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Home My WebLink AboutI. Agenda Notes - 2023.1.12HASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY January 12, 2023 - 6:00 pm. HASTINGS CITY COUNCIL CHAMBERS I. Quorum II. Minutes Please see the attached HEDRA Meeting minutes from the December 8, 2022 regular meeting for your review and approval. III. Bills December Bills Clean Vapor *$39,700.00 Confluence - Vapor Mitigation Levander Gillen Miller $1,560.00 Legal - HEDRA Loans and General Electro Watchman $1,112.48 213 Ramsey Street - Alarm and Monitoring HEDRA Commissioners $66.00 Admin - 2022 Meeting Compensation * $38,500 of expenditure reimbursed from Confluence Development. Net HEDRA expense $1,200.00 Please see attached general ledger detail for further information. IV. Business A. Election and Appointment of Officers The following annual elections and appointments are due: • Appoint President, Vice-President, and Treasurer, to be elected from citizen commissioners. • Appoint Eric Maass as Secretary • Appoint Chris Eitemiller, Finance Manager as Assistant Treasurer • Designate Kori Land, City Attorney; and Andrea McDowell Poehler as Legal Counsel. Nominations may be made individually or as a group and then voted on by the full Board. B. Resolution #2023-01: Authorization of Banking Signatories Staff has prepared Resolution #2023-01 for HEDRA consideration. Staff is seeking HEDRA recommendations for 2023 HEDRA President, Treasurer, and Assistant Treasurer. Staff will update Resolution #2023-01 based on HEDRA feedback for those positions. Action: Motion to Adopt Resolution #2023-01 Authorization of Banking Signatories V. Reports and Information A. 2022 Economic Development Year End Report Accomplishments: ▪ Incentive Program Updates • Revolving Loan Program o HEDRA adjusted the program from fixed interest rate between 3.0 – 4.0% to benchmarked to the Prime Rate with opportunities to earn interest rate reductions. o All loans current on payments. o In 2022 HEDRA received $38,671.35 in loan payments which includes $5,327.94 in interest. o Jupiter Peak Jupiter Peak Lodging, LLC paid of its outstanding loan amount of $4,465.28 in March 2022 when its property located at 110/112 2nd Street E was sold to a new owner. o HEDRA approved $50,000 in financing to Spiral Foods for their expansion o HEDRA approved $20,000 in financing to RH Holdings for improvements at 1250 South Frontage Road. • Establishment and implementation of Façade Improvement Grant Program • Rescinded “Land For A Dollar” program ▪ Development Projects • Confluence Development • Lake Isabelle Flats Apartment Building (Stencil Group) • Current 33 Apartment Building (Enclave Companies) • Jersey Mikes • Intek Plastics Expansion Project o Applied for/received approval of $1.8M in State funding through Minnesota Investment Fund and Job Creation Fund. ▪ Industrial Land Sales • Intek Plastics – 3.1 acres land sale approved • Hired Rokos Advisors to increase marketing efforts of 50 acre industrial development site. ▪ Downtown Land Use Study Implementation • Sale of former UBC site and UBC building • Establishment of TIF District Number 9 in support of Lake Isabelle Flats development B. HEDRA 2021/2022 Strategic Plan Review HEDRA adopted a 2-year strategic plan in 2021. Provided in the meeting packet is the strategic plan matrix which includes their current status. The purpose of this review is to begin the process for adoption of a new 2-year HEDRA strategic plan. C. Rokos Advisors Update - Shovel Ready Development Site Staff met with Rokos on January 4th to receive an update on the ongoing efforts of marketing the City’s Shovel Ready development site which is located in the Hastings Business Park north of Spiral Blvd, and east of Enterprise Avenue. Due to the current financing limitations surrounding spec industrial, Rokos has shifted its focus to build to suit clients that would be looking to have a facility constructed rather than a developer constructing on spec and then looking to lease portions of the facility once developed. Included in this packet is a City of Hastings Traffic and Development Analysis which Rokos is using as a marketing piece with prospective end users. Rokos will be completing a labor study in January that will also be used in marketing efforts and will be present at the February HEDRA meeting. D. Development Update New Information Scooter Rental – The City Council approved micromobility license applications from both Bird Rides and Spin to operate 100 foot scooters each (200 total) within Hastings in 2023. The number of scooters is substantially greater than last year and the staff will monitor the scooter activity for any future council action in July. 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 were reviewed by staff during December. Land Equity plans to hold a neighborhood meeting in January, but no date has been established to date. 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. Structural steel for the remaining building is beginning to be erected. 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. The Confluence – HVAC work and window work progresses with most spaces being framed out. Bimi Thai – The owner has recently applied for their liquor license and the building inspection department anticipates completing final inspections sometime in January. Roosters Chicken – The final inspection has been scheduled with the building inspections department and the business has recently begun posting to hire restaurant staff. Restaurant opening may take place in the next week or two. KFC - Construction of the new KFC on the northwest corner of 18th and Vermillion (former Erickson Freedom Gas Site) is now expected to commence in spring of 2023. The developer has been progressing on City and State permitting. PREVIOUS INFORMATION: Intek Plastics Expansion – City staff continue to coordinate with Intek Plastics and the State of Minnesota DEED regarding MIF and JCF awards. Tyler Street Landing Apartments (Luke Siewert) – 32 unit apartment building at 3rd and Tyler Streets. HEDRA approved 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. Enclave Apartments – Construction of the first 100 unit building has begun. This apartment project is located on 33rd Street near Terrys Hardware. Lake Isabelle Flats (NJS Stencil Apartment) – Concrete and foundation work continues on the 89 unit apartment building located at 3rd and Tyler Streets. 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). 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. 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. 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. 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. 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. ATTACHMENTS • Minutes – December 8, 2022 • Bills - December, 2022 • Resolution #2023-01 Authorizing Individuals as designated signatories for purposes of authorized banking transactions. • HEDRA Strategic Plan Matrix • City of Hastings Traffic and Development Analysis Next Meeting: Thursday, February 9, 2023