HomeMy WebLinkAbout02-11-10 Minutes (2)Hastings EDRA
Hastings Economic Development and
Redevelopment Authority
6:00 p.m. Hastings City Hall
Minutes of February 11, 2010
EDRA Commissioners Pam Holzem, Kurt Keena, Ron Toppin, Dennis Martodam and Donna Elling
Schultz absent, present.
Commissioner Bob Hollenbeck and Anthony Alongi
Staff present: Hastings EDRA Director John Grossman, Planning Director John Hinzman, and
Community Relations Specialist Shannon Rausch,
I. MEETING CALLED TO ORDER AT 6:00PM
II. APPROVAL OF MINUTES
Minutes from the January 14, 2010 were presented; Commissioner Toppin moved to approve the
minutes. Holzem seconded the motion;
Motion passed 5-0
III. BILLS
Commissioner Holzem moved to pay the bills. Elling Schultz seconded the motion.
Motion passed 5-0
IV. BUSINESS
A. Dennis Mann Property, 23XX Vermillion Street
The Dennis Mann property has been for sale for some time; however it appears he may be
more interested to sell now. The 0.83 acre vacant parcel is located on the east side of
Vermillion Street between Gahnz Furniture and State Farm.
The property is adjacent to the 23rd and Vermillion Street intersection. An extension of
23rd Street east of Vermillion and the creation of "backage roads" for business access
has been part of the City's long range plan for many years now. The Vermillion Corridor
Development Guidelines has identified the intersection for a future traffic light. In 2009
SEH conducted a study of the intersection to determine if it met warrants for a stoplight at
this intersection. The study found it currently did not; however future commercial
development could trigger warrant for a new light.
The property currently has a land value of $208,000, and right now it is estimated that fair
market value on this property is somewhere around $250,000. Mr. Mann indicated that
he would be looking for some where in the $6.00 — $8.00 /sq. ft. range.
Commissioners discussed and felt that it is important to consider acquisitions of
properties in the area in hopes of meeting warrants for a traffic light. Now would be the
perfect opportunity to try and do so.
Direction provided by the Commission to staff is to continue to pursue acquisition of the
Mann Property and report back at a later time.
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B. Bob Melson Loan Agreement:
The residential rehab loan for 413 W. Second St. is currently $280 per month which is a
significant percentage of his monthly income. EDRA is asked to consider re- amortizing
the balance of $14,772 at a 0.75% interest rate with a 15 year term and a payment of
$86.80 per month. If the Commission lowers the rate and the monthly payments are
made on time then the Commission can reevaluate the terms and conditions at that
time.
Commissioner Toppin moved to re- amortize the remaining balance as presented by staff.
Elling Schultz seconded the motion.
Motion passed 5-0
V. REPORTS:
A. Hudson Manufacturing
David Osberg and Paul Hicks met with Hudson representatives on February 3rd to discuss an
outline for the potential purchase of Hudson and relocation to the vacant Intek building on
10th Street.
Ehlers and Associates have developed a preliminary TIF projection to fund the possible
acquisition of Hudson based upon redevelopment potential of the property. Ehlers estimates
a net yield of TIF revenue at $45,000 per year, increasing to $85,000 annually with 2%
inflation over 25 years. Ehlers assumes the City would issue a three year (could be longer)
temporary G.O. TIF Bond to fund acquisition. After resale of the Hudson property, the
remaining debt would be retired with a long term permanent G.O. TIF Bond. This approach
eases the immediate impact of costs on the EDRA budget.
The City has contacted Liesch Associates to provide preliminary environmental due diligence
and demolition costs. Liesch estimates the cost of conducting a phase I and II environmental
site assessments, pre - demolition survey, pre- renovation survey, and demolition at $334,000
-$507,000.
The Dakota County CDA authorized the City's $250,000 Hudson grant at their February 9th
meeting.
B. Red Rock Station Area Study.
The Red Rock Project Management Team met on February 3rd to discuss the recent
breakfast event, and the kick - off/press event which took place on February 8th at the State
Office Building Press Room. Analysis of transit oriented development framework was also
discussed.
C. Marketing Focus Group.
Several small business owners from around town have been contacted and asked if they
would be willing to join us to discuss what kind of marketing efforts they might currently be
doing and to try and determine how the EDRA can assist them in drawing new customers,
particularly with bridge construction expected to start this fall and be in full swing by 2011.
These businesses include,
Barb Hollenbeck (Second Childhood)
Mark Vetvick (Country Inn and Suites)
Christine Schaffer (Hastings Gift, Garden and Floral)
Leslie Nielsen (Meloy Park Florist)
Ron Martino (Mississippi Clayworks)
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Karen Jung (Emporium)
Kevin Hoeschen (DBA)
Nicole ... (owner of Nu Wave Hair - Westview mall)
Jackie Eischen's ( Eischen's Cabinets)
Michelle Jacobs (chamber of Commerce)
Karen Spicer (Board of Tourism)
D. Annual Report
Planning Director Hinzman provided the Commission a brief summary on the 2009 Annual
Report
ADJOURNMENT:
Commissioner Toppin moved to adjourn at 7:00 p.m., Commissioner Holzem seconded.
Motion Passed 5-0
Next meeting is scheduled for March 11, 2010 at 6:00pm in the Council Chambers.
Shannon M.Rausch,
EDRA Secretary
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