I think the more proactive we can be, the better things will go.”

HEDRA Treasurer Peggy Horsch

The Hastings Economic Development and Redevelopment Authority is looking to get ahead of what could be a difficult couple of years for businesses along Highway 61 when the massive reconstruction project gets underway.
HEDRA members spent a significant portion of their Thursday, Aug. 13 meeting discussing how the city can help businesses prepare for construction rather than waiting until declining sales, access problems and other impacts become emergencies.
The discussion came during a review of the Open to Business program, but quickly expanded into potential training, signage, communication and financial assistance that could be offered to businesses along the corridor.
Community Development Director John Hinzman said Open to Business could become an important resource as the city develops its strategy.
“One thing I will note is, as we move forward here in trying to determine what sort of assistance would be most beneficial for Highway 61 reconstruction, I'll be looking to her as a great resource,” Hinzman said of Open to Business representative Natalie Mouilso. “Whether she's able to do things before or during, or whether she would have advice on what to do at that point.”
Open to Business reported working with five Hastings businesses and five Hastings residents during the first six months of 2026. The program also offers training and technical assistance for entrepreneurs, including workshops on small-business law, succession planning and starting a business.
The Highway 61 project will reconstruct the corridor through Hastings, including pavement, pedestrian, drainage, utility and intersection improvements. The bulk of construction is expected in 2028, with some work potentially beginning in late 2027.
HEDRA members made it clear they don't want businesses to face the disruption without help.
Councilmember Dave Pemble recalled what happened during the previous major Highway 61 reconstruction about 50 years ago, when businesses struggled with customers being able to reach them.
“I think it behooves us as the city and as HEDRA to provide some guidance and some understanding about, okay, here are the issues that are going to confront these businesses for at least the two-year period that heavy construction is going to happen,” Pemble said.
Pemble said he wasn't advocating for the city to simply reimburse businesses for every dollar of lost revenue.
“I'm not particularly interested in saying, okay, somebody calls up the city and says, ‘We're $5,000 short last week in our income because of the activity,’ and the city sits down and writes out a check for the $5,000,” he said. “No, I disagree. I think we need to have a process of trying to work with the businesses and the construction to help them work through the issues.”
One of the biggest issues will be making sure customers know businesses remain open and how to reach them.
Pemble recalled businesses during the earlier reconstruction that had parking and access from behind their buildings but didn't have an effective way to tell customers how to get there.
“They need access, and we need to come up with ways that kind of work with the businesses along Highway 61 to say, ‘Hey, this is what construction is going to be this next two-week period or a month period. Plan for access from some other direction,’” Pemble said.
Another HEDRA member described seeing a similar situation at a retail development in St. Paul, where the construction supervisor regularly visits affected businesses and keeps them informed about upcoming work.
Hinzman said MnDOT is planning something similar in Hastings.
MnDOT has already hired a marketing firm for the planning stage and intends to have someone associated with construction working directly with businesses once work begins, Hinzman said.
HEDRA also has started putting money aside for its own response.
“When we looked at our HEDRA budget for '27, we allocated funding towards assistance, not really defining what that might be,” Hinzman said. “And so we will be doing more definition of that in the coming meetings here as we close out this year.”
Hinzman said the proposed funding had survived the first round of the city's budget review and was recommended to move forward by City Administrator Dan Wietecha. HEDRA previously discussed a proposed $50,000 Highway 61 Business Assistance Grant program as part of its 2027 budget planning.
Councilmember Angie Haus pointed to the recent construction around Spiral Natural Foods Co-op as an example of how even smaller construction projects can hurt businesses.
“We can see how that has affected them,” Haus said. “They've been posting about it recently. So I think it's great to hear that we're going to have that coordinator as well.”
HEDRA Treasurer Peggy Horsch said planning ahead will be critical.
“I think the more proactive we can be, the better things will go,” Horsch said. “As construction and as things ramp up, we're going to have to do a lot of pivoting.”
She suggested looking at lessons learned during other large road projects, including Robert Street, to identify programs that worked.
“The more we can do to try to plan for some of that, I think the better off,” Horsch said. “At least people know we care, and we care about the businesses, and we want to make that impact as less as can be.”
Other ideas discussed included training sessions to help business owners understand what to expect, special directional signage and potentially grants or other assistance.
Hinzman said the city hasn't determined exactly how the money will be spent.
“Part of the funding that we've allocated here may go to that,” he said. “It may go to training. It may go to grants. It may go to a lot of different things.”
MnDOT has also created a business resource component for the Hastings Highway 61 project, including project updates and tools businesses can use to communicate construction information to customers, employees, suppliers and vendors.
Block 16 survey draws strong response
HEDRA also received its first look at public reaction to possible redevelopment of Block 16, the city-owned Depot parking lot and park area downtown.
Community Development Intern Natalie Rogus presented preliminary results from a survey that had generated nearly 900 responses by the time of the meeting.
The 1.81-acre Block 16 property includes a 100-stall parking lot and Depot Park. It is bounded by Second Street East, Tyler Street, Third Street East and the railroad.
Rogus said the large response was encouraging.
The presentation was prepared when 832 responses had been received, although Rogus told HEDRA the total was approaching 900. The survey is voluntary and is intended to gather community opinions rather than constitute a statistically representative sample.
The early results show substantial resistance to redevelopment.
Forty-five percent of respondents said they would not support potentially redeveloping Block 16. Another 32 percent were unsure, while 23 percent supported potential redevelopment.
Parking was by far the largest concern among respondents who opposed redevelopment or were unsure. Thirty-six percent identified loss of parking as a concern, followed by loss of open space at 18 percent and a desire to leave the property as it is at 17 percent.
Parking is also the property's primary current use. Forty-eight percent of respondents reported using Block 16 for parking, while 16 percent use Depot Park and 16 percent use the Mississippi River Trail connection. Twenty percent said they don't currently use the property.
If redevelopment does eventually occur, Rogus said destination entertainment and restaurants or cafés were among the most popular options. Housing received considerably less enthusiasm, with Rogus saying open-ended comments showed concern about adding more apartments and taller buildings downtown. The survey presentation likewise identified destination entertainment and restaurants/cafés as the leading redevelopment preferences.
The survey work will continue with outreach at Music + Market events and potentially interviews with downtown business owners. A more detailed report is scheduled to return to HEDRA at its Sept. 10 meeting.
Industrial park property sold
HEDRA also approved a purchase agreement for approximately 1.15 acres in the Hastings Industrial Park for $91,022.
The purchaser plans to construct an approximately 4,500-square-foot auto repair facility. Hinzman said the city's standard industrial park price is $2.15 per square foot, but the purchase price was reduced by approximately $17,800 because soil analysis determined that organic material will need to be removed to reach suitable building soil.
The purchaser currently operates an auto repair facility nearby and intends to sell that property and relocate the business to the new building.
The agreement runs through June 30, 2027, and the project will still require site plan and special use permit approvals through the Planning Commission and City Council.
HEDRA also approved two grants through its Façade Improvement Program.
A grant of up to $5,000 was approved for 221 Sibley St. for replacement of rear deck stairs, a landing and handrails. The eligible project cost is slightly more than $17,000.
A second grant was approved for 312 Second St. E., where Spiral Yoga is located. The $7,000 project will paint the upper portion of the building to match the lower portion. Following the two approvals, approximately $25,000 remains in HEDRA's façade grant account for 2026.
Block 28 environmental work
HEDRA also received an update on environmental testing at Block 28, the Hastings Gateway redevelopment property.
A Phase II environmental site assessment identified petroleum impacts in portions of the soil along with benzene soil vapor concentrations above regulatory standards. Consultant GZA is preparing a remediation action plan identifying how those conditions can be addressed.
An asbestos abatement plan is also being prepared for materials identified in buildings on the property.
City staff said some environmental work could occur as part of demolition, while soil and vapor issues may be handled in connection with the eventual sale and redevelopment of the site. Staff will also investigate grants and other programs that could help cover remediation and demolition costs.
Development activity continues
Hinzman closed with several development updates, including movement on the long-discussed Walden at Hastings residential development.
The city has received a formal application for a project containing 143 lots — approximately 119 single-family lots and 24 twin-home lots. Hinzman said the current proposal has about 50 fewer units than the concept presented to neighbors last November.
The application is still being completed, with a Planning Commission public hearing tentatively anticipated in October or November.
Hinzman also reported completion of the conversion of the former convent at 321 E. Sixth St. into a 10-unit apartment building. He called the project an example of the type of historic-building reuse the city encouraged when it previously amended its zoning regulations to allow greater residential density for qualifying conversions.
Construction also continues on the new Chase Bank building, while development work continues on Pleasant Valley Farms.
The Aug. 13 agenda included the property sale, two façade grants, Open to Business report, Block 16, Block 28 and general development updates. HEDRA's next regular meeting is scheduled for Sept. 10.