The URL can be used to link to this page

Home My WebLink AboutI.A - Agenda Notes HEDRA AGENDA NOTES July 9, 2020 6:00pm II. MINUTES Please see the attached HEDRA Meeting minutes from the June 11th regular meeting for your review and approval. III. BILLS June Bills HEART Grants $169,784.00 COVID Business Assistance Fluegel Law Firm $337.50 Legal - Panache Cidery * Reimbursable Expenses Please see attached general ledger detail from the last two months for further information. IV. BUSINESS A. Review Development Options - Block 1 - Mint Development and Spades SBC Please see the attached memo outlining options for future development of the remainder of Block 1 located between the Mississippi River and Artspace Hastings Lofts. Rob Barse of Mint Development will make a presentation outlining his proposal for residential development of the site. This follows Spades SBC proposal at the last meeting for an office building. The Commission is asked to consider entering into an exclusive agreement with one of the two parties to explore future sale and development. HEDRA Agenda Notes July 9, 2020 Page 2 B. Discuss offer to Purchase Property – 222 Ramsey Street Eljin Properties, owner of adjoining property at 220 Ramsey Street and 209 East 3rd Street seeks to acquire a HEDRA owned lot located at 222 Ramsey Street between his two holdings. Eljin has offered to pay $3,000 to acquire the lot. The size of the property limits its potential development as a stand-alone parcel; any future development likely requires coordination with the adjoining parcels. HEDRA Commissioner Scott Sinclair has interest in Eljin. 222 Ramsey Street is a vacant 3,227 s.f. lot located on the northwest corner of 3rd and Ramsey Streets. Formerly known as the Erickson property, the HRA acquired the property and home for $71,000 in 1997. The home was demolished by the HRA in 1998 for $5,400. Around 2003 the HRA agreed to sell the property to Patrick Yates, but Mr. Yates did not follow through on the request. Eljin has offered to purchase the property for $3,000. The property is valued at $16,100 by the Dakota County Assessor. In 2015 HEDRA denied a similar offer from Mr. Sinclair. The Commission preferred to hold onto the property until a plan for property development was established. ACTION – Discuss sale of 220 Ramsey Street to Eljin. If sale is desired staff will determine a fair market value for the property for future HEDRA action. Please see the attached offer for further information. C. Adopt Strategic Plan for Economic Development Please see the attached memo seeking adoption of the Strategic Plan Update. D. 2021 HEDRA Budget The Commission is asked to review the attached 2021 budget priorities established through discussion of the Strategic Plan. Budget priorities have been established consistent with the Strategic Plan. HEDRA Agenda Notes July 9, 2020 Page 3 E. Spiral Brewery Loan Subordination Spiral Brewery is planning to purchase their existing building located at 111 East 2nd Street. As part of the purchase HEDRA is asked to subordinate our interest in the following two loans: Year Original Amount Outstanding Amount 2017 - Real Estate Improvements $25,000 $15,884.45 2017 - Working Capital $23,800 $12,760.41 2018 - Real Estate Improvements $12,600 $12,600 TOTAL $61,400 $41,244.86 Our loan position would be as follows: Source Amount Term Amort Notes Pioneer Bank $225,000.00 120 240 1st mortgage on the real estate Prairieland EDC / SBA $187,000.00 300 300 2nd mortgage on the real estate HEDRA Loans $41,244.86 Subordinate to above positions Total Debt $453,244.86 Appraised Value $535,000.00 The value of the property exceeds the debt of the loans. HEDRA Commissioner Jen Fox has ownership interests in Spiral Brewery. Staff recommends approval of the request. ACTION – Approve subordination of HEDRA’s loan interest for Spiral Brewery and authorize signature of subordination documents. V. REPORTS AND INFORMATION A. Housing Study Maxfield has completed their housing study on behalf of the Dakota County CDA. Please see the attached Memo summarizing our observations of findings along with a summary of residential housing in Hastings. B. Commercial Vacancy Available July, 2020 Available June, 2020 Net Change Downtown 660 Highway 55 15 15 0 Vermillion Street 14 14 0 Industrial Park 550 TOTAL 40 40 0 HEDRA Agenda Notes July 9, 2020 Page 4  Ace Liquors has moved into Westview Mall from 1250 South Frontage Rd C. Development Update  Schlomka Services has purchased the former O’Connor Plumbing Building located at 1904 Vermillion Street and will perform a substantial building renovation and addition. The Planning Commission will review their plans on July 13th. D. Economic Development Coordinator Applications for the Economic Development Coordinator position are due July 12th. The recruitment profile and application have been posted on our website. We have also pushed the position out job postings sites, social media and other contacts in economic development. We hope to have someone working in the position by the end of August. Happy Retirement Rusty! Rusty Fifield will be retiring after 36 years of assisting cities with public financing and planning. Rusty has helped shape development of countless cites and we have been fortunate to have benefitted from his tireless dedication. One of Rusty’s first consultant projects for Hastings was the Downtown Redevelopment Plan in the mid 1980’s. This was followed by the Heart of Hastings Plan in 2002 which served as a roadmap for all the great Riverfront Renaissance activities. Rusty’s work on Housing, Strategic Planning, and the HEART Grant Program will provide lasting benefits to our City. Rusty is an excellent photographer whose work has been featured in the Weatherguide Calendar (proudly hanging next to my desk). We wish Rusty all the best in a well-deserved retirement! ATTACHMENTS  Minutes - June 11th Meeting  Bills – June, 2020  Memo: Options for Block 1 Development  Offer to Purchase Land - Eljin  Strategic Plan for Economic Development  2021 HEDRA Budget Summary  Maxfield Housing Study Summary  Hastings Housing Summary