HomeMy WebLinkAbout11-09-10 Agenda NotesHEDRA AGENDA NOTES FOR NOVEMBER 9, 2010
MINUTES
Please see attached HEDRA Meeting minutes from October 21, 2010 for your
review and approval.
BILLS
OctoberBills
Master Card$158.70MN Nahro Conference
Bradley & Deike$336.00Linn Companies –Napa
MN Pollution Control$1,425.00Hudson –Phase I & II
Liesch Associate$5,457.82Hudson –Phase I & II
Johnson & Scofield$5,980.00Hudson –ALTA Survey
Please see attached general ledger detail for further information.
BUSINESS
A.Hudson Manufacturing– Issuance & Sale of Bonds
Northland Securities was the lowest bidder selected for purchasing the general
obligation bonds for the acquisition of H D Hudson Manufacturing.
Northland’s proposal included an estimated annual average debt service of
$230,000. HEDRA would assume the $2,855,000 debt for 20 years with a
five year call provision.
th
On October 27, HEDRA staff and Ehlers and Associates were involved in a
ratings call with Standard and Poors. HEDRA was ratedA+.
th
Northland will conduct pre-pricing on November 8 and solicit sale on
th
November 9. Further purchase information will be presented at the meeting.
ACTION – Adopt Resolution No. 9-2010 providing for the issuance and
sale of
$2,855,000taxable limited tax obligation bonds.
Pleasesee the attached resolution for further information.
B.Gardner House, LLC (Hastings Beauty School) – Amendment to Promissory
Note
st
At the October 21HEDRA meeting staff was directed to approve the request
of Gardner House, LLC (Hastings Beauty School) to amend their existing loan
agreement to lower the interest rate from 9% to 7% retroactive to June 21,
2010. Gardner House received a $58,000 loan from the HRA in June, 2005.
The loan had an initial interest rate of 4% and adjusted to 9% in June, 2010.
ACTION –Authorize signature of the Amended Promissory Note for
Gardner House, LLC.
Please see attached amendment for further information.
C.Himle Horner – Marketing RFQ Response.
Included in the packet you will find a proposal for marketing services from
Himle Horner Inc. The proposal includes a three phased plan for assisting
HEDRA in developing a marketing plan that would help the Commission
promote existing local businesses and their growth, help attract new
businesses to the community, increase awareness of what Hastings has to offer
to businesses and customers alike and contribute to the short- and long-term
economic sustainability of our community. Each of these phases has been
broken down to help make them affordable and fit within our budget. Please
be aware as you review the plan that Phase A is meant to be done with the
2010 budget and then Phase B would then be done with the 2011 budget.
Phase 1A is optional; but if the commission chooses to do it, it should be done
simultaneously with Phase A.Phase 1A it would enhance our overall
marketing plan and give us a better understand where we are starting from and
what we will need to do to get to our end result.
In the proposed 2011 budget, $60,000 has been allocated towards professional
services. The majority of funding is anticipated to conduct further planning of
the Hudson site. Marketing was not specifically allocated in the 2011 budget.
HEDRA will need to prioritize allocation of professional services funds
between Hudson, marketing, and other efforts.
ACTION –Direct Staff to further develop a marketing agreement with
Himle Horner.
Please see attached proposal for further information.
REPORTS
A.TH 61 Bridge Update
The following update was sent October 29, 2010 by City Engineer, Nick Egger:
The contractor started pile-driving activities on the north side of the river
earlier this week, which was then hampered by the weather on Tuesday and
Wednesday. They are back to it now and will continue to do this type of work
for the next several months in many places on the northern half of the project.
No pile driving will be necessary on the south side of the river because of
shallow bedrock. See the City’s FB page for a couple of photos and more
details on pile driving.
Speaking of piles, loads of it keep coming in on barges and unloaded at the
staging area, where it is being temporarily stored and inspected.
There is now a small barge anchored in the river across from the staging area.
This will part of the assembly that ultimately supports the construction of the
main span arch during the next 14 months.
Work is scheduled to occur next week to install a cofferdam on the northern
side of river to conduct pile driving work associated with the northernmost
bridge pier. A cofferdam is essentially a large tube like structure open to the
surface that provides a dry work space below the surface of a body of water.
No news on the timeline for the Hudson demolition work this week. I am
assuming they’re still working on trying to get started in November.
Xcel Energy crews continue to work on relocating their facilities near the river
behind Hudson and beneath the existing Bridge.
B.Park and Ride Lot Update
Staff is still waiting for the grant agreement and lease agreement documents from
Metropolitan Council related to the $600,000 construction grant. The Transit
Committee of City Council (Schultz, Alongi, and Hollenbeck) discussed the park
st
and ride lot at their November 1meeting. The Committee concurred with
HEDRA that relinquishing control of the property was not favored. We will
further discuss with Met Council options to change the appropriation to eliminate
ownership provision.
C. Lanoga Corporation (Pro-Build-UBC) Closure
Pro-Build has ceased operation at its 1101 Spiral Boulevard location in the
Hastings Industrial Park. Lanoga Corporation (its parent company) entered into a
business subsidy agreement with the City of Hastings on July 5, 2005. Lanoga
agreed to create certain number of jobs and stay in business for at least five years.
The jobs requirement was satisfied in 2008; however they have not fulfilled the
business stay provision. Based on our initial calculations, Lanoga owes
approximately $40,000 is subsidy repayment to the City.
ATTACHMENTS
HEDRA Minutes –October 21, 2010
General Ledger Detail –October, 2010
Resolution No. 9-2010 – Issuance and Sale of Bonds - Hudson
Promissory Note Amendment –Gardner, LLC (Hastings Beauty School)
RFQ Response – Himle Horner
Hastings Economic Development and
Redevelopment Authority
7:00 p.m. Hastings City Hall
Minutes of October 21, 2010
HEDRA Commissioners Pam Holzem, Dennis Peine,Bob Hollenbeck, Danna Elling Schultz,and
Ron Toppin,present
HEDRA Commissioners Absent: Kurt KeenaandAnthony Alongi.
Staff present: City Administrator David Osberg, Community DevelopmentDirector John Hinzman
and Community Relations Specialist Shannon Rausch.
Others Present: Eric Hesse, Consultant with Liesch Environmental
Q:
UORUM
A quorum was establishedand the meeting was called to order at 7pm with fivemembers present.
I. M
INUTES
Commissioner Toppin motioned to approve the minutes from the September 16, 2010
meetings, Commissioner Holzem seconded the motion.
Motion approved 5-0
III.B
ILLS
Commissioner Elling Schultz moved to pay the bills. Commissioner Toppin seconded
the motion.
Motion Passed 5-0
IV.B
USINESS
A. Hudson Manufacturing – Contingency Items.
HEDRA has until October 25, 2010 to waive or satisfy contingency items per the Hudson
Manufacturing Purchase Agreement. In late September, on-site environmental testing was
conducted, including:
• Installation of test pits to determine the existence of buried waste
and debris.
• Installation of groundwater monitoring wells.
• Installation of vapor probes to identify subsurface vapors
• Installation of hand auger borings inside the existing building to determine
evidence of waste or contamination beneath the building
Results were analyzed at thelab andEric Hesse from Liesch Environmental was at the
meeting toprovide a reportto the commissionon environmental testing results. Overall the
site is in better condition than anticipated, and no worse than any other site the HRA has
acquiredin the past.
There will be clean-up of the site necessary but there are several opportunities for grant
dollars to help with the cost of clean up. With the City’s involvementHEDRA will be eligible
for assistance from the County, State and Federal Government that other investors would
not have access to.
After much discussion Commissioner Toppin motioned to approve resolution No. 8 – 2010
with additional language that clearly states that Hudson will “mitigate damaged asbestos
and lead paint and hold the City and HEDRA harmless.”Commissioner Peine seconded
the motion.
Motion passed 5– 0
C. Marketing RFQ
Following the September 16th HEDRA meeting Community Relations Specialist, Shannon
Rausch continued to work withLocal Pigeononspecific items that wereleft out of their
original RFQ submission, as well as forwarding a copy to Himle HornerInc.who is part of
the consulting team that MN/DOT has brought on board to work on the
Communication/Public Relation portion of the bridge project.
Community Relations Specialist Shannon Rausch shared with the commission what she
has learned following discussions with both Local Pigeon and Himle Horner.
The Commissioners directed staff to end conversations with Local Pigeon and continue
working with Himle Horner to see what kind of proposal they can present at the November
meeting.
D.Minnesota Main Street Program
The Preservation Alliance of Minnesota has launched the Minnesota Main Street Program
to assist in commercial district revitalization. The alliance is accepting applications to
participate in the program. The annual membership fee is $2,000. Members can receive up
to $6,400 in technical assistance and training. Hastings participated in an earlier version of
the Main Street Program during the 1980’s.
Commissioner Topping movedto authorize staff tosubmitanapplication and to pay the fee
with part of the $10,000 budgeted for 2010 marketing efforts.Commissioner Holzem
seconded the motion.
Motion passed 5-0
E.Hastings Beauty School – Request to adjust interest rate
Dan Lynch of Hastings Beauty School, 221 East 2nd Street (Gardner House) has
submitted a request to adjust the interest rate on his $58,000 promissory note issued by
the HRA on June 21, 2005. The note had an initial interest rate of 4% per annum, and
adjusted to 9% on June 21, 2010. Mr. Lynch seeks a lower rate and has suggested 7%.
Commissioner Hollenbeck emphasized what a wonderful job Mr. Lynch has done in
restoring this property.
Commissioner Holzem motioned to accept Mr. Lynch’s recommended interest rate of
7%, Commissioner Topping seconded the motion.
Motion Passed 5-0
F. Hastings Beauty School – Skateboard Damage
Dan Lynch of Hastings Beauty School, 221 East 2nd Street (Gardiner House) has
submitted a letter asking for assistance to alleviate damage caused tohis structure
by skateboarders. Currently HEDRA doesnot have commercial grant funds
specifically allocated within the budgetthat could be used to assist Mr. Lynch.
The Commission discussed various options and suggest Mr. Lynch look into adding
some type of wrought iron fence to stop skate boarders from being able to jump onto
the window sills and thus prevent the damage which is currently occurring. The
commission suggested that then perhaps there possibly would besome type of grant
available that he could apply for with HEDRA’s assistance.
IV.R
EPORTS
A. Hudson Manufacturing Bond Sale
HEDRA has received two responses to our bond sale proposal. It appears our annual debt
service on the 20 year general obligation bonds will be less than originally anticipated. We
had planned on a $260,000 annual debt payment; the lowest response submitted had an
annual average debt service payment of $230,000. HEDRA isscheduled to take final action
on the bond sale at its November 9th meeting.
B. TH 61 Bridge Update
The September 22nd groundbreaking and open house attracted about 250 people.
Attendees were given the opportunity to review bridge lighting and colors, as well as the
mural located on the 2nd Street southabutment. The Visual Quality Team met on October
13th to discuss bridge lighting and color selection.Those attending the open house
preferred a blue color. The VQT discussed whether a bold color orlighter color was
preferable. The bridge design staff will present updated color rendering at the next VQT
meeting and have discussed having the community vote on three final colors.
C. Park and Ride Lot Update
City staff met with Metropolitan Council to discuss the grant agreement for use of the
$600,000 allocation from the Red Rock Corridor. Metropolitan Council was designated as
the fund disburser. The language of the original allocation requires Met Council to be owner
of the property. City Staff voiced its concern over conveying the property.Community
Development Director isstill awaiting the actual grant agreement.Commissioners agreed
they may consider a Partnership with Met Council but they are not interested in turning over
the ownership of the property.
A:
DJOURNMENT
Commissioner Toppinmoved to adjourn at 8:40 p.m., Commissioner Holzemseconded.
Motion Passed 5-0
TUESDAY,November 9, 2010
Next meeting is scheduled for at 6:00pm in the Council
Chambers.
Shannon M. Rausch,
HEDRA Secretary