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Home My WebLink AboutHEDRA Minutes - 11-10-2021HEDRA HASTINGS ECONOMIC DEVELOPMENT and REDEVELOPMENT AUTHORITY The Hastings Economic Development and Redevelopment Authority of the City of Hastings, Minnesota met in a regular meeting on Wednesday, November 10th, 2021 at 6:00 p.m. at Hastings City Hall. HEDRA Commissioners Present: Peine, Horsch, Braucks, and Vaughan HEDRA Commissioners Absent: Goblirsch, Sullivan, Sinclair, Staff Present: Community Development Director John Hinzman Economic Development Coordinator Eric Maass City Administrator Dan Wietecha I. Quorum A quorum was established and the meeting was called to order by President Peine at 6:00 PM with four members present. II. Minutes Motion by Commissioner Vaughan to approve the minutes from the October 14th 2021 Regular Meeting and Closed-Door Meeting as presented. Seconded by Braucks. Ayes 4; Nays 0. Motion approved. III. Bills Hinzman summarized the bills. Commissioner Braucks motioned to approve as presented, seconded by Commissioner Horsch. Ayes 4; Nays 0. Motion approved. IV. Business A. Resolution No. 2021-19 - Authorize Purchase of Property - 410 Vermillion St (Former Rivertown Liquor) – Rise Up Recovery has agreed to terminate their sales agreement with property owner Todd Webber to allow HEDRA purchase for $230,000. a. Motion to enter a three-party purchase agreement between Todd Weber, Rise Up, and HEDRA approved by Commissioner Braucks and seconded by Commissioner Horsch. Motion passed 4-0. b. Motion to authorize property purchase approved by Commissioner Horsch and seconded by Commissioner Braucks. Motion passed 4-0. B. Revolving Loan 214 2nd Street E: Call for payment or defer for additional 15 years – One 2003 loan for 7,722 and a 2006 loan for 30,465. Both due in 15 years without monthly payments or interest. a. Commissioner Vaughan approved the motion to call for the full payments of both loans. Commissioner Braucks seconded the motion. Approved 4-0 as presented. C. Resolution 2021-20: Authorize Signature – 2nd Amendment to Purchase Agreement - River City Investments, LLC (317 3rd St E) Tyler Street Landing – Proposed amendment: Closing moved from Dec. 3rd to on/before April 30th, 2022 to coincide with construction season and could be approved for a grant with the CDA. a. Commissioner Horsch approved the motion to authorize the 2nd amendment to the purchase agreement. Commissioner Vaughan seconded the motion. Approved 4-0 as presented with limited discussion. D. Adopt Commercial and Owner Occupied Residential Revolving Loan Program Revisions – Commercial loans proposed to be moved to a fixed interest rate. (3%-4%) Interest rates could be improved by meeting incentive benchmarks for safety and environmental wellbeing. Owner-occupied loans are proposed a fixed interest rate of 3.5%. a. Commissioner Horsch approved the motion adopt program revisions. Commissioner Braucks seconded the motion. Approved 4-0 as presented with limited discussion. E. Adopt Façade Improvement Program – 50,000 budgeted for 2022, grant awards up to 5,000, required 1:1 match. $40,000 for Downtown until July 1st, $10,000 for Vermillion St until July 1st. After July 1st remaining funds come back to HEDRA to evaluate where it should go. Outreach will be provided to local business owners of the new program if adopted. HEDRA will review program Mid 2022 to re-evaluate distribution. a. Commissioner Vaughan motioned to adopt the Façade Improvement program. Commissioner Braucks seconded the motion. Approved 4-0 as presented with discussion about continuing the program and the area selection. F. Authorize Signature for Auction Contract for metal building sale at 415 4th Street E – Auction would be for the deconstruction of the building. HEDRA would pay a 10% commission and additional fees. The Auction would be held on Dec 13th. Building removal by Feb. 14th. Clear site by April 2022 for development. a. Commissioner Braucks motioned to approve the contract with Maring Auction Company. Commissioner Horsch seconded the motion. Approved 4-0 as presented. G. Resolution 2021-21: Authorize Signature to terminate an existing Purchase Agreement between HEDRA and NJS Development, LLC (Stencil Group) and authorize signature on an updated Purchase Agreement between HEDRA and NJS Development, LLC (Stencil Group). The new agreement includes the addition of private property located at 404 East 3rd Street. a. Commissioner Horsch motioned to approve the replacement of the purchase agreement. Commissioner Braucks seconded the motion. Approved 4-0 as presented. H. Future Refinancing of Existing Revolving Loans – Adding a fixed interest. This will cut back on staff time spent on this overall. a. General agreement on the refinancing idea. Discussion of reviewing program in mid 2022 to review eligibility of Highway 55 properties. V. Reports and Information A. Open To Business Update a. 13 residents connected with the Open to Business program. Proactive work continues. There will be an extension of the program. B. Development Update a. Popcorn store at 208 Sibley Street now open b. Summergate Annexation application has arrived. Planning Commission on Nov 22nd, City Council on Dec. 6th. Start construction Spring 2022. c. Confluence will be presenting at the December meeting. d. Fleet Farm is still working on their project. e. Application for development of a Jersey Mikes on the former Enterprise car rental property VI. Closed Door Session - Review Potential Purchase of Property - Commissioners met in closed door session to review potential property purchase on Block 28. Motion to begin the closed-door session and close the regular meeting by Commissioner Vaughan and seconded by Commissioner Braucks. Closing of the public section of the meeting is approved 4-0. VI. Adjourn Adjourned the meeting at 7.43 p.m. Motion passed 4-0. Meeting adjourned. Next Meeting: December 9th 2021 https://www.youtube.com/watch?v=ZWZSNSRdX8o Respectively Submitted: Lindsay Anderson