The Hastings Economic Development and Redevelopment Authority (HEDRA) approved its 2026 levy at 0.0185%, the maximum amount allowed for the body which is expected to raise $550,000 for HEDRA at their Thursday, Sept. 11 meeting.
Changes in the 2026 budget include ending the $120,000 Revolving Loan Fund which was designed to fill the gap between private financing and owner equity for commercial and residential uses.
HEDRA had also requested $65,000 for the creation of a downtown master plan which would guide future development in the area, which was not recommended for approval. HEDRA is expected to request these funds again in 2027.

Block 16 parking lot
In the continued effort to revamp the parking lot located at the northeast corner of Tyler Street and Third Street East in Block 16, HEDRA has authorized an appraisal for the site.
The parking lot was built in 2012 in cooperation with the Metropolitan Council as a stop for the Red Rock Corridor, which was then expected to make a stop in Hastings at some point in the future.
That stop is no longer planned, even in longer-term goals for the corridor which has left commissioners and city staff wondering what else could be done with the site beyond a parking lot.
Based on the terms of the parking lot’s initial construction, if the site were changed any time in 40 years, the city would be on the hook for the fair market cost of the site up to $20,000, which is the amount of funds the city received for construction of the site.
HEDRA unanimously approved a $5,200 contract from TaTonka Real Estate Advisors for an appraisal of the site.
The final appraisal is expected in October.
The Block 16 parking lot is one of two majors projects from HEDRA’s Strategic Plan. The other is the Gateway Project, or the development of a mixed-use retail and residential site on Block 28 at the southwest corner of Fourth Street and Highway 61.
HEDRA is “really focusing our activities on Block 28 and 16 as we move forward in the next year or two,” said Community Development Director John Hinzman.
Over the past few years, the HEDRA has been purchasing property on Block 28 and now owns the entirety of the block except for Spiral Pizza. The city owns enough of the block to move forward with developers but is meeting regularly with the owners of Spiral Pizza in order to cooperate with them on future construction.
“It might be a situation where they are part of the new development, it might be a situation where there is something in the close proximity they would relocate to. Nothing concrete on that,” said Hinzman.
The key issue with the project is the delay in the improvements to Highway 61 from the Minnesota Department of Transportation. As of April of this year, the project was pushed back from 2027 to 2028.
Construction on Block 28 was meant to be paired with the construction on Highway 61.
Even this date was met with skepticism from the commissioners.
“The state finances are not the best right now and unless there are some big changes in the legislature, I really don’t see the upcoming legislative session making much big endeavors,” said City Councilor Dave Pemble.
“I have no faith,” said Commissioner Margaret Horsch in the 2028 timeline.
Despite the longer time frame and uncertainty about construction actually taking place in 2028, Hinzman recommended finalizing a contract with a developer for the site in 2026 “regardless of what’s going on with the Highway 61 project.”

Other projects
While HEDRA’s focus is mainly on the Gateway Project and Block 16, it has a number of other economic development projects around town.
They include discussions with the ownership of Westview Mall for conversions about the mall’s parking lot, which is notably larger than the parking needs of the area.
Hinzman also discussed the lack of movement at the Hastings Creamery site, now more than two years after the business’s closure and Sept. 13, 2023 fire at the site.
While there continued to be “nothing tangible to report,” for the site, including with the state’s investigation on the cause of the fire, the city is attempting to exert more pressure on creamery ownership as well as “investigating what we may do on our own, which is a determination of that site being a hazardous property and taking the steps of going in there and doing some demolition cleanup in there and assessing it back to the owner,” said Hinzman.

Façade Improvement Program
HEDRA also approved a $5,000 façade improvement grant for Two Seed Popcorn, a business based out of Apple Valley that recently purchased the property and is expected to move to Hastings.
The business is seeking a total rebuild of the building’s façade.
“It’s a new business looking to spruce up a tired building on Vermillion,” said Economic Development Coordinator Alex Menke.