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HomeMy WebLinkAboutMN-IURAED-2024-12-10 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY Economic Development Committee (EDC) 3:30 P.M., Tuesday, December 10th, 2024 Common Council Chambers, 108 E. Green St., Ithaca, NY 14850 Present: Leslie Ackerman, Vice-Chair; Chuck Schwerin [virtual]; Donna Fleming; Derek Adams; Siobhan Hull Excused: Robert G. Cantelmo (Mayor) Vacancies: 0 Staff: Nels Bohn; Charles Pyott [virtual] Guests: None. I. Call to Order Vice-Chair Ackerman called the meeting to order at 3:33 P.M. II. Agenda Additions/Deletions Bohn explained that Schwerin is remote. He meets a unique circumstance requirement and can fully participate because there is a quorum in person, and he has full voting rights. III. Public Comments (3-minute max. per person) None. IV. Review of Meeting Minutes: July 9th, 2024 Ackerman moved, seconded by Adams, to approve the minutes with no modifications. Carried Unanimously: 4-1 Abstained V. New Business A. Inlet Island Urban Renewal Project 1. Termination of Exclusive Negotiation Agreement (ENA) with Finger Lakes Development, LLC Bohn explained that Finger Lakes Development, LLC (FLD) was selected in 2021 as a sponsor to undertake the Inlet Urban Renewal Project. FLD and the Ithaca Urban Renewal Agency (IURA) agreed on a conceptual plan. They moved to address NYSDEC negotiations to acquire the Coastguard Auxiliary site at the end of the island, which was part of the proposed site for the hotel. The negotiations turned out to be quite extended, and a conceptual agreement with the developer was reached earlier in 2024. FLD was committed to moving forward with a site plan submission to the Planning Board, including State Environmental Quality Review Act (SEQR) review materials, by October 2024. Approved/Adopted: 1/14/25 EDC Meeting Minutes December 10, 2024 Page 2 of 6 A transportation study, redesign of the hotel and parking lot because of flood regulations, defining subsurface contamination and a cost estimate for cleanup, and other studies related to SEQR review were needed. None of the elements were moved forward, and IURA became aware in November 2024 of the developer’s concern about the project's financial feasibility. FLD identified a potential co-developer and requested a 60-day extension of its exclusive negotiation agreement but did not commit to a timeline or project revisions. Hull asked about the project elements, such as hotel versus residential units, and if partnering with another hotel developer would address the project's feasibility. Bohn explained that the project consisted of 57 affordable housing units and a hotel, with a strong emphasis on activating the waterfront on Inlet Island for City residents. Schwerin asked about the status of the Coast Guard and NYSDEC transactions. Bohn replied that the NYSDEC has a license agreement with the DEC, which does not have a termination date, but he noted that it does terminate if the property is transferred. NYSDEC has agreed conceptually to convey the Coast Guard Auxiliary property to the City in exchange for easements to conduct dredge activities. Schwerin asked if NYSDEC and Coastguard negotiations are no longer a constraint on the project timeline. Bohn replied that there was no constraint regarding the conceptual agreement but noted that a property transfer would take 8-12 months. Fleming asked to what extent the Common Council will be involved if the ENA with the developer is terminated. Bohn replied that a developer may want to involve the Common Council for an advisory opinion, but the Common Council must approve the final development agreement. Ackerman asked about the timeline and process for opening a new Request for Proposals (RFP) to bring the project to market as soon as possible. Bohn suggested that an agreement for the property transfer from NYSDEC to the city would expedite the RFP process. Schwerin noted that the developer requested a 60-day extension and asked if the goal was to sign an agreement at that point. Bohn replied that the FLD aims to bring in a co-developer hotel operator. Ackerman asked about the pros and cons of extending the ENA to January 2025. Bohn said the pro is that the original project could be salvaged and the original vision potentially implemented in a financially feasible way with a hotel co-developer with a portfolio of many hotels if the original physical design works. The con is that others may view the original project and development team as having changed, and the FLD stopped advancing the project while not keeping the IURA informed of its process. Adams asked if a potential co-developer would have to go through the same review process as the original developer and what time is associated with that. Bohn replied that the development team would have to be requalified and may require a public hearing and one meeting, but it would not be a lengthy process. EDC Meeting Minutes December 10, 2024 Page 3 of 6 Regarding the timeline in Schedule A of the ENA, Ackerman commented that it appears the ENA has been extended several times. Bohn replied that one formal extension was granted. He acknowledged that the termination date had passed. He noted that a developer could not provide an accurate timeline for performance until the NYSDEC negotiations were complete. The timeline was informally put on and then restarted. However, since April 2024, there has been no progress. Fleming moved, seconded by Hull: Inlet Island Urban Renewal Project – Terminate Exclusive Negotiation Agreement (ENA) with Finger Lakes Development, LLC WHEREAS, on June 24, 2021, the IURA selected Finger Lakes Development, LLC (FLD) as a qualified and eligible sponsor to undertake an urban renewal project on Inlet Island that includes affordable housing, retention of water-dependent uses, enhanced public waterfront access and amenities, and a hotel, and WHEREAS, on December 21, 2021, the IURA entered into an Exclusive Negotiation Agreement (ENA) with FLD, establishing a framework for negotiations intended to lead to mutually acceptable Disposition and Development Agreement (DDA) and included a list is ‘issues to be resolved’ and a performance milestone schedule, and WHEREAS, on August 25, 2022, the IURA found that the FLD did not satisfactorily address all ‘issues to be resolved’ and authorized a short-term extension to the ENA to revise their program, and WHEREAS, on October 22, 2022, the IURA determined that FLD’s revised program satisfactorily addressed all ‘issues to be resolved’ and approved the FLD’s development program for an urban renewal project on Inlet Island and authorized development and submission of a Disposition and Development Agreement (DDA) for developer execution that establishes the conditions and terms for proposed conveyance of properties for the urban renewal project, and WHEREAS, the milestone schedule to be included in a proposed DDA is dependent on the New York State Department of Environmental Conservation (NYSDEC) approval to convey tax map parcel #43.-1-5, currently occupied by the Coast Guard Auxiliary, for inclusion in the project site, so the duration of the ENA was informally tolled until a property transaction agreement could be worked out with NYSDEC, and WHEREAS, on May 16, 2024, the New York State Department of Environmental Conservation conceptually agreed to ‘Terms and Conditions for NYSDEC Land Rights Transfers at Inlet Island – Ithaca, NY, and WHEREAS, FLD committed to submit a full site plan development application to the City by October 2024, including traffic analysis, subsurface condition assessment, a redesigned hotel to meet revised flood requirement, and a revised site plan, and WHEREAS, FLD did not advance development plans since May 2024, nor complete necessary studies for submission of a complete site plan application, and EDC Meeting Minutes December 10, 2024 Page 4 of 6 WHEREAS, in November 2024, FLD indicated their proposed project is not financially feasible in due part to increased construction costs, higher interest rates, and enhanced lender requirements since original project conception, and WHEREAS, the ENA included a termination date of December 12, 2022, and WHEREAS, the IURA Economic Development Committee reviewed this matter at their December 10, 2024 meeting, and recommends the following action; now, therefore, be it RESOLVED, that the IURA hereby terminates the Exclusive Negotiation Agreement with Finger Lakes Development, LLC for the Inlet Island Urban Renewal Project. Carried Unanimously 5-0 B. Election of EDC Officers Bohn explained that Chris Proulx resigned, leaving the Chair position vacant and Ackerman as Vice-Chair. The Committee needs to make a nomination to fill the vacancy. One of the two officers must be an IURA member. Cantelmo is willing to fill the vacancy but is not advocating for it. Following discussion, Committee members agreed to nominate Cantelmo as Chairperson. Fleming moved, seconded by Adams: 2024 IURA Economic Development Committee (EDC) 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 IURA Board a member to serve as Chairperson of the Committee, and WHEREAS, IURA By-laws further specify that either the Chairperson or Vice-Chairperson position shall be held by an IURA member, and WHEREAS, current IURA Economic Development Committee members are: 1. Leslie Ackerman 2. Derek Adams 3. Robert Cantelmo, IURA member 4. Donna Fleming, IURA member 5. Siobhan Hull, IURA member 6. Chuck Schwerin, and EDC Meeting Minutes December 10, 2024 Page 5 of 6 WHEREAS, the current committee officers are: Chairperson: vacant Vice-Chairperson: Leslie Ackerman, 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, at their December 10, 2024 meeting, the Chair called for nominations for Vice-Chair and Chair of the IURA Economic Development Committee; now, therefore be it RESOLVED, that the IURA Economic Development Committee hereby nominates Robert Cantelmo as Committee Chairperson, and be it further RESOLVED, that the IURA Economic Development Committee hereby elects Leslie Ackerman as Committee Vice-Chairperson. Carried Unanimously: 5-0 VI. Old/Other Business A. 2025 HUD Entitlement Action Plan — Update Bohn reported that the annual action plan is currently open. The submission deadline is January 31, 2025, at noon. Meetings are scheduled for those interested, and one-on-one consultations are available for any not-for-profit organization interested in exploring potential projects. Funding is available for disbursement in September 2025, though the amount will not be known until the Federal government adopts a 2025 budget. B. IURA Financials Review: October 2024 Bohn reported that all loan payments and lease payments are current. 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 due to delays or limitations, and any issues are being addressed. He noted that the 2024 action items have been added since IURA now has access to those HUD funds. Bohn reported that Shared Kitchen Ithaca (SKI) achieved its fundraising goal, which gives them access to additional Tompkins County IDA funding. A lease was signed, and SKI is in the process of getting the program running with a full complement of kitchen services and facilities to support entrepreneurs. Schwerin added that SKI may also be receiving an Apalachin Regional Commission grant. C. Loan Pipeline Report Bohn reported that one loan application was received for 702 Hancock Street, where Ithaca Coffee conducts its roasting activities. The loan application has been sent for underwriting, and he expects it will be ready for review in January 2025. EDC Meeting Minutes December 10, 2024 Page 6 of 6 D. Staff Report Bohn, referencing a map of the property that Ithaca Farmers Market (IFM) leases from IURA, reported that IFM is proceeding to Phase I improvement as shown on the map. He explained that Phase I of the project is redesigning the parking area and noted that no additional approvals from IRA are required for Phase I as no buildings are involved in that portion of the project. Bohn reported that the City will be applying for a Restore New York grant that Empire State Development and New York State Agency make available to assist municipalities with vacant or underutilized buildings. The mayor helped select properties vetted for the $1 million potential application request. He selected the Water’s Edge project, which is committed to building 200 housing units, of which 20% would be below-market-rate units in Phase One. VII. Adjournment The meeting was adjourned by consensus at 4:33 P.M. — END — Minutes prepared by S. Dean, edited by C. Pyott/N. Bohn.