Costs Accumulate As Transfer Extended

The accumulating costs associated with delays in timing of the transfer of ownership of the former Hudson building was made more clear with a conversation with Hastings Community Development Director John Hinzman. Following an extensive presentation made to the Hastings City Council on December 18th that included proposed extensions in the transfer of ownership timeline, he informed the council that the City incurrs additional costs when payments come due on the bonds that funded the original purchase price for the property that stretches from the western edge of the Hastings bridge to Lock and Dam Road bordering Jaycee park. Hinzman states that the next payment of principle and interest is due on February 1st with another interest payment due August 1st. The City is obligated to pay those fees, reported to be 160,000 in principle and another 45,050 dollars for interest on the debt. Hinzman states the cost is budgeted for in 2018 and has been in the budget every year since first payments came due in 2011 for the purchase of the facility. The land currently does not generate any property taxes, but with the development, 286,736 dollars in estimated tax generation would ensue minus the TIF portion of that number which is 103,848 dollars. Hinzman also anticipates that nearly 900,000 dollars in grant funding is currently in process which would be used to address payments as well as add more to the cleanup still underway. A Met Council grant was recently denied as the application did not achieve the minimum score necessary for funding consideration. City staff intends to follow up for a further explanation of the criteria and may re-submit the grant with an amended proposal that might meet with approval. Nearly 900,000 remains in soil mitigation of the former industrial use property.

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