HomeMy WebLinkAbout02-10-11 HEDRA MinutesHastings Economic Development and
Redevelopment Authority
6:00 pm Hastings City Hall
Minutes of February 10,2011
HEDRA CommissionersDennis Peine,Pam Holzem, Ron Toppin, Kurt Keena, Anthony Alongiand
Danna Elling Schultz,present
Staff present: City AdministratorDavid Osbergand Community Relations Specialist Shannon
Rausch.
Q:
UORUM
A quorum was establishedand the meeting was called to order, by Chair Ron Toppinat 6pm with
all members present.
I. M
INUTES
Commissioner Elling Schultzmotioned to approve the minutes from the January 13, 2011
meetings, Commissioner Peine seconded the motion.
Motion approved 6-0
III.B
ILLS
Commissioner Keenamoved to pay the bills. Commissioner Elling Schultzseconded
the motion.
Motion Passed 6-0
IV.B
USINESS
A.Authorize Advertisement for Commission Vacancy
Commissioner Keena motioned to place and ad in the Hastings Star Gazette as well as
advertisingin all other locations available through the City’swebsite and facebook
page. Keena also directed staff to notify past applicants to see if any are interested in
being considered again. Commissioner Elling Schultz seconded the motion.
Motion passed 6-0
Commissioners discussed the interview schedule and will participate. Commissioners
Elling Schultz, Holzem, and Peine volunteered to be apart of the interview panel.
B. Authorize City to Conduct Work on Hudson Windows Discovered in Demo of
Warehouse.
Upon demolition of the warehouse portion of the Hudson Building, windows that were
previously below grade were uncovered. Since the windows would be below grade,
Mn/Dot would liketo have mason block put in the windows prior to completion of the
demolitionfor safety reasons.
Mn/Dot has requested that the City conduct the work via an amendment to the existing
Highway 61 Bridge Cooperative Agreement.Mn/Dot would reimburse the City for the
cost of construction not to exceed $10,000. The estimated cost for the work is below
that amount.As the property owner, HEDRA is requested to consent to the work
completed by the City.
Commissioner Peine motion to adopt Resolution No. 2011-01 authorizing the City of
Hastings to contract for certain improvement on behalf of the Authority. Commissioner
Keena Seconded this motion.
Motion passes 6-0
C. Discuss BusinessSubsidies Related to TH 61 Bridge Improvements
As part of the TH 61 Bridge project, MN/Dot and their Joint Venture Teamhave
inquired if the City or HEDRA haveand type of business subsidies availableof to assist
with anticipated disruptionto businesses.
Neither HEDRA or the HRA haveprovided for business operational assistance in the
past. Other Cities and EDA’s have provided assistance to offset affects of construction
projects. One example would be In 2009, when Mn/Dot reconstructed TH 169 through
the City of St Peterthe EDA there offered business subsidy loads to help businesses
through the disruption.
HEDRA has budgeted $48,000 for commercial loans in 2011. In the past few years, the
full amount of commercial loans allocated was not used.
Question for HEDRA to discuss is whether the commission has an interest in
structuring some sort of subsidyto help businesses meet their expenses during the
disruption of the bridge construction.No businesses in town have yet asked if the City
or HEDRA has any loans available.
Followingthisdiscussion the Commission decided they are not interested at this time.
This has not beenthe past practice of the commission and would be more comfortable
offering some typeof subsidy if it was tied to collateral.
If the Commission were to reconsider this at any point in the future, they ask that staff
provide some very specific reason/impact that has come up affecting businesses to
cause a need for some type of loan.
D. Lanoga Corporation Business Subsidy Default (Pro-Build)
Pro-Build(formally UBC)closed it’s storelocated at 1101 Spiral Boulevard in the
Hastings Industrial Park. Lanoga Corporation (its parent company) entered into a
business subsidy agreement with the City of Hastingson July 5, 2005. At that time they
agreed to create four jobs and stay in business for at least five years.
The job requirement was satisfied by2008; however they did not fulfill the business
operation provision(closing six months before the fulfillment of five years.) Based on
staff’s initial calculations, Lanoga owes approximately $40,000 is subsidy repayment to
HEDRA.By failing to comply with the terms of the agreement.
Lanoga has requested that City and HEDRA waive the five year operation requirement
provision. Theystates that they were in business for 4.5 of the required five years, and
while in operation surpassed the job creation and value requirements of the subsidy
agreement. The subsidy agreement required the creation of four FTE jobs as a
minimum of $13 per hour, Lanoga created eight jobs at a minimum of $18 plus medical
benefits.
Commissioners discussed the consequences of waiving these penalties and consider
Lanoga’srequest to waive the five years of continuous business provision of the
Business Subsidy agreement.
Commissioner Elling Schultz motioned to deny Longa’s request. Commissioner Alongi
seconded this motion.
Motion passes 6-0
E. Consider Consultant Assistance in Securing Hudson Environmental\Demolition
Grants
Staff has met with Steve Heurung an Environmental Analyst withStoel Rives,
Attorneys at Law.Steve serves as an environmental grant consultant to various cities
and development agencies seeking funds to clean upand develop brownfield sites.
The company has been very successful in preparing grant applications for state and
federal clean up and development dollars. He has conducted a majority of his work for
the St. Paul Port Authority.
After review of what Mr. Heurung and his firm charge for their services staff is asking
for direction for the Commission on whether the theyareinterested in contracting with
Mr. Heurung to provide environmental grant assistance.
Based on the high fees which were proposed by Stoel Rivers and Mr. Heurung, the
Commission is not interested at this time.
F. Request to contribute to Graphic Design Mural
Karen Green Jung is raising funds to paint a mural on the 2nd Street frontage of
Graphic Design and has asked if HEDRA could provide assistance. Total cost for the
project is estimated at $8,000. HEDRA does not have any funding specifically allocated
for this purpose.The project could possible qualify for a Commercial Rehab Loan if the
mural is deemed an “improvement to the exterior”
There is also a grant that Ms. Green Young is looking at applying for through Valspar
paints which staff just learnedabout within the past few days. We haveforwarded this
grant application to Ms. Green Jung. As of this afternoon Ms. Green Jung indicated that
she would first try applying for this grant, then see if additional fund would be
necessary.
Commission discussed and all are supportive of the concept, just not sure they would
be the right entityto sponsor it.
IV.R&I
EPORTSNFORMATION
A.Hudson Update
Stark Preservation Planning has begun work on the Hudson reuse study and historic
structures report on behalf ofMN/Dot. Over the next month they will be collecting data
and conducting field investigations. Meetings with local leaders as well as an open
house are scheduled for early April.
B.TH 61 Bridge Update
Large drills continue to bore 5-foot diameter holes into solid bedrock as part of the
foundation for the future Pier 5, located near Historic Downtown Hastings. Pier 5 will
eventually support the southern end of the new bridge’s arched main span. Each shaft
ranges from 20-35 feet deep. Other work underway includes
• Setting the “ring” – or metal frame – that will help support the sheet pile walls for
Pier 6’s cofferdam. The cofferdam will enable construction of Pier 6’s foundation.
Pier 6 will eventually support thenorthern end of the main span.
• For Piers 8-10 on the north end of the project, crews continue to drive pile for Pier
9, build forms in preparation of pouring footings for Pier 10, and excavate inside of
Pier 8’s cofferdam.
Pile driving for all piers will continue through March, 2011. The sounds of
hammering steel can be expected to be heard between 7 a.m. and 9 p.m.
C.Minnesota Main Street Program Visit
The selection committee for the Minnesota Main Street Program visited downtown on
January 21st.Ron Toppinand John Grossman were present along with staff at City
Hall to answer questions and provide a history. The group also met on site with
Michelle Jacobs, Kevin Hoeschen, and Karen Green Jung. The Committee has
selected Hastings as one of the Citiesselected by the committeefor 2011. Now we
need to decide if we want to accept.
D. Downtown Update
Hastings Family Service moving into Spiral Foods location. The move will take place
between now and May. Spiral Foods is looking for a new location. Staff met with
Spiral Foods and reviewed potential commercial sites for their relocation.
Photography Studio in former Meyer Company. Tom Schneider has split of the
western one story portion of the Meyer Company property. He has a buyer interested
in opening a photo studio.
E.Marketing Update
Himle Horner will be conducting a meeting with our focus group on Wednesday,
February 23. The intent is to clarify plan goals and objectives, prioritize target
audience, identify the community’s strengths/weaknesses, and perhaps most
importantly solicit statements from business owners for use in future marketing efforts
by using the following as discussion points. Commissioners are invited to attend this
meetingif available.
A:
DJOURNMENT
Commissioner Peinemoved to adjourn at 6:40 p.m., Commissioner Keenaseconded.
Motion Passed 6-0
Thursday,March10, 2011
Next meeting is scheduled for at 6:00pm in the Council Chambers.
Shannon M. Rausch,
HEDRA Secretary