HomeMy WebLinkAboutV.B - Downtown Property Utilization Study Update
HEDRA MEMORANDUM
To: HEDRA Commissioners
From: Rusty Fifield, Economic Development Coordinator
John Hinzman, Community Development Director
Date: March 4, 2020
Item: Downtown Property Utilization Study
Action Requested
No action requested. Informational item.
Background
In 2019, the City received a $15,000 grant from the Dakota County CDA to study HEDRA
property holdings in the Downtown. The objective of the Downtown Property Utilization Study
is understanding the development opportunities and constraints of five sites made up
completely or partially of HEDRA-owned property. A description of each site can be found at the
end of this memo.
We have engaged the Cunningham Group to provide technical assistance on the Study.
Cunningham’s expertise in architecture and urban design will help us understand what is
possible on each site. To make best use of the available budget for this project, the Study is
divided into three phases.
Phase 1 - Preliminary Development Concepts
The objective of Phase 1 is to evaluate each site and create preliminary development concepts.
Each concept will include site layout, illustration of proposed development and description of
the development. The Cunningham Group is only engaged for Phase 1.
Phase 2 - Review of Concept
City staff will take the information developed in Phase 1 and determine next steps. Some sites
may not warrant further consideration. Discussions with property owners and other
stakeholders may be needed. Staff will conduct a workshop with the HEDRA Board to report
findings and recommendations. This Phase does not entail any services from the Consultant.
Downtown Property Study Update
March 4, 2020
Page 2
Phase 3 - Development Strategies
The objective of this Phase is to create preferred development concepts and specific
implementation strategies for each site. The work in this Phase will modify the concepts (as
needed) based on the input received in Phase 2. Additional information will be gathered as
needed to evaluate the feasibility of concepts and determine implementation strategies. We will
create a specific scope of work for consulting services (if needed) for this Phase. Staff will
conduct a workshop with the HEDRA Board o obtain feedback and direction before preparing
the Study report.
We expect to complete the Study by mid-summer so that implementation actions can be
considered in planning for the 2021 Budget and prior to the 2020 CDA RIG application cycle.
We will review this information at the March 12 meeting and answer any questions.
Site Profile
Site #1
Parcel 196395000010
0.64 acres
$202,300 Estimated Market Value
Owner: HEDRA
Vacant
Parcel 196395000021
0.85 acres
$268,400 Estimated Market Value
Owner: HEDRA
Vacant
This site is bound by Artspace Lofts, rail line, Mississippi River and Levee Park. The property is
subject purchase option agreement with Rungoli LLC (Panache) for the proposed construction
of a cider taproom with events space and apartments. The option agreement expires on April 28,
2020.
HEDRA plans to conduct environmental remediation on this site in 2020. HEDRA has received
a $270,000 grant from the Metropolitan Council for the clean-up.
Downtown Property Study Update
March 4, 2020
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Downtown Property Utilization Study
Site Profile
Site #2
Parcel 193215002020
0.22 acres
$84,000 Estimated Market Value
Owner: HEDRA
Vacant
Parcel 196395000021
0.63 acres
$248,100 Estimated Market Value
Owner: JENTEACO LLC
Vacant
Parcel 196395002080
0.36 acres
$574.700 Estimated Market Value
Owner: Rosemary Kranz
Graphic Design
Parcel 196395002070
0.9 acres
$249,800 Estimated Market Value
Owner: JENTEACO LLC
Office
Parcel 196395002080
0.34 acres
$817,200 Estimated Market Value
Owner: Hastings Family Services
Hastings Family Services
The focus for this Site is an exploration of development opportunities for the vacant and
developed parcels.
Given the location, parcel size and adjacent uses, what development is possible on the larger
vacant parcel?
How does inclusion of the HEDRA parcel change the development opportunity?
Is it feasible to add additional floors to the existing structures?
How could the Sites be redeveloped if all 4 parcels were used?
What is the estimated cost of clearing the site?
Parcel 0021 was purchased prior to the Recession at a price that significantly exceeds
current market conditions. Are there ways to remove this economic barrier?
H
E
D
R
A
Downtown Property Study Update
March 4, 2020
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Downtown Property Utilization Study
Site Profile
Site #3
Parcel 193215016012
193215016010
193215016011
1.82 acres
$324,400 Estimated Market Value
Owner: HEDRA
Parking lot and pocket park
This site was developed as a 100-stall park-and-ride lot for the future extension of commuter rail
or BRT service to Hastings. The project was funded by a grant from the Metropolitan Council
using State bonding funds. This funding and the related agreements constraint alternative use of
this property. The City is in the process of determining specific nature of the constraints. The
Study objective for this Site is produce information that explains the development opportunities
and can be used in potential discussions with the Metropolitan Council and State:
What are the redevelopment alternatives for the following scenario?
o Redevelopment of all property in the Site.
o Redevelopment of the parking lot and retaining the park area.
o Redevelopment of the park area only.
Is it feasible to develop above the parking lot? If yes, what is a viable scenario?
How many parking spaces could be provided on the property located in Site #4?
Downtown Property Study Update
March 4, 2020
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Downtown Property Utilization Study
Site Profile
Site #4
Parcel 193215017020
0.32 acres
$67,200 Estimated Market Value
Owner: HEDRA
Vacant
Parcel 193215017021
0.11 acres
$23,000 Estimated Market Value
Owner: HEDRA
Vacant
Parcel 193215017080
0.42 acres
$312,800 Estimated Market Value
Owner: HEDRA
UBC Building #2
Parcel 193215032010
193215032011
193215032020
193215032030
0.49 acres
$310,100 Estimated Market Value
Owner: HEDRA
UBC Building #3
HEDRA acquired the former United Building Center (UBC) property in 2005. Initial downtown
planning envisioned these parcels as parking. The 2003 Heart of Hastings proposed housing-
based redevelopment oriented to downtown and transit. Neither of these ideas have become
reality. The City currently uses the buildings for storage.
Assuming that all of the Site is not used to replace Site #3 parking, what redevelopment options
are viable?
Downtown Property Study Update
March 4, 2020
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Downtown Property Utilization Study
Site Profile
Site #5
Parcel 193215015080
0.21 acres
$59,800 Estimated Market Value
Owner: HEDRA
Parking Lot
Vacant
HEDRA owns one small parcel in this Site. The parcel is currently used as a parking lot. No
other use is viable without combining with other parcels.
The 2003 Heart of Hastings Plan shows the redevelopment of the south half of the Post Office
block. To date, no redevelopment projects have been proposed.
The focus for this Site is an exploration of development opportunities for the vacant and
developed parcels.
Given the location, parcel size and adjacent uses, what development is possible using the
entire site?
What development is possible using the HEDRA property and the adjacent parcel?
What is the estimated cost of clearing the site?
H
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A