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HEDRA February 12 2026

Hastings Public SchoolsFriday, February 13, 2026
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sub uh submit a completed W9 tax form uh at the application. Uh this is a we require this on the back end. So if someone does receive a grant, we they need to submit that tax form anyway and it can just delay the process. So having that up front is nice if they do win uh win the grant. We have that ready to go and can issue their funding when they're ready. Uh one of the I'd say larger uh changes on here would be changing the reimbursement submission window. Currently it is they have 6 months within within 6 months of when they receive approval they have to submit for reimbursement. Construction projects can change pretty quickly or if someone applies for it in the winter uh 6 months can go pretty quick. Uh so uh staff is recommending we change to one year to just accommodate for some project delays and uh also changing the one-time staff approved extension from two months to three months. This just gives a little bit more of a a window here and then don't have to come back to uh the commission to allow for an extension on on some of those things. But, um, I'm happy to stand for any questions, make any other changes. Um, yeah, >> I I'll just, um, address the case by case with the parking lots and the roofs. I think it'd be nice to have some guidelines. I don't recall seeing that. just some not written, you know, not detailed guidelines, but I think something just telling folks this is what we're looking for, what you kind of what you told us tonight. >> Uh I think that would be helpful for people. It' be a little bit more than I know it when I see it kind of standard. >> So, um that would be my only suggestion. Make it broad enough so you do have that discretion within there, but I think that maybe needs to be tweaked maybe a little bit. >> Okay. >> Yeah. I I was thinking something similar maybe some stipulation that it's front facing and visible from the street. >> Good point. Yeah. >> Okay. >> Anything that we need to vote on? >> So, it would be uh seeking just an approval of those changes and uh could be, you know, a approval of these changes with the addendum of um those those tweaks on uh especially around roofing or parking. Um >> I'll move I'll move for approval um with the stipulation of the discussion we had tonight here. >> So just to just to clarify that that would be roofing and parking in areas that are front facing and visible to the street. >> Right. And I I would give staff a little discretion if you think that there's you know a few other things that might be helpful to folks when they're blind. >> Okay. >> Any further discussion on this? Okay. All those in favor say I. >> I. >> Oppose. No. Okay. Uh eyes carry. Motion adopted. All right. >> Yes. >> Yeah. So, uh, the Red Rock parking lot, uh, we've had a number of discussions on this and, uh, as just as a bit of a refresher, when the city built this 100 unit parking lot, they received funding, uh, to construct it from uh, the metropolitan council and that funding came from the state from state bonding. So, as a requirement uh for receiving that funding, we uh had a 40-year ground lease signed where Hedra is the landlord, Met Council is the tenant to ensure that the parking lot remained uh for that term. We receive 0 annually for this lease, but this was just how it was. Uh as we have continued exploring the steps to make block 16, the Red Rock corridor, uh the Red Rock parking lot eligible for redevelopment. Uh it was determined that Metropolitan Council uh would need to terminate their lease interest in the site and they were very amendable to that. they uh with the knowledge that the Red Rock corridor uh bus line is not likely to come down here anytime soon uh they didn't see the need to have the 40-year ground lease. So, uh staff is requesting signature on a lease termination document uh with Met Council. They'll be signing it and then it's just uh removing one barrier to development on the site. This does not mean it's getting developed right now. It's just it means that we have just a full full control of the site. Then there's no Met Council interest once we sign that and have that lease terminated. Um it is still going to remain a public parking lot for the time being. Um it just yeah puts the entire ownership interest on on Pedro right now. But um yeah, looking for um an authorized the signature of the termination of the ground lease, but I'm happy to stand for any questions. Okay. >> So any repayment would not be due until we actually did some sort of development work. Is that true? >> Yes. So the any the the funds that we would have to repay to the state would be contingent on sale of the property. So this does not trigger any any of that. >> I'd like to make a motion to approve it. >> Second. Any further discussion on this? Okay. All those in favor say I. I. >> All those opposed? No. All right. Motion carries. Adopted. Cool. >> All right. So, uh, on January 20th, uh, we received confirmation that the, uh, taxbased revitalization, uh, account grant that we applied for late last year was, um, for the continued environmental investigation work on block 28 was approved, uh, which is great news. This is a reimbursement grant for a maximum amount of $55,000. uh $55,300 to pay for that continued environmental work on the property, which includes a phase 2 environmental site assessment. Uh writing a remediation action plan if one is needed and writing uh an asbestous abatement plan along with all of the uh drilling and uh soils testing needed for that phase two. The uh signed grant agreement is required before work can begin. Once signed, it'll be sent to the Met Council. Uh, and after all the eyes have been dotted and te's have been crossed, we can begin work with the consultant GZA Geo Environmental who did the phase one of the environmentals. So, we are seeking uh authorization for the signature of that grant agreement. And I'm happy to stand for any questions. >> What's the total bill on that? >> I would have to refer to that. We're on the we are looking at we might have to cover around $2,000 if it hits that full. It was pretty pretty slim. Yeah. The nice thing with this is the funds we spent on the phase one which was covered by the Dakota County uh grant we received counted as matching funds for this one. So the TBR grant looks for up to a 25% match. the county helped cover on that for the initial phase of this. So our personal financial exposure on this is very slim. >> Is so this is phase two. Is there future phases that need to get done or would this kind of complete the environmental >> from the environmental investigation side? If there are outside of the asbestous abatement plan, since we do know that uh portions of the property have asbestous, it would be if anything from the phase 2 is found to need remediated, that's what that remediation action plan is. So that would define those next steps. But if there's nothing greater found from the phase 2, there wouldn't be uh much left from the environmental outside of the the abating any asbestous. >> Thank you. >> Yeah. So what this essentially does is establishes more certainty as to what's present on the site and what needs to be abated. Not abating anything at this point. So we'll know at the end of this we'll have a response action plan which will which will stipulate what we need to do and we can have a cost estimate of what that will cost and hopefully if there is things we need to do those other grants that we can apply for. >> Thank you. >> And Alex, what's the timeline on that? Do we have anything right now when the we predict the phase 2 assessment will be completed? >> I'd have to reach out for uh to GZA on what it's all contingent on when Met Council says that we're good to go. It shouldn't take this would be my first phase two that I'd have work on. So I'd look to John on uh average time on this, but I know it can vary depending on the the size of the site. Shouldn't be too long though. I would say a matter of months that this should be completed on that one. Get the information into MPCA and get that certainly by by the year end hopefully by more towards the end of summer. >> So for that we just need to sign. We don't need to vote on this on the grant agreement or >> vote on to authorize it. Okay. So, can I get a >> um >> second? >> All right. Any any questions or further discussion? Okay. All those in favor say I. >> I oppose. No. >> Okay. The eyes got it. Motion adopted. >> All right. Reports and information. >> Yeah. Uh so uh for a a quick update on the industrial park uh marketing, John and I met with uh one of the representatives from gone in January to discuss that possible interest of using a portion of the the site for residential development. We after discussing not closed off to the idea at all but would like to create a more of a master plan for the entire site instead of doing kind of a patchwork approach on that just to make sure that it is a thoughtful development whether it's all industrial all residential a mix of all of those things just to be uh intentional and explore what the market conditions are and what that appetite would be. So, right now, Gone is in the process of sending us some examples of master plans that they have worked on in the past uh to uh see if they would be the ones that would be doing the master plan, if that would be something we'd be looking to do with uh another group. And then uh we're continuing to meet with uh Gone on any other leads they might have for us. >> Add a little bit more to that, too. The idea of residential development in this property came up at the last meeting and and frankly we were not uh we did not expect that to come up during the public meeting during the discussion of that. This would be a big change out there. I I'm not uh opposed to looking at that change, but I I don't want to be construed that we're making a change to residential or something else out there. reality is we've had an industrial park out there that we've been marketing for a long period of time has not gone uh as quickly as we would like. Uh so should we look at other possibilities and we'll do that very deliberately. So I just wanted to to emphasize that point my two cents again. But um I yeah I I like that approach, you know, just kind of maybe pulling back a little bit on that just to see where we're at. But um so if there is a proposal, does it come back to us to look at you know what kind of residential proposal are we looking at as far as density and as far as you know types of building structures there? Where where does that where would that practically go? Does that go to the planning commission? I'm not >> Yeah. >> our ownership of the property. I I think there would need to be some investigation on, you know, what could be the market for these different items, what could be the demand, and then ultimately what would be the desire from Hedrickk and the council on making changes to this. So, I think we need to provide some more background information before we make decisions on that. >> I'm I'm glad it's coming back here in some some way or another before it gets out on a public face on this is what we're doing. Thank you. Right. Any other questions or comments? >> Right. We can go to B 2025 community development annual report. >> Well, thank you commissioners. Before you I have the annual report for the community development department for the last year. I highlighted in there some areas that involve hedra involve planning commission and some of the other departments were involved in. Ultimately, I think it's helpful to look at what happened in development totality. I know with Hedra, we're involved in economic development, but certainly other things that happen in community development have great impact upon uh the viability of the city. So, little recap of what community development is. We've got city planning, economic development, which you know of, historic preservation, building inspection, code enforcement, and then arts and culture. So we're involved in basically anything that is built within the city comes across our desks in one way or the other. So some of the planning commission things that we were involved in last year. I think everyone's aware that PAS and the treatment that we need to fix with our water treatment facilities has been a large issue over the last couple of years. Broken ground in the first treatment plant last year. We're going to be preparing for the next treatment plant this year and then one more the year after that. We did have a approval for Chase Bank over on Market Boulevard by Cub to build a branch over there. We've been working with them on the building permit side of it. So hopefully that'll be starting soon. And then we completed work on our Highway 55 and Jacob Avenue growth plan. Really taking a look at areas that are outside of our city right now and how those would develop and how what we might want to see there. So spent a lot of time to deliberately plan what we would see in future development and annexation. So, it was good to get those ideas in there and to have some uh some more meat that we can look at in the future. Had a special use permit for uh Pinecraft Boats to operate in a portion of 624 Spiral Boulevard. Cannabis ordinance. Cannabis permitting took up a lot of our time last year. As you know, we've have those coming forward and then we're under the zoning code review at at present. This year, as we move forward, we're going to be taking this more out to the public. We've done a lot of work behind the scenes in testing how new zoning code rules would affect development and we're ready to bring that out to the public here in the near future. Some of the buildings around town that our building department's been involved in this apartment rehabilitation at 320 street. Uh really happy to see that one going. We approved that one about four years ago. In the past, we had had uh proposals in that building for treatment facilities and other uses that were not amendable to the neighborhood. We were proactive in that one in recognizing that when you have a large building like this, the uh ability to reuse that is limited under our current zoning. So, we changed it. So, if you have a historic building that's larger, you can have more residential units. Therefore, having a treatment center to be a financial viability is not the only option there. So, glad to see that happening. One another one I'm glad to see happening is the 315 Pine Street, Thorwood. The fire took place there a long time ago around the third owner of the building. Frankly, I never thought that that building would see reconstruction. I thought that was just a lost cause. The individual there has proven me wrong and I'm glad he has. continues to move forward on that one and uh just great to see the work out there for millionacre senior that's a long project too this is an updated picture from last year so we uh I I don't have an opening date for that but that that continues on there so from a permit standpoint last year we did about 36 single family homes 42 units alto together which was similar to what we did last year commercial permits were down a a little and the number and the valuation what we've done but not out of the realm of what we've seen in the last few years either for our building permits. Our valuation was down a little bit as well as the permit total in that one. Uh code enforcement actions were up in there. So looking at what we have available right now within the report, we had a a page or two on the amount of inventory we have for housing. Our housing lot inventory right now is is getting depleted. However, when we look on the horizon here, we've got a couple of large projects that could bring uh more units in, which would be great to see. So, for Hedra, we worked on block 28, the gateway project last year. We secured the grant thanks to Alex here for the uh phase 2 environmental on that one. As we spoke at the last meeting, we're going to be putting into motion trying to find a developer, sign a a purchase develop a preliminary development agreement for that property to really get that going as we move forward to this year, which will be great. We've been working with Gan Companies on the industrial park marketing there. See how that goes in the future here. Their contract extends to July 1st. At the beginning of last year, we did have the housing needs assessment report, which was really interesting to get the information there, finding that we had a housing unit gap of almost 1500 units over the last five over the next five years. 400 rental units, 1,000 forale rental units on that one or for sale units. So be able to show individuals that come forward for potential development that according to our market analysis or Bowen's market analysis, there is a gap in a need for housing within the city. Our facade improvement program continues. We had 24,000 distributed to seven projects last year that leveraged another $103,000 in new investment. You know, one example down here is 2137 Vermillion Street, the before and after. Looking forward to Two Seeds Popcorn opening up soon. And then our music and market expanded the operation down there, doubled the amount of uh events that we were at, paired them directly with the concert series that was down there. We had over 65 individuals attend those event. I think the key point about that is not only providing a space for vendors that are there, but also providing to the citizens that there's something going on on Thursday nights downtown during the summer so that people can just wander down there. They don't have to plan for it. I think that's great. and we'll continue that work on as we move into next year. Have the open to business program continuing on as well. So, we will uh continue to promote that. That's been good for the businesses and and good for our entrepreneurs over the last 10 or more years that we've been offering that. Another key aspect too is uh the business retention and dropins. Alex does a great job at just getting around town. He provided over 80 business dropin visits which are just come to the door, how you doing, just chatting to see what's going on. And then we were involved in four business retention expansion visits which were the more formalized visits where we sit down and ask specific questions. But really it is important for us to get out there and to to uh be present with the business community. Arts and culture continued their work this year as well. uh the mural on there was a big item for them. And so we had a strong year this year. We look into next year and we this or this year I guess it is now. We have a couple of projects residential wise that could be coming forward. Talked a little bit during the next update on Pleasant Valley Farms which is an annexation of about 160 acres which could yield 375 homes. that uh is going to be moving forward this year through the reviews. If everything goes well, grading could take place later this year into next year. Homes constructed by the uh by the end of 27 in that one. And then we've got another subdivision that uh just dropped in for another 26 units. We've got another phase of Heritage Ridge for another 40 units. So, our lot supply is coming up. Beyond that, we've had good interest from people that have been just knocking on uh on doors on potential development and around town and what's available. So hopefully some of those initial inquiries will lead to further development. So that's what we got for this year and I could stand for any questions. >> Thank you. I know I said this the other night at council too, John, but I really appreciate you and Alex's hard work on this. Um, one of my favorite events is always the music and markets, and I love that you guys have partnered with the parks on that as well this year. Um, I'm gonna ask again, just because it's been a little later. Any date for Two Seeds Popcorn yet to open? >> Nope. I I do not know that yet. No, >> I figured I'd ask, but thank you. >> Thank you. >> Thank you. And if I didn't mention it earlier, I just want to say congratulations on that grant on the $55,000 grant. That's great. So, >> okay. So, next, >> development updates. >> Development updates. I mentioned the first one uh in the last segment, Pleasant Valley Farms. So, what's happening for review is I'm going to park board with that in a couple of weeks. We went to development review committee last week just to get uh kick the tires on on how the development layout would work and they're going to be coming in with an annexation application and environmental assessment worksheet in the near future on that one. So we'll be seeing a little bit more of that generally with the subdivision itself. It would be if you take where the ex general seen drive ends at Featherstone Road right now. General Seban Drive would continue all the way to the north to County Road 42 at Lock Boulevard and then it would develop on either side of it. They're proposing a park in their trail system. Uh do a quality job. They uh develop ranching farms in Cobblestone Lake in Lakeville and Apple Valley. Uh, and they put sidewalks, trails, community amenities. They'll have a HOA clubhouse in there. It'll it'll be a nice development as it goes forward. So, looking forward to seeing more of that. With Hastings Crearyy, there's going to be action by the city council asked on Tuesday to declare the the building uh declare a timeline for demolition of the building. We have worked with them as you all know for the last two and a half years to try to seek a remediation of the site. The site remains as it is today and we asked them to develop or and submit to us a time frame by last Friday. They develop they submitted some information but not the information we were seeking specifically a timeline for development and specific action steps. So, we're taking that forward with the help of the city attorney on Tuesday. What this would mean is we would we would declare the building hazardous and substandard need to be demolished and have a timeline of demolition by June 15th. Uh if they do not meet the June 15th deadline, there's other action steps that could take place to compel demolition and potentially have the city involved in demolishing that building. So those would be decisions that would be made down the road on that, but this would certainly set the time frame for that. So that'll be a good step. Hopefully there'll be pressure beyond us uh on the the private market with uh people that uh are looking to be repaid from insurance settlements and other things that'll compel the development of this thing to move forward. So we have that heritage ridge. I mentioned before Sunset Hills edition. This is a 26 unit subdivision located north of 15th Street near Seas in the Sunset West neighborhood. We got the application in for that. So, we're going to be reviewing that over the next month or so. And I haven't heard anything really new on Walden at this point. They did tell me within the next couple months that they expected to have the land use applications in for review. So, we'll see what happens there. We did approve a climate controlled storage special use permit down near Coburn's. This would be about a 15,000 square foot new building that could be constructed in the parking lot north of the strip mall where uh Stacy Stars is. They'd have to come back with building plans on that, but it provides them the opportunity to do that. So, those are some of the the new information action items that I have and could stand for any questions. I forgot to I was going to mentally add up the housing units if everything went through. What are we talking about? How many housing units and all the new subdivisions that we got proposed? >> 6700. I imagine >> that's that'll take a dent in our thousand you know the the what was it 1500 units 1400 units if everything goes through. So >> we'll see what happens. >> All right. Would we ever consider uh you know some cities have to get more home buyers into their city's down payment assistant grants? Is that something that we would ever think about offering in Hastings? >> Yeah, I potentially I usually anything we have that's uh housing related, we have the CDA take the lead on that one. They they've got the the staff to do that and I with our LAA money they do have some assistance they provide for that I believe. Okay, it's good to know. >> Do we have anything else? Any other questions? Right. So, can I get a motion to adjurnn? >> Yes. >> Okay. All those in favor say I. >> Oppos? No. Okay. The eyes got it and the meeting is adjourned.