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HomeMy WebLinkAboutHEDRA 01-8-09 Minutes~~DRA Hastings Economic Development and Redevelopment Authority 5:30 p.m. Hastings City Hall Minutes of January 8, 2009 Called to order 5:40 I. Oath of Office: The City Clerk administered the Oath of Office to HEDRA Commissioners Anthony Along, Bob Hollenbeck, Dennis Martodam, Ron Toppin, Pam Holzem, Kurt Keena, and Danna Elling Schultz. II. Business: A. Election of Officers: • Commissioner Keena nominated Commissioner Holzem for President, nomination approved 7-0. • Commissioner Martodam nominated Commissioner Hollenbeck for Vice President, Nomination approved 7-0. • Commissioner Toppin nominated Commissioner Keena for Treasurer, nomination approved 7-0. B. Delegate Offices and duties of Secretary and Assistant Treasurer City Administrator recommended that the position of Secretary be filled by Community Relation Specialist, Shannon Rausch and the position of Assistant Treasurer be filled by Finance Director Charlene Stark. Schultz moved to approve these recommendations and Alongi seconded the motion; motion passed 7-0. C. Approve Director City Administrator recommended that the position of Director be filled by John Grossman. Alongi moved to approve this recommendation and Hollenbeck seconded the motion; motion passed 7-0. D. Adopt Bylaws and Administrative Standards Council approved the proposed Bylaws and Standards at their November 17, 2008 meeting. Councilmember Alongi suggested including the word "encouraging" under A. Responsibility and Powers, Section 1. The first line would now read; "Responsibilities for encouraging business and industrial development within the city ... " Schultz moved to approve this recommendation and Toppin seconded the motion; motion passed 7-0. E. Adopt regular monthly meeting day, time and place The Second Thursday of each month was suggested with a meeting time of 6pm in the City Council Chambers. Alongi moved to approve this suggested time and Hollenbeck seconded the motion; motion passed 7-0. HEDRA: 01/08/09 1 F. Designate Counsel Staff recommended that HEDRA designate Dan Fluegel as counsel and continue to use the services of Robert Deike for specialized development and redevelopment documents and advice. Keena moved to approve this recommendation from staff and Martodam seconded the motion; motion passed 7-0. G. Adopt Resolution 1-2009 covenanting to accept the assets, liabilities and agreements of the HRA. Staff recommended that HEDRA adopt the resolution to meet a statute requirement and to document the transfer of responsibilities, including bonding authority for revenue bonds issued in the past by the HRA to HEDRA. Keena moved to adopt Resolution 1-2009 as recommended and Hollenbeck seconded the motion; motion passed 7-0. H. Order Public Hearing on business subsidy criteria Before HEDRA can provide financial assistance or act as a grantor of subsidies, the Authority must first adopt business subsidy criteria. The Authority may wish to hold a public hearing before adopting criteria. The criteria will be similar to that which the City currently uses. Pay bills III. Reports Keena moved to hold the public hearing at the next regularly scheduled HEDRA meeting on February 12, 2009 at 6:00 p.m. Alongi seconded this motion; motion passed 7-0 No bills to pay A. Review of the Responsibility and Power Director Grossman presented a review of the responsibility and power of the Hastings Economic Development and Redevelopment Authority. B. Review of Assets and Programs 1. HRA; Director Grossman reviewed several of the programs the HRA has been involved with recently. 2. EDC and Industrial Park; Planning Director Hinzman Outlined the various activities which the EDC had been working on including the Vermillion Corridor Guidelines. Planning Director Hinzman also outlined the Industrial Park and the responsibilities that the Authority will have with the Park. Through discussions it was suggested that staff provide Commissioners at the next meeting with acost-benefit analysis which would provide additional information on the public investment and job/tax base creation in the park to date. This would be used by the Commissioners to discuss and determine if the City's price for the land, should remain where it is at or be adjusted to be more consistent with current market conditions. HEDRA: 01/08/09 2 3. Budget and Revenues The Housing and Economic Development Authorities 2009 Budget and assets were present to the Board which showed a combination of: HRA Budget: $778,914 HRA Fund Balance: $454,000 EDC Budget 86 396 $1,319,307 Assets: HRA Land $2,250,000 Loans $481,302 HIP Land $2,468,000 $5,199,302 For now the two accounts will be kept separate because what was levied under HRA has to be spent on HRA activities and the same for the EDC budget. C. Potential and Pending Projects. • HEDRA Director Grossman outlined a recent request that has been brought forward by a resident requesting assistance to pay off the balance of a city assessment for repair of the waterline which was $9,174.00 (higher than the normal $3,000 - $5,000 repair cost.) Due to possible reductions to the resident's income the resident will become unable to pay the mortgage which included the assessment. The resident has said that they would be able to continue making the normal mortgage payment amount if the increase from the assessment wasn't included. The authority is being asked to consider assisting the resident in paying this assessment, either in the form of a forgivable loan or a deferred loan. Commissioners discusses why this repair was higher than normal and perhaps HEDRA consider assisting with the difference ($9,174 - $4,000). Following discussion the Commission directed staff to continue working with the resident to see if there is a way they could assist. • Planning Director Hinzman presented Mr. Ed Peterson's plans for property he owns along Vermillion Street. Mr. Peterson would like assistance from HEDRA on the demolition of one of the buildings on his property so he can expand another building and do some exterior improvements to the facade. The Authority is being asked if they would like to spend $3000 to hire Ehler and Associates to study the costs and benefits of assistance. Discussion was had as to whether or not the Authority should be the one spending the money to find out if this is a good idea or if the business owner should be spending the money on the study themselves. The Authority did agree that this would be a good project to help set a precedent which shows that they are willing to work with businesses, so that other businesses might also decide to make improvements to their own businesses and buildings. HEDRA: 01/08/09 3 Martodam moved to approve the hiring of Ehler and Associates at a total not to exceed $3,000, to study the proposed changes to the property, Hollenbeck seconded the motion; motion passed 7-0. HEDRA Director Grossman informed the Authority of AI Blakenship's desire to sell downtown properties including the VFW building and the building next door to the Post Office. Mr. Blankenship is wondering if the City or HEDRA would be interested in purchasing these properties. Director Grossman further stated that it might make sense for HEDRA to consider purchasing the house at 315 Third Street, but he is not sure about the VFW as it might not be cost effective to do so. Commissioners discussed the future of the Senior Center and the additional parking that could be provided through acquisition and demolition of the 315 East 3rd Street property. The Commission agreed to further explore acquisition of the property for future Senior Center and transit parking. Toppin moved to have staff further look into the purchase price of the house at 315, and to continue to monitor the other properties. Alongi seconded the motion; motion passed 7-0 D. Goal setting Authority was asked to come to the next meeting prepared to discuss goals and work plan. IV. Adjournment: Toppin moved to adjourn at 7:03 p.m., Alongi seconded the motion; motion passed 7-0 Next meeting Is scheduled for February 12, 2009 at 6:OOpm in the Council Chambers. Shannon M.Rausch HEDRA Secretary HEDRA: 01/08/09 4 HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY DAKOTA COUNTY, MINNESOTA RESOLUTION 1-2009 A RESOLUTION ACCEPTING THE ASSETS, LIABILITIES AND AGREEMENTS OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF HASTINGS Dated January 8, 2009 Commissioner -~~ introduced the following Resolution and moved its adoption. BE IT RESOLVED by the Board of Commissioners of the Hastings Economic Development and Redevelopment Authority, (the "HEDRA") as follows: SECTION 1: BACKGROUND, FINDINGS 1.1 The City Council of the City of Hastings, Minnesota (the "City") established a municipal economic development authority, the Hastings Economic Development and Redevelopment Authority ("HEDRA") within the City on September 15, 2008, by Resolution 9-14-2008, to come into existence and begin to exercise its powers on January 1, 2009. 1.2. As authorized by Minnesota Statutes, Chapter 469 (the "Act") the City established HEDRA to coordinate and administer economic and redevelopment plans and programs of the City. 1.3 Pursuant to Minnesota Statutes, section 469.094, the City Council of the City by Resolution 11-16-08 on November 17, 2008, directed that the administration, control, authority and operation of all HRA programs and projects, and the funds, property, agreements, mortgages, bonds and obligations related to them, shall be transferred from the HRA to HEDRA effective January 1, 2009. The HEDRA is required to accept the administration, control, authority and operation of the projects and programs and may exercise all the powers that the HRA in establishing the projects and programs could exercise with respect to them. SECTION 2: ACTIONS 2.1. The HEDRA hereby accepts the administration, control, authority and operation of the projects and programs and will exercise all the powers that the HRA, in establishing the projects and programs, could exercise with respect to them; and covenants and pledges to assume the liabilities and debts of the HRA; and covenants and pledges to perform the terms, conditions and covenants of the bond indenture or other agreements executed for the security of any bonds issued by the HRA; and to perform the terms and conditions of loan agreements executed by the HRA; and to perform the terms and conditions of purchase and development agreements executed by the HRA. 2.2. The appropriate officers of the HEDRA are authorized and directed to execute all deeds, assignments, agreements, mortgages, bonds and other instruments necessary to effe~ct^uate the covenants and pledges described in Section 2.1. ~~_~~,, Commissioner ~ ~:f1{~C ~~- made a second to the foregoing resolution and upon being put to a vote, the following council members voted in favor of the Resolution: Ayes: `7 Nays: Absent: Whereupon the President declared the resolution duly adopted by the HEDRA's Board of Commissioners. ~~~ President ATTEST: ~~!~~~z~ Dir or (seal)