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HomeMy WebLinkAboutFull Packet 02-10-11HASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY . Agenda for February 10, 2011, 6:00 pm City Hall Council Chambers I. Quorum II. Minutes – January 13, 2010 Regular Meeting III. Bills IV. Business A.Authorize Advertisement –Commissioner Vacancy B.Authorize City to Conduct Work on Hudson Manufacturing Building C.Discuss Business Subsidies Related to TH 61 Bridge Improvements D.Lanoga Corporation Business Subsidy Default (Pro-Build) E.Consider Consultant to Assist with Hudson Environmental\Demolition Grants F.Request to contribute to Graphic Design Mural V. Reports and Information A.Hudson Update B.TH 61 Bridge Update C.Minnesota Main Street Visit D.Downtown Update E.Marketing Update V.Adjourn Next Meeting: March 10, 2011 HEDRA AGENDA NOTES FOR FEBRUARY 10, 2011 MINUTES Please see attached HEDRA Meeting minutes from January 13, 2011 for your review and approval. BILLS January Bills Ehlers and Associates$255.00Ehlers Seminar Registration Please seeattached general ledger detail for further information. BUSINESS A. Advertise for Commissioner Vacancy The passing of Bob Hollenbeck creates a HEDRA Commissioner vacancy. The vacancy will be filled by appointment of the Mayor with the consent of the City Council. The Authority may advertise, interview and recommend the appointment of citizens to the Mayor and City Council. During the last vacancy (Dennis Martodam), HEDRA opted to advertise for the position and select an interview committee panel of HEDRA Members to recommend appointment. HEDRA terms are six years for citizen members. One member of HEDRA may be a non-resident of the City of Hastings. The notice would be posted in a number of sources including the Hastings Star Gazette, website and Facebook pages. Two individuals have expressed prior interest in serving on the Commission. ACTION: Authorize advertisement for HEDRA Commissioner vacancy and select Commissioners to interview candidates. B. Authorize City to Conduct Work on Hudson Manufacturing Building Upon demolition of the eastern portion of the Hudson Manufacturing Building, windows that were previously below grade were uncovered. Since the windows would be below grade, MnDot desires to have a mason block in the windows prior to completion of the demolition.Please see picture below. MnDot has requested that the City conduct the work via an amendment to the existing Highway 61 Bridge Cooperative Agreement. MnDot would reimburse the City for the cost of construction not to exceed $10,000. The estimated cost for the work is below that amount. As property owner HEDRA is requested to consent to the work completed by the City. ACTION: Adopt Resolution No. 2011-01 Authorizing the City of Hastings to contract for certain improvement on behalf of the Authority. Please see attached Resolution for further information. C.Discuss Business Subsidies Related to TH 61 Bridge Improvements As part of the TH 61 Bridge project businesses have inquired about the availability of business subsidies to assist with anticipated disruption. HEDRA currently provides business subsidies through our Commercial Redevelopment Loan Program. The program provides financial assistance for the rehabilitation of commercial or mixed use properties located in a redevelopment project area (including most of downtown). The Commercial Loan Program is targeted towards building improvements, not operational expenses. The program began with the HRA and has been instrumental in providing for building improvements in downtown. Providing loans for capital improvements provides for an asset in case of default. Neither HEDRA or the HRA has provided for business operational assistance in the past. Other Cities and EDA’s have provided assistance to offset affects of construction projects. In 2009, MnDot reconstructed TH 169 through the City of St Peter. The project included a rerouting of the entire roadway for four months. TH 169 serves as the main commercial street of the City. The EDA provided construction mitigation micro loans to affected businesses. Businesses in the most affected area could qualify for up to $6,000 interest free, with no payments for the first year, and monthly payments of $100 until the paid in full. Businesses needed only to document $1,500 in monthly operational expenses (rent, utilities, etc.). Businesses on the periphery could qualify for $3,000 under the same terms. The EDA authorized 28 loans for $130,000. HEDRA has budgeted $48,000 for commercial loans in 2011. In the past few years, the full amount of commercial loans allocated was not used. ACTION: Discuss the concept of providing operational loans to businesses affected by the TH 61 Bridge Project. Please see attached HEDRA Commercial Loan Summary for further information. D.Lanoga Corporation Business Subsidy Default (Pro-Build) 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 four jobs and stay in business for at least five years. The job requirement was satisfied in 2008; however they did not fulfillthe business operation provision. Based on our initial calculations, Lanoga owes approximately $40,000 is subsidy repayment to HEDRA. Lanoga has requested that City and HEDRA waive the five year operation requirement provision. Lanoga states that they were in business for 4.5 of the required five years, and while in operation surpassed the job creation and value requirements of the subsidy agreement. The subsidy agreement required the creation of four FTE jobs as a minimum of $13 per hour, Lanoga created eight jobs at a minimum of $18 plus medical benefits. ACTION Consider the request to waive the five years of continuous business provision of the Business Subsidy agreement Please see attached City Council Memo from December 10, 2008 outlining the business subsidy requirements. E.Consider Consultant Assistance in Securing Hudson Environmental\Demolition Grants Staff has met with Steve Heurung an Environmental Analyst with Stoel Rives, Attorneys at Law. Steve serves as an environmental grant consultant to various cities and development agencies seeking funds to clean up and develop brownfield sites. The company has been very successful in preparing grant applications for state and federal clean up and development dollars. He has conducted a majority of his work for the St. Paul Port Authority. ACTION Discuss contracting with Steve Heurung to provide environmental grant assistance. Background information on Mr. Heurung will be presented prior to the meeting. F.Request to contribute to Graphic Design Mural nd Karen Green Jung is raising funds to paint a mural on the 2Street frontage of Graphic Design and has asked if HEDRA could provide assistance. Total cost for the project is estimated at $8,000. HEDRA does not have any funding specifically allocated for this purpose. The project could possible qualify for a Commercial Rehab Loan if the mural is deemed an “improvement to the exterior” ACTION Discuss contribution for the Graphic Design Mural. Pictures of the proposed mural will be available at the meeting. REPORTS A.Hudson Update Stark Preservation Planning has begun work on the Hudson reuse study and historic structures report on behalf of MnDot. Over the next month they will be collecting data and conducting field investigations. Meetings with local leaders as well as an open house are scheduled for early April. B.TH 61 Bridge Update Large drills continue to bore 5-foot diameter holes into solid bedrock as part of the foundation for the future Pier 5, located near Historic Downtown Hastings. Pier 5 will eventually support the southern end of the new bridge’s arched main span. Each shaft ranges from 20-35 feet deep. Other work underway includes Setting the “ring” –or metal frame – that will help support the sheet pile walls for Pier 6’s cofferdam. The cofferdam will enable construction of Pier 6’s foundation. Pier 6 will eventually support the northern end of the main span. For Piers 8-10 on the north end of the project, crews continue to drive pile for Pier 9, build forms in preparation of pouring footings for Pier 10, and excavate inside of Pier 8’s cofferdam Pile driving for all piers will continue through March, 2011. The sounds of hammering steel can be expected to be heard between 7 a.m. and 9 p.m. C.Minnesota Main Street ProgramVisit The selection committee for the Minnesota Main Street Program visited st downtown on January 21. Ron Toppin and John Grossman were present at City Hall to answer questions and provide a history. The group also met on site with Michelle Jacobs, Kevin Hoeschen, and Karen Green Jung. The Committee was scheduled to make its recommendation at the end of January. D. Downtown Update Hastings Family Service moving into Spiral Foods location . The move will take place between now and May. Spiral Foods is looking for a new location. Staff met with Spiral Foods and reviewed potential commercial sites for their relocation. Photography Studio in former Meyer Company. Tom Schneider has split of the western one story portion of the Meyer Company property. He has a buyer interested in opening a photo studio. E.Marketing Update Himle Horner will be conducting a meeting with our focus group on Wednesday, February 23. The intent is to clarify plan goals and objectives, prioritize target audience, identify the community’s strengths/weaknesses, and perhaps most importantly solicit statements from business owners for use in future marketing efforts by using the following as discussion points. Following implementation of a strategic marketing plan, how will we know if we're successful in the first 6 months? The first year? Three years out? Who do you think are the most important existing/potential customers for Hastings businesses? (e.g. people in certain regions? types of customers? recreational visitors?) What are Hastings' strengths and opportunities in the next year to several years? What are Hastings' challenges? How would you describe the current business environment and regional marketplace? Improving? Standing still? Hopeful? What do you think is Hastings' market niche when you consider the communities that surround Hastings? In other words, what makes Hastings unique and worth the visit? Please feel free to join us if you are available. ATTACHMENTS HEDRA Minutes – January 13, 2011 General Ledger Detail – January, 2011 Resolution No. 2011-01 Authorizing the City of Hastings to contract for certain improvement on behalf of the Authority. HEDRA Commercial Rehab Loan Summary Lanoga Business Subsidy City Council Memo ~ December 10, 2008 Hastings Economic Development and Redevelopment Authority 6:00 pm Hastings City Hall Minutes of January 13,2011 HEDRA CommissionersDennis Peine,Pam Holzem, Ron Toppin, Kurt Keena, andDanna Elling Schultz,present HEDRA CommissionersAbsent: Bob Hollenbeck, and,Anthony Alongi Staff present: Community DevelopmentDirector John Hinzmanand Community Relations Specialist Shannon Rausch. Q: UORUM A quorum was establishedand the meeting was called to order, by Chair Kurt Keenaat 6pm with fourmembers present. I. M INUTES Commissioner Holzem motioned to approve the minutes from the December 9, 2010 meetings, Commissioner Peine seconded the motion. Motion approved 4-0 III.B ILLS Commissioner Toppin moved to pay the bills. Commissioner Holzem seconded the motion. Motion Passed 4-0 Commissioner Elling Schultz Arrived 6:05 IV.B USINESS A. Election of Officers. Commissioner Keena nominated Ron Toppin as President of the Hastings EDRA, Dennis Peine as Vice President. Commissioner Keenaalso nominated Pam Holzem as Treasurer. Commissioner Elling Schultz motioned that the entire slate be approved, Commissioner Keena seconded the motion. Chair Keena handed the gavel to Chair Toppin Motion passed 5-0 Commissioner Elling Schultz motionedto reappoint Community Relations Specialist Shannon Rausch as Secretary of the Hastings EDRA, City Finance Director Char Stark as Assistant Treasurer, and designate City Attorney Dan Fluegel and Robert Deike as legal counsels. Commissioner Holzem secondedthe motion. Motion passed 5-0 B. Block 29 Temporary Parking Lot MN/Dot has proposed to convert a portion of Block 29 to a temporary gravellot to serve businesses affected by the temporary closure of on-street parkingalong Vermillion th Street. Block 29 is located south of 4Street betweenVermillion Street and Sibley Street and is owned by HEDRA.MN Dot anticipates the parking lot will be used from mid March to June 1st The parking lot would likely be posted as with a two hour parking limit(similar to Vermillion Street) to ensure space is available for customers.In 2009 HEDRA and Stotko Speeding entered into a PreliminaryDevelopment Agreement. Stotko Speedling has reviewed the proposed plansand do not object to the temporary use. Commissioner Elling Schultz motioned to authorize signature of the Zero Dollar Permit to allowMN/DOT to construct a temporary gravel parking lot on Block 29and to sign it “TEMPORARY CONSTRUCTION PARKING.” Commissioner Keena seconded the motion. Motion passes 5-0 C. Block 16 Parking Lot Agreements At the December 20, 2010 meeting, the City Council authorized signature of agrant agreement with Metropolitan Council to provide $600,000 of fundingfor construction of a nd parking lot on Block 16 (corner of Tyler & 2Streets, next to the existing depot) toserve the future Red Rock Transitway needs. The grant agreement requiressignature of a ground lease agreement between Met Council and HEDRA fora period of 40 years. HEDRA would agree to use the property as a parking lotduringthat period, and could also use the parking lot for other public usesprovided it does not interfere with the primary transit parking lot use. Since the grant agreement was signed with the City (as required by MetCouncil), but the parking lot is owned byHEDRA, an assignment andassumption agreement is necessary between the City and HEDRA forcompletion of the project. The grant assignment would transfer grantobligations from the City to HEDRA. Commissioner Keena motioned to authorize signature of the Ground Lease Agreement withMetropolitan Council.Commissioner Elling Schultz seconded the motion. Motion passed 5-0 Commissioner Keena authorize signature of the Assignment and Assumption Agreementbetween HEDRA and the City of Hastings.Commissioner Holzemseconded the motion. Motion Passed 5-0 IV.R&I EPORTSNFORMATION A. HEDRA Year End Financial Summary The 2010 Financial Summary was prepared by Finance Director CharStarkand presented to HEDRA by Community Development Director John Hinzman. This year’ssummary reflects the purchase of both the Hudson and Mannproperties as well as the return of the $100,000 from the dissolved Twin CitiesCommunity Capital Fund. B.Hudson Update •MN/DOT has completed demolition of the eastern warehouse portion of theHudson facility. Site grading is presently taking place. • During the demolition and ground work currently going on MN/DOT crews unexpectedly found 5 windows below grade that now need to be “blocked in. Hudson and MN/DOT want the city to manage this project and they will reimburse HEDRA for the expense. •MN/DOT is finalizing the contract with Stark Preservation Planning to providefor a re-use analysis of the building. Stark anticipates the project to last sixmonths. The project would include public input. •The City has submitted a grant application for $250,000 to Dakota CDA fordemolition and environmental work. The CDA will award funding in February. •Ehlers is featuring the Hudson site as part of their developer roundtable at theirFebruary Public Finance Seminar. This will give the site further visibility amongpotential developers and should provide valuable feedback. C. TH 61 Bridge Update North Side:Construction vehicles will continue to use the access road to the marinas to access the causeway in the river. Please help spread the word that access to Hub’s Landing and Captain’s Bay marinas will remain open and well maintainedthroughout the project. In the River:This is where a majority of the work will be taking place.Cofferdam work continues on Pier 8 and 9, with large metal sheets beingdriven into the ground. Pile driving will begin soon. Long work hours (7 a.m. to9 p.m.) for these piers are expected. Pile driving for Pier 10 is complete and concrete pours for the pier footingswill begin soon.All load test activity for the project is complete. South Side:Demolition continues on the Hudson Building warehouse.Excavation for Pier 5 continues.Crews will be drilling into the rock for the pier footing caissons. Unlike thework on the north side, there are no piles to be driven. Pier 5 will be supported byrebar- reinforced concrete that will be poured in place.Xcel Energy work continues near the substation work to replace thetransmission tower east of Hwy 61. There are no planned outages currentlybeing expected as a result of this work.Pre-construction building surveys are being completed and coordinated withbuilding owners and businesses. D. Red Rock Corridor Open House th at 6:30pm The Red Rock Corridor heldan open housethis past Tuesday, January 11 here at Hastings City Hall to review concepts for the proposedstation. Community Development Director Hinzman reported that 30 – 40 people from the public attended the meeting. E. Minnesota Main Street Program Visit In October, 2010 HEDRA authorized submittal of a grant application to be part ofthe Minnesota Main Street Program. The selection committee will be in town onFriday, st January 21between 8:30 and Noon. The tour will commence from CityHall. Please feel free to join us at 8:30. If selected to be a part of the program again, Hastings would receive about $6,000 a year to implement the Main Street Program (focusing on rehab, economic development, and marketing of the downtown area.) F. Marketing Update City Attorney Dan Fluegel reviewed the letter of Agreement with Himle HornerInc. following the Decembermeeting. Nothing significant was noted by our attorney. The agreement has been signed and returned to HHI. Staff is nowcollecting a variety of information and material to submit to HHI for them tobegin the first phase of the marketing analysis. A: DJOURNMENT Commissioner Keena moved to adjourn at 6:40 p.m., Commissioner Elling Schultz seconded. Motion Passed 5-0 Thursday,February 10, 2011 Next meeting is scheduled for at 6:00pm in the Council Chambers. Shannon M. Rausch, HEDRA Secretary HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY Resolution No. 2011-01 February 10, 2011 RESOLUTION AUTHORIZING THE CITY OF HASTINGS TO CONTRACT FOR CERTAIN IMPROVEMENTS ON BEHALF OF THE AUTHORITY Commissioner ________________ introduced the following resolution and moved its adoption: WHEREAS, the Hastings Economic Development and Redevelopment Authority in and for the City of Hastings (the “Authority”)is the owner of real property and nd improvements located generally at 200 2Street West in the City of Hastings (the “Property”). WHEREAS, The Property was acquired from H.D. Hudson Manufacturing Company which used the Property, and adjacent real property, as a manufacturing facility (collectively the “Hudson Site”). WHEREAS, as part of the Highway 61 Hastings Bridge Design-Build Project, the Minnesota Department of Transportation (“Mn/DOT”) acquired a portion of the Hudson Site lying adjacent to the Property and demolished certain structures contained thereon. WHEREAS, after demolition, Mn/DOT discovered certain old windows in a building remaining on the Property were exposed to the elements and needed to be blocked and sealed (the “Work”) to protect the interior of the building on the Property, and Mn/DOT is willing to pay for the costs of the Work, not to exceed $10,000. WHEREAS, the City of Hastings is willing to contract to have the Work completed and can incorporate the cost of the Work as an adjustment to the funds that will be transferred between the City and Mn/DOT as an amendment to the existing Cooperative Construction Agreement No. 95243 relating to the Highway 61 Hastings Bridge Design-Build Project. WHEREAS, the Authority desires to authorize the City of Hastings to contract for completion of the Work with the Mn/DOT cost reimbursement incorporated into the City’s existing agreement with Mn/DOT. NOW, THEREFORE, be it resolved by the Board of Commissioners of the Authority. 1. The City of Hastings, its employees, agents and contractors are authorized to enter upon the Propertyfor the purpose of performing the Work. 2. The City of Hastings is authorized to contract with a third-party contractor, selected by the City, to complete the Work on terms deemed reasonable by the City. 3. The City of Hastings is authorized to incorporate the cost of the Work, and reimbursement of that cost by Mn/DOT, as an adjustment to the funds that will be transferred between the City and Mn/DOT pursuant to an amendment of the existing Cooperative Construction Agreement No. 95243 relating to the Highway 61 Hastings Bridge Design-Build Project. Commissioner __________________ seconded the resolution and upon being put to a vote it was adopted: Ayes: Nays: Absent: ____________________________________ Ron Toppin, President Attest: __________________________________ John Hinzman, Executive Director HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY COMMERCIAL REHABILITATION PROGRAM SUMMARY A.The program provides financial assistance for the rehabilitation of commercial or mixed use properties located in a redevelopment project area.The types of work that may be included are: 1. Eliminate blight or correct structural, safety and access conditions 2. Remodel interior space for new uses and tenants 3. Bring building systems up to code and conserve energy 4. Improve the design and materials of the exterior, including historic restoration 5. Improveaffordable apartments in mixed use buildings as a secondary purpose 6. Moveable fixtures and equipment are not included B. Conditions of the program 1. The building must qualify in size and location. 2. The need for public assistance to make the project feasible must be demonstrated. 3. The project must contribute to the redevelopment area plan. 4. City planning, building and historic (if required) approvals must be secured. C. Forms of assistance 1.Make direct loan to the property owner 2. Participate with another lender for above purposes 3. Reduce the interest rate on a loan for above purposes D. Usual Terms 1. A direct loan from the HEDRA will provide supplementary or gap financing, not the primary financing. Typically the loan amount may be up to 25% of costs but no more than $200,000. The Board will determine the size of the loan, depending on scope of projectand public funds available. 2.The direct loan is aninstallment loan normally witha term of ten years, but can be no more than 20 years. Interest starts at 0% for first year, then4% for four yearsand9% for five years. 3. When the rehabilitation loan is available from a private lender the HEDRA will consider an interest reduction payment rather than a direct loan.The amount of the assistance is calculated on the amount of interest to be paid on the loan, to a limit of $30,000 per building. Repayment of the assistance is made at the sale of the property. 4. Loans and interest reduction payments are secured by agreements and mortgages. E. Additional information See the Downtown and Vermillion Street Redevelopment area maps, the Program Regulations and the attached applications.Contact the HEDRA stafffor an appointment.