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HomeMy WebLinkAboutHEDRA 09-10-09 MinutesØ¿­¬·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