Downtown Hastings has enough parking overall, but the spaces people most want to use can become crowded during busy periods and special events, according to a parking study presented to the Hastings Economic Development and Redevelopment Authority Thursday, Sept. 10.
The findings became part of a broader HEDRA discussion about the future of the Block 16 parking lot near the east end of downtown, where public concern about losing convenient parking remains a significant obstacle to potential redevelopment.
Community Development Intern Natalie Rogus told HEDRA that downtown has 1,549 parking spaces spread across 69 lots. During typical conditions, an average of 36% of those spaces were occupied, indicating that the downtown area has substantial unused capacity. Of the total, 1,003 spaces are available to the public and 546 are private.
That capacity, however, is not distributed evenly.
Parking demand is heaviest near the riverfront, downtown businesses and along Sibley Street toward City Hall. Several lots on the edges of the study area, including those near the Hastings Fire Department, recorded very little use.
“There is adequate overall parking capacity,” Rogus said. “That doesn’t mean that every lot has the same utilization.”
Rogus conducted 22 parking surveys from June through August, primarily during weekday business hours. The study also included weekend observations, an evening count and surveys during Music and Market events.
Typical weekday use ranged from 34% during the morning to 36% during the afternoon. Weekend utilization averaged 40%, while the average jumped to 58% during special events. More than 18 lots were at least 76% full during events, compared with only one lot under ordinary conditions.
Rogus said the data helps explain why residents and visitors may believe downtown parking is scarce despite the overall number of vacant spaces.
“Parking can feel limited when there’s concentrated demand,” she said.
A parking space several blocks from a person’s destination may not be viewed the same as a space immediately outside a business or event. Visibility also plays a role, Rogus said, because visitors may not know that some lots, the parking garage and on-street spaces are available and free.
HEDRA members discussed improving parking signs, maps, social media communication and other ways to direct visitors toward less-used lots.
Commissioner Angie Haus suggested involving the city’s communications director in explaining where public parking is available.
“I think we could also try to loop her into this as well,” Haus said. “Maybe social media of some sort.”
Community Development Director John Hinzman said the city may be able to better publicize larger parking areas, including spaces near the fire station, Block 16 and behind the Hastings River Lofts.
Hinzman said the city conducts parking studies regularly because downtown conditions continue to change as new housing, businesses and attractions open.
“There’s generally a public perception that parking is not prevalent,” Hinzman said. “Generally, it’s because it’s not as convenient as one would like. But we have adequate parking.”
He added that downtown Hastings compares favorably with similar communities because public parking is free and most destinations are within a relatively short walking distance.
Some commissioners questioned whether the citywide average gives an overly optimistic view by including lots that are distant from the busiest portion of downtown.
One commissioner suggested recalculating utilization without the seldom-used spaces near the fire station. Haus also asked what the percentage would be if the approximately 100 spaces at Block 16 were removed.
Those calculations could help HEDRA better understand what parking conditions would look like if public land is redeveloped.
Block 16 opinions divided
Rogus also presented the final results of the Block 16 Red Rock Corridor Parking Lot survey, which generated nearly 900 responses.
The city sought public feedback because HEDRA is considering whether the parking lot and adjoining park could eventually be redeveloped. The site was once occupied by grain elevators and was acquired by HEDRA’s predecessor in the 1980s for potential redevelopment.
The current parking lot was constructed around 2010 when the Red Rock Corridor transit project was expected to extend to Hastings. With that transit project no longer anticipated in the near future, the city has begun reconsidering the property’s long-term use.
Approximately 30% of survey respondents said they use Block 16 weekly or daily. Most use it for parking, although the site also provides access to the riverfront trail and park.
Forty-five percent said they were not interested in redevelopment, while 32% were unsure and 23% expressed interest. The meeting materials characterized the combined unsure and interested groups as 55% of respondents.
Parking loss was the most common concern among people opposed to or uncertain about redevelopment. Other concerns included the loss of open space, traffic, noise and the possibility that another high-density housing project would create even more parking demand.
Rogus said many respondents appeared to assume that redevelopment would mean apartments or another residential building.
“They see it being lost to the housing, and then all of a sudden, where are all those people going to park?” she said. “They’re going to park on the side streets.”
Among those open to redevelopment, the most popular options included restaurants, cafes, destination entertainment and family-friendly activities. Respondents also emphasized preserving the historic character of downtown and creating something that would attract visitors to the riverfront without making Hastings feel unfamiliar.
Some saw redevelopment as a way to increase downtown tourism and support existing businesses. Others said the city should retain the parking lot, improve the park or make smaller improvements rather than pursue a large development.
Rogus recommended additional conversations with downtown businesses, residents of Lake Isabel Flats and Hastings River Lofts, and other people who live closest to the property.
Haus said she was not yet comfortable advancing a full redevelopment effort without more input.
“It doesn’t make me feel very confident going into full redevelopment, just knowing how much we don’t know from the business owners,” Haus said.
Commissioner Peggy Horsch said Block 16 should not be considered in isolation. She linked its future to other HEDRA-owned land along the riverfront and said the city should take a more comprehensive look at how the east side of downtown should develop.
“I always think about the block we also own by the river,” Horsch said. “In my mind, those are hand in hand as we go forward.”
Rogus similarly suggested that the city could develop a broader plan for the east end of downtown rather than focus exclusively on the parking lot.
HRA levy approved
HEDRA approved its proposed 2027 Housing and Redevelopment Authority levy at the maximum rate allowed under state law, .0185% of taxable market value.
The levy is expected to generate approximately $579,146, an increase of $30,242 from 2026. The money will be used for projects and goals identified in HEDRA’s strategic plan.
Hinzman said the proposed HEDRA budget includes $75,000 to help businesses affected by the Highway 61 reconstruction project. HEDRA will determine the specific form and eligibility requirements for that assistance later.
The budget also restores funding for business loan programs and includes $150,000 related to possible environmental remediation and demolition work at Block 28, also known as the Hastings Gateway property.
Horsch asked for clarification on that amount, noting that the property’s regular maintenance expenses have been comparatively small.
Hinzman said HEDRA receives approximately $1,500 per month from an ATM lease at the site, along with several thousand dollars annually from a billboard lease. That income currently exceeds routine property maintenance expenses.
The $150,000, he said, is intended for environmental work and preparations for redevelopment rather than ordinary maintenance.
Block 28 environmental work advances
HEDRA has received a completed Phase II environmental site assessment, response action plan, construction contingency plan and asbestos abatement plans for Block 28.
The property includes 400-420 Vermillion St. and 114 Fifth St. W. GZA GeoEnvironmental completed the investigation as part of HEDRA’s preparations for eventual redevelopment. The study examined soil, groundwater and soil vapor associated with the property’s long history of commercial and industrial uses.
Economic Development Coordinator Alex Menke said the results did not reveal anything that would prevent redevelopment.
“There was nothing that was in there that was such a red flag that they’re like, ‘We’ve got to get this handled right now,’” Menke said. “It seems part and parcel for other contamination that’s seen in sites like these.”
The property has contained buildings dating from the late 1800s through the mid-20th century. Former uses included automotive repair businesses and gas stations, and some existing buildings contain asbestos that must be removed before demolition.
Menke said GZA would manage future remediation and demolition work. HEDRA will seek competitive bids when it is ready to proceed, but staff is not requesting prices now because construction quotes generally remain valid for only 30 to 60 days.
State and Metropolitan Council grants could cover as much as 75% of eligible contamination cleanup costs, leaving HEDRA responsible for the remainder. Demolition costs generally would not qualify for that assistance.
Grant applications are more competitive when a developer and a defined project are already in place, Menke said.
HEDRA therefore may wait until it has a prospective buyer and an approved development concept before beginning the cleanup. Demolishing the buildings too early could also start a three-year deadline associated with the creation of a tax increment financing district.
Hinzman said the $150,000 allocation provides a reasonable starting point, although environmental projects can produce unexpected costs.
“I feel good about that number going into next year,” he said.
Highway 61 planning continues
Hinzman said Highway 61 reconstruction will remain a regular HEDRA agenda item as the city prepares for the project.
A visual quality committee that includes HEDRA representatives is reviewing landscaping and aesthetic features for the corridor. The Hastings Area Chamber of Commerce and Minnesota Department of Transportation will also hold an “Open for Business” meeting Sept. 29 to discuss construction staging, business impacts and possible funding programs.
MnDOT was scheduled to present more detailed plans to the City Council at an Oct. 5 workshop. A municipal consent public hearing was planned for Oct. 19, although Hinzman said the council was not expected to vote that night.
HEDRA is scheduled to discuss the parameters of its $75,000 business assistance program at its Nov. 12 meeting.
Development updates
Hinzman reported that Pleasant Valley Farms continues moving through the city review process. About 25 people attended a neighborhood meeting, and most comments were generally supportive, although neighboring property owners raised questions about potential impacts.
The proposed development covers approximately 160 acres between Featherstone Road and County Road 42 and could include about 400 single-family and townhome lots. The project would also extend General Sieben Drive from Featherstone Road to County Road 42.
City officials hope to complete land-use approvals by the end of 2026, with property transfer and construction beginning in 2027.
Hinzman also said the former Hastings Cooperative Creamery and Polka Dot Dairy properties will be offered through an online auction beginning Oct. 29 and closing Nov. 5.
The sites will be offered as two separate tracts, but bidders may purchase them individually or together. Hinzman said city staff has provided the auctioneer with zoning, land-use and development information and encouraged prospective buyers to contact the city.
Chase Bank was nearing completion in the Cub Foods parking lot, Hinzman said.
He also announced that the Dakota County Community Development Agency was preparing plans for approximately 40 townhomes on the former KDWA radio tower property southeast of 31st Street and Highway 316. A neighborhood meeting was scheduled for Oct. 7.