By John McLoone

The Hastings Economic Development and Redevelopment Authority tackled projects that will change the downtown landscape at its meeting Thursday.

HEDRA forwarded resolutions in support of a new Tax Incremental Financing District that will allow for development of an 89-unit apartment building on the former UBC site at 4th and Bailey Streets. The city council will take up formation of what’s termed TIF 9 at its Feb. 22 meeting, following a public hearing. Under the TIF tool, tax money generated from future improvements in the district help pay for financing the development.

The market rate apartment complex would include studio and one and two-bedroom units. Developer of the apartments is the Stencil Group, which has been working with the city on the project since last summer. Nate Stencil of the Stencil Group told HEDRA last summer that plans would be for a fourstory apartment building on the site.

HEDRA spent most of its meeting discussing a different downtown development, though. Mint Development’s Rob Barse has proposed to build apartments and a seasonal restaurant-type business on 1.49 acres on what is known as “Block 1,” north of

Photo by Bruce Karnick.

the Artspace.

“The proposal consisted of an apartment building with 27 units and a shipping container concept space for a seasonal bar/restaurant or similar use adjacent to the riverfront,” a memo to HEDRA members from city staff states.

City staff proposed that the parcel instead be held for redevelopment along with the wastewater treatment plant across the railroad tracks that will be open when the new treatment plant is built. Also, the Redrock Corridor parking lot could be included in a larger development plan.

However, HEDRA members directed city staff to give Barse the opportunity to present a workable plan for the 1.49 acre site within the next few months. Barse has proposed a purchase price in the range of $135,00 and $205,000, depending on how many apartments could be built. City staff presented comparable site values, including one on the river in Winona, that indicated the value was closer to $470,000.

“How do you determine the price of land for this property?” asked Community Development Director John Hinzman. “It’s certainly a unique site. It’s on the riverfront. It’s near downtown. It’s an area where a lot of development is occurring.”

Staff memo states: “The wastewater treatment site (3.8 acres) and Redrock Corridor Parking Lot (1.75 acres) abut Block 1. HEDRA has the opportunity to look at development of the entire eastern edge of downtown from a holistic manner rather than a piecemeal, site by site approach.”

HEDRA members questioned the value presented by staff, giving the proximity of the site to railroad tracks and the fact that only half the property is developable.

Said City Councilmember Mark Vaughan, “I’m all about vision, and I like big picture stuff, but I think this property has so many obstacles. It’s got a railroad track next to it.”

“Mint Development should at least be doing numbers,” said Vaughan.

Following discussion, city staff was directed to work with Barse to see if he can put together a development package for the site.

Commissioner Scott Sinclair pleaded the case to give Mint the opportunity to offer a plan for the one parcel now, rather than waiting further for other parcels to be included.

“Here’s a developer that has invested what appears to be time and hard money and has done due diligence who has a proven track record of success in Hastings,” Sinclair said. “I look at this and say it’s worth acting on…I would argue that we can enter into a purchase and development agreement tied into a timeline and still leave ourselves options.”