HEDRA seeks $500,000 to continue purchasing buildings in 400 block of Vermillon

Hinzman talks when the Confluence will be ready to open

 The answer I have is really, really soon. I haven’t heard anything specifically from the group. It seems within the coming weeks we’ll see that open. The apartments are complete. The hotel rooms are complete. They’re finishing up some public spaces. It’s really, really close.”

Community Development Director John Hinzman

The Hastings Economic Development and Redevelopment Authority is seeking a $500,000 allocation from the 2024 city budget to continue purchasing property in what’s referred to as block 28. That includes buildings in the 400 block of Vermillion Street from EDS Dental (the former Wells Fargo Bank location) to Spiral Pizza.

In the last couple years, HEDRA has bought other properties on the block and is slating them for redevelopment. The building that houses Dick’s Barber Shop, 418 Vermillion St., was purchased this year and leased back to the former owner, Twelve Thirteen Properties, LLC, for two years.

Community Development Director John Hinzman told HEDRA Board members at the monthly meeting Thursday night that recent purchases made on the block have been from HEDRA fund balance, but there’s not enough funds for future purchases.

“We’ve been able to acquire four properties over the last few years,” Hinzman said. “Our ability to use the fund balance for future acquisitions is not there. We’re asking for allocation directly from the city for $500,000 this year.”

Hinzman said that two properties HEDRA would like to purchase are the EDS Dental Services and Spiral Pizza sites.

“We have not made specific overtures to either of those properties in the last few months. Both property owners are aware it is our desire to purchase and to redevelop those properties,” said Hinzman.

Hinzman said that HEDRA receives about $450,000 from a redevelopment levy and the rest of its funding comes from the city budget.

“HEDRA is a little bit of an unusual creature. We have some allocation that comes directly from the City of Hastings budget, and we also have our own allocation from a HRA levy,” he said.

Other items from the proposed HEDRA budget include:

• $120,000 in revolving loan funds, which provide developers with gap financing. The funds are repaid with interest.
• $100,000 for environmental remediation of downtown redevelopment sites, mainly the 1.5 acres north of the Artspace building and the block behind Graphic Design. Hinzman said that amount would be the HEDRA share of an environmental mediation grant if a development plan comes forward for the property.
• $50,000 to continue the façade improvement program. Owners of buildings downtown and along Vermillion Street can receive $1,000-$5,000 with the building owner matching 2:1. For example, the building owner would put $10,000 into a $15,000 project, with HEDRA providing a $5,000 grant.
• $50,000 for future industrial park planning as there are few available lots in the current city industrial park, with the exception of the 50-acre site reserved for a large project.
• 25,000 to contract with a consultant to study how business owners can better utilize the rear of buildings facing the 2^nd Street alley.
• $20,000 for a study and set up of a business incubator building to help new business start-ups. HEDRA has $15,000 on hand for that project, which was a grant from the Doffing Fund.
• $10,000 for marketing Hastings development sites.
• $7,500 for a summer intern. The expense is shared between the city Economic Development and Planning departments.

The Confluence

Hinzman expects word very soon on the opening of The Confluence Hotel and Apartments.

“The question I get is ‘When is The Confluence going to open?’

 The answer I have is really, really soon. I haven’t heard anything specifically from the group. It seems within the coming weeks we’ll see that open,” said Hinzman. “The apartments are complete. The hotel rooms are complete. They’re finishing up some public spaces. It’s really, really close.”