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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