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HomeMy WebLinkAboutMN-IURA-2024-04-26 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 8:30 A.M., Friday, April 26th, 2024 Common Council Chambers, Third Floor (City Hall) 108 E. Green St., Ithaca, NY 14850 Members: Chris Proulx, Chair; Karl Graham, Vice-Chair; Robert Cantelmo (Mayor); Donna Fleming; Shaianne Osterreich; Ducson Nguyen (Common Council Liaison) [virtual] Excused: None. Vacancies: 0 IURA Staff: Nels Bohn; Anisa Mendizabal [virtual]; Charles Pyott [virtual] City Staff: Lisa Nicholas, Director of Planning & Development Department Guests: None. I. Call to Order Chair Proulx called the meeting to order at 8:48 A.M. II. Agenda Additions/Deletions Proulx observed the 2024 “IURA Audit Committee Election of Vice-Chairperson & Nomination of Chairperson” resolution was not included on the agenda or in the Board’s meeting materials. Cantelmo proposed the resolution be adopted by unanimous consent. No objections were raised. 2024 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: Karl Graham Vice-Chairperson: Donna Fleming, and WHEREAS, at their April 26, 2024 meeting, the IURA Audit Committee called for nominations for Vice- Chair and Chair of the IURA Audit Committee; now, therefore be it Approved: 5/24/24 IURA Minutes April 26, 2024 Page 2 of 12 RESOLVED, that the IURA Audit Committee hereby nominates Karl Graham as Committee Chairman, and be it further RESOLVED, that the IURA Audit Committee hereby elects Donna Fleming as Committee Vice- Chairperson. Carried Unanimously: 4-0 III. Public Comments None. IV. Review of Meeting Minutes: March 1st, 2024 & March 22nd, 2024 Graham moved, seconded by Cantelmo, to approve the meeting minutes, with no modifications. Carried Unanimously: 4-0 V. Governance Committee A. 2023 IURA Financial Audit Fleming explained the 2023 IURA financial audit was reviewed and approved by both the Governance Committee and the Audit Committee. Fleming moved, seconded by Cantelmo: Approval of 2023 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 2023 IURA financial report on March 27, 2024, and WHEREAS, at its April 19, 2024 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, 2023 through December 31, 2023, prepared by the accounting firm of Insero & Company, LLP. Carried Unanimously: 4-0 IURA Minutes April 26, 2024 Page 3 of 12 B. Review of Investment Guidelines Fleming explained that the investment guidelines were reviewed and approved by the Governance Committee. Fleming moved, seconded by Graham: Approval of IURA Investment Guidelines WHEREAS, pursuant to the Public Authorities Accountability Act, as amended, the IURA is required on an annual basis to review its investment guidelines and report, and WHEREAS, the IURA originally adopted Investment Guidelines on March 25, 2011, and WHEREAS, the Director of Community Development prepared an annual 2023 IURA Investment Report, and WHEREAS, at their April 19, 2024 meeting, the IURA Governance Committee reviewed the IURA Investment Guidelines and the 2023 Investment Report; now, therefore, be it RESOLVED, that the IURA hereby reaffirms its approval of the IURA Investment Guidelines. Carried Unanimously: 4-0 C. Review of IURA Mission Statement Fleming explained that the Board reviewed the IURA mission statement in 2023 and agreed to include some additional language regarding equity and inclusivity. Fleming moved, seconded by Graham: Affirm IURA Mission Statement WHEREAS, the Ithaca Urban Renewal Agency (IURA) adopted the following amended mission statement on October 27, 2023: The Ithaca Urban Renewal Agency secures and manages resources to improve the social, physical and economic characteristics of the City of Ithaca by expanding access to quality affordable housing, strengthening neighborhoods and the local economy, and supporting other community development activities. The IURA is committed to carrying out its mission in an equitable and sustainable manner, and to build and maintain an inclusive community with the input of the people and organizations we serve. WHEREAS, Public Authorities Law requires authorities, such as the IURA, to conduct annual review of its mission statement and post its mission statement on its website, and WHEREAS, at its April 19, 2024 meeting, the IURA Governance Committee reviewed the IURA Mission Statement and recommends the following action; now, therefore, be it RESOLVED, that the IURA hereby reaffirms the IURA mission statement. Carried Unanimously: 4-0 IURA Minutes April 26, 2024 Page 4 of 12 D. 2023 Public Authorities Law Reporting Fleming noted that the Governance Committee reviewed and approved the IURA’s reports to the New York State Authorities Budget Office (ABO). Fleming moved, seconded by Cantelmo: Approval of Reports Submitted to NYS Authorities Budget Office (ABO) WHEREAS, pursuant to the Public Authorities Accountability Act, 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 19, 2024, the IURA Governance Committee reviewed the reporting and recommends the following action; now, therefore, be it RESOLVED, that the IURA hereby approves FY2023 IURA public authority reports submitted to the New York State Authorities Budget Office, including the following reports: • Budget report • Annual report • Procurement report • Investment report • Certified financial audit report Carried Unanimously: 4-0 E. Transfer of 334 E. M.L.K., Jr./State St. Property to City of Ithaca Bohn explained that the IURA has owned the property since 1968. When IURA staff started receiving $100 stormwater utility bills from the City, he asked Proulx if there were any potential value in retaining the property. Bohn and Proulx both agreed there is not. The resolution was discussed and approved by the Governance Committee. The City has already expressed its willingness to accept the property. Fleming moved, seconded by Proulx: Transfer of 334 E. M.L.K., Jr./State Street to City of Ithaca WHEREAS, in 1968, the Ithaca Urban Renewal Agency acquired an approximately 414 sq. ft. parcel of land located at 334 E. M.L.K., Jr./State Street (tax map #69.-1-5.2), and IURA Minutes April 26, 2024 Page 5 of 12 WHEREAS, the parcel was presumably acquired as part of an urban renewal project to facilitate development of the “Tuning Fork” Rte. 79 highway project establishing and linking one-way couplets along Green and Seneca Streets with tow-way E. State Street circa 1964, and WHEREAS, the parcel is located within a landscaped traffic island maintained by the City of Ithaca, and WHEREAS, the parcel has an assessed value of $1,000 and is exempt from property taxes, and WHEREAS, the parcel is subject to an annual $103/year storm water fee, and WHEREAS, the parcel is not appropriate for development and the IURA derives no beneficial use of the property, and WHEREAS, City officials have indicated willingness to accept ownership of the parcel, and WHEREAS, the transfer or sale by a public agency of more than 2.5 contiguous acres of land is an unlisted action in the City of Ithaca Environmental Quality Review Ordinance, and WHEREAS, at their April 19, 2024 meeting, the IURA Governance Committee considered this matter and recommends the following; now, therefore be it RESOLVED, that the IURA hereby declares itself as Lead Agency for environmental review of the proposed action, and be it further RESOLVED, that the IURA, acting as Lead Agency in this matter, hereby determines that the proposed action at issue will not have significant effect on the environment, and that further environmental review is unnecessary, and be it further RESOLVED, that the IURA hereby authorizes transfer of ownership of property located at 334 E. M.L.K., Jr./State Street (tax map #69.-1-5.2), at no cost, to the City of Ithaca, and be it further RESOLVED, that the IURA Chairperson, subject to review by IURA legal counsel, is hereby authorized to execute any and all documents to implement this resolution. Carried Unanimously: 4-0 (Osterreich arrived at 9:01 a.m.) F. Defense & Indemnification Policy Bohn explained that the IURA has always purchased Directors and Officers insurance, but it never established a formal policy, which is required by the State. IURA Minutes April 26, 2024 Page 6 of 12 Fleming moved, seconded by Cantelmo: IURA Policy — Indemnification of Agency Members WHEREAS, section 2824 of Public Authorities Law (PAL) establishes roles and responsibilities of board members of public authorities, and WHEREAS, subsection 2896(1)(f) requires public authorities to adopt a defense and indemnification plan and disclose such plan to any and all prospective board members, and WHEREAS, as an on-going practice, the IURA maintains a Directors and Officer’s insurance policy with the following coverage levels: • Public Officials Liability: $1,000,000 per claim • Legal Defense: $50,000 per claim • Employee Practices Liability: $1,000,000 per claim • Retention (deductible): $7,500 Per claim WHEREAS, at its April 19, 2024 meeting, the IURA Governance Committee discussed this matter and recommended the following action; now, therefore be it RESOLVED, that the IURA hereby adopts the following defense and indemnification policy: To the extent permitted by law, the Agency members, officers, committee members, employees and appointed volunteers of the Agency, when acting in their official capacity, shall be defended, indemnified and held harmless against all cost, damage and expense actually and personally incurred by or imposed upon them in connection with the defense of any action, suit or proceeding, or any other matter having to do with their acts or conduct in such capacity. The Agency shall be required to purchase and maintain appropriate Directors and Officers (D&O) liability insurance coverage. Notwithstanding the above, this policy shall not apply to any claim arising from or relating to the exclusions listed in the Agency’s D&O liability insurance policy, including but not limited to: • The performance of any willful misconduct or dishonest, fraudulent, criminal or malicious act; • The willful violation of any law, statute, ordinance, rule or regulation; • Gaining any profit, remuneration or advantage to which such insured person is not legally entitled; and • Sexual abuse and molestation, including the allowance of or failure to prevent, stop, detect or reveal sexual abuse and molestation. Carried Unanimously: 5-0 G. Committee Vice-Chairperson Report None. IURA Minutes April 26, 2024 Page 7 of 12 VI. Neighborhood Investment Committee (NIC) A. Community-Based Development Organization (CBDO) Designations: 1. Finger Lakes ReUse, Inc. (FLRU) Graham explained that the IURA designates CBDOs on an annual basis. Since he did not attend the Committee’s April 2024 meeting, Mendizabal or Osterreich may be able to provide more detail about the Committee’s discussion. The primary advantage to CBDO status is that CBDOs are exempt from the 15% funding cap on Public Services projects. Each candidate organization must meet a series of criteria, which IURA staff reviews. Proulx asked if an existing CBDO happened to apply to the IURA for funding a different project in 2025, whether its CBDO status would also apply to that project. Bohn replied, HUD only requires that an organization qualify as a CBDO prior to any funding commitment (and that the funded project fits into one of three categories). Graham moved, seconded by Cantelmo: 2024 IURA Designation of Finger Lakes ReUse, Inc. (ReUse) As 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 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 IURA Minutes April 26, 2024 Page 8 of 12 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 “Building Quality Career Paths 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 “Building Quality Career Paths through Reuse” as eligible for CDBG funding under the category of “Special Activities by CBDOs.” Carried Unanimously: 5-0 2. Greater Ithaca Activities Center (GIAC), Inc. Graham moved, seconded by Osterreich: 2024 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 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 26, 2024 Page 9 of 12 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 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” 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” as eligible for CDBG funding under the category of “Special Activities by CBDOs.” Carried Unanimously: 5-0 3. Historic Ithaca, Inc. Graham moved, seconded by Osterreich: 2024 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 IURA Minutes April 26, 2024 Page 10 of 12 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 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, that the IURA determines that Historic Ithaca meets the requirements for eligibility as a CBDO, and that the Historic Ithaca Job Skills Training project qualifies as an eligible CBDO activity, and be it further RESOLVED, that the IURA hereby designates Historic Ithaca as a Community-Based Development Organization (CBDO) and “Historic Ithaca Work Preserve Job Placements” as eligible for CDBG funding under the category of “Special Activities by CBDOs.” Carried Unanimously: 5-0 IURA Minutes April 26, 2024 Page 11 of 12 B. Committee Chairperson Report Osterreich reported that at its last meeting the Committee viewed a presentation on the City’s “Ithaca Downtown Plan,” followed by a robust discussion. Committee members were particularly interested in whether any public input received extends down to the individual neighborhood level, to ensure marginalized communities are represented in the feedback process. The Committee also discussed a March 19, 2024 letter from the Ithaca City School District (ICSD) announcing that, “due to constraints of New York State law concerning the use of public school funds,” it is terminating its involvement in the Housing for School Success (HSS) program and that “continuing to allocate resources to the program is untenable.” VII. Economic Development Committee (EDC): Committee Chairperson Report Proulx reported that at its last meeting the Committee discussed the City’s “Ithaca Downtown Plan.” The Committee believed the plan contains too many goals listed as “priorities.” It also discussed how to prioritize different types of economic development activities. VI. New/Other/Old Business A. Review of IURA Financials: March 2024 Bohn reviewed the Grants Summary, explaining the left-hand “On Schedule” column calls out any projects (with a ) that are not progressing on schedule and may need attention. It is still uncertain if the IURA will meet its annual CDBG spend-down ratio deadline, although it will be very close. All loan payments are current as of today. All lease payments are also current as of today. Bohn remarked the “Summary Balance Sheet” in the agenda materials illustrates with yellow highlights the correlation between specific fund balances and both the Grants Summary and Loan Repayment reports. B. REPORTS: IURA Chair, Mayor, Common Council Liaison, & Staff Mayor’s Report Cantelmo announced there will be an Open House on May 2nd for the City’s “Ithaca Downtown Plan,” from 4:00-7:00 p.m. at Tompkins County Public Library (TCPL). IURA Chairperson None. Common Council Liaison Report None. Staff Report Bohn reported that the Asteri affordable housing project and conference center are both moving towards completion, sometime after Memorial Day. Bohn remarked that Mendizabal has done a considerable amount of work on the 2024-28 Consolidated Plan, which has been posted to the web site. He thanked her for all the work she has put into it. VII. Adjournment The meeting was adjourned by consensus at 9:40 A.M. IURA Minutes April 26, 2024 Page 12 of 12 — END — Minutes prepared by C. Pyott, edited by N. Bohn.