HomeMy WebLinkAbout07-14-2011 HEDRA MinutesHastings Economic Development and
Redevelopment Authority
6:00 pm Hastings City Hall
Minutes of July 14,2011
HEDRA CommissionersPam Holzem, Kurt Keena, Tony Alongi, Ron Toppin, Michael Kelley,and
Danna Elling Schultzpresent
HEDRA Commissioners Absent:Dennis Peine
Staff present: Community Development Director John Hinzmanand Community Relation Specialist
Shannon Rausch.
Others Present: Andy Gitzlaff, Transportation Planner,Washington County Regional Railroad
Authority
Q:
UORUM
A quorum was establishedand the meeting was called to order, by Chair Toppinat 6pm with four
members present, (Commissioner Elling Schultz and Kelley arrived at 5 after the hour.)
I. M
INUTES
Commissioner Keena motioned to approve the minutes from the June2, and June 9,
2011 meetings, Commissioner Holzemseconded the motion.
Motion approved 4-0
{Commissioner Elling Schultz and Kelley arrived at 6:05.}
III.B
ILLS
Commissioner Keenamoved to pay the bills. Commissioner Alongiseconded the motion.
Motion Passed 6-0
IV.B
USINESS
Authorize Signature: Access Agreement – Hudson Manufacturing Cleanup –
A.
Dakota County
Dakota County has chosen the Hudson site for use of federal EPA investigative grant
funds. The funding will pay 100% of remaining Phase II and RAP development. The
value of the work is estimated at $56,000, and would complete all environmental site
investigative work prior to clean up. Dakota County and its environmental contractors
seek access to the building to perform the work.
CommissionerKelley motioned toAuthorize Signature of agreementand to allow
Dakota County access to perform their work. Commissioner Keenaseconded the
motions.
Motion Passed 6-0
B. Discuss Amendment to Note: Guardian Angels-Sherman Associates.
Sherman Associates proposes to amend the existing $150,000 promissory note for
improvements to the former Guardian Angels Church located at 4th & Sibley
Street. The proposal includes:
1) Amend and restate the Note to provide that payments will be made each year
on or before March 31 commencing March 31, 2012, solely from “Surplus
Cash”. Currently payments are made monthly and interest is accrued at 7%
per annum per the 3rd Amendment to the Promissory Note. The expectations
of interest accrual are not presented by Sherman.
2) Surplus Cash will consist of gross operating revenue less all operating
expenses, including a property management fee of 5%, reserves and
amortization of the cost of capital improvementsto the building over 10 years.
The extent and costs of the improvements are unknown.
3) Extend the maturity date of the Note to June 30, 2025 (15 years from last
extension).
On September 16, 2010 HEDRA authorized signature of the 4th Amendment to the
Note extending the maturity date to June 30, 2012 andrequiring payment of the
principal. The agreement was never signed by Sherman. In March 2011, a Notice
of Default was sent to Sherman.
The $150,000 note was originally issued in 2003 and has been amended several
times. The value of the note with interest is $210,752.55 as of July 31, 2011.
After discussing Sherman’s various options, the Commission declined all options and
instead Commissioner Elling Schultz motioned to havestaff to collect payment from
Sherman. Commissioner Keena seconded the motion.
Motion Approved 6 - 0
C. Mixed Use Hard Wire Alarm – Award Contract & Commit Grant Funds
On June 1st the City held a bid opening for Mixed Use Hard Wire Alarm proposals.
Respondents submitted two separate bids for the work, one for CDBG eligible projects
(27 properties) and one for projects ineligiblefor CDBG funds (3 properties).Six
responses were received with Alarm Express being the low bidder for both bids.
The Commission was asked to consider the following actions:
1) Award Contract for CDBG ineligible projects to Alarm Express for $11,205.51.
2)Commit up to $5,000 in HEDRA Mixed Use Hard Wire Alarm grant funds towards
the contract for CDBG eligible projects. Funding would be used to cover the gap
between the estimated project cost and available CDBG funding.
Commissioner Keena Motioned to approve both actions. Commissioner Holzem
Seconded the motion.
Motion Approved 6 - 0
D.Industrial Park Boulevard Landscaping
City Engineer, Nick Egger, is requestingHEDRA direction pertaining to Industrial Park
boulevard landscape gardens. The gardens were installed as part of the Industrial Park
improvements in 2009 and consist of prairie grass plantings that take up to three years
to establish. Public Works has communicated with owners onthe need to allow the
plantings to grow (many thought the plantings were weeds), and have staked out the
right-of-way lines to establishthe property boundary. Despite these efforts, some areas
have been mowed, essentially killing all of the prairie grasses andnow need to be
replanted in order to be reestablished. Options include:
1)Seek Council authorization to restore the prairie grass and bill the property owners
for this cost (Ballpark estimate is $5,000 for all affected areas).
2)Leave thedamaged areas as is, but strongly discourage any other property owners
from mowing the prairie grass.
3)Let Industrial Park property owners maintain the right of way abutting their property
as they see fit.
Following a discussion that included all of the efforts staff and council went through in
order to make this project more affordable – part of which was this option to plant
prairie grass, HEDRA commissioners strongly felt that the only option to consider was
option on, seek council’s approval to authorization to restore the prairie grasses in the
ditches where it had been mowed and assess the property owners for the respiration.
Commissioner Keena motioned to ask council to authorize the restoration of the
prairie grasses. CommissionerAlongiseconded the motion.
Motion approved 6 - 0
E. Riverfront Addition “AKA Block 1” Land Price
Greenhouse Village Senior Housing Cooperative is interested in acquiring part of
Riverfront Addition from HEDRA. The property was previously known as “Block 1” and
is bounded by Tyler Street, Mississippi River, CP Rail, and 2nd Street.Greenhouse
proposes to construct a senior housing cooperative on the site similar to their existing
project in Roseville.
(The property was previously committed to Sherman Associates as part of a 2005
Purchase Agreement to construct 28 condominium units. Sherman failed to reach
minimum presale requirements and the agreement was terminated in 2007. )
Greenhouse has inquired about the purchase price of the property. DakotaCounty has
valued the property at $7.26 per s.f. Commission is currently suggesting a price of
$8/s.f. if we get a serious enquiry we would then be willing to pay for an appraisal of
the land.
F. Red Rock Corridor Transit Area Master Plan
The final draft of the Red Rock Corridor Transit Area Master Plan has been completed
and was provided to the commission forreview and comments. Andy Gitzloff, with the
Red Rock Corridor Commissionwas present to discuss with HEDRA and answer any
questions.The plan will also be reviewed by the Planning Commission and City
Council.
G. Review 2012 Levy and Budget
A proposed outline of the 2012 budget was presented to the commissioners for review
and comments.HEDRA is scheduled to take final action on the budget and levy at the
August meeting.
H. Discuss Televising Future HEDRA Meetings
City Council, Planning Commission, and Parks and Recreation Meetings are currently
televised through local cable access. HEDRA will begin being televisedin the future.
IV.R&I
EPORTSNFORMATION
A.Marketing update
Himle Horner has completed the Audit interviews. They conducted ten of these calls in
all (which is a couple more than they initially intended to do, but gave a more rounded
view, all while staying under budget.) Currently they are in the process of finalizing the
audit report which will provide direction when writing the actual marketing plan.
A final draft of this audit report is expected from Himle Horner in Mid July. Staff will
forward it on to HEDRA for review and comments at the August meeting.
As for budget, Himle Horner has remained vigilant with our dollars and is currently a
couple thousand under and feels comfortable with what is left to be done. Their hope is
to stay under budget so that HEDRA has a little leftover once we get the plan to
actually begin implementation yet this year.
B. Hudson
Thelast production line is up and running at the new Hudson site, all production in the
old facility should be wrapping up in the next week or so. Hudson has moved much of
their inventory out of the old building. They are still seeking vacation of the building by
August.
The City has been successful in its challenge to Dakota County for 2012 tax liability.
The property has been deemed exempt for 2012 taxes. Based on payable 2011 taxes,
the City has saved over $60,000.
C.TH 61 Bridge
All work on the bridge is on hold during the state shut down.
A:
DJOURNMENT
Commissioner Keenamoved to adjourn at 7:00, Commissioner Holzemseconded.
Motion Passed6- 0
Thursday, August11, 2011
Next meeting is scheduled for at 6:00pm in the Council Chambers.
Shannon M. Rausch