HomeMy WebLinkAboutAgenda Notes - 2022.09.08HASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT
AUTHORITY
September 8, 2022 - 6:00 pm.
HASTINGS CITY COUNCIL CHAMBERS
I. Quorum
II. Minutes
Please see the attached HEDRA Meeting minutes from the August 11, 2022 regular
meeting for your review and approval.
III. Bills
August Bills
RH Holdings LLC $17,703.10 Revolving Loan Disbursement - 1250 South Frontage
River Investments (Busted Nut) $5,000.00 Façade Improvement Grant - 118 E 2nd St
Radke & Mohrhausen LLC $4,927.50 Façade Improvement Grant - 215 Sibley
Levander Gillen Miller $706.50 Legal - HEDRA Loans & General
Centerpoint Energy $18.00 Block 28 - Heat - 412 Vermillion
Please see attached general ledger detail for further information.
IV. Business
A. Resolution 2022-23: Authorize 2023 Economic Development Levy
As part of the 2023 budget, City Staff has prepared the proposed 2023 HEDRA HRA
Levy. Staff is recommending the full HRA tax levy which would generate approximately
$429,211 in revenue for HEDRA. Those dollars would be utilized to complete projects
and goals identified within the current HEDRA Strategic Plan. Above is a summary of
HEDRA Budget Priorities that have been reviewed by both the City Administrator and
Finance Committee of City Council:
ACTION – Motion to adopt Resolution 2022-30 Approving Proposed 2023 HRA Tax
Levy. Please see attached Resolution for further information.
B. Recommendation on land sale to Intek Plastics, Inc.
As Intek moves forward with expansion plans, a piece of that puzzle includes a 3.1 acre
parcel of land (PID 19-32002-01-021) owned by the City which is directly adjacent to the
current Intek Plastics facility. Due to the scale of the proposed expansion project additional
land area will be necessary to treat and manage stormwater as well as provide future
vehicular access to the expansion. Based on Dakota County Assessors office, the land has
an estimated value of $163,000; however, at $1.54 per square foot which aligns with past
HEDRA land sales, the sale price would be $207,955.
The applications to both the Minnesota Investment Fund (MIF) and Job Creation Fund
(JCF) include requirements to show budgetary sources and uses for the project and the
applications are scored in part based on local financial participation in the project. The
potential land value was included as a City contribution towards the project. The project
was awarded $450,000 in JCF funding and $275,000 in capital investment rebates as well
as $975,000 in MIF funding for a total of $1,700,000 in funding from the State of
Minnesota. This project will also provide the creation of 46 full time jobs paying an
average hourly wage of $32.54 plus benefits over the next three years. Additionally, Intek
Plastics will be investing more than $8,000,000 in the expansion. To align with the
proposed project budget, the City would sell the parcel of land to Intek Plastics, for $1.00
an acre.
While HEDRA recently rescinded its official “Land For A Dollar” program, this project is
a great example of a project in which the City can be more strategic in its offering of public
subsidies as this project is one that the City knew it was in competition for against another
State and which it could also leverage considerable financial resources from the State of
Minnesota in exchange for the reduction in sale price.
The proposed land sale will go before the City Council on October 3rd at the same time as
Intek will be seeking site plan approval. Staff is seeking a recommendation on that land
sale from HEDRA.
ACTION – Motion to recommend City Council approve land sale to Intek Plastics at a
price of $1.00 per acre.
V. Reports and Information
A. Block 1 Update
HEDRA previously adopted resolution #2022-11 granting exclusive land sale negotiations
for Block 1 to Mint Development, LLC through September 10th, 2022. Mint Development
has informed Staff that it is not seeking to extend its exclusive land sale rights.
Development costs associated with rising interest rates has made the project not financially
feasible even when considering potential subsidies in land cost and tax increment
financing. No additional action from HEDRA is requested as Staff is considering potential
next steps as it relates to development of the vacant parcels in the area.
B. Hastings Business Incubator Project Update
Staff recently toured the St. Croix Valley Business Innovation Center (SCVBIC) located
in River Falls, Wi. Staff met with the center administrator to learn more about their
development process as well as the day to day operations of their innovation center. Staff
also met with a general contractor to get an initial assessment of the existing building.
Based on what was learned at the SCVBIC and discussion with the general contractor,
Staff is soliciting for partnership with an architect to draft potential building layouts. Staff
anticipates only minor internal modifications to minimize upfront investment in interior
improvements.
C. Shovel Ready Development Site Update
The Rokos team has prepared marketing information for the site including new signage to
be installed on site by mid-September. An Offering Memorandum (marketing brochure)
has also been completed and is included as an attachment to this packet. Rokos has
provided this information to acouple developers and is in conversation with two end users,
one of which they are putting together mapping of client locations. Staff will provide
additional information via the market activity report during the meeting.
D. Development Update
New Information
The Quill - Schoolhouse Square Senior Housing – Project opening scheduled for mid-
September for the 90 unit independent living senior facility near 10th and Vermillion.
Suite Living - Senior Housing – Land Use Applications have been submitted for
construction of a 32 unit senior housing facility at the southeast corner of 33rd Street and
Vermillion. The one story project consists of both dependent and memory care units.
Review by the Planning Commission is tentatively scheduled for September 12th.
Fleet Farm – Opening day is scheduled for September 9th at 875 General Sieben Drive.
Work continues on the outdoor material sales area.
Makers Alleyway Market – Staff has completed the 2022 Makers Market series which
included 7 markets which was capped off with the largest single night vendor total of 20
vendors on August 25th. The market saw a grand total of 36 unique vendors. Staff will be
sending out a vendor satisfaction survey to assess what can be improved in 2023.
United Heroes League - Outdoor Refrigerated Rink – City Council approved an Interim
Use Permit to construct an outdoor refrigerated rink along with temporary parking at their
15211 Ravenna Trail campus.
Heritage Ridge – City Council approved the 4th and final addition of Heritage Ridge
containing 36 along with an agreement to conduct preliminary grading.
Enclave Apartments – Enclave will begin construction of the north building (along 33rd
Street) shortly, with the 2nd building constructed at a later date. The City Council approved
the development agreement on August 15th and will consider approval of a vacation of
easement for utilities on September 6th. Project consists of two apartment buildings
containing 211 apartment units near 33rd Street and Vermillion.
Vermillion Acres – A footing and foundation permit has been issued for construction of
the 75 unit senior housing facility near County Rd 47 and Riverwood Drive.
Lake Isabelle Flats (NJS Stencil Apartment) – Stencil has officially closed on the
HEDRA owned property as well as construction financing. Final review of environmental
studies is occurring at the MN Pollution Control Agency to allow for construction to begin
of the 89 unit building near 3rd and Bailey Streets.
The Confluence – Progress continues with interior activities including interior framing,
replacement of fire suppression system, and replacement of windows.
PREVIOUS INFORMATION:
KFC - City Council has approved the Site Plan for construction of a new KFC Restaurant
to be located on the northwest corner of 18th and Vermillion (former Erickson Freedom Gas
Site).
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.
Jersey Mikes – The Jersey Mikes building is nearing substantial completion with the focus
now on exterior site improvements including landscaping and parking lot improvements.
The Jersey Mikes Subs is anticipated to open in the first week of September.
Caribou Coffee - Coborns - Plans have been approved for the addition of a drive-thru
window for Caribou Coffee at Coborns Grocery located at Redwing Blvd and 33rd Street.
Villas at Pleasant – More permits have been submitted for construction and work
continues on the first model home at the 32 unit subdivision near Northridge and Pleasant.
Tyler Street Landing Apartments (Luke Siewert) – Purchase agreement extended to
August 1, 2023 with home demolition by December 31, 2022 for the 32 unit apartment
building at 3rd and Tyler Streets.
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.
ATTACHMENTS
• Minutes – August 11, 2022
• Bills - August, 2022
• Resolution 2022-23: Authorize 2023 Economic Development Levy
• 50 Acre Shovel Ready Offering Memorandum
Next Meeting: Thursday, October 13, 2022