HomeMy WebLinkAboutII. b. 05-03-11 HEDRA Special Meeting MinutesHastings Economic Development and
Redevelopment Authority
7:30 am Hastings City Hall
SPECIAL MEETING
Minutes of May 3, 2011
HEDRA Commissioners Dennis Peine, Ron Toppin, Danna Elling Schultz, Michael Kelley, Kurt Keena,
and Tony Alongi present
HEDRA Commissioners Pam Holzem absent
Staff present: Community Relation Specialist Shannon Rausch.
Guests Present: Greg Stotko and Jeff Carlson
Q:
UORUM
A quorum was established and the special meeting was called to order, by Chair Toppin at 7:35am
with 6 members present.
I.B
USINESS
A.Block 29 Concept Plan
Greg Stotko and Carlson Capital Management met with HEDRA to provide more
detailed information about the proposed construction of a new office building located
south of City Hall on Lots 1 and 3, Block 29. As discussed at the regular April 21,
2011 HEDRA meeting, this new development would be a single story building with
3,770 s.f. of office space and would include around 14-18 parking spaces.
Mr. Stotko discussed the various minor changes they have made to the plans since it
was first presented to HEDRA two weeks ago. These changes were made in an effort
to better protect and preserve the mature trees currently on the property that HEDRA
has required any development to leave untouched. Other modifications have been
made to the originally presented plans for parking, but still the number of stalls will
exceed the requirements.
The meeting was then opened to questions from the Commissioners.
Commissioners asked for better clarification as to why the originally agreed upon
development of a two story, 6,500 s.f. office building is no longer being considered
and why this new, single story, 3,700 s.f. building should be accepted.
Reasons given included that fact that the market isn’t today what it was a few years
ago. Also that this project would be a step up from what was offered in the
Development Agreement, (this project would include a lot of brick and stone in the
façade which was not in the original project.) It would be owned solely by one company
which anticipates growth in its company’s future, rather than having rental space which
can end up sitting vacant for long periods. This business fits the location in not
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Minutes – Hastings EDRA – 04/21/11 Page
needing great visibility as it is a destination type business. It would move 5-6 new jobs
to Hastings which currently are not in town, as well as bringing 4-6 high-end clients to
town daily (who would not otherwise be likely to come to town.) All this, plus the added
fact that the client would like to work with as many local contactors and tradesmen as
possibly to build this project in their opinion justify the smaller scaled building for the
same priced land.
Discussion was had on the large amount of office/commercial space currently
available throughout Hastings and why it wouldn’t be better to fill one of those
vacancies rather than building yet another office building. The Client has rented/leased
his past six locations and is tired of not being in control. He would like to own his own
building and by building, rather than remodeling he can get exactly what he wants
without settling or spending as much.
Conversation were also had regarding the fact that HEDRA needs to justify selling the
land to the developer for $1, rather than a price more in line with the market value,
which was last assessed at $140,000. When compared to the Industrial Park projects
where land is sold per acre, with requirements of staying in business for 5 years and
bringing a certain number of jobs at a certain pay rate and HEDRA typically invests
about 5-7% into these projects. This project HEDRA would be a much bigger
investment for HEDRA with the total investing somewhere between 15 – 19%. How
does HEDRA justify this when future project come forward asking for assistance?
Discussions continued, and it was pointed out that HRA acquired this property to get
rid of blight, control the site and keep the trees. HEDRA entered into the Development
Agreement with Stotko Speedling in 2009 to help HEDRA find someone who would
work within the commissions parameters. HEDRA put tougher restrictions on this
property than typically seen in the Industrial Park where HEDRA sells then empty land
with no restrictions. The commissioners agreed that with this project HEDRA would be
getting high paying professional jobs in town, not just your average $12 - $18/hr
positions. The developer and his client are working within the parameters and keeping
the trees, which is not and easy task. And the proposed building is higher quality than
what was initially proposed in the Development Agreement, even if it’s smaller.
Commissioners also agreed that they currently own a lot of property, it’s time to start
developing some of it. If HEDRA denies this project which has many positives (listed
above) what exactly is it that the Commission is holding out for?
After further discussions Commissioner Keena motioned to approve the concept plan
and grant staff the authority to prepare the purchase agreement, motion was seconded
by Commissioner Kelley.
Motion passed 6 - 0
A:
DJOURNMENT
Commissioner Keena moved to adjourn at 8:35 am, Commissioner Keena seconded.
Motion Passed 6-0
Next meeting is scheduled for Thursday, May 12, 2011 at 6:00pm in the Council Chambers.
Shannon M. Rausch
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Minutes – Hastings EDRA – 04/21/11 Page