HEDRA weighs downtown Block 16 redevelopment, future of industrial park

Posted 4/14/26

The Hastings Economic Development and Redevelopment Authority spent much of its Thursday, April 9 meeting looking ahead at two major city-owned properties - downtown’s Block 16 parking lot and the …

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HEDRA weighs downtown Block 16 redevelopment, future of industrial park

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The Hastings Economic Development and Redevelopment Authority spent much of its Thursday, April 9 meeting looking ahead at two major city-owned properties - downtown’s Block 16 parking lot and the long-discussed industrial park site along Spiral Boulevard.
Both discussions centered on the same question: how should Hastings position publicly owned land to best support future growth?

Block 16 eyed for redevelopment opportunity
The first major item before the authority was a discussion on establishing development parameters for Block 16, the city-owned parcel on the east end of downtown bordered by Second Street, Third Street, Tyler Street and the railroad corridor.
The 1.8-acre site currently contains a 100-space public parking lot and the small Depot Park playground. It was formerly home to grain elevators before the HRA purchased the property in 1994 and later redeveloped it as a park-and-ride lot through the Red Rock Corridor transit initiative.
Community Development staff told HEDRA that with Hastings no longer participating in the Red Rock Corridor, the city has been working to free the site for future private redevelopment.
An appraisal completed late last year placed the value of the property at approximately $1.5 million, or about $19 per square foot, staff said.
Planner Alex Menke told the board the site is significantly underused in its current form.
“The lot is currently only about 30 percent utilized,” Menke said, noting that downtown parking overall averages about 38 percent utilization outside of major festival weekends.
That prompted discussion among commissioners about whether the site could play a more valuable long-term role as a tax-producing development parcel rather than surface parking.
Commissioner Dave Pemble said the city should at least test the market.
“I think it behooves the city to open this up and say, okay, let’s see what we can shake out of the weeds,” Pemble said. “We can always say no, but we should at least allow proposals to come in.”
Several commissioners said they would like to see a project that complements downtown and takes advantage of views of the Mississippi River and Lake Isabel.
Pemble floated the idea of some type of retail use, even noting that downtown once had a full grocery store and lacks certain shopping options today.
Others supported a mixed-use concept with commercial space on the ground floor and residential units above.
“We only have so much space downtown,” one commissioner said during the discussion. “I’d rather build something that has room for future growth and expansion than something we tear down in 40 years.”
Commissioner Peggy Horsch agreed that upper-story housing with river views could make the site especially attractive.
“I think if you’re building up, that could be a nice piece of property,” she said.
While there was interest in redevelopment, board members also stressed the importance of preserving amenities currently on the site.
Depot Park, the small playground located within the block, was mentioned several times. Some members said they see families using it regularly, especially with new downtown businesses drawing more traffic.
“If we were able to salvage the park, I would really appreciate that,” one commissioner said.
Others suggested the playground equipment could be relocated elsewhere in the riverfront area if redevelopment moved forward.
Public parking was another consideration. While the lot is underused most days, commissioners acknowledged downtown events can create tighter parking demand. Staff said any future private project would likely be expected to provide its own parking depending on the use.
Trail connectivity also emerged as a priority. The bike trail connection running through the site would need to be preserved or redesigned as part of any project.
By the end of the discussion, HEDRA members gave staff general direction to market the site while seeking proposals that balance development value with parking, trail access and family-friendly amenities.
Menke said staff is preparing marketing materials for Block 16 as well as another city-owned parcel known as Block 28.

Industrial park future again debated
The second lengthy discussion focused on the city’s 74-acre industrial park property along Spiral Boulevard, which has been marketed for years with limited success.
Representatives from Gaughan Companies, the city’s listing broker, recently met with staff and submitted a market analysis concluding the site remains less attractive to large industrial users because of transportation access challenges. The property is about 15 miles from Interstate 35, requiring truck traffic to use Highway 316 and U.S. 61.
According to the report, that has made it difficult to attract large warehouse or logistics operators, while smaller flex-industrial or residential-style uses may have stronger potential.
Menke summarized the findings for HEDRA.
“This specific site is less attractive to large-scale industrial users, primarily for transit access,” he said. “A small-scale phased development approach may be more beneficial.”
That sparked a broader conversation about whether the city should continue pursuing a traditional industrial park model or consider new land uses.
Community Development Director John Hinzman urged caution.
“I want to make sure that any decision we make on this is very thoughtful and not reactive toward a potential opportunity for residential out there,” Hinzman said.
He added that industrial land remains valuable because commercial and industrial properties generally pay more in taxes than they require in city services.
Still, several members questioned whether decades of limited results indicate it may be time for a new approach.
Pemble said the city has been trying to market the property for many years with little traction.
“We’ve gone through decades,” he said. “Maybe it’s time to rethink what’s the possible place that we could put a different industrial area and use this for something else.”
Others suggested the land could be split into smaller parcels for local businesses rather than marketed as one large tract.
Hinzman said the current listing agreement with Gaughan Companies runs through July. Staff will continue marketing the site for industrial use until then, after which the authority will likely revisit long-term strategy.
Development updates
During staff reports, HEDRA also received updates on several active Hastings projects.
Staff said the Pleasant Valley Farms proposal north of 140th Street continues moving forward, with an orderly annexation agreement expected to be reviewed by Nininger Township in May. The proposed development includes 375 housing units.
At the former Hastings Cooperative Creamery site, demolition permits have been issued and cleanup work is underway.
Heritage Ridge Fourth Addition is nearing construction on its remaining lots, while Sunset Hills, a 26-lot subdivision near 15th Street and O’Connell Drive, is headed to the City Council later this month.
Staff also noted that Two Seeds Popcorn had officially opened on Vermillion Street, drawing a lighthearted close to the meeting.
“This HEDRA meeting brought to you by Two Seeds Popcorn,” one member joked before adjournment.