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HomeMy WebLinkAbout02-10-11 Agenda NotesHEDRA 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