HomeMy WebLinkAboutI.A - Agenda NotesHASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT
AUTHORITY
December 8, 2022 - 6:00 pm.
HASTINGS CITY COUNCIL CHAMBERS
I. Quorum
II. Minutes
Please see the attached HEDRA Meeting minutes from the November 10, 2022 regular
meeting for your review and approval.
III. Bills
November Bills
Spiral Foods Coop $13,510.95 Revolving Loan Fund - Working Capital - Draw 2 - Final
Electro Watchman $1,156.67 213 Ramsey - Alarm Installation and Monitoring
Spiral Foods Coop $854.47 Revolving Loan Fund - Machinery - Draw 2 - Final
Midwest Electric $360.00 213 Ramsey Street - Electrical Receptacle
Midwest Electric $325.00 Holiday Riverfront Lights - Pavilion Outlet
Levander Gillen Miller $297.00 Legal - HEDRA Loans and General
MN Pollution Control Agency $150.00 UBC - Brownfield Review
October Bills (approved last month and appearing on November general ledger detail)
MN Pollution Control Agency $4,350.00 UBC - Brownfield Review
Stantec Consulting Services $3,981.00 Confluence - Wood Sealing
Please see attached general ledger detail for further information.
IV. Business
A. Adopt Resolution #2022-31 Authorize Signature of the 2nd Amendment to Purchase
Agreement with River City Investments, LLC (Tyler Street Landing)
Staff is proposing a 2nd amendment to the purchase agreement between HEDRA and River
City Investments, LLC for the property located at 317 3rd Street E. The proposed
amendment would remove the requirement that the Developer have to remove structures
on the parcel located at 315 3rd Street which is owned by the Developer and part of the
approved redevelopment project site.
Previously, Staff was of the understanding that in order to be eligible to obtain a one year
extension of the $250,000 redevelopment incentive grant provided by the Dakota County
Community Development Agency (CDA), that the Developer would have to make at least
one grant disbursement request. However, the CDA has indicated that a disbursement was
not necessary and on November 11th issued the formal approval to the grant extension
request. Grant proceeds must be disbursed now by December 31, 2023.
Action: Motion to adopt Resolution #2022-31 Authorizing Signature of the 2nd Amendment
to Purchase Agreement with River City Investments, LLC.
B. Adopt 2023 Façade Improvement Grant Program
HEDRA allocated $50,000 in funding for FY2023 towards the continuation of the Façade
Improvement Grant program. Staff has proposed a few updates to the program following
experience implementing the program in 2022. Below is a summary of those proposed
revisions:
1. Offering $1.00 of grant money for every $2.00 of private investment.
i. Previously the grant offered $1.00 of grant money for every $1.00 of private
investment. Staff is recommending this change to increase the potential for a
greater number of grant recipients and increased leverage of private
investment.
2. Eligibility limitation of a property which received a Façade Improvement Grant in
the previous grant year stating they are eligible to apply at any time but would not
be considered for funding until after July 1 of the new grant year to ensure
application opportunity for properties that had not previously received a grant the
year prior.
3. Allowing six months for disbursement of funds rather than three months as well as a
one time staff authorized extension of up to two months. Any additional extensions
would require review/approval by HEDRA.
4. The $50,000 will be made available to all commercial/retail properties in the
downtown and vermillion street corridor areas at the beginning of the new year
rather than separate pots of money for each until midyear as was done previously.
Action: Motion to approve 2023 Façade Improvement Grant Program.
V. Reports and Information
A. Revolving Loan Program 2022 Loan Activity
In 2022, HEDRA made three loans from its revolving loan fund.
HEDRA approved a $25,000 working capital loan and a $25,000 machinery and equipment
loan to Spiral Foods Co-op. Spiral Foods has submitted invoices requesting the full $50,000
in funding. The loan agreement indicates loan commencement dates of May 1, 2022 with
one year of no interest and no payments.
Commencing on May 1, 2023 regular monthly payments will begin and interest will accrue
on the principal amount at a fixed annual rate of 3.5% until the loan has been paid in full.
HEDRA approved a $20,000 working capital loan to RH Holdings, LLC for improvements
to be completed at 1250 South Frontage Road. RH Holdings has submitted invoices
requesting the full $20,000 in funding. The loan agreement indicates a loan
commencement date of July 1, 2022 with one year of no interest and no payments.
Commencing on July 1, 2023 regular monthly payments will begin and interest will begin
accruing on the principal amount at a fixed annual rate of 3.5% until the loan has been paid
in full.
B. Development Update
New Information
Scooter Rental – Applications for micromobility licenses to operate electric rental scooters
have been received by both Bird Scooters and Spin. The City Council will review the
applications in January.
Best Property Annexation - Redwing Blvd - Land Equity has submitted conceptual plans
for development of the site into a mixture of single, two family, townhome, and apartment
units. Concept plans will be reviewed by staff during December. The concept will be
presented to the adjoining neighborhood in January.
Intek Plastics Expansion – On November 7th, the City Council approved sale of adjacent
land to support the construction of a 62,000 s.f. addition to their existing building located at
1000 Spiral Blvd. Council approved the Site Plan on October 10th. MN DEED provided
$1.7 million in assistance through the Job Creation Fund and Minnesota Investment Fund.
Therapy OPS – On November 7th, the City Council approved the Site Plan application for
construction of a new 2,300sf therapy building located at the northwest corner of Westview
Drive and South Frontage Rd (adjacent to Auto Zone).
Vermillion Acres – Footing and foundation work is nearing completion on construction of
the 75 unit senior housing facility near County Rd 47 and Riverwood Drive. MN Dept of
Labor and Industry has approved construction of the modular units, which will be produced
in a factory off site and assembled on site.
Lake Isabelle Flats (NJS Stencil Apartment) – Concrete and foundation work continues
on the 89 unit apartment building located at 3rd and Tyler Streets.
Tyler Street Landing Apartments (Luke Siewert) – 32 unit apartment building at 3rd and
Tyler Streets. HEDRA consideration of 2nd Amendment to Purchase agreement on
December 8th to eliminate requirement to demolish house by December 31, 2022. Dakota
County has extended the $250,000 Redevelopment Incentive Grant for the site.
The Confluence – HVAC work and window work progresses. The 2nd Street courtyard
fountain and landscaping is taking shape.
PREVIOUS INFORMATION:
Suite Living - Senior Housing – Construction is anticipated to begin in spring of 2023 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.
Enclave Apartments – Construction of the first 100 unit building has begun. This
apartment project is located on 33rd Street near Terrys Hardware.
Heritage Ridge – Grading activities have commenced for the final addition of the 116 lot
single family residential development near General Sieben Drive and Northridge Drive.
The Quill - Schoolhouse Square Senior Housing – Certificate of Building Occupancy has
been issued and final checklist items are nearing completion for the for the 90 unit
independent living senior facility near 10th and Vermillion.
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.
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.
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.
C. Recognition of Outgoing HEDRA Commissioners - Scott Sinclair, Mark Vaughan,
and Lori Braucks. This is the last meeting for our outgoing Commissioners:
Scott Sinclair was first appointed in 2016 as a citizen member and is completing
6.5 years on the Commission including serving as President, Vice President, and
Treasurer.
Mark Vaughan was first appointed in 2017 and is completing six years on the
Commission in addition to serving on the City Council.
Lori Braucks was first appointed in 2021 and is completing two years on the
Commission in addition to serving on the City Council.
During their term on the Commission, Scott, Mark, and Lori have assisted on a variety of
economic development initiatives including the establishment of the Façade Improvement
Grant, purchasing Rivertown Liquors and Country Nights for future redevelopment,
ensuring completion of the Confluence Redevelopment, selling the former UBC property
for new apartment development downtown, and sale of Industrial Park properties for
future job growth. We thank them for their commitment in making Hastings a stronger
community and setting the bar high for future Commissioners!
ATTACHMENTS
Minutes – November 10, 2022
Bills - November, 2022
Resolution #2022-31 Authorizing Signature of the 2nd Amendment to Purchase Agreement
with River City Investments, LLC
2nd Amendment to Purchase Agreement with River City Investments, LLC
2023 Façade Improvement Grant Program
Next Meeting: Thursday, January 12, 2023