/09 2/20 805892 01605 09 expenses pai9 in OB JE# 002869 6 .50 6 .50 1/30/09 2/09 805956 receipt 109095 01563 Expense Embaeq refu nd JE# 002800 0 .39CR 6 .13 __ __ __ _= JANUARY ACTIVITY BB: 6.50 CR: 0 . 3"]CR 6 .13 2/29/09 2/26 A62923 CHK: 939053 01239 TELEPHONE 99510 9 .90CR 3 S9CR ENHARQ INV# FE8 09 /PO# 2/29/09 2/26 A62929 CHK: 939053 01239 TELEPHONE 99510 9 .59 6 .02 ENHARQ INV# JAN 09 /PO# __ __ __ _= FEBRUARY ACTIVITY BB: 9.59 CR: 9 . "/OCR O . 11CR 3/03/09 3/10 A63095 CHK: 939156 01299 JAN-MAR 09 PHONE SE RVICE 000900 16 .05 22 .09 ONENET USA INV# FE8 09 /PO# 9-15-2009 1:95 PM D E T A I L L I S T I N G PAGE: 2 FUND 909-HRA RE~VELOPNE,TIT ACTIVE ACCOUNTS ONLY PERIOD TO USE: Jan-2009 THRU Mae-2009 LEPT 500 HOUSING S RELEVELOPNH'MP SUPPRESS ZEROS ACCCUNT S: 500-6003-6201 THRU 500-6206-6902 POST DATE TRAN # REFERENCE PACKET== __ EESCRIPTI ON== __ = VEND INV/PO/JE # NOTE __ ==AMOUNT== _ __ =BALANCE== _ 500-6003-6321 TELEPHONE ' ( CONTINUED ) ' 3/29/09 3/30 A63993 CHK: 939355 01291 PHONE SERVICE 000900 9.61 29.68 ONENET USA INV# MAR 09 /PO# MARCH ACTIVITY DE: 23.66 CR: 0.00 23.66 __ __ __ _= ACCOUNT TOTAL DE: 39."]5 CR: 10. O"]CR 500-6003-6323 CONFERENCE F SCHOOLS B E G I N N I N G R ALAN C E 1/13/09 1/15 A60829 CHK: 936628 01185 FINANCE SEMINAR - GROSSM 19192 EELERS S ASSOC INV# JAN 09 __ __ __ _= JANUARY ACTIVITY DE: 235.00 CR: ACCOUNT TOTAL DE: 235.00 CR: 500-6003-633"] INSURANCE-GENERP,L LIAEI LITY B E G I N N I N G R ALAN C E 3/31/09 9/02 A69361 CHK: 939929 01299 GENL LIAE 99698 LEAGUE MN CITIES INSURANC INV# 30993 3/31/09 9/02 A69362 CHK: 939929 01299 EXCESS LIAE 99698 LEAGUE MN CITIES INSURANC INV# 30999 __ __ __ _= MARCH ACTIVITY DE: 850.66 CR: __ __ __ _= ACCOUNT TOTAL DE: 850.66 CR: 500-6003-6390 INSURANCE-WORKERS CONPENSATI ON B E G I N N I N G R ALAN C E 2/03/09 2/10 A61853 CHK: 936869 01222 WORKERS CON@ 99698 LEAGUE MN CITIES INSURANC INV# 19"]10 __ __ __ _= FEBRUARY ACTIVITY DE: 991.82 CR: 3/19/09 3/29 A63993 CHK: 939281 01262 ZIJO INSTALLMENT 99698 LEAGUE MN CITIES INSURANC INV# 15298 __ __ __ _= MARCH ACTIVITY DE: 991.82 CR: __ __ __ _= ACCOUNT TOTAL DE: 983.69 CR: /PO# 0.00 0.00 /PO# /PO# 0.00 0.00 /PO# 0.00 /PO# 0.00 0.00 235.00 235.00 61"].00 233.66 850.66 991.82 991.82 991.82 991.82 0.00 235.00 0.00 61"].00 850.66 0.00 991.82 983.69 9-15-2009 1:95 PM D E T A I L L I S T I N G PAGE: 3 FUN D 909-HRA RE~VELOP NE,TIT ACTIVE ACCOUNTS ONLY PERI OB TO USE: Jan-2009 THRU Mae- 2009 LEPT 500 HOUSING S RELEVELOPNH'MP SUPPRESS ZEROS ACCCUNT S: 500- 6003-6201 THRU 500- 6206-6902 POST DATE TRAN # REFERENCE PACKET== __ BESCRIPTI ON== __ = VENB INV/P O/JE # NOTE __ ==AMOUNT= = _ __ =BALANCE == _ 500- 6003 -6933 BUES,SURSCRIPTI ONS, MFMaF'aaaTP B E G I N N I N G R ALAN C E 0 .00 1/01/09 2/20 505892 01605 09 expenses paid in OB JE# 002869 150 .00 150 .00 __ __ __ _= JANUARY ACTIVITY BE: 150.00 CR: 0 .00 150 .00 __ __ __ _= ACCOUNT TOTAL BE: 150.00 CR: 0 .00 500- 6003 -6950 MISCELLANEOUS B E G I N N I N G R ALAN C E 0 .00 2/19/09 2/29 A62393 CHK: 939033 01231 SECURE SIGNATURES FOR TH 000395 138 .00 138 .00 TYLER WORKS INCOEE EI VI SI INV# 79986 /PO# __ __ __ _= FEBRUARY ACTIVITY BE: 138.00 CR: 0 .00 138 .00 __ __ __ _= ACCOUNT TOTAL BE: 138.00 CR: 0 .00 500- 6009 -6322 POSTAGE B E G I N N I N G R ALAN C E 0 .00 1/02/09 1/12 E05639 01533 eecember Postage JE# 002956 20 .92 20 .92 JANUARY ACTIVITY BE: 20.92 CR: 0 .00 20 .92 2/02/09 2/06 E05993 01580 January Postage JE# 002830 1 .26 22 .18 __ __ __ _= FEBRUARY ACTIVITY BE: 1.26 CR: 0 .00 1 .26 3/02/09 3/02 E05882 01622 February Postage JE# 002885 11 .39 33 S7 __ __ __ _= MARCH ACTIVITY BE: 11.39 CR: 0 .00 11 .39 ACCOUNT TOTAL BE: 33 S7 CR: 0 .00 500- 6008 -6311 EXPERT S CONSULTANT B E G I N N I N G R ALAN C E 0 .00 2/19/09 2/29 A62929 CHK: 936999 01231 ANALYSIS-HUBSON SPRAYER 19192 99 SO 99 SO EBLERS F ASSOC INV# 338391 /PO# 2/19/09 2/29 A62928 CHK: 936999 01231 ANALYSIS PsL PROP 19192 1,190 .00 1,189 SO EBLERS F ASSOC INV# 338892 /PO# __ __ __ _= FEBRUARY ACTIVITY BE: 1,18"].50 CR: 0 .00 1,18"] .50 3/19/09 3/29 A63906 CHK: 001000 01269 315 E 3RR. ACQUISITION/ 89350 1,991 .15 2,658 .65 WILSON BEVEIOPNE,TIT SERVIC INV# 21660 /PO# PROJECT: 1 909-500 315 E 3ce1 St Beet H RA FUNBING __ __ __ _= MARCH ACTIVITY BE: 1,9"]1.15 CR: 0 .00 1,9"]1 .15 __ __ __ _= ACCOUNT TOTAL BE: 2,658.65 CR: 0 .00 9-15-2009 1:95 PM D E T A I L L I S T I N G PAGE: 9 FUND 909-HRA RE~VELOP NE,TIT ACTIVE ACCOUNTS ONLY PERI OB TO USE: Jan -2009 THRU Mae- 2009 LEPT 500 HOUSING S RELEVELOPNH'MP SUPPRESS ZEROS ACCCUNT S: 500- 6003- 6201 THRU 500- 6206-6902 POST DATE TRAN # REFERENCE PACKET== __ BESCRIPTI ON== __ = VENB INV/P O/JE # NOTE __ = =AMOUNT= = _ __ =BALANCE == _ 500-6008 -6319 OTHER PROFESSIONAL FEES B E G I N N I N G R ALAN C E 0 .00 1/01/09 2/29 B05893 01619 OB Expenses paid in 09 JE# 002893 9,506 . 09CR 9,506 . 09CR __ __ __ _= JANUARY ACTIVITY BB: 0.00 CR: 9, 506. 09CR 9,506 . 09CR 2/19/09 2/29 A62918 CHK: 936990 01231 PLAT RECORBING-RI VERFRON 12099 536 .00 3,990 . 09CR EAKOTA COUNTY PROPERTY RE INV# FE8 09 /PO# 2/19/09 2/29 A62930 CHK: 939001 01231 LEGAL SERV/ TITLE CLEARS 21886 9,555 .59 585 .50 FLUEGEL LAM FIRIN, PA INV# 33280 /PO# __ __ __ _= FEBRUARY ACTIVITY BB: 5,091.59 CR: 0.00 5,091 .59 __ __ __ _= ACCOUNT TOTAL BB: 5,091.59 CR: 9, 506. 09CR _x _x _x _x _x _x _ x _x _x _x _x _x_ 000 ERRORS IN THIS REPORTS x_x _ x _x _ x _x _x _x _x _x _x _x _x _x xx gEpORT TOTALS " -- BEBITS -- -- CREBITS -- HEGITMING BALANCES: 0 .00 0. 00 REPORTER ACTIVITY: 10,6"]1 .86 9,52"]. 23CR ENBING BALANCES: 10,6"]1 .86 9,52"]. 23CR 5-06-2009 10:10 AM D E T A I L L I S T I N G PAGE: 1 FUNL 909 -HRA RE~VELOPNE,TIT ACTIVE ACCOUNTS ONLY PERI OL TO USE: Ape-2009 THRU Ape-2009 LEPT 500 HOUSING S RELEVELOPMEMP SUPPRESS ZEROS ACCOUNT S: 500-6003-6201 THRU 500-6206-6902 POST DATE TRAN # REFERENCE PACKET== __ EESCRIPTI ON== __ = VEND INV/PO/JE # NOTE __ ==AMOUNT== _ __ =BALANCE== _ FUNS: 909 -HRA REEEVELOPNE,TIT 500-6003-6201 OFFICE SUPPLIES B E G I N N I N G R ALAN C E 395.91 9/28/09 5/OS A65905 CHK: 939692 01306 OAY TINHR REFILL 88905 31.69 929.10 WELLS FARGO RANK/ CREFIT INV# APR 09 GROSSNIAN /PO# __ __ __ _= APRIL ACTIVITY DE: 31.69 CR: 0.00 31.69 500-6003-621"] OTHER GENERP,L SUPPLIES B E G I N N I N G R ALAN C E 0.00 9/28/09 5/OS A65390 CHK: 939638 01306 CODE OF ORDINANCES IN EI 000995 95.00 95.00 ANHRI CAN LEGAL PURLI CATNG INV# 69398 /PO# __ __ __ _= APRIL ACTIVITY DE: "]5.00 CR: 0.00 "]5.00 500-6003-6309 LEGAL FEES B E G I N N I N G R ALAN C E 80.00 9/19/09 9/16 A69815 CHK: 939529 01289 LEGAL AOVI SE 06913 196.00 256.00 HRAELEY F EEIEE PA INV# 29195 /PO# __ __ __ _= APRIL ACTIVITY DE: 1"]6.00 CR: 0.00 1"]6.00 500-6003-6321 TELEPHONE B E G I N N I N G R ALAN C E 29.68 9/21/09 9/28 A65095 CHK: 939619 01299 PHONE SERVICE 000900 8.20 39.88 ONENET USA INV# APR 09 /PO# __ __ __ _= APRIL ACTIVITY DE: 8.20 CR: 0.00 8.20 500-6009-6322 POSTAGE B E G I N N I N G B ALAN C E 3359 9/01/09 9/29 E06129 01916 March Postage JE# 003019 9.90 93.99 __ __ __ _= APRIL ACTIVITY DE: 9.90 CR: 0.00 9.90 5-06-2009 10:10 AM D E T A I L L I S T I N G PAGE: 2 FUNL 909 -HRA RE~VELOP NE,TIT ACTIVE ACCOUNTS ONLY PERI OL TO USE: Ape-2009 THRU Ape- 2009 LEPT 500 HOUSING S RELEVELOPMEMP SUPPRESS ZEROS ACCOUNT S: 500- 6003-6201 THRU 500- 6206-6902 POST DATE TRAN # REFERENCE PACKET== __ EESCRIPTI ON== __ = VEND INV/PO/JE # NOTE __ ==AMOUNT= = _ __ =BALANCE == _ 500-6008 -6311 EXPERT S CONSULTANT B E G I N N I N G R ALAN C E 2, 658 .65 9/19/09 9/16 A69898 CHK: 001001 01291 FINANCIAL SVC, PsL OPTIO 19192 590 .00 3,228 .65 EBLERS F ASSOC INV# 339323 /PO# 9/21/09 9/28 A65199 CHK: 001002 01305 ACg / REL SVCS/315 E 3RD 89350 889 .50 9,113 .15 WILSON EEVEIOPNE,TIT SERVIC INV# 21686 /PO# 9/28/09 5/OS A65920 CHK: 001003 01309 RESEARCH s EXAMINE TITLE 000915 6,000 .00 10,113 .15 FIRST ANHRI CAN TITLE INSU INV# 1832-905912993 /PO# __ __ __ _= APRIL ACTIVITY DB: "],959.50 CR: 0.00 "],959 .50 500-6008 -6319 OTHER PROFESSIONAL FEES B E G I N N I N G R ALAN C E 585 .50 9/2"]/09 5/OS A65919 CHK: 001003 01309 OWNER'S TITLE INS POLICY 000"]15 1,083 .00 1,668 .50 FIRST ANHRI GAN TITLE INSU INV# 1"]29-596829 /PO# __ __ __ _= APRIL ACTIVITY DB: 1,083.00 CR: 0.00 1,083 .00 _x _x _x _x _x _x _ x _x _x _x _x _x_ 000 ERRORS IN THIS REPORTS x_x _x _x _x _x _x _x _x _x _x _x _x _x xx REPORT TOTALS " -- OEEITS -- -- CREDITS -- HEGITMING BALANCES: 6,199.63 0. 00 REPORTEE ACTIVITY: 8,838.29 0. 00 ENEING BALANCES: 19.982.92 0. 00 5-06-2009 10:19 AM D E T A I L L I S T I N G PAGE: 1 FUND 909-ECONOMIC OEV- IND. PE ACTIVE ACCOUNTS ONLY PERIOD TO USE: Ape-2009 THRU Ape- 2009 LEPT 180 ECONOMIC LEVELOPNENT SUPPRESS ZEROS ACCOUNT S: 180- 1502-6201 THRU 180- 1502-65"]0 POST DATE TRAN # REFERENCE PACKET== __ EESCRIPTI ON== __ = VEND INV/PO /JE # NOTE __ ==AMOUNT == _ __ =BALANCE== _ FUNS: 90"]-ECONOMIC EEV-IND. PA 180-1502-6321 TELEPHONE B E G I N N I N G R ALAN C E 29.55 9/21/09 9/28 A65095 CHK: 939619 01299 PHONE SERVICE 000900 8.20 39.95 ONENET USA INV# APR 09 /PO# __ __ __ _= APRIL ACTIVITY DB: 8.20 CR: 0.00 8.20 x_x _x _x _x _x _x _x _x _x _x _x _x_ 000 ERRORS IN THIS REPORTS x_x _ x _x _x _ x _x _x _x _x _x _x _x _x xx REPORT TOTALS " -- OEEITS -- -- CREDITS -- HEGITMING BALANCES: 5"]9 .55 0. 00 REPORTEE ACTIVITY: 8 .20 0. 00 ENEING BALANCES: 582 ."]5 0. 00 May 4, `1009 To: Hastings EDR9 From: John Grossmaxr Re: Evaluation of the benefits to Hodson Spra}•er of relocation to the former Intek facility on 10~' Street. Action: Staff recouunends that the EDRA authorise contracting Sebesta Blomberg for [he evaluation at cos[ of $33,700. The Highway 61 bridge replacement creates a unique opportunity to discuss relocation with Hudson Manufacturing Co. because it impacts their operations during and after conshuction, it brings a second source of fhnding MnDOT, to the table, and the timing coincides with a vacant industrial building. The purpose of the proposed study (attached) is to define for Hudson the benefits of relocation to the Intek plant on l0a' Street. Sebesta Blomberg is the industrial engineering firm hired by MnDOT to quantify Hudson's business disruption caused by the replacement. Staff has met with the project manager, Bob Iulgore, on the subject. This type of work is their specialty and their fanxiliar ily with flte Hudson properly and processes will shorten the time needed to complete a study. Staff has been in communication with Hudson's management. Their officers will consider the results of the study and maybe interested if it makes financial sense for them. Intek placed their 100,000 sq.ft. l0a' Street plant on dte market two weeks ago. Although it is smaller than Hudson may need, there ma} be room for adequate expansion. Intek has consolidated all its manufacturing to their plant in the Industrial Park. This study would be the first step. Assuming it is positive, the next steps may include establishing a purchase price for that part of the Hudson property remaining after right-of way for the new bridge is acquired by 1\InDOT. The EDRA would also pav Hudson for relocation costs under the unifornx relocation act. That cost would be calculated by a consultant. The option of relocation to vacant land in the Industrial Park has been considered. Square foot development numbers indicate that the cost of new construction would substantially exceed the cost of acquisition-expansion of the Intek building. Char Stark the Cit}' Finance Director, and Ehlers, EDRA's financial consultant have reviewed the concept. They would make financing recommendations depending on the progress of the concept and the identification of actual costs. S E B E S j A 2381 Roseate Rno~e: 651-634-o7~s Roseville, MN 55113-0020 Fax: 651-634-7400 April 17, 2009 Mr. Dave Osberg City Administrator City of Hastings 101 Fourth Street East Hastings, MN 55033-1955 Re: Hudson Sprayer Relocation to Intek Facility Evaluation Sebesta Blomberg Proposal No. P09001.59 Dear Mr.Osberg: Sebesta Blomberg & Associates, Inc. (Sebesta Blomberg) is pleased to present the City of Hastings with this proposal for the Hudson Sprayer Relocation to Intek Fact~ity Evaluation. Project Background The Minnesota Department of Transportation (MnDOT) is evaluating options for replacement of the Hastings river bridge. The project will impact the adjacent Hudson Spray facility operations; a manufacturer of gazden spraying products. Specifically, a portion of Hudson Sprayer's warehousing and slopping operations needs to be acquired by MnDOT. Sebesta Blomberg is working with MnDOT and Hudson Sprayer in developing scenarios of how MnDOT can acquire the needed land and the impacts on Hudson Spmyer's operations. The options being evaluated are based on Hudson Sprayer remaining in their current location. Scope of Work: Hudson Sprayer Evaluation and Relocation to Intek Facility Study It is our understanding that the City of Hastings is interested in exploring the option of Hudson Sprayer relocating to the existing Intek facility. If Hudson Sprayer would relocate, the City could then purchase and redevelop the river front property. The intent of this evaluation and study is to work with the City of Hastings to quantify to Hudson Sprayer the benefits of relocating their manufacturing plant. The benefits include: / Operational efficiencies from a redefined and more efficient manufacturing process layout. / Utility savings from occupying a building with potentially less squaze footage. / Lower deferred costs such as re-roofing costs, parking lot improvements, and bullding equipment costs. (~j S F BI= ST,~ ~jJ E3i <~~~1}~F4'e The following tasks aze required to accomplish this evaluation and study: 1. Site VisitrData Gathering: Sebesta Blomberg will visit the Hudson Sprayer site to gather information on facility program needs and the current manufacturing process. 2. Assessment of Current Operation: Sebesta Blomberg will perform a site assessment as well as meet with a representative of Hudson Sprayer to gain a general understanding of Hudson Sprayer's current overall operation as it pertains to the existing Hasdngs facility. Current operafions include; a. Parts receiving & storage b. Mise depamnent operations including; green guazd, spare pazts, show orders and returns c. Metal parts department including; welding, coating and conveying operations d. Metal and plasfic product flow including; assembly, packaging, conveying, palletizing, storage and shipping operations. 3. Evaluation of existing Intek facility. a. Existing drawings and data review. b. On-site review and data collection. 4. Conceptual Design: Based on the gained general understanding of Hodson Sprayers current operations, Sebesta Blomberg will complete a conceptual design layout based on relocating Hudson Sprayer's operations to the Intek facility. a. Conceptual design layout of operations at Intek facility will assume Future operations will be consistent with current operations. b. As part of completing a conceptual design layout of operations at the intek facility, where applicable Sebesta Blomberg will propose modifications to Hudson Sprayers operation andtor equipment layout which could result in increased operational efficiency, reduce capital and/or operaflonal cost, etc. Proposed changes to Hudson Sprayers current operation and/or equipment layout will be accomplished by conducting a design charette with Hudson Sprayer. c. Evaluation of required expansion to Intek facility. S. Review design concepts with the City of Hastings and confirm City Planning requirements. 6. Drawings: Sebesta Blomberg will prepare schematic level Drawings for the new facility including: a. Site Plan i. Building Plan ii. Parking t Paving Plan iii. Green Space b. Floor Plan i. Diagrammatic funeflonal azeas including office, toilet t locker, metal department; mist operational depaztments, pazts receiving, product assembly, packaging, conveying, palletizing, warehouse and shipping. 7. Project Narrative: Sebesta Blomberg will prepaze a written narrative of the proposed building and manufacturing operafions. Ciry of Hastings April 17, 2009 Hudson Sprayer :Evaluation and Relocation Smdy Page 7 Sebesta Blomberg Proposal No. P09001.59 SFI~F~T,~ (3 LCD .M t F 12 C a. The report will contain: i. Space program. ii. Construction scope narrative 1. description of building expansion requirements. 2. description of site construction requirements. iii. Operations design narrative 1. general description of the various departments and operations which will take place at the new facility 2. general description of parts and product flow at the new facility (flow diagram} iv. Capitol cost estimate. v. Opinion of estimated energy savings between sites. vi. Opinion of estimated operational cost savings between sites. vii. Opinion of estimated deferred cost saving between sites. Deliverables As defined above, the deliverables aze the drawings and Project Narrative. Clarifications 1. The City of Hasflngs or Intek will provide a site plan and available existing building drawings for our review. 2. Limited Civil Engineering work is included. !t is assumed that the City of Hastings will provide storm- water management services. 3. Code compliance of the newlexisting facility or facility operations is not included. 4. It is assumed that both Intek and Hudson Sprayer will be cooperative in allowing us to tour their facilities and openly discuss the merits of potential options. 5. Sebesta Elomberg is not involved in negotiafions between the City of Hastings, Intek and Hudson Sprayer. 6. All estimates involving costs are our opinion of probable costs in the Hastings area scheduled to take place in 2010. It is our intent to be within 20% of actual project costs, but we cannot guazantee this accuracy. Schedule We anticipate being able ro start of our work within five business days of notitication of acceptance of this proposal. We anficipate being able to complete this phase of work within six weeks. Fee As part of our effort to evaluatiti, facility and manufacturing modifications for Hudson Sprayer, under the scope of work being performed for MNDOT, we have gained significant knowledge and data regarding Hudson Sprayer. Ciry of Hastings April L7, 2004 Hudson Sprayer : Evaiuanon and Relocation Study Page 3 Sebesta Blomberg Proposal No. P09001.59 SFI3EST (31 C~ i~1 F F 1~ ~, Much of this information will be applicable to the scope of this project, and as such will allow us to perform this work quite efficiently. We propose to provide the services described in this proposal for a lump sum fee of $33,'700 which includes our labor and expenses. Terms and Conditions The Terms and Conditions that this work will be performed under aze based on the attached Sebesta Blomberg Terms and Conditions sheet. Once again, thank. you for the opportunity to present this proposal to the City of Hastings. We look forward to working on this challenging project. Sincerely, Sebesta Blomberg & Associates, Inc. ~ ~.- Bob Kilgore, PE Project Manager Associate Partner Randy J. Lorenz, PE Principal-in-Chazge Paztner Attaclunents: Sebesta Blomberg Terms and Conditions ciryorxa.<nngs Hudson Sprayer :Evaluation. and Relocation Snuly Sebesta Blomberg Proposal No. P09001.59 Apri117, 2004 Page 4 SF B^FAS T7~t~ Terms and Conditions Smmlard of Care: The Engineer shall perform i6 services m xwordam:e with generally accepted engineering pemtices. Savcvc are rendered wi Wout any other wart-anty, expresred or implied and [he Engineer shah berespmsible sole h` for 4s' ovm negligeme. Construcdm Cosa: The CHen shall advise ate Engineer ht wdthrg beinre design commencement of budgetary IimitaEms For [hews[ of wmbmedm. The Engineer shall emieavor in wm~k witltht such -mitazhrns and will, ifrequcsted and etckded within the scope of services, submit to the Ctiem an opinion ofprobabk: wmtrucdm costs. Thisopivim repre.ma the Engmrei chest judgment ass design professimal familiar witht~ crostrtrction itdurtry. The C-en ackmwiedges [ha[ neHler the Chen na the Engireer has cmnol ovur t}e cost of labor, materials, tnadcet mnegodafingwmlhrons, or med.ods bywhich contrae[tas determine prices for crostmction the Engineer does rto[ warrant or represent thII bidsor nelydated prices will art vary from its ophtionr: ofprobahhk emt, roil the Clientezpressly re leases any claim for damages ro Che extent actual vests excred the Engineer's r{rirdmvof probable cast. Compmsatiore Compensation for servicessha-6e in awordance wilt the Proposal Zeta. Inwices will be iscaed mmtltly for services rerdered aril reimbursable expenses andare due and payabE within ten (i ~ dap ofrew~t of the invoice. Interest of 2%per momh w-l be charged m awoma rot paid within dthty (30) days from the daze of invdce. Changes affeding the scope of work indiatedby the C-em or due to mforesem project emdi6mswih rtecesgmte modificazionof the compensation chard. Failure m Make PayrnenC Tf the C-em fails m make paymen when due the Engineer for services and expenses, the Engineer may, upm seven {7) days' written mice m Ste Ciiett4 sospend performance of services under this Agreemmt Unless paymett info-isreceived bythe Enghteer wihtin seven dap d' [he date of ate Waite, [be snyrension shall tare effect withom fudicr mace. h the evm[ of a strspensim of services, the Engineer slta- trove no -ability to ate Client fa delay or damage caused [he C-mt bwanse of such suspensim of servicex. Re-use of Dmnmenx: All documena, imluding Drawings and Spec£tcadms, preparedby the Fnynneer pursuan to this project are instmmmtsof service. Engineer shall 6e deemed rte audtor of Iltese instmmmtsofservice and retain all commm lawavd stamGOry dgha, imludmg Copyright. Trey arena intended or reprexnted robe suitable for reuse hythe Client or others m extensims of [his project a a~ other project. Any re-use withmt written verificadm oradapta[ion by ttte fittginecr fa ate specific putpmes htinnded will be n ate Client's sole risk arxl witltout liabi-ty m the Engineer, ars3 fire Ctcm shall indetmafyand hold hamrbss the Eagiteer from rill claims, damages, losses amI ez~rtses, irx:tudmg adaney's fees, arising rot of arrntu-ing therefrom Aq such verificatims or ad~tlazim wi- ettitle the Engineer tofurdter mmpensazion at rotes to be agreed upm by the Chew and [Fte Enghtea. Mutual Indemnhy. CI ientagrees That it will rkfend htdetmify and 6okl hatmlessthe Engineer, hsoRxers, director and mtploynes,fromand against any andall claims, damage; awards and cos[sof defetne caused by the negligent or dherwise wrongful acts momissim, imltding breach of a specific contractual dtty, of the C-ett a the CHan's indepea3ett wtnracmxs, agena or empkryees Engineer agrees that itwill defend. indemnify, and hold bamdes~t the Client, its officers, rHrwmrs and employees, from and agaim[any aril atlelamts, damages, awatdsand corer of defenre rausa3 bythe oeg-gen[ or nhawise wnngful aca m omission including breach ofaspecific contmcmal dory of the Engitrex, or die Engineer's iNepmdent comractors, agena or employees Hazardous Materials: The Engines and Engineer's convdrvttschall have no respmsibi 6ty for ate diswvery, presetce, handling, removal of disposal ofer exposnm of perms to hararrbus mataiaA in any format [he Projs t site, i>xl W ing 6u[nd Imtited toasbesms, asbestos products, pdychlorinated biplcnyl (PCE)or dher tonic subsrancex the Client agree; [o indemnify and hold harmless the Engineer and Engineer s waxWrana ftom amt aga¢tst all ctaims,)vrbility or costs, meNding reasmable adomey's fees and expenxes, arising out of or in arty way wnnected with tie preserve, handling, removal, abatement or dispaal of hamrdous materials is any format tfie projert site. Tfie Client further agree ro make m eLvm and hereby waives any claims or causer of action daisy type against rte Enghteer andEngineer's cmmlmns whinhmaymire rot of or relate in any way b tte presence of such hazardous materials Limirarinn of i.eral l iahilirv To [he maximum extent penni[ted bylaw, rte Cliem agces m limit the Engireer's liabdhy to ate Client. fa damages, and m all wrstrucdm etnfrae[ors or suhem[mctors m [be project elai~ng through the C-em for damages, m ttre amorist of $SO,ObO m @te Engineer's trial fee for services r®deral on are project, whichever is lM lesser, k is intmded That the 5mha[ian aPP1Y to anY and all fiabihty or causes of action however arising, regardless of the caure of action or legal theory assnaed Terminadm: The obligadm m provide further services order tltis dmamem may be mmimCed by erthe pauy upon seven (7) days wdlCtt Waite in ate evmt of subs[amial faihtre bythe otter party to perform in accadame with the terms hereof thrmgh m fault of Ste terminating party. In the even of any tetminadm, the Engiteer shall he paid for atl services rendered to the date of termination, all reimbarsable expcnws and tertninadm expenses. Successors andAssigre: Neidter the Client nor the Engineer IItaH assign, sublet or uansfer any rigtas miler or imeres[ in (isludhtg, but withmt Ihnievion mmep drat are or may become due} [his documen, or any claims thm may arise form ate performance of services order this agreanem, witMm the written mnsett of ate dhe, except to the extent that the effect of Otis limitation may be restricted by law. Unless speeifxally s[ato3 to the cmhary inany wriaen consent to an asvgnmem,no assignment will release er disthmge the assigmrfrom any dutyorresponsibifity order dts docmnmt Naririrg contained in Chisparagraph shall prevexa [tc Engireer from employing such inlepmdent emsu-ams, assmiams and subeanhac[ms, as i[ may dean appropriate m assist m dte performance of services hereunder.Nahing herein shall he conswed to give any rightx or becefia haeu~er to anyone other than the Client and the Engineer. Ndhing herein shall create acottraemal relationship wkhor causz of action m favor of a [hirdparty against either Ere Client or Ergineec AH claims a~ tarots of acdmsbetwrenthe partiex to this agreement petlairdug toac[s or failnms b ac[ shall be deemed to have awrued and the app-cable stamina oflirnitadms shall commrnce to tun tort {error than either Ste date of substattial completion for sa a failures m act occurring prior m SrdlSattial completion or the date of the issuance of tic final certificain for payment fm~ants or faimres m act accut'tmg after subsramal complain. L_ City of Hastings April 17, 2009 Hudson Sprayer :Evaluation and Reiocation Study Page 5 Sebesta Blomberg Proposal No. P04001.59 Q V ~1 M~~y Y~ G Q 3 _ ~ :. y ~- a is y S = O ~ .~ _ V S J Q % s = N Na ~ 01 S S o O ~ = ~ L 6 0 0 0 0 0 OY ~ 6 E g oou ao o n t i W ~~ <m NQ W O p V W O ? C OO NO O (O p p Y N g ~ ~ o o ov a o ° ' N W O O ti o oo o ~ o o N ° _ m N m o a g L P C o o ~ 6 ~ C O G C O O N ap G s° o° °' m~ ae° g p 5 f s°- ~ $ 4 r ~ u s $ @ e r = ~ ~ ~ o k ~ ~ ~ ~ ~ c u g m $ ~ ~ $ % n ~ g~ = @ ~ o ~ ~ -° g ~ m ~ ~ ~ ~ ~ s ~. 0 PRELIMINARY DEVELOPI\1ENT AGREEMENT THIS AGREEMENT is made and entered into this day of 2009, by and between the Hastings Economic Development and Redevelopment Authority (the "Authority") with its principal office at 101 East Fourfli Sheet, Hastings, Minnesota »033, and Stotko Speedling Construction, Inc., a Minnesota corporation (the "Developer") with its principal office at 1303 Eddy Street, Hastings, Minnesota 55033. «'ITNESSETH: WHEREAS, the Authority is the owner of certain real property (the "Redevelopment Property") located in the City of Hastings (the °City"); and WHEREAS, the Developer has presented to the Authority- a concept for the development of the Redevelopment Properly through the construction of a two story office building, parking lot, utilities and landscape improvements (the "Development'), which proposal contemplates the Authority's conveyance of the Redevelopment Property to the Developer for a nominal purchase price; and WHEREAS, the Authority's Board of Commissioners have reviewed the Developer's development concept and desires to enter into this Preliminary Development Agreement to allow flee Developer to further refine its development concept and to negotiate with the Authority concerning public participation in and approval of the proposed Development and «'HEREAS, the Authority and Developer intend to proceed with the Development if: (i) a design for the Development can be agreed upon by the Authority and the Developer; (ii) a satisfactory agreement can be reached regarding flee purchase price to be paid by the Developer for the Redevelopment Property; (iii) satisfactory financing for the Development can be secured; and (iv) the economic feasibility and soundness of the Development and other necessary preconditions have been determined to the satisfaction of the parties. NOW, THEREFORE, in consideration of the covenants and obligations of the parties hereto, the .Authority and the Developer hereby agree as follows: Section 1. Preliminary Nature of Agreement. The Aufliority and Developer agree that this Agreement is intended to be preliminary in nature. Before the Authority- and Developer can make a decision on whether to proceed with the implementation of the Developer's development concept, it will be necess:y to assemble and consider information relative to the uses, design, economics and other aspects of the Development. The purpose of this Agreement is to allow the Developer air opportunity to assemble such necessay information, to refine the above referenced development concept, and to negotiate with the Authority concerning the execution of a purchase and development agreement (the "Contract") which, if executed, will set for-flr the rights and responsibilities of the Authority and the Developer with respect to such development. 2 During the terns of this Agreement, the Authority agrees that it will not enter into or negotiate s similar agreement with any party other than the Developer for a project on the Redevelopment Property Section 2. Present Intent of Parties. It is the intention of the parties that this Agreement document their present understanding and commitments and that if the following conditions can be fulfilled to the satisfaction of the Authority and Developer that the parties will proceed in an attempt to formulate a mutually satisfactory Contract: (a) the Developer demonstrates the feasibility of dte Development as refined pursuant to this Agreement; (b) the Developer provides such documentation regarding the economic feasibility of the Development as the .Authority may wish to receive during the term of this Agreement; (c) the completion of all undertakings required by this Agreement in a satisfactory and timely manner; (d) the satisfaction of such other conditions as are determined to be appropriate by either party; and (e) the Development is generally consistent with the proposal submitted to the Authority's Bo:n'd of Commissioners on April 9, 2009, attached as EXHIBIT B The Contract (together with any other agreements entered into between the parties hereto contemporaneously there~a~ith) when executed will supersede all understandings and obligations of the parties hereunder. Section 3. Development Design. The Developer's concept for the Development on the Redevelopment Properly is preliminary in nature and must be refined before implementation. The concept as proposed involves the construction of a two story office building, parking lot, utilities and landscape improvements. Section 4. Developer Undertakings. During the teen of this Agreement the Developer shall do the following: (a) Continue to refine its site and building plans for the Development. (b) Seek to secure tenants or purchasers in the Development. (c) Submit to the Authorilu a proposed schedule for the undertaking of the Development, including widtout limitation, the timing of the closing on financing. (d) Seek to secure a commitment for financing sufficient for construction of the Development. 3 (e) Using title information and a survey provided by the Authority, update evidence of title to the Redevelopment Property and provide to the Authority any objections to title. (f) Submit to the Attthorily a project pro forma detailing all costs of the Development and the sources and uses of all funds to be raised to finance the Development, including justification for the Developer's payment of less than market value for the Redevelopment Property. (g) Undertake preliminary engineering and soil testing of the Redevelopment Property. For this purpose, the Developer and its conh'actors shall have the right to enter upon the Redevelopment Properly at reasonable times and after notice to the Authority. The Developer shall indemnify, defend and hold the Authority h:umless from and against any claims or damage, of whatsoever nature, arising out of the entry- onto the Redevelopment Property and shall repair any damage caused to the Redevelopment Properly. (i) Using environmental reports and studies provided by the Authority and such other studies and testing deemed necessary, determine the acceptability of the environmental condition of the Redevelopment Property. All of the information described above shall be prep:u'ed or collected at the sole expense of flee Developer. The Developer agrees that it will provide flee Aufliorily with quarterly status reports on progress made with respect to its activities under this Agreement. Section 5. Authority Undertakings. During the term of this .Agreement, the .Authority ~a~ill undertake the following: (a) Provide to the Developer title information based on which the Developer can update evidence of title to the Redevelopment Properly-. (b) Cause to be prepared drafts of the Contract. (c) Provide to the Developer any surveys acrd environmental reports in the possession of the Authority. (d) Analyze information provided by the Developer to determine if the conveyance of the Redevelopment Property for a purchase price that is less than m:uket value is justified. (e) Use its best efforts to cure any valid title objections made by the Developer. Section 6. Nez?otiation of Contract. During the term of this Agreement, the Authority and the Developer shall proceed with the negotiation of a Conbact relative to the Development. The decision to enter into a Contract shall be in the sole discretion of each of the parties. If prior to execution of the Contract either party determines in its sole discretion that it is not in its best 4 interest, for whatever reason, to proceed with the Development, it shall so notify the other party, whereupon this Agreement shall terminate and neither party shall have any rights or obligations to the odter or to any tltird party under or witlt respect to dtis Agreement. If the Developer determines during the term of this Agreement that undertaking the Development is not financially feasible, it will promptly notify the Attthorily of such determination and the parties will terminate this .Agreement. Section 7. Effect of Annrovals. No approval given by the .Authority hereunder or in connection herewith shall be deemed to constitute art approval of the Development for any purpose oflter titan as stated herein and dte process outlined in tltis Agreement shall not be deemed to supersede any concept review, conditional use permit, vacation, subdivision, or other zoning or planning approval process of the Attthorilu or the City relative to the development of real estate. Section 8. Payment of Costs. The Authority- agrees that it will pay its out of pocket costs incurred for attorneys and consultants relating to the preparation of this agreement and the Contract. The Developer will be responsible for all of its costs hereunder, including, but not limited to, updating evidence of title to the Redevelopment Property and environmental and soils conditions testing. The Contract anti specify the parties° responsibilities with respect to costs incurred after execution of the Contract. Section 9. Modifications. This .Agreement may be modified and the term hereof may be extended only through an-itten amendments hereto sin ed by both of the parties to this Agreement. Section 10. Termination. This Agreement shall be effective until Jttne 30, 2012. If for any reason a Contract has not been entered into by the parties by such date or any mutually approved extension dtereof; tltis Agreement shall be null and void and neidter parTy shall have any liability or obligations to the other. Section 11. Severability. If any portion of this Agreement is held invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion of this Agreement. Section 12. Notices. Notice, demand, or oflter conuuunication fiom one party to the other shall be deemed effective if sent by certified mail, postage prepaid, return receipt requested or delivered personally to a party at its address in the first paragraph of this Agreement, or at such oflter address as such party may designate in wY'iting to the other party. 5 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and the De~reloper has caused this Agreement to be duly executed in its nante and behalf on or as of the date first above ~n~ritten HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY By Its By Its STOTIiO SPEEDLING CONSTRUCTION, INC. By Its 6 EXHIBIT A Redevelopment Property Lots 1 and 2 except the west 6 feet thereof, Block 29, Town of Hastings ~YHIBIT B Developer's Proposal May 8, 2009 Re: City Project 2009-1, Industrial Park Area Improvements Spiral Boulevard, MiIIard Avenue, Industrial Court Continuation ofPub&c Hearing Monday, May 18a', 2009 -City HaII Council Chambers - 7:OOpm Dear Property Owner/Manager: The Hastings City Council will resume the Public Hearing for the Industrial Park Area Improvements project at their regular meeting on Monday, May 180'. At the April 6~' Public Hearing, in response to concerns over the proposed cost of the project, the City Council directed the Engineering Department to prepare an alternate street design that eliminated storm sewer and curb and gutter and reduced the number of trails. The revised project scope included the following major components - A "Rural" street design without curb & gutter inmost areas with minor amount of storm sewers - A single street section for Spiral Boulevard throughout the project in the center of the right-of- way Bicycle & Pedestrian Trails only on the west side of Millard Avenue from 31~` Street to Spiral Boulevard, and west on the north side of Spiral Boulevard from Millard Avenue to the drainage ravine, separated from the street by curb & gutter and a 5 footboulevard Ravine Bicycle & Pedestrian Trail Ravine restoration and ravine pond near Spiral Boulevard - Infiltration basins with trees planted into the boulevard areas Basic individual address and business name signs at each driveway A $45 per front foot assessment rate, down from $68.40 for the originally proposed design Thank you to all who attended the revised project scope presentations last week. The City greatly appreciates your feedback and participation. Overall, comments about the revised project scope were supportive, however, there remained several meeting participants who felt including curb and gutter on the project was still important to consider. In response to that concern, City staff looked into a hybrid of the designs that would include the construction of curb and gutter throughout the project, but without the extensive network of storm sewer pipes. Our analysis shows that the cost of installing curb and gutter throughout the project would result in a $2 per front foot increase in the assessment rate, up to $47 per front foot Given this relatively small increase, along with the fact that curb and gutter will improve the long term viability of the road surface and allow for more ease of maintenance, we will be recommending to Council that curb and gutter be included in the project In light of the above summary, your attendance and involvement at the public hearing is encouraged. If you have any questions or would like more information about the proposed Industrial Park street improvement project, please contact me. Sincerely, Nick Egger, P.E. City Engineer Cc: Mayor and City Council Dave Osberg, City Administrator Thomas Montgomery, Public Works Director LIST OF POSSIBLE EDRA GOALS The EDRA combines the powers and goals of an HRA and an EDA. • HRA powers are meant to facilitate the redevelopment and rehabilitation of commercial and residential property thereby stabilizing and revitalizing neighbor$oods. • ED_A powers are meant to facilitate the establishment or expansion of businesses thereby increasing the tax base and number of job opportunities. EDRA ROLE: • Provide planning and leadership for long teen commercial, residential and infrastructure improvements within redevelopment and development areas. • Form partnerships with individuals, businesses and organizations to achieve results. • Emphasize redevelopment and reuse of existing infiastructure and services where possible. Support historic preservation for housing stability, tourism development and job creation. • Emphasize creation of good jobs and an increase in the tax base as key public purposes for business assistance. • Recover costs and develop non-tax revenues to support ongoing programs as much as possible. Do~vnto~vn Redevelopment .Area 1. Transit development goal: Support the establishment of commuter service and transit- oriented developments centered on Blocks 1, 16 and 23 in cooperation with Red Roc k Corridor, 1\ITC and private developers. 2. Building preservation and improvement goal: .Assist owners to provide competitive commercial space, attractive residential rental units, maintain historic appe:uances and new buildings consistent with the downtown character and the Heart of Hastings Master Plan. 3. Redevelopment goal: Blighted, non-conforming and vacant properties cleared and reused for new consh'uction by private developers including Block 1, 2, 3, 15 and 29. V"ermillion Street Redevelopment .Area 1. Redevelopment goal: Facilitate new mixed ttse development consistent with the area plan (Vermillion Street Development Guidelines), emphasizing property at controlled intersections such as l ltlt, 15th, 18t1t and 23`d Streets. Where properties are blighted and obsolete, facilitate removal and reuse or remodeling. 2. Appe:n'ance goals: Ensure that remodeled and new commercial buildings are consistent with visual continuity and :uchitectural standards, scale, massing and materials. Facilitate new and replacement signage, lighting and landscaping to create a unified, quality impression of Vermillion Street and Hastings. 3. Access goals: Balance business access with public safety by encouraging controlled intersections, new street connections, right turn lanes, shared access and shared parking. Communil~- Housing 1. Housing presen~ation goal: Encourage the maintenance and improvement of housing of all ages and sizes though rehabilitation programs. 2. Affordable housing goal: Facilitate the creation of new housing opportunities for persons of all ages, economic groups and family sizes by cooperating with private development, public organizations and non-profits. Industrial and Business Areas 1. 1~I:uketing goal: Promote Hastings' assets as acommercial-industrial location. 2. Development goals: Complete the development of the remaining 40 acres in the existing industrial park. Facilitate an increase the amount of land available and zoned for business-industrial use in other locations. 3. Appearances: Ensure that materials, design and landscaping for new and remodeled buildings consistent with design standards. 4. Job creation: Emphasize the creation of permanent living wage jobs when considering financial assistance for business growth and expansion.