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Home My WebLink AboutI.A - Agenda Notes HEDRA AGENDA NOTES October 11, 2018 6:00pm II. MINUTES Please see the attached HEDRA Meeting minutes from the September 13th regular meeting for your review and approval. III. BILLS September Bills Braun Intertec *$27,163.98 Block 1 – Environmental Consulting Briggs & Morgan $2,000.00 Hudson – TIF and Development Agreement Stantec Consulting *$1,170.45 Hudson – Supplemental Sampling IEDC Online $1,049.00 Admin – Conference – IEDC Nat’l Conf Registration Delta Airlines $296.40 Admin – Conference – IEDC - Airfare DEED Communications $100.00 Admin – Conference – MN Redev Conf Registration WEDA $50.00 Marketing – Econ Development Coord. Job Post Please see attached general ledger detail from the last two months for further information. IV. BUSINESS A. Presentation: Ancestors Park - Hastings Prescott Area Arts Council Members of the Hastings Prescott Area Arts Council (HPAAC) have requested the opportunity to discuss conceptual plans for the development of an Ancestors Park honoring the contributions of Native American and immigrant groups to Hastings. HPAAC seeks to develop the park north of the existing Artspace Hastings Lofts building on Block 1. The 1.49 acre site was formerly home to Masters Tannery and Local Oil (bulk fuel storage). The Masters Site was purchased by the HRA in 1985 for $408,000. The Local Oil Site was purchased by the HRA in 2001 for $250,000. The HRA and HEDRA have long desired sale and development of the property for commercial or mixed use purposes. Environmental cleanup of the site was conducted in the last 1990’s and the site was given a Certificate of Completion for Environmental Cleanup at that time; however changes in environmental regulations require more detailed cleanup to occur (similar to what was conducted on the Hastings Artspace Lofts Property). In August, 2018, Braun Intertec completed a revised Phase I, Phase II, and Response Action Plan for environmental cleanup of the site (through grant funds issued by Metropolitan Council). The City is preparing applications for environmental cleanup assistance to meet the November 1, 2018 application deadline. Action: Review and discuss the potential for development of the Park on Block 1. B. Review Options for Development: Block 1 North of Artspace HEDRA has long desired development of the 1.49 acres north of Artspace for commercial or mixed use development. Over the past few years staff has discussed options for development of a variety of concepts with a number of different entities. In order to move closer to development of the site, execution of a preliminary purchase and development agreement is desired. The preliminary agreement would grant specific development rights to an entity for a period of time to allow for further develop plans, similar to what was done with the Hudson property. Staff has been in discussions with two separate development entities and asked for both to submit preliminary development offers\plans for the property for HEDRA consideration. At this time, neither entity has submitted an offer, but both still remain interested in exploring property development. The preliminary concepts include the following:  Panache Cidery – Purchase and development of the entire site for development of a cidery tasting room, retail, office, and residential space. Panache is considering construction of a three story, 7,200 s.f. structure (2,400 s.f. footprint) near the southern end of the site with adjacent parking. The northern half of the site would be reserved for open space and planting of apple trees.  Cottage Rental – The City has been in discussions with an individual seeking to construct a number of detached cottages for vacation lodging. In the absence of preliminary offers, HEDRA is asked to consider the following:  Comments or preferences on the proposed concepts.  Preferences on site development ideas?  Should HEDRA seek additional concepts or ideas via a Request for Proposal or Development Roundtable? Action: Review and discuss potential development. Please see the attached conceptual drawing for Panache Cidery for further information. C. Public Hearing: Amended Financial Assistance and Business Subsidy Criteria HEDRA is asked to hold a public hearing and adopt changes to the Amended Financial Assistance and Business Subsidy Criteria. The criteria was originally adopted by HEDRA and the City Council upon establishment of the Board in 2009. The document have been reviewed by City Staff, Northland Financial Advisors, and HEDRA at the September 20th Meeting. Proposed changes include:  Update Minnesota State Statute enabling language to reflect current law.  Replace specified minimum wage provisions with language requiring payment of a minimum wage, exclusive of benefits.  Delete the requirement to review wages annually  Add language stating that Subsidy Agreements will be part of a broader development agreement for the project, whenever possible. Action: Adopt Resolution No. 2018-05 – Financial Assistance and Business Subsidy Criteria. D. Adopt Amended HEDRA Bylaws The Commission is asked to adopt changes to HEDRA Bylaws. The Bylaws were originally adopted by HEDRA and the City Council upon establishment of the Board in 2009. The document have been reviewed by City Staff, Northland Financial Advisors, and HEDRA at the September 20th Meeting. Proposed changes include:  Removal of a HEDRA seal (we’ve never developed one).  Change the meeting time to 6:00 pm on the 2nd Thursday of the month.  Require a majority of all HEDRA members (4 of 7) to take action on the following items:  Issuance of Business Subsidies as defined by Minnesota State Statute 116J.993.  Issuance or forgiveness of any loan exceeding $20,000.  Authorization to purchase or sell of any real property.  Authorization to execute any contract expending more than $20,000 in Authority funding.  Authorization to establish a Tax Increment Finance District. ACTION: Adopt the proposed Bylaws. Upon approval the Bylaws would be forwarded to the City Council for their approval. E. Adopt Amended HEDRA Administration and Management Practices The Commission is asked to adopt changes to HEDRA Administrative and Management Practices. The Practices were originally adopted by HEDRA and the City Council upon establishment of the Board in 2009. The document have been reviewed by City Staff, Northland Financial Advisors, and HEDRA at the September 20th Meeting. Proposed changes include:  Delete the requirement to report annually to the City Council on any changes to the enabling resolution; changes would still be reported to the Council when desired.  Amend the staff designee to HEDRA to match the current title.  Remove the City Finance Director as a signatory on disbursements; currently the Treasurer is the only signatory. ACTION: Adopt the proposed Administration and Management Practices. Upon approval the Practices would be forwarded to the City Council for their approval. F. Resolution: Authorize Rental Rehabilitation Loan – Old Neighbors, LLC (Markus Warren) – 101 East 6th Street HEDRA is asked to consider a $6,000 rental rehabilitation loan for Old Neighbor, LLC for property located at 101 East 6th Street. Funding would be used to replace windows. ACTION: Adopt Resolution No. 2018-06 approving a rental rehabilitation loan for Old Neighbor, LLC. Please see the attached staff report for further information. V. REPORTS AND INFORMATION A. Hudson Development Staff is scheduled to meet with representatives from Confluence Development on October 9th and will present further information at the meeting. B. Economic Development RFP A Request for Proposal (RFP) to provide economic development services has been distributed with responses due on November 2nd. We seek to have services provided by December, 2018. C. Commercial Vacancy Available October, 2018 Available September, 2018 Net Change Downtown 7 7 0 Highway 55 15 14 +1 Vermillion Street 15 15 0 Industrial Park 4 4 0 TOTAL 41 40 +1  999 Westview Drive has advertised office space for lease D. Development  Plans for Wallin 18th Addition, a 14 lot single family villa home subdivision located on Brandlewood Court, east of General Sieben Drive were denied by the City Council on September 17th  Plans for a new building for Caribou Coffee\Einstein Bagel located directly south of Walgreens were removed from the Planning Commission agenda. We are working with the developer to ensure better access to Vermillion Street.  Renovations of Pleasant Hill Library are underway. A temporary library has been established at Westview Mall.  Renovation of 1207 Vermillion Street for Dunkin Donuts has begun. ATTACHMENTS  HEDRA Minutes – September 20, 2018  HEDRA Bills – September, 2018  Concept Plan – Panache Cidery  Resolution No. 2018-05 – Financial Assistance and Business Subsidy Criteria  HEDRA By-Laws  HEDRA Administration and Management Practices  Resolution No. 2018-06 – Rental Rehab Loan – Old Neighbor, LLC