Work ongoing on Confluence environmental issues, large firm considers building in Hastings

By John McLoone

With the first meeting of January on tap and chairman Dennis Peine stepping away in December, the Hastings Economic Development and Redevelopment Authority Board was charged with naming one new board member and electing a new leader.

Trevor Johnson took his oath of office at the start of the meeting, and Bruce Goblirsch was elected president by the board at the HEDRA monthly session on Thursday, Jan. 13.

That said, the board got down to business and approved paying bills. Notable were payments of $235,577 and $221,411.11 for the purchases of 412 and 410 Vermillion Street, respectively, where redevelopment plans are underway.

There was also a payment of $2,107.25 for “Confluence – Environmental.”

“Would we be done seeing confluence bills ever?” asked city councilmember Mark Vaughan.

City Director of Community Development John Hinzman said it’s wrapping up but money being expended for environmental reasons means HEDRA will have to use other funds for environmental needs at other redevelopment projects underway.

Portions of The Confluence are scheduled to open this summer. The project is a renovation of the former Hudson Manufacturing site on the river into a hotel, apartment and commercial space, with a riverfront park and deck overlook.

Here’s the complete staff report from the meeting on The Confluence project: “As part of our Purchase and Development Agreement for transfer of the former Hudson Manufacturing Building to Confluence, the City and HEDRA agreed to complete environmental remediation of the site. Most of the remediation was complete prior to property transfer in 2018 and assisted through nearly $5 million in grant funding.

“Post-transfer obligations included installation of a vapor intrusion mitigation system

Photo by Bruce Karnick.

(VIMS) and sealingencapsulation (painting) of polluted wood surfaces generally within the basement and first floor of the structure.

“VIMS equipment installation is complete and pending final connection and testing with HVAC components to be installed by Confluence.

“Wood sealing and encapsulation is ongoing. Work involves scraping of the wood surfaces (ceilings and joists) to remove old paint and then applying a paint-like encapsulant as the final coat. A competitive bid process was used and Mavo Systems was awarded the contract for $400,000 in December 2019. Most of the contract cost was paid through existing environmental grants. Work was originally completed around the end of February, 2020.

“In Spring of 2021 we were made aware of flaking encapsulant in many areas of the building. In May 2021 we met on site Mavo and our environmental contractor Stantec to map areas of defect and to review performance standards of the encapsulant paint. By the end of July, test areas were rescraped and encapsulant reapplied. Test areas were let to cure and reexamined at the end of August; with positive results. Mavo remobilized in September and completed a substantial rescraping and reapplication of encapsulant in most of the first floor area around November 1st. In early December we met on site with Confluence to review first floor work which Confluence found satisfactory. In late December scraping and encapsulant work resumed in the basement and is expected to be complete by mid-January.

“The cost estimate for the additional work is around $100,000. This represents an additional 25% increase in the contract. Staff plans on transferring environmental funding dedicated to Block 1 environmental cleanup to cover costs.”

Spiral Food Co-op

The board heard from Spiral Food Co-op Manager Matt Malecha of plans for the cooperative to move next door to its current spot at 1250 S. Frontage Rd. where a liquor store had been located. The total cost of that project is $466,000, and Spiral is seeking a revolving loan request from HEDRA for $150,000.

The project would double the size of Spiral Food Co-op to more than 4,000 square feet and would result in the additional of five full time jobs in three years.

Spiral is in the process of putting together its final financing package for the project.

Malecha said Spiral Food Co-op has 1,676 members within the Hastings community and was formed in 1979.

“We are one of the longest-running groceries in town,” he said.

When Spiral moved to its current location from downtown, it actually had to downsize.

Staff has given a favorable recommendation to the loan but said a vote on the loan should wait until the cooperative has its complete financing package finalized. The expansion will allow Spiral to expand its grocery department where its pricing is very competitive with other grocery outlets. It will allow for the produce department to double in size, and there will be more space for meat and frozen foods.

“Nobody will have to fight to get around an end cap,” he said, referring to the tight quarters at the current spot. “We’ll have one organized entrance and exit.”

Said Hinzman, “We’ll continue to work with Spiral to get more information for a future meeting.

Facade improvements

Facade improvement grant program applications were approved in downtown Hastings for 215 Sibley Street and 103 2nd St. East. The grant for Radke & Mohrhauser LLC is for the Sibley Street façade improvement, which will include restoration of second floor windows and replacement of storm windows. The grant will be for $4,922.50 of the total $11,990 project.

The 2nd Street East project is for Cedartown, LLC (Farmers Insurance – Katy Lindberg) for removal and replacement of the awning at what formerly was the Town Cobbler building. The grant award was approved at $2,675 of the $5,350 project.

A face grant was also approved for Doug and Sunshine Grandahl, who own Clear Choice Pool & Spa at 1800-1806 Vermillion Street. Grandahls recently bought the property and plan to remove and replace the cedar wood shake front canopy with a steel canopy. The HEDRA grant will be for $5,000 of the $16,1000 project.

Project Steel The city is working with a confidential company that is seeking 35-40 acres of land for a new facility that would employ 39 full time workers. The staff report states that it’s “an appliance manufacturer headquartered in the Midwest with more than 1,500 employees.”

The new project would be operational by 2023 and grow to 192 employees in four years.

The firm expects to pick a site in the first quarter of this year.

213 Ramsey St.

With the Hastings School District’s planned move of its Alternative Learning Center from city-owned 213 Ramsey St., HEDRA is considering converting the building to office suites, where business owners could rent smaller spaces or work in the building for a day.

The school district is relocating the ALC within Hastings High School. The district had been renting the building for $3,000 monthly and sent its one-year notice that its vacating the premises late last year.

Photo by Bruce Karnick.

Photos courtesy of Hastings Community TV.

HEDRA is working on a proposal for a new use of the building that now houses the Hastings School District Alternative Learning Center.

At left, Trevor Johnson took the oath of office as he was seated on the HEDRA Board. At right, Spiral Food Co-Op Manager Matt Malecha talked of the cooperative’s plan to expand adjacent to its current site in Hastings.