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HomeMy WebLinkAbout04-21-11 HEDRA MinutesHastings Economic Development and Redevelopment Authority 6:00 pm Hastings City Hall Minutes of April 21, 2011 HEDRA Commissioners Dennis Peine, Pam Holzem, Ron Toppin, Danna Elling Schultz, Michael Kelley Kurt Keena, and Tony Alongi present Staff present: Community Development Director John Hinzman and Community Relation Specialist Shannon Rausch. Guests Present: Greg Stotko, Jeff Carlson and Matt Frisbie Q: UORUM A quorum was established and the meeting was called to order, by Chair Toppin at 6pm with 6 members present. I.M INUTES Commissioner Keena motioned to approve the minutes from the March 10, 2011 meeting, Commissioner Holzem seconded the motion. Motion approved 6-0 III.B ILLS Commissioner Keena moved to pay the bills. Commissioner Peine seconded the motion. Motion Passed 6-0 Commissioner Alongi Arrived IV.B USINESS A.Block 29 Concept Plan Greg Stotko presented 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. 1 Minutes – Hastings EDRA – 04/21/11 Page The Commission discussed the project in depth. Much time was spent on the fact that the development agreement was for a two story, 6,000+ s.f. multiunit office building, not a single level building that was half the size. The Commission struggled with how to justify selling the land for the project for $1 and what the “return on investment” exactly would be. Several commissioners stressed that they liked the project and how well the exterior of brick and stone would fit with the surrounding neighborhood, (i.e. City Hall, Guarding Angels Apartments, the salon next door, etc.) Throughout the discussion the reasons why the HRA bought this property eight years ago were emphasized: To remove blight, which they did when they razed the existing duplex that had been there. To control what was built in this location, which they are currently doing. And to be able to keep the large oak trees on the property, which this proposed project does as well. The biggest concern that was discussed was that this is a much smaller – nearly 3,000 sf smaller – than what the Commission was looking for. And does that warrant a land price of $1 when the county last assessed the property to be about $140,000? The commissioners agree that the market has changed drastically since they first bought the property several years ago, and even since they entered the Development Agreement with Stotko Speedling two years ago and they have to be realistic. Understanding that this project is on a very fast track due to the fact that Carlson Capital Management has to be out of their exist space by the end of the summer and would like to be in their new location by September, the Commissioners asked that before they authorize the purchase agreement, that the Developer come back with more specific numbers for costs, a more detailed elevation so commissioners can get a better sense of how this fits into the neighborhood, and a better sense of the tax amount. A special meeting is expected to be set for sometime in the next two weeks. Commissioner Elling Schultz Left IV.R&I EPORTS NFORMATION A. Hudson Update th Reuse Study Workshop – was held April 5. Stark and Associates ran the workshop very well and did a good job of soliciting 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. 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 than originally estimated. MnDOT will reimburse HEDRA for the work completed. 2 Minutes – Hastings EDRA – 04/21/11 Page B. TH 61 Bridge Update MnDOT is beginning utility work along Vermillion Street between 4th and 5th Streets. The temporary parking lot on Block 29 should be constructed soon, (and will not affect the potential Carlson Capital Management project, should that be approved and go forward.) Works remains suspended within the River. C. Marketing Update 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 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 Hardwired Alarm 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 next week on April th 26. Bids are due June 1st. Work on the 35 mixed use buildings should be complete within nine months. 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. F. Red Rock The final Red Rock Station Area Plan Meeting was held on April 6th. Final copies of the proposed station area changes will be complete soon and will be distributed to HEDRA. A: DJOURNMENT Commissioner Keena moved to adjourn at 7:15 pm, Commissioner Holzem seconded. Motion Passed 5-0 Next meeting is scheduled for Thursday, May 12, 2011 at 6:00pm in the Council Chambers. Shannon M. Rausch 3 Minutes – Hastings EDRA – 04/21/11 Page