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HomeMy WebLinkAboutHEDRA 10-08-09 Packet HASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY . Agenda for October 8, 2009, 6:00 pm City Hall City Council Chamber I. Quorum. II. Minutes of September 10, 2009 III. Bills IV. Business A. Hudson Manufacturing B. Future capital needs. C. Assessment for 2008 Downtown Public Improvements. D. Process for future Commission appointments V. Reports and Information A. Industrial Park Reconstruction update Land sale update B. Downtown Bridge replacement update C. Vermillion D. Other activity VI. Adjourn AGENDA NOTES 10-8-09 BILLS Ehlers $95.00 Hudson fiscal svcs Sebasta Blomberg $6,740.00 Intek Study - final BUSINESS A. Hudson Manufacturing MnDOT has made an offer to Hudson. The Intek feasibility report has been completed by Sebesta Blomberg and will be emailed to the Commissioners. Staff will report on recent developments and possible next steps for discussion and direction. B. Capital budget discussion Char Stark the Finance Director and EDRA Assistant Treasurer, will lead a discussion of budget planning for the future, specifically for the EDA levy. The revenue crunch for 2010 and 2011 makes EDA levy proposals for development funds more of a challenge for the Council. Ms. Stark suggests it would help make the case if the EDRA proposed a capital fund with specific purposes and timelines and an annual levy amount needed to achieve those goals each year. Other City departments establish these funds in collaboration with the Council Finance Committee. An EDA levy is a way for the City to fund economic development activities. Specifically economic or business development projects are not an authorized use of HRA levy funds. 1. A capital fund defined. 2. Consider the purposes of a capital fund: From the August 6, 2009 Workshop notes on business development: Business Park strategy, new and existing. Existing park has location issues. A new park should be on the west side of the City, closer to the ¼ airport and access to the western metro area. Sale of some existing industrial land could fund acquisition or development of a new park. ¼ Need to get started on location right away. New business park could be anywhere on west side. ¼ Public look at several options for the new location ¼ Consider whether the City needs to own it or can work with an owner ¼ A new park must have up-to-date and dependable communications and power. ¼ Clusters and niches are usually supported by nearby workforce training and education. There are ¼ four schools within 45 minutes of Hastings. Need to know what their specialties are. Marketing needs to be electronic as well. ¼ Business assistance. SBA is doing all it can to help business financing at this time. A loan program may not be needed ¼ at this time. A program has to be carefully crafted to avoid unnecessary duplication and drain on resources. ¼ Criteria need to be specific and objective. Budgeting needs to be economical. Commercial lending should not be emphasized, but special cases where other resources are not ¼ available will be considered. Communications. Rausch presented the CityImage marketing proposal for discussion. CityImages proposal is a good approach. The feedback study will be useful. ¼ General Hastings promotion: what to market and to whom? ¼ Avoid duplicating Convention & Visitors (Chamber of Commerce) marketing. ¼ Marketing is switching to electronic media. Print advertising may be irrelevant. Attending ¼ conventions and associations may also be helpful. Paying for marketing is an EDA role. Some former IP funds are available. ¼ Workshop Summary and direction Poll on priorities, 1 is high, 5 low. Business park development, focus on new location: 1.1 Commercial district revitalization, focus on Vermillion: 2.0 Communications: 2.3 Housing maintenance programs: 3.6 Business loan program: 4.8 Transit: continue existing role and support 3. What would “capital” funds be used for? 4. What amount would be needed? 5. Are there windows of opportunity or target dates to meet? 6. Are there financial resources other than the levy? 7. What levy amount should be requested annually? C. Assessment for 2008 Public Improvements EDRA property on both sides of Tyler will be assessed for public improvements completed in 2008. The assessment hearing and action will on November 2. Following the hearing, if the EDRA Board approves, the assessment can be transferred from EDRA to the Construction fund. The assessment totals $74,917.18. This amount was anticipated and included in the 2009 budget. The work included the following: The new water main from Vermillion to Lea, through the Park and Block 1, to ¼ serve the East side and the EDRA development parcels. Reconstruction of Ramsey Street, removal of the street north of the alley and ¼ regrading the east side of EDRA property on Lot 3. Reconstruction of Tyler Street from Second under the railroad to Lea. ¼ Trial connection from the Park to Bailly Street. ¼ Modifications to qualify for the Quiet Zone. ¼ ACTION: Approve payment of the assessment. D. Process for commissioner appointments Commissioner Martodam’s term ends December 31, 2009 and he has indicated he will not be requesting reappointment. His first appointment to the HRA was in August, 1993. He served the HRA and community well in some drawn-out and sometimes difficult planning efforts, negotiations and proposals and participated in many projects that will benefit Hastings and its citizens for years to come. The vacancy will be filled by appointment by the Mayor with the consent of the City Council. The authority may advertise, interview and recommend the appointment of citizens (not council members) to the Mayor and Council. One question is whether the entire board, or a committee of three members, should do the interviews. We assume that staff could be members of an interview team. The term will be for six years. The documents provide that one of the commissioners may be a non-resident of Hastings. Staff recommends advertising in the Star Gazette and on the city web site during October, inviting applicants to interview in November and forwarding a recommendation by early December. We assume that applications may be mailed to persons who have expressed interest in the past. ACTION: Authorize advertisement for comminssion applicants. Ø¿­¬·²¹­ ÛÜÎß Hastings Economic Development and Redevelopment Authority 6:00 p.m. Hastings City Hall Minutes of September 10, 2009 HEDRA Commissioners Pam Holzem, Bob Hollenbeck, Ron Toppin, Dennis Martodam and Danna Elling Schultz present. Commissioners Kurt Keena and Anthony Alongi absent Staff present: Hastings EDRA Director John Grossman, Planning Director John Hinzman, and Community Relations Specialist Shannon Rausch, I. Meeting called to order at 6:00pm II. Approval of Minutes Minutes from the special meeting on August 6 and August 13, 2009 were presented, Commissioner Toppin moved to approve the minutes with no changes. Hollenbeck seconded the motion; Motion passed 6-0 III. Bills Commissioner Hollenbeck moved to pay the bills. Martodam seconded the motion. Motion passed 5-0 IV. Business A. Residential Loan Approval. Marcia Biermann was able to get her mortgage restructured in way which makes it affordable to her income level, and is now requesting an EDRA residential and emergency loan to pay the assessment. Commissioner Elling Schultz motioned that the emergency loan be made to the resident since she was able to meet all of the conditions that the commission set in January, and that the loan be split so that $4,000 is a deferred loan, and the remaining + be forgivable. Commissioner Martodam seconded. Motion passed 6-0 B. Downtown Tree Replacement Authorization HEDRA is asked to fund the removal and replacement of three street trees on Sibley rd Street, between 3 and the alley to the north. The cost is estimated to be under $11,500. These three are potential hazards and should have been removed some time ago. Parks and Public Works do not have the funds to do so. These street trees were installed on Sibley during the last downtown street project, in 1986. Two have already been removed in the last few years (one destroyed the sidewalk and the other caused the sewer line to fail.) One was at HRA expense and the other at the property owners’ expense. Three of the eight remaining trees have gotten much bigger than expected or desired. They are between two and three stories tall and over 12” in diameter. Hastings EDRA: 09/10/09 1 Tom Montgomery, Public Works Director, is planning major maintenance of downtown streets and sidewalks, perhaps in 2011 or 2012. He would replace the four remaining trees at that time and include them in the cost of street improvement projects during that year. Staff is asking for the Commission to approve funding the replacement of these three trees, under Parks Department supervision. Including the removal, concrete work, tree grate and a new tree each will cost $3,700. Commissioner Hollenbeck stepped down and did not participate in discussion and voting on the issue because he is a property owner of one of the buildings these trees are in front of. Commissioner Toppin moved approval to replace the three trees on Sibley Street but emphasized that we make it clear to the public why we are removing what appear to be three mature, healthy trees. Commissioner Keena seconded the motion. Motion passed 4-0-1 C. City-NSP Lease Approval Consider consent for sublease of small space inside 412 4th Street, former UBC building owned by EDRA, by City to Northern States Power. Terms; Length of lease: Same as the City: expires November 7, 2013. Notification of termination: Same as the City, 90 day notification period. Rent: $3,000 per year, all included except phone. The $250 monthly payment would be passed through to the EDRA. Liability: Lease will include hold harmless, liability and insurance provisions. The building is also insured under the City’s master policy. Commissioner Elling Schultz moved approval to sublease space to Northern States th Power at 412 E 4 Street, Commissioner Toppin seconded the motion. Motion passed 5-0 D. Lab Boy (Dental Arts) Land Credit Recommendation The Hastings EDRA discussed and recommends the Sale of one acre of Industrial park land to Lab Boy LLC with the following terms: 1. The City will deed one acre valued at $71,874 to Lab Boy Enterprizes LLC for a price of $1.00. The balance of the value will be deferred for five years. 2. Lab Boy commits to have 12 jobs, employees of Red Wing Dental, on the site within 2 years. New hires will be a minimum of $10.00 an hour. Facilities now in Cottage Grove and Red Wing, are to be combined in Hastings. They anticipate 15 jobs in five years. 3. Laboy proposes to build an office-lab of about 5,000 sf at a cost of $414,300, and with interior build out $569,600. With building, parking and driveway, the improvements will exceed 20% lot coverage. Red Wing Dental will be the only tenant. 4. Lab Boy commits to remain in business in Hastings for five years. 5. If in five years, the credits do not exceed the deferred land value, or if the business ceases to operate in Hastings, Lab Boy will owe a prorated amount of the land value to the City and that amount could be assessed if necessary. Hastings EDRA: 09/10/09 2 Commissioner Martodam moved to recommend the sale based on the terms above to the City Council, Hollenbeck seconded the motion. Motion passed 5-0 V. Reports: Industrial Park: Construction is moving along well, and on schedule. No complaints from businesses so far. Sign has been revised based on comments received. Commissioner Hollenbeck motioned to approved the revised plan as presented, Commissioner Toppin seconded the motion. Motion Passed 5-0 Downtown: Hudson: The consultant is completing the study of the costs and improvements necessary for Hudson to fit into the Intek Building. Mn/DOT has not yet made Hudson their offer. At this point we expect that 2010 Information on Supplemental Life Insurance Rate Available through Minnesota Life in mid-October. Bridge: Visual Quality Team is wrapping up and should be making their recommendations to Mn/DOT by the end of October. Vermillion Street: Linn Company and P&L (midtown) have nothing new at this time, both are looking for tenants. Other Activities: Riverbend Pet Hospital: Staff has explored the use of TCCCF funding to close the $80,000 gap in funding the Riverbend Pet Hospital project. The loan would be subordinate to SBA and primary bank; the amount of equity and collateral available would not meet the terms for TCCCF funding. It appears the terms for SBA loans are more competitive than TCCCF. Staff will be reviewing the benefits of remaining within the TCCCF program or to “cash out” and give assistance in other ways. Staff will look into whether or not it is worth remaining in the TCCCF, ort possibly withdrawing and using the funds in other ways. Staff will also look at how TCCCF has helped businesses in other communities. Budget: Finance Director, Char Stark recommend establishing a “capital fund.” to establish a fund for future business development projects. VI. Adjournment: Commissioner Toppin moved to adjourn at 6:45 p.m., Commissioner Hollenbeck seconded; Motion passed 6-0 Next meeting is scheduled for October 8, 2009 at 6:00pm in the Council Chambers. _____________________________ Shannon M. Rausch, EDRA Secretary Hastings EDRA: 09/10/09 3 HASTINGS HOUSING & REDEVELOPMENT AUTHORITY . Minutes of September 10, 2009, 6:00 p.m City Hall City Council Chamber I. Quorum: Commissioners Hollenbeck, Holzem, Martodam and Toppin present; Keena absent. Staff: Grossman, Hinzman and Rausch. Meeting called to order by Chairwoman Holzem. II. Minutes of July 9, 2009: Hollenbeck moved and Toppin seconded approval; motion carried. III. Business Martodam moved Resolution 4-2009 transferring administration of Hastings Tax Increment Districts #3 and #4 to the Economic Development and Redevelopment Authority. Second by Toppin; motion carried, 4-0. IV. Reports Grossman reported that having transferred all agreements, assets and obligations to the EDRA, the work of the HRA is now complete. The City Council will hold a public hearing and st take action on a resolution of dissolution of the HRA at the September 21 council meeting. The first meeting of the HRA Board was on September 23, 1971. V. Adjourn: Toppin moved and Hollenbeck seconded adjournment; motion carried, 4-0. Project 2008-2, 2008 Downtown Street & Watermain Improvements Assessment Rate A $60.00 Total Property OwnerAssessment RateAssessmentCorner LotNote parcel # : EDRA of Hastings193215002002$4,917.18 th 101 4 Street E legal description Hastings MN 55033-2003 Property Address st All of Lot 1 & E 1ft of Lot 2 and that part of 1 Street now vacated, Block 2, Town of Hastings N/A parcel # : EDRA of Hastings 196395001000$16,231.88Assessed on area basis compared to all of former th 101 4 Street E Block 1 legal description Hastings MN 55033-2003 Property Address Outlot A, Riverfront Addition N/A parcel # : EDRA of Hastings 196395002000$34,239.13Assessed on area basis compared to all of former th 101 4 Street E Block 1 legal description Hastings MN 55033-2003 Property Address Outlot B, Riverfront Addition N/A parcel # : EDRA of Hastings 196395003000$19,528.99 XAssessed on area basis compared to all of former th 101 4 Street E Block 1 legal description Hastings MN 55033-2003 Property Address Outlot C, Riverfront Addition N/A parcel # : Allen Most 193215006002A$2,100.00X Spiral Foods/3 Rivers Technology legal description nd 301 2 Street E Hastings MN 55033-2003All of Lot 5 & Part of Lot 6 Lying W of Line Com 3.75in E of SW Cor Lot 7 W 28.6ft to Point on S line of Lot 6 & Property Address Point of Beg N to Point on N Line of Lot 6 103ft E of NW Cor Lot 5, Block 2, Town of Hastings 301 2nd Street E parcel # : Gardner House 193215008103A$2,100.00 X Hastings Beauty School legal description nd 221 2 Street E Hastings MN 55033-2003E 21 ft of Lot 7 & All of Lot 8, Block 3 Property Address 221 2nd Street E Properties Assessed:6Assessments$79,117.18 111 PRELIMINARY LAYOUT