HomeMy WebLinkAbout20101220 - VIII-B-2City Council Memorandum
To: Mayor Hicks & City Councilmembers
From:John Hinzman, Community Development Director
Date:December 20, 2010
Item:Authorize Submittal of Dakota CDA Grant –Hudson Demolition
Council Action Requested:
The City Council is asked to adopt the attached resolution authoring submittal of a $217,000
Dakota Community Development Agency (CDA) grant to assist with the potential demolition
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of portions of the Hudson Sprayers Building at 200 West 2Street.
Background Information:
The Hastings Economic Development and Redevelopment Authority (HEDRA)
purchased the Hudson Building onDecember 2, 2010. Hudson will remain as a tenant in
the building through 2011.
HEDRA has discussed future use of the property including scenarios outlined in the 2003
Heart of Hastings Plan. It appears removal of the newer warehouse portions closest to the
Mississippi River is likely. MN DOT is conducting a re-use study of the pre 1927 portion
of the building to determine costs and market. Their report will assist HEDRA and the
City in determining future use of the building.
Financial Impact:
Liesch Associateshas estimated the cost of demolition (including environmental) to be
$434,000. Upon award of the grantthe City would receive half of the cost from the CDA.
The grant requires the City to provide a 1:1 match for the grant. The City is exploring other
grant programs to provide the necessary $217,000 match for this grant.
Advisory Commission Discussion:
N\A
Council Committee Discussion:
N\A
Attachments:
Resolution
Grant Application
City of Hastings
101 Fourth Street EastHastings, MN 55033-1955p:651-480-2350f:651-437-7082www.ci.hastings.mn.us
HASTINGS CITY COUNCIL
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO. ___________
PPROVAL TO SUBMIT APPLICATION FOR FUNDING TO THE DAKOTA COUNTY CDA
A
REDEVELOPMENT INCENTIVE GRANT PROGRAM
WHEREAS
, the City of Hastingshas identified a proposed project within the City that meets the
Dakota County Community Development Agency (CDA) Redevelopment Incentive Grant program’s
purposes and criteria; and
WHEREAS
,the Cityhas established a Redevelopment Plan of which the proposed project is a
component; and
WHEREAS
,the Cityhas the capability and capacity to ensure the proposed project be
completed and administered within the Redevelopment Incentive Grant program guidelines; and
WHEREAS
,the Cityhas the legal authority to apply for financial assistance; and
WHEREAS
,the Cityis supportive of affordable housingand of the CDA’s mission, to improve
the lives of Dakota County residents through affordable housing and community development.
NOW THEREFORE BE IT RESOLVED
that the City of Hastings approves the application
for funding from the Dakota County CDA Redevelopment Incentive Grant program.
BE IT FURTHER RESOLVED
that upon approval of its application by the Dakota County
CDA, David Osberg, the City Administrator,is hereby authorized to execute such agreements as are
necessary to receive and use the funding for the proposed project.
ATTEST:
_______________________________
Paul Hicks, Mayor
_______________________________
Melanie Mesko Lee, City Clerk
Redevelopment Incentive Grant Application
General Information
Project Name:H. D. Hudson Manufacturing Demolition
Applicant City:City of Hastings
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Applicant Address:101 East 4Street, Hastings, Minnesota 55033
Application/Project Contact:John Hinzman, Community DevelopmentDirector
Contact Email Address:Jhinzman@ci.hastings.mn.us
Phone Number: (651) 480-2378Fax Number: (651) 437-7082
Authorized Official(s) for Execution of Contracts (name and title): David Osberg, City Administrator
How much funding are you requesting?$217,000
Project Site Information
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Site Address(es):200West 2Street, Hastings, Minnesota 55033
Acreage of Site:3.83 acresNumber of Parcels:8
Is the site publicly or privately owned?Publiclyowned
Current Site Owner(s): Hastings Economic Development and Redevelopment Authority (HEDRA)
Current Appraised or Assessed Value of the Site: $4,000,000 per Integra Realty Resources appraisal
dated November 1, 2009.
Projected appraised or Assessed Value of the Site after redevelopment:$9,756,209.12($2015)
Attach the appraisal or assessor’s current and projected values.
After redevelopment is complete, will the site be publicly or privately owned? The property would be
publicly owned, with portions sold off for private development.
Post-redevelopment Site Owner(s):HEDRAand future private developer\home owners.
When has/will the acquisition be completed?HEDRA acquired the Hudson Property on December 2,
2010. Hudson will remain in the building during aportion of 2011.
Legal Description of Site (may be separate attachment):Lots 1 through 8, Block 5; and Lots 1 through
9, Block 6, TOWN OF HASTINGS, Dakota County, Minnesota.
Provide a location map, photos, and current and projected site plans. Maps should include property
boundaries, north arrow, and bar scale.
Attach a brief history of the site including previous uses, activities, prior or existing contamination, and
other attempts at redevelopment.
How many residential buildings are on site? 0Commercial buildings? 1
How many residential buildings are vacant? 0Commercial buildings? 0
Project Information
Describe the city’s goals and need for this project.
Redevelopment of the last industrial facility along the Mississippi River in Hastingsinto a mixed use
development of housing and commercial businesses.
Preservation of the historic pre 1927 warehouse building.
Demolition of 97,000 s.f. of warehouse facilities located only 50 feet from the Mississippi River.
Connection of Levee Park to Jaycee Park\Lake Rebecca Park completing a 1.5 mile long continuous
park along the Mississippi River.
Preservation of 30-80manufacturing jobs within the City of Hastings.
Re-use of the vacant Intek Manufacturing building via the relocation of H.D. Hudson.
Total project demolition expenses exceedthe City’s ability to bond for the project.
MnDOT’s payment for partial acquisition of H.D. Hudson’s warehouse along with construction
damages provides a once in a lifetime opportunity to allow Hudson to improve their facilities
elsewhere in Hastingsand to secure redevelopment of a key riverfront parcel.
The Hudson site is guided for mixed use development in the Comprehensive Plan.
Industrial use of the Hudson site is inconsistent with the Mississippi National River and Recreation
Area (MNRRA) as determined by the National Parks Service.
Redevelopment of the Hudson site provides an opportunity to expand the mixed use nature of
downtown Hastings west under TH 61.
The City is amenable to inclusion of affordable units within the redevelopment project.
Attach a detailed description the redevelopment project.
Attach a site plan, vicinity map, and elevations or drawings of proposed redevelopment.
Has an end user committed to redevelopment of site? No
Attach letter of commitment.
Describe how the project will make more efficient use of the site.
Over the last 25 years the City has purchased and removed all industrial manufacturing facilities along
the Mississippi Riverfrontto make use for park land and mixed use development complementing the
historic downtown. Hudson Manufacturing is the last industrial building along the riverfront. The 2030
Comprehensive Plan (produced in 2009) guides the property for mixed use development to serve as an
extension of downtown Hastings. The 2003Heart of Hastings Downtown Master Plan directs the City to
use the bridge replacement project as a catalyst for the redevelopment of Hudson Manufacturing site
including re-use of the historic portions of the building, removal ofwarehouses next to the river,
development of park land, and future construction of housing.
Describe the larger redevelopment project to which this project will be a part. Include details of
anticipated businesses, housing units, and other proposed components. Attach copy of Redevelopment
Plan.
The Hudson property was part of the 2003 Heart of Hastings Master Plan encompassing downtown
Hastings and surrounding neighborhoods. The plan seeks to improve upon the strong character and
vitality of the existing historic downtown through redevelopment of key parcels (including Hudson).
Guiding Principles of the plan include diversifying visitor destinations with a strong focus on the
riverfront, using the new TH 61 Bridgeto strengthen character and functionof downtown, and preparing
for the integration as a commuter rail hub.
The Heart of Hastings Plan suggests adaptively re-using the historic, pre-1927 portion of the Hudson
building for medium density housing, and removing the more recent building additions to open up the
riverfront for park land. An architecturally compatiblewest wing could be added to the building though
would house structured parking and additional living units. Parts of the site could also be used for
retail\mixed use to tie the site to adjacent downtown retail.
Describe redevelopment phase(s) already completed and/or other adjacent development/redevelopment.
MnDOT began construction ofthe TH 61 Bridgein 2010. As part of the bridge construction, MnDOT
has purchased the eastern 40,000 s.f. wing of the Hudson plant and have begun demolition of that
portion. HEDRA closed on the purchase of the remaining property in December, 2010(with assistance
from a previous Dakota CDA Redevelopment Incentive Grant). Hudson will remain asa tenant in the
building through 2011 as they transfer operations to the new facility. MnDOT and the City are
conducting a reuse study of the pre-1927 portion of the building to determine costs and market for
rehabilitation. Liesch Associates has conducted a Phase I and Phase II environmental investigation of
the site. HEDRA has enrolled in the Minnesota Pollution Control Agency’s (PCA) Voluntary
Investigation Cleanup (VIC) program. PCA has approved the Phase II work plan and has issued a No
Association Determinationletter to HEDRA.
Other projects resulting from the Heart of Hastings Plan include the acquisition of the UBC
Lumberyard, reconstruction of downtown streets and utilities(with assistance from a previous Dakota
CDA Redevelopment Incentive Grant), extension of the downtown riverfront trail, addition of short term
boat docking, construction of riverfront interpretive signage, approval of the 49 unit Three Rivers Place
residential condo building, completion of the Levee Park Plan, and initiation of the Red Rock Corridor
Commuter Rail Station Area Study.
Describe how owners, tenants, and businesses will be temporarily or permanently relocated. Attach
relocation plan, if applicable.
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Hudson Manufacturing has purchased the vacant Intek building at 800 10Street East in Hastings.
Hudson will transfer its operations to the new facility by December 2011. There are no residential units
affected through acquisition of Hudson.
Itemizeall other funding sources.
Source of FundsAmountCommittedPending
HEDRA Reserve Funds (or in kind grants)$217,000
Dakota CDA Grant$217,000
Total:$434,000
Itemize project expenses.Be as detailed as possible.
Funding
Itemized Use of Funds/Expenses Costs
Source
HEDRA, in
kind grants,
Non-Destructive Renovation Survey of remaining building$9,000
Dakota CDA
Grant
HEDRA, in
kind grants,
Demolition of post 1927 portion of building$425,000
Dakota CDA
Grant
Total:$434,000
Are any zoning amendments or variances needed? YesWhat is the status? Application will follow
completion of reuse study.
Is a comprehensive plan amendment required? NoWhat is the status? Not needed.
Is an environmental review required? YesWhat is the status? Phase I completed, Phase II work plan
approved by PCA.
Will a market or feasibility study be performed? YesWhat is the status?To be completed as part of
reuse study of pre 1927 portion of the building.
Attach a project timeline with all actions, phases and anticipated dates.
Indicate the number of housing units planned in the project. Attach separate sheet if necessary.
Total # of # of Owner # of Rental Proposed Rents/ Sales
UnitsUnitsUnitsPrices
Single Family0
Townhouse0
Apartments/Condominiums4545$160,000
Duplexes0
Other: 0
Will any existing affordable housing be demolished? No
If yes, please explain.
Will there be any mechanisms to ensure long-term affordability? No
If yes, please describe.
What are the current property taxes for the projectsite? $76,304Pay Year 2009
What will the estimated property tax be after redevelopment? $159,805Pay Year 2015
How was this figure determined? Dakota County Property Tax Estimator was used to determine taxes
for full project construction in 2010. 2015 figures were estimated assuming no change to tax rate and
0% growth in value in 2010-12, and 3% annual growth from 2013-2015.
Who determined it?City of Hastings
Project the number of new jobs created after redevelopment. Total new jobs = 28FTEs.
Number of new jobs with wages greater than $15.00 per hour = 14
Project the number of jobs retained after redevelopment. Total retained jobs = 60FTEs.
Number of retained jobs with wages greater than $15.00 per hour =
Has the project site been found or suspected to be contaminated? Yes, a Phase I investigationhas been
completed. PCA has approved the Phase II work plan..
Does your project include the clean up of contaminated soils, hazardous waste or materials?Yes, per
the Phase II work plan.
Attach detailed information on the type of clean up, what measures have been taken to address the
contamination, consultant reports, and/or Response Action Plan.
Describe other positive environmental impacts the project will have.
The project will remove 97,000 s.f. of warehouse facilities located only 50 feet from the Mississippi
River and convert land into park and open space. The new green space would provide a link between
two existing Mississippi River parks (Levee Park and Jaycee Park). The Heart of Hastings Master Plan
identifies the opportunity to use newly acquired green space for natural pretreatment of stormwater.
Describe how the project incorporates smart growth concepts, including proximity to public transit,
pedestrian-friendly design, maximizing green space, mixed land uses, and community building
elements.
The redevelopment of Hudson would serve an ideal demonstration project for smart growth. The project
would transform an industrial site located next to a National Recreation Area and between two National
Register Historic Districts into a mixed use extension of the downtown. Green space along the
Mississippi River would be reclaimed through demolition of warehouse buildings providing further park
space and linking existing parks. The existing Mississippi River Trail would be widened through the
property and would nolonger have to compete with Hudson loading dock traffic. The project is located
within blocks of the proposed Red Rock Commuter Rail Line Station. Red Rock would provide transit
access to Union Depot in St. Paul.
Project Summary
Demolitionof H. D. Hudson Manufacturing Company
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200 West 2Street –Hastings
Request
The City of Hastings seeks $217,000from the Dakota County Community Development
Agency’s Redevelopment Incentive Grant. The funds would be used in conjunctionwith
other sources to demolish portions of the H.D. Hudson Manufacturing Company
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building at 200 West 2Street in Hastings. Demolition of the 1948 and 1973 additions
(approximately 76,800 s.f.) closest to the river would be accomplished. Theeastern 1966
addition (approximately 24,340 s.f.) has been demolished by MnDot as part of the TH 61
Mississippi River Bridge Project. The remaining pre 1927 sections of the building
(approximately 73,000) are not included and are part of a reuse study conducted by the
City and MnDOT. Liesch Associates has estimated the cost for demolition and associated
environmentals to be $434,000. Please see attached H D Hudson Floor Plan for further
information.
Hudson Manufacturing employs 30-80 people in its 167,000 square foot facility. The
original building dates to 1914 and has had many additions over the years. The building
is located on a 4.43 acre parcel and 50 feet from the Mississippi River in downtown
Hastings. Hudson has been in operation on its existing site for over 100 years.
Relocation to Vacant Intek Manufacturing Building
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Hudson has purchased a vacant 97,000 s.f. facility at 800 10Street East in Hastings
formerly owned by Intek Manufacturing. Hastings Economic Development and
Redevelopment Authority (HEDRA) and Hudson has entered into a post occupancy
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agreement for use of the 200 West 2Street property until December 2011 to allow for
transition into the new facility.
The City hired Sebesta Blomberg Engineering to analyze the relocation of Hudson
Manufacturing to the Intek sitebased on space, operational needs, and project cost.The
study involved significant analysis of both the existing Hudson site and Intek. Sebesta
Blomberg concluded that the a 29,000 s.f. addition to the Intek site could accommodate
Hudson Manufacturing’sneeds.
History of Long Range Planning
Over the last 25 years the City has purchased and removed all industrial manufacturing
facilities along the Mississippi Riverfront, except Hudson Manufacturing. The 2030
Comprehensive Plan(approved in 2010)guides the property for mixed use development
to serve as an extension of downtown Hastings. The 2002 Heart of Hastings Downtown
Master Plan directs the City to use the bridge replacement project as a catalyst for the
redevelopment of the Hudson Manufacturing site including re-use of the historic portions
of the building, removal of newer warehouses next to the river, development of park land,
and future construction of housing.
Refinement of Concept Plan for Redevelopment
The City of Hastings is refiningplans for the redevelopment of the Hudson Site based
upon the Heart of Hastings Master Plan. The 73,000s.f., pre-1927 building would be
reused for mixed use residential and commercial development. The basement would be
used for parking;the first floor would be split between commercial and residential. The
second floor would be all residential. The building could house 25 residential units and
14,200 s.f. of commercial space. A 39,000 s.f. two story building could be constructed
directly to the west containing and additional 20 residential units.
Cost of Demolition
Liesch Associates has estimated the cost of demolition to be $425,000 and associated
environmental work to be an additional $9,000. Please see attached estimate.
Project of National Significance
Hudson Manufacturing is surrounded on three sides by areas of national significance.
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The site is located between the West 2Street and East 2Street National Historic
Districts and the National ParksService’s Mississippi River National River and
Recreation Area. The pre 1927 portion of the building is eligible to be listed on the
National Register of Historic Places.
Site History
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200 West 2 Street – Hastings
H. D. Hudson Manufacturing Company
Hudson Manufacturing has been in operation in Hastings for over 100 years. The
Hastings plant manufactures sprayers for use in lawn and garden, industrial, agriculture,
pest control, turf care, and public health. Site history is documented below:
1884-1909 – Pre Hudson Manufacturing
Prior to the establishment of the H. D. Hudson operation in 1909, the parcels comprising
the facility included a woodworks factor, a hotel, a farm implement company, and grain
warehouses and elevators.
1909-1913 – Brandt Manufacturing – Original Building
H.D. Hudson has been in operation at their current site since 1909. The original
operation known as Brandt Manufacturing relocated from Chisago City, Minnesota
produced small compression sprayers for agricultural pest control.
1913-1914 – Building Fire, Reconstruction, and Growth
The original building was entirely destroyed by a fire in 1913. A two story 7,200 s.f.
warehouse and office building was rebuilt in 1914. The company continued to grow
through acquisitions. In 1914 it merged with Hudson and Thurber Company of Chicago.
1920 – Warehouse and Office Additions
In 1920 a 15,840 s.f. warehouse addition consisting of three stories was constructed as
well as a two story 9,638 s.f. warehouse addition. A one story 2,160 s.f. office building
was also constructed.
1927 – Warehouse Addition
In 1927 a 29,700 s.f. warehouse addition was added. This completed the historic “F”
shaped portion of the building.
1946 – Warehouse Addition
In 1946 a 28,800 s.f. warehouse addition was added.
1966 – Warehouse Addition
In 1966 a one story 20,280 s.f. warehouse was added.
1973 – Warehouse Addition
In 1973 a 48,000 one story warehouse was added.
Project Timeline
H. D. Hudson Manufacturing CompanyPurchase & Relocation
December 2010 –MnDOT completed demolition of the eastern 24,000 s.f.
addition.
December 2010 –December 2011 –Hudson Manufacturing relocates to its new
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facility at 800 10Street East.
December 2010 –June 2011 –City of Hastings and MnDOT complete the reuse
study of the pre 1927 portion of the Hudson Building.
July2011-September2012 –City beginsenvironmental remediation and
demolition of post 1927 warehouse areas of the former Hudson site.
September 2012-September 2013 –City seeks commitment for development of
former Hudson site.
September 2013-June 2014 –Final plan approvals for redevelopment of former
Hudson Site.
June 2014-June 2015 –Project Construction
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HDHudsonManufacturing
Dakota County, MN
Dakota County, MN
LocationMap
TH61
Expansion
tobegin2010
HDHudsonMFG
Jaycee
Park
LeveePark
Downtown
Hastings
HistoricStructure
tobere-used
Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not
Map Scale
guaranteed. This is not a legal document and should not be substituted for a title search,
1 inch = 193 feet
appraisal, survey, or for zoning verification.
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http://gis.co.dakota.mn.us/website/dakotanetgis/printPreview.aspx?PrintOptData=Dakota...11/23/2009
11/23/2009
HDHudsonManufacturing
Pictures
HDHudsonManufacturing
Pictures
HDHudsonManufacturing
Pictures
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9RMZIVWMX]SJ1MRRIWSXE
Hudson Site- Re-Use Estimate
November 25, 2009
Building Size (s.f.)
Basement17,820
1st Floor28,399
2nd Floor26,239
TOTAL SIZE72,458
Building Use
Basement - Parking60 spaces
1st Floor - Residential (50%)8 units
1st Floor - Commercial (50%)14,200 s.f.
2nd Floor - Residential17 units
Hudson Site - New Building to west
Building Size (s.f.)
Basement12,979
1st Floor12,979
2nd Floor12,979
TOTAL SIZE38,937
Building Use
Basement - Parking21 spaces
1st Floor - Residential 10 units
2nd Floor - Residential10 units
Assumptions
Column spacing in basement will accommodate parking
Basement width of 60' will accommodate double sided parking
Parking stall size 9'x18' with a 24' drive aisle
60' width on 1st and 2nd floors will accommodate a central hallway with units on either side ~ 26' unit depths
45' width will not accommodate a central hallway
40' minimum unit width used; would accommodate
Average unit size 26'x40' = 1,040 s.f.