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HomeMy WebLinkAboutI.A - Agenda NotesHASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY September 9, 2021 - 6:00 pm. CITY COUNCIL CHAMBERS I. Quorum II. Minutes Please see the attached HEDRA Meeting minutes from the July 29, 2021 regular meeting for your review and approval. III. Bills July\August Bills Please see attached general ledger detail from the last two months for further information. IV. Business A. PUBLIC HEARING: Adopt Resolution 2021-13: Authorize Signature of Purchase and Development Agreement – NJS Development, LLC (Stencil Group) for property generally located at 412 3rd Street E and 415 4th Street E. Staff continues to work with Stencil Group on the redevelopment of a portion of the former UBC Site for the purposes of constructing an apartment building. Staff is seeking authorization for signature of a purchase and development agreement between HEDRA and NJS Development, LLC. As presented, the Purchase and Development Agreement establishes the following:  Closing date on or before April 1, 2022. All applicable land use entitlements would be pursued prior to that date.  Earnest money of $10,000 placed into escrow by Developer.  Purchase price of $175,000.  180 day contingency period. 180 days begins from date of execution by HEDRA and City Council; whichever occurs last.  City to remove all structures from the property within contingency Levander Gillen Miller Campbell Knutson, P.A. $1,590.00 Legal - Schoolhouse Square TIF Stantec Consulting $1,300.00 Hudson - Environmental DCA Title $1,094.00 Property Sale - Quality One Schlomka Portable Toilets $996.00 COVID - Downtown Portable Toilet Economic Dev Assoc of MN $20.00 Webinar - Hinzman and Maass period which based on 180 days would be March 19th, 2022.  Developer to submit construction plans by January 10, 2022.  Developer to commence construction by May 1, 2022 with completion by October 31, 2023. ACTION 1) Hold a public hearing to consider sale of land. 2) Consider adoption of Resolution 2021-13 Authorizing Signature of purchase and development agreement between HEDRA and NJS Development, LLC (Stencil Group) for property located at 412 3rd Street E and 415 4th Street E. Please see the attached Resolution and Purchase and Development Agreement for further information. B. 2022 HEDRA Budget Resolution: Authorize 2022 Economic Development Levy As part of the 2022 budget, City Staff has prepared the proposed 2022 HEDRA HRA Levy. Staff is recommending the full HRA tax levy which would generate approximately $413,820 in revenue for HEDRA. Those dollars would be utilized to complete projects and goals identified within the current HEDRA Strategic Plan. ACTION – Motion to adopt Resolution 2021-14 Approving Proposed 2022 HRA Tax Levy. Please see attached Resolution and HEDRA Budget Summary for further information. C. The Quill - Schoolhouse Square Senior Housing – Amended Approval and Authorization Resolution No. 2021-15 - Amend Contract for Private Development - At the July meeting, HEDRA adopted a resolution authorizing signature of a Contract for Private Development pertaining to the issuance of TIF Bonds to facilitate construction of the 90 unit Schoolhouse Square Senior Building (now known as The Quill). The TIF Agreement included the execution of a Minimum Assessment Agreement for the project. Upon further consultation with our TIF Attorney and Financial Advisor, the Minimum Assessment Agreement is no longer necessary for this project and has been removed from the Contract for Private Development Requirements. Resolution No. 2021-16 - Approve Subordination Agreement and Consent and Estoppel Certificate - The project will utilize Senior Multifamily Revenue Bonds issued by Dakota CDA to finance the project. Issuance of the bonds by CDA requires subordination of the City’s interest in TIF Bonds. The Consent and Estoppel Certificate is certification that certain facts related to financing are correct. Both actions are standard procedures that have been approved by or legal and financial consultants. ACTION – Motion to adopt Resolutions 2021-15 and 2021-16. Please see attached Resolutions for further information. V. Reports and Information A. HEDRA 2nd Quarter Financial Report Senior Accountant Ashely Bertrand has prepared the attached HEDRA 2nd Quarter Financial Report for your consideration. B. Open to Business 2nd Quarter Report Please see the Open to Business 2nd Quarter Report for your consideration. C. WSI Sportswear Project City Staff has been working with WSI Sportswear on a potential relocation to the City of Hastings Business Park. WSI Sportswear currently operates out of a location in Eagan and is needing to expand. WSI Sportswear has submitted a land credit application to construct a new 20,000-30,000sf building on the 2.0 acre piece of City owned property located at the intersection of Spiral Boulevard and Enterprise Avenue. The building would contain a retail showroom component with the majority of the building then consisting of product manufacturing and warehousing. WSI Sportswear currently employs 10 people and estimates it would add another 10 employees within five years following construction. Staff is seeking any questions or comments from HEDRA regarding this potential project. Staff anticipates a public hearing for land sale and associated development agreement at the October 14th, 2021 HEDRA meeting. D. Downtown Architectural Assessment Downtown historic buildings require specialized maintenance and repair methods in comparison to modern buildings. Owners and contractors may not be aware of these differences and specialized engineers, architects, and contractors are generally too expensive and hard to locate for smaller buildings and repairs. There have been companies looking to purchase buildings in the downtown and they commented that the available buildings all had major structural damage and improper repairs making them unsound investments and they chose to locate elsewhere. There have been many improper repairs done to the buildings over the years that not only did not address the problem, they covered it up or made the problem worse. Staff is reviewing two proposals received by consultants to complete the exterior architectural assessment of approximately 37 downtown properties. Staff has applied for a Dakota County RIG Planning Grant to help pay for this study. Staff anticipates having selected a Consultant by the October 14th HEDRA meeting. E. Makers Alleyway Market Staff planned three downtown markets on 8/19, 8/26, and 9/2. While the 8/26 event was canceled due to inclement weather, the markets showed strong interest and were generally well received by vendors and visitors alike. The event on 8/19 had 6 vendors and the 9/2 event had 7 vendors planned with a few vendors attending both events. A majority of vendors were agriculture/food related which are exempt from needing a Transient Merchant License. The vendor list established through these events is now a great asset to the City as we can send retail/commercial vacancies within the City to these vendors as potential tenants. An additional 15 vendors were interested in participating but were not able to meet requirements established in the City’s ordinance related to Transient Merchants Licenses. Of primary issue was the requirement of individual insurance coverage. Staff reviewed the process of neighboring communities for transient merchant licenses and found Hasting’s to be one of the more restrictive communities. If HEDRA would like to see the alleyway market pilot project continued in 2022 we would recommend it direct staff to explore amendments to the City’s Transient Merchants License ordinance. F. Development Update Summergate Annexation - Redwing Blvd - On September 8th the Planning Committee of City Council will review a concept plan from Summergate Communities for annexation and development of a 160 lot single family subdivision to be located of Red Wing Blvd and Michael Avenue. Development could begin in spring 2022. Luke Siewert Apartment Building – On September 13th the Planning Commission will review plans for construction of the 32 unit apartment building located at 3rd and Tyler Streets. Upon action by the Commission the City Council would review final plans on October 4th. The Confluence – Repair of peeling encapsulation will begin next week and should take about one week to complete. Upon repair of these areas, the only obligation HEDRA has is the electrical connection and testing of the Vapor Intrusion Mitigation System (VIMS). Target – Staff continues to meet regularly with the building broker CBRE and anticipates a more specific update for HEDRA at its October meeting. KO Storage Expansion – On September 7th the City Council will review plans for the construction of two additional mini storage buildings at KO Storage at 2699 Commerce Drive. Quality One Woodwork – Construction has commenced on the 52,000 sf building. Staff is working on coordination of a ground breaking with the Chamber of Commerce. Custom Sawdust – Construction has commenced on the 4,900 s.f. building on 31st Street E. Heritage Ridge – At the September 7th meeting, the City Council is scheduled to approve the 3rd Addition of Heritage Ridge and authorize a grading only agreement for the area. Building permits for over 20 of the lots have been submitted to the City for review and approval. They will likely seek approval of the 4th and final phase of the 116 lot development before spring of 2022. Vermillion Acres – City Council is scheduled to approve the Development Agreement for the 75 unit senior housing facility on September 7th. The Building Department has concluded review of the plans, which will include modular construction of some components offsite and moved onto the site for final construction. The Quill - Schoolhouse Square Senior Housing – Upon action by HEDRA of the final authorizations, transfer of the property is scheduled to take place in late September with construction beginning soon after on the 90 unit senior housing building. Villas at Pleasant – The model home permit for the 32 unit villa housing development has been approved and construction should commence shortly. 315 Pine Street - Former Thorwood Inn - Cleanup work continues on the fire damaged former building. Partial demolition and renovation plans will were approved by the Heritage Preservation Commission on July 27th. VI. Closed Door Session - Review Potential Purchase of Property. Staff seeks a motion to close the meeting pursuant to Minn. Stat. 13D.05, subd. 3(c) to determine the offer for the purchase of properties located on Block 28, Town of Hastings. ATTACHMENTS  Minutes – July 29, 2021 - Regular Meeting  Bills - July & August  Resolution 2021-13: Authorizing Signature of purchase and development agreement between HEDRA and NJS Development, LLC (Stencil Group) for property located at 412 3rd Street E and 415 4th Street E.  Resolution 2021-14: 2022 HEDRA Tax Levy  2022 HEDRA Budget Summary  Resolution 2021-15 - Amend Contract for Private Development - The Quill  Resolution 2021-16 - Approve Subordination Agreement and Consent and Estoppel Certificate - The Quill  HEDRA 2nd Quarter Financial Report  Open to Business 2nd Quarter Report Next Meeting: October 14, 2021