From new housing subdivisions and a PFAS water treatment plant to downtown façade improvements and long-range growth planning, 2025 was a year of steady momentum for development in Hastings.
Community Development Director John Hinzman delivered his department’s annual report to the Hastings Economic Development and Redevelopment Authority (HEDRA) at its Feb. 12 meeting, outlining both the measurable gains of the past year and the challenges that lie ahead.
“2025 was a busy year for development,” Hinzman said, noting that the Community Development Department touches nearly every aspect of growth in the city – from planning and zoning to building inspections, economic development, historic preservation and code enforcement.
One of the headline items in the report was the approval of 42 new residential units in 2025, totaling $9.7 million in valuation. The bulk of that activity came in the form of 36 single-family homes, along with six manufactured homes.
Several major housing developments continued moving forward. At Heritage Ridge, 78 of 80 home sites have now been granted permits. Construction also continued at Vermillion Acres, a 75-unit senior housing facility offering assisted living and memory care units. The Villas at Pleasant completed permits for all 38 units in that development, while South Oaks of Hastings 4th Addition saw new single-family construction underway.
Despite those gains, Hinzman emphasized that Hastings still faces a significant housing shortfall. A Housing Needs Assessment conducted by Bowen National Research found the city has a projected five-year housing gap of 1,483 units – including 402 rental units and 1,081 for-sale units. The greatest rental housing gap is for households earning between 61% and 80% of the Area Median Household Income, while the largest for-sale gap serves households earning between 81% and 115% of AMHI.
“We can show developers that, according to the market analysis, there is a gap and a need for housing within the city,” Hinzman said, noting that the data provides leverage when courting potential projects.
Looking ahead, several major subdivisions could significantly increase housing supply. Tradition Development is proposing Pleasant Valley Farm, a 375-home development on the Conzemius property between Featherstone Road and County Road 42. Additional phases of Heritage Ridge and other subdivisions are also in the pipeline, potentially adding hundreds of units in coming years.
Commercial and industrial investment
On the commercial side, the city approved 55 commercial and industrial permits in 2025, totaling nearly $12.9 million in valuation.
Notable projects include a new 3,500-square-foot Chase Bank branch at 1720 Market Blvd., and the construction of a 16,000-square-foot Central Water Treatment Plant at 1290 North Frontage Road to address PFAS contamination. The water treatment facility represents a major infrastructure investment to safeguard the city’s drinking water supply.
Other developments included a special use permit for Pinecraft Boats at 624 Spiral Blvd., a new trucking facility for Rio Gran Trucking in the industrial park, and new facilities for United Heroes League in conjunction with 2026 Hockey Day Minnesota.
HEDRA also executed an agreement with Gaughan Companies to market more than 50 acres of shovel-ready land in the Hastings Industrial Park, an effort aimed at attracting additional employers and expanding the city’s tax base.
Downtown redevelopment and façade improvements
Redevelopment of key downtown sites remains a priority.
The Block 28 Gateway project, located along Vermillion Street between Fourth and Fifth streets, is envisioned as a mixed commercial and residential redevelopment that would serve as a welcoming entrance to Hastings from the Mississippi River bridge. In 2025, a Phase I environmental assessment and geotechnical analysis were completed, aided in part by a $55,000 Metropolitan Council grant. Approximately 90% of the block is now owned by HEDRA, with developer commitments expected to be pursued in 2026
In the meantime, smaller-scale investments are reshaping the look of downtown and the Vermillion Street corridor. Through the Façade Improvement Grant Program, nearly $24,000 was distributed to seven projects in 2025, leveraging more than $103,000 in private investment. Improvements included exterior upgrades, roof replacements and lighting enhancements.
Hinzman highlighted 2137 Vermillion Street, a formerly vacant building that is being redeveloped into Two Seeds Popcorn, as one example of how façade grants can help catalyze private reinvestment
Beyond bricks and mortar, HEDRA and city staff focused on strengthening relationships with existing businesses.
In 2025, staff conducted four formal business retention and expansion visits and 85 informal drop-in visits to local businesses. The Open to Business program continued to provide free one-on-one mentoring and gap financing for entrepreneurs.
The Music + Market series also expanded in 2025, teaming up with Concerts at the Pavilion to host 12 scheduled events between June and September. Each event featured approximately 25 vendors, with total attendance exceeding 6,500 people
“It’s not only providing space for vendors,” Hinzman said, “but also providing to citizens that there’s something going on downtown on Thursday nights during the summer.”
The department also made strides in long-range planning.
Work continued on the Highway 55 & Jacob Avenue Growth Area Plan, preparing for potential annexation and development along the city’s western boundary. A comprehensive update to the city’s zoning code – the first in nearly 30 years – is underway.
The city also approved seven permits for the sale of cannabis and low-potency hemp products and modified related ordinances in response to new state laws
On the affordable housing front, Hastings received $284,519 in Local Affordable Housing Aid (LAHA) funding in 2025, allocating those funds to Dakota County CDA programs such as home improvement loans and radon mitigation assistance
While highlighting the year’s successes, Hinzman also acknowledged ongoing challenges, including limited available lot inventory and the need to redevelop underutilized sites.
The city is examining potential redevelopment of the Red Rock Corridor parking lot and other downtown properties
At the same time, staff continue working through complex situations such as the long-vacant Hastings Creamery site, where the city is pursuing action to address a hazardous and substandard structure.
Hinzman closed his presentation by emphasizing the interconnected nature of planning, infrastructure, housing and business development.
“Ultimately, I think it’s helpful to look at what has happened in development in totality,” he said. “Certainly, other things that happen in community development have great impact upon the viability of the city.”
For HEDRA commissioners, the report underscored both the progress made in 2025 and the significant work that remains to meet housing needs, revitalize key corridors and guide Hastings’ growth in the years ahead.