HEDRA hits on new development, cannabis facility proposal

Posted 5/20/26

The Hastings Economic Development and Redevelopment Authority received updates on downtown redevelopment planning, industrial marketing efforts and several major development projects around the city …

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HEDRA hits on new development, cannabis facility proposal

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The Hastings Economic Development and Redevelopment Authority received updates on downtown redevelopment planning, industrial marketing efforts and several major development projects around the city during its monthly meeting Thursday, May 14, at Hastings City Hall.
Among the actions taken during the meeting, the authority approved a facade improvement grant for work on a downtown historic building while also discussing future plans for redevelopment of the former Red Rock Corridor parking lot site and receiving updates on projects ranging from cannabis cultivation to the demolition of the former Hastings Cooperative Creamery.
The authority unanimously approved a facade improvement grant application for 117 Second Street East submitted by building owner Beth Warner. According to Community Development Director Alex Menke, the request involves removal and replacement of a rubber roof on the historic downtown structure.
“The owner, Beth Warner, is applying for some funding assistance for the removal and replacement of their rubber roof,” Menke said. “One of the historic buildings — that’s a precedent that we’ve set over since the inception of the facade improvement program.”
Menke said the total eligible project costs are slightly more than $18,000. Under the city’s facade improvement program guidelines, the grant award is capped at one-third of the project cost or $5,000, whichever is less. Commissioners noted the authority remains well within its budget for the program before unanimously approving the request.
The authority also received an update on marketing efforts for the Spiral Boulevard industrial project. Menke said the city’s consultant, Gaughan Companies, has not brought forward any major prospects for the property during the past month.
“They cite that engagement has been slowed down considerably over the past few weeks,” Menke said. “Citing just a lot of the issues we know about the site specifically — transit access, things like that — and then things slowing down generally with the broader economy.”
Menke said the authority will likely discuss future marketing strategies for the site during its June meeting, including what the “next phases” of promoting the property may look like moving forward.
Another significant discussion focused on redevelopment possibilities for Block 16, commonly referred to during the meeting as the Red Rock Corridor parking lot site. Menke said staff plans to begin a public engagement process to gather feedback from residents and business owners about what they would like to see developed on the property.
“We are proposing a preliminary community engagement process to understand what both business owners and residents … might like to see on that site,” Menke said.
The engagement effort will include in-person conversations, a dedicated page on the city website where residents can submit comments and mailed surveys to nearby property owners.
Authority member Angie Haus praised the outreach effort and encouraged staff to take advantage of summer downtown events to gather additional public feedback.
“I love the idea of using some of the events that we already have currently downtown to utilize that to get some more information from our residents on what they want to see in that area,” Haus said.
Menke said staff expects to provide a preliminary report on the feedback process during the authority’s June meeting, while engagement efforts are expected to continue throughout the summer months.
The authority also received an update on environmental work underway at the Hastings Gateway redevelopment site. Menke said phase two environmental site assessment work continues, including soil vapor sampling and soil borings.
He noted that initial testing identified elevated benzene levels in two samples collected at the site, meaning future development could require installation of an active vapor mitigation system.
“This would be similar to a radon system,” Menke explained. “They functionally operate the same way.”
Menke added that grant funding opportunities exist to help offset the cost of environmental mitigation work tied to redevelopment.
A lengthy development update from City Administrator John Hinzman covered several projects currently underway across Hastings.
One of the most discussed topics involved a proposed indoor cannabis cultivation facility planned for an existing industrial building near the northeast corner of Enterprise Avenue and 31st Street.
Hinzman said the Hastings Planning Commission recently tabled the proposal to gather additional information after a public hearing drew questions from residents.
“Primarily, the questions have been related to the odors that would be generated from the facility in growing of cannabis,” Hinzman said.
He said city officials are seeking more specific information about odor mitigation systems before moving forward.
“What people are looking for is a little more specificity as to what would be going on with the vapor mitigation there, or the odor mitigation there, and to ensure that we’re not dealing with a potential problem after it opens up,” Hinzman said.
Other concerns raised by residents include water usage and traffic impacts.
Haus noted the city already has odor-related ordinances in place and said Hastings has equipment available to measure odor complaints if necessary.
Hinzman also updated the authority on the city’s PFAS treatment efforts, noting that the Eastern Water Treatment Plant project recently received final approvals and construction contracts.
“We will have the second of third water treatment plants under construction,” Hinzman said.
Construction is also progressing on the new Chase Bank branch being built near the Cub Foods parking lot.
Elsewhere, Hinzman said the city continues moving forward with annexation discussions related to the proposed Pleasant Valley Farms development. He said the city planned to meet with Nininger Township officials regarding an orderly annexation agreement involving approximately 160 acres.
While formal development approvals remain months away, Hinzman said environmental review work is currently underway and likely will continue through the summer.
“Things are moving along there, and it looks good,” he said.
Hinzman also reported that demolition work continues at the former Hastings Cooperative Creamery property, where crews recently uncovered an underground storage tank that had not previously been identified.
“That’s the only real hiccup we’ve seen at this point,” Hinzman said.
Despite the discovery, he said city officials remain optimistic the cleanup work will meet the June 15 completion deadline established by the Hastings City Council.
“It’s great to see,” Hinzman said of the demolition progress.
He added that several parties have already expressed preliminary interest in potential redevelopment opportunities at the site, though no formal plans have yet been submitted.
The authority also briefly discussed the city’s marketing contract with Gaughan Companies for industrial development efforts. Hinzman noted the contract expires June 30 and is expected to return for discussion at the authority’s next meeting.