The future of the former Hastings Creamery property moved a step closer to redevelopment during the March 12 meeting of the Hastings Economic Development and Redevelopment Authority (HEDRA), where commissioners approved a resolution declaring the damaged facility structurally substandard.
The action is a key procedural step that could allow the city to establish a Tax Increment Financing (TIF) district on the property in the future if redevelopment occurs.
Community Development Director John Hinzman told commissioners the designation was necessary to preserve redevelopment options as the long-vacant property moves toward demolition.
“With the Hastings Creamery, we are looking at taking action tonight to preserve our ability to potentially create a TIF district in the future,” Hinzman said during the meeting.
The Hastings City Council previously ordered the demolition and removal of the building at 1701 Vermillion Street. Under that order, the property owner has until June 15 to remove the structure or the city could step in and demolish it and assess the cost to the owner.
Hinzman said the HEDRA resolution is separate from that demolition order and does not change the timeline or obligations already in place.
“This does not take any action to say we are going to establish a TIF district,” Hinzman said. “But we need to be able to preserve the ability to consider that in the future prior to any application for demolition.”
The designation allows the city to consider creating a redevelopment TIF district on the site for up to four years after the building is removed.
Tax increment financing is a tool cities use to support redevelopment by capturing a portion of the increased property tax value created by a new development and using it to help finance project costs.
Hinzman emphasized the designation does not commit the city to creating such a district.
“It’s simply a declaration that this building is eligible prior to knockdown,” he said. “Then we can make a determination on any TIF that we would be doing in the future.”
Commissioners asked several questions about how the resolution relates to the pending demolition order.
Commissioner Peggy Horsch asked whether the city expects the property owner to follow through with demolition.
“Do we know at this point whether the city is going to be moving forward with the demolition, or are we still waiting on the property owner to do that?” Horsch asked.
Hinzman said the city is still giving the owner the opportunity to complete the work.
“The property owner has until June 15 to complete demolition,” he said. “After that date, the city may take action to do that.”
Hinzman said he understands the property owner has executed a contract with a demolition company and hopes the building will come down before that deadline.
“Best case scenario, they move forward in a timely basis and do it,” he said. “If not, the council has reserved the ability to take action.”
Commissioners also clarified that the resolution does not relieve the property owner of any responsibility related to the demolition order.
“This has no additional requirements or alleviations of the owners from what the city council has already put in place?” one commissioner asked.
“That’s correct,” Hinzman replied. “The only thing we’re doing is making a declaration that this would be eligible for a TIF district in the future.”

Industrial park marketing update
Commissioners also received an update on marketing efforts for the city’s industrial park from Gaughan Companies.
City staff reported the firm is preparing updated marketing materials and conceptual renderings for the business park.
Two new brochures are being developed—one general marketing brochure and another tailored toward cannabis cultivation and manufacturing businesses, which have shown growing interest in the property.
Commissioner Peggy Horsch asked about potential odor concerns related to cannabis cultivation.
“I just know going by marijuana fields, they stink,” Horsch said. “Do we anticipate if we went that direction there would be odor problems?”
Hinzman said the city’s cannabis ordinance already addresses that possibility.
“We identified any growing operations as having the potential for odors,” he said. “So we have certain regulations in place for that, but we can look at additional conditions if something like that were proposed.”

Development activity continues
The meeting also included updates on several development projects around the city.
One of the largest is the proposed Pleasant Valley Farms development north of Hastings High School. The concept plan calls for roughly 375 housing units, primarily single-family homes with some townhomes.
Hinzman said the project is still in early stages and will require annexation into the city as well as environmental review because of its size.
“If things go well on this one, get their entitlements through this spring and summer, get going on some construction of infrastructure later on this year, maybe we see some homes next year,” Hinzman said.
Commissioner Dave Pemble asked whether the city’s utilities have the capacity to serve the development.
“Are our utilities squared away so water and sewer are manageable as that expands?” Pemble asked.
Hinzman said the development would be served by a different trunk line than areas where capacity concerns had previously been raised.
“This one has the capacity to meet the development,” he said.

Other business
In other action, HEDRA approved two façade improvement grants for local businesses.
One grant will assist with brick repair and tuckpointing at 218 Second Street East, while the second will help fund new metal awnings at 1800 Vermillion Street.
Both grants are part of the city’s façade improvement program, which provides financial assistance for visible exterior improvements to commercial properties.
The authority also approved environmental assessment work related to the Block 28 redevelopment area and authorized a lease amendment related to Spiral Pizza.
Following its regular agenda, HEDRA entered a closed session to discuss the potential asking price for city-owned property within Block 28.
HEDRA’s next regular meeting is scheduled for April 9.