Influx of apartments should mean a vibrant local labor force

By John McLoone

With plenty of housing being developed in coming years in Hastings, the city is poised to have a workforce to fit the needs of growing businesses.

The Hastings Economic Development and Redevelopment Authority met Thursday night at city hall and gave its stamp of approval to financing plans for an 89-unit development on the former UBC lumber operation that has been available for redevelopment for decades.

Nathan Stencil of NJS Development received City of Hastings approval last week for his development plan, which utilizes Tax Incremental Financing through the city. HEDRA gave the go-ahead for the TIF note in the amount of $1,913,693 to NJS Development and its principal Nathan Stencil. Under the TIF plan, taxes on improvements to the site will be used to pay back the TIF note, plus 5 percent interest.

Under the proposal, the minimum market value of the complex Stencil is building has to be $17,800,000 on Jan. 2, 2024, and every year until the TIF agreement is satisfied.

Mint Development

HEDRA also approved allowing Mint Development six months to negotiate the purchase of what it terms “Lot 1,” located north of Hastings Artspace.

At last month’s HEDRA meeting, the panel directed staff to give Mint Development’s Rob Barse an opportunity to negotiate for purchase of the lot. Barse has preliminary plans to put apartments on the site, as well as the possibility for restaurant space.

“We’re comfortable with the six months,” Barse said. “We can definitely work within the constraint of six months and hopefully come to a mutually- agreeable price for the site.”

City Community Development Director John Hinzman said, “We really need to have an idea on both sides as to what the project would be and what the valuation would be.”

The site is bordered on the east by the railroad tracks.

Industrial discussion

A lengthy discussion led by City Economic Development Coordinator Eric Maass was held on the future of development in the industrial park.

Maass was looking for feedback on HEDRA member thoughts on future development in the park.

“What sort of calls do you want us to prioritize?” Maass asked. “We want to make sure we’re being good stewards of the industrial land we do have now.”

Following is an excerpt of a staff memo to HEDRA members on the matter.

“The City of Hastings Business Park consists of approximately 67 parcels excluding the parcels that create the 55-acre shovel ready development site.

“HEDRA has played an integral role in the development of the business park to date. Provided below is a summary of the land sales that HEDRA has been party to and the projects that have taken place dating back to 2002.

“HEDRA has utilized a business subsidy program “Land For A Dollar” as a means to attract development. The program allows for a business to close on HEDRA property for $1.00 per acre with the remaining established value ($1.54/sf) being placed as a deferred assessment on the property. The deferred assessment is then reduced based on a construction credit (10% of building valuation) and jobs credit ($4,500 per job equivalent). For most projects the construction credit and jobs credit have resulted in the deferred assessment being eliminated entirely.

“The building sites currently under HEDRA control are reducing in both quantity and variety. Other than the large 55-acre shovel ready development site, HEDRA controls eight industrial properties ranging in size from 1.0 acres to 3.1 acres. The City will need to identify a location to expand the existing business park, or the location of a new business park. Either scenario could, and would likely require a substantial investment by the City in both initial acquisition as well as the extension of utilities and roads to service the park.”

HEDRA and City councilmember Mark Vaughan suggested targeting businesses that would help existing business in the park thrive.

“We’re up against everybody. Everybody wants more business,” said Vaughan. “I think we should look at our current inventory that’s out there today and ask them and incentivize them. What business would help them…Make them all thrive together.”

“We need to take care of our people that have committed to being out there. We need to what we can do to help them. You feed off of each other. I think it would be unique,” said Vaughan.

He said that would help create the kind of jobs that would feed off the influx of new apartment housing as well.

“The more that we can create a job that says, ‘I want to live here.’ That’s the kind of job I’m looking to create,” said Vaughan.

HEDRA Vice President Scott Sinclair said the city should target small and growing businesses.

“My gut is bet on small business,” he said. “I’d be inclined to build a strategy around small to midsize incubation, and market the city as ‘Hastings is the place for businesses to start.’” Councilmember Lori Braucks agreed.

“I really saw during COVID the strength of small business. They want to reinvest in the community,” she said.

Said Commission President Bruce Goblirsch, “One thing that’s encouraging is we’re starting to see these apartment buildings. That’s important that we have growth happening.”

Hinzman summed up HEDRA sentiments.

“What I’m hearing tonight is that opportunities that we can present here for the growth of small business is important,” he said.

Westview Mall visit

Staff met with owners of the Westview Mall on plans for that complex.

It was reported that two new restaurants, Roosters (chicken) and Caprese (pizza) are being planned. Roosters should open by June and Caprese plans to open by the end of the year.

Mall owners approached Aldi about the space that had housed Sterling Drug, but the company said they aren’t interested at this time.

Photo courtesy of Hastings Community TV.

Photo courtesy of Hastings Community TV.

Rob Barse of Mint Development addressed HEDRA at its meeting Thursday.