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Home My WebLink AboutII. 08-11-2011 MinutesHastings Economic Development and Redevelopment Authority 6:00 pm Hastings City Hall Minutes of August 11,2011 HEDRA CommissionersDennis Peine,Ron Toppin, Pam Holzem, Michael Kelley,and Tony Alongi present HEDRA Commissioners Absent: Kurt KeenaandDanna Elling Schultz Staff present: Community Development Director John Hinzmanand Community Relation Specialist Shannon Rausch. Q: UORUM A quorum was establishedand the meeting was called to order, by Chair Toppinat 6pm with five members present. I. M INUTES Commissioner Kelleymotioned to approve the minutes from the July 14, 2011 meetings, Commissioner Holzemseconded the motion. Motion approved 5-0 III.B ILLS Commissioner Keenamoved to pay the bills. Commissioner Holzemseconded the motion. Motion Passed 5-0 IV.B USINESS A.Resolution: Authorize 2012 HRA Levy and Review Budget A. Community Development Director John Hinzman presents details of the 2012 HRA levy and Budget including, the maximum HRA levy of .0185 percent of taxable market value.The levy would yield $294,631.The continued devaluation of real estate has lowered our levy amount; last year’s levy was $309,000. Thislevy amount is consistent with past years. The proposed 2012 budget is $759,000, a reduction of $182,000 from this year. Reductions in rehabilitation loans, redevelopment capital, and Hudson debt service account for the change. Commissioner Kelley motioned toAdopt Resolution 2011-05 authorizing the 2012 HRA Levy. Commissioner Peineseconded the motions. 1 Minutes – Hastings EDRA – 08/11/11Page Motion Passed 5-0 B. Resolution: Confirming Jurisdiction and Operation of Washington County HRA The Washington County HRA has requested that the Hastings EDRA adopt a 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. Commissioner Alongi motioned toAdopt Resolution 2011-06 Confirming Washington County HRA Jurisdiction.Commissioner Holzem seconded the motions. Motion Approved 5 - 0 C. Marketing Audit Review The commissioned reviewed and commented on thefinal Audit Report From Himle Horner Inc. (HHI). Together the Commission discussed therecommendations included by HHIand narrowed the focus of what exactlytheirgoals should be to help HHI in writing the overall marketing plan. Discussion was had regarding: Should this marketing plan assume that Hastings should try to be all things to all peopleor should the plan target the audiences/uniqueaspects as highlighted in audit responses (e.g. outdoors, Hastings as a gateway, etc.)? Also What should be HEDRA's role in marketing? Attracting new businesses? Marketing existing businesses? Encouraging tourism? Other? A combination? The commission strongly felt that the plan need to focus on HEDRA is uniquely set up to do, help existing business as the commission works to attract new businesses. This plan needs to be tied to HEDRA original goals. In regards towork together with the Hastings Area Chamberof Commerceor other organizations, doesthe commissionfeel they should be doing its own marketing that, while perhaps be complementary to the Chamber, or would the commission rather remain completely separate? Orperhaps should the plan be writing in such a way thatHEDRA and the Chamber will work collaboratively together toward some common goals? The Commissioners felt that the plan should focus on what HEDRA’s goals are, and when natural overlaps occur than take advantage of the opportunities and work together with the Chamber or any other organization. What are the timelines --both for implementation of the plan (e.g. a one-year plan? Athree-year plan?) and for completion of the plan itself (e.g. present to the board in September? October?) The commission felt the plan should provide guidance for at least the next two to three years (2012 – 2015) and would like to have something in hand by the 2 Minutes – Hastings EDRA – 08/11/11Page end of the year so it can begin being implementing early in 2012. D.Block 29 Parking Lot – Elm Salon The Elm Salon located at 110 East 4th Street is seekingassistance 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 has come forward to ask HEDRA for assistance in constructing the parking lot. Based on current information theproject seem as though it 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 discussed the fact that it could consider providing cash assistance in exchange for allowing public parking in the lot, but was reluctant to do so, concerned about the precedent that would set. At this time the Commission is not willing to offer cash assistance but encourages Ms. Warner to apply for one of HEDRA’s commercial loan. E. Forgiveness of HEDRA Loan In November 2009 HEDRA provided a loan to help resident pay for an unusually high assessment. Half of the loan was expect to be paid while the other half was to be forgiven over time. Due to the fact that he resident has since been forced to file bankruptcyand the house is being foreclosed on they are asking that now the entire loan be forgiven. The Commissionunderstandsthe position this residentis in and the unlikelihoodthat theywill see any money repaid once the house is foreclosedon. However,the Commission encourages the resident during the six month redemption period when they are not making mortgage payments to try and make some sort of “good-faith” payments back to HEDRA. IV.R&I EPORTSNFORMATION A.1101 Vermillion Street Demolition and Redevelopment Tom Bakken, Building Official, has recently inspected 1101 Vermillion Street and has determined it should be condemned. The home has been vacant the pastfew 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 (includingproperty tax assessment and TIF). The site is also overgrown with trees. Costs for tree removal will also be explored. 3 Minutes – Hastings EDRA – 08/11/11Page The Buendig property is only 0.2 acres but abuts Vermillion Street and a similar sized parcel owned by the City directly to the north (former 11th 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. Commission suggested that staff look into HEDRA purchasing the property and preparing itfor resale themselves. B.Mixed Use Hard Wire Alarm Update The City of Hastings approved the Hard WireAlarm Contract on August 1st. Staff is gathering individual property owner signatures.A preconstruction meeting took place on August 8th. Work on individual properties may begin to take place in August. Installation willlikely 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. We now wait for a response. 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 theend 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 work was affected by the state shutdown and is now expect to be completed by sometime in September. A public meeting to discuss findings will likely be schedule for late September or early October. 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 4 Minutes – Hastings EDRA – 08/11/11Page early 2012. A: DJOURNMENT Commissioner Holzemmoved to adjourn at 6:50pm, Commissioner Alongiseconded. Motion Passed 5 - 0 Thursday, September 8, 2011 Next meeting is scheduled for at 6:00pm in the CouncilChambers. Shannon M. Rausch 5 Minutes – Hastings EDRA – 08/11/11Page