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HomeMy WebLinkAboutHEDRA Minutes 06-11-2020HEDRA HASTINGS ECONOMIC DEVELOPMENT and REDEVELOPMENT AUTHORITY The Hastings Economic Development and Redevelopment Authority of the City of Hastings, Minnesota met in a regular meeting on Thursday, June 11, 2020 at 6:00 p.m. via Zoom video conference. HEDRA Commissioners Present: Sullivan, Peine, Fox, Goblirsch, Balsanek, and Vaughan. HEDRA Commissioners Absent: Sinclair Staff Present: Community Development Director John Hinzman Economic Development Coordinator Rusty Fifield City Administrator Dan Wietecha I. Quorum A quorum was established and the meeting was called to order by President Sullivan at 6:00 PM with six members present. II. Minutes Motion by Commissioner Vaughan to approve the minutes from the May 14, 2020 Regular Meeting as presented. Seconded by Commissioner Fox. Roll call vote: Ayes 6; Nays 0. Motion approved. III. Bills Hinzman summarized the bills. Commissioner Goblirsch motioned to approve as presented, seconded by Commissioner Fox. Roll call vote: Ayes 6; Nays 0. Motion approved. IV. Business A. Preliminary Development Agreement - Spades Fifield introduced Ray Menard, Bill Keneally, and Joy Hazucha from Spades SBC who seek to acquire a 1.5 acre HEDRA owned parcel located north of Artspace to construct an office building site for Spades SBC Ray Menard, CEO of Spades provided a summary of Spades operation which involves tree growing technology and the establishment of a special benefits corporation (SBC) to meet the demands of tree planting around the world. They are exploring the HEDRA site to house 200 employees and seek execution of a Preliminary Development Agreement to provide a period of exclusivity for potential acquisition. President Sullivan thanked Spades for their presentation and asked how planting involves private property and how they work with governments to ensure success. Mr. Menard stated they have worked with governments and indigenous peoples throughout the world. Commissioner Vaughan asked how much time Spades is looking for from the City to review the site. Mr. Menard stated 1.5 to two years. Fundraising is occurring now and will continue over the next six months. Commissioner Balsanek asked if any other locations are being considered for their site. Mr. Menard stated Hastings is their first choice; this is his hometown. The setting on the Mississippi River is also a draw. Mr. Fifield stated in all his years of economic development he has not seen something like this before, being on the ground floor of an opportunity that could have a substantial effect on the future of Hastings. Mr. Menard stated Spades is currently partnering with billion dollar companies to provide tree planting projects in four dozen nations throughout the world. Commissioner Balsanek asked about the potential for other businesses being attracted to the area due to Spades’ presence. Would a business incubator be helpful? What would be the expertise of the planned 200 employees? Mr. Menard stated he believed there would be growth in related businesses. They are primarily a tech and financial company. He agrees additional incubator space would be helpful. The presence of high speed internet on the Hastings bridge is also helpful. The Hastings location would contain highly educated executives, environmental, marketing, accounting, and tech people. Commissioner Goblirsch asked what are the goals of fundraising and development over the next six months. Mr. Menard stated fundraising for trees and start up capital for the company. Commissioner Vaughan asked if we should wait on drafting an agreement prior to hearing the other offer from Mint Development for the site. Mr. Fifield stated drafting an agreement would not take too much time, and would provide the Board a more complete proposal to consider along with Mint Development. Motion by Commissioner Peine to draft a preliminary development agreement with Spades for future consideration by HEDRA. Seconded by Commissioner Balsanek. Roll call vote. Motion approved 6-0. B. Strategic Plan for Economic Development Mr. Fifield presented an update to the Strategic Plan. Commissioner Goblirsch stated housing growth continues to be important. Commissioner Peine stated the Spades proposal will bring a different housing need to the City. Mr. Fifield stated the Downtown Property Use Study will be a helpful tool in determining future housing needs. V. Reports and Information A. Commercial Vacancy Mr. Hinzman indicated changes in vacancy B. COVID Business Flexibility Mr. Hinzman provided an update on measures taken to assist businesses including expanded use of sidewalks, use of on street parking for dining, and installation of more seating and toilets in the downtown. C. Development Update Mr. Hinzman provided the following development updates:  Epcon Development is holding a neighborhood meeting on June 11th to discuss a concept for 33 detached senior villa homes at Pleasant and Northridge  Spiral Brewery has submitted plans for roof top seating. VI. Adjourn Commissioner Vaughan motioned to adjourn the meeting at 7:29 p.m., seconded by Commissioner Goblirsch. Roll call vote. Motion passed 6-0. Next Meeting: July 9, 2020 Respectively Submitted: John Hinzman