Loading...
HomeMy WebLinkAboutII - MinutesHASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY July 29, 2021 - 6:00 pm. HASTINGS CITY COUNCIL CHAMBERS The Hastings Economic Development and Redevelopment Authority of the City of Hastings, Minnesota met in a regular meeting on Thursday, July 29, 2021 at 6:00 p.m. in the Hastings City Council Chambers. HEDRA Commissioners Present: Peine, Goblirsch, Sinclair, Horsch, Vaughan and Braucks HEDRA Commissioners Absent: Sullivan Staff Present: Community Development Director, John Hinzman and Economic Development Coordinator, Eric Maass I. Quorum A quorum was established and the meeting was called to order by President Peine at 6:00 p.m. with 6 members present. II. Minutes A. July 8, 2021 regular meeting Commissioner Goblirsh motioned to approve the minutes from the regular meeting of July 8, 2021. Seconded by Commissioner Sinclair. Motion approved 6‐0 as presented. III. Bills Mr. Hinzman noted that there are no bills to present this month due to the short timeframe between meetings. Bills will be presented at the next regular meeting in September. IV. Business A. Resolution: Authorize Exclusive Rights for Potential Land Sale of former UBC Site to NJS Development (Stencil Group) Mr. Maass summarized the potential redevelopment of the former UBC site by Stencil Group for a high-density residential apartment project. Mr. Maass explained that Stencil Group would like to move forward by securing exclusive rights to the property prior to proceeding with preliminary architecture and engineering. Commissioner Sinclair asked for clarification on the scope of the project and its impact on traffic flow. Mr. Maass clarified at the developer is proposing to purchase the vacant lot, the northern most UBC building, and a residential property to the west of the vacant lot so only a portion of an alleyway would be affected. Commissioner Horsch asked for clarification on the number of apartments and the number of stories the proposed project would have. Nate Stencil from Stencil group clarified that there would be between 85 and 90 units and it would be 4 stories tall. Commissioner Sinclair asked about the City’s parking requirements. Mr. Hinzman responded that the downtown area’s zoning district allows for reduced parking at a space and a half per dwelling unit and it allows for further reduction if a proof of parking study is conducted. Commissioner Peine inquired into the rental rates of the proposed apartment units and their affordability. Mr. Stencil confirmed that there would be a variety of market rate apartment units available. Commissioner Sinclair asked about the impact this development has on the redevelopment prospects and marketability of the southernmost UBC property. Mr. Hinzman reassured that the development’s impact would not leave it unmarketable or undevelopable. Mr. Stencil added that it leaves the project open for the possibility of a second phase. Commissioner Braucks asked for clarification on the timeline of the existing structure’s demolition in regard to the proposed apartment. Mr. Hinzman stated that demolition is budgeted for next year, but could happen earlier if need be. Commissioner Goblirsch inquired into the environmental mitigation efforts required of the property. Mr. Hinzman noted that a Phase 1 Environment Site Assessment has been completed on the property due to potential soil vapor concerns and that there are environmental grant sources available if the assessment identifies any issues. Commissioner Sinclair asked if any other properties would be acquired for the completion of this project. Mr. Stencil responded with it’s something that they may pursue in the future, but they currently have no intention of. Commissioner Vaughan inquired into Stencil Group’s interest in Hastings and the site’s location. Mr. Stencil responded that meetings and involvement in other projects have familiarized them with the City but staff’s help and downtown’s amenities really piqued that interest. Commissioner Vaughan motioned to authorize the approval of Resolution 2021-11. Seconded by Commissioner Braucks. Motion approved 6-0 as presented. B. Resolution: Authorize Signature - 1st Amendment to Purchase Agreement - River City Investments, LLC (317 3rd St E) Mr. Maass presented the amendment to the purchase and development agreement between River City Investments, LLC and HEDRA. Amendments include an extension to the closing date and extending the developer’s contingency and investigation period to coincide with the closing of the property following land use entitlements. Commissioner Peine asked for clarification on who initiated the amendment to the purchase agreement. Mr. Maass clarified that the amendment was initiated by Staff. Commissioner Braucks motioned to authorize signature of the Purchase and Development Agreement’s amendment. Seconded by Commissioner Sinclair. Motion approved 6-0 as presented. C. Cancel August 12th Regular Meeting Mr. Hinzman announced that the August 12th regular meeting has been cancelled. The next HEDRA meeting will be held on September 9th with the option to hold a special meeting if action is required. Commissioner Vaughan motioned to cancel the August 12th regular meeting. Motion seconded by Commissioner Goblirsch. Motion approved 6-0. V. Reports and Information A. Hastings Housing Market Update Mr. Maass gave an update on Hastings’ housing market which included an analysis of housing sales from 5/1/2020-5/31/2021 and of comparative cities. This information was disaggregated by the area median income and mapped which allowed Staff to assess the level of affordability of the houses sold in that time period as well as assess other market indicators. Commissioner Horsch asked if there are any developers in the community expressing interest in meeting that need for more affordable single-family housing. Mr. Maass noted that Hastings AMI indicates that a majority of families are able to afford a $396,719 house making the existing housing stock inherently affordable. Mr. Hinzman added that developers have expressed interest in meeting that need but the reality is, with the cost of building so high, it is not necessarily feasible. B. 2022 HEDRA Budget Mr. Hinzman provided a summary of budget priorities for the 2022 HEDRA Budget. Budget priorities include redevelopment capital, commercial rehabilitation grants and loans, marketing, a Community Development Intern, and environmental cleanup costs. Commissioner Goblirsch inquire into the tax levy and how HEDRA funds are replenished each year. Mr. Hinzman and Mr. Maass responded that HEDRA’s funding comes from the HRA levy, general fund allocations from the City Council, the selling of HEDRA owned land, and current balance funds. Commissioner Vaughan asked if HEDRA should look into the reallocation of funds created by HEDRA TIF districts as another potential funding source. Mr. Hinzman responded that it would be a possibility but would have to cleared by City Council. C. Downtown Architectural Assessment Mr. Maass summarized the project in which the City of Hastings is seeking financial assistance from Dakota County for the hiring of structural engineering and historic architectural consultants to tour and assess the buildings in the East Second Street Historic District in order to identify any structural deficiencies and/or required maintenance projects necessary to ensure the long-term viability of the structures. Commissioner Vaughan inquired into the eligibility requirements of the buildings involved in the assessment. Mr. Maass clarified that the assessment’s scope would include the East Second Street Historic District as well as the Armory located at 121 3rd Street East. Commissioner Peine voiced the importance of preserving the asset that is the architecture of Hastings’ historic downtown. D. Makers Alleyway Market Mr. Maass summarized the pilot project being called the Makers Alleyway Market. This pop-up market will take place in the alleyway between 2nd Street and Levee Park and will coincide with weekly Music in the Park events taking place in the nearby amphitheater. Commissioner Horsch asked how vendors will be supplied for the markets. Mr. Maass responded that as little money as possible is being put into marketing the event to vendors with the hope that simply creating an opportunity for local makers to sell their merchandise will be incentive enough. E. Development Update Mr. Hinzman summarized development activities that have taken place within the City throughout the past few weeks. Among the activities discussed were: the lighting of the Confluence building’s cupolas, continued discussions with Target’s building broker, CBRE, the 3rd addition to Heritage Ridge consisting of 43 lots, the property transfer to Quality One Woodwork, Real Estate Equities submittal of building permit plans, Simek Properties submittal of their first building permit for a model villa style home, and a final plat application for Siewert Apartments. VI. Closed Door Session - Review Potential Purchase of Property Commissioner Horsch motioned to adjourn to a closed session. Seconded by Commissioner Braucks. Motion approved 6-0. VII. Adjourn 7:50 p.m. motion to adjourn made by Commissioner Sinclair and seconded by Commissioner Braucks. Motion to adjourn approved 6-0. Next Meeting: September 9, 2021 Respectively submitted: Grady Timmerman Community Development Intern