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HomeMy WebLinkAboutMN-IURAED-2026-02-10 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY Economic Development Committee (EDC) 3:30 P.M., Tuesday, February 10th, 2026 Common Council Chambers, 108 E. Green St., Ithaca, NY 14850 Present: Leslie Ackerman, Vice-Chair; Chuck Schwerin; Donna Fleming; Derek Adams Excused: Robert G. Cantelmo (Mayor) Vacancies: 0 Staff: Nels Bohn; Charles Pyott [virtual] Guests: None. I. Call to Order Vice-Chair Ackerman called the meeting to order at 3:38 P.M. II. Agenda Additions/Deletions None. III. Public Comments (3-minute max. per person) None. IV. Review of Meeting Minutes: November 18th, 2025 Fleming moved, seconded by Schwerin, to approve the minutes with no modifications. Carried Unanimously: 4-0 V. New Business A. Review of the Density District Priority Business Loan Fund Program — Discussion Bohn explained that the meeting agenda packet includes a memorandum concerning the Committee’s review of the Downtown Density District Priority Business Loan Fund (PB-LF). Key Discussion Points 1. Loan Program Structure & Purpose The IURA currently manages several small loan programs, originally created for different purposes over the past decades. Only two programs are actively used today: • Citywide CD Revolving Loan Fund (gap financing, capped at $100–150k, prohibits >35% alcohol sales) Approved/Adopted: 3/10/26 EDC Meeting Minutes February 10, 2026 Page 2 of 3 • Priority Business Loan Fund (more flexible, supports alcohol‑related businesses, targeted to the downtown density district) Members questioned if so many separate loan programs are in fact needed, given the small available loan balance (~$250k). 2. Outdated 2007 Priority Business List The current list of priority business types (from 2007) is widely considered outdated and overly narrow. Committee members agreed that: • The list should be replaced with broad categories and program goals, not specific business types. • The loan program should encourage flexibility rather than restrict applicants. 3. Incorporating Retail Study Findings A recent City‑funded retail study highlighted promising sectors like: • Arts & entertainment • Destination food & beverage • Vintage/consignment retail • Diversified entertainment Members agreed these areas may be more realistic and impactful than trying to attract “essential services” like pharmacies or groceries. They also recognized challenges with locating a downtown grocery, particularly due to delivery logistics and competition from Wegmans and Aldi. 4. Alcohol & Cannabis Eligibility The committee discussed loosening or removing the CD Fund’s 35% alcohol‑sales limit, which prevents aiding many restaurants and bars. Cannabis businesses may also need future policy consideration as State rules evolve. 5. Equity & Inclusion Support for underrepresented business owners should remain a priority, regardless of the specific business type. 6. Loan Fund Constraints HUD’s $35,000-per-job funding requirement still applies. Loan underwriting and risk management remain concerns, but Committee members expressed a preference for flexible, case‑by‑case review, rather than rigid prohibitions. 7. Next Steps Staff will: • Draft a revised loan program framework with broad eligibility categories. • Consider alcohol and cannabis policy updates. • Share drafts with the Downtown Ithaca Alliance for feedback. EDC Meeting Minutes February 10, 2026 Page 3 of 3 Future consolidation of unused IURA loan products may take place after the main loan program has been updated. VI. Old/Other Business A. IURA Financials Review: December 2025 Bohn reported that all loan payments and lease payments are current. Bohn reviewed the Grants summary, explaining that the left-hand “On Schedule” column calls out any projects (with a ) that are not progressing on schedule due to delays or limitations, and any issues are being addressed. B. Staff Report Bohn reported that the IURA is in the process of hiring a replacement for former IURA Accountant Kim Cook. VII. Adjournment The meeting was adjourned by consensus at 4:42 P.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.