Monday, March 12, 2018

SOLD! City Transfers Ownership of Historic Riverfront Property

The City of Hastings, together with the Hastings Economic Development and Redevelopment Authority (HEDRA), has officially transferred ownership of the former Hudson Manufacturing Building, located at 200 West Second Street, to Confluence Development. Confluence Development is planning an historic renovation of the 100,000 square foot industrial riverfront property that will house a 67 room hotel, 22 apartments, and 20,000 square feet of retail and event space. The area between the Hudson Building and the Mississippi River will be transformed into a park, extending the City's Riverfront Renaissance improvements further west along the Hastings RiverWalk and providing a welcoming gateway into historic downtown Hastings. 

In addition, Confluence Development has purchased the former First National Bank Building located at 119 West 2ndStreet and will demolish the existing building for construction of an approximately 119-stall parking ramp open to the public. 

Per the purchase and development agreement, Confluence must submit building plans by August 1, 2018, with construction to commence within 30 days after issuance of a building permit. The development must be substantially completed by December 15, 2019. 

"We are excited that the transfer of the Hudson property to the Confluence Development group is complete," says Hastings Mayor, Paul Hicks. "This project will be an exciting addition to Hastings and our Riverfront. Creating a vibrant center of economic renewal while preserving a piece of our past is a win-win for everyone in Hastings. I want to compliment the Confluence group, HEDRA, and the City Council for embracing a bold vision for this property. We look forward to the next steps of development."

Confluence Development

Confluence Development is comprised of local Hastings businessman and long-time resident, Pat Regan, and Louisville-based developer Bill Weyland of Weyland Ventures.

Regan is the owner of Hastings Bus Company, Minnesota Coaches, and affiliated school bus and motor coach companies. He developed Schoolhouse Square in Hastings and is an active real estate investor and developer. Regan is also Chairman of Premier Bank Minnesota and Premier Bank Rochester.

Weyland Ventures is based in Louisville, Kentucky, and has extensive experience in rehabilitating historic structures, including the creation of mixed-use developments in former manufacturing facilities. Weyland Ventures has been instrumental in devising a complex financing strategy Confluence Development will implement in this project and is one of the only development firms in the Midwest with this type of financing experience. 

History of the Project

The original Hudson Manufacturing Building was constructed in 1914.  Hudson Manufacturing produced handheld sprayers at the site from 1914 until 2011. The City and HEDRA purchased the building in December of 2010 and have been working with Confluence Development since December of 2013.

Extensive environmental remediation of the site and building were necessary, including demolition of non-historic building additions and removal of contaminated soil and interior building contaminants. The City and HEDRA have received 19 grants totaling $4.6 million to assist in environmental cleanup and site development. The project would not be possible without the continued support of the following organizations:

o   Metropolitan Council Livable Communities Demonstration Account - $2.5 million

o   Dakota County Community Development Agency - $1 million

o   US Environmental Protection Agency - $600,000

o   Minnesota Department of Employment and Economic Development - $256,000

o   Metropolitan Council Tax Base Revitalization Account - $221,000

o   Dakota County Environmental Resources - $73,000

Preserving Historic Hastings

Development of the site addresses the last industrial property along the Mississippi River, completing a 30-year transformation of the Hastings riverfront into parkland and open space. The development fulfills the objectives set forth in the 2011 Hudson Reuse Study by preserving Hastings' history through renovation of the historic factory building.

"Preservation of the Hudson building was not the quickest or easiest way to develop the property. The length of time involved in environmental cleanup and finding a developer willing to take on a project of this complexity was a challenge," says John Hinzman, Community Development Director for the City of Hastings. "But this is Historic Hastings; we find incredible value in taking on challenging preservation projects that are vital to showcasing and celebrating our history." 

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