HomeMy WebLinkAboutHEDRA Packet 20110421
HASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT
AUTHORITY
.
Agenda for April 21, 2011, 6:00 pm
City Hall Council Chambers
I. Quorum
II. Minutes – March 10, 2010Regular Meeting
III. Bills
IV. Business
A.Block 29 Concept Plan
V. Reports and Information
A.Hudson
B.TH 61 Bridge
C.Marketing
D.Hard Wired Alarm RFP
E.HEDRA Goals and Objectives
F.Red Rock
V.Adjourn
Next Meeting: May 12, 2011
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HEDRA AGENDA NOTES FOR APRIL21, 2011
MINUTES
Please see attached HEDRA Meeting minutes from March 10, 2011 for your
review and approval.
BILLS
MarchBills
Himle Horner$1,380.11Marketing Services
Bradley & Deike$340.00Guardian Angels
Mastercard$5.54Guardian Angels Cert Mail
Please see attached general ledger detail for further information.
BUSINESS
A.Block 29 Concept Plan
Greg Stotko has submitted a concept plan on behalf of Carlson Capital
Management for the construction of a new office building located south of City
Hall on Lots 1 and 3, Block 29. Mr. Stotko proposes to construct a single story
building of 3,770 s.f. along with 18 parking spaces.
HEDRA and Stotko entered into a Preliminary Development Agreement in 2009.
The agreement was based upon the development concept of a two story, 6,500 s.f.
office building housing two to four office suites. A purchase price of $1 was
offered for the property. The purpose of the agreement is to allow the developer
to assemble further information and to refine the concept plan for potential future
action.
The HRA purchased the property for $300,000 in 2003 and razed the former
home. The property was last appraised for $255,000 in 2007.
The Commission is asked to review and comment on the proposal. The concept
plan will be presented at the meeting.
ACTION: Review and comment of the concept presented at the meeting.
Please see attached Preliminary Development Agreement and original concept
plan for development.
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REPORTS
A.Hudson
th
Reuse Study Workshop –April 5
th
Stark and Associates held a workshop on April 5to solicit community input on
potential uses for the Hudson Manufacturing site. About 40 people were in
attendance. Reusing the building and preservation of riverfront park land were
dominant themes. Ideas for building use were numerous including retail,
restaurant, and housing.
There have been no decisions on what might happen to the site. The study should
be complete by September and will provide more clarity on the structural
condition of the building, costs involved in the potential re-use, and desirability of
potential rehab from the private market.The final report will assist the City and
HEDRA on making informed decisions on the costs of potential development
options.
Please see the attached meeting handouts for more information.
Window Blocking
Masonry work on the blocking of five windows on the east side of Hudson has
been complete. The winning bid from EW Concrete and Masonry was $1,482;
and less thanoriginally estimated. MnDot will reimburse HEDRA for the work
completed.
B.TH 61 Bridge
thth
MnDot is beginning utility work along Vermillion Street between 4 and 5
Streets. The temporary parking lot on Block 29 should be constructed soon. Staff
will work with MnDot and Stotko\Carlson to coordinate and coordinate any
construction overlaps. Works remains suspended within the River.
C.Marketing
Our marketing project continues to move forward with the next step being the
audit calls. Late last month staff developed a contact list of roughly 25 local
business owners and developers and provided this list to Himle Horner so they
can then contact 8-10 of the people on the list. The intent is that neither HEDRA
nor staff knows which businesses are contacted. This allows those businesses
contacted the opportunity to speak freely. Since providing Himle Horner the list,
they have has sent staff a template for an email that we will be sending out to all
of the contacts, letting them know that they may be getting a call. This is to ensure
HEDRA Meeting Packet - April 21, 2011Page 3 of 39
that the businesses understand that this is legit and that HEDRA hopes they will
be willing to participate in the short survey.
Also at the same time, Himle Horner is also conducting some research on what
other cities of similar size and make up are doing (or not doing) to market
themselves. (Red Wing and Stillwater are on this list.)
D.Downtown Hard Wired Alarm RFP
The RFP has been released to interested alarm installers and has been posted on
the City’s website. A pre-bid meeting for potential bidders will be held on April
thst
26. Bids are due June 1. Work on the 35 mixed use buildings should be
complete within nine months.
Please see the attached RFP for further information.
E.HEDRA Goals and Objectives
Staff proposes holding a special workshop to discuss HEDRA Goals and
Objectives in place of the regular June HEDRA meeting. A list of topics will be
developed for HEDRA consideration in May.
Please see the Roles and Goals further information.
F.Red Rock
th
The final Red Rock Station Area Plan Meeting was held on April 6. Final
copies of the proposed station area changes will be complete soon and will be
distributed to HEDRA.
ATTACHMENTS
HEDRA Minutes –March 10, 2011
General Ledger Detail –March, 2011
Block 29 – Preliminary Development Agreement
Block 29 – Original Concept Plan
Hudson Re-Use Study Handout
Hard Wired Alarm Ordinance RFP
HEDRA Roles and Goals – 8-6-09
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Hastings Economic Development and
Redevelopment Authority
6:00 pm Hastings City Hall
Minutes of March10,2011
HEDRA CommissionersDennis Peine,Pam Holzem, Ron Toppin, and Kurt Keena, present
Staff present: Community Development Director John Hinzman.
Q:
UORUM
A quorum was establishedand the meeting was called to order, by Chair Toppinat 6pm with four
members present.
I. M
INUTES
Commissioner Keenamotioned to approve the minutes from the February 10, 2011
meeting, Commissioner Holzemseconded the motion.
Motion approved 4-0
III.B
ILLS
Commissioner Keenamoved to pay the bills. Commissioner Peineseconded
the motion.
Motion Passed 4-0
IV.B
USINESS
A.Minnesota Main Street Program
The City has been selected to participate as a “Designated Member” in the
Minnesota Main Street Program. “Designated Member” status involves significant
participation among downtown stakeholders. In all, the program would require a
commitment of 15-20 people volunteering 5-15 hours per month. The City would pay
a $1,000 membership fee and have access to free training and $7,800 of technical
assistance by outside consultants and specialists.It does not appear that the City
st
deadline for program start-up. Staff recommends
would be able to meet the May 1
joining Main Street as an “Associate Member” and continue to determine interest
over the next year.
Commissioner Holzem motioned to decline the offer to become a “Designated Member”
of Minnesota Main Street, but joint as an “Associate Member”; secondedby
Commissioner Keena
Motion approved 4-0
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IV.R&I
EPORTSNFORMATION
A.Hudson Update
Staff provided an update of Hudson activities. An open house for the re-use study of
th
Hudson will take place April 5at 6pm at City Hall. City Staff continues tomeet
regarding future maintenance obligations for the building.
HEDRA discussed establishing a walking tour of Hudson in the next month or so.
There was a desire to invite the City Council and other involved Commissions
(Heritage Preservation, Planning, and Parks). Staff will establish a date and send out
invitations.
B.TH 61 Bridge Update
Staff provided an update on TH 61 bridge activities.
C.Marketing Update
Staff provided an update on Himle Horner Marketing activities including a follow-up
discussion guide from Himle Horner distributed in a separate email after delivery of the
HEDRA packet. The Discussion Guide seeks input on goals and successes, business
environment, and community.
HEDRA discussed the follow-up guide in general and concluded and preferred for
members to submit answers to Shannon Rausch individually over the next week or
two.
D. Commissioner Vacancy
Two applications have been received for the HEDRA Commissioner Vacancy.
HEDRA discussed whether notification should be extended. HEDRA opted to move
ahead with interviewing the two applicants with Commissioners Elling Schultz, Holzem,
and Peine being part of the interview team.
E.Hard Wired Alarm RFP
Staff provided an update on the Hard Wired Alarm RFP. The RFP iscomplete and
awaiting confirmation of funding availability through CDBG.
Community Development Annual Report
F.
Staff provided a recap of the Community Development Annual Report highlighting
HEDRA activities in 2010.
G. HEDRA Roles and Goals
HEDRA optedto schedule a special meeting to review goals and objectives. The
meeting could be held in place of a regular meeting, or scheduled in between regular
meetings. A June date is tentatively planned.
FM
H.
LEA ARKET
Fred Weiss, Operator of a flea market formerly held at the Point asked HEDRA about
any interest in hosting a flea market on HEDRA owned property in 2011.
HEDRA discussed the issue and directed Mr. Weiss to work with City Staff to develop
a concept layout plan taking into consideration parking, electricity and insurance.
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thst
I.April 14Meeting Changed to April 21
thst
HEDRA rescheduled the April 14Meeting to April 21.Starting time will remain
6:00pm.
A:
DJOURNMENT
Commissioner Peinemoved to adjourn at 6:40 p.m., Commissioner Keenaseconded.
Motion Passed 6-0
Thursday,April 21, 2011
Next meeting is scheduled for at 6:00pm in the Council Chambers.
John Hinzman
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PRELIMINARY DEVELOPMENT AGREEMENT
THIS AGREEMENT
is made and entered into this day of , 2009, by and
between the Hastings Economic Development and Redevelopment Authority (the "Authority")
with its principal office at 101 East Fourth Street, Hastings, Minnesota 55033, and Stotko
Speedling Construction, Inc., a Minnesota corporation (the “Developer”) with its principal office
at 1303 Eddy Street, Hastings, Minnesota 55033.
WITNESSETH
:
WHEREAS,
the Authority is the owner of certain real property (the “Redevelopment
Property”) located in the City of Hastings (the “City”); and
WHEREAS,
the Developer has presented to the Authority a concept for the development
of the Redevelopment Property through the construction of a two story officebuilding, parking
lot, utilities and landscape improvements (the “Development”), which proposal contemplates the
Authority’s conveyance of the Redevelopment Property to the Developer for a nominal purchase
price; and
WHEREAS
, the Authority’s Board of Commissioners have reviewed the Developer's
development concept and desires to enter into this Preliminary Development Agreement to allow
the Developer to further refine its development concept and to negotiate with the Authority
concerning public participation in and approval of the proposed Development; and
WHEREAS
, the Authority and Developer intend to proceed with the Development if: (i) a
design for the Development can be agreed upon by the Authority and the Developer; (ii) a
satisfactory agreement canbe reached regarding the purchase price to be paid by the Developer
for the Redevelopment Property; (iii) satisfactory financing for the Development can be secured;
and (iv) the economic feasibility and soundness of the Development and other necessary
preconditions have been determined to the satisfaction of the parties.
NOW, THEREFORE
, in consideration of the covenants and obligations of the parties
hereto, the Authority and the Developer hereby agree as follows:
Section 1. Preliminary Nature of Agreement. The Authority and Developer agree that this
Agreement is intended to be preliminary in nature. Before the Authority and Developer can
make a decision on whether to proceed with the implementation of the Developer's development
concept, it will be necessary to assemble and consider information relative to the uses, design,
economics and other aspects of the Development. The purpose of this Agreement is to allow the
Developer an opportunity to assemble such necessary information, to refine the abovereferenced
development concept, and to negotiate with the Authority concerning the execution of a purchase
and development agreement (the "Contract") which, if executed, will set forth the rights and
responsibilities of the Authority and the Developer with respect to such development.
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During the term of this Agreement, the Authority agrees that it will not enter into or negotiate a
similar agreement with any party other than the Developer for a project on the Redevelopment
Property
Section 2. Present Intent of Parties. It is the intention of the parties that this Agreement
document their present understanding and commitments and that if the following conditions can
be fulfilled to the satisfaction of the Authority and Developer that the parties will proceed in an
attempt to formulate a mutually satisfactory Contract:
(a)the Developer demonstrates the feasibility of the Development as refined pursuant
to this Agreement;
(b)the Developer provides such documentation regarding the economic feasibility of
the Development as the Authority may wish to receive during the term of this
Agreement;
(c)the completion of all undertakings required by this Agreement in a satisfactory and
timely manner;
(d)the satisfaction of such other conditions as are determined to be appropriate by
either party; and
(e)the Development is generally consistent with the proposal submitted to the
Authority’s Board of Commissioners on April 9, 2009, attached as EXHIBIT B
The Contract (together with any other agreements entered into between the parties hereto
contemporaneously therewith) when executed will supersede all understandings and obligations
of the parties hereunder.
Section 3. Development Design. The Developer’s concept for the Development on the
Redevelopment Property is preliminary in nature and must be refined before implementation.
The concept as proposed involves the construction of a two story office building, parking lot,
utilities and landscape improvements.
Section 4. Developer Undertakings. During the term of this Agreement the Developer
shall do the following:
(a) Continue to refine its site and building plans for the Development.
(b) Seek to secure tenants or purchasers in the Development.
(c)Submit to the Authority a proposed schedule forthe undertaking of the
Development, including without limitation, the timing of the closing on financing.
(d)Seek to secure a commitment for financing sufficient for construction of the
Development.
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(e)Using title information and a survey provided by the Authority, update evidence of
title to the Redevelopment Property and provide to the Authority any objections to
title.
(f)Submit to the Authority a project pro forma detailing all costs of the Development
and the sources and uses of all funds to be raised to finance the Development,
including justification for the Developer’s payment of less than market value for
the Redevelopment Property.
(g)Undertake preliminary engineering and soil testing of the Redevelopment Property.
For this purpose, the Developer and its contractors shall have the right to enter
upon the Redevelopment Property at reasonable times and after notice to the
Authority. The Developer shall indemnify, defend and hold the Authority harmless
from and against any claims or damage, of whatsoever nature, arising out of the
entry onto the Redevelopment Property and shall repair any damage caused to the
Redevelopment Property.
(i)Using environmental reports and studies provided by the Authority and such other
studies and testing deemed necessary, determine the acceptability of the
environmental condition of the Redevelopment Property.
All of the information described above shall be prepared or collected at the sole expense of
the Developer. The Developer agrees that it will provide the Authority with quarterly status
reports on progress made with respect to its activities under this Agreement.
Section 5. Authority Undertakings. During the term of this Agreement, the Authority will
undertake the following:
(a)Provide to theDeveloper title information based on which the Developer can
update evidence of title to the Redevelopment Property.
(b)Cause to be prepared drafts of the Contract.
(c)Provide to the Developer any surveys and environmental reports in the possession
of the Authority.
(d)Analyze information provided by the Developer to determine if the conveyance of
the Redevelopment Property for a purchase price that is less than market value is
justified.
(e)Use its best efforts to cure any valid title objections made by the Developer.
Section 6. Negotiation of Contract. During the term of this Agreement, the Authority and
the Developer shall proceed with the negotiation of a Contract relative to the Development. The
decision to enter into a Contract shall be in the sole discretion of each of the parties. If prior to
execution of the Contract either party determines in its sole discretion that it is not in its best
HEDRA Meeting Packet - April 21, 2011Page 13 of 39
interest, for whatever reason, to proceed with the Development, it shall so notify the other party,
whereupon this Agreement shall terminate and neither party shall have any rights or obligations to
the other or to any third party under or with respect to this Agreement. If the Developer
determines during the term of this Agreement that undertaking the Development is not financially
feasible, it will promptly notify the Authority of such determination and the parties will terminate
this Agreement.
Section 7. Effect of Approvals. No approval given by the Authority hereunder or in
connection herewith shall be deemed to constitute an approval of the Development for any
purpose other than as stated herein and the process outlined in this Agreement shall not be
deemed to supersede any concept review, conditional use permit, vacation, subdivision, orother
zoning or planning approval process of the Authority or the City relative to the development of
real estate.
Section 8. Payment of Costs. The Authority agrees that it will pay its out of pocket costs
incurred for attorneys and consultants relating to the preparation of this agreement and the
Contract. The Developer will be responsible for all of its costs hereunder, including, but not
limited to, updating evidence of title to the Redevelopment Property and environmental and soils
conditions testing. The Contract will specify the parties’ responsibilities with respect to costs
incurred after execution of the Contract.
Section 9. Modifications. This Agreement may be modified and the term hereof may be
extended only through written amendments hereto signed by both of the parties to this
Agreement.
Section 10. Termination. The agreement shall be effective until June 30, 2012, subject to
progress review in June 2011 or Developer notification, described as follows.
(a) Prior to the June 2011, Authority meeting, the parties will consider the existing
economic and market conditions and the developer’s progress on the development
concept. If the Authority finds that current conditions make the execution of a
development contract within twelve months unlikely, or finds that there has been a lack
of substantial progress on Developer Undertakings, the Authority may terminate the
agreement.
(b) The Developer will notify the Authority in writing if, at any time, they conclude that
the proposed development concept is not feasible and they are terminating the agreement
and/or are requesting an opportunity to submit a new concept.
Section 11. Severability. If any portion of this Agreement is held invalid by a court of
competent jurisdiction, such decision shall not affect the validity of any remaining portion of this
Agreement.
Section 12. Notices. Notice, demand, or other communication from one party to the other
shall be deemed effective if sent by certified mail, postage prepaid, return receipt requested or
HEDRA Meeting Packet - April 21, 2011Page 14 of 39
delivered personally to a party at its address in the first paragraph of this Agreement, or at such
other address as such party may designate in writing to the other party.
HEDRA Meeting Packet - April 21, 2011Page 15 of 39
IN WITNESS WHEREOF
, the Authority has caused this Agreement to beduly executed
in its name and behalf and the Developer has caused this Agreement to be duly executed in its
name and behalf on or as of the date first above written
HASTINGS ECONOMIC
DEVELOPMENTAND
REDEVELOPMENT AUTHORITY
By__________________________________
Its ____________________
STOTKO SPEEDLING
CONSTRUCTION, INC.
By__________________________________
Its _________________________________
By__________________________________
Its _________________________________
HEDRA Meeting Packet - April 21, 2011Page 16 of 39
EXHIBIT A
Redevelopment Property
Lots 1 and 2 except the west 6 feet thereof, Block 29, Town of Hastings
EXHIBIT B
Developer’s Proposal
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