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HomeMy WebLinkAboutIV. A. Hold Public Hearing: Consider Sale of Property Blk 29 to Carlson Capital Mgt.SALE AND DEVELOPMENT REVIEW -BLOCK 29 STOTKO SPEEDLING\CARLSON FINANCIAL JUNE 2, 2011 GENERAL INFORMATION Proposed Actions 1) Hold a public hearing to consider the sale of land 2)Authorize signature of the Purchase and Development Agreement – Carlson Capital Management 3)Authorize signature to terminate the Preliminary Development Agreement – Stotko Speedling Property th Lots 1-2, Block 29, TOWN OF HASTINGS. Property is located on the Southwest Corner of 4 Street and Sibley Street. Property contains 0.4 acres and is owned by the Hastings Economic Development and Redevelopment Authority Proposal Stotko Speedling\Carlson Capital Management plan to construct a +/- 3,815 s.f., one story office building. The design and materials of the building would match existing buildings in the area. The site would also contain a 14 stall parking lot. Carlson proposes to purchase the property for one dollar, consistent with the Preliminary Agreement. Stotko Speedling would construct the project Please see attached site plans. History The Hastings Housing and Redevelopment Authority (HRA) purchased the property in 2002-03 and demolished a pre-existing duplex. The HRA has sent out RFP’s and entertained development proposals since purchase. In 2009 Stotko Speedling responded to the latest RFP and entered into a PreliminaryAgreement with the HRA\HEDRA to develop the property. Since Carlson Capital Management will own the building, the Purchase and Development Agreement will be between HEDRA and Carlson. The Preliminary Development Agreement between HEDRA and Stotko SpeedlingStotko would be terminated upon signature of the Purchase and Development Agreement. HEDRA Review – April 21, 2011 st At the April 21Meeting, HEDRA reviewed the concept plan for development. HEDRA was generally supportive of the use, architecture, and design of the site. HEDRA desired further information on the development costs and rationale for selling the property for one dollar. HEDRA Meeting Packet - June 2, 2011Page 10 of 46 HEDRA Review – May 12, 2011 HEDRA ordered the public hearing to sell the property on May 12, 2011. The Commission also discussed the draft Purchase and Development Agreement including requiring the developer to pay for pre-sale costs, and requiring the business to operate in the facility for at least five years. The decrease in proposed parking spaces from 18 to 14 was also discussed and was generally acceptable to the Commission. SITE PLAN APPLICATION SUBMITTED Carlson has submitted a Site Plan application for construction of the building to the Planning th Department. The review is tentatively scheduled for the June 13 Planning Commission and th June 20 City Council. REVIEW OF BUSINESS SUBSIDY HEDRA has adopted criteria for providing business assistance consistent with State Statutes. Although the value of the project would not trigger the development of a Business Subsidy Agreement, the criteria has been used to evaluate the use of assistance. Public Purpose A business subsidy must meet a public purpose. For HEDRA projects, public purposes include but are not limited to the following (Staff comments appear in bold italics): a.Increase the tax base. This is not a sufficient public purpose by itself; a subsidized project must have an additional public purpose; the taxable market value of the property is 140,000. Total estimated project costs are $723,000. b. Retain existing jobs, provided that job loss is specific and demonstrable; N/A – property was previously residential – jobs will be added. c.Create quality jobs. Subsidized projects are expected to add new jobs at competitive wages, unless specifically waived (see 2.02); Net jobs would be added to the site. Mr. Stotko has been asked to provide a job and wage estimate. d.Enhance economic stability and address changes in the economy: by facilitating the development of new types of businesses, by facilitating the adjustment of existing businesses to meet new conditions and by encouraging vocational training and retraining; Construction of an office building would enhance economic stability. e.Encourage redevelopment and development investment in city-designated areas; Block 29 is a key redevelopment opportunity in a designated redevelopment area. f.Encourage the re-use and rehabilitation of historic properties and of sound, safe buildings, commercial and residential; theredevelopment of the property is complements the existing historic architecture of the neighborhood. g.Enhance clean air, water and soil by facilitating the cleanup of environmental problems or assisting improvements in the treatment and management of HEDRA Meeting Packet - June 2, 2011Page 11 of 46 contaminants; HEDRA is not aware of any environmental issues with the site. h.Eliminate substandard buildings or blighting conditions; Previous demolition of the duplex in 2003 eliminated blight from the site. i.Encourage the relocation of uses that are non-conforming with the comprehensive plan, zoning ordinance, Shore Lands and Critical Areas ordinances, or contribute to unsafe conditions in their present location; The property is guided and zoned for mixed use development. The development of an office building is consistent with the comprehensive plan and zoning. j.Encourage the sustainable use of energy, resources and materials.Re-use and redevelopment of the parcel promotes sustainable use. CONCEPT PLAN REVIEW Comprehensive Plan Classification – The property is designated “Mixed-Use” in the 2030 Comprehensive Plan. The proposed use is consistent with the plan. Zoning – The property is zoned C-3 Community Regional Commerce. The proposed use is consistent with the Zoning. Adjacent Property and Use The following uses abut the site: North4 th Street –Hastings City HallZoned C-3–Community Regional Commerce EastSibley Street –Guardian Angels Zoned RMU –Residential Mixed Use Apartments SouthSingle and Two Family HomesZoned C-3–Community Regional Commerce WestElm SalonZoned C-3–Community Regional Commerce Building Setbacks The proposed setbacks are consistent with neighboring buildings and acceptable. Building Setbacks are not prescribed in the C-3 District and are developed per Site Plan. Access and Circulation th Vehicles would enter a parking lot from the alley south of 4Street (entering Sibley). No direct th vehicle access is proposed for 4 Street. The parking lot potential continuation of the lot th westward to serve the Elm Salon. Pedestrians would enter the site via existing sidewalks on 4 and Sibley Streets. HEDRA Meeting Packet - June 2, 2011Page 12 of 46 Parking The building exceeds minimum parking standards. 13 parking spaces are required, 14 are provided. The HRA has sought to have additional parking spaces for use by neighboring properties. Additional spaces on this site could be used for that purpose. Architectural Elevations Architectural Elevations exceed minimum materials standards and are complimentary to adjacent structures. Tree Preservation The plan preserves existing mature oak trees on the eastern portion of the site. ATTACHMENTS Site Plan Preliminary Agreement Business Subsidy Criteria HEDRA Meeting Packet - June 2, 2011Page 13 of 46