On Thursday, Oct. 10, Hastings Economic Development and Redevelopment Authority (HEDRA) approved the Dakota County Community Development Agency (CDA) to administer the funds Hastings received for Local Affordable Housing Aid. These funds, which stem from the new sales tax from the 2023 Housing Finance and Policy Omnibus bill, will be used by the CDA for two projects: the Home Improvement Loan Program, and the Radon Mitigation Grant Program.
The two projects were discussed at the July 22, 2024 meeting between CDA officials, the Hastings City Council and HEDRA, where cities across the county were asked for a three-year commitment to the CDA’s projects. Since that meeting, a majority of Dakota County towns have expressed interest in letting the CDA administer these funds into the two proposed projects, according to Economic Development Coordinator Alex Menke at the Oct. 10 meeting.
The Home Improvement Loan Program is 0% interest, deferred payment loans for homeowners in order to “maintain the safety and integrity of existing homes, to remove architectural barriers in homes to allow independent living for handicapped, and to reduce lead-based paint hazards,” according to the CDA. Loans would range from $15,000-$35,000 and are due only when the homeowner no longer occupies the property, or sells or refinances.
The Radon Mitigation Grant Program is designed to test for Radon within homes and install Radon systems if necessary. Minnesota homes are uniquely susceptible to high levels of Radon, with 2 in 5 Minnesota houses tested having radon levels that are a major health risk, according to the Minnesota Department of Health. Inhaling the colorless, odorless gas damages the lining of the lungs and can eventually cause lung cancer. Radon is the leading cause of lung cancer in the United States outside of smoking.
At the Oct. 10 meeting, commissioners discussed the possibility of Hastings’ funds not being fully spent in the three-year commitment and thus being rolled back over into the “Minnesota Housing Finance Agency for statewide housing needs,” according to the resolution. The City of Hastings has already received half of the expected $114,387.44 from the new tax in the first of two installments. The first of which was received on June 20, 2024 and the second is set to be received on Dec. 26.
Menke spoke to the already large demand for these projects, but that even in the event that these funds aren’t all used by the end of the three-year commitment, that they could be moved into an affordable housing trust fund so that the funds stay within the Hastings community. This trust fund is “not the desired initial use. The state would rather see those dollars be activated sooner, but that is a backup if we do hit a point where not enough of that money is being spent,” said Menke.
Another concern raised at the meeting was if in working with the CDA, that the funds intended for the Hastings community would be blended with the funds from other municipalities and potentially used outside of Hastings. This issue was addressed at both meetings, with Menke and Community Development Director John Hinzman speaking at the Oct. 10 meeting about how Hastings’ funds would be stored in a separate account from other cities, allowing the CDA to administer similar funds and therefore would exclusively be used within the Hastings community.
The resolution passed with a vote of 7-0.
Also discussed at the meeting was a resolution to authorize exclusive land sale negotiation with River City Properties for the property at 317 Third Street East, referred to on the city’s website as the Tyler Street Landing Apartments. This long-delayed project is meant to be a 32-unit apartment complex which, according to the city’s website, was expected to be completed in the summer of 2024.
The resolution was to provide River City Properties and its proprietor Luke Siewert, “one year exclusive rights to the property which means we would not be able to sell or negotiate sale of that property until Oct. 31 of 2025,” said Hinzman.
Several commissioners expressed their discontent with Siewert and the delays to this property.
“I feel like this property has been tied up for four years and have a hard time committing another year again […] I don’t see what the city gets out of this by waiting,” said Vice President Ben Anderson. President Trevor Johnson echoed the sentiment saying, “I would probably feel better if we had a handful of specific milestones that were tangible,” referencing the sharing of received quotes, or bank statements etc.
Hinzman defended the resolution by saying, “I would feel different if this property could be developed on its own,” referencing that no other entities had come forward to develop it but conceded that “milestones have not been terribly helpful so far in prodding this project forward.”
The motion failed 3-3 with Carter, Horsch, and Fox voting in favor of the motion.
“No action will be taken and we will continue to work with Luke and perhaps he can come back with some more information for a project agreement,” said Hinzman.
