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HomeMy WebLinkAboutHEDRA Minutes 07-09-2020HEDRA 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, July 9, 2020 at 6:00 p.m. via Zoom video conference. HEDRA Commissioners Present: Sullivan, Peine, Fox, Goblirsch, Sinclair, Balsanek, and Vaughan. HEDRA Commissioners Absent: None 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 seven members present. II. Minutes Motion by Commissioner Sinclair to approve the minutes from the June 11, 2020 Regular Meeting as presented. Seconded by Commissioner Fox. Roll call vote: Ayes 7; Nays 0. Motion approved. III. Bills Hinzman summarized the bills. Discussion on HEART Grant distribution. Commissioner Balsanek motioned to approve as presented, seconded by Commissioner Goblirsch. Roll call vote: Ayes 7; Nays 0. Motion approved. IV. Business A. Review Development Options - Block 1 Hinzman stated there are two proposals for development of the site. Spades SBC presented a proposal for development of an office building at the last HEDRA Meeting and staff has developed a draft preliminary development agreement for HEDRA consideration. Tonight, Rob Barse of Mint Development will provide a presentation of a letter of intent for development of housing. HEDRA is asked to provide direction on any exclusive agreements for development of the site. Mr. Barse presented an overview of his plans for development of the site. He is confident that the project can commence shortly with the offer price of the property dependent on the number of units that could be constructed. President Sullivan asked what were the main inspirations for development. Mr. Barse stated he visions a modern looking building reflecting the massing and segmentation of the historic building in downtown; similar to Artspace. It would be a higher end product marketed towards younger individuals and empty nesters. Commissioner Sinclair asked what would be the trigger for the potential commercial use of the building. Mr. Barse stated it would need to be the right use and would be a small component of the site. Commissioner Goblirsch asked about the proposed rents. Mr. Barse stated rents would be higher than what’s presently in the market. Commissioner Vaughan asked how HEDRA determined the price for the property. Does it make sense to remove the large overhead power poles from the site. Hinzman stated the price was set as part of former marketing of the site by HEDRA’s former commercial broker, CBRE. Mr. Barse stated that based on his conversations with Xcel Energy, the lines could not be buried and would need to be relocated. Fifield presented a summary of the draft preliminary development agreement between HEDRA and Spades. Commissioner Goblirsch asked about the 200 jobs anticipated by Spades, how feasible is this number and can an office building of this size fit on site. Fifield stated the 200 jobs would happen over time (maybe as long as 2028) and would all be housed in Hastings. Commissioner Sinclair stated the Spades agreement appears to involve more City Staff time and expertise to develop. Fifield stated the information requested in the preliminary development agreement was similar to what was asked of the former Panache proposal. There is more staff involvement; however, the potential impact of this substantial of a development is highly unusual. President Sullivan asked how both proposals would benefit Hastings. Fifield stated the Mint proposal appears feasible and would create needed housing. The job impact of Spades would provide a strong synergy with The Confluence and their hotel. Commissioner Balsanek stated this is a big time development that has been long awaited. Spades is a brand new company that has not been established. Could an alternative location be found for either Mint or Spades; both projects would be beneficial to the City. Commissioner Sinclair stated Spades is exciting; however, is the building footprint and 200 jobs too much for the site. Mint has done their due diligence; Spades has not, how feasible are the jobs proposed by Spades. Housing represents jobs with so many people working from home. The site appears to be a good fit for Mint, could Spades go elsewhere. There is no compelling reason for an exclusive agreement at this time; let’s review both. President Sullivan agreed that more time is needed before executing an exclusive agreement. President Sullivan asked that Commissioners submit questions to City Staff no late than 4pm on July 13th pertaining to additional information needed on both proposals. No action taken on either proposal by the Commission. B. Discuss Offer to Purchase Property - 222 Ramsey Street - Eljen The item was removed from the agenda at the request of staff and may be considered at a later meeting. C. Adopt Strategic Plan Fifield provided a brief summary stating the plan is similar to what was presented for discussion at the last meeting. Motion by Commissioner Peine, seconded by Commissioner Fox to adopt the Strategic Plan as presented. Roll call vote: Ayes 7; Nays 0. Motion approved. D. HEDRA Budget Hinzman provided a summary of the proposed 2021 budget submitted to the City Council. Items for action are consistent with the Strategic Plan. Commissioner Peine stated the potential capital for Vermillion Street redevelopment is critical. No action necessary. E. Authorize Loan Subordination - Spiral Brewery - 111 East 2nd Street Hinzman provided a summary of the proposed request to subordinate three existing loans granted by HEDRA for Spiral Brewery. Spiral seeks to purchase the building outright and the primary lenders has requested the subordination. Commissioner Fox is an owner of Spiral Brewer and recused herself from discussion and action. Commissioner Goblirsch asked if the owners would provide personal guarantees. Hinzman stated he would verify (verification was provided to Commission after the meeting). Motion by Commissioner Sinclair, seconded by Commissioner Peine to authorize the subordination as requested. Roll call vote: Ayes 6; Nays 0; Abstain (Fox). Motion approved. V. Reports and Information A. Housing Study Mr. Hinzman stated a reviewed Housing Study was included in the packet as an informational item. B. Commercial Update Mr. Hinzman summarized commercial activities included in packet. C. Development Update Mr. Hinzman summarized development activities. D. Economic Development Coordinator Mr. Hinzman stated applications for the Economic Development Coordinator vacancy are due on July 12th Mr. Hinzman and the Commission thanked Mr. Fifield for his accomplishments as Economic Development Coordinator and wished him the best in retirement. VI. Adjourn Commissioner Goblirsch motioned to adjourn the meeting at 8:03 p.m., seconded by Commissioner Vaughan. Roll call vote. Motion passed 7-0. Meeting adjourned. Next Meeting: August 13, 2020 Respectively Submitted: John Hinzman