The Hastings Economic Development and Redevelopment Authority (HEDRA) spent much of its June 11 meeting looking ahead, discussing budget priorities for 2027, strategies to support businesses during the upcoming Highway 61 reconstruction project, and gathering public input on the future of a key downtown redevelopment site.
Community Development Director John Hinzman presented preliminary budget priorities for 2027, emphasizing the need to prepare for disruptions that could accompany the Highway 61 reconstruction project scheduled to begin in late 2027. HEDRA reviewed a proposal that would create a new Highway 61 Business Assistance Grant program funded at $50,000. The program would provide assistance to businesses impacted by construction-related interruptions.
To help fund the initiative, Hinzman proposed reducing the city's long-running façade improvement grant program from $50,000 to $25,000. The façade program has historically provided matching grants of $1,000 to $5,000 for exterior building improvements in downtown Hastings and along Vermillion Street. According to budget figures presented to HEDRA, only about $15,000 in façade grants have been committed so far this year.
Several commissioners voiced support for prioritizing business assistance ahead of the highway project.
Commissioners noted that during the last major reconstruction of Highway 61 in the 1970s, numerous Vermillion Street businesses struggled or closed because customers could not easily access them. Members said proactive assistance could help prevent similar hardships when construction begins.
The commission ultimately approved a motion making the remaining façade grant funds flexible so they could also be used for Highway 61 business assistance if needed.
Hinzman also proposed reestablishing HEDRA's revolving loan fund program, allocating $150,000 from the agency's fund balance. The loans would provide gap financing for commercial and residential projects when traditional financing and owner equity do not fully cover project costs. The revolving loan program has been largely inactive in recent years due to lower reserve balances but could return now that HEDRA's fund balance has recovered to approximately $800,000.

Public Engagement Begins for Block 16
One of the evening's most significant discussions centered on Block 16, the city-owned parking lot located adjacent to Depot Park and the Mississippi River Regional Trail. Community Development Intern Natalie Rogus unveiled a comprehensive public engagement strategy designed to gather community feedback before any redevelopment concepts are created.
The site currently functions primarily as a 100-stall parking lot, although utilization studies have shown it is significantly underused outside of major events. The property has been identified as a potential redevelopment opportunity because of its location on the eastern edge of downtown and proximity to several recent housing developments.
The engagement plan includes three primary components: a community survey, interviews with downtown business owners and residents, and outreach at the weekly Music and Market events. The survey will ask residents how they currently use the site, whether they support redevelopment, and what types of future uses they would like to see, ranging from housing and retail to public gathering spaces and trail amenities.
Commissioners praised the outreach strategy and encouraged broad participation. Rogus said survey responses would help establish a baseline understanding of community sentiment and guide future redevelopment discussions. HEDRA expects to receive preliminary feedback later this summer.

Industrial Park Marketing Contract to Expire
HEDRA also received an update on marketing efforts for the city's industrial park. Economic Development Coordinator Alex Menke reported that the city's brokerage agreement with Gaughan Companies will expire July 1 and staff is recommending that it not be renewed. Instead, the city plans to reevaluate the site's long-term development potential before determining future marketing strategies.
Commissioners generally supported taking a fresh look at possible future uses for the property before committing to additional marketing efforts.

Environmental Work Continues at Hastings Gateway Site
Menke also provided an update on environmental work underway at the Hastings Gateway redevelopment area, also known as Block 28. Both rounds of vapor sampling have been completed, and soil borings were conducted during the week of June 8. Consultants are expected to use the results to prepare environmental response plans and asbestos abatement recommendations for the remaining structures on the site.
Staff indicated discussions with potential developers are largely on hold until environmental reviews are completed and the city has a clearer understanding of site preparation requirements.
The Block 28 redevelopment remains one of HEDRA's highest-priority projects. Strategic plan updates presented at the meeting indicate staff hopes to begin soliciting development proposals later in 2026 following completion of environmental work and additional property assembly efforts.

Development Activity Continues Across Hastings
Hinzman and Menke also provided updates on several major development projects throughout the city.
The proposed Odin's Garden indoor cannabis cultivation facility remains under review after the Planning Commission requested additional third-party odor analysis. The application will return to the commission once that information is received.
Construction continues on the new Chase Bank building in the Cub Foods parking lot, while infrastructure work has begun for the final phase of Heritage Ridge, adding 36 residential lots.
Meanwhile, the Pleasant Valley Farms development continues moving through the approval process. The proposed project would bring approximately 400 single-family homes and townhomes to land between Featherstone Road and County Road 42 while extending General Sieben Drive westward. City officials are currently reviewing traffic and environmental studies associated with the development.
Hinzman also reported that demolition of the former Hastings Cooperative Creamery site appears on track to meet the City Council's June 15 deadline. Once final cleanup requirements are satisfied, the property could be marketed for future redevelopment opportunities.
The next regular HEDRA meeting is scheduled for July 9.