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Home My WebLink About05-13-2010 HEDRA AgendaHASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY Agenda for May 13, 2010, 6:00 pm. City Hall CITY COUNCIL CHAMBER L Quorum. II. Minutes of March 11, 2010 III. Bills IV. Business A. Adopt Resolution: Request City Council Call a Public Hearing: Modification to Vermillion Street Redevelopment Area Plan and Proposed Establishment of Tax Increment Financing District No. 5. V. Reports and Information A. Mann Property Purchase Agreement B. Consider Tax Abatement Use \Policy C. Marketing Focus Group Update D. Red Rock Station Area Study E. Hudson Manufacturing F. Hastings Bridge Update G. Certificate of Satisfaction — Eischen Cabinets H. Family Video Purchase Offer L Downtown Hardwire Alarm Update J. Business (Industrial) Park Update VI. Adjourn Next Meeting: June 10, 2010 HEDRA AGENDA NOTES FOR MAY 13, 2010 BILLS March Bills Ehlers & Associates $285.00 Financial Services —Hudson Bradley & Deike $80.00 Review Documents — Melson April Bills Ehlers & Associates $332.00 Financial Services — Hudson $475.00 Napa \Jiffy Site Dakota County $46.00 Melson Document Recording Bradley & Deike $32.00 Hollenbeck Documents Please see attached general ledger detail. MINUTES Please see attached HEDRA Meeting minutes from March 11, 2010 for your review and approval. BUSINESS A. Adopt Resolution: Request City Council Call a Public Hearing: Modification to Vermillion Street Redevelopment Area Plan and Proposed Establishment of Tax Increment Financing District No. 5. Linn Companies has submitted a concept plans to construct an 8,500 s.f. Napa Auto Parts Building at 15 and Vermillion Streets. Two concepts were presented showing different locations for the building on the site. The Development Review Committee has commented on the plans and its preference for having the building nearest the intersection of 15 and Vermillion. Please see attached plans. Ehlers and Associates estimates that $128,000 of TIF could be generated to assist in site preparation and reimbursement for demolition. EDRA will likely be asked to formally establish a TIF district on the site. Please see attached TIF analysis. Please see attached resolution, schedule, estimate of tax increment generation, and concept plans for Napa Auto Parts. REPORTS A. Mann Property Purchase Offer A preliminary agreement to acquire the Dennis Mann property at 23 and Vermillion has been submitted on behalf of HEDRA (please see attached). The proposal offer is $226,000 (about $6.25 per s.£). Mann's representative, CB Richard Ellis, indicated that they have received one other offer besides HEDRA and will be evaluating. Please see attached purchase agreement B. Consider Tax Abatement Policy \Use The City has been approached by a business in the Hastings Industrial Park seeking tax abatement assistance. David Osberg will be present to facilitate discussion on the desire to provide tax abatement assistance to businesses. Please see attached adopted Business Subsidy Criteria. C. Marketing Focus Group The Marketing Focus Group has met a total of three times. These meetings have provided great direction for staff to write an RFQ, seeking qualifications for interested consultant teams. A draft of this RFQ is included in your packet. Clarification is being sought regarding what exactly the Commission's goals are and what end product HEDRA would like to receive. Also clarifications is sought as to how much HEDRA is willing to spend on this initial study /branding effort, as well as whether or not there will be money available in future EDRA budgets to continue marketing efforts, or if this is a one year effort? Please see attached draft Request for Proposals D. Red Rock Station Area Study. The City of Hastings has submitted a grant application to MN Dot in the amount of $615,000 to fund construction cost of a 100 space park and ride lot on Block 16 near the depot. MN DOT is expected to announce grant recipients in July. If funded, the project could begin construction this year. Please see the attached concept plan. E. Hudson Manufacturing On March 23 the City met with representatives from Hudson Manufacturing and Intek to discuss the potential city acquisition of Hudson, as well as Hudson's potential purchase of the Intek facility. Further information will be presented at the meeting. F. Hastings Bridge Update • Demolition work is near complete of the former auto parts store on Vermillion Street. • Replacement of the western lattice tower with a monopole is nearly complete. The utility lines on top of the pole are scheduled to be lowered somewhat upon completion of the new bridge. The eastern lattice tower replacement may not take place until construction of the new bridge. • Rerouting of the electrical lines on the river flats is nearly complete. • The technical portion of the design \build proposals are due from contractors in the next couple of weeks; the cost estimate is due in mid June. MN Dot will review and assign points to the proposals and then divide the scores by the cost estimates. Final announcement of contractor and bridge type should take place in late June or early July. • Demolition of the Hudson Warehouse has been delayed, and will now be part of the design \build contract for the bridge — demolition won't take place until at least July. G. Certificate of Satisfaction — Eischen Cabinets Eischen Cabinets has satisfied its Industrial Park Land Credit obligations for construction of their second building at 625 Commerce Drive. The $49,984 deferred credit for land acquisition was granted in 2005 pending satisfaction of employment and construction obligations within five years. H. Family Video Purchase Offer The City Council will hold a public hearing on May 17 to consider sale of a portion of land located between Walgreens and 1101 Vermillion Street. Family Video has Family Video is interested in purchasing the existing home at 1101 Vermilion Street (located directly south of Walgreens) and construct a 4,000 to 6,000 s.f. video rental store on the site. Please see attached site location map. L Downtown Hard Wire Alarm Systems City Staff is arranging a meeting with downtown business owners to consider drafting a request for proposal seeking a single contractor to install hard wire alarm systems downtown. The 2010 CDBG budget allocates additional funding that may pay most (if not all) of the cost of alarm system installation. We are seeking a better estimate on the total cost and anticipate cost savings with a single contract. J. Business (Industrial) Park Improvements Update • The new Hastings Business Park Signs should be installed in the next couple of weeks. Please see attached final sign design. • Business Park roads will be seal coated and covered with trap rock beginning in June. Please see attached map. • All landscaping has been installed. The City will monitor planting and turf to ensure they become established. Please see attached sign design, and seal coat location map. ATTACHMENTS • March General Ledger Statement • April General Ledger Statement • HEDRA Minutes — March 11, 2010 • Resolution Ordering Public Hearing on TIF • Schedule for Events — TIF Establishment • Tax Increment Estimates • Napa Concept Plan • Purchase Agreement — Mann Property • HEDRA Business Subsidy Criteria • Draft RFQ for Marketing • Red Rock Parking Lot Concept Plan • Location Map — Family Video Purchase • Business Park Sign Design • Business Park Seal Location Map