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HomeMy WebLinkAboutMN-IURA-2022-04-28108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY 9:05 A.M., Thursday, April 28, 2022 Members: Tracy Farrell; Karl Graham, Vice-Chair; Laura Lewis, Acting Mayor; Rob Gearhart, Common Council Liaison; Lisa Nicholas, Acting Director of Planning & Development Excused: Chris Proulx, Chair; Eric Rosario Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott Guests: None I. Call to Order Vice-Chair Graham called the meeting to order at 9:05 A.M. II. Agenda Additions/Deletions None. III. Public Comment (3-min. max. per person) None. III. Review of Meeting Minutes: March 24, 2022 Farrell moved, seconded by Lewis, to approve the meeting minutes, with no modifications. Carried Unanimously: 3-0 IV. Audit Committee A. Election of Committee Chairperson Lewis moved, seconded by Farrell: 2021 IURA Audit Committee Election of Vice-Chairperson & Nomination of Chairperson WHEREAS, the IURA By-laws provide that the committee membership shall elect its own committee Vice-Chairperson and nominate to the Agency a member to serve as Chairperson of the Audit Committee, and WHEREAS, officers of each committee serve a one-year term, but continue to hold office until their successor is selected or appointed, and WHEREAS, the current committee officers are: Chairperson: Eric Rosario Vice-Chairperson: Karl Graham, and Approved: 5/26/22 IURA Minutes April 28, 2022 Page 2 of 14 WHEREAS, at its April 28, 2022 meeting, the IURA Audit Committee called for nominations for Vice- Chair and Chair of the IURA Audit Committee; now, therefore be it RESOLVED, that the IURA Audit Committee hereby nominates Eric Rosario as Committee Chairperson, and be it further RESOLVED, that the IURA Audit Committee hereby elects Karl Graham as Committee Vice- Chairperson. Carried Unanimously: 3-0 B. Approval of Audited 2021 IURA Financial Report Graham noted both the Governance Committee and Audit Committee reviewed and approved the report. Graham moved, seconded by Lewis: Approval of 2021 IURA Financial Audit Report WHEREAS, the Ithaca Urban Renewal Agency (IURA) derives the majority of its finances from grants awarded to the City of Ithaca, and WHEREAS, for financial reporting purposes, the IURA is a blended component unit of the City of Ithaca whose financial activity is reported in the Special Grant Fund, a governmental fund of the City of Ithaca financial statements, and WHEREAS, the IURA contracts separately from the City to have its finances audited within 90 days of the end of its Fiscal Year to comply with the Public Authorities Accountability Act, and WHEREAS, the IURA received an audited 2021 draft IURA financial report in March 2022, and WHEREAS, at its April 15, 2022 meeting, the IURA Governance Committee reviewed the financial report and attached correspondence; now, therefore, be it RESOLVED, the IURA hereby approves the Financial Report of the Ithaca Urban Renewal Agency for the period January 1, 2021 through December 31, 2021, prepared by the accounting firm of Insero & Company, LLP. Carried Unanimously: 3-0 C. Report from Committee Chairperson Graham noted the Committee also reviewed the 2021 Internal Controls and Separation of Duties portion of the 2021 IURA Financial Audit Report. IURA Minutes April 28, 2022 Page 3 of 14 V. Governance Committee (GC) A. 2021 Public Authority Reporting Bohn explained that the IURA is considered a Public Authority under New York State Law, which involves numerous annual reporting requirements. The Governance Committee reviewed all the reporting materials, including supplementary information, and raised no concerns. Graham moved, seconded by Lewis: Approval of Reports Submitted to NYS Authorities Budget Office (ABO) WHEREAS, pursuant to the Public Authorities Accountability Act (PAAA), as amended, the IURA is required on an annual basis to submit reports to the New York State Authorities Budget Office (ABO), and WHEREAS, the IURA Director of Community Development is designated to certify accuracy of the reporting, and WHEREAS, the reporting is due to be submitted within 90 days of the end of the fiscal year, and WHEREAS, it is appropriate that IURA members exercise oversight over the staff reporting to the ABO, and WHEREAS, at its meeting of April 15, 2022, the IURA Governance Committee reviewed the reporting and recommends the following action; now, therefore, be it RESOLVED, that the IURA hereby approves FY2021 IURA public authority reports submitted to the New York State Authorities Budget Office, including the following: • Budget report • Annual report • Procurement report • Investment report • Certified financial audit report Carried Unanimously: 3-0 B. Policy to Prohibit Personal Loans to Members & Staff Bohn explained one of the questions in the Public Authorities Accountability Act Report asks about personal loans to Board members and staff, so he drafted the proposed resolution to formally adopt a policy prohibiting the extension of credit to Board members and staff. IURA Minutes April 28, 2022 Page 4 of 14 Farrell moved, seconded by Lewis: IURA Policy — Prohibit Extension of Credit to Board Members & Staff WHEREAS, Section 2824 of Public Authorities Law establishes roles and responsibilities of Board members of public authorities, and WHEREAS, paragraph 5 of section 2824 prohibits local authorities from extending personal loans to any officer, board member or employee of an authority, and WHEREAS, the Ithaca Urban Renewal Agency (IURA) is a local public authority, and WHEREAS, the annual public authorities reporting questionnaire completed by the IURA asks if the authority has established a policy prohibiting the extension of credit to board members and staff in accordance with Section 2824 (5) of public authority law, and WHEREAS, the IURA has never extended credit to any board member or staff but has not established a specific policy in accordance with Section 2824 (5), and WHEREAS, at its April 15, 2022 meeting, the IURA Governance Committee discussed this matter and recommended the following action; now, therefore be it RESOLVED, that the IURA hereby adopts as policy that the IURA hereby prohibits extending credit, in the form of a personal loan to or for any officer, Board member, or employee of the IURA. Carried Unanimously: 3-0 C. 1st Amendment to 2022 IURA Budget Bohn reported that the Governance Committee reviewed and approved the proposed resolution, which seeks to address unanticipated expenses, including purchasing a replacement for a 13-year old desktop computer, as well as several other one-time IT-related expenses. In 2021, the IURA did not incur any hardware expenses under the “Equipment/Furniture/Software” line-item. The anticipated extra revenue from the sales of 239 and 240 Cherry Street would more than off-set the $3,300 in expenses. Public Authorities Law PBA §2824 (5). Notwithstanding any provision of any general, special or local law, municipal charter or ordinance to the contrary, no board of a state or local authority shall, directly or indirectly, including through any subsidiary, extend or maintain credit, arrange for the extension of credit, or renew an extension of credit, in the form of a personal loan to or for any officer, board member or employee (or equivalent thereof) of the authority. IURA Minutes April 28, 2022 Page 5 of 14 Graham moved, seconded by Farrell: 1st Amendment to 2022 IURA Budget WHEREAS, the 2022 adopted IURA budget provided $1,600 for expenses included in the equipment/furniture/software budget line, and WHEREAS, in February 2022, the City instituted a heightened security protocol requiring installation of security software on all hardware, which raised compatibility issues for older hardware, and WHEREAS, due to normal obsolescence and required upgrades to install new City security software, the IURA requires replacement of two laptops, a desktop, and a printer to replace that will exceed the budgeted amount for equipment and software, and WHEREAS, the following expenses are projected in 2022 for equipment and software: $1,517 2 - laptops replacements $656 1 - desktop CPU replacement $293 1 - Accountant printer replacement $149 1 - Zoom subscription $179 1 - Adobe subscription $96 1 - Office 365 subscription $350 1 - QuickBooks subscription – desktop Pro version $60 1 - Tompkins Trust Company (TTC) electronic checks subscription $3,300 Total WHEREAS, the lessees of 239 Cherry Street and 240 Cherry Street have informed the IURA of intent to exercise their options in 2022 to acquire properties that they currently lease from the IURA, and WHEREAS, the purchase prices are $26,640 and $39,400 for the two properties, respectively, and WHEREAS, at its April 15, 2022 meeting, the IURA reviewed this matter and recommended the following action; now, therefore, be it RESOLVED, that the IURA hereby amends its 2022 budget to increase expenses in the equipment/furniture/software category from $1,600 to $3,300 and recognize a $66,040 budgeted increase in revenues from sale of property. Carried Unanimously: 3-0 D. Fiscal Position of IURA — Review Bohn explained that the Governance Committee regularly reviews the IURA’s fiscal position, as illustrated in the Bank Account Analysis table below. All account balances have been relatively stable. The primary figure of interest is the “Non-CDBG (#05)” account at the bottom, which represents the IURA’s own independent funds, not tied to Federal regulations. The IURA needs to ensure the account balance is as robust as possible, since it provides the IURA with the greatest flexibility. IURA Minutes April 28, 2022 Page 6 of 14 Bohn noted the balance in the “Non-CDBG (#05)” account has decreased slightly from prior years, although that simply in comparison to the revenue windfall the IURA received in 2020 when the Cayuga Green project’s loans were repaid. The IURA has since made new loans using those funds: (1) Ithaca Neighborhood Housing Services (INHS) Sunflower House at 107-109 S. Titus Ave.; and (2) INHS acquisition of 324 W. Buffalo St. (Catholic Charities building). The only restriction to the “Non-CDBG (#05)” account is that the IURA cannot issue loans or award grants with those funds: “A state and local authority (other than an industrial development agency) formed as public benefit corporation may not award grants or issue loans of its own funds unless such power is expressly permitted in its enabling statute. The authority to make grants and execute loans is not an implied power of a public benefit corporation.” “Non-CDBG (#05)” funds can, however, be used for administrative costs, contract agreements, and real estate investments. Bohn noted the HODAG (Housing Development Action Grant) account must be used for low- and moderate-income (LMI) rental housing projects. The “CD-RLF (#02)” account (Community Development-Revolving Loan Fund) can be used for issuing loans to businesses. The IURA earns approximately $11,000 per month from its loans. E. Annual Self-Evaluation of Board Performance — Review Bohn explained that an aggregated summary table of four of five IURA Board members’ anonymous annual evaluation of the Board’s performance can be found on the next page. While most Board members agree with each other regarding most of the listed criteria, there are a few criteria where there is less agreement. The Governance Committee suggested adding a space on the form to add a comment, so people have the opportunity to provide more detail and clarity. IURA Minutes April 28, 2022 Page 7 of 14 F. Report from Committee Chairperson None. IURA Minutes April 28, 2022 Page 8 of 14 VI. Neighborhood Investment Committee (NIC) A. 2022 Community-Based Development Organization (CBDO) & Community Housing Development Organization (CHDO) Designations 1. Historic Ithaca, Inc. — CBDO Resolution Graham explained that IURA staff reviews all CBDO and CHDO applications to ensure each organization meets the eligibility criteria, including the Board member eligibility test. Graham moved, seconded by Farrell: 2022 IURA Designation of Historic Ithaca, Inc. (HI) As Community-Based Development Organization (CBDO) WHEREAS, the Board of Historic Ithaca, Inc. (HI) seeks designation by the Ithaca Urban Renewal Agency (IURA) as a Community-Based Development Organization (CBDO), and WHEREAS, the City of Ithaca has designated the IURA to administer the City’s HUD Entitlement Program that oversees Community Development Block Grant funds awarded to the City, and WHEREAS, an eligible category of CDBG activities is a “Special Activity by CBDO,” that offers certain advantages, such as exemption from the 15% expenditure cap otherwise applicable to public service activities, authorization to carry out new housing construction (normally prohibited with CDBG funds), and discretion to allow income generated by a CDBG-funded activity to not be considered CDBG program income, and WHEREAS, the following four tests established at CFR Title 24 §570.204 must be met to qualify under a category of “Special Activity by CBDOs:” 1. The entity qualifies as a CBDO, including the 51% board membership test; 2. The CBDO will undertake an eligible project; 3. That the CBDO will carry out the funded activity directly or with an entity other than the grantee; 4. That the CBDO will not carry out a prohibited activity, and WHEREAS, a CBDO must maintain at least 51% of its governing body’s membership to be made up of any combination of the following: ● Low- and moderate income residents of its area of operation ● Owners or senior officers of private establishments and other institutions located in its area of operation ● Representatives of low- and moderate-income neighborhood organizations located in its area of operation, and WHEREAS, a CBDO must have as its primary purpose the improvement of the physical, economic, or social environment of its geographic area of operation, with a particular emphasis on the needs of low- and moderate-income persons, and IURA Minutes April 28, 2022 Page 9 of 14 WHEREAS, the project undertaken by the CBDO must qualify as one or more of the following project types: ● neighborhood revitalization; ● community economic development; ● energy conservation project; and WHEREAS, IURA evaluated HI’s CBDO application and recommended the following; now, therefore, be it RESOLVED, the IURA determines that Historic Ithaca, Inc. meets the requirements for eligibility as a CBDO, and that the HI’s “Work Preserve Job Training: Job Placements” program qualifies as an eligible CBDO activity; and be it further RESOLVED, that the IURA hereby designates Historic Ithaca, Inc. as a Community-Based Development Organization (CBDO) and its “Work Preserve Job Training: Job Placements” as eligible for CDBG funding under the category of “Special Activities by CBDOs.” Carried Unanimously: 3-0 2. Finger Lakes ReUse, Inc. — CBDO Resolution Graham moved, seconded by Farrell: 2022 IURA Designation of Finger Lakes ReUse, Inc. (ReUse) as a Community-Based Development Organization (CBDO) WHEREAS, the Board of Finger Lakes ReUse, Inc. (ReUse) seeks designation by the Ithaca Urban Renewal Agency (IURA) as a Community-Based Development Organization (CBDO), and WHEREAS, the City of Ithaca has designated the IURA to administer the City’s HUD Entitlement Program that oversees Community Development Block Grant funds awarded to the City, and WHEREAS, an eligible category of CDBG activities is a “Special Activity by CBDO”, that offers certain advantages, such as exemption from the 15% expenditure cap otherwise applicable to public service activities, authorization to carry out new housing construction (normally prohibited with CDBG funds), and discretion to allow income generated by a CDBG-funded activity to not be considered CDBG program income, and WHEREAS, the following four tests established at CFR Title 24 §570.204 must be met to qualify under a category of “Special Activity by CBDOs”: 1. The entity qualifies as a CBDO, including the 51% board membership test; 2. The CBDO will undertake an eligible project; 3. That the CBDO will carry out the funded activity directly or with an entity other than the grantee; 4. That the CBDO will not carry out a prohibited activity, and IURA Minutes April 28, 2022 Page 10 of 14 WHEREAS, a CBDO must maintain at least 51% of its governing body’s membership to be made up of any combination of the following: ● Low- and moderate income residents of its area of operation ● Owners or senior officers of private establishments and other institutions located in its area of operation ● Representatives of low- and moderate-income neighborhood organizations located in its area of operation, and WHEREAS, a CBDO must have as its primary purpose the improvement of the physical, economic, or social environment of its geographic area of operation, with a particular emphasis on the needs of low- and moderate-income persons, and WHEREAS, the project undertaken by the CBDO must qualify as one or more of the following project types: ● neighborhood revitalization; ● community economic development; ● energy conservation project; and WHEREAS, IURA evaluated ReUse’s CBDO application and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that Finger Lakes ReUse, Inc. meets the requirements for eligibility as a CBDO, and that the ReUse’s “Green Job Opportunities Through Reuse” program qualifies as an eligible CBDO activity, and be it further RESOLVED, that the IURA hereby designates Finger Lakes ReUse as a Community-Based Development Organization (CBDO) and its “Job Training for Career Pathways” as eligible for CDBG funding under the category of “Special Activities by CBDOs.” Carried Unanimously: 3-0 3. GIAC, Inc. — CBDO Resolution Graham moved, seconded by Lewis: 2022 IURA Designation of Greater Ithaca Activities Center, Inc. (GIAC, Inc.) As Community-Based Development Organization (CBDO) WHEREAS, the Board of Greater Ithaca Activities Center, Inc. (GIAC, Inc.) seeks designation by the Ithaca Urban Renewal Agency (IURA) as a Community-Based Development Organization (CBDO), and WHEREAS, the City of Ithaca has designated the IURA to administer the City’s HUD Entitlement Program that oversees Community Development Block Grant (CDBG) funds awarded to the City, and IURA Minutes April 28, 2022 Page 11 of 14 WHEREAS, an eligible category of CDBG activities is a “Special Activity by CBDO,” that offers certain advantages, such as exemption from the 15% expenditure cap otherwise applicable to Public Services activities, authorization to carry out new housing construction (normally prohibited with CDBG funds), and discretion to allow income generated by a CDBG-funded activity to not be considered CDBG program income, and WHEREAS, the following four tests established at CFR Title 24 §570.204 must be met to qualify under a category of “Special Activity by CBDOs:” 1. The entity qualifies as a CBDO, including the 51% board membership test; 2. The CBDO will undertake an eligible project; 3. That the CBDO will carry out the funded activity directly or with an entity other than the grantee; 4. That the CBDO will not carry out a prohibited activity, and WHEREAS, a CBDO must maintain at least 51% of its governing body’s membership to be made up of any combination of the following: ● Low- and moderate income (LMI) residents of its area of operation ● Owners or senior officers of private establishments and other institutions located in its area of operation ● Representatives of low- and moderate-income neighborhood organizations located in its area of operation, and WHEREAS, a CBDO must have as its primary purpose the improvement of the physical, economic, or social environment of its geographic area of operation, with a particular emphasis on the needs of low- and moderate-income persons, and WHEREAS, the project undertaken by the CBDO must qualify as one or more of the following project types: ● neighborhood revitalization; ● community economic development; ● energy conservation project; and WHEREAS, IURA evaluated GIAC Inc.’s CBDO application and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that Greater Ithaca Activities Center, Inc. meets the requirements for eligibility as a CBDO, and that the GIAC Inc.’s “Hospitality Employment Training Program (HETP)” qualifies as an eligible CBDO activity, and be it further RESOLVED, that the IURA hereby designates Greater Ithaca Activities Center, Inc. as a Community-Based Development Organization (CBDO) and its “Hospitality Employment Training Program (HETP) Job Placements” program as eligible for CDBG funding under the category of “Special Activities by CBDOs.” Carried Unanimously: 3-0 IURA Minutes April 28, 2022 Page 12 of 14 4. Ithaca Neighborhood Housing Services (INHS), Inc. — CHDO & CBDO Resolution Bohn explained that HUD allows CHDOs to be automatically designated as CBDOs, but only when the service area is confined. Since INHS’ service area now extends further than the City, the IURA will need to ask HUD to approve the designation. Graham moved, seconded by Lewis: 2022 Designation of Ithaca Neighborhood Housing Services, Inc. (INHS) As Community Housing Development Organization (CHDO) & Community-Based Development Organization (CBDO) WHEREAS, the Ithaca Urban Renewal Agency (IURA) has been designated by the City of Ithaca as the Lead Agency to develop, administer and implement the HUD Entitlement Grant program, including funds received through the HOME Investment Partnerships (HOME) program, and WHEREAS, grant recipients under the HOME program are termed Participating Jurisdictions (PJs), and WHEREAS, PJs must reserve not less than 15% of their HOME allocation for investment in housing to be developed, sponsored, or owned by Community Housing Development Organizations (CHDOs), and WHEREAS, each PJ must annually identify CHDOs that are capable of carrying out projects to address priority housing needs identified in the Consolidated Plan, and WHEREAS, a CHDO is a specific type of community-based non-profit organization as defined in 24 CFR §92.2, and WHEREAS, on October 1, 2021, Ithaca Neighborhood Housing Services, Inc. (INHS) submitted materials documenting its qualifications and requested renewal of its designation as a CHDO by the IURA, and WHEREAS, on March 14, 2022, IURA Staff completed a point-in-time review of said documents, and WHEREAS, at its April 8, 2022 meeting, the Neighborhood Investment Committee of the Ithaca Urban Renewal Agency compared the submitted materials against CHDO criteria and recommends the following; now, therefore be it RESOLVED, that the IURA, acting in its capacity as the Lead Agency for the Participating Jurisdiction of the City of Ithaca, hereby renews its designation of Ithaca Neighborhood Housing Services, Inc. as a CHDO for the 2022 Action Plan, and be it further IURA Minutes April 28, 2022 Page 13 of 14 RESOLVED, that the IURA, acting in its capacity as the Lead Agency for the Participating Jurisdiction of the City of Ithaca, and pursuant to 24 CFR §570.204(c)(3) hereby renews its designation of Ithaca Neighborhood Housing Services, Inc. as a Community Based Development Organization (CBDO) for the 2022 Action Plan, pending input from HUD. Carried Unanimously: 3-0 B. Report from Committee Chairperson Graham reported that the IURA may need to recapture up to $15,000 in grant funds from the Salvation Army’s CDBG-CV Emergency Assistance Program, if it does not identify more households for mortgage payment assistance. VII. Other Business A. IURA Financials Review: March 2022 Graham remarked two activities in the Grants Summary have been flagged for not being on schedule: Alternatives Federal Credit Union’s (AFCU) Small Business Resiliency Fund (SBRF) project and the Salvation Army project mentioned earlier. Bohn explained that the IURA still needs documentation from AFCU to approve reimbursements for six of the small-business loans. Mendizabal added there is a similar issue with the CDBG-CV “Ithaca CARES About Re-Opening Child Care” Child Development Council of Central NY (CDC) project. CDC has been unable to obtain some documentation from several of its childcare providers. Graham noted if the Salvation Army continues to have difficulty with its client outreach efforts, the IURA may need to recapture those funds. Mendizabal added any recaptured CDBG-CV funds would need to be used for a COVID-19-related activity. Bohn noted he recommends any unexpended AFCU funds be returned to the Community Development- Revolving Loan Fund (CD-RLF). Bohn explained that HUD requires that CDBG-funded activities be carried out and spent down in a timely manner, which is achieved if 60 days prior to the end of the IURA’s Program Year, the amount of all CDBG funds available to the IURA, but undisbursed by HUD, is less than 1.5 times the entitlement grant amount for the current Program Year. For a variety of reasons, the IURA will not be able to meet the threshold this year. HUD waived the requirement this year for the IURA, since the IURA met the requirement over the past 3 years; however, HUD expects the IURA to comply next year. Bohn reported all loan payments are in good standing, except GreenStar Cooperative Market and Diane’s Downtown Auto. All lease payments are in good standing as of today. B. IURA Chairperson Report None. IURA Minutes April 28, 2022 Page 14 of 14 C. Common Council Liaison Report None. D. Staff Report Bohn remarked he will be out-of-town June 10-24th, which may mean rescheduling the June 23rd IURA Board meeting. Bohn reported that Common Council is considering relocating the East Hill Fire Station at 309 College Ave. (Fire Station No. 9), including a negotiated sale that would involve the IURA in the acquisition and sale agreement negotiation process. The April 20, 2022 Planning & Economic Development Committee (PEDC) agenda contains more information about the proposal. VIII. Adjournment The meeting was adjourned by consensus at 10:22 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.