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HomeMy WebLinkAboutAgenda Notes - 2022.05.12HASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY May 12, 2022 - 6:00 pm. HASTINGS CITY COUNCIL CHAMBERS I. Quorum II. Minutes Please see the attached HEDRA Meeting minutes from the April 14, 2022 regular meeting for your review and approval. III. Bills April Bills Mavo Systems $174,199.93 Confluence - Environ - Encapsulation Clean Vapor $30,000.00 Confluence - Environ - VIMS Dakota CDA $5,150.00 Admin - Open to Business Annual Fee MN DEED $128.11 Admin - Conference Levander Gillen Miller PA $89.50 Legal - General Centerpoint Energy $18.00 412 Vermillion - Heat Please see attached general ledger detail from the last two months for further information. IV. Business A. Adopt Resolution #2022-23 Rescinding Façade Improvement Grant to Jono Properties, LLC for improvements at 221 Sibley Street HEDRA Adopted Resolution #2022-19 approving a Grant to Jono Properties, LLC for window replacement at 221 Sibley Street. The owner of Jono Properties, LLC, Jillian Newes-Opatz is completing documentation to get HPC approval of the window replacement. The window vendor is estimating 9-12 months for window construction due to the large number of windows, 39 in total that will be replaced. Ms. Newes-Opatz did not want to request an extension and potentially sit on those grant dollars for that period of time as she assumes that others in the community would be interested in putting those dollars to use more quickly. Ms. Newes-Opatz said she would reapply in 2023 if the program is again offered. Due to the sheer size and projected timing, Staff would anticipate that the project would have enough remaining eligible costs to warrant a future application. If Resolution #2022-23 was approved by HEDRA, $2,297.60 would again be available in funding. Staff would send a mass email notifying property owner’s that money was again available on a first come first served basis. Action: Motion to Adopt Resolution #2022-23 Rescinding Façade Improvement Grant for 221 Sibley Street. B. Adopt Resolution #2022-24 Authorize Signature - Consent to Assign - TIF Agreement - Stencil\Lake Isabelle Flats As part of Stencil Development’s 89 unit apartment building at 3rd and Tyler Streets a separate limited liability company (Isabelle Flats, LLC) has been established for ownership purposes. HEDRA is asked to consent to NJS Development, LLC assigning its interest in our Contract for Private Redevelopment (TIF Agreement) to Lake Isabelle Flats, LLC and NSKW, LLC (owner of 404 East 3rd St). All entities are owned and controlled by Nathan Stencil. Please see the attached Assignment and Assumption of Contract for Private Development for further information. Action – Motion to adopt Resolution #2022-24 Approving HEDRAs consent to NJS Development, LLC assigning its interest in the Contract for Private Redevelopment to Lake Isabelle Flats, LLC and NSKW, LLC. V. Reports and Information A. Confluence Environmental Costs HEDRA incurred two large bills this month that require further explanation. The $30,000 bill to Clean Vapor is a Vapor Intrusion Mitigation System (VIMS) payment as part of a $40,000 retainage; the payment was anticipated and included in the original contract. The Mavo bill for $174,199 for encapsulation was not anticipated and is a result of significant additional work required to prepare surfaces and apply encapsulant. The bill is significantly larger than the $100,000 estimate provided by Mavo in December, 2021. Staff has had numerous conversations with Mavo over the past few months concerning the additional payment which have resulted in a slight reduction to the bill. As part of our Purchase and Development Agreement for transfer of the former Hudson Manufacturing Building to Confluence, the City and HEDRA agreed to complete environmental remediation of the site. Most of the remediation was complete prior to property transfer in 2018 and assisted through nearly $5 million in grant funding. Post-transfer obligations included installation of a VIMS and sealing\encapsulation (painting) of polluted wood surfaces generally within the basement and first floor of the structure. VIMS equipment installation is complete and pending final connection and testing with HVAC components to be installed by Confluence. Wood sealing and encapsulation is ongoing. Work involves scraping of the wood surfaces (ceilings and joists) to remove old paint and then applying a paint-like encapsulant as the final coat. A competitive bid process was used and Mavo Systems was awarded the contract for $400,000 in December 2019. Most of the contract cost was paid through existing environmental grants. Work was originally completed around the end of February, 2020. In Spring of 2021 we were made aware of flaking encapsulant in many areas of the building. In May 2021 we met on site Mavo and our environmental contractor Stantec to map areas of defect and to review performance standards of the encapsulant paint. By the end of July, test areas were rescraped and encapsulant reapplied. Test areas were let to cure and reexamined at the end of August; with positive results. Mavo remobilized in September and completed a substantial rescraping and reapplication of encapsulant in most of the first floor area around November 1st. In early December we met on site with Confluence to review first floor work which Confluence found satisfactory. In late December scraping and encapsulant work resumed in the basement and was completed in February. B. Open To Business Quarterly Report MCCD has submitted the 2022 Q1 report which indicates that 6 Hastings businesses and 4 Hastings residents have reached out to and received small business guidance from the Open To Business Program. MCCD also highlighted in their 2022 Q1 report their support of the Spiral Foods Co-Op expansion through their $50,000 in financing. Open To Business continues to be an important economic development tool for the City of Hastings. C. Development Update New Information Quality One Woodworking – Quality One has completed their 52,000 square foot expansion has been completed and the business has received its certificate of occupancy. Staff will be working to schedule a ribbon cutting or other celebration to celebrate the business expansion. Jersey Mikes – Framing of the new Jersey Mikes restaurant at 1217 Vermillion Street is nearly complete. Lake Isabelle Flats (NJS Stencil Apartment) – Staff has scheduled a property closing for June 9th at which time Lake Isabelle Flats, LLC will take ownership of the former UBC site and Staff anticipates construction on the 89 unit market rate apartment building to begin. Construction is estimated to be completed by late summer 2023. Tyler Street Landing Apartments (Luke Siewert) – Staff continues to work with Mr. Siewert with regards to utility relocations related to Xcel Energy. The Dakota County CDA has approved a $250,000 Redevelopment Incentive Grant (RIG) to assist in part with relocation of utilities. The Confluence – Progress continues with interior activities including interior framing, replacement of fire suppression system, and replacement of windows. Makers Alleyway Market – Staff has received applications from 8 vendors to date that will be participating in the Makers Alleyway Markets to coincide with Music in the Park. Staff is preparing for eight markets and will continue to solicit for vendors. Capacity is approximately 25 vendors. Heritage Ridge – Building permits continue. Construction of the 3rd addition will be starting shortly and plans for the remaining lots as part of the 4th addition have been submitted. Villas at Pleasant – Construction of the first model home has commenced on the 32 unit subdivision near Northridge and Pleasant. Pre-sales continue to be strong. PREVIOUS INFORMATION: BIRD Scooters - Bird Scooters launched their Hastings operations on April 1st. They currently have 25 scooters deployed in various areas of the City with approval to have up to 100. Crossroads Site Development – On March 7th, the City Council approved two apartment buildings containing a total of 211 market rate apartment units by Enclave Development south of 33rd Street between Terry’s Hardware and a strip mall. The project has proposed to begin construction in summer 2022 with completion of the first building in the fall of 2023. Rise Up Recovery - 303 5th Street E – On March 7th, the City Council approve a Special Use Permit to Rise Up Recovery to operate a board and lodging facility with special services for substance use disorder recovery. UBC North Building Sale & Removal – The 10,000 sf building has been removed from 415 4th Street E. Building was sold for $45,500. Site is part of the future Lofts on 3rd Apartment project. Autobody Shop - 2550 Millard Avenue – On February 22nd, the City Council approved a special use permit for Matthew Goebel to operate an auto body shop out of 2550 Millard Avenue (Green Lawn Sprinkler). The Quill - Schoolhouse Square Senior Housing – Framing work is progressing and the building is taking shape. Project is on track for fall 2022 opening. 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. Action on the application tabled at City Council pending identification of a new developer and concept plan. Fleet Farm – City has issued permit for interior renovation and is awaiting plans for the exterior building supply yard. 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. ATTACHMENTS • Minutes – April 14, 2022 - Regular Meeting • Bills - March, 2022 • Resolution #2022-23: Rescinding Façade Improvement Program Grant to Jono Properties, LLC for improvements at 221 Sibley Street • Resolution #2022-24 Approving HEDRAs consent to NJS Development, LLC assigning its interest in the Contract for Private Redevelopment to Lake Isabelle Flats, LLC and NSKW, LLC • Assignment and Assumption of Contract for Private Development Next Meeting: Thursday, June 9, 2022