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HomeMy WebLinkAboutAgenda Notes - 2022.02.10HASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY February 10, 2022 - 6:00 pm. HASTINGS CITY COUNCIL CHAMBERS I. Quorum II. Minutes Please see the attached HEDRA Meeting minutes from the January 13, 2021 regular meeting and closed door session for your review and approval. III. Bills January Bills Bauer Services $1,855.00 UBC - 415 E 4th Water Disconnect Econ Dev Assoc of MN $630.00 Admin - Winter Conf Registration Econ Dev Assoc of MN $495.00 Admin - Annual Registration Smartsheet Inc. $145.00 Admin - Software fee Please see attached general ledger detail from the month of January for further information. IV. Business A. Resolution #2022-07 Approving TIF Plan for TIF District Number 9 and Resolution #2022-10 Approving Interfund Loan Related to TIF 9 Please see the attached Staff Report provided by Northland Securities. Action: Motion to Approve Resolution #2022-07 Approving TIF District Number 9. Action: Motion to Approve Resolution #2022-10 Approving Interfund Loan Related to TIF 9. B. Approve Contract with Northland Securities The City of Hastings and HEDRA has previously utilized Northland Securities as its financial advisor however that previous contract has expired necessitating a new contract. The scope of work in the proposed contract includes the following: 1. Assist the City with debt issuance and monitoring. 2. Assist the City with financial compliance and financial planning strategies. 3. Assist the City with economic development financial analysis, program development and financial reporting. 4. Attend meetings, deliver presentations, and submit products. 5. Advise the City on best practices and the development of policies and procedures. NSI will provide the City with a separate written agreement, including scope of work, compensation to be paid to NSI, among other disclosures, for each debt issuance or project engagement that is consistent with this Agreement. From time to time, the City may at its discretion, and consistent with this Agreement, authorize NSI to undertake a project without a separate written agreement. Community Development Staff has been very pleased with the level of service provided by Northland Securities in the past. Notably Staff has appreciated the ability to call or email Northland with questions from time to time without getting charged for that 15 minute conversation. Action: Motion to Approve Contract between HEDRA and Northland Securities. See attached contract for further information. C. Approve Contract with Campbell Knutson Andrea McDowell Poehler of Campbell Knutson has been providing tax increment financing and other specialized legal services for HEDRA since 2017. The attached contract extends her services for another two years. Terms of the contract are unchanged Action: Motion to Approve Contract between HEDRA and Campbell Knutson. See attached contract for further information. D. Resolution #2022-08: Approve Façade Improvement Program (FIP) Grant for Improvements at 218 2nd Street E HEDRA has received an application from Steve and Jenny Green, owners of 218 Hastings, LLC which owns the property at 218 2nd Street E. 218 Hastings, LLC have proposed a façade project that would include the reconditioning of existing windows on the 2nd floor of the building which have components which have rotted. The full scope includes the following: - Strip paint, re-glaze, and refinish existing sash - Replace sash cords on each window - Weather strip each window - Replace exterior rotted wood - Replace custom window sills - Replace custom exterior casings and back bands - Prime and paint new wood - Custom arch top wood surround combination double hung storm windows The scope of services is proposed to be completed by SP Custom Carpentry & Windows, Inc. The project has eligible costs totaling $10,295.00. As such the maximum grant award based on current matching funds is $5,000.00 which is the maximum allowed under the current program guidelines. Action: Motion to approve Resolution #2022-08 approving façade improvement program grant award to 218 Hastings, LLC for reconditioning of windows at 218 2nd Street E in the amount of $5,000.00. E. Resolution #2022-09: Approving Façade Improvement Program Grant for 214 Ramsey Street HEDRA has received an application from Eljin Properties, LLC, owner of the building located at 214 Ramsey Street. Eljin Properties has proposed to complete work to include tuckpointing of failed mortar joints on existing brick on the front of the building which faces Ramsey Street as well as scraping of failing paint on the backside of the building and repainting of that portion of the building which will replace a blighted condition of peeling paint and graffiti. The project has eligible costs totaling $9,850.00. As such the maximum grant award based on current matching funds is $4,925.00. Action: Motion to approve Resolution #2022-09 approving façade improvement program grant award to Eljin Properties, LLC for brick tuckpointing and addressing blighted paint at 214 Ramsey Street in the amount of $4,925.00. F. Block 1 Discussion Background - At the December 9, 2021 meeting Mint Development (Rob Barse) presented his plans for purchase and development of 1.49 acres of property owned by HEDRA located north of Artspace on Block 1. The proposal consisted of an apartment building with 27 units and a shipping container concept space for a seasonal bar/restaurant or similar user adjacent to the riverfront. A tenant for that space has not been secured. A purchase price of $94,500 was initially offered and since the January HEDRA meeting, Mint Development has notified Staff a willingness to pay between $135,000 to $205,000 depending on the number of apartment units that could be approved with 27 on the low offer end and up to 41 units for the high offer end. No action was taken at the meeting and staff was directed to complete the ALTA survey for the site and to determine a sales price for the property. ALTA Survey - The ALTA Survey has been completed for the property depicting legal boundaries and easement areas. In addition, the surveyor has provided an exhibit depicting area of the property that are outside of easement areas and the 100 year flood plain of the Mississippi River to determine the “buildable” area of the site. Of the 1.49 acres of property, 0.719 acres or 31,363sq ft is buildable. Land Price - The site has unique attributes and limitations. Upon discussion with land brokers, $15.00 a square foot for the buildable area of the site is recommended for sale of land for a multifamily project. The valuation is further detailed below: Buildable Area: 0.72 acres (48%) Price Based on Buildable Area Gross Area: 1.49 acres (100%) Dakota County Assessed: $15.21 per s.f. $477,031.23 7.30 per s.f. Broker Recommendation: $15.00 per s.f $470,445.00 7.25 per s.f. • Strategic Plan directs RFP for the Site - HEDRA’s July 8, 2021 Strategic Plan directs staff to issue a Request for Proposals (RFP) to solicit wider interest in development of the site. A 1-2 year time frame for development of the RFP was established. • Marketing in Conjunction with Surrounding Properties - The wastewater treatment site (3.8 acres) and Redrock Corridor Parking Lot (1.75 acres) abut Block 1. HEDRA has the opportunity to look at development of the entire eastern edge of downtown from a holistic manner rather than a piecemeal, site by site approach. Marketing of all three sites as part of a larger redevelopment may generate further ideas options and unique opportunities to solve for development barriers such as floodplain, easements, and parking limitations through shared parking. • Riverfront Destination - Long term desire to establish a riverfront destination on the site consisting of commercial development or some other draw to bookend The Confluence. The proposal for a seasonal bar/restaurant utilizing shipping containers provides seasonal activity on a portion of the site. Does the Mint proposal meet the desire for a riverfront destination to support tourism? • Growth of Downtown - The City is experiencing a tremendous increase in residential development with over 650 residential units planned for development. This includes three residential projects within the downtown adding nearly 140 market rate units and the completion of The Confluence. Will the increase in downtown residents and activity improve the capacity of the site for development for commercial or destination? • Environmental Cleanup - Environmental investigation conducted on the site in 2018 identified the need to remediate contaminated soils. The total cost for remediation was approximately $320,000. The City secured a grant from Metropolitan Council for $270,000 which has since expired. The grant required about $50,000 in matching City/HEDRA funds. Once a development plan has been agreed to for the site, the City has the opportunity to apply for the same grant again. This is an annually reoccurring grant with the next grant round being May 1, 2022. Assuming the grant is successful, environmental remediation could not occur until late summer of 2022 and would require HEDRA to identify funding from a different fund to reallocate to environmental remediation since the $100,000 that HEDRA had budgeted for environmental remediation was needed to support ongoing work at The Confluence. ACTION – Potential Staff direction may include the following: 1) Develop an RFP to solicit development proposals for the greater area (including the wastewater treatment plant and Red Rock Corridor Parking Lot). Staff recommends this action. 2) Consider sale of the site as requested by Mint Development at $470,448 as determined by Staff for the proposed multifamily housing development project with a seasonal public bar/restaurant amenity. V. Reports and Information A. Development Update New Information Crossroads Site Development – Staff has been working with Enclave Development, LLC since early 2021 on identifying a site for a multifamily development project. Enclave has since entered into a purchase agreement for 10 acres of vacant land directly west of Coborns grocery. They have proposed to construct two apartment buildings that together would consist of approximately 200 units. The project is slated for review by the Planning Commission on February 14th and City Council on March 7th. If approved the project would begin construction in early summer 2022. Lofts On Third (NJS Stencil Apartment) – The developer has submitted for formal land use entitlements of the 89 unit apartment building. The project will be before the Planning Commission on February 14th and the City Council on March 7th. Project Steel – City Staff was made aware that the appliance manufacturer has informed the State of Minnesota that it is going to move forward with a location in a neighboring state. Staff has requested any additional feedback that DEED or GreaterMSP might have received from the business as to how our States proposal might have been more competitive. Best Property Annexation - Redwing Blvd - Summergate Development has terminated its development agreement for purchase and development of the property. Best Property still seeking a purchaser and developer. Public hearing for annexation scheduled for February 7th City Council. Staff will ask to table action on the request until a developer and concept plan are submitted. The Confluence – Environmental encapsulation project is complete. Private work within the building continues. The Quill - Schoolhouse Square Senior Housing – Framing work is progressing and the building is taking shape. Project is on track for fall 2022 opening. Autobody Shop - 2550 Millard Avenue – Matthew Goebel has submitted a Special Use Permit application to operate an auto body shop out of 2550 Millard Avenue (Green Lawn Sprinkler). Planning Commission will review the application on February 14th with City Council action on February 22nd. Rise Up Recovery - 303 5th Street E - Rise Up Recovery has submitted a Special Use Permit to operate a board and lodging facility with special services for substance use disorder recovery Planning Commission will review the application on February 14th with City Council action on February 22nd. Micromobility Ordinance - The City Council is scheduled to adopt a Micromobility Ordinance on February 7th. The ordinance provides for licensing of sharing services. BIRD scooters has interest in operating a scooter rental service in Hastings and is likely to apply for a permit for operation in 2022. PREVIOUS INFORMATION: Fleet Farm – City has issued permit for interior renovation and is awaiting plans for the exterior building supply yard. Villas at Pleasant – Construction of the first model home has commenced on the 32 unit subdivision near Northridge and Pleasant Jersey Mikes – City Council has granted Site Plan approval and building permits are under review to demolish the former Enterprise Car Rental Facility at 1217 Vermillion Street and construct a new restaurant. 410 Vermillion Street – HEDRA closed on PID’s 19-32150-28-020 and 19- 32150-28-021 on December 8th. 412 Vermillion Street – HEDRA closed on PID’s 19-32150-28-085 and 19- 32150-28-050 on December 15th. 209 Sibley Street – Squeaky Wheel Pottery will soon be opening to the public. This pottery business will offer a gift store, classes, workshops and studio events. Additional information can be found at www.squeakywheelpottery.com Tyler Street Landing Apartments (Luke Siewert) – The Dakota County CDA has approved a $250,000 Redevelopment Incentive Grant (RIG) for this project on November 16th. On October 4th the City Council approved land use actions to allow construction of the 32 unit apartment building at 3rd and Tyler. UBC North Building Sale – The winning bid for the 10,000 sf steel framed building came to $45,500. The winning bidder is currently securing a demolition permit to remove the building from the redevelopment site. Quality One Woodwork – Construction continues the 52,000 sf building expansion. Staff conducted a ground breaking ceremony alongside the Hastings Chamber of Commerce. Heritage Ridge – At the September 7th meeting, the City Council approved 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 approved 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. 315 Pine Street - Former Thorwood Inn - Cleanup work continues on the fire damaged former building. Partial demolition and renovation plans were approved by the Heritage Preservation Commission on July 27th. WSI Sportswear – Staff is working with WSI regarding agreements related to the HEDRA land sale. WSI has also continued work with a general contractor regarding future construction of their facility. ATTACHMENTS • Minutes – January 13, 2022 - Regular Meeting • Bills - January, 2022 • Resolution #2022-07 Approving TIF Plan for TIF 9 • 218 2nd Street LLC Façade Improvement Program Application • Resolution #2022-08: Approve Façade Improvement Program (FIP) Grant for Improvements at 218 2nd Street E • Eljin Properties Façade Improvement Program Application • Resolution #2022-09: Approving Façade Improvement Program Grant for 214 Ramsey Street • Resolution #2022-10: Approving Interfund Loan for TIF 9 • TIF 9 Staff Report from Northland Securities • TIF Plan for Public Hearing • NSI Service Agreement • Campbell Knutson Legal Service Agreement Next Meeting: Thursday, March 10, 2022.