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HomeMy WebLinkAboutMN-IURA-2025-01-24 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 9:00 A.M., Friday, January 24th, 2025 Common Council Chambers, Third Floor (City Hall) 108 E. Green St., Ithaca, NY 14850 Members: Robert G. Cantelmo (Mayor), Chair; Shaianne Osterreich; Siobhan Hull; Donna Fleming Excused: Karl Graham, Vice-Chair 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: Steve Flash, Finger Lakes Development, LLC (FLD) Jeff Rimland, Finger Lakes Development, LLC (FLD) [virtual] Neil Patel, Finger Lakes Development, LLC (FLD) [virtual] I. Call to Order Cantelmo called the meeting to order at 9:01 A.M. II. Agenda Additions/Deletions None. III. Public Comments Cantelmo reported that the IURA received the following two comments: I am in favor of the termination of the preferred status. Please do not extend this status any further. Please open this up again with wide distribution and search for a new preferred developer. Todd Kurzweil To: Ithaca Urban Renewal Agency Re: Inlet Island Approved: 3/28/25 IURA Minutes January 24, 2025 Page 2 of 16 Per today’s Ithaca Voice, I read that plans to develop Inlet Island include a 55-unit low-to-moderate income apartment building. How can you let that happen!! Please don’t let it happen. That is prime waterfront real estate that should be developed in an upscale way to benefit the City in tax revenue and can provide an improved environment to all citizens. We have seen what is happening at Asteri and Arthaus: trouble for everybody, especially the police, and even more reason not to come downtown. As just a small point, I used to walk the inlet, but now the waterfront next to the Arthaus is full of dog excrement as the residents don’t keep the place clean. Please don’t let that expand onto Inlet Island. OK, I don’t live in the City, but I care about the City of Ithaca as it is where I visit most often, and I do most of my shopping there so that is where my sales tax revenue goes. Thank you. Peter J. Davies IV. Review of Meeting Minutes: December 20th, 2024 Fleming moved, seconded by Hull, to approve the meeting minutes with no modifications. Carried Unanimously: 4-0 V. Economic Development Committee (EDC) A. Cinemapolis PILOT Hull explained that at the meeting of the Economic Development Committee on January 14, 2025, the committee voted in favor of amending the Cinemapolis lease to transfer responsibility for property taxes to Asteri Parking, LLC, in support of an application to the Tompkins County Industrial Development Agency for a PILOT agreement to benefit Cinemapolis. Hull moved, seconded by Fleming: Agreements to Facilitate a PILOT Benefiting Cinemapolis WHEREAS, on January 2, 2025, Seventh Art Corporation of Ithaca (“Cinemapolis”) requested IURA support for an application from Asteri Parking, LLC, on behalf of Cinemapolis, for a PILOT agreement from the Tompkins County Industrial Development Agency (“IDA”) to reduce or eliminate property taxes on the cinema lease premises, and WHEREAS, Asteri Parking LLC leases the Cinema premises at 120 E. Green Street to the IURA, who in turn subleases the premises to Cinemapolis, and WHEREAS, as a PILOT flows to the property owner, Asteri Parking LLC, who has property tax liability, a series of lease and sublease agreements are proposed to ensure the requested PILOT benefits Cinemapolis, including a transfer of responsibility for property taxes from Cinemapolis to Asteri Parking, LLC during the term of the PILOT, and IURA Minutes January 24, 2025 Page 3 of 16 WHEREAS, Asteri Parking LLC has applied for a PILOT to reduce or eliminate property taxes on the cinema premises leased by Cinemapolis, and WHEREAS, an initiative to reduce the tax liability of Cinemapolis was an element of the IURA-endorsed 2023 Cinemapolis Assistance Plan to support long-term financial stability of Cinemapolis, and WHEREAS, the IURA Economic Development Committee (“EDC”) considered this matter at their January 14, 2025 meeting and recommend the following actions; now, therefore, be it RESOLVED, that the IURA hereby endorses an application from Asteri Parking, LLC, on behalf of Cinemapolis, requesting a PILOT from the IDA on the cinema lease premises, and be it further RESOLVED, that the IURA approves the following agreements to facilitate the PILOT benefitting Cinemapolis while protecting the IURA from any new tax liability: 1. Amendment No. 1 to the Amended and Restated Sublease Agreement, Portion of Ground Floor of Green Street Garage (cinema space) between IURA and Seventh Art Corporation of Ithaca, and 2. Amendment No. 1 to the Amended and Restated Lease Agreement, Portion of Ground Floor of Green Street Garage (cinema space) between Asteri Parking, LLC and IURA, and 3. Indemnification and Hold Harmless Agreement between Seventh Art Corporation of Ithaca and IURA, and be it further RESOLVED, that the IURA Chairperson, subject to review by IURA legal counsel, is authorized to execute the above-referenced agreements in substance substantially similar to the draft lease agreements included in the EDC meeting packet and any other documents necessary to facilitate a PILOT from the IDA benefiting Cinemapolis. Carried Unanimously: 4-0 B. Community Development Lending 1. GreenStar Cooperative, Inc. Loan, Recast as Job Retention Activity Fleming explained that GreenStar Cooperative, Inc. (“GreenStar”) was previously granted a loan for job creation. Circumstances changed due to the COVID pandemic, and GreenStar is requesting a change in the use of the loan funds from job creation to job retention. Fleming moved, seconded by Hull: 2nd Modification to Loan Agreement with GreenStar Cooperative Market, Inc. (PB-LF #11) WHEREAS, on December 31, 2024, GreenStar Cooperative Market, Inc. (GreenStar) submitted a request to recast their CDBG loan as a job retention loan instead of a job creation loan due to COVID- 19 pandemic impacts on their business; and WHEREAS, on October 22, 2019, the IURA issued a $400,000 loan to GreenStar for a $7 million project to relocate and expand their flagship store to 770 Cascadilla Street, Ithaca, NY anticipated to result in the creation of twenty-four (24) FTE jobs; and IURA Minutes January 24, 2025 Page 4 of 16 WHEREAS, A federal national emergency related to the COVID-19 pandemic was declared from March 13, 2020 until April 10, 2023, and WHEREAS, CDBG regulations require a business loan to meet a ‘L/M Income Jobs’ test whereby the activity will create or retain permanent jobs, at least 51% of which, are held by low- and moderate- income (L/M) persons, and WHEREAS, a further public benefit CDBG test requires at least one full-time equivalent (FTE) job be created/retained for each $35,000 of CDBG assistance on a portfolio basis or for up to $50,000/job on an individual project basis, and WHEREAS, IURA policy allows two years to achieve job creation goals, and WHEREAS, through the third quarter of 2020, GreenStar created sixteen (16) FTE jobs, and WHEREAS, in December 2020, GreenStar announced they were temporarily closing the deli service station, made-to-order station and seating/dining area in response to COVID-19 concerns to maintain social distancing, and furloughed associated employees, and WHEREAS, on February 25, 2021, the IURA approved 1st modification to the loan amendment to grant a time extension for the borrower to achieve the 24 FTE job creation goal until December 31, 2021, and WHEREAS, pandemic impacts continued to adversely impact the business resulting is layoff of a total of 33 employees thereby erasing all job creation since the IURA loan was issued, and WHEREAS, GreenStar has regained financial stability with an existing employment base of 178 employees, but does not plan in the near term to create 24 FTE new jobs, and WHEREAS, GreenStar is current on loan repayments and the remaining principal balance on the loan was $233,892.47 as of December 31, 2024, and WHEREAS, in order to qualify ‘jobs retained’ to meet CDBG requirements, there must be clear and objective evidence that permanent jobs will be lost without CDBG assistance, such as lay-off notices or analysis of financial records which clearly and convincingly show the business will reduce employment without the planned intervention, and WHEREAS, 51% or more of the retained jobs must be held by low- and moderate-income persons, and WHEREAS, the requested loan modification does not constitute a substantial amendment per the City of Ithaca HUD Citizen Participation Plan as there is no substantial change to the purpose, scope, or beneficiaries of the change in the original approved terms nor any change to the original approved recapture terms in the event the applicant does not comply with the requirements of receiving assistance, and IURA Minutes January 24, 2025 Page 5 of 16 WHEREAS, as the requested loan modification does not constitute a substantial amendment, the IURA is allowed to approve the requested modification with notice provided to the Common Council, and WHEREAS, at their January 14, 2025 meeting, the IURA Economic Development Committee considered this matter and recommended the following action; now therefore be it RESOLVED, that the IURA finds that the assisted project to relocate and expand GreenStar’s flagship store to 770 Cascadilla Street was successfully accomplished, and be it further RESOLVED, that the IURA finds that the COVID-19 pandemic significantly impacted GreenStar’s ability to meet job creation goals established prior to the COVID-19 pandemic, and be it further RESOLVED, that the IURA hereby finds that financial records of the borrower clearly and convincingly show the business would have further reduced employment but for the CDBG assistance, and be it further RESOLVED, that the IURA hereby approves a 2nd modification to the loan agreement with GreenStar Cooperative Market, Inc. to recast the loan as a low/mod income jobs loan to retain jobs which would have been lost without CDBG assistance, on condition that self-certified income surveys of job holders of at least 8 FTE jobs shall be submitted to the IURA within 30 days of adoption of this resolution, and be it further RESOLVED, that at least 51% of such job holders of retained jobs shall further qualify as low/moderate income persons, and be it further RESOLVED, that the IURA Chair, subject to review by IURA legal counsel, is authorized to execute any and all agreements to implement this resolution. Carried Unanimously: 4-0 2. Ithaca Coffee Company, LLC, Espresso Bar at 702 Hancock St. Hull explained that the Ithaca Coffee Company, LLC is closing its Triphammer Road location due to increased costs and is seeking a $100,000 loan to renovate its space at 702 Hancock Street, which is currently used as a roasting facility and bakery, for a retail espresso bar. The Economic Development Committee voted in favor of the application at its January 14, 2025 meeting. Hull moved, seconded by Fleming: Loan Assistance to Ithaca Coffee Company 702 Hancock Espresso Bar — CD-RLF Project #49 WHEREAS, on December 9, 2024, Ithaca Coffee Company, LLC (“Borrower”) applied for $100,000 in loan assistance from the IURA to complete internal renovations to establish a retail espresso bar at 702 Hancock Street, Ithaca, NY, the location of the borrower’s coffee roasting facility and wholesale bakery, in conjunction with the closure of their retail location at Triphammer Mall, and IURA Minutes January 24, 2025 Page 6 of 16 WHEREAS, the primary objective of the Community Development Revolving Loan Fund (CD-RLF) is provision of direct financing for economic development activities that create employment opportunities, facilitate the expansion of business activity with the City of Ithaca and expand the commercial and industrial tax base, and WHEREAS, after consultation during the underwriting process, the proposed uses of project funds are: $100,000 Renovation/Buildout $15,000 Furniture, Fixtures and Equipment $85,000 Working Capital (payroll, utilities, rent, marketing, misc.) $200,000 Total, and WHEREAS, the proposed sources of project funds are: $100,000 Equity $100,000 IURA $200,000 Total, and WHEREAS, the IURA Economic Development Policy Financing Guidelines and Operating Plan for the CD- RLF requires creation at least one full-time equivalent (FTE) job for every $35,000 of loan assistance, and WHEREAS, the project is anticipated to retain 2.0 FTE and create 1.0 FE employment positions, resulting in $33,333 of loan assistance per job created/retained, and WHEREAS, ”economic development activities, including but not limited to, equipment purchase, inventory financing, interest subsidy, operating expenses and similar costs not associated with construction, or an expansion of existing operations” qualify as a “Categorical Exclusion Not Subject To § 58.5 activity” which does not require further environmental review under the National Environmental Protection Act (NEPA), and be it further WHEREAS, positive risk factors include: 1. Management has 20 years of experience operating the company and other businesses in the region. 2. Financial projections are logical based on historical results and show the company will return to profitability and cover debt obligations. 3. Ownership has good credit and a positive repayment history with the IURA. 4. IURA has a strong collateral position with a lien on the property, filing against assets, and personal guarantees from persons with substantial net worth 5. Project will create/retain 3 jobs and help activate new signalized intersection at Fifth/Rt. 13. WHEREAS, negative risk factors include: 1. The historical financial performance of the company has been poor in recent years. 2. The neighborhood does not have a lot of foot traffic or other retail options to drive foot traffic to the area. 3. The mortgage fling is in third position behind $295K of senior debt. IURA Minutes January 24, 2025 Page 7 of 16 WHEREAS, the IURA’s independent loan analyst categorized the loan to represent a minimal credit risk to the IURA, and WHEREAS, at its January 14, 2025 meeting, the IURA Economic Development Committee reviewed the loan application and the credit analysis prepared by Michael Thomas, Vice President, Harrison Studio, and recommend the following action; now, therefore, be it RESOLVED, that the IURA hereby approves a loan from the CD-RLF in accordance with the loan application and supplemental submissions, subject to the following terms: Borrower: Ithaca Coffee Company, LLC a New York State domestic corporation established in 2004 Loan Amount: Up to $100,000 Project: Addition of a retail espresso bar within the building where the borrower’s wholesale coffee roasting and bakery facility is located, at 702 Hancock Street, Ithaca, NY. Total Project Cost: $200,000 Projected Use of IURA Funds: Equipment and working capital including but not limited to payroll, utilities, rent, marketing, inventory, and other operating expenses. Funds cannot be used towards any expenses, such as construction, covered by The Davis-Bacon Act that would trigger prevailing wage requirements. Term: Interest-only payments for six (6) months followed by a seven- year term. Amortization: 84-months (7 year) amortization (after interest-only period) Interest Rate: 5.625% per annum (75% of current Prime rate of 7.5%). Rate is eligible to be reduced by 50 basis points to 5.125% annually when borrower establishes and continues an automatic loan payment through a financial institution to make timely level monthly payments on the loan beginning with initiation of level monthly loan repayments. The interest rate shall be reduced by 100 basis points upon: (1) submission of satisfactory job reports documenting that the job- creation goal has been achieved for two consecutive quarters; and (2) compliance with all other terms of the loan agreement. IURA Minutes January 24, 2025 Page 8 of 16 Repayment: Interest-only payments for six (6) months, then level monthly payments of principal and interest to fully amortize the loan over 84 months (approximately $1,442.94/month based upon the 5.625% interest rate stated above. Loan Collateral: 1. 3rd position mortgage lien on property located at 702 Hancock Street (subordinate to a 1st lien balance of $157,000 and a 2nd lien balance of $53,000 held by the IURA) 2. General UCC 1st security interest filing on all business assets, including equipment, inventory, furnishings, and fixtures now owned or hereafter acquired located at 702 Hancock Street, Ithaca, NY. Personal Guarantor(s): Julie Crowley; Lisa Kerslake Corporate Guarantee: 702 Hancock, LLC Job Creation: Retention/Creation of at least 3.0 (two) full-time equivalent (FTE) jobs of which at least 51% shall be filled by low- and moderate- income persons. Loan Conditions: 1. Borrower to provide proof of equity contributed toward the buildout of the property. Compliance to be determined at the sole discretion of the Director for Community Development. 2. Landlord Waiver from 702 Hancock, LLC authorizing borrower to access pledged collateral in event of default. Reporting: 1. Annual company Federal tax returns. And be it further, RESOLVED, that the Director of Community Development for the IURA is authorized to issue a Loan Commitment Letter in accordance with this resolution, and be it further RESOLVED, that the IURA Chairperson, upon the advice of IURA legal counsel, is hereby authorized to execute all necessary and appropriate documents to implement this resolution. Carried Unanimously: 4-0 C. Inlet Island Urban Renewal Project: Proposal to Terminate Exclusive Negotiation Agreement with Finger Lakes Development, LLC Cantelmo explained that after substantial debate, a resolution to terminate the Exclusive Negotiation Agreement with Finger Lakes Development (“FLD”) was tabled at the December 20, 2024 IURA Board meeting to allow FLD 30 days to provide an update on the feasibility of the project. IURA Minutes January 24, 2025 Page 9 of 16 Flash reported that much progress has been made, and a handshake MOU has been made with Baywood Hotels to proceed with a joint venture. Baywood Hotels has worked on other hotels in the area, has worked with the IURA previously, and offers much efficiency that enables FLD to go forward. He explained that a redesign for a 4-story building was done, considering the required elevation increase due to the flood map change, and that FLD has been working with Ithaca Neighborhood Housing Services, Inc. He added that Bigwood Hotels has in-house underwriting capacity, project management, and pre- construction estimating, providing financial security to move forward. A manager for the environmental clean-up has been identified as well. FLD would like to resume meetings in March with a redeveloped conceptual plan. Patel explained that Baywood Hotels is fast-tracking the project and has the expertise on the hotel and development sides to take on the project. He added that they have a conceptual plan and now need to spend funds on obtaining a cost estimate. Osterreich asked Bohn to give his opinion. Bohn responded that he believes that if there is better than a 50% chance that the project will move forward, it makes sense to provide a time extension but that an extension should be provided for a fee that is refundable upon closing to incentivize the developer to meet goals, and, if the project is not moving forward satisfactorily, then possibly a non-refundable extension fee should be considered. He stated that a signed disposition and development agreement is required. He added that public benefit from the waterfront area should also be considered. Osterreich asked what FLD would do with a 30-day extension. Flash replied that FLD would propose a preliminary meeting with the Planning Department as an informal process to start the project, noting that he assumed the Board was not in a position to approve conceptual plans. Bohn clarified that the process Flash referenced is the site plan and SEQR review process. He added that he believed it would be appropriate for the Board to review the conceptual plan to make sure it is consistent with the original vision. Cantelmo asked if there were a 50% chance the project would move forward and recommended a nonrefundable extension fee. Rimland commented that FLD spent several hundred thousand dollars on consulting, engineering, and architectural fees. Within the last six months, FLD learned that the flood map changed and that all their effort was for naught because the building at that point became unbuildable and the project unfinanceable. Through the IURA, they were introduced to Baywood Hotels, and the project was resurrected. He indicated that the additional money FLD will now need to expend is, in his view, sufficient to show their commitment to bringing the project forward and that placing a non-refundable penalty hinders the project. He stressed the need for the City’s support and partnership. IURA Minutes January 24, 2025 Page 10 of 16 Cantelmo explained the IURA’s concern about FLD’s previous lack of communication over several months and his skepticism about providing any extension. Rimland explained that the lack of communication was because, in FLD’s view, there was no project because it was unfinanceable. Bohn commented that Patel referenced some internal work, cost estimation, and redesign of the hotel but noted that there is still an open question on the site work as part of the financial feasibility. Once that information is known, a conceptual plan could be reviewed, but it would require an investment by the development team to reach that point. Fleming commented that any project with the same elements as FLD’s project would face the same issues and that if this project were terminated, the Common Council would need input on issuing a new RFP. Hull stated that the project's original intent was public access and waterfront recreation, and the conversation is now centered around the viability of the hotel and tourism aspect. She questioned that IURA has an exclusive development agreement with FLD, but FLD is no longer the hotel's primary developer. Flash responded that FLD is still directly involved, and whatever hotel is involved, FLD would still need another party to construct and manage the hotel. Bohn noted that the hotel contribution enables the developer to do the project and provide the public benefits. Nicholas suggested, in addition to making a site plan review schedule, engaging a design team to prepare a conceptual plan to address some of the issues brought up repeatedly with the original design. Patel explained that providing a conceptual plan within 30-40 days is possible if the engineer can move in conjunction with the architect as quickly as possible. Hull asked if any changes to the project's original proposed public access piece are anticipated. Rimland replied that no such changes are anticipated at this point. Flash explained that FLD would like to provide a financially feasible plan. Bohn commented that there is value in a revised plan that is financially feasible and that he believed it would take 60 days to provide the plan. Nicholas added that the design should have a written report of the considerations to aid decision-making. Oesterreich moved, seconded by Fleming: [<--needs confirmation] IURA Minutes January 24, 2025 Page 11 of 16 To table the resolution to terminate until the IURA March 28, 2025 Board meeting contingent on Finger Lakes Development, LLC providing the revised conceptual plan by March 24, 2025. Carried 3-1. D. Committee Chairperson Report Hull reported that the Committee reviewed and voted on GreenStar Cooperative, LLC, and Ithaca Coffee Company, LLC applications. VI. Governance Committee A. Procurement – Independent Contractors 1. Community Development Consulting: The Harrison Studio Fleming explained that The Harrison Studio provides loan underwriting services to the IURA and proposed a 3.4% rate increase from the current contract. Fleming moved, seconded by Hull: 2025 Procurement of Community Development Consulting Services — H. Sicherman/The Harrison Studio WHEREAS, the contract with H. Sicherman & Company, Inc./The Harrison Studio (Sicherman) providing community development consulting services, including loan underwriting, expires on February 29, 2024, and WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for procurement of professional services, the IURA selected Sicherman through a Request for Proposals (RFP) selection process in 2022, and WHEREAS, whereas per applicable procurement regulations, a contractor selected through an initial competitive selection process may be renewed for up to two additional one-year terms without undertaking a new competitive selection process, and WHEREAS, a proposed 2025 contract would constitute the third and final one-year extension of the base independent consultant contract, and WHEREAS, Sicherman submitted a proposal to continue providing community development services to the IURA in 2025 at the following hourly rates: • $185/hour – Harry Sicherman • $150/hour – Michael Thomas (loan underwriting), and WHEREAS, the 2025 rates represent a 3.4% increase from the current contract rates for loan underwriting services, and IURA Minutes January 24, 2025 Page 12 of 16 WHEREAS, IURA staff is highly satisfied with the quality of services provided by the Harrison Studio, and WHEREAS, the 2025 IURA budget authorized a total of $10,000 for community development and loan underwriting services, and WHEREAS, on January 17, 2025, the Governance Committee reviewed this matter and recommended the following action; now, therefore, be it RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a one- year contract extension to February 28, 2026 for independent contractor community development consulting services with H. Sicherman & Company, Inc. /The Harrison Studio, at a maximum hourly rate of $185 per hour with the total amount not to exceed $10,000, and be it further RESOLVED, that the source of such funds for community development consulting services shall be derived from a variety of funding sources, including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the appropriate source of funds for which the services were performed. Carried Unanimously: 4-0 2. Legal Services: Mariette Geldenhuys, Attorney & Mediator Fleming explained that Geldenhuys provides legal advice on a part-time basis and proposed a 2% rate increase from the current contract. Fleming moved, seconded by Hull: 2025 Procurement of Independent Legal Services: M. Geldenhuys WHEREAS, the contract for independent legal services with Mariette Geldenhuys, Attorney-at-Law (Geldenhuys) expires on February 28, 2025, and WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for procurement of professional services, the IURA selected Geldenhuys through a Request for Proposals (RFP) selection process in 2022, and WHEREAS, per applicable procurement regulations, a contractor selected through an initial competitive selection process may be renewed for up to two additional one-year terms without undertaking a new competitive selection process, and WHEREAS, a proposed 2025 contract would constitute the third and final one-year extension of the base independent consultant contract, and WHEREAS, Geldenhuys submitted a proposal to continue providing legal services to the IURA in 2025 at a maximum billing rate of $250 per hour, a 2.0% increase from the current contract rate of $245 per hour, and IURA Minutes January 24, 2025 Page 13 of 16 WHEREAS, the IURA staff is highly satisfied with the quality of legal services provided by Geldenhuys, and WHEREAS, the 2025 IURA budget recommended a total authorized contract amount of $17,000 for legal services; and WHEREAS, on January 17, 2025, the Governance Committee reviewed this matter and recommended the following action; now, therefore, be it RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a one- year contract extension through February 28, 2026 for independent contractor legal services with Mariette Geldenhuys, Attorney and Mediator, at a maximum hourly rate of $250 per hour with the total amount not to exceed $12,000, and be it further RESOLVED, that the source of such funds for legal services shall be derived from a variety of funding sources, including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the appropriate source of funds for which the services were performed. Carried Unanimously: 4-0 3. Legal Services: Law Offices of Sharon M. Sulimowicz Fleming explained that Sulimowicz provides legal advice on a part-time basis and proposed a one-year extension of the current contract at the same rate. Fleming moved, seconded by Hull: 2025 Procurement of Independent Legal Services: S. Sulimowicz WHEREAS, the contract for independent legal services with the Law Offices of Sharon M. Sulimowicz (Sulimowicz) expires on February 28, 2025, and WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for procurement of professional services, the IURA selected Sulimowicz through a Request for Proposals (RFP) selection process in 2022, and WHEREAS, per applicable procurement regulations, a contractor selected through an initial competitive selection process may be renewed for up to two additional one-year terms without undertaking a new competitive selection process, and WHEREAS, a proposed 2025 contract would constitute the third and final one-year extension of the base independent consultant contract, and WHEREAS, Sulimowicz submitted a proposal to continue providing legal services to the IURA in 2025 at a maximum billing rate of $225 per hour, a 0% increase from the current contract rate, and IURA Minutes January 24, 2025 Page 14 of 16 WHEREAS, IURA staff is highly satisfied with the quality of legal services provided by Sulimowicz, and WHEREAS, the 2025 IURA budget authorized a total of $17,000 for legal services, and WHEREAS, on January 17, 2025, the Governance Committee reviewed this matter and recommended the following action; now, therefore, be it RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a one- year contract extension to February 28, 2026 for independent contractor legal services with The Law Office of Sharon M. Sulimowicz, at a maximum hourly rate of $225 per hour with the total amount not to exceed $6,000, and be it further RESOLVED, that the source of such funds for legal services shall be derived from a variety of funding sources, including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the appropriate source of funds for which the services were performed. Carried Unanimously: 4-0 B. Committee Member Report Fleming reported that longtime member David Whitmore will be resigning from the committee. VII. Neighborhood Investment Committee A. HUD Entitlement Program 1. Time Extension for 2022 Project #2: Homeowner Rehabilitation Oesterreich explained that Ithaca Neighborhood Housing Services, Inc. had difficulty procuring sufficient bids and requested a 240-day extension to complete the project. Oesterreich moved, seconded by Cantelmo: Contract Modification – Time Extension for 2022 Project #2 “Homeowner Rehab” (INHS) WHEREAS, the City of Ithaca 2022 Annual Action Plan allocated $148,640.81 (comprised of $136,123.31 in CDBG funding and $12,517.50 in HOME funding) to Ithaca Neighborhood Housing Services (INHS) for Project #2 “Homeowner Rehab” (Project #2), and WHEREAS, in a letter to the IURA Director of Community Development Nels Bohn dated October 25, 2024, INHS requested an extension of at least 240 days to successfully complete Project #2, due to difficulty obtaining sufficient bids and delays related to identification of eligible candidates, and WHEREAS, the IURA Director of Community Development authorized an extension of 120 days, extending Project #2’s contract termination date from December 31, 2024 to April 30, 2025, and WHEREAS, any extension over 120 days must be reviewed and approved by the IURA Board, and IURA Minutes January 24, 2025 Page 15 of 16 WHEREAS, after review and discussion of the extension request with INHS staff at the January 10, 2025 meeting of the IURA Neighborhood Investment Committee (NIC), the IURA NIC recommended further extending Project #2’s contract to December 31, 2025, now, therefore be it, RESOLVED, that the IURA hereby authorizes the Director of Community Development to extend the contract for INHS 2022 Project #2 “Homeowner Rehab” to expire on December 31, 2025. Carried Unanimously: 4-0 2. 2025 Action Plan: Public Hearing Format – Discussion Oesterreich explained that the Neighborhood Investment Committee requested a change in the public hearing format. Currently, the allowance for presentations and Q&A is 12 minutes, but the time for Q&A is often insufficient. The committee proposes changing the structure to eight minutes for presentation and four minutes for Q&A. The committee also discussed the possibility of collecting and providing questions to the presenters before the hearing to integrate them into presentations. B. Committee Report None. VII. New/Other/Old Business A. Review of IURA Grant Summary: December 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… All loan payments are current except for Diane’s Downtown Auto. All lease payments are current. B. REPORTS: IURA Chair, Mayor, Common Council Liaison, & Staff Mayor’s Report None. IURA Chairperson None. Common Council Liaison Report Nguyen reported that the South Carolina Development Corporation contributed $125,000 to the Ithaca Farmers Market for the parking lot renovation project. Staff Report Bohn reported that the Shared Kitchen Ithaca project made progress in milestones due to $200,000 in private funding procurement and an award from the Appalachian Regional Commission. Opening to the public is planned for this spring. Mendizabal reported on conversations with REACH regarding the HOME ARP contract. IURA Minutes January 24, 2025 Page 16 of 16 VIII. Adjournment The meeting was adjourned by consensus at 10:35 A.M. — END — Minutes prepared by S. Sean, edited by C. Pyott/N. Bohn.