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Home My WebLink AboutHEDRA Packet 08-11-2011HASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY . August 11, 2011, 6:00 pm City Hall Council Chambers I. Quorum II. Minutes – July 14, 2011 meeting III. Bills IV. Business A.Resolution: Authorize 2012 HRA Levy and Review Budget B.Resolution: Confirming Jurisdiction and Operation of Washington County HRA C.Marketing Audit Review D.Block 29 Parking Lot – Elm Salon V. Reports and Information A.1101 Vermillion Street Demolition and Redevelopment B.Mixed Use Hard Wire Alarm Update C.Guardian Angels Promissory Note D.Hudson E.TH 61 Bridge F.Red Rock Parking Lot Update V. Adjourn Next Meeting: Regular Meeting – September 8, 2011 HEDRA AGENDA NOTES FOR AUGUST 11, 2011 MINUTES Please see attached HEDRA Meeting minutes from the July 14th regular meeting for your review and approval. BILLS July Bills Mastercard$25.00Seminar Registration $40.00Brownfields Registration Bradley & Deike$102.00Legal Services –Guardian Angels Note $612.00Legal Services –Block 29 Sale to Carlson* Himle Horner$4653.09Marketing Services Carlson Capital($1343.00)Reimbursement of Block 29 Legal Fees * Reimbursable Expense Please see attached general ledger detail for further information. BUSINESS A.Resolution: Authorize 2012 HRA Levy and Review Budget The maximum HRA levy of .0185 percent of taxable market value is sought. The levy would yield $294,631. The continued devaluation of real estate has lowered our levy amount; last year’s levy was $309,000. The levy amount is consistent with past years. The proposed 2012 budget $759,000, a reduction of $182,000 from this year. Reductions in rehabilitation loans, redevelopment capital, and Hudson debt service account for the change. ACTION: Adopt Resolution 2011-05 authorizing the 2012 HRA Levy. Please see the attached budget summary and resolution for further information. B.Resolution: Confirming Jurisdiction and Operation of Washington County HRA The Washington County HRA has requested adoption of the attached resolution confirming the territorial jurisdiction and operation of the Washington County HRA. The resolution is requested due to a court action against Anoka County that challenged the validity of its jurisdiction. The resolution only affects approximately 20 properties within the Washington County portion of the City of Hastings. The Washington County HRA has taxing authority to provide housing and redevelopment services throughout the County. ACTION: Adopt Resolution 2011-06 Confirming Washington County HRA Jurisdiction. Please see the attached resolution for further information. C.Marketing Audit Review Please find attached a copy of the final Audit Report for your review. We will discuss the findings at the meeting on Thursday and in particular the recommendations to decide exactly what our goals should be to help Himle Horner in writing the overall marketing plan. Some points for discussion at the meeting include: Should this marketing plan assume that Hastings should try to be all things to all people (which means a more robust, and some would suggest, potentially less effective plan) or should the plan target the audiences/unique aspects as highlighted in audit responses (e.g. outdoors, Hastings as a gateway, etc.)? What should be HEDRA's role in marketing? Attracting new businesses? Marketing existing businesses? Encouraging tourism? Other? A combination? How will/should HEDRA work together with the Chamber or other organizations? In other words, will HEDRA be doing its own marketing that, while perhaps complementary to the Chamber, is completely separate? Or is there an expectation that we should suggest strategies that assume HEDRA and the Chamber will work collaboratively together toward some common goals? Any other feedback or suggestions the board has? For example, do members agree/disagree with our recommendations? What are the timelines -- both for implementation of the plan (e.g. a one-year plan? a three-year plan?) and for completion of the plan itself (e.g. present to the board in September? October?)? ACTION: Review Marketing Audit Please see the Marketing Audit for further information. D.Block 29 Parking Lot – Elm Salon th The Elm Salon located at 110 East 4 Street seeks assistance to construct a joint parking lot located behind the building on property owned by the salon and James Rossing. The salon is required to provide parking as part of their 2007 approval. The estimated cost for construction of the 14 stall parking lot is $21,000. Beth Warner, the owner of the Elm Salon seeks assistance in constructing the parking lot. It appears the project would qualify for the Commercial Rehabilitation Loan program, allowing up to 25% of the costs to be financed through HEDRA. Ms. Warner also asked if HEDRA could finance a portion of the parking lot construction. HEDRA has set aside funds for emergency grants; but this would not appear to be an emergency situation. HEDRA could consider providing cash assistance in exchange for allowing public parking in the lot. ACTION: Discuss the request of Beth Warner to provide parking lot assistance and provide any direction to staff. Please see attached the attached site locationmap and parking lot layout for further information. REPORTS A.1101 Vermillion Street Demolition and Redevelopment Tom Bakken, Building Official has inspected 1101 Vermillion Street and has determined it should be condemned. The home has been vacant for a few years since the former owner Marjorie Buendig passed away. The home is now owned by an elderly relative of Mrs. Buendig who lives a distance away and seeks to sell the property. The owner of the property would like to demolish the home, but has difficulty paying the upfront demolition cost of $5,000-$10,000. The City is exploring ways to finance upfront demolition of the property through future payback (including property tax assessment and TIF). The site is also overgrown with trees. Costs for tree removal will also be explored. The Buendig property is only 0.2 acres but abuts Vermillion Street and a similar th sized parcel owned by the City directly to the north (former 11 Street). The combination of the Buendig and City properties would produce a 0.4 acre parcel abutting the intersection of Vermillion Street and Highway 55. Please see site location map and photographs for further information. B.Mixed Use Hard Wire Alarm Update st The City of Hastings approved the Hard Wire Alarm Contract on August 1 . Staff is gathering individual property owner signatures. A preconstruction th meeting will take place on August 8. Work on individual properties could take place in August. Installation would likely be completed by the end of 2011; but no later than June, 2012 per the contract. C.Guardian Angels Promissory Note. Staff has relayed the decision to reject the proposal to Sherman and Associates. HEDRA’s proposed amendment to the note from last year still stands; payment of all interest in exchange for an extension until 2012. D.Hudson Hudson continues to remove inventory and materials. About 80% of all inventory has been removed. Equipment and miscellaneous items remain. All production at the site has ceased. Hudson has stated the building will be vacant at the end of August. City Staff will be meeting with Dakota County and Barr Engineering at the end of August to establish a timeline and schedule for completion of remaining Phase II Environmental Investigative items. Completion of Phase II items and approval of the Response Action Plan (RAP) by Minnesota PCA is necessary prior to any cleanup. The RAP should be complete by the end of the year. Stark Preservation will be completing the re-use analysis by the end of August. A public meeting to discuss findings will likely be schedule for September. E.TH 61 Bridge Throughout the site crews continue to move forward with the projects that were restarted last week. Some of the work includes Pile driving for the new north abutment. "Stem" (or column) work on Pier 5 (Pier 5 will support the south end of the new bridge's main span). Utility work on the east downtown access ramp. F.Red Rock Parking Lot Update Canadian Pacific Railroad has finally authorized the release of remaining easement on Block 16. Design work will continue through 2011. Construction should take place in early 2012. ATTACHMENTS HEDRA Minutes –July 14, 2011 – Regular Meeting General Ledger Detail – July, 2011 2012 Budget Summary Resolution No. 2011-05: Authorization of 2012 HRA Levy Resolution No. 2011-06: Confirming Washington County HRA Jurisdiction Marketing Audit Site Location Map – Block 29 Parking Lot Layout – Block 29 Site Location Map –1101 Vermillion Street Site Photographs – 1101 Vermillion Street Hastings Economic Development and Redevelopment Authority 6:00 pm Hastings City Hall Minutes of July 14,2011 HEDRA CommissionersPam Holzem, Kurt Keena, Tony Alongi, Ron Toppin, Michael Kelley,and Danna Elling Schultzpresent HEDRA Commissioners Absent:Dennis Peine Staff present: Community Development Director John Hinzmanand Community Relation Specialist Shannon Rausch. Others Present: Andy Gitzlaff, Transportation Planner,Washington County Regional Railroad Authority Q: UORUM A quorum was establishedand the meeting was called to order, by Chair Toppinat 6pm with four members present, (Commissioner Elling Schultz and Kelley arrived at 5 after the hour.) I. M INUTES Commissioner Keena motioned to approve the minutes from the June2, and June 9, 2011 meetings, Commissioner Holzemseconded the motion. Motion approved 4-0 {Commissioner Elling Schultz and Kelley arrived at 6:05.} III.B ILLS Commissioner Keenamoved to pay the bills. Commissioner Alongiseconded the motion. Motion Passed 6-0 IV.B USINESS Authorize Signature: Access Agreement – Hudson Manufacturing Cleanup – A. Dakota County Dakota County has chosen the Hudson site for use of federal EPA investigative grant funds. The funding will pay 100% of remaining Phase II and RAP development. The value of the work is estimated at $56,000, and would complete all environmental site investigative work prior to clean up. Dakota County and its environmental contractors seek access to the building to perform the work. CommissionerKelley motioned toAuthorize Signature of agreementand to allow Dakota County access to perform their work. Commissioner Keenaseconded the motions. Motion Passed 6-0 B. Discuss Amendment to Note: Guardian Angels-Sherman Associates. Sherman Associates proposes to amend the existing $150,000 promissory note for improvements to the former Guardian Angels Church located at 4th & Sibley Street. The proposal includes: 1) Amend and restate the Note to provide that payments will be made each year on or before March 31 commencing March 31, 2012, solely from “Surplus Cash”. Currently payments are made monthly and interest is accrued at 7% per annum per the 3rd Amendment to the Promissory Note. The expectations of interest accrual are not presented by Sherman. 2) Surplus Cash will consist of gross operating revenue less all operating expenses, including a property management fee of 5%, reserves and amortization of the cost of capital improvementsto the building over 10 years. The extent and costs of the improvements are unknown. 3) Extend the maturity date of the Note to June 30, 2025 (15 years from last extension). On September 16, 2010 HEDRA authorized signature of the 4th Amendment to the Note extending the maturity date to June 30, 2012 andrequiring payment of the principal. The agreement was never signed by Sherman. In March 2011, a Notice of Default was sent to Sherman. The $150,000 note was originally issued in 2003 and has been amended several times. The value of the note with interest is $210,752.55 as of July 31, 2011. After discussing Sherman’s various options, the Commission declined all options and instead Commissioner Elling Schultz motioned to havestaff to collect payment from Sherman. Commissioner Keena seconded the motion. Motion Approved 6 - 0 C. Mixed Use Hard Wire Alarm – Award Contract & Commit Grant Funds On June 1st the City held a bid opening for Mixed Use Hard Wire Alarm proposals. Respondents submitted two separate bids for the work, one for CDBG eligible projects (27 properties) and one for projects ineligiblefor CDBG funds (3 properties).Six responses were received with Alarm Express being the low bidder for both bids. The Commission was asked to consider the following actions: 1) Award Contract for CDBG ineligible projects to Alarm Express for $11,205.51. 2)Commit up to $5,000 in HEDRA Mixed Use Hard Wire Alarm grant funds towards the contract for CDBG eligible projects. Funding would be used to cover the gap between the estimated project cost and available CDBG funding. Commissioner Keena Motioned to approve both actions. Commissioner Holzem Seconded the motion. Motion Approved 6 - 0 D.Industrial Park Boulevard Landscaping City Engineer, Nick Egger, is requestingHEDRA direction pertaining to Industrial Park boulevard landscape gardens. The gardens were installed as part of the Industrial Park improvements in 2009 and consist of prairie grass plantings that take up to three years to establish. Public Works has communicated with owners onthe need to allow the plantings to grow (many thought the plantings were weeds), and have staked out the right-of-way lines to establishthe property boundary. Despite these efforts, some areas have been mowed, essentially killing all of the prairie grasses andnow need to be replanted in order to be reestablished. Options include: 1)Seek Council authorization to restore the prairie grass and bill the property owners for this cost (Ballpark estimate is $5,000 for all affected areas). 2)Leave thedamaged areas as is, but strongly discourage any other property owners from mowing the prairie grass. 3)Let Industrial Park property owners maintain the right of way abutting their property as they see fit. Following a discussion that included all of the efforts staff and council went through in order to make this project more affordable – part of which was this option to plant prairie grass, HEDRA commissioners strongly felt that the only option to consider was option on, seek council’s approval to authorization to restore the prairie grasses in the ditches where it had been mowed and assess the property owners for the respiration. Commissioner Keena motioned to ask council to authorize the restoration of the prairie grasses. CommissionerAlongiseconded the motion. Motion approved 6 - 0 E. Riverfront Addition “AKA Block 1” Land Price Greenhouse Village Senior Housing Cooperative is interested in acquiring part of Riverfront Addition from HEDRA. The property was previously known as “Block 1” and is bounded by Tyler Street, Mississippi River, CP Rail, and 2nd Street.Greenhouse proposes to construct a senior housing cooperative on the site similar to their existing project in Roseville. (The property was previously committed to Sherman Associates as part of a 2005 Purchase Agreement to construct 28 condominium units. Sherman failed to reach minimum presale requirements and the agreement was terminated in 2007. ) Greenhouse has inquired about the purchase price of the property. DakotaCounty has valued the property at $7.26 per s.f. Commission is currently suggesting a price of $8/s.f. if we get a serious enquiry we would then be willing to pay for an appraisal of the land. F. Red Rock Corridor Transit Area Master Plan The final draft of the Red Rock Corridor Transit Area Master Plan has been completed and was provided to the commission forreview and comments. Andy Gitzloff, with the Red Rock Corridor Commissionwas present to discuss with HEDRA and answer any questions.The plan will also be reviewed by the Planning Commission and City Council. G. Review 2012 Levy and Budget A proposed outline of the 2012 budget was presented to the commissioners for review and comments.HEDRA is scheduled to take final action on the budget and levy at the August meeting. H. Discuss Televising Future HEDRA Meetings City Council, Planning Commission, and Parks and Recreation Meetings are currently televised through local cable access. HEDRA will begin being televisedin the future. IV.R&I EPORTSNFORMATION A.Marketing update Himle Horner has completed the Audit interviews. They conducted ten of these calls in all (which is a couple more than they initially intended to do, but gave a more rounded view, all while staying under budget.) Currently they are in the process of finalizing the audit report which will provide direction when writing the actual marketing plan. A final draft of this audit report is expected from Himle Horner in Mid July. Staff will forward it on to HEDRA for review and comments at the August meeting. As for budget, Himle Horner has remained vigilant with our dollars and is currently a couple thousand under and feels comfortable with what is left to be done. Their hope is to stay under budget so that HEDRA has a little leftover once we get the plan to actually begin implementation yet this year. B. Hudson Thelast production line is up and running at the new Hudson site, all production in the old facility should be wrapping up in the next week or so. Hudson has moved much of their inventory out of the old building. They are still seeking vacation of the building by August. The City has been successful in its challenge to Dakota County for 2012 tax liability. The property has been deemed exempt for 2012 taxes. Based on payable 2011 taxes, the City has saved over $60,000. C.TH 61 Bridge All work on the bridge is on hold during the state shut down. A: DJOURNMENT Commissioner Keenamoved to adjourn at 7:00, Commissioner Holzemseconded. Motion Passed6- 0 Thursday, August11, 2011 Next meeting is scheduled for at 6:00pm in the Council Chambers. Shannon M. Rausch HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY DRAFT Combined 2012BudgetSummary, 404 and 407 Accounts Revenues 20112012Notes HRA Levy 306,000294,631HRA: .0185% of TMV* General Levy266,000179,251From Fund 407 –Includes Personnel and services Interest27,00027,000On HRA fund balance 2,9002,900On IP fund balance Loan payments13,00013,000Installment loans w/interest Rents12,50012,500Farm IP land –Will be rebid in Fall ‘11 Transfer 315,000283,254From fund balance Total942,400759,254 Expenses Personnel salary and 126,300118,39325% Community Development Director, 50% benefitsCommunications Spec. (Estimated) Administration 8,40010,005Memberships and dues, travel, office, conferences, advertising, insurance, accounting. Property expenses1,0003,000Maintenance and replacement Professional services63,80057,000Consultants, experts, legal, costs & fees – includes Hudson, Marketing, & analysis of future sites Rehabilitation 123,00085,000Loans, grants for owner rehabilitations and code improvements 40,000 Residential loans 5,000 Res. emergency grants 40,000 Commercial loans Redevelopment 300,000250,000Majority dedicated to Hudson Demolition & (capital)Cleanup – including 50% of demo cost ($217,000) Hudson debt service313,000235,856Actual debt service better than expected Total expenses 935,500759,254Will be changed by final personnel number *For the HRA levy this is the statutory maximum based on the 2012 Taxable Market Program activities for 2012 Hudson Property remediation and demolition Promote riverfront redevelopment Facilitate commercial redevelopment projects in Downtown and Vermillion project areas Make commercial & residential rehabilitation and code improvement loans Acquire obsolete and blighted property for redevelopment Promote and assist commercial and industrial projects for job and tax base growth Assist historic preservationprojects Cooperate with local and commuter multi-modal transit projects Fund Balances 7/7/11 404 Account (former HRA) Estimated 593,000 407 Account (former (IP) Estimated 255,000 Receivables 404 Account 210,753 note due from Guardian Angels HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY Resolution No. 2011-05 August 11, 2011 AUTHORIZING THE LEVY OF A SPECIAL BENEFIT TAX PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6, AND APPROVAL OF A BUDGET FOR FISCAL YEAR 2012 Commissioner ________________ introduced the following resolution and moved its adoption: WHEREAS, the Hastings Economic Development and Redevelopment Authority in and for the city of Hastings (the “Authority”) was created by the City Council of the City of Hastings (the “City”) pursuant to Minnesota Statutes, Sections 469.090 to 469.1082, with all powers of a housing and redevelopment authority as set forth in the Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 469.001 to 469.047 (formerly, Sections 462.411 to 462.711) (the “Act”); and WHEREAS, Section 469.033, Subdivision 6, of the Act, as amended,permits the Authority to levy and collect a special benefit tax of up to .0185 percent of taxable market value in the City upon all taxable property, real and personal, within the City; and WHEREAS, the Authority desires to levy such tax in the amount of .0185 percent of taxable market value in the City; and WHEREAS, the levy of such a special benefit tax is subject to the approval by resolution of the City Council of the City; and WHEREAS, the Authority is required pursuant to Section 469.033, Subdivision 6, of the Act to, in connection with the levy of such a special benefit tax, formulate and file a budget in accordance with the budget procedure of the City in the same manner as required of executive departments of the City; and WHEREAS, the Authority has before it for its consideration a copy of a budget for its operations for the fiscal year 2012. NOW, THEREFORE, be it resolved by the Board of Commissioners of the Authority. Section 1. The budget for the operations of the Authority presented for consideration by the Authority is hereby in all respects approved. Section 2. The Authority hereby authorizes and forwards said budget to the City Council for its approval. Section 3. There is hereby levied, subject to the approval of the City Council, a special benefit tax pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, in the amount of .0185 percent of taxable market value within the City. Section 4. The Authority hereby requests the approval by resolution of the City Council of the City of Hastings of the special tax benefit so levied pursuant to this Resolution and requests the City Council to take such other actions as are necessary to levy and certify such tax. Commissioner __________________ seconded the resolution and upon being put to a vote it was adopted: Ayes: Nays: Absent: ____________________________________ Ron Toppin, President Attest: __________________________________ John Hinzman, Executive Director HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY CITY OF HASTINGS COUNTY OF WASHINGTON STATE OF MINNESOTA RESOLUTION NO. 2011-06 CONFIRMING JURISDICTION AND AREA OF OPERATION OF WASHINGTON COUNTY HOUSING AND REDEVELOPMENT AUTHORITY IN THE CITY OF HASTINGS WHEREAS, the Washington County Housing and Redevelopment Authority (“County Authority”) was established in 1981 and seeks to promote community and economic development, and provides and maintains affordable, decent and safe housing opportunities in Washington County; and WHEREAS, in 1971, the City of Hastings (the “City”) established the Hastings Housing and Redevelopment Authority (“HRA”); WHEREAS, in 2009,the City established the Hastings Economic Development and Redevelopment Authority (“HEDRA”)and assigned all HRA duties and responsibilities to HEDRA; WHEREAS, the jurisdiction and area of operation of the County Authority prior to, and continuously following the creation of HEDRA, has included and extended throughout that portion of the City lying within Washington County; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (this “Board”) of the Hastings Economic Development and Redevelopment Authority as follows: 1.HEDRAfinds and determines that continuously for over 30 years to the present, the jurisdiction and area of operation of the County Authority has extended into and has included that portion of the City lying within Washington County approximately twenty parcels within the territorial boundaries of the City. 2.This Board further finds and determines that it is in the public interest and to the benefit of HEDRA, the City and its residents and businesses, that the County Authority continue to exercise its jurisdiction throughout, and include within its area of operation, that portion of the City of Hastings lying within Washington County and certain affected parcels within the territorial boundaries of City. 3.This Board hereby confirms and by this resolution memorializes that the County Authority’s area of operation and jurisdiction extends through that portion of the City of Hastings lying within Washington County and includes approximately twenty parcels within the territorial boundaries of City; subject, however, to Section 3 of Laws 1974, Chapter 475. 4.This Board hereby authorizes the County Authority to continue to operate and exercise jurisdiction within the limits of the City of Hastingslying within Washington County. This Resolution was declared duly passed and adopted and was signed by the President of th HEDRAand attested to by the ExecutiveDirector this 11 day of August, 2011. ____________________________________ Ron Toppin, President ATTEST: _____________________________________ John Hinzman, Executive Director Print PreviewPage 1of 1 Dakota County, MN Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not Map Scale guaranteed. This is not a legal document and should not be substituted for a title search, 1 inch = 105 feet appraisal, survey, or for zoning verification. htt://is.co.dakota.mn.us/website/dakotanetis/rintPreview.asx?PrintOtData=Dakota C8/4/2011 pggppp... Print PreviewPage 1of 1 ïïðï Ê»®³·´´·±² Í¬®»»¬ Dakota County, MN Ð±¬»²¬·¿´ Ü»³±´·¬·±² ú Î»¼»ª»´±°³»²¬ ìÍÈ×ÎÈÓÛÐø×Æ×ÐÍÌÏ×ÎÈéÓÈ× ÛÙÊ×É öÍÊÏ×ÊÈÔéÈÊ××È íÅÎ×ØÚÃùÓÈÃ æ×ÊÏÓÐÐÓÍÎéÈÊ××È ÛÙÊ×É æÛÙÛÎÈôÍÏ× Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not Map Scale guaranteed. 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