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Hastings staff proposes trimming facade grants to seed Highway 61 business-assistance fund; commission approves flexible reallocation
Summary
City staff proposed cutting the facade improvement grant from $50,000 to $25,000 to help fund a new $50,000 Highway 61 business-assistance program; the commission voted to make the 2027 facade allocation flexible so funds can be used for Highway 61 assistance.
City staff presented a draft 2027 budget that would reduce the facade improvement grant from $50,000 to $25,000 and direct the savings toward a newly proposed $50,000 Highway 61 business-assistance program intended to help businesses affected by upcoming Highway 61 construction.
"So, my proposal for '27 is to cut that back from 50,000 to 25 with the remaining savings on that, allocate that towards a new program that we'd be establishing for Highway 61 business assistance grants," the staff presenter said during the meeting. The presenter also reported the city’s fund balance has improved to about $800,000, which could support re-establishing a revolving loan fund for gap financing.
Commissioners pressed for specifics on the proposed assistance, including maximum awards per business and the basis for the $50,000 total. Staff said program details have not yet been developed and would be established later this year. When asked how many active revolving loans remain, staff said only a few are active and that several recent loans (examples cited: Spiral Foods, Sweet Generis) have been repaid.
Several commissioners said they supported prioritizing business support for Highway 61. Mr. Kummer urged caution by recalling the last Highway 61 reconstruction in the mid-1970s, when businesses along Vermillion Street suffered closures. "The last time the highway was redone ... the city lost a whole slew of businesses," he said, urging preemptive support.
A commissioner moved to modify the facade improvement program designation so 2027 funds could also be used as Highway 61 assistance; another commissioner seconded the motion. "I'll make a motion to modify the facade improvement program designation for flexible funds to also be used as a Highway 61 assistance program," the mover said. The motion passed on a voice vote.
Staff said it will package the commission’s direction and present the proposed allocation change to the city council for consideration. The commission also reviewed and approved routine May bills, including a facade grant payment to Two Seeds Popcorn, an alarm-monitoring contract for 213 Ramsey, and maintenance expenditures for Block 28.
Votes at a glance: the commission approved the May bills by voice vote; approved the motion to make the 2027 facade allocation flexible for Highway 61 assistance; and later moved to adjourn. Specific vote tallies beyond voice votes were not recorded in the transcript.
