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Home My WebLink AboutI.A - Agenda NotesHASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY July 8, 2021 - 6:00 pm. IN PERSON - CITY COUNCIL CHAMBERS I. Quorum II. Minutes Please see the attached HEDRA Meeting minutes from the June 10, 2021 regular meeting for your review and approval. III. Bills June Bills Please see attached general ledger detail from the last two months for further information. IV. Business A. Authorize Signature - Confluence Development - 4th Amendment to Purchase and Development Agreement Please see the attached staff memo and amendment for further information. Key items include:  Commencement and Completion items have been updated to reflect current construction status. o City has until August 31, 2021 to complete wood sealing and encapsulation work. o Confluence shall substantially complete construction by October 31, 2022.  Remedies of Default have been updated o If substantial completion does not meet the October 31, 2022 deadline, the developer agrees to execute a minimum assessment agreement obligating payment of taxes based on the estimated market value of the El Mexican Restaurant $5,000.00 Grant - Outdoor Seating Spiral Brewery $5,000.00 Grant - Outdoor Seating Fireside Social House $4,875.00 Grant - Outdoor Seating Taproot (Onion Grille) $3,855.07 Grant - Outdoor Seating Due Olives (Lock and Dam) $1,000.00 Grant - Outdoor Seating American Legion $967.85 Grant - Outdoor Seating Levander Gillen Miller $729.00 Legal - General\Quality One Schlomka $214.00 COVID - Downtown Portable Toilet completed development. Payment based on the developed value would substantially reduce the City’s TIF bond payment obligations for acquisition of the facility. B. Resolution: Authorize Signature - Contract for Private Development and TIF Agreement between HEDRA and Hastings AH I, LLLP (Schoolhouse Square Senior Housing) The City Attorney has requested that the HEDRA action for authorizing signature on the updated TIF agreement be memorialized in a formal resolution. As a result, Staff is seeking adoption of the attached Resolution. There are no alterations to the TIF agreement from what was presented to HEDRA at its meeting in June. ACTION – Motion to adopt Resolution Authorizing Signature for a Contract for Private Development and TIF Agreement between HEDRA and Hastings AH I, LLLP (Schoolhouse Square Senior Housing) C. Resolution: Rescind and Terminate Lot Sale Approval - Miller Electrical Miller Electrical currently operates at 2911 Enterprise Avenue and was seeking to construct a new facility following new ownership of the company. City Council and HEDRA had previously approved terms for the sale of the Subject Property to Miller Electrical to support the business expansion and relocation. Since that approval Miller Electrical has chosen not to move forward with the project at this time siting overall project costs not being financially feasible. This action would not prevent the City/HEDRA from selling the Subject Property to Miller Electrical at a future date if the project was reestablished. ACTION – Motion to adopt Resolution Rescinding and Terminating Lot Sale Approval between HEDRA and Miller Electrical. D. Adopt HEDRA Strategic Plan Following our April Workshop as well as discussions in May and June, staff has developed the attached HEDRA Strategic Plan Matrix. Please review the attached plan and in particular the following:  Strategic Actions - Are proposed Strategic Actions consistent with the desires of the Board.  Prioritization - Is the proposed prioritization of actions and timeline for completion of activities consistent with the Board.  Budget - Some proposed actions require funding. As we prepare the draft 2022 budget for HEDRA review in July, should the following items be considered for funding: o Capital funding for property acquisition and development o Downtown Architectural Assessment o Property rehabilitation loans ACTION – Motion to adopt HEDRA Strategic Plan Matrix. V. Reports and Information A. Commercial Vacancy Available May 2021 Available June 2021 Net Change Downtown 9 8 -1 Highway 55 12 12 0 Vermillion Street 13 13 0 Industrial Park 3 3 0 TOTAL 37 36 -1  214 2nd Street E – VZ Haberdashery is completing its buildout of 214 2nd Street E which was going to be the downtown location of Schoolhouse Scoop. B. Development Update The Confluence – An amendment to the Development Agreement pertaining to dates of completion is being developed for HEDRA and Council action in July. They are planning a public announcement of tenants and unveiling of improvements to coincide with Rivertown Days in mid-July. Target – Staff continues to meet regularly with the building broker, CBRE. Quality One Woodwork – The Site Plan for construction of the 52,000 s.f. addition has been submitted and was reviewed by the Planning Commission on June 14th and approved by the City Council on June 21st. Staff is targeting July for transfer of the property and the beginning of initial site work. Port of Hastings Outfitters - On June 7th, the City Council approved a home occupation permit for Port of Hastings to operate their E-Bike rental facility out the owner’s home at 420 East 6th Street (adjacent to the Bailey Street trail). Port of Hastings operated last year under the TH 61 bridge and plans on operating within the Confluence in 2022. Custom Sawdust – Building plans are nearly complete and construction should start shortly on the 4,900 s.f. building on 31st Street E. Climate Controlled Storage – The Council has approved a Special Use Permit to convert a portion of the strip mall next to Coburns into climate controlled storage. Owner Ed Rhymer plans construction shortly. Simply Secure Storage – Construction has begun on the mini storage site located along Spiral Blvd. Heritage Ridge – Construction of the first two phases consisting of 40 homes continues. Submittal of the third phase of construction containing and additional 43 home sites is planned shortly, with construction of the third phase planned to begin this fall. Vermillion Acres – Developer has received all City entitlements and closed on purchase of the property. Developer is finalizing construction details. Schoolhouse Square Senior Housing – Real Estate Equities has submitted building permit plans for the 90 unit building with construction expected to begin in later this summer with completion by late 2022. South Oaks 4th Addition – The City Council approved the Preliminary and Final Plat to construct 33 single family homes located southwest of 31st and Century Drive at their meeting on May 3rd. Greg J Homes is the developer. Villas at Pleasant – Simek Properties continues construction of street and utilities for the 32 unit development. Wallin 19th Addition – 13 single family lots northeast of General Sieben Drive and River Shore Drive. Council has granted approval and construction will begin shortly. 315 Pine Street - Former Thorwood Inn - the fire damaged former building has been sold. New owner has begun site cleanup and plans to renovate the building. C. BR&E Visit Report – Intek Plastics Please see the attached survey report completed by Intek Plastics as part of their BR&E visit. D. Annual Report Please see the attached 2020 Community Development Annual Report. E. 2021 Economic Development Biannual Update Community Development Staff have had a productive start to 2021. Through the first six months of 2021, Staff has completed or tracked the following:  10 BR&E visits  64 business drop ins (33 downtown \ 10 business park \ 12 Hwy 55 \ 9 Vermillion Avenue)  Four new businesses have opened in Hastings including Halal Foods, Legacy Cheese, Smoking’ Oak Express, and Edward Jones Financial Advisors: Ann Rislove office.  Meetings with five developers about opportunities in Hastings. ATTACHMENTS  Minutes – June 10, 2021 - Regular Meeting  Bills – June 2021  Confluence Development - Amendment to Purchase and Development Agreement  Resolution - Authorize Signature - Schoolhouse Square TIF Agreement  Resolution - Miller Electrical - Rescind and Terminate Lot Sale Approval  Strategic Plan Matrix  Intek Plastics BR&E Survey Report  2020 Community Development Annual Report Next Meeting: August 12, 2021