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HomeMy WebLinkAboutMN-IURA-2023-02-23Approved: 3/2/23 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY 8:30 A.M., Thursday, February 23rd, 2023 Common Council Chambers, Third Floor (City Hall) 108 E. Green St., Ithaca, NY 14850 Members: Chris Proulx, Chair; Karl Graham, Vice-Chair; Laura Lewis (Mayor); Donna Fleming; George McGonigal (Common Council Liaison) Excused: None. Vacancies: 1 IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott City Staff: Lisa Nicholas Guests: Liddy Bargar, Human Services Coalition of Tompkins Co., Director of Housing Initiatives Simone Gatson, Human Services Coalition of Tompkins Co., CoC Housing Specialist Jorge Bouras, BSJ Holdings Group, Inc. I. Call to Order Chair Proulx called the meeting to order at 8:31 A.M. II. Agenda Additions/Deletions None. III. Public Comments None. IV. PUBLIC HEARING: Development of HOME-American Rescue Plan (HOME-ARP) Allocation Plan On a motion by Lewis, seconded by Fleming, and unanimously approved, Chair Proulx opened the Public Hearing. Mendizabal briefly recapitulated the overview she originally presented to the Board on January 26, 2023: Allocation: $1,211,000 is the total award with $1,029,350 available for projects (Administration subtracted). This is one-time funding determined by formula. Administration: Participating Jurisdictions (PJs) may use up to 15% of the total award for administration of HOME-ARP, or $181,650, in the case of the City of Ithaca. IURA Minutes February 23, 2023 Page 2 of 22 Goals: To reduce homelessness and increase housing stability. Eligible Activities/Compliant Uses: • Rental housing (creation of) • Tenant-Based Rental Assistance (TBRA) • Supportive services • Acquisition and/or development of non-congregate shelter • Non-profit assistance/capacity building (5% cap) o Administrative and planning costs for HOME-ARP (15% cap) Qualifying Populations (QPs): 1. homeless (especially persons experiencing unsheltered homelessness) 2. at-risk of homelessness (e.g., notice of eviction, etc.) 3. fleeing domestic violence, sexual assault, dating violence, stalking, or human trafficking 4. others requiring services to prevent homelessness or at great risk of housing instability (e.g., couch surfers, extremely cost-burdened renters, etc.) HOME-ARP Allocation Plan: The allocation plan identifies existing gaps in the homeless prevention and response system to address needs of the four Qualifying Populations and budgets the HOME-ARP grant award among the five eligible uses. Most communities with smaller grant awards focus funding on only one or two eligible uses. Submission Deadline: March 31, 2023. Mendizabal noted no public comments have been received to date. On a motion by Lewis, seconded by Fleming, and unanimously approved, Chair Proulx closed the Public Hearing. V. 2023 HUD Entitlement Grant Action Plan A. PUBLIC HEARING #1: Public Input on 2023 Action Plan On a motion by Lewis, seconded by Graham, and unanimously approved, Chair Proulx opened the Public Hearing. B. Review of Projected Funds Available & Public Hearing Format Mendizabal explained that IURA staff anticipates the availability of $616,000 in Community Development Block Grant (CDBG) Program funds and $304,000 in HOME Investment Partnerships Program (HOME) funds, in addition to $140,000 in CDBG Program Income, $3,133 in recaptured CDBG funds, and $11,124 in recaptured HOME funds. A total of approximately $921,000 in CDBG and HOME funds is anticipated to be available. She added no Public Comments have been received to date. C. Disclosure of Any Potential Conflicts of Interest None. IURA Minutes February 23, 2023 Page 3 of 22 ― ECONOMIC DEVELOPMENT APPLICATIONS ― 1. APPLICATION #10: BUILDING QUALITY CAREER PATHS THROUGH REUSE — FINGER LAKES REUSE, INC. (FLRU) Speaker Affiliation Comments-in-Brief Diane Cohen Finger Lakes ReUse, Inc. (FLRU) FLRU’s ReSET Job Training Program has continued to grow since its launch in 2013. The program’s success can be attributed to extensive collaboration with local customer service, technology, and construction-related businesses, human service organizations, government agencies, and foundations. FLRU is handling almost double the volume of donated materials vs. pre-pandemic levels. In January 2023, the number of drop-off donations increased 173% over 2022. There are currently 11 trainees in the program with a waitlist of 13. Robin Elliott Finger Lakes ReUse, Inc. (FLRU) In 2024, FLRU anticipates enrolling 10 paid Apprentices and training up to 30 additional individuals. FLRU is committed to placing at least 15 low- and moderate-income (LMI) individuals with employment barriers into permanent unsubsidized positions. FLRU’s overall historical retention rate has been over 70%. FLRU works with a wide variety of individuals with barriers to employment, including the disabled, formerly incarcerated, youth, and individuals in recovery. FLRU continues to partner closely with the Career Pathways Project (Green New Deal), which is a multi-organizational effort. Should FLRU be required to prioritize a portion of the program due to funding limitations, it would focus on providing stipends as the most critical component. Graham asked what impact the low unemployment rate has had on recruitment. Elliott replied that disruptions and staff turnover at local organizations due to the pandemic have actually been more of a factor in recruitment. The people FLRU serves remain in the community and continue to need support. McGonigal asked what is involved in training the Apprentices. Cohen replied Apprentices function as an integral component of the organization’s staffing structure, so they serve as paid trainees, who assist in a wide variety of tasks (e.g., processing materials, organizing merchandise, point-of-sale staffing, customer service, etc.). Elliott added the main barrier that potential employers cite is the lack of soft skills in job applicants, so FLRU focuses much of its time on developing those skills (e.g., communication, collaboration, reliability, consistency). Lewis observed donations have increased 170%, but she imagines that would involve considerably more work. Lewis also noted Cohen indicated FLRU expects $109,000 in merchandise sales. She asked if FLRU expects that number to increase due to more donations. Cohen replied, yes. FLRU earned $2.4M last year in sales, as unrestricted funds; and this year, FLRU expects over 80% of its revenue to come through cash register sales. IURA Minutes February 23, 2023 Page 4 of 22 Fleming asked what the placement rate is for the Apprentices who obtain full-time employment and what types of jobs are involved. Elliott responded there has been an increase in placements for Apprentices, probably in the 80%-85% range historically, although it was much lower in the most recent year, since FLRU was encountering trouble with retention. Examples of employers include ICS, Brightworks Computer Consulting, Ithaca City School District (ICSD), Significant Elements, Cornell University, Staples, and BestBuy. 2. APPLICATION #11: WORK PRESERVE (WP) JOB TRAINING - JOB PLACEMENTS — HISTORIC ITHACA, INC. (HI) Speaker Affiliation Comments-in-Brief Susan Holland Historic Ithaca, Inc. (HI) HI has made great strides since the pandemic and staff turnover. It has continued to in significant fundraising efforts. WP trains adults with barriers to employment (e.g., youth, young adults, homeless, formerly incarcerated, individuals with disabilities or mental illness). Participants are recruited from partner agencies, who subsidize wages participants receive during their training. Partners include: Workforce NY JobLINK; The Learning Web; Challenge Workforce Solutions; Ithaca Youth Bureau; Youth Employment Service (YES); Opportunities, Alternatives, & Resources (OAR) of Tompkins County; Ultimate Reentry Opportunity (URO); BOCES; and Family & Children’s Service of Ithaca’s (FCSI) Open Doors program, which provides services to youth up to age 21 who have run away, are homeless, or at-risk of either. Potential new entrants to the workforce need customized training, including a wide variety of soft skills. The duration of training is based on individual needs and circumstances, lasting from 9-14 weeks for job - readiness, with an additional 3 months for job placement candidates. Over the past year, the ‘quiet quitting” phenomenon has created some new opportunities for the program. Participants are taught skills in construction, retail operations, customer service, preservation, and facility maintenance, with a focus on the trades. WP continues to provide post-placement support for its graduates to promote job- retention and assist in navigating challenging work situations. Retail sales revenues are currently at 2019 or higher levels. Geno Tournour Historic Ithaca, Inc. (HI) HI’s outreach efforts help maintain a robust training program. Staff continue to strengthen ties to the local business community and fostering networking opportunities with hirers and recruitment offices. This year, HI has seen a resurgence in the Ithaca business community’s engagement with and recruiting of potential employees. Jordan Governale Historic Ithaca, Inc. (HI) As the Work Preserve Warehousing & Traditional Skills Trainer, he leads one-on-one and small-group training for Work Preserve participants in hands-on job skills, by processing and repairing items for sale at Significant Elements, as well as soft skills. IURA Minutes February 23, 2023 Page 5 of 22 Speaker Affiliation Comments-in-Brief Robert Rector Historic Ithaca, Inc. (HI) Graham noted Historic Ithaca has IURA funds remaining from past years, which may overlap into 2024. He asked how Historic Ithaca plans to spend those remaining funds. Holland replied, since Historic Ithaca received Paycheck Protection Program (PPP) funding in 2020 and could not double-dip, it has been using its resources to actively plan for the future so it can ensure continuing its programming with no interruptions. In recent months, it has been spending IURA funds more quickly and will continue to do so, especially with Governale now employed full-time. Fleming asked how much overlap there is between the services FLRU provides vs. the services Historic Ithaca provides. Holland replied the need for these kinds of services is extremely great in Ithaca, with the poverty level in the City of 26%. WP is a very labor-intensive program, which does not rely on many volunteers. There is not an overlap per se, since different organizations work with very different types of individuals. 3. APPLICATION #12: HOSPITALITY EMPLOYMENT TRAINING PROGRAM (HETP) — GREATER ITHACA ACTIVITIES CENTER, INC. (GIAC) Speaker Affiliation Comments-in-Brief Charlene Santos Greater Ithaca Activities Center, Inc. (GIAC) She has served as HETP Program Coordinator since October 2022. Since 2014, HETP has assisted 190 adults who were unemployed/under-employed to find employment. Participants commit to 6 weeks of training and acquire a variety of skills, formal education, and hands-on experience, with the goal of obtaining and retaining successful permanent employment. HETP assists adults 18 to 24 years old, who are racially, ethnically, and economically marginalized and who face significant barriers to employment. Classes tend to focus on professional public communication, etiquette skills, mock interview skills, financial literacy, and customer service skills for various hospitality-oriented fields. After classroom instruction, participants are placed with an employer for 120 hours of on-the-job training. HETP distinguishes itself through its use of wrap- around services to ensure participants succeed personally and professionally. The process begins with assessing participants’ needs and developing a plan to access resources, like mental health services, social services, and childcare, if needed. Childcare is one of the most significant obstacles to employment for many participants. Tompkins County is considered a childcare desert, meaning there are only enough licensed and regulated childcare services available for a third IURA Minutes February 23, 2023 Page 6 of 22 Speaker Affiliation Comments-in-Brief of children needing care in the County. Transportation is another significant barrier to employment, so HETP purchases bus passes for participants or employs GIAC vehicles to take them to work-related appointments or training-related activities. Instruction and additional assistance focuses on computer skills, ServSafe (alcohol) and food- safety certifications, Hospitality Star certifications, and GED preparation. Funding is also used for professional interviewing attire, childcare, and stipends for successfully completing the classroom instruction. Monique Flynn Greater Ithaca Activities Center, Inc. (GIAC) Graham asked how many classes GIAC plans to operate this year, compared with how many it has operated in the past. Santos replied, in 2021, GIAC held 3 classes. (She was not with GIAC before then, so she cannot be entirely sure of earlier numbers.) In its next round, GIAC plans 2 cohorts, similar to past years. In 2022, GIAC hosted 3 cohorts of classes. Graham observed HETP has a significant amount of IURA funding remaining from its 2021 and 2022 awards. He asked why so much funding remains and what GIAC’s plan is for spending down those funds. Santos responded she has been working assiduously to submit vouchers covering 1½ years of expenses. She expects to catch up with the program’s spend-down rate relatively quickly. She is certain GIAC will need 2023 funding, since it has recently been enrolling more participants, compared to the past 2 years. McGonigal asked how many people enroll in a typical class. Santos replied, there have usually been 10 people a year, which has just increased to 14 people. The numbers of participants in any given class depends somewhat on what GIAC staff can handle in terms of case management. Fleming inquired into the types of jobs graduates are placed into. Santos responded, past graduates have found employment with Cornell University Dining, the Statler Hotel, Coltivare, Greek Peak, Gimme Coffee, GreenStar, Kendal, Ithaca Marriott, Wegmans, Challenge Workforce Solutions, and La Tourelle. 4. APPLICATION #14: SHARED KITCHEN ITHACA (SKI): FOOD PRODUCT MICRO-ENTERPRISE DEVELOPMENT — FRIENDS OF ITHACA FARMERS MARKET Speaker Affiliation Comments-in-Brief Tom Knipe City of Ithaca IURA funds would provide 10 Ithaca-based low- and moderate-income (LMI) micro-enterprise food businesses with technical business assistance and subsidized rent in a shared commercial kitchen at 700 IURA Minutes February 23, 2023 Page 7 of 22 Speaker Affiliation Comments-in-Brief W. Buffalo Street. The proposal grew out of the City’s Small-Scale Manufacturing Action Plan and an in-depth feasibility analysis (funded by the IURA and completed in September 2022), which demonstrated strong demand for this facility and the project’s overall financial feasibility. Dominick Reckkio Friends of the Ithaca Farmers Market The types of businesses the project would support include many who have investigated venturing into processed goods, like ice cream. The 68 survey respondents are likely users, searching for ways to grow their businesses. Any level of IURA funding would help demonstrate community support for the project. Graham observed, when GreenStar Cooperative abandoned the facility, it removed much of the equipment and many fixtures. Knipe replied there would be $325,000 dedicated to start-up costs, including $150,000 for equipment. The facility already has 3 commercial hoods, a walk-in cooler, and a loading dock, so all that would be needed are ranges, ovens, and related equipment. The remainder of the funding, $175,000, would pay for other start-up costs and an operating subsidy over the first two years. Graham noted part of IURA funding would be for the project director. He asked if that person would be responsible for signing the contract and doing the reporting. Knipe replied the contract would be signed by Friends of the Ithaca Farmers Market. Graham asked what the City’s involvement would be. Knipe replied, the City would be involved with virtually anything needed to make the project successful (e.g., working with board of directors, research, fundraising, networking, convening meetings). Fleming asked if non-LMI businesses would be able to use the kitchen. Knipe replied, yes, it would be open to everyone. It is only the IURA funding that would be used exclusively for the LMI businesses. 5. APPLICATION #14: BHU PRE-APPRENTICESHIP PROGRAM — BLACK HANDS UNIVERSAL, INC. (BHU) Speaker Affiliation Comments-in-Brief Harry Smith Black Hands Universal, Inc. (BHU) The Pre-Apprenticeship Program is in its first year and has enabled BHU to enroll young adults/adults to acquire certifications and other resources they need to get into the trades. In collaboration with My Brothers Keeper Ithaca (MBKI), local unions of the Northeastern Region, the City of Ithaca, Cayuga Medical Center, Tompkins Cortland Community College, Alternatives Federal Credit Union (AFCU), and a number of other local organizations, the program has been creating opportunities for black and brown people to have careers in the IURA Minutes February 23, 2023 Page 8 of 22 Speaker Affiliation Comments-in-Brief trades. Participants receive hands-on training in different fields within the trades and skilled labor force. So far, the program has worked with 15 people throughout the year (1,200 hours), in 3 different cohorts of five each, and produced 12 graduates. Three people signed up with the carpenters’ union, of whom one was hired. Four people signed up with the painters’ union, of whom two were hired. One person signed up with the laborers’ union and was hired. Being designated by the IURA as a Community-Based Development Organization (CBDO) has also strengthened the program. Graham asked if BHU has a formal agreement with the unions to interview program participants. Smith replied, yes. All participants, except three who did not graduate, were interviewed. Graham asked who conducts the training for classes. Smith responded, he and another colleague conduct the training. Several other volunteers have also been willing to help participants in a variety of ways. Lewis asked how BHU recruits participants and how it has been using City funds. Smith replied BHU recruits participants primarily by word-of-mouth, speaking with people, finding out their needs, and reaching out on social media platforms. The City funds enable BHU to retain people to assist with the project, as well as pay rent, class fees, and insurance premiums. Proulx remarked he is confused about some of the information listed on the first page of the application, in particular the “Number of Micro-Enterprises to Be Assisted” and the “Number of New LMI Jobs to Be Created.” Smith responded that BUH was just designated a Community-Based Development Organization (CBDO), and a minority lawns and gardens business is one enterprise it is focused on, to help that business get started. BHU is also beginning to create work for participants itself, like work on the Forest City Lodge (working with Historic Ithaca) to transform it into a historic site this Summer, by subcontracting workers under BHU’s own contract. ― PUBLIC FACILITIES APPLICATIONS ― 1. APPLICATION #15: 200 Cecil A. Malone Dr. SIDEWALK FILL-IN ― CITY OF ITHACA Speaker Affiliation Comments-in-Brief John Licitra City of Ithaca The proposal involves a shovel-ready project to construct ADA curb ramps, curbing, new sidewalks, and cross-walks, thereby benefiting all IURA Minutes February 23, 2023 Page 9 of 22 Speaker Affiliation Comments-in-Brief pedestrians, especially LMI populations who are less likely to have access to a vehicle, and people needing ADA-accessible walkways. The improvements would include: 2 curb ramps and 600+ linear feet of ADA-compliant concrete sidewalk. Many community leaders have expressed a desire for improvements along this corridor, because of the recently built housing at Arthaus and proximity to Nate’s Floral Estates mobile home park. If there is no IURA funding, then it is unlikely the new sidewalk would be constructed, since annual debt significantly inhibits the City’s ability to keep up with current repairs. Outside funding support is necessary to move a project of this scale forward. The project would also include a Vision Zero approach. The Vision Zero Action Plan is the City’s strategy for ending traffic deaths and injuries on its streets. McGonigal noted the need for the improvements is evident, because of the recently constructed Arthaus building, but he wonders where the City would install the project. Cecil A. Malone Dr. is a very wide street and gets significant traffic. The southside of Cecil A. Malone Dr. is the last industrial-zoned portion of the City. He is concerned the project would crowd the adjacent parking area, so wondered where the City plans on installing the sidewalk. Licitra replied there is additional storage when available and the City has a right-of-way. The City was also planning to create a treelawn area and was going to rework the driveway, although no one has spoken to the landlord yet. Graham noted the Neighborhood Investment Committee (NIC) was confused as to why the Sidewalk Improvement District is not paying for the project, rather than using HUD Entitlement Program funds. Licitra replied it is new construction and replacement to fill in the gap at this location. The project budget is $180,000, so without HUD funding it would take an entire year to complete it. On a motion by Fleming, seconded by Lewis, and unanimously approved, Chair Proulx suspended the Public Hearing. VI. Special Order of Business: Presentation from Continuum of Care (CoC) HOME, Together: Tompkins County, Strategic Plan to Address Unsheltered Homelessness Bargar and Gatson walked through a slide presentation (excerpted on the following page). IURA Minutes February 23, 2023 Page 10 of 22 IURA Minutes February 23, 2023 Page 11 of 22 IURA Minutes February 23, 2023 Page 12 of 22 Graham noted the report recommends adding 100 units of supportive housing. He asked what the recommended best practice would be placing that housing (i.e., one or two apartment buildings or a scattered site model). Gatson replied that given the serious housing bottleneck the focus is simply to find more housing. A wide range of units would meet the needs for the homeless population: some people prefer living in apartment building, while others would prefer to live in smaller buildings. Homeless individuals need to be able to choose what type of housing would best address their needs. IURA Minutes February 23, 2023 Page 13 of 22 Proulx asked what the ratio is in terms of the need in the City of Ithaca vs. the need in Tompkins County. Bargar responded, since the Continuum of Care (CoC) operates on system-wide level, the data it collects does not differentiate between municipalities, although the concentration of need is definitely in the City, because of shelter location and supportive services, scalable to apply to entire county. McGonigal asked when Gatson referred to the over-representation of Black, Indigenous, and People-of- Color (BPOC) individuals in the shelter, which shelter was she referring to. Bargar answered there is currently only one shelter in the system, operated by St. John’s Community Services (SJCS). Any data collected from the only other shelter, operated by the Advocacy Center of Tompkins County, does not get shared. McGonigal asked how many shelter beds are available. Bargar replied SJCS has 20 on-site beds, year- round, but it tends to be flexible. Periodically, other spaces (e.g., congregate shelter spaces, local motels) are made available during high-volume periods and cold weather. McGonigal talked about problems related to people who come in from outdoors and not having basic items, like household supplies, huge problem when arthaus first opened. Are agencies that help with that. Bargar responded a variety of organizations provide those types of supplies (e.g., Catholic Charities, Neighbor-to-Neighbor, Salvation Army, Finger Lakes ReUse, Inc.), but there is no coordination between organizations, nor are homeless populations specifically targeted. Graham asked if sexual offenders are especially at risk of homelessness and if that poses a problem. Bargar replied only two populations are categorially ineligible for Federally funded housing programs: (1) people on the lifetime sex offender registry; and (2) people convicted of methamphetamine production in any Federal government-assisted housing. VII. Economic Development Committee (EDC) A. Loan Assistance to BSJ Holdings, Inc., Tres Leches Speakeasy (CD-RLF #47) — Resolution Proulx moved, seconded by Graham: Loan Assistance to BSJ Holdings, Inc. (d/b/a Tres Leches/Dos Amigos) — (CD-RLF Project #47) WHEREAS, on December 15, 2022, BSJ Holdings, Inc. (“Borrower”) applied for $100,000 in loan assistance from the IURA to expand the Dos Amigos restaurant to add an approximately 900 sf speakeasy-style tequila and mescal cocktail bar in the vacant lower level of the restaurant located at 403 College Avenue, Ithaca, NY, and WHEREAS, the primary objective of the Community Development Revolving Loan Fund (CD-RLF) is provision of direct financing for economic development activities that create employment opportunities, facilitate the expansion of business activity with the City of Ithaca and expand the commercial and industrial tax base, and IURA Minutes February 23, 2023 Page 14 of 22 WHEREAS, a food and beverage business is only eligible for CD-RLF loan assistance if the business derives 35% or less of revenues from sale of alcoholic beverages and scores at least 100 points on the IURA restaurant eligibility worksheet that evaluates risk and community benefit characteristics, and WHEREAS, the restaurant/speakeasy business is projected to derive less than 35% of revenues from sale of alcoholic beverages and received a staff score of over 100 points on the IURA restaurant eligibility worksheet, and WHEREAS, the proposed uses of project funds are: $185,500 Construction $38,000 Professional Fees including the Construction Management Fee $19,000 Furniture, Fixtures and equipment $13,000 Inventory/Supplies $30,000 Working Capital $285,500 Total, and WHEREAS, the proposed sources of project funds are: $60,000 Equity $50,000 Chase Line of Credit $38,000 Intuit Financing $37,500 Square Financial $100,000 IURA $285,500 Total, and WHEREAS, the IURA Economic Development Policy Financing Guidelines and Operating Plan for the Priority Business Loan Fund requires creation at least one full-time equivalent (FTE) job for every $35,000 of loan assistance and sets a maximum loan amount of $100,000 for retail businesses, and WHEREAS, the project is anticipated to create at least 3.5 FTE employment positions, resulting in $28,500 of loan assistance per job created/retained, and WHEREAS, under The National Environmental Protection Act (NEPA), the project is categorized as a Categorically Excluded Activity under 58.35(a)(3)(iii) subject to compliance with a limited number of Federal laws and authorities, and WHEREAS, an interior renovation of an existing commercial lease space at 403 College Avenue, the project complies with all applicable Federal regulations and authorities and converts to an exempt use, and WHEREAS, positive risk factors include: 1. The business concept appears to be well thought-out and responsive to current market conditions and synergistic with public investments in the College Avenue corridor; 2. The Tres Leches venture can operate with very little increase to overhead, as their rent already covers the space; IURA Minutes February 23, 2023 Page 15 of 22 3. Borrower has operated the Dos Amigos restaurant with modest success in the same location for 3 years through a difficult business period; 4. Projected cash flow coverage of 2:1 in the first year of operations, with a stress test indicating moderate margin of error; 5. Owners/Guarantors offer substantial financial support with significant liquidity; 6. Management has relevant education and real-world experience in both the industry and the market, education and excellent credit history, and WHEREAS, negative risk factors include: 1. Reliance on aggressive financial projections to meet debt obligations; 2. Collateral shortfall; 3. Construction risk of rehabilitation; 4. Non-IURA financing sources carry high interest rates that could strain cash flow in years 1 and 2; and WHEREAS, the IURA’s independent loan analyst indicates the loan represents a moderate credit risk to the IURA, and WHEREAS, at its February 14, 2023 meeting, the IURA Economic Development Committee reviewed the loan application and the credit analysis prepared by Michael Thomas, Vice President, Harrison Studio, and recommend the following action; now, therefore, be it RESOLVED, that the IURA hereby approves a loan from the CD-RLF in accordance with the loan application and supplemental submissions, subject to the following terms: Borrower: BSJ Holdings Group, Inc., a New York State domestic corporation established in May 2019 Loan Amount: Up to $100,000 Project: Addition the Dos Amigos restaurant to add a speakeasy-style tequila and mescal focused cocktail bar to be named Tres Leches at 403 College Avenue, Ithaca, NY. Total Project Cost: $285,500 Projected Use of IURA Funds: Soft costs, including professional fees; furniture, fixtures, equipment, inventory and working capital associated with completing the Tres Leches project. Funds cannot be used towards any expenses covered by The Davis-Bacon Act that would trigger prevailing wage requirements. Term & Amortization: Interest-only payments for six (6) months followed by a five-year amortization term. IURA Minutes February 23, 2023 Page 16 of 22 Interest Rate: 5.8% per annum (75% of current Prime rate). Rate is reduced by 50 basis points to 5.3% annually if borrower establishes and continues an automatic loan payment through a financial institution to make timely level monthly payments on the loan beginning with initiation of level monthly loan repayments. The interest rate shall be reduced by 100 basis points upon: (1) submission of satisfactory job reports documenting that the job-creation goal has been achieved for two consecutive quarters; and (2) compliance with all other terms of the loan agreement. Repayment: Interest-only payments for six (6) months, then level monthly payments of principal and interest to fully amortize the loan over 60 months (approximately $1,915/month at an assumed 5.8% interest rate) and subject to a revised P&I amount upon any rate reset. Loan Collateral: General UCC security interest filing (behind Chase) on all business assets, including new equipment, inventory, furnishings, and fixtures now owned or hereafter acquired located at 403 College Avenue, Ithaca, NY. Personal Guarantor(s): 1. Jorge Bouras 2. Wesley Johnston 3. Maria Lourdes Aruqyelles-Bouras 4. Carlos Bouras Job Creation: Creation of at least 3.5 full-time equivalent (FTE) jobs of which at least 51% shall be filled by low- and moderate-income persons. Loan Conditions: 1. Documentation of $60,000 equity funding, which shall be funded in the project on a pro rata basis (20%). 2. Prior to loan execution, borrower shall provide an updated construction budget to align with available funds or show proof of additional funding. Reporting: 1. Annual company Federal tax returns. 2. Internally prepared income/expense statement and balance sheet for the first two years of the loan term. 3. Job creation reporting on a quarterly basis until the job goal is satisfied. 4. Documentation of project match funding. And be it further, RESOLVED, that the Director of Community Development for the IURA is authorized to issue a Loan Commitment Letter in accordance with this resolution, and be it further RESOLVED, that the IURA Chairperson, upon the advice of IURA legal counsel, is hereby authorized to execute all necessary and appropriate documents to implement this resolution. Carried Unanimously: 4-0 IURA Minutes February 23, 2023 Page 17 of 22 B. Committee Chairperson Report Proulx announced that Charlotte Hamilton recently resigned from the Committee and Chuck Schwerin was subsequently appointed to the Committee, so there remains one vacancy. VIII. Governance Committee (GC) A. Independent Contractor One-Year Renewals for Professional Services Proulx moved, seconded by Lewis: 2023 Procurement of Community Development Consulting Services — H. Sicherman/The Harrison Studio WHEREAS, the contract with H. Sicherman/The Harrison Studio (Sicherman) providing community development consulting services, including loan underwriting, expires on February 28, 2023, and WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for procurement of professional services, the IURA selected Sicherman through a Request for Proposals (RFP) selection process in 2021, and WHEREAS, whereas per applicable procurement regulations, a contractor selected through an initial competitive selection process may be renewed for up to two additional one-year terms without undertaking a new competitive selection process, and WHEREAS, a proposed 2023 contract would constitute the first one-year extension of the base independent consultant contract, and WHEREAS, Sicherman submitted a proposal to continue providing community development services to the IURA in 2023 at the following hourly rates: • $185/hour – Harry Sicherman • $145/hour – Michael Thomas (loan underwriting), and WHEREAS, the 2023 rates represent a 0% increase from the current contract rates, and WHEREAS, IURA staff is highly satisfied with the quality of services provided by Sicherman, and WHEREAS, the 2023 IURA budget authorized a total of $10,000 for community development and loan underwriting services, and WHEREAS, on January 27, 2023, the Governance Committee reviewed this matter and recommended the following action; now, therefore, be it IURA Minutes February 23, 2023 Page 18 of 22 RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a one- year contract extension for independent contractor legal services with H. Sicherman/The Harrison Studio, at a maximum hourly rate of $185 per hour with the total amount not to exceed $10,000, and be it further RESOLVED, that the source of such funds for community development consulting services shall be derived from a variety of funding sources, including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the appropriate source of funds for which the services were performed. Carried Unanimously: 4-0 Proulx moved, seconded by Lewis: 2023 Procurement of Independent Legal Services: K. Flaherty WHEREAS, the contract for independent legal services with Krin Flaherty (Flaherty) expires on February 28, 2023, and WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for procurement of professional services, the IURA selected Flaherty through a Request for Proposals (RFP) selection process in 2021, and WHEREAS, per applicable procurement regulations, a contractor selected through an initial competitive selection process may be renewed for up to two additional one-year terms without undertaking a new competitive selection process, and WHEREAS, a proposed 2023 contract would constitute the first one-year extension of the base independent consultant contract, and WHEREAS, Flaherty submitted a proposal to continue providing legal services to the IURA in 2023 at a maximum billing rate of $200 per hour, a 0% increase from the current contract rate, and WHEREAS, the IURA staff is highly satisfied with the quality of legal services provided by Flaherty, and WHEREAS, the 2023 IURA budget authorized a total of $25,000 for legal services; now, therefore, be it RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a one- year contract extension for independent contractor legal services with Krin Flaherty, at a maximum hourly rate of $200 per hour with the total amount not to exceed $4,000, and be it further RESOLVED, that the source of such funds for legal services shall be derived from a variety of funding sources, including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the appropriate source of funds for which the services were performed. Carried Unanimously: 4-0 IURA Minutes February 23, 2023 Page 19 of 22 Proulx moved, seconded by Lewis: 2023 Procurement of Independent Legal Services: M. Geldenhuys WHEREAS, the contract for independent legal services with Mariette Geldenhuys, Attorney-at-Law (Geldenhuys) expires on February 28, 2023, and WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for procurement of professional services, the IURA selected Geldenhuys through a Request for Proposals (RFP) selection process in 2021, and WHEREAS, per applicable procurement regulations, a contractor selected through an initial competitive selection process may be renewed for up to two additional one-year terms without undertaking a new competitive selection process, and WHEREAS, a proposed 2023 contract would constitute the first one-year extension of the base independent consultant contract, and WHEREAS, Geldenhuys submitted a proposal to continue providing legal services to the IURA in 2023 at a maximum billing rate of $245 per hour, a 2.1% increase from the current contract rate of $235 per hour, and WHEREAS, the IURA staff is highly satisfied with the quality of legal services provided by Geldenhuys, and WHEREAS, the 2023 IURA budget recommended a total authorized contract amount of $25,000 for legal services; now, therefore, be it RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a one- year contract extension for independent contractor legal services with Mariette Geldenhuys, Attorney and Mediator, at a maximum hourly rate of $245 per hour with the total amount not to exceed $15,000, and be it further RESOLVED, that the source of such funds for legal services shall be derived from a variety of funding sources, including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the appropriate source of funds for which the services were performed. Carried Unanimously: 4-0 IURA Minutes February 23, 2023 Page 20 of 22 Proulx moved, seconded by Lewis: 2023 Procurement of Independent Legal Services: S. Sulimowicz WHEREAS, the contract for independent legal services with the Law Offices of Sharon Sulimowicz (Sulimowicz) expires on February 28, 2023, and WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for procurement of professional services, the IURA selected Sulimowicz through a Request for Proposals (RFP) selection process in 2021, and WHEREAS, per applicable procurement regulations, a contractor selected through an initial competitive selection process may be renewed for up to two additional one-year terms without undertaking a new competitive selection process, and WHEREAS, a proposed 2023 contract would constitute the first one-year extension of the base independent consultant contract, and WHEREAS, Sulimowicz submitted a proposal to continue providing legal services to the IURA in 2023 at a maximum billing rate of $200 per hour, a 0% increase from the current contract rate, and WHEREAS, IURA staff is highly satisfied with the quality of legal services provided by Sulimowicz, and WHEREAS, the 2023 IURA budget authorized a total of $25,000 for legal services; now, therefore, be it RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a one- year contract extension for independent contractor legal services with The Law Office of Sharon M. Sulimowicz, at a maximum hourly rate of $200 per hour with the total amount not to exceed $6,000, and be it further RESOLVED, that the source of such funds for legal services shall be derived from a variety of funding sources, including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the appropriate source of funds for which the services were performed. Carried Unanimously: 4-0 B. Fifth Amendment to HUD Citizen Participation Plan (CPP) Lewis asked if there would be any delays in requiring HUD approval of Substantial Amendments. Bohn replied, Common Council would need to adopt the amendment first, at which time it would be submitted to HUD. HUD would only reject an amendment if it were an ineligible use of funds. HUD is only concerned with verifying compliance with HUD/Federal regulations. IURA Minutes February 23, 2023 Page 21 of 22 Fleming moved, seconded by Graham: 5th Amendment to HUD Entitlement Citizen Participation Plan: • HUD Approval for Substantial Amendments • Anonymous Public Comments WHEREAS, the Citizen Participation Plan (CPP) establishes the City of Ithaca’s procedures for involving the public in development and implementation of the U.S. Department of Housing and Urban Development (HUD) Entitlement Program, and WHEREAS, staff raised two issues for clarification in the CPP: 1. HUD approval of substantial amendments to a 1-year Action Plan or 5-year Consolidated Plan, and 2. Treatment of anonymous comments received, and WHEREAS, in practice the IURA staff submits substantial amendments to HUD for approval but such regulatory requirement is not specified in the CPP, and WHEREAS, at their January 27, 2023 meeting, the IURA Governance Committee discussed proposed clarifications to the above issues, and recommended the following action: now, therefore, be it RESOLVED, that the IURA hereby recommends the City of Ithaca Common Council adopt a 5th amendment to the City of Ithaca HUD Entitlement Citizen Participation Plan, dated January 27, 2023, that clarifies: 1. that a proposed substantial amendment to a Consolidated Plan or Action Plan requires approval from the U.S. Department of Housing & Urban Renewal (HUD), and 2. that anonymous public comments received will be accepted and treated on a case-by-case basis regarding the specific circumstances involved. Carried Unanimously: 4-0 C. Committee Vice-Chairperson Report None. VIII. Review of Meeting Minutes: January 26, 2023 Graham moved, seconded by Lewis to approve the meeting minutes, with no modifications. Carried Unanimously: 4-0 X. Other/Old Business A. IURA Financials Review: January 2023 Bohn reported there are no significant outstanding loan payment delinquencies. All lease payments are also in good standing, except Southside Community Center (SCC). IURA Minutes February 23, 2023 Page 22 of 22 Bohn reviewed the Grants Summary, explaining that the left-hand “On Schedule” column calls out any projects that are not on schedule and may need attention. Another area of concern is the CDBG timely expenditure deadline, requiring any unexpended CDBG funds cannot exceed 1.5 times the most recent annual HUD CDBG Award, by June 1st of each year. Some CDBG projects have recently caught up with their voucher submissions, which is encouraging. B. Reports: IURA Chairperson, Mayor, Common Council Liaison, & Staff IURA Chairperson None. Mayor’s Report Lewis reported two new Common Council members have been sworn in; and Common Council member Jeffrey Barken has just announced his resignation. Common Council Liaison Report None. Staff Report None. X. Adjournment The meeting was adjourned at 11:05 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.