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HomeMy WebLinkAboutMN-IURA-2024-05-24 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 8:30 A.M., Friday, May 24th, 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); Shaianne Osterreich; Ducson Nguyen (Common Council Liaison) Excused: Donna Fleming Vacancies: 0 IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual] City Staff: None. Guests: Kate Donohue, Cinemapolis 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. Review of Meeting Minutes: April 26th, 2024 Osterreich moved, seconded by Graham, to approve the meeting minutes, with no modifications. Carried Unanimously: 4-0 V. Economic Development Committee (EDC) A. Consent to Assign Lease at 120 E. Green Street from Cayuga Green, LLC to Cinemapolis Proulx explained that the IURA adopted two prior resolutions providing rental assistance to Cinemapolis, while it was developing its financial sustainability plan. Cinemapolis has also been working on buying out its lease with Cayuga Green, LLC, which today’s proposed resolution addresses. Approved: 7/26/24 IURA Minutes May 24, 2024 Page 2 of 8 Donohue remarked that occupancy costs have been a substantial challenge for Cinemapolis, for which it has received relief from the IURA over the last year and a half. Cinemapolis, as a sub-tenant of the leasehold between Cayuga Green, LLC and IURA, is taking an important step towards a long-term solution by buying out Cayuga Green, LLC’s leasehold, making Cinemapolis a direct tenant of IURA. This will reduce its occupancy costs going forward. Under the current triple-net lease agreement with Cayuga Green, LLC, Cinemapolis has already been responsible for the vast majority of maintenance, but it is confident the amount of savings going forward would be worth any additional responsibilities. Donohue added the purchase will be funded through a combination of money and sources: (1) $100,000 from the Tompkins County Tourism Board to cover the down- payment; (2) a low-interest loan from the Park Foundation; and (3) a mortgage from Tompkins Community Bank secured by the leasehold. The proposal is very manageable and would also benefit the IURA by establishing a long-term tenant relationship with Cinemapolis. Osterreich asked if the premises are currently owned by the City. Donohue responded, when Cinemapolis first entered the space, the building was owned by the City and the space was developed by Cayuga Green, LLC, which became the theatre’s landlord. When the garage was subsequently renovated, bonds were issued to fund the project and ownership of the building was conveyed from the City to the Vecino Group. After approximately 30 years, the City would then reacquire ownership of the building. The lease that existed between the IURA and Cayuga Green, LLC was not subject to that conveyance; so Cinemapolis has been leasing from Cayuga Green, LLC, which leases it from the IURA. Proulx moved, seconded by Cantelmo: Consent to Assignment of Cinema Lease from Cayuga Green, LLC to Cinemapolis WHEREAS, on May 6, 2024, Seventh Art Corporation of Ithaca (Cinemapolis) submitted a request for the IURA to (1) consent to the assignment of the lease of the cinema lease premises located on the ground floor of the Green Street parking garage from Cayuga Green, LLC to Cinemapolis, (2) release Cayuga Green, LLC from any further obligations under the lease following the assignment, and (3) extend the term of the lease to June 28, 2054, and WHEREAS, on July 24, 2007, the IURA entered into an agreement to lease 10,947 square feet of the Green Street Garage to Cayuga Green, LLC (Premises) for a cinema use, and WHEREAS, Cayuga Green, LLC subleases the Premises to Cinemapolis, and WHEREAS, the effective commencement date of the IURA lease to Cayuga Green, LLC was April 29, 2009, and provides for a 15-year lease with two 10-year renewals at the option of the lessee, which if exercised will extend the lease term through April 28, 2044; and WHEREAS, Cinemapolis entered into a purchase and sale agreement dated April 30, 2024 (Purchase Agreement) with Cayuga Green, LLC for assignment of the lease between the IURA as lessor and Cayuga Green, LLC as lessee for ground floor cinema lease space at 120 E. Green Street, and IURA Minutes May 24, 2024 Page 3 of 8 WHEREAS, the Purchase Agreement contains a seller contingency for closing that Cinemapolis obtain the IURA’s consent to the assignment of the IURA lease to Cinemapolis and IURA provide a written release of Cayuga Green, LLC from all prospective Lessee obligations under the IURA lease, and WHEREAS, the Purchase Agreement is anticipated to enhance the long-term financial sustainability of Cinemapolis and was one component of the Downtown Ithaca Alliance’s 2023 Cinemapolis Assistance Plan that was endorsed by the IURA; and WHEREAS, the IURA Economic Development Committee reviewed this matter at their May 13, 2024 meeting, and recommends the following action; now, therefore, be it RESOLVED, that the IURA hereby approves the requests from Cinemapolis and authorizes the IURA Chair, subject to IURA legal counsel review, to execute an Assignment and Assumption of Lease and Landlord’s Consent agreement by and between Cayuga Green, LLC and Seventh Art Corporation of Ithaca, d/b/a Cinemapolis and the IURA, and be it further RESOLVED, that the IURA Chair is hereby authorized, subject to IURA legal counsel review, to execute a release of Cayuga Green, LLC from all prospective Lessee obligations under the IURA lease of the Premises; and be it further RESOLVED, that following the closing of the Purchase Agreement, the IURA hereby authorizes the IURA Chair to execute an amendment to the lease agreement between the IURA and Seventh Art Corporation of Ithaca to allow for an additional renewal period to extend the term through June 27, 2054. Carried Unanimously: 4-0 B. Appointment of Committee Chairperson Proulx explained the Committee elected Leslie Ackerman as its Vice-Chairperson and nominated him to continue serving as Chairperson. Proulx moved, seconded by Cantelmo: 2024 Election of Committee Officer — Economic Development Committee WHEREAS, the IURA By-laws provide that the committee membership shall elect its own committee Vice-Chairperson and nominate to the IURA Board a member to serve as Chairperson of the Committee, and WHEREAS, IURA By-laws further require at least one officer must be an IURA member, 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 Chairperson and Vice-Chairperson are Chris Proulx and Leslie Ackerman, respectively, and IURA Minutes May 24, 2024 Page 4 of 8 WHEREAS, at their May 13, 2024, meeting, the Economic Development Committee elected Leslie Ackerman as Vice-Chairperson and nominated Chris Proulx as Chairperson; now, therefore, be it RESOLVED, that the IURA hereby appoints Chris Proulx as Chairperson of the Economic Development Committee. Carried Unanimously: 4-0 C. Committee Chairperson Report None. VI. Neighborhood Investment Committee (NIC) A. HUD Entitlement Program 1. Adopt 2024-2028 Consolidated Plan Graham explained every five years HUD requires the City/IURA to develop a Consolidated Plan, which identifies priority community development needs for the City. Graham noted the seventh “Whereas” clause should actually refer to the 2024-2028 Consolidated Plan (not the Assessment of Fair Housing). Graham moved, seconded by Cantelmo (as amended): 2024-2028 Consolidated Plan Adoption — HUD Entitlement Program WHEREAS, in 2003, the U.S. Department of Housing and Urban Development (HUD) notified the City that it qualified as an ‘Entitlement Community’ and it would be receiving an annual allocation of HUD funds through the Community Development Block Grant Program (CDBG) and HOME Investment Partnerships (HOME) Program, and WHEREAS, in order to access these funds, the City is required to undertake a public input process and prepare a Consolidated Plan which identifies priority community development needs for the City of Ithaca, every five years, and WHEREAS, the City’s fifth Consolidated Plan is required to be submitted to HUD by June 15, 2024, and WHEREAS, the City contracts with the Ithaca Urban Renewal Agency (IURA) to administer, implement, and monitor the City’s HUD Entitlement Program in compliance with all applicable regulations, and WHEREAS, the Consolidated Plan may only be adopted by the City of Ithaca Common Council after it has undergone a 30-day public comment period and been the subject of two Public Hearings, and WHEREAS, the first Public Hearing, in both its parts was held before the IURA on February 23, 2024 and continued on March 1, 2024, and the second Public Hearing was held at the Common Council Committee of the Whole on May 8, 2024, and WHEREAS, at its May 10, 2024 meeting, the IURA Neighborhood Investment Committee recommended that the IURA Board adopt the 2024-2028 Consolidated Plan and IURA Minutes May 24, 2024 Page 5 of 8 WHEREAS, following a citizen participation process to gain public input in identifying priority community development needs, the IURA issued a draft 2024-2028 Consolidated Plan for a 30+-day public comment period that ends on May 28, 2024, and WHEREAS, at its May 24, 2024 meeting, the Ithaca Urban Renewal Agency Board reviewed public input received, and discussed priority needs and goals for the draft Consolidated Plan, now, therefore be it RESOLVED, that the Ithaca Urban Renewal Agency hereby adopts the draft 2024-2028 Consolidated Plan for the HUD Entitlement Program and further recommends its adoption by the Common Council, subject to the review and possible incorporation of any comments received. Carried Unanimously: 4-0 2. Adopt 2024 Update to Assessment of Fair Housing (AFH) Graham explained the proposed resolution relates to the City’s update to its Assessment of Fair Housing (AFH). The original 2017 Assessment of Fair Housing (AFH) employed HUD-provided data and local information to assess fair housing issues and identify contributing factors and goals to address barriers to fair housing (e.g., refusal by some landlords to accept Section 8 Housing Choice Vouchers). Proulx asked if the resolution is essentially for informational purposes only. Mendizabal replied, to demonstrate to HUD that the City remains committed to fair housing, it is important to formally adopt and publicize the AFH update. Graham moved, seconded by Osterreich: 2024 Update to Assessment of Fair Housing (AFH) — HUD Entitlement Program WHEREAS, the City of Ithaca (City) receives an annual grant funding from the U.S. Department of Housing & Urban Development (HUD) Entitlement program, which requires the City to certify it will affirmatively further fair housing (AFFH) as a condition for continued funding, and WHEREAS, the HUD Interim Final Rule “Restoring Affirmatively Furthering Fair Housing Definitions and Certifications” does not require a particular fair housing planning process, thereby allowing HUD grantees to define their own approach, and WHEREAS, the City contracts with the Ithaca Urban Renewal Agency (IURA) to administer, implement and monitor the City’s HUD Entitlement program in compliance with all applicable regulations, and WHEREAS, Federal fair housing law prohibits discrimination based on race, color, religion, national origin, sex, disability or familial status, and WHEREAS, fair housing issues restrict housing choice or access to opportunity for protected classes, and include: • Patterns of segregation • Racially or ethnically concentrated areas of poverty • Disparities in access to opportunity • Disproportionate housing need, and IURA Minutes May 24, 2024 Page 6 of 8 WHEREAS, the City’s 2017 Assessment of Fair Housing (AFH) utilized HUD-provided data and local information to assess housing issues; identified contributing factors that create, contribute to, perpetuate or increase the severity of one or more housing issues; and developed goals to address barriers to fair housing, and WHEREAS, the IURA has conducted community engagement activities, analyzed fair housing issues and completed a draft 2024 Update to the AFH, and WHEREAS, a public hearing was held on May 8, 2024, and WHEREAS, at its May 10, 2024 meeting, the IURA Neighborhood Investment Committee recommended that the IURA Board adopt the 2024 Update to the City of Ithaca Assessment of Fair Housing, and WHEREAS, the draft 2024 Update to the City of Ithaca’s AFH is available for a 30-day comment period ending May 28, 2024, now, therefore, be it RESOLVED, that the Ithaca Urban Renewal Agency hereby adopts the 2024 Update to City of Ithaca Assessment of Fair Housing, Ithaca, NY as amended to incorporate comments received. Carried Unanimously: 4-0 3. CBDO/CHDO Designation – Ithaca Neighborhood Housing Services, Inc. (INHS) Graham explained the proposed resolution relates to the annual designation of INHS as a Community Housing Development Organization (CHDO). IURA staff reviews INHS’ application every year to ensure all requirements have been met. Graham noted if an organization meets the criteria for CHDO designation, it also meets the standards for Community-Based Development Organization (CBDO) designation. Graham moved, seconded by Cantelmo: 2024 Designation of Ithaca Neighborhood Housing Services, Inc. (INHS) As Community Housing Development Organization (CHDO) & As 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 IURA Minutes May 24, 2024 Page 7 of 8 WHEREAS, on February 16, 2024, 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, at its May 10, 2024 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 2024 Action Plan, and be it further 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 2024 Action Plan. Carried Unanimously: 4-0 B. Appointment of Committee Chairperson Graham explained that the Committee nominated Shaianne Osterreich as its Vice-Chairperson and nominated Graham to continue serving as Chairperson. Osterreich moved, seconded by Proulx: 2024 Appointment of IURA Neighborhood Investment Committee Chairperson WHEREAS, IURA By-laws provide that the committee membership shall elect its own committee Vice- Chairperson and nominate a candidate for committee Chairperson for consideration by the Agency, and WHEREAS, per the By-laws, an Agency member shall fill either the committee Chairperson or committee Vice-Chairperson position, 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 Chairperson and Vice-Chairperson are Karl Graham and Shaianne Osterreich, and WHEREAS, the committee elected Shaianne Osterreich as Vice-Chairperson and nominated Karl Graham as Chairperson of the NI Committee, now, therefore be it RESOLVED, that Karl Graham be appointed as Chairperson of the IURA Neighborhood Investment Committee. Carried Unanimously: 4-0 IURA Minutes May 24, 2024 Page 8 of 8 C. Committee Chairperson Report Graham thanked Mendizabal for all the work she has done on the both the 2024-2028 Consolidated Plan and Assessment of Fair Housing (AFH) Update, in addition to all her other work for the IURA. VI. New/Other/Old Business A. Review of IURA Financials: April 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 appears the IURA will end up meeting its annual CDBG spend-down ratio deadline, which is very good news. All loan payments are current as of today. All lease payments are also current as of today. Bohn reported the IURA received formal notice of its annual HUD allocation ($652,031 in CDBG funds and $244,162 in HOME funds). B. REPORTS: IURA Chair, Mayor, Common Council Liaison, & Staff Mayor’s Report Cantelmo reported that Common Council will be in recess in 1st week of July 2024, but it will be meeting the subsequent two weeks. IURA Chairperson Proulx reported, at the last Economic Development Committee (EDC) meeting, the Committee reviewed two Housing Development Action Grants (HODAG) proposals, which will likely return to the Committee for further discussion over the next few months. Common Council Liaison Report Nguyen reported that the Community Housing Development Fund (CHDF) recently funded a variety of projects, including 115-123 S. Cayuga Street, which will be developed into 18 affordable housing units. The Community Housing Development Fund (CHDF) is a joint effort of Tompkins County, the City of Ithaca and Cornell University. The fund helps communities and organizations throughout Tompkins County respond to the diverse affordable housing needs of county residents. Projects must include units of affordable housing for low- and moderate-income households. Staff Report Bohn reported he will be on vacation June 28th, 2024, when the IURA Board is next scheduled to meet, so it may be worth considering if there will be an actual need for a June meeting. VII. Adjournment The meeting was adjourned by consensus at 9:25 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.