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HomeMy WebLinkAboutMN-IURA-2025-03-28 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 9:00 A.M., Friday, March 28th, 2025 Common Council Chambers, Third Floor (City Hall) 108 E. Green St., Ithaca, NY 14850 Members: Robert G. Cantelmo (Mayor), Chair; Karl Graham, Vice-Chair; Shaianne Osterreich; Siobhan Hull; Donna Fleming Excused: None. Vacancies: 0 Common Council Liaison: Ducson Nguyen IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual] City Staff: Lisa Nicholas, Director of Planning & Development Guests: None. I. Call to Order Cantelmo called the meeting to order at 9:01 A.M. II. Agenda Additions/Deletions None. III. Public Comments IV. Review of Meeting Minutes: January 24, 2025, February 28, 2025, & March 7, 2025 Fleming moved, seconded by Hull, to approve the meeting minutes with no modifications. Carried Unanimously: 5-0 Approved: 4/25/25 IURA Minutes March 28, 2025 Page 2 of 5 V. 2025 HUD Entitlement Grant Action Plan A. Review of Schedule for Approval of Action Plan Mendizabal explained that the Board would review the recommendations from the Neighborhood Investment Committee and the Economic Development Committee to determine the final Action Plan to be recommended to the Common Council, followed by a narrative to be published on April 25, 2025, with 30 days for public review and comment, and including a second public hearing at the Common Council meeting on May 14, 2025. The public comment period would end on May 30, 2025. If adopted by the Common Council at its meeting on June 4, 2025, the final Action Plan would be submitted by the IURA on or before June 15, 2025. B. Disclosures of Potential Conflicts of Interest Graham disclosed that a close family member is the Executive of the Southside Community Center but is neither a spouse nor a child. C. Recommendation from Economic Development Committee – Review Bohn explained that the Economic Development Committee (EDC) recommended partial funding for applicants in the Economic Development category, totaling $280,000. The current balance available for loans was $200,000 and is expected to increase to approximately $260,000 by August 1, 2025. D. Recommendation from Neighborhood Investment Committee – Review Graham explained that the Neighborhood Investment Committee (NIC) recommendations prioritized projects serving the most vulnerable populations and providing affordable housing. The NIC felt that Community Development Block Grant (CDBG) funding was sufficient and recommended full funding for the Economic Development projects. He explained that the Southside Community Service Resiliency Hub project was transferred from Public Services to Public Facilities/Infrastructure because of the solar array aspects of the project, with a funding allocation of $58,000. The Public Services projects serving highly vulnerable populations were prioritized and fully funded. Funding was scaled back for some programs based on a review of program budgets, and specific programs were not funded due to funding limitations or because they did not align with a particular category. Mendizabal added that the Ithaca Neighborhood Housing Services, Inc. (INHS) 209 W. State St. project is eligible to receive a Community Housing Development Organization (CHDO) set-aside of 15% of the awarded funding, which is $34,800, requiring a reduction of the CDBG funding from $100,000 to $65,200. Osterreich asked about fully funding the Habitat for Humanity of Tompkins & Cortland Counties (“Habitat”) program. Hull asked about the NIC’s reasoning for not granting funding to Black Hands Universal’s applications in the Housing and Public Services categories. Graham explained that there were many questions regarding the size of the housing project and whether the organization had the capacity to implement the project within project funding timelines. IURA Minutes March 28, 2025 Page 3 of 5 Osterreich added that a large portion of the requested funding was intended as a down payment on a building, and the implementation of the project was a major concern. Nor were the mortgage details included in the application. Regarding Black Hand Universal’s Career Resources Project application, Graham explained that there were again questions about the organization’s capacity to operate the project; and the amount requested was substantial, considering the prioritization of projects and the availability of other similar programs. Mendizabal explained that additional funding could be granted to Habitat but that funding to The Learning Web, Inc. Housing Scholarship Program and the Catholic Charities of Tompkins/Tioga Counties Security Deposit Assistance for Vulnerable Housing Households program would be reduced. E. IURA-Recommended Draft 2025 City of Ithaca Action Plan Fleming moved, seconded by Graham (as amended): Draft 2025 Action Plan: City of Ithaca — HUD Entitlement Program WHEREAS, the City of Ithaca (City) is eligible to receive an annual formula allocation of funds to address community development needs through the U.S. Department of Housing & Urban Development (HUD) Entitlement program from the Community Development Block Grant (CDBG) Program and the HOME Investment Partnerships (HOME) Program funding sources, 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, on an annual basis, an Action Plan must be submitted to HUD to access HUD Entitlement Program funding allocated to the City, and WHEREAS, the 2025 Action Plan identifies a specific list of budgeted community development activities to be funded from the 2025 HUD Entitlement Program allocation and associated funds administered by the IURA, and WHEREAS, the IURA employed an open and competitive project selection process for development of the 2025 Action Plan in accordance with the City’s Citizen Participation Plan, and WHEREAS, a two-part Public Hearing to review 2025 Annual Action Plan proposals was held on February 28, 2025 and March 7, 2025, and WHEREAS, due to the delayed adoption of the Federal 2025 budget, the U.S. Department of Housing and Urban Development (HUD) has yet to release the 2025 CDBG and HOME funding allocations to the City, and WHEREAS, anticipated funds to be allocated through the 2025 Action Plan funding process include the following: IURA Minutes March 28, 2025 Page 4 of 5 $636,000.00 CDBG 2025 Allocation $160,000.00 CDBG 2025 Projected Program Income $232,000.00 HOME 2025 Allocation $ 5,997.48 HOME Recaptured/Unallocated (R/U) $ 6,055.80 HOME 2024 Project #1, “The Beacon” (CANCELLED) $1,040,053.28 Total, and WHEREAS, the IURA developed a draft 2025 Action Plan for public comment and Common Council consideration that includes contingencies to accommodate the possibility that actual HUD allocations may differ from anticipated allocations; now, therefore, be it RESOLVED, that the IURA hereby adopts the attached summary table titled “IURA Neighborhood Investment Committee Recommended 2025 Action Plan, City of Ithaca, NY,” dated March 21, 2025, as modified at the March 28, 2025 IURA meeting as the IURA-recommended 2025 Action Plan, and forwards it to the City of Ithaca Common Council for review and approval for allocating the 2025 HUD Entitlement Program award, along with associated funds listed above; and be it further RESOLVED, should the City’s 2025 HOME allocation be greater than anticipated, the increase will be distributed on an equal percentage basis among recommended projects whose requests were scaled down from their request. Fully funded projects will not be increased unless there is a remainder to be distributed after the scaled projects have been fully funded, and be it further. RESOLVED, should the City’s 2025 HOME allocation be less than anticipated, the decrease will be distributed on an equal percentage basis to Project #1, 209 W. State St. – CHDO Set-Aside Project (INHS), Project #3, Housing Scholarship Program (The Learning Web, Inc.), and Project #5, Security Deposit Assistance for Vulnerable Families (Catholic Charities of Tompkins/Tioga Counties), and be it further, RESOLVED, should the City’s 2025 CDBG allocation be greater than anticipated, the increase will be distributed on an equal percentage basis among recommended projects whose requests were scaled below their funding request. Fully funded projects will not be increased unless there is a remainder to be distributed after the scaled projects have been fully funded, and be it further, RESOLVED, should the City’s 2025 CDBG allocation be less than anticipated, the decrease will be distributed on an equal percentage basis among projects with the exception that Project #4, and Projects #13, and #15 in the Public Services category shall remain fully funded (except in the case that the Public Services 15% cap requires that these projects also require scaling), and be it further RESOLVED, that staff shall be authorized to round final funding amounts to the nearest $100, eliminate any Public Services project with funding of less than $3,000, and be it further, RESOLVED, that the Urban Renewal Plan shall be amended to include activities funded in the adopted 2025 Action Plan (as represented by the accompanying chart). Carried Unanimously: 5-0 IURA Minutes March 28, 2025 Page 5 of 5 Cantelmo suggested asking the City to further capitalize the loan fund. Osterreich agreed. Graham added that it could also be for operational support. Nguyen remarked that any request should be related to specific economic development activity. VI. New/Other/Old Business A. Review of IURA Grant Summary: February 2025 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, including the Homeowner Rehab project and the Cecil Malone Dr. Pedestrian Improvements project. All loan payments are current. All lease payments are current, except for Southside Community Center (SCC). B. REPORTS: IURA Chair, Mayor, Common Council Liaison, & Staff Mayor’s Report Cantelmo reported that the City will begin the budget process at the beginning of May and that the Board should consider formal proposal requests. IURA Chairperson None. Common Council Liaison Report Nguyen reported that the public hearing will be in the second week of May. Staff Report Bohn reported that the Hospitality Employment Training Program (HETP) 10th Anniversary Celebration is scheduled for April 19, 2025. He also referenced a press release about the Community Outreach Worker Program, which has resumed in the downtown and West End areas, resulting in more resources being available. VIII. Adjournment The meeting was adjourned by consensus at 10:14 A.M. — END — Minutes prepared by S. Sean, edited by C. Pyott/N. Bohn.