Loading...
HomeMy WebLinkAboutHEDRA II. 04-09-09 MinutesHastings 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