HomeMy WebLinkAbout04-03-86 Special
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Hastings, Minnesota
April 3, 1986
The City Council of the City of Hastings, Minnesota met in a special meeting on
Thursday, April 3, 1986 at 7:00 p.m. in the City Council Chambers of City Hall with
the City of Hastings HRA.
Members Present: Councilmember Berg, Werner, Kulzer, Nesbitt, Plan,
Mathiowetz and Mayor Stoffel.
Councilmember Trautmann arrived at approximately 8:30 p.m.
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Members Absent: None.
John Grossman Director of the Hastings HRA gave an overview of the process
for preliminary agreement regarding the developnent of a high rise on property owned
by the HRA (Master Inc. and O'Connor Kranz Building). Dave Woltersdorf on behalf
of Harbor Place Partnership then gave a brief description of the project which
involved 90 units. Option B would be built over Tyler Street and would require
moving utilities which now lie in Tyler Street and Option A would require acquiring
additional land from Elizabeth Hjermstad and would not require any utility relocation.
Mr. Woltersdorf also gave brief descriptions about the type of unit and average
cost for these units. He then described the public benefits of the proposed project:
(1) It would increase the economic viability of the downtown. (2) Will bring
in people wi thin a ten mile radius. ( 3) Homes would become available wi thin the
city limits for younger people after the older people sell their homes to move in.
(4) The former Fairway Grocery would become more desirable for developnent. (5)
Would provide for alternate housing for the elderly. (6) Would be a large investment
in the downtown which will induce others to invest in the area.
The HRA's consultants then gave a brief overview of the proposed project.
Mark Koegler, VanDoren Hazard Stallings, gave an overview of the land use. Nancy
Palm, James McComb and Associates, listed several concerns: the rents are higher
due to the corrmon area and the total number of units might be somewhat small as
compared to other projects which range from 115 to 150 ~ the project should have
some sort of covered parking, the total concept seemed to be very good and would
not only benefit the downtown area but the whole community.
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Rebecca Yanisch, Public Financial Systems, indicated that the interest
reduction program which the HRA is considering is a common tool for this type of
project and that it was important for the City Council and the HRA to enter into
a preliminary agreement so that a more comprehensive study could take place.
Mark Ulfers, Dakota County HRA, reviewed the programs available for this
project and how the recent Federal Regulations were effecting the programs. He
also discussed occupancy requirements for low and moderate incomes and that if
these bonds were used, the building could not be converted into condominiums
for ten years. He indicated that if the developer were to sell or transfer
title to this project the HRA would be reimbursed for their financial assistance
by participating in any appreciation that might take place. Questions regarding
market analysis and parking conditions were asked.
Don Eddy, President of the Downtown Hastings Association, read a resolution
which his organization passed on February 7, 1986 in support of the project. Al
Vandehaar, Executive Secretary of the Chamber of Commerce, read a resolution
supporting the project providing that additional information showed that it was
feasible. Elizabeth Hjermstad indicated that she felt that a one story building
should be built instead of a multi-story building. Bill Birchen thought the
city was wise in using consultants on such an expensive project. Mr. Kelley
wanted to know if the study showed that the rents were high. Mr. George
Barty indicated that he felt that the building should not be just used for elderly.
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After the discussion several Councilmembers expressed concerns about not
having enough information in order to vote and Consultants and Staff responded
by saying that the preliminary agreement would require both parties to provide
this information to the City Council and the HRA.
Moved by Councilmember Werner, seconded by Councilmember Mathiowetz to REEalJI'ICN ill.
approve a preliminary agreement with Harbor Place Partnership for site B, which 35-86m.JMIN'\RY
requires the closing of Tyler Street with the relocation of utilities and includes~
an amendment to the agreement IV-i which requires the developer to pay $8,500 for
the review of the proposal. 7 Ayes~ Nayes, Nesbitt. Copy of resolution on file.
Moved by Councilmember Werner, seconded by Councilmember Plan to adjourn this
meeting at 9:25 p.m. 8 Ayes~ Nayes, None.
ATTEST
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