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HomeMy WebLinkAboutMN-PEDC-2021-01-20 Approved at the October 20, 2021 PEDC Meeting City of Ithaca Planning & Economic Development Committee Wednesday, January 20, 2021 – 6:00 p.m. Common Council Chambers, City Hall, 108 East Green Street 01-20-2021 Planning and Economic Development Committee Meeting - YouTube Minutes Committee Members Attending: Joseph (Seph) Murtagh, Chair; Cynthia Brock, Stephen Smith, Donna Fleming, and Laura Lewis Committee Members Absent: None Other Elected Officials Attending: Alderpersons Ducson and McGonigal Staff Attending: JoAnn Cornish, Director, Planning and Development Department; Tom Knipe, Planning; Bryan McCracken, Planning; Nels Bohn, IURA; Nick Goldsmith, Planning; and Deborah Grunder, Executive Assistant Others Attending: Bruce Adib-Yazdi, Jennifer Tavares, Peggy Coleman, and Gary Ferguson Chair Seph Murtagh called the meeting to order at 6:00 p.m. 1) Call to Order/Agenda Review No changes were made to the agenda. 2) Public Comment The following people spoke in favor of the Green New Deal: Celia Bakaitis, 55 Elston Hill Road, Van Etten Hannah Brodsky, 1 Country Road, Ithaca Zasu Scott, 117 Stewart Avenue, Ithaca Chelsea Steffes, 931 N. Tioga Street, Ithaca Rebecca Evans, W. Seneca Street, Ithaca Approved at the October 20, 2021 PEDC Meeting 3) Special Order of Business a) Public Hearing – Green Street Garage Urban Renewal Project Alderperson Brock moved to open the public hearing; seconded by Alderperson Smith. Carried unanimously. Three (3) written comment were read into the record. They are attached to these minutes. Alderperson Brock moved to close the public hearing; seconded by Alderperson Fleming. Carried unanimously. 4) Announcements, Updates, Reports There were no announcements, updates, or reports. 5) Action Items (Voting to Send onto Council) a) Inter-municipal Agreement Regarding Historic Preservation Planning Staff Services with the Town of Ithaca Authorization for Mayor to Execute “Inter-Municipal Agreement Regarding Historic Preservation Staff Services Moved by Alderperson Lewis; seconded by Alderperson Fleming. Carried unanimously. WHEREAS, the City and Town of Ithaca value intermunicipal collaborations and partnerships that advance our shared goals and equally benefit citizens of both municipalities, and WHEREAS, the Town is interested in protecting its historic resources as outlined in the Town of Ithaca Comprehensive Plan, and the City has an established historic preservation program that has successfully protected its historic resource for almost 50 years, and WHEREAS, the Town is interested in partnering with the City to explore opportunities to enact a Landmarks Preservation Law that mirrors that of the City and establishes a joint City and Town of Ithaca Landmarks Preservation Commission, and Approved at the October 20, 2021 PEDC Meeting WHEREAS, the Town allocated up to $7,000 in its 2021 Municipal Budget to fund a portion of the City’s Historic Preservation and Neighborhood Planner position for time used to investigate and advanced this shared services opportunity, now therefore be it RESOLVED, that the members of the Planning and Economic Development Committee support the City’s partnership with the Town for the above expressed purpose, and be it further RESOLVED, that the Committee recommends to Common Council authoring the Mayor to execute the “Inter-Municipal Agreement Regarding Historic Preservation Staff Services.” Alderperson Lewis asked about the number of positions and will the Town and the City receive the same amount. Alderperson Brock asked whether this came about due to the need of the Town to protect their properties. Alderperson Smith questioned whether this can be achieved without hindering services that are currently being provided. Bryan McCracken, Historic Preservation Planner, doesn’t believe that the services he provides to the City will be impacted. Alderperson Fleming asked who would handle the technology for this. McCracken stated it will be handled by the company who handled it last year. b) Certified Local Government Subgrant for 2021 Statewide Historic Preservation Conference – Authorization to Apply Moved by Alderperson Fleming; seconded by Alderperson Lewis. Carried Unanimously. WHEREAS, the Landmarks Society of Western New York (LSWNY), NYS Office of Parks, Recreation and Historic Preservation (NYS OPRHP), and the Preservation League of New York State partner with a host community each year to present a statewide historic preservation conference, and WHEREAS, the LSWNY has invited the City of Ithaca to act as the host community for the 2021 Statewide Historic Preservation Conference, which will be held virtually due to continued concerns related to the COVID-19 Pandemic, and WHEREAS, as the host community, the City of Ithaca would help fund the conference Approved at the October 20, 2021 PEDC Meeting by securing a Certified Local Government Subgrant from the NYS OPRHP, and WHEREAS, subgrant funds would support a day long workshop by Incremental Development; keynote speaker fees and honorariums; printing, graphic design, and mailing expenses; an audiovisual consultant to manage the technical aspects of the virtual format; and Conference scholarships for approximately 100 attendees from NYS CLG communities, City of Ithaca staff, elected officials and residents, and other New York residents, and WHEREAS, the estimated expenses to be funded by the CLG Subgrant are $22,464, and WHEREAS, the CLG Subgrant is wholly reimbursable and does not require a local match, now therefore be it RESOLVED, that the members of the Planning and Economic Development Committee enthusiastically support the City’s partnership with the Landmarks Society of Western New York, the Preservation League of New York State and the NYS Office of Parks, Recreation and Historic Preservation to present the 2021 Statewide Historic Preservation Conference, and be it further RESOLVED, that the Committee recommends to Common Council authorization of planning staff to apply for a Certified Local Government Subgrant in an amount not to exceed $23,000 to help fund said conference. McCracken explained what the conference is and where it’s held. Last year it was done virtually. This year will be the same. The grant will be used to support the keynote speaker and City elected officials. It will fund 100 out of 400 participants. The City will front the money and then be reimbursed. There is no match. c) Green Street Garage Urban Renewal • Disposition and Development Agreement for Vecino Alderperson Fleming stated she won’t vote in favor of this because she’s not in favor of the conference center. Alderperson Brock also stated she will be voting against this. She thanked all who have worked on this. Approved at the October 20, 2021 PEDC Meeting Alderperson McGonigal stated he is concerned about the businesses on the south side of the Commons. He is worried about access to and parking for City Hall. Bohn stated that there is currently an easement in place which will continue with this project. It may be a bit smaller due to the size of the building. Bruce Adib-Yazdi, Vecino, provided a construction diagram of the project. Alderperson Brock asked about the housing management firm for this project. She pointed out that this firm is mostly known for their work in senior housing. She wondered if this would be a problem. Bohn stated that this property management team has thoroughly looked at this management firm. Their experience is broad and are familiar with central New York housing. Alderperson Lewis stated that this project has been discussed for a very long time. It has been thoroughly looked at. She agreed that there is a risk of this property particularly the conference center. The conference center will not be built until 2024. Alderperson Nguyen asked about adaptive re-use in the event the conference center fails. Bohn stated there are tall floor to ceiling rooms in the center. He turned this over to Bruce Adib-Yazdi. Adib-Yazdi stated anything is possible in the center if need be. It would be very expensive, but it is feasible. Bohn stated the first floor could always be retail space, office space, or a new City Hall. It is a specifically designed building. Alderperson McGonigal asked whether Vecino will include local labor. Bohn stated that 30% for local labor is included. Nicholas Robertson stated that one of the challenges of local labor is you don’t really know if you’re going to match the procurements. We want to pursue it because we don’t want to bring in out-of-town labor when local labor is staying home. Alderperson McGonigal thanked the team for keeping local labor considered and is also happy that local labor is keeping busy. Approved at the October 20, 2021 PEDC Meeting Alderperson Murtagh stated he thinks this is a really good project. Is there the assumption that we will be back to in person conferences? Is there a concern that in-person conferences is a way of the past? Tom Knipe answered that the conference center is run mostly by the occupancy tax. He provided projections as to the return to normal. This is a smaller conference center compared to many. We are not competing with the bigger centers. There is a lot of pent-up demand of travel and in- person interaction. Peggy Colman stated the surveys that were done this past December not at the start of the pandemic. Ithaca is looked on as a smaller, remote place. Those surveyed thought that their staff will be much safer in a place like Ithaca. Alderperson Murtagh asked if the conference center will be used for other things than just City events. Gary Ferguson stated yes, the center will be used for community rates at differential rates. We are very committed to providing this pricing. Nels Bohn provided new numbers and percentages to equal 100%. Disposition & Development Agreement West and Center Sections of Green Street Garage Mixed -Use Urban Renewal Project Moved by Alderperson Lewis; seconded by Alderperson Smith. Carried 3-2. WHEREAS, on October 4, 2017, the City of Ithaca Common Council authorized transfer of the Green Street Parking Garage property located at 120 E. Green Street (tax parcel #70.-4-5.2) to the IURA, via an option agreement, for the purpose of structuring a proposed property sale and development agreement with a preferred developer to undertake an urban renewal project subject to approval by the Common Council, and WHEREAS, the Common Council further directed the IURA to seek out the following programmatic elements to be included in the project: • A conference center; • Housing units specifically designed to appeal to a diverse demographic, including a substantial number of units to be affordable to low and/or middle-income households; • Street level active uses along Green Street; • Retention of the Cinemapolis movie theatre and a public walkway between Green Street and the Commons; • At least 450 parking spaces open to the public, of which at least 90 will be available for short-term parking; and Approved at the October 20, 2021 PEDC Meeting WHEREAS, on November 22, 2017, the IURA issued a Request For Proposals to developers to undertake the urban renewal project, and WHEREAS, on December 13, 2018, the IURA designated Vecino Group New York, LLC as a qualified and eligible sponsor, pursuant to Section 507 of General Municipal Law, to acquire the west and center sections of the Green Street garage (part of tax parcel #70.-4-5.2) located at 120 E. Green Street, Ithaca, NY for the purpose of undertaking an urban renewal project, and WHEREAS, on August 29, 2019, the IURA conditionally approved a Disposition and Development Agreement (DDA) with the Vecino Group New York, LLC (Developer) for the urban renewal project, subject to environmental review and Common Council approval, and WHEREAS, in response to concerns expressed by the City of Ithaca Planning and Development Board and an adjacent property owner, the project was revised to increase separation distances between neighboring residential towers resulting in a decrease of 36 housing units, which has subsequently received site plan approval, and WHEREAS, on September 22, 2020, the City of Ithaca Planning & Development Board, acting as Lead Agency, determined that the Project will result in no significant adverse impacts on the environment, and WHEREAS, a change in the number of housing units in the project, and other clarifications, requires an amendment to the DDA, and WHEREAS, on November 23, 2020, the IURA conditionally approved a revised DDA, dated November 5, 2020, subject to Common Council approval, for a redevelopment project including the following components: • at least 181 housing units affordable to households earning between 40%-80% of Area Median Income (AMI); • Approximately 356 new and refurbished public parking spaces located in the center section of the garage; • A 49,000 sq. ft. conference center with street-level active use • 2,000 sq. ft. of DPW lease space for the City of Ithaca Department of Public Works; • retention of the Cinemapolis movie theater; and, • Retention and improvement of the public pedestrian connection between E. Green Street and The Commons, and WHEREAS, the DDA governs the terms and conditions for conveyance of project site and implementation of the approved urban renewal project, and includes a project term sheet and schedule of performance milestones, and Approved at the October 20, 2021 PEDC Meeting WHEREAS, under §507 of Article 15 of General Municipal Law, the IURA is authorized to sell real property to a “qualified and eligible sponsor” subject to Common Council approval following a public hearing, and WHEREAS, a public hearing notice was published in the January 8, 2021 edition of the Ithaca Journal disclosing the essential terms of the proposed sale and a public hearing was held on January 20, 2021, and RESOLVED, that the City of Ithaca Common Council hereby approves the IURA -proposed Disposition and Development Agreement (DDA) with Vecino Group New York, LLC for the west and center sections of the Green Street Garage Mixed-Use Urban Renewal project site, dated November 5, 2020, and be it further RESOLVED, that the net proceeds from sale of real property shall be paid to the City. • Resolution to Recommend Adoption of City Hotel Room Occupancy Tax Local Law Moved by Alderperson Lewis; seconded by Alderperson Brock. Carried unanimously. Local Law No. ____-2021 A local law entitled the “City of Ithaca Room Occupancy Tax.” WHEREAS, on February 5, 2020, Common Council adopted a resolution stating the City’s “commitment to pursue a City of Ithaca hotel occupancy tax and commitment to provide a shared financial guarantee with Tompkins County”, and WHEREAS, on June 3, 2020, Common Council adopted a resolution requesting that the NY Senate and Assembly enact the home rule legislation submitted by Assemblywoman Barbara Lifton and Senator Tom O’Mara to enable the City to implement a hotel occupancy tax; and WHEREAS, the City of Ithaca hotel tax legislation passed the Assembly and Senate in July 2020, and in December 2020, Governor Cuomo signed it into law as part of the state tax code: Article 29, Part 1, Subpart A, Section 1202-GG*2 “Hotel or motel taxes in the city of Ithaca;” now Approved at the October 20, 2021 PEDC Meeting BE IT ENACTED by the Common Council of the City of Ithaca as follows: Section 1. Legislative Findings, Intent, and Purpose. Pursuant to Tax Law 1202-gg, the City of Ithaca is authorized to adopt a local law relating to the implementation and assessment of tax on persons occupying hotel or motel rooms in such city. The Common Council makes the following findings of fact: A. The assessment of a City hotel tax will support the construction and operation of the conference center. B. Pursuant to the state enabling legislation, the City is authorized to charge up to 5% ad valorem tax on overnight accommodations. Such funds are earmarked for the conference center, with allowances for the City to retain up to 4% of such revenue for administration of the local law. The Common Council finds that the hotel tax is critical to creating and maintaining a conference center within the City. Section 2. Code Amendment The City Code is hereby amended to insert a new Chapter entitled “City of Ithaca Room Occupancy Tax” as included with this Local Law to create and impose a hotel tax within the City of Ithaca. Section 3. Severability Clause. Severability is intended throughout and within the provisions of this Local Law. If any section, subsection, sentence, clause, phrase, or portion of this Local Law is held to be invalid or unconstitutional by a court of competent jurisdiction, then that decision shall not affect the validity of the remaining portions of this Local Law, except as otherwise provided in Section 3 and Section 4(D). Section 4. Effective Date. This Local Law shall take effect upon filing in the office of the Secretary of State, and pursuant to the requirements of enabling legislation, this local law shall be in effect for three years from the effective date of its enactment. Upon expiration of this local law, another local law may be enacted to take its place. Approved at the October 20, 2021 PEDC Meeting Tom Knipe provided a presentation on what was looked at and studied to come up with the current contract. He further stated that 2020 was down 58% in county room tax collections. The projections is to return to 2019, and peak in 2025 – a conservative six-year recovery. We do assume a 25% tax-exemptions. We are not assuming any tax collections on short-term AirBnB stays, but we predict $200k in additional revenues. Knipe went through the operating budget provided in the agenda packet. There is a significant loss in Year 1. In Year 3, the loss is more than half of Year 1. Alderperson Brock asked whether it is state law that room tax can only be used for the conference room and not any other expenses. Tom Knipe stated that is correct. Attorney Lavine stated there is a bit of little wiggle room that was built into the negotiations. Alderperson Brock asked how the payments back to the City will be handled. Nels Bohn the financial support from the City is for the full length of the loan, but no payments are due during the first two years. Brock also asked why it’s entitled to a voluntary collection agreement when it really isn’t voluntary. Knipe answered that the host would be liable for payment of the tax to the City. They have agreed to this liability. Alderperson Brock asked for clarification that AirBnBs are being replaced by other BnB-type accommodations. Peggy Coleman stated that VRBO has a total of 165 listings countywide while AirBnB has 1,053 listings in the county. • City Financial Support for Public Portions of the Project City Participation to Finance the Public Portions of the Green Street Garage Mixed-Use Urban Renewal Project (West and Center Sections) Moved by Alderperson Murtagh; seconded by Alderperson Lewis. Carried 4 -1. Approved at the October 20, 2021 PEDC Meeting WHEREAS, implementation of the urban renewal urban renewal project identified in the Disposition and Development Agreement with Vecino Group New York, LLC (Vecino) is contingent upon securing project financing, and WHEREAS, Vecino proposes separate financing for each of the three major components of the mixed-use project: 1. Affordable housing 2. Parking garage renovation and construction 3. Conference Center, and WHEREAS, Vecino will finance the affordable housing component without City involvement, but requires City participation for financing the public components of the project, and WHEREAS, section 503 of Article 15 of General Municipal Law of the State of New York authorizes the City to plan and undertake one or more urban renewal projects and to enter into any and all related agreements to assist in carrying out and effectuating an urban renewal project, and WHEREAS, financing for the parking garage and conference center is proposed to derive from taxable revenue bonds issued by the Tompkins County Industrial Development Agency to fund development costs (series 2021A parking bonds and series 2021B conference center bonds), and WHEREAS, bond financing is structured to provide a fixed interest rate with level annual principal and interest payments for 30 years to retire the bonds following an interest -only period during construction, and WHEREAS, the proposed financing structure requires Vecino to pay principal and interest on the taxable revenue bonds, and WHEREAS, Vecino, in turn, seeks rental payments from leases of the completed conference center and parking garage to meet bond obligations, and WHEREAS, as neither the conference center nor the parking garage is projected to generate earned revenues sufficient to retire bonds, the revenue bonds are only marketable with participation by the City of Ithaca, and WHEREAS, the major parties and roles involved in the contemplated financing are: • Tompkins County Industrial Development Agency – conduit bond issuer • Asteri Conference Center, LLC – owner of conference center (affiliate of Vecino Group New York, LLC) • Asteri Garage, LLC – owner of parking garage (affiliate of Vecino Group New York, LLC) • Downtown Ithaca Local Development Corporation (LDC) – not-for-profit entity leasing the conference center Approved at the October 20, 2021 PEDC Meeting • City of Ithaca (City) – lessee and financial supporter of public components of the Project, and WHEREAS, the following City participation is required to secure proposed financing for the conference center and parking garage components of the Project: • City lease from Vecino of an approximately 350-space parking facility (30-year term with option to acquire facility at end of the lease term) • City lease from LDC of an approximately 2,000 square foot DPW maintenance space (30-year term) • City/Vecino Parking Garage Financial Assistance Agreement – City commitment, subject to annual appropriation, to pay series 2021A bond payments to the extend there is a shortfall from parking lease revenues to meet bond obligations • City/LDC Conference Center Financial Assistance Agreement – City commitment, subject to annual appropriation, to pay series 2021B bond payments to the extent there is a shortfall from conference center lease revenues to meet bond obligations • Amendments to 2003 agreements to release M&T Bank’s leasehold mortgage and assignment of rents held on the Green Street garage premises, and WHEREAS, the projected level principal and interest payments on the Series 2021A parking bonds is estimated at $840,000 per year under current market conditions, and WHEREAS, the projected level principal and interest payments on the Series 2021B conference center bonds is estimated at $1,550,000 per year under current market conditions, and WHEREAS, the all-in true interest cost on the bonds is projected to fall within a range of 3.9% - 4.2% under current market conditions, and WHEREAS, the rental rate on the City lease of the parking garage will be established to cover principal and interest payments on the Series 2021 -A parking bonds, and WHEREAS, the rental rate on the City lease of City Department of Public Works maintenance facility is projected at a fixed $13.50/square foot/year, and WHEREAS, a new City hotel room occupancy tax will be established and revenues from this new tax are projected to cover the cost of the series 2021B bond payments for the conference center, and therefore a shortfall from conference center lease payments is not anticipated, and WHEREAS, environmental review on the Project was completed by the Planning and Development Board on September 22, 2020; now, therefore, be it RESOLVED, that the City of Ithaca Common Council hereby determines it is in the interest of the City to increase public parking and construct a conference center in the downtown core of Approved at the October 20, 2021 PEDC Meeting the city, and financially participate in the urban renewal project to ensure its financial success, and be it further RESOLVED, that the City of Ithaca Common Council hereby authorizes the undertaking of the urban renewal project by Vecino and approves the following agreements to support the parking garage and conference center components of the Green Street urban renewal project: 1. Parking lease - City lease from Vecino of an approximately 350-space parking facility (30-year term with option to acquire facility at end of the lease term) 2. DPW lease - City lease from Downtown Ithaca Local Development Corporation (LDC) of an approximately 2,000 square foot DPW maintenance space (30-year term) 3. City/Vecino Parking Garage Financial Assistance Agreement - City commitment, subject to annual appropriation, to pay series 2021A parking bond payments in an amount sufficient to cover any deficiency from parking garage rent payments to meet bond obligations 4. City/LDC Conference Center Financial Assistance Agreement - City commitment, subject to annual appropriation, to pay series 2021B conference center bond payments in an amount sufficient to cover any deficiency from conference center lease revenues to meet bond obligations 5. Amendments to 2003 agreements to release M&T Bank’s leasehold mortgage and assignment of rents held on the Green Street garage premises, and be it further RESOLVED, that the Mayor, subject to review by the City Attorney, is authorized to execute and deliver the above agreements upon satisfaction of the following conditions: • Execution of a City/Tompkins County agreement to provide 4% of room tax collections to support the conference center • Execution of a Funding and Financial Oversight Partner agreement between the City, the Downtown Alliance, the Tompkins County Chamber Foundation, and the Downtown Ithaca Local Development Corporation • Execution of a lease agreement between the Downtown Ithaca Local Development Corporation, LLC, and Asteri Conference LLC • Tompkins County Industrial Development Agency approval of a PILOT agreement reducing the property tax obligation on the public parking garage and conference center leasehold premises to less than $100 per year for the duration of the bond financing. 6) Action Items (Voting to Circulate) a) Ithaca Energy Code Supplement Approved at the October 20, 2021 PEDC Meeting JoAnn Cornish reminded everyone that this was slowed down because of the pandemic and the Green New Deal. Nick Goldsmith highlighted some changes to the ordinance and supplement. Many comments were received on this. All were very similar in wording. Nick Goldsmith stated from the first draft they received over 100 comments. Alderperson Murtagh stated that people want to see the 12 points be lowered to 6 points. JoAnn Cornish stated that any new projects that have come forward are recommended to look at the energy code supplement as a guide for this project. 6) Review and Approval of Minutes a) August and September 2020 Moved by Alderperson Fleming; seconded by Alderperson Smith. Carried unanimously. 7) Adjournment Moved by Alderperson Fleming; seconded by Alderperson Smith. Carried unanimously. The meeting was adjourned at 9:05p.m.