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HomeMy WebLinkAboutMN-IURA-2025-02-28Approved: 3/28/25 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 9:00 A.M., Friday, February 28, 2025 Common Council Chambers, Third Floor (City Hall) 108 E. Green St., Ithaca, NY 14850 Members: Robert Cantelmo (Mayor), Chair; Karl Graham, Vice-Chair; Shaianne Osterreich; Donna Fleming; Siobhan Hull Excused: None. Vacancies: 1 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 9:01 A.M. II. Agenda Additions/Deletions None. III. Public Comments None. IV. 2025 HUD Entitlement Grant Action Plan A. Review of Anticipated Funds Available & Public Hearing Format Mendizabal explained that IURA staff anticipates the availability of $796,000 in Community Development Block Grant (CDBG) Program funds and $244,000 in HOME Investment Partnerships Program (HOME) funds. She added that funding applications in 2025 exceed the amount IURA anticipates receiving. B. Disclosure of Any Potential Conflicts of Interest Graham stated that his niece is the Executive Director of applicant Southside Community Center, but he has no other connection with the Center. C. PUBLIC HEARING #1 On a motion by Hull, seconded by Fleming, and unanimously approved, Chair Cantelmo opened the Public Hearing. IURA Minutes February 28, 2025 Page 2 of 17 ― HOUSING APPLICATIONS ― 1. APPLICATION #1: 209 W. STATE ST. — ITHACA NEIGHBORHOOD HOUSING SERVICES, INC. (INHS) Speaker Affiliation Comments-in-Brief Lynn Truame Ithaca Neighborhood Housing Services, Inc. (INHS) Victoria Neenan Ithaca Neighborhood Housing Services, Inc. (INHS) The project is the redevelopment of 205 and 209 W. State Street with a five-story building containing 56 one-bedroom affordable rental housing units for seniors with a daycare center on a portion of the first floor and 12 under-building parking spaces. The building will be all- electric and energy-efficient and meet Passive Housing standards. The building will be owned by INHS, and the daycare will be leased at a below-market rate to a daycare operator. INHS proposes the housing for seniors ages 62 and above with incomes between 50-100% of the Area Median Income (AMI), with most units for households earning up to 60% of AMI. Housing choice vouchers will be accepted, allowing those making less than 50% of AMI to rent an apartment at an affordable rate. There is a waitlist of 292 households for one-bedroom units, and half of that number are people over 50 years of age. The total project is approximately $25 million, and the funds requested from the IURA would be the only Federal funds in the budget. Most project funding will come from New York State Homes and Community Renewal (HCR). Depending on funding, the goal is to begin construction in August 2026, and complete construction in 2027, and the building will be fully occupied by April 2028. Q&A Osterreich asked if the State funding is contingent on the flow of Federal funds to the State. Truame responded that the funds are not discretionary, and she had not heard of any concerns about the State funding. Hull asked if the units would be rent-stabilized. Truame explained that the maximum rent increase allowed by HCR is typically 2% per year. A recent increase of up to 9% was allowed to adjust for inflation, but INHS only increased rents by 4%. Graham asked if the number of senior households on the waitlist is only for INHS, or if it is the the overall waitlist is in this area. Neenan explained that it is only for INHS one-bedroom units in its Ithaca portfolio. Truame clarified that approximately one-half of those on the waitlist are seniors. IURA Minutes February 28, 2025 Page 3 of 17 Cantelmo questioned the daycare’s capacity. Truame responded that the plan is for three classrooms with approximately 10 children per classroom. 2. APPLICATION #3: HOUSING SCHOLARSHIP PROGRAM — THE LEARNING WEB, INC. Speaker Affiliation Comments-in-Brief Michelle Nolan The Learning Web, Inc. Nolan explained that The Learning Web (Learning Web) is applying for $95,340 to pay rent and utilities for up to five units for homeless youth ages 21-24 for 12 months in scattered site apartments in the City of Ithaca. Using a tenant-based rental assistance model, the youth sign the lease. However, Learning Web pays the rent and utilities for up to 12 months to stabilize housing while providing case management services, life skills instruction, and resource navigation to increase the youths’ ability to live self-sufficiently. Learning Web’s transitional living program, funded by the federal government, is for youth aged 16-21. Currently, 59 youth are waiting for housing, and 57% are aged 21 to 24. Nolan explained that programs will wind down if federal funds are cut and that defaulting on leases is possible. Youth may be transferred to another program if they are not ready to transition in 12 months. Aftercare is available to youth for up to three years. Anthony Paolangeli The Learning Web, Inc. Paolangeli explained that Learning Web is currently operating four housing programs: (1) transitional living program funded by the Family Youth Services Bureau for ages 16-21 for up to 18 months; (2) a transitional program funded by HUD for youth ages 18-24 for 10 months which program ends on September 30, 2025; (3) permanent support housing program fund by HUD for 16 apartments consisting of 20 beds, 13 single units, and three family units for youth ages 18-24 at entry; and (4) a Housing Scholarship Program funded by HUD 18-24, which is partially funded by IURA, for ages 21-24. Q&A Osterreich asked how Learning Web would scale if the total requested from IURA were not received. Nolan responded that Learning Web is always looking for below-market apartments and would scale down the number of apartments as needed. Fleming asked if all the clients had their own apartment and were not roommates. Nolan responded, “Yes.” Fleming asked if doubling up for efficiency was considered. Paolangeli responded that other organizations have tried, but Learning Web prefers its clients to have their own space as shared space can lead to more problems, and clients in the program have some form of trauma to work on while not having a roommate or other person in the apartment. IURA Minutes February 28, 2025 Page 4 of 17 Cantelmo asked for the definition of “imminently homeless.” Paolangeli responded that it is those who are facing eviction or have to be out of their home within up to 14 days. Bohn noted that the funding application did not include supportive services and asked how this program would differ from Learning Web’s other programs. Nolan responded that separate funding was secured to provide supportive services. Osterreich noted that Learning Web has a separate application for funding for supportive services. 3. APPLICATION #2: 610 W. COURT ST. — HABITAT FOR HUMANITY OF TOMPKINS & CORTLAND COUNTIES Speaker Affiliation Comments-in-Brief Shannon MacCarrick [virtual] Habitat for Humanity of Tompkins & Cortland Counties The project is the construction of an affordable four-bedroom, two- bathroom modular house at 610 W. Court Street. Habitat caps the sale price at 30% of the buyer’s monthly household income over a 30-year mortgage. Habitat fills the gap between the mortgage amount for which the buyer qualifies and the cost of the home. This property will be a part of Habitat’s Community Housing Trust, which helps lower the house's price, right-size the assessment, and reduce the homebuyer’s tax burden. Habitat retains land ownership, and the homebuyer purchases the improvements with a 99-year, renewable lease. Restrictions include selling the property to another qualified buyer at or below 80% AMI, making the home permanently affordable. Because of higher interest rates, homebuyers qualify for smaller mortgages, leaving a more significant gap for Habitat. Construction costs are higher and are increased even more because of the City's requirement to hire licensed subcontractors. A buyer for the property has already been selected. MacCarrick explained that the property is located within a floodplain, and the cost of a poured foundation above the floodplain and excavation is included in the project's cost. Flood insurance is not included, but if required, it is still within affordability. The excavation and foundation costs are included in the amount requested. Q&A Oesterreich asked how the sweat equity piece works in this project since it is a modular home. MacCarrick explained that the homebuyers contribute 350 hours of sweat equity on their home, such as installing trim, painting, landscaping, and constructing the porch. The remaining hours will be earned working on other homes that are in progress. Hull asked if electric heating was planned for the house. MacCarrick responded that the house would have a heat pump. IURA Minutes February 28, 2025 Page 5 of 17 4. APPLICATION #4: MINOR REPAIR PROGRAM — ITHACA NEIGHBORHOOD HOUSING SERVICES, INC. (INHS) Speaker Affiliation Comments-in-Brief Delia Yarrow Ithaca Neighborhood Housing Services, Inc. (INHS) The funding request is to continue the 40-year history of the Minor Repair program, which supports the most vulnerable homeowners, including low-income, seniors, and single-parent households. Outreach efforts include targeted mailings to seniors and working to build relationship with Nate’s Floral Estates. Yarrow stated that if federal funding is cut, it would result in a loss. Still, INHS also has State, local, and private funding, including approximately $50,000/year from the Office for the Aging, and aggressively seeks other funding sources. In addition to repairs, INHS requests funding for a pilot program to test for radon, a significant local issue. Q&A Hull asked if weatherization is part of the Minor Repair program, noting that other funding exists to help homeowners with their home energy. Yarrow responded that the program will do weatherstripping. Major repairs are coordinated with a NYSERDA contractor to be included in the scope of work if possible. Osterreich asked if only internal contractors are used for the Minor Repairs program. Yarrow responded that contracting and project management are primarily handled internally. If flexible funding is available, a contractor may be hired if required. 5. APPLICATION #5: SECURITY DEPOSIT ASSISTANCE FOR VULNERABLE HOUSEHOLDS — CATHOLIC CHARITIES OF TOMPKINS/TIOGA COUNTIES (CCTT) Speaker Affiliation Comments-in-Brief Leslie Mulcahy [virtual] Catholic Charities of Tompkins/Tioga Counties (CCTT) The funding request is to support CCTT’s Security Deposit Assistance program, which helps remove the barrier to people needing to pay the first month’s rent and security deposit upfront to move into housing, reducing homelessness in Ithaca. Approximately 30% of the applicants have historically been homeless or housing insecure. The one-time grant assists between 65-100 households per year at or below 60% AMI, which is 300% of the Federal poverty level. The amount requested is based on average deposits paid and the number of anticipated requests. IURA Minutes February 28, 2025 Page 6 of 17 Q&A Osterreich asked about the space between partnering with the Human Services Coalition and CCTT’s internal ability to support families in finding apartments with landlords willing to participate in the program. Mulcahy replied that CCTT does not have a housing specialist in part because the Human Services Coalition does and because CCTT does not have funding for an on-staff housing specialist. Hull asked if there is anything CCTT is doing to increase the follow-up rate from 30-50% of participants. Mulcahy responded that follow-up is done at six months and again at one year and approximately 60% are reached. Graham asked if CCTT tracks whether participants are new to the area or current residents. Mulcahy replied that participants must be residents to participate in the program and indicated that a mix of people apply, some of whom have been residents for a short period and others long-term residents. Graham asked if CCTT reports a landlord who refuses to accept a housing choice voucher. Mulcahy replied that CCTT does not report the landlord but does encourage the applicant to make any report. ― PUBLIC SERVICES APPLICATIONS ― 6. APPLICATION #17: SECURITY DEPOSIT ASSISTANCE INTENSIVE STAFFING — CATHOLIC CHARITIES OF TOMPKINS/TIOGA COUNTIES (CCTT) Speaker Affiliation Comments-in-Brief Leslie Mulcahy [virtual] Catholic Charities of Tompkins/Tioga Counties (CCTT) Michaela Cortright [virtual] Catholic Charities of Tompkins/Tioga Counties (CCTT) CCTT requests funding to support collaboration with at least six organizations [Department of Social Services, the applicant’s employer, the landlord, Tompkins Community Action (TCA), Ithaca Housing Authority or TCA, and IURA] to process each application. More complex cases include additional collaboration with Law New York and/or case workers. At least two applications are received weekly, taking up approximately 40% of staff time. Staffing capacity and operating costs could be affected by Federal funding cuts. The Security Deposit Assistance program would have to be paused indefinitely, and the number of homeless could double from last year’s number of 38% of applicants. IURA Minutes February 28, 2025 Page 7 of 17 Q&A Graham asked if clients were in danger of losing their housing if this funding would provide assistance, or if they would be referred elsewhere. Mulcahy replied that the client would be referred elsewhere as this funding is for security deposit assistance only. ― HOUSING APPLICATIONS ― 7. APPLICATION #6: HOUSING, DAYCARE, & COMMERCIAL PROPERTY — BLACK HANDS UNIVERSAL Speaker Affiliation Comments-in-Brief Harry Smith [virtual] Black Hands Universal The requested funds would be used to acquire property at 614 W. State Street, next door to property at 612 W. State Street, where Black Hands Universal has a daycare operation, with the goal of adding six residential units, recreating the existing storefront space, and adding a daycare facility. Q&A Graham asked if the applicant had a construction team. Smith replied that he had extensive construction experience and plans to collaborate with various organizations and companies and provide an opportunity for youth and young adult apprentices under supervision. Graham asked if any asbestos remediation was required. Smith replied that he was told there should not be asbestos, but testing for asbestos is included in the project pricing. Graham asked if funds were allocated to address asbestos if found. Smith replied that it was included in the project plan. Graham asked if the daycare at 612 W. State Street is operating. Smith replied that the daycare was operating and had been open for three weeks. Osterreich asked for an explanation of the estimated acquisition cost of the building. Smith explained that the estimate is of the downpayment cost and that the applicant leased the property from the owner to have site control and manage the space. Osterreich asked Smith to discuss what would happen if IURA could not fully fund the requested amount, if Black Hands Universal could make a lesser deposit, and what other possibilities would be if funding were scaled down. Smith replied that the owner was open to working something out to do the project. IURA Minutes February 28, 2025 Page 8 of 17 ― ECONOMIC DEVELOPMENT APPLICATIONS ― 8. APPLICATION #9: WORK PRESERVE JOB TRAINING: JOB PLACEMENTS — HISTORIC ITHACA, INC. (HI) Speaker Affiliation Comments-in-Brief Bethany Parisi Historic Ithaca, Inc. (HI) Historic Ithaca (HI) seeks IURA funding to support its work preserve program and allow it to meet higher job placement goals. HI does not receive Federal funding from any source other than IURA. Without these funds, HI would be forced to reduce the number of program participants drastically, the staff to support them, and the supplies needed for effective programming. HI has been able to diversify funding through local grant opportunities but faces growing challenges in attracting and retaining skilled employees, and funding becomes crucial to continue to pay employees a sustainable living wage. Jordan Governale Historic Ithaca, Inc. (HI) Of the six participants in the program, HI has three placements. Three full-time participants are anticipated to have one year or more retention. Due to the varied age range of participants, roughly 50% will be in school full-time, making part-time employment the most likely outcome. The retention work often extends beyond the first job placement and involves ongoing support. Placement goals are based on the success and strength of recruitment strategies in the previous year. Adding additional partnership organizations increased the guaranteed number of participants from two to 10. Q&A Hull asked if the budget for the program allows for paying trainees and trainers at the Tompkins County living wage rate of approximately $25/hour. Governale responded that trainers are not yet paid at that rate. Trainees who are paid are not paid at that rate, and some who come through the school system receive school credit instead of being paid. 9. APPLICATION #7: REUSE, IT, & CLEAN ENERGY JOB SKILLS TRAINING — FINGER LAKES REUSE, INC. (FLRU) Speaker Affiliation Comments-in-Brief Robin Elliott Finger Lakes ReUse, Inc. (FLRU) The funding request is to support FLRU’s Reset Job Training program, an apprenticeship program with 50% stipends paid from Federal funding and 50% paid from merchandise sales. To date, FLRU has been able to take on the staffing cost for the program. Donations have grown by almost 30% yearly for the past 10 years. FLRU recognized IURA Minutes February 28, 2025 Page 9 of 17 Speaker Affiliation Comments-in-Brief the growth as an opportunity for workforce development and material reuse, which can offer varied skills to multiple valuable career paths. FLRU currently has 85 employees. FLRU now has a warehouse manager and an assistant piloting warehouse activities. As the project grows, there is potential for expanding training opportunities. Abbey Ball Finger Lakes ReUse, Inc. (FLRU) FLU is seeking $148,541 toward a total project cost of over $500,000 to work with 30 paid apprentices. The project will place at least 20 City of Ithaca residents in permanent, unsubsidized employment post- program. Lauren Sawyer Finger Lakes ReUse, Inc. (FLRU) The Reset training program provides job opportunities to anyone facing employment barriers, including experience, incarceration, disabilities, substance use recovery, and mental health needs. There are 32 individuals on the waiting list. Curriculums include retail reset customer service, which is paid from day one, and reset technology, typically unpaid. There are six reset participants in the retail program and one in the technology program. Q&A Cantelmo asked how FLRU is confident it will meet the target of 20 permanent employees. Elliott explained that FLRU would bring in outside trainers to work with staff so they would have better resources to be more supportive and prepared to work with trainees dealing with things outside of work. Cantelmo asked what mitigation tactics FLRU would use if obstacles or barriers were encountered while working toward the target number. Elliott replied that FLRU can now screen the wait list for individuals who are more likely to succeed in the program and could refer those not succeeding to other programs. 10. APPLICATION #8: HOSPITALITY EMPLOYMENT TRAINING PROGRAM (HETP) — GREATER ITHACA ACTIVITIES CENTER (GIAC) Speaker Affiliation Comments-in-Brief Lonnie Jenkins Greater Ithaca Activities Center (GIAC) The program assists low-to-middle-income underemployed individuals, many of whom face systemic barriers, in finding work in Tompkins County. Funding is provided locally, and Federal funding does not currently affect the program. There are two cohorts with 10 participants each. The goal is to achieve a success rate of 70%, which means about 14 permanent employees. A full-time program assistant was added. While still striving for hotel placement, the program is IURA Minutes February 28, 2025 Page 10 of 17 Speaker Affiliation Comments-in-Brief opening up to other areas such as nursing office administration, banking, and childcare. Leslyn McBean- Clairborne Greater Ithaca Activities Center (GIAC) Q&A Osterreich asked about GIAC partners that help with the program. Jenkins responded that GIAC worked with Tompkins Community Bank, Cornell, Transonic Systems, SUNY Cortland, and LaTourelle and hopes to work with the Child Development Council. Graham asked if the program has evolved due to the economy and employment situations or if there are changes in the clients who apply to the program. Jenkins replied that if the clients are restricted, this does not lead them down a successful path. McBean-Claiborne added that the focus has been shifted from hospitality to customer service. ― PUBLIC FACILITIES APPLICATIONS ― 11. APPLICATION #10: RESILIENCY HUB — SOUTHSIDE COMMUNITY CENTER (SCC) Speaker Affiliation Comments-in-Brief Kayla Matos Southside Community Center (SCC) The application submitted is to help create the Resiliency Hub in the Southside neighborhood, which came from the collaboration between SCC, Cornell University, and the City of Ithaca when the FEMA flood maps were first released for Titus Avenue. The application focuses on the equipment needed and is paired with the kitchen renovation. Chavon Bunch Southside Community Center (SCC) Southside Community Center has been working with Cornell University and Niagara Mohawk to create this first resiliency hub. The Center is not in a flood zone. New drainage was installed, so there is no flooding in the basement. The hub will be a heating and cooling station for extreme weather. The Park Foundation is providing funding to find an owner representative to work with the project on development plans so SCC can apply again for $100,000 in funding from The Park Foundation. IURA Minutes February 28, 2025 Page 11 of 17 Q&A Hull asked if there is an estimate of how many people the building can support. Bunch replied that about 500 people would fit comfortably. Graham asked how the funds requested from IURA would be used. Matos replied that the owner representative and project manager would determine what could be realistically purchased and completed within this year. Bunch added that even generators would help, and Matos commented that infrastructure is needed for the electrification of the building. Graham asked how the City has officially responded to the proposal. Bunch replied that the City is in favor of it and that it is also a resource. Graham asked if the Cornell involvement is the University or the Professor and her class. Bunch replied that it is both. The Einhorn Center for Engagement is now involved. On a motion by Fleming, seconded by Hull, and unanimously approved, Chair Cantelmo suspended the Public Hearing. V. Neighborhood Investment Committee (NIC) A. Community-Based Development Organization (CBDO) Designation: Black Hands Universal, Inc., 2024 Career & Resources Program Graham explained that this is an application for a grant funded last year. Eligible use of CDBG funds is called “special activity” by a Community-Based Development Organization (CDBO), and it offers some advantages. The two primary ones are that there is an exemption from the 15% expenditure cap that is otherwise applied to applicants for public service funding, and it gives authorization to carry out new housing construction normally prohibited for CBDO funds. There are four tests that the organization must pass. The application was reviewed, and the organization passed all four tests. The Neighborhood Investment Committee recommended that IURA approve the designation of Black Hands Universal as a CDBO. Graham moved, seconded by Osterreich: 2024 IURA Designation of Black Hands Universal (BHU) As Community-Based Development Organization WHEREAS, the Board of Black Hands Universal (BHU) 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 February 28, 2025 Page 12 of 17 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 BHU’s CBDO application and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that Black Hands Universal meets the requirements for eligibility as a CBDO, and that the BHU’s “Career & Resources Program” qualifies as an eligible CBDO activity, and be it further RESOLVED, that the IURA hereby designates Black Hands Universal as a Community-Based Development Organization (CBDO) and its “Career & Resources Program” as eligible for CDBG funding under the category of “Special Activities by CBDOs.” Carried Unanimously: 5-0 IURA Minutes February 28, 2025 Page 13 of 17 B. Downtown Ithaca Children’s Center Request for Lease Extension: 506 First Street Graham explained that in 1994, the City Common Council determined that DICC provided a benefit to the community and entered into a 30-year lease. IURA subleased to DICC. The lease expires April 30, 2025, and DICC has requested a 10-year extension. The initial lease was for 506 First Street. Another property, 502 First Street, was acquired, and the two properties were combined under the address 506 First Street. The Neighborhood Investment Committee recommends, subject to the legal requirements, that a new sublease be implemented for 10 years. Graham moved, seconded by Osterreich: 2nd Amendment to Sublease Agreement Between Ithaca Urban Renewal Agency & Drop-In Center, Inc./Downtown Ithaca Children’s Center (DICC) WHEREAS, on January 30, 2025, Drop-In Center Inc., doing business as Downtown Ithaca Children’s Center (DICC), requested a 10-year extension of their sublease of premises situated at 506 First Street, Ithaca, NY on property owned by the City of Ithaca, and WHEREAS, on July 6, 1994, the Common Council of the City of Ithaca determined that DICC provides a public benefit for the City of Ithaca by providing affordable and needed day care services, and WHEREAS, on July 6, 1994, Common Council authorized execution of a long-term master lease between the City of Ithaca and the Ithaca Urban Renewal Agency (IURA) for sublease to the DICC as an urban renewal project, and WHEREAS, on April 13, 1995, sublease agreement (“Sublease Agreement”) between the IURA and DICC for 506 First Street was executed for a thirty-year period from May 1, 1995 to April 30, 2025, at an annual rent of ($1.00) one dollar, and WHEREAS, on May 23, 2007, the sublease agreement was amended to include property situated at 502 First Street, (subsequently consolidated into 506 First Street), which DICC conveyed to the City of Ithaca, and WHEREAS, the sublease agreement limits use of the premises to operation of a childcare facility, and WHEREAS, state law generally prohibits a city from the sale or lease of land at less than full market value to a designated end user unless undertaken via an urban renewal agency pursuant to section 507 of General Municipal Law (GML) that authorizes sale or lease of property to a qualified and eligible sponsor in furtherance of an urban renewal plan provided the proposed disposition satisfies the following requirements: • Publication of a notice in a newspaper of general circulation disclosing the identity of the proposed buyer or lessee, the proposed use of the property, and essential terms and conditions of the proposed sale or lease, and • A public hearing is held on the proposed property disposition not less than 10-days after publication of the notice, and • approval of the proposed sale or lease by the governing body, and IURA Minutes February 28, 2025 Page 14 of 17 WHEREAS, DICC has operated a childcare facility at 506 First Street for 30 consecutive years, and WHEREAS, the project site is located within the Urban Renewal Project boundary and continued operation of the childcare facility furthers the objectives of the Urban Renewal Plan, and WHEREAS the IURA Neighborhood Investment Committee reviewed this matter at their February 14, 2025 meeting and recommends the following actions; now, therefore, be it RESOLVED, the IURA hereby affirms its prior determination that DICC is a qualified and eligible sponsor to carry out an urban renewal project in accordance with section 507 of General Municipal Law, and be it further RESOLVED, the IURA hereby approves a 2nd amendment to the sublease agreement between IURA and DICC to extend the lease of property at 506 First Street through April 30, 2035 and provide for up to an additional 10-year renewal term upon mutual agreement of the IURA, City Manager, and DICC, and be it further RESOLVED, the 2nd amendment to the sublease is conditioned upon satisfaction of the following: • Completion of public hearing in accordance with section 507 of GML • Common Council approval of 2nd amendment to the City/IURA master lease of property situated at 506 First Street to implement this resolution • Common Council approval of the IURA-proposed 2nd amendment to the IURA/DICC sublease of property situated at 506 First Street, and be it further RESOLVED, that the IURA Chairperson, subject to review by IURA legal counsel, shall be authorized to execute any and all documents to implement this resolution, and be it further RESOLVED, that the IURA shall be reimbursed from the City of Ithaca for reasonable expenses incurred to complete the proposed property disposition. Carried Unanimously: 5-0 C. Committee Chairperson Report None. VI. Economic Development Committee (EDC) A. Inlet Island Urban Renewal Project, Next Steps: Recommendation Cantelmo explained that the Inlet Island Urban Renewal Project developer had decided not to proceed. Bohn prepared a memo on what the next steps may be, and the Committee recommended that the barriers to development be resolved in preparation for a future RFI; that is, to investigate and remediate the brownfield and to acquire 508 Taughannock Boulevard from NYSDEC. B. Committee Chairperson Report None. IURA Minutes February 28, 2025 Page 15 of 17 VII. Other Business A. 205 W. M.L.K., Jr./State Street – Property Disposition to INHS to Undertake Urban Renewal Project Cantelmo explained that this proposal is to provide the property at 205 W. M.L.K., Jr./State Street for constructing a 50-unit senior housing facility with a daycare center proposed by INHS in an application as part of the 2025 entitlement funding. The Common Council, acting as the lead agency, found no significant adverse environmental impact. Cantelmo moved, seconded by Fleming: 205 W. M.L.K., Jr./State Street – Property Disposition to INHS to Undertake Urban Renewal Project WHEREAS, Ithaca Neighborhood Housing Services, Inc. (INHS) has obtained site control of the former Family Medicine property at 209 W. M.L.K., Jr./State Street, and WHEREAS, INHS requested acquisition of the adjacent City-owned property located at 205 W. MLK Jr./State Street (“205 W. State Steet”) for construction of an approximately 50-unit affordable senior housing project with first-floor day care facility at 205-209 W. State (“Proposed Project”), and WHEREAS, on January 8, 2025, the Common Council for the City of Ithaca acted to: 1. declared 205 W. State Street as surplus property for municipal use; 2. request the IURA to structure a proposed disposition and development agreement to facilitate construction of an affordable housing project at 205-209 W. State Street; 3. authorize an option agreement to transfer property located at tax map parcel #71.-4-1.2, also known as 205 W. State Street, to the IURA for the purpose of structuring a proposed disposition and development agreement with an urban renewal project sponsor to construct an affordable housing project, and WHEREAS, the IURA is authorized to sell property to a specific buyer if such buyer is designated as an eligible and qualified sponsor (Sponsor) pursuant to section 507 of General Municipal Law and the conveyance is approved by Common Council, and WHEREAS, INHS has submitted to the IURA an urban renewal Sponsor application and 2025 HUD Entitlement funding application further describing the Proposed Project, and WHEREAS, a proposed Sponsor is evaluated in accordance with adopted IURA land disposition procedures that seek to determine if the proposed Sponsor is qualified and capable of fulfilling the objectives of the urban renewal project for property disposition, and WHEREAS, IURA evaluation criteria for a Sponsor includes: • Financial status and stability • Legal qualification to operate in the State of New York and to enter into contracts with regard to the disposition, use, and development of land in questions • Previous experience in the financing, use, development and operation of projects of a similar nature • Reputation and proof of fair, reputable and ethical business practices and a record devoid of convictions; and IURA Minutes February 28, 2025 Page 16 of 17 WHEREAS, the primary objective of the Urban Renewal Plan is to improve the economic, social and physical characteristics of the project neighborhood, and WHEREAS, the INHS project team has development experience and financial resources necessary to successfully develop and operate the proposed project and satisfies other criteria for designation as a Sponsor for an urban renewal project; and WHEREAS, the City of Ithaca Common Council, acting as lead agency for a segmented environmental review of the transfer of property to the IURA for the purposes of structuring an urban renewal project, determined the action will have no significant adverse impact on the environment, and RESOLVED, that the IURA hereby accepts transfer of property located at tax map parcel #71.-4-1.2, also known as 205 W. State Street, from the City of Ithaca via an option agreement for the purpose of structuring a proposed disposition and development agreement with an urban renewal project Sponsor to construct an affordable housing project, and be RESOLVED, that the City/IURA option agreement for 205 W. State St. shall include a contingency that the IURA cannot exercise the purchase option without Common Council approval, and be it further RESOLVED, that the IURA hereby designates INHS as a qualified and eligible Sponsor to undertake the Proposed Project on a site that includes 205 W. State Street, and be it further RESOLVED, that the IURA hereby finds that the following specific objectives of the Urban Renewal Plan are advanced by the Proposed Project: • improvement of the residential environment through a program of redevelopment, rehabilitation, conservation, and new construction to assure every family in Ithaca a decent home within its economic means; • provision of the full range of neighborhood and community facilities and services necessary to meet the residents’ needs, through new construction or improvement of existing facilities and programs; and be it further RESOLVED, that a disposition and development agreement to convey 205 W. State Street to INHS shall include the following terms: • Sales price: fair market value determined by appraisal • End use: construction of an approximately 50-unit affordable senior housing project with first-floor day care facility at 205-209 W. State • Seller contingency: closing subject to proof of funding commitments to complete the project • Expiration: the earlier of 3 years or upon loss of binding site control of property situated at 209 W. State St. And be it further, RESOLVED, that the IURA Chair, subject to review by legal counsel, is authorized to execute any and all agreements to implement this resolution, and be it further IURA Minutes February 28, 2025 Page 17 of 17 RESOLVED, that IURA shall be reimbursed for all reasonable costs incurred to structure and implement a proposed disposition and development agreement. Carried Unanimously: 5-0 B. Review of IURA Grant, Loan, & Lease Reports: January 2025 Bohn noted the mandate to spend down CDBG funds in a timely manner, and IURA is $330,000 away from spending down the funds and should be cognizant of the issue. All loans and leases are current except for a past-due payment on the expired RIBS lease. C. Reports from Mayor, IURA Chair, Common Council Liaison, & Staff Mayor’s Report Cantelmo congratulated the Mayor, the Director of Economic Development Glose, and the City of Binghamton team on winning this year’s DRI competition. He added that he was heartened to see that there is a continued commitment to investment in the Southern tier. He noted that the City of Ithaca submitted a strong application and illustrated the potential and vibrancy of the downtown and that he is committed to continuing those efforts to promote an affordable, welcoming, and prosperous community. IURA Chairperson None. Common Council Liaison Report None. Staff Report None. VIII. Adjournment The meeting was adjourned at 11:45 A.M. — END — Minutes prepared by S. Sean, edited by C. Pyott/N. Bohn.