HomeMy WebLinkAboutII - MinutesHEDRA
HASTINGS ECONOMIC
DEVELOPMENT and
REDEVELOPMENT AUTHORITY
Hastings City Council Chambers
Minutes of November 14, 2019, 6:00 PM Regular Meeting
HEDRA Commissioners Present: Balsanek, Peine, Sinclair, Toppin and
Vaughan
HEDRA Commissioners Absent: Sullivan and Fox.
Staff Present: Community Development Director John Hinzman
Economic Development Coordinator Rusty Fifield
I. Quorum
A quorum was established and the meeting was called to order by President Sinclair
at 6:00 PM with seven members present.
II. Minutes
Commissioner Toppin motioned to approve the minutes from the regular meeting of
October 10, 2019, as presented, seconded by Commissioner Balsanek. Motion approved
5‐0.
III. Bills
Hinzman summarized the bills.
Commissioner Toppin motioned to approve as presented, seconded by Commissioner
Peine. Motion approved 5‐0.
IV. Business
A. Revolving Loan Fund Applications
1. Marathon Properties LLC (Tom Jung) - 214 East 2nd Street
2. River City Properties LLC (Tom Klein) - 216 East 2nd Street
Fifield discussed the revolving loan fund applications from Marathon Properties
LLC and River City Properties LLC.
Sinclair inquired if approval was contingent on using a licensed electrician. Fifield
responded that the application indicates a specific electrician. Hinzman added that a
building permit was a condition of approval.
Commissioner Toppin motioned to approve both as presented, seconded by
Commissioner Balsanek. Motion approved 5-0.
B. Panache Cidery
Fifield summarized previous discussions and decisions regarding Panache Cidery.
Ameeta Jaiswal, Panache Cidery, provided a progress update and requested that
the environmental grant funds be used for a topographical survey and other site
development costs.
Commissioner Vaughan, Hinzman and Jaiswal discussed the specifications of the
grant received from the Metropolitan Council.
Hinzman indicated he previously spoke with Jaiswal that a topographical survey
and other site planning and development costs should be at the expense of
Panache.
Commissioner Sinclair summarized the agreement history with Jaiswal. He
continued that the received grant funds were not tied to the Panache business and
that the funds should not be used to pay for a topographical survey.
Hinzman discussed that the City has spent a lot of money and time to acquire and
clean up the site, the site has complicated issues, recommended that the developer
have experience with similar issues and staff’s concerns that were outlined in the
memorandum regarding Panache’s experience and capability to develop the
property.
Jaiswal requested to extend the December 31, 2019 deliverables deadline and
explained why.
Commissioner Sinclair asked if Jaiswal would be amendable to hire a development
professional as a condition of extending the deliverables deadline. She indicated
that it would be considered; however, she would like to work with the team she
already assembled.
Commissioner Vaughan remarked that it was unknown the number of missed
potential developers/partners due to the lengthy agreement with Panache. He
explained why the agreement should not be extended.
Commissioner Balsanek concluded that the Commissioners need a commitment
from Jaiswal, for example submitting building plans.
Commissioner Balsanek and Hinzman discussed possibly obtaining bids for site
cleanup and the due date to use all of the grant funds.
Commissioner Sinclair clarified the documents due December 31, 2019.
Commissioner Sinclair recommended that the Real Estate Option Agreement not
be extended. The other Commissioners were in agreement.
C. Focus Issues for 2020 - Strategic Plan Priorities
Fifield discussed a list of priorities for 2020 and that HEDRA will discuss and set
priorities at the December meeting.
Commissioner Balsanek and Fifield discussed future developments.
Commissioner Toppin inquired about the feasibility of apartments constructed on
various commercial lots within the City of Hastings. Fifield detailed the
possibilities of apartment complexes in the City.
Commissioner Toppin and Hinzman discussed zoning regulations for potential
developers.
Commissioners Peine and Balsanek commented about how certain housing types
may attract Millennials to live in Hastings. Commissioner Vaughan remarked that
the role of HEDRA was to be prepared for development by maintaining
infrastructure and to aid the developers, not to be the developers.
Commissioner Vaughan summarized a conversation he had with a local business
owner regarding living and working in the same community. Fifield responded that
he had been examining that topic.
V. Reports and Information
A. The Confluence
Hinzman updated the Commissioners of the progress of work being done at the
Confluence:
Park improvements for the year are about complete;
HEDRA’s environmental contract for Vapor Intrusion was underway; and
The final bid for the encapsulation contract was expected in early
December and may require a special HEDRA meeting to discuss.
B. 3rd Quarter Financial Report
Hinzman reported on the 3rd Quarter Finances.
Commissioner Vaughan asked about transfer of funds. Hinzman explained the
transfer of funds between the previous HRA Industrial Park accounts.
C. Commercial Vacancy
Hinzman commented on the opening of a new massage establishment in downtown
and the progress of the Schoolhouse senior housing.
Commissioner Balsanek asked about where the additional units may be added in
large historical structures. Hinzman provided clarification.
Commissioner Peine stated why he was against allowing additional housing units
in large historical structures unless was owner occupied. Commissioner Balsanek
added that the property should also be homesteaded. Commissioner Sinclair listed
several negatives about requiring owner occupied.
D. Development Update
Hinzman informed the Commission that the Planning Commission was examining
an ordinance amendment to allow additional housing units to large historical
structures.
Commissioner Balsanek asked about where the additional units may be added in
large historical structures. Hinzman provided clarification.
Commissioner Peine stated why he was against allowing additional housing units
in large historical structures unless was owner occupied. Commissioner Balsanek
added that the property should also be homesteaded. Commissioner Sinclair listed
several negatives about requiring owner occupancy.
Hinzman indicated that on November 19, 2019, the City will be awarded a
$15,000.00 grant to aid in the downtown property reutilization study.
VI. Adjourn
Commissioner Balsanek motioned to adjourn the meeting at 7:31 p.m., seconded by
Commissioner Vaughan. Motion approved 5‐0.
Next Meeting: December 12, 2019
Respectively Submitted:
Erica Henderson
Deputy City Clerk