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HomeMy WebLinkAboutMN-IURA-2024-10-25 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 8:30 A.M., Friday, October 25th, 2024 Common Council Chambers, Third Floor (City Hall) 108 E. Green St., Ithaca, NY 14850 Members: Robert G. Cantelmo (Mayor), Chair; Karl Graham, Vice-Chair; Siobhan Hull; Donna Fleming; Shaianne Osterreich Excused: None. Vacancies: 0 Common Council Liaison: Ducson Nguyen [virtual] IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual] City Staff: Lisa Nicholas, Director of Planning & Development Guests: None. I. Call to Order Chair Cantelmo called the meeting to order at 8:31 A.M. II. Agenda Additions/Deletions None. III. Public Comments None. IV. Review of Meeting Minutes: August 23rd, 2024 Fleming moved, seconded by Graham, to approve the meeting minutes without modifications. Carried Unanimously: 5-0 V. Neighborhood Investment Committee (NIC) A. HUD Entitlement, Request for Time Extension: Aurora St. & Morris Ave. Revitalization (2022, #4) Graham explained that there were complications with these Habitat for Humanity of Tompkins & Cortland Counties (Habitat) projects, funded from the 2022 Entitlement Annual Action Plan for the City of Ithaca. One homeowner withdrew, there were construction delays related to personnel, and unexpected asbestos was discovered at one of the properties. Habitat previously requested an extension through the end of October, which was approved. Approved: 11/22/24 IURA Minutes October 25, 2024 Page 2 of 7 An additional extension to the end of July 2025 has been requested. The Committee reviewed the circumstances and spoke with the Executive Director of Habitat, who expressed confidence that, for both properties, all of the issues will be resolved, construction will be finished, and homeowners will be in place by July 31, 2025. The Committee recommends that the request for additional extension be granted. Fleming asked if the Committee raised any particular concerns. Graham replied, no, the Committee has interacted with the organization before, and the Executive Director expressed confidence in the timeline. Graham moved, seconded by Osterreich: 2022 Project #4: “Aurora St. & Morris Ave. Revitalization” (Habitat) — Contract Extension WHEREAS, as Project #4 of the 2022 Entitlement Annual Action Plan for the City of Ithaca, Habitat for Humanity of Tompkins & Cortland Counties (Habitat) was funded for “Aurora St. & Morris Ave. Revitalization” to rehabilitate two residential structures in the City of Ithaca and offer them for affordable home ownership, and WHEREAS, the contract expiration date for Project #4 “Aurora St. & Morris Ave. Revitalization” was June 30, 2024, and WHEREAS, in discussion with IURA Staff, Habitat identified project delays caused by change in the identified candidate for homeownership and labor shortages that slowed progress, and WHEREAS, via correspondence dated July 10, 2024, Habitat requested a 120-day extension to its contract, and WHEREAS, per Section 8.5 of the funding agreement, the IURA Community Development Director authorized the request, extending the contract to October 28, 2024, and WHEREAS, Habitat anticipated need for further extension and discussed the matter with the IURA Neighborhood Investment Committee at its September 2024 meeting, WHEREAS, the IURA Neighborhood Investment Committee reviewed this matter and recommends the following, now, therefore be it, RESOLVED, that the IURA authorizes a time extension to July 31, 2025 to the funding agreement with Habitat for Project #4 “Aurora St. & Morris Ave. Revitalization,” and be it further RESOLVED, that the IURA Chair is authorized to execute a Contract Amendment(s) to implement this resolution. Carried Unanimously: 5-0 IURA Minutes October 25, 2024 Page 3 of 7 B. HUD Entitlement, Program Amendment #2 to 2023 Action Plan: Project #11, Shared Kitchen Ithaca, Modification of Project Sponsor Graham explained that this proposed amendment to the 2023 Action Plan is the Shared Kitchen Ithaca project. While Friends of the Ithaca Farmers Market were the project sponsors when this was put forward, the intent was always to form a separate organization, which has now been formed. Shared Kitchen Ithaca has formed a board and obtained a not-for-profit designation from the IRS. The request is that Friends of the Ithaca Farmers Market be removed as project sponsors and Shared Kitchen Ithaca take over as the project sponsor. IURA staff reviewed the paperwork and IRS certifications and determined that the organization meets all the requirements. There are no changes to the project other than the change in project sponsor. The Committee recommends adopting this resolution to change the project sponsor as requested. Graham moved, seconded by Fleming: Program Amendment #2 to 2023 HUD Action Plan: Project #11, “Shared Kitchen Ithaca (SKI) — Food Product Microenterprise Development” Modification of Project Sponsor WHEREAS, the City of Ithaca’s 2023 HUD Entitlement Action Plan included an allocation of $32,500 in CDBG Funds for Project #11, “Shared Kitchen Ithaca (SKI): Food Product Microenterprise Development,” (Project #11) to provide funding towards 50% rent subsidy for use of a licensed shared commercial kitchen by 10 LMI microenterprises, and WHEREAS, Friends of Ithaca Farmers Market (Friends of IFM) agreed to act as the fiscal sponsor for the project to be implemented by a new organization called Shared Kitchen Ithaca, and WHEREAS, Friends of IFM was named in the funding commitment and project contract as project sponsor for Project #11, “Shared Kitchen Ithaca (SKI): Food Product Microenterprise Development,” and WHEREAS, Shared Kitchen Ithaca, Inc. has since formed a Board of Directors, incorporated, and been determined by the Internal Revenue Service (IRS) to be exempt from federal income tax as a public charity, and WHEREAS, IURA Staff has received and reviewed documentation attesting to SKI’s nonprofit status and eligibility, including but not limited to: • Articles of Incorporation, • Bylaws, • Minutes of the Organizational Meeting of the Board of Directors, • Board of Directors & Officers List, • New York State Certification of Incorporation and Filing Receipt, and • IRS Determination Letter, and WHEREAS, Friends of IFM has no direct responsibilities for the implementation of Project #11, and WHEREAS, Friends of IFM has requested Project Sponsorship and the associated contractual obligations be transferred to Shared Kitchen Ithaca, Inc., and IURA Minutes October 25, 2024 Page 4 of 7 WHEREAS, the proposed modification of project sponsorship does not change the goals, scope, beneficiaries, or funded amount of Project #11, thus qualifying as a non-substantive (minor) program amendment for which the IURA has authority to adopt per the City of Ithaca HUD Citizen Participation Plan, and WHEREAS, the IURA Neighborhood Investment Committee has reviewed the request to modify Project #11’s sponsorship and recommends the following, now, therefore be it RESOLVED, that the IURA hereby adopts Program Amendment #2 to the 2023 Action Plan to transfer Project Sponsorship duties from Friends of IFM to Shared Kitchen Ithaca, Inc. for project #11, Shared Kitchen Ithaca: Food Product Microenterprise Development. Carried Unanimously: 5-0 C. Committee Chairperson Report Osterreich reported that the Committee had a highly informative exchange with Lynn Truame, Director of Real Estate Development, Ithaca Neighborhood Housing Services, Inc. (INHS), about tax-credit financing for low-income housing. VI. New/Other/Old Business A. Preliminary Proposed 2025 IURA Budget: Review & Refer to Governance Committee Bohn explained that under the New York State Public Authorities Law, IURA has an annual obligation to submit a proposed budget to the Authorities Budget Office (ABO) by November 1st. He recommended that the Board review the proposed budget at a high level to determine if it is suitable for submission to the ABO and refer it to the Governance Committee for more in-depth analysis and make a recommendation in November. He noted that the proposed budget is close to a break-even and discussed the impact of inflation on program funding and expenses, including salaries and benefits. Osterreich moved, seconded by Graham, to refer the proposed budget to the Governance Committee. Carried Unanimously: 5-0 B. FY2025 Action Plan Schedule: Review Mendizabal referenced the 2025 City of Ithaca HUD Entitlement Grant Proposed (Draft) Action Plan Schedule and reviewed meetings at which Committee members must be present. C. HOME-ARP Status Review: Report • HOME-ARP Allocation Plan • HOME-ARP Policies & Procedures • HOME-ARP RFQ Mendizabal explained that HOME-ARP is a unique one-time HUD program that was allocated using American Rescue Plan funds to disburse to entitlement communities to reduce homelessness and increase housing stability. The first step, which was completed, was to create an Allocation Plan using needs assessment and public input and review gaps to determine the four categories for which the City wanted to use the funds. IURA Minutes October 25, 2024 Page 5 of 7 Among the four eligible uses, the City allocated the bulk of the funds ($970,000) toward Supportive Services, which are more flexible in this program than other programs, including rental assistance and arrears in addition to other traditional services. The City’s goals are to support a housing surge for people who are currently unhoused and to provide preventative services to assist people who have a history of homelessness, are currently housed, and are in vulnerable situations that could lead to becoming homeless again. A Policies & Procedures manual has been created. The Request for Qualifications for a Subrecipient Service Provider to design and implement a program that could meet the City’s Goals was released September 19, 2024. Two applicants submitted responses by the deadline of October 18, 2024. The review committee, consisting of an IURA board member, a member of the Governance Committee, and IURA staff, met to discuss the responses and create a list of questions. Both applicants will be invited to interviews in November or later if needed. The review committee will recommend whether to enter into negotiations directly with one of these two parties or to go through a formal request for proposals where they create a more fleshed-out version of the draft implementation plan that they submitted to us. Hull asked if it is possible to provide funding to both applicants or if only one applicant must be chosen. Mendizabal replied that while possible, the preference is to have the lead applicant select its subcontractors, ensure expenses are compliant, and organize all paperwork for submission to IURA. With two parties selected that did not choose one another, the design may not be as well-aligned as when a lead applicant chooses its partners. Osterreich asked how this program will impact the City’s emergency Code Blue and the closure of St. John’s emergency shelter. Mendizabal replied that depending on what happens with the emergency shelter and Code Blue, there may be more people outside when the needs assessment is done, in which case the service provider may have to adapt an outreach plan and determine how many people can be surged into housing with the limited funds available and balance that with the goal of preventing homelessness among people that are house. Bohn added that complete information regarding St. John’s is not yet available. He explained that HOME- ARP funds currently cannot be used for congregate emergency shelters. Though it can be used to develop non-congregate shelters, the choice was made two years ago to pursue supportive services, partially because the funding is not sufficient to create a non-congregate shelter, and supportive services are more responsive to the higher percentage of people who secure housing go back to homelessness. Mendizabal added that the HOME-ARP Allocation Plan can be amended. However, the required process includes publicly posting a revised plan, public comment, and a vote by the Common Council. Graham noted that the Request for Qualifications was developed before the announcement of the closure of St. John’s emergency shelter and may impact the applicants’ supportive services design. D. Review of IURA Financials: September 2024 Bohn reviewed the Grants Summary, explaining that the left-hand “On Schedule” column calls out any projects (with a ) that are not progressing on schedule and may need attention. He reported that, for the most part, all projects are on schedule, noting that housing projects take longer because of the lead time on construction. He highlighted the INHS Sears Street project, which is actively underway. IURA Minutes October 25, 2024 Page 6 of 7 Bohn reported that all payments are current for the loans listed on the Loan Repayments report. Bohn reviewed the Lease Payments Due to IURA as of September 2024. He explained that though Allpro Parking payments are shown as past due since September, payments are current as of this date. Payments from Southside Community Center-RIBS have been past due since July. A payment reminder has been sent. He noted that the current location will be unavailable to RIBS as of January 2025, and they are looking for alternative locations. E. REPORTS: IURA Chair, Mayor, Common Council Liaison, & Staff Mayor’s Report Cantelmo reported that a community outreach event regarding Accessory Dwelling Units in the City of Ithaca is scheduled for October 30, 2024, from 4 p.m. to 6 p.m. He reiterated that no proposed legislation is being presented at this time. Nicholas added that the legislation proposal will come out of the comments from the event. She noted that the presentation will be recorded and posted on the City’s website, and there will be an opportunity to participate remotely. IURA Chairperson Report Cantelmo expressed gratitude to everyone in the community and the staff who assisted with drafting the Downtown Revitalization Initiative Grant Application submitted to the Department of State on October 18, 2024. Cantelmo shared that the City’s budget amendments were finalized on October 24, 2024, and the budget has been referred to the Common Council for a final hearing and vote. He noted that included in the budget is that the capital project for unhoused support was increased from $550,000 to $800,000. The project's scope has not yet been determined; this is an authorization to create the capital project account. Common Council Liaison Report Nguyen reported that the IDA approved the incentive package for SouthWorks after plan revisions were made to address community concerns and provide an opportunity to review progress in five (5) years and adjust the incentive, as necessary. Staff Report Bohn reported that the sale of 309 College Avenue, part of the East Hill Fire Station project, was not completed, and the City terminated the remainder of the agreement. A sealed bid was issued for the sale of the College Avenue property, which will become surplus upon occupancy of the newly constructed fire station planned for July 1, 2025. When the open bid process ends on December 19, 2024, the highest bidder who meets the minimum qualifications will be awarded. The minimum bid is $4.75 million. Bohn reported that construction of the Ithaca Gun housing project site, known as “The Breeze,” is moving forward. The Department of Environmental Conservation (DEC) has gone beyond its obligations in remediating contamination at the site. There is still remediation work to be done at the adjacent smokestack parcel, and DEC plans to address groundwater contamination with well injections. IURA Minutes October 25, 2024 Page 7 of 7 Bohn mentioned that related to the historic plume of trichloroethylene (TCE) into the Fall Creek neighborhood, DEC has been very proactive with testing and monitoring, has provided radon systems for affected properties, and will check to make sure those systems are functioning correctly, and that the sub- slab depressurization systems are actively working. Bohn reported that the award for the Stately Apartments project at 510 West State Street, an affordable low-income tax credit project for which IURA received an award in prior years, was insufficient to construct the facility after a time-lapse. Another grant from the State was awarded. They are scheduled to close on the financing in late November and begin the project. Of the 57 apartments, 20 will be reserved for supportive housing units, 15 for people experiencing homelessness, and five for unhoused victims of domestic violence. VII. Adjournment The meeting was adjourned by consensus at 9:38 A.M. — END — Minutes prepared by S. Dean, edited by C. Pyott/N. Bohn.