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HomeMy WebLinkAboutMN-IURA-2025-11-20 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 9:00 A.M., Thursday, November 20th, 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 [virtual] IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual] City Staff: Lisa Nicholas, Director of Planning & Development Guests: Carrie Cuinn, Ithaca Farmers Market, Operations Manager I. Call to Order Cantelmo called the meeting to order at 9:00 A.M. II. Agenda Additions/Deletions None. III. Public Comments None. IV. Review of Meeting Minutes: October 23, 2025 Graham moved, seconded by Fleming, to approve the meeting minutes with no modifications. Carried Unanimously: 5-0 V. Economic Development Committee (EDC) A. Steamboat Landing Sublease: Request from Ithaca Farmers Market Cooperative, Inc. to Authorize Parking Agreement with Cayuga Medical Associates Hull explained that the Ithaca Farmers Market requested authorization to enter into an agreement to sublease 74 parking spots to Cayuga Medical. The EDC was generally in favor but questioned whether the use would interfere with certain Farmers Market events during the week. The Cayuga Medical agreed to Approved: 12/18/25 IURA Minutes November 20, 2025 Page 2 of 9 block out specific dates of certain events in response to concerns raised about the impact on public accessibility of the market space. Hull moved, seconded by Fleming: Authorize Parking Agreement with Cayuga Health at Steamboat Landing WHEREAS, the Ithaca Farmers Market Cooperative, Inc. (“IFM”) seeks approval for a 75-vehicle parking agreement with Cayuga Medical at the City-owned Steamboat Landing site, and WHEREAS, as of 2010, the City leases the 5.8-acre Steamboat Landing site (“Leased Property”) to the Ithaca Urban Renewal Agency (IURA) and the IURA subleases the Site to the Ithaca Farmers Market Cooperative, Inc. to operate a producer-to-consumer market of locally grown and crafted goods, and WHEREAS, the Leased Property contains a large market pavilion, a dock, and over 300 parking spaces developed and maintained by IFM, and WHEREAS, the Leased Property is authorized for (1) A producer-to-consumer market featuring local grown and crafted goods at least two days per week for at least six month of the year, (2) rental of the pavilion to others for occasional events, (3) a 50-vehicle park’n’ride operation, and (4) any other, additional use by IFM subject to the consent of the IURA and Mayor; however the Leased Property shall remain open at times the market is not in operation for use by the general public for passive, non-exclusive, low impact and low intensity recreational uses, and WHEREAS, IFM currently operates a farmers’ market on weekends, April through November and recently completed a project to upgrade the 225-space parking facility, and WHEREAS, the leases specify that neither the City, nor the IURA is under any obligation to maintain any internal roads and parking areas, including snow removal, and WHEREAS, the Economic Development Committee considered this matter at their November 18, 2025 meeting and recommended the following action; now, therefore, be it RESOLVED, that the Ithaca Urban Renewal Agency Ithaca hereby approves an amendment to the IURA sublease of the Steamboat Landing site to the Ithaca Farmers Market Cooperative, Inc., to authorize their requested use of up to 75 spaces in the existing 225-space parking lot by Cayuga Health to support parking needs at 401 Cayuga Park Lane facility and financially support the investment in the parking facility, and be it further RESOLVED, that the IURA Chairperson, subject to review by the IURA legal counsel, is hereby authorized to execute any and all documents to implement this resolution. Carried Unanimously: 5-0 IURA Minutes November 20, 2025 Page 3 of 9 B. HUD Entitlement Program: Time Extension Request — Shared Kitchen Ithaca, Inc. (Project #11, 2023 CDBG) Hull explained that Shared Kitchen Ithaca (SKI) met with the EDC on November 18, 2025. The kitchen was opened in May 2025, and SKI is still seeking to reach the required number of participants and requested an extension, which the EDC supported. Hull moved, seconded by Fleming: Contract Modification — Time Extension for 2023: Project #11, Shared Kitchen Ithaca (SKI) WHEREAS, the City of Ithaca 2023 Annual Action Plan (AAP) allocated $32,500 in Community Development Block Grant (CDBG) funding for Project #11 “Shared Kitchen Ithaca to provide discounts to ten (10) eligible low- and moderate-income microenterprise participants, and WHEREAS, the contract expiration date was September 30, 2025, and WHEREAS, SKI requests a time extension until June 30, 2026 due to delays in start-up of the new enterprise, and WHEREAS, SKI opened in May 2025, and WHEREAS, SKI is currently assisting 5 LMI IURA-eligible microenterprises and has over a dozen member businesses, and WHEREAS, SKI has vouchered for over $9,000, but anticipates full expenditure of CDBG funds will require approximately 12 months from initial start-up, and WHEREAS, any extension over 120 days must be reviewed and approved by the IURA Board, and WHEREAS, the URA Economic Development Committee reviewed this matter at their November 18, 2025 meeting and recommended the following action; now, therefore be it, RESOLVED, that the IURA hereby authorizes the Director of Community Development to modify the contract via a letter agreement to extend the expiration date of 2023 Project #11 “Shared Kitchen Ithaca” to June 30, 2026. Carried Unanimously: 5-0 C. Committee Chairperson Report None. IURA Minutes November 20, 2025 Page 4 of 9 VI. Neighborhood Investment Committee (NIC) A. HUD Entitlement Grants 1. Time Extension Request: Downtown Ithaca Children’s Center (DICC) ADA Compliant Doors (Project #10 CDBG 2024) Osterreich explained that DICC requested an extension while awaiting matching funds. Osterreich moved, seconded by Hull: Contract Modification – Time Extension for 2024 Project #10 “DICC ADA Upgrades & Modifications” WHEREAS, the City of Ithaca 2024 Annual Action Plan (AAP) allocated $20,620.00 in Community Development Block Grant (CDBG) funding for Project #10 “DICC ADA Upgrades & Modifications” (2024 Project #10) by Downtown Ithaca Children’s Center (DICC), and WHEREAS, the contract expiration date for 2024 Project #10 was September 30, 2025, and WHEREAS, in a letter to the IURA Director of Community Development Nels Bohn dated August 20, 2025, DICC requested an extension until March 31, 2026, due to a delay in receipt of the matching funds necessary to complete the project along with capacity issues arising from a major initiative DICC completed in September 2025, and WHEREAS, IURA Director of Community Development Nels Bohn authorized a 120-day time extension of 2024 Project #10 to January 28, 2025, and WHEREAS, any extension over 120 days must be reviewed and approved by the IURA Board, and WHEREAS, after review and discussion of the extension request at the November 13, 2025 meeting of the IURA Neighborhood Investment Committee (NIC), the IURA NIC recommended further extending 2024 Project #10’s contract to March 31, 2026, now, therefore be it, RESOLVED, that the IURA hereby authorizes the Director of Community Development to modify the contract to extend the expiration date of 2024 Project #10 “DICC ADA Upgrades & Modifications” to March 31, 2026. Carried Unanimously: 5-0 2. Contract Modification Request for Delivery Expenses: Ithaca Neighborhood Housing Services, Inc. (INHS) Homeowner Rehabilitation (Project #2, 2022 & 2023) Osterreich explained that INHS is seeking a modification in budgets because of the original, lower estimates. Bohn commented that the contract amount is not being expanded, but is allowing more delivery expenses to be charged as actual expenses exceed the amount initially estimated in their earlier application. IURA Minutes November 20, 2025 Page 5 of 9 Cantelmo moved, seconded by Osterreich: Contract Modification — Activity Delivery Costs: 2022 Project #2 & 2023 Project #2, “Homeowner Rehab” (INHS) WHEREAS, the City of Ithaca’s HUD Entitlement 2022 Annual Action Plan (AAP) allocated $136,123.31 in Community Development Block Grant (CDBG) funding and $12,517.50 in HOME Investment Partnerships Program (HOME) funding, for a total of $148,640.81 for Project #2 “Homeowner Rehab,” to Ithaca Neighborhood Housing Services, Inc. (INHS) to assist 6 low-to-moderate-income (LMI) homeowners, and WHEREAS, the City of Ithaca’s HUD Entitlement 2023 Annual Action Plan (AAP) allocated $146,250.00 in CDBG funds for Project #2 “Homeowner Rehab,” to Ithaca Neighborhood Housing Services, Inc. (INHS) to assist at least 6 LMI homeowners, and WHEREAS, the 2022 Project #2 contract allows the following eligible expenses: • Direct administrative costs (not to exceed 5% of the total HOME/CDBG contract awards) • Project-delivery costs (not to exceed 13% of the total HOME/CDBG contract awards), but also limits total delivery and administrative costs to $7,432, and WHEREAS, the 2023 Project #2 contract allows the following eligible expenses: • Construction, fees, inspections, contract mgmt., administration, & program delivery costs, but also limits total delivery and administrative costs to $9,750, and WHEREAS, in a letter to the IURA Director of Community Development Nels Bohn, dated October 30, 2025, INHS requested to modify the program delivery budgets of both contracts to revise low original estimates to reflect the actual costs of these activities, and WHEREAS, the U.S. Department of Housing and Urban Development (HUD), in Community Planning & Development (CPD) Notice 2023-07 (“the Notice”) provides guidance on the allocation of staff costs and the terminology used for different categories of staff costs associated with delivering assistance through projects, and WHEREAS, HUD CPD Notice 2023-07 specifies the following activities as eligible for reimbursement as Activity Delivery Costs for housing rehabilitation projects: a. Marketing grant activities. b. Services verifying client eligibility, applicant in-take and processing. c. Providing education or counseling to beneficiaries. d. Preparation of site-specific environmental review and environmental assessment such as New York State Historic Preservation Office (SHPO) determinations, well testing or phase 1 archaeology. e. Development of construction specifications bid preparation and contracting. f. Compiling cost data on individual housing units receiving CDBG assistance. g. Construction monitoring and on-site monitoring. h. Payment processing. i. Filing fees and related legal expenses. j. Engineering and/or architectural fees monitoring. IURA Minutes November 20, 2025 Page 6 of 9 k. Client/contractor troubleshooting. l. Any other professional services required to deliver the program. WHEREAS, the New York State (NYS) CDBG Program’s Grant Administration Manual allows up to 5% of the award for Activity Delivery Costs not associated with a specific homeowner rehabilitation project (termed “direct administration cost” by NYS) plus 13% of the award for activity delivery costs associated with a specific homeowner rehabilitation project, and WHEREAS, after review and discussion of the budget amendment contract modification request at the November 13, 2025 meeting of the IURA Neighborhood Investment Committee (NIC), NIC recommended modifying the 2022 and 2023 Project #2 “Homeowner Rehab” contracts to allow reimbursement for Activity Delivery Costs of up to 18% of the total awards for these projects and to reflect HUD terminology (“Activity Delivery Costs”), now, therefore be it, RESOLVED, that the IURA hereby authorizes the Director of Community Development to modify the funding contracts by letter agreement for 2022 and 2023 Project #2, “Homeowner Rehab,” to increase eligible Activity Delivery Costs to 18% of the total contracted amounts and revise language to reflect HUD terminology, and be it further RESOLVED, that the maximum amount of eligible Activity Delivery Costs for reimbursement are now the following amounts listed in the “project delivery” lines in the revised budgets submitted by INHS on 10/30/25: • 2022, Project #2, Homeowner Rehabilitation: $22,262.38, and • 2023, Project #2, Homeowner Rehabilitation: $26,325.00. Carried Unanimously: 5-0 3. Program Amendments to Meet CDBG Timeliness Osterreich explained that, because the IURA has adopted a Timeliness Work Out Plan (Work Out Plan) to ensure the timely spenddown of CDBG funds and because several project sponsors have declined to receive funds, reprogramming those funds is needed to increase the likelihood that they will be disbursed by the deadline. Discussion ensued, reviewing the five proposed Alternative Projects listed on “Chart 2.” Cantelmo moved, seconded by Fleming: Program Amendments to Meet CDBG Timeliness Requirement WHEREAS, on July 25, 2025, the IURA adopted a Community Development Block Grant (CDBG) Timeliness Work Out Plan (Work Out Plan) to ensure City of Ithaca CDBG funds are expended to comply with HUD regulations, and WHEREAS, a grantee is considered in compliance with the CDBG timeliness requirement if, 60 days prior to the end of the program year on June 1, the balance in the grantee’s line of credit, plus the balance of IURA Minutes November 20, 2025 Page 7 of 9 program income on hand including any revolving loan fund, is not more than 1.5 times the most recent CDBG grant, and WHEREAS, the Work Out Plan commits the IURA to evaluate in November if the IURA is on-target to meet the CDBG timeliness requirement and identify alternative CDBG projects as appropriate to meet the CDBG timeliness requirement, and WHEREAS, the CDBG timeliness expenditure ratio as of October 31, 2025 was 2.4, approximately $740,000 short to meet the upcoming June 1.5 CDBG timeliness ratio, and WHEREAS, the revised $230,000 Cecil A. Malone Sidewalk CDBG project is substantially complete with IURA vouchering in process, thereby effectively reducing the amount of CDBG funds necessary to be expended by June 1st to $510,000, and WHEREAS, the IURA is not on-target to meet the CDBG timeliness test in 2026 unless CDBG funds are reprogrammed, and WHEREAS, several CDBG projects either (1) do not project full disbursement of CDBG funds prior to expiration of their funding agreement, (2) declined 2025 funding due to internal and external conditions, or (3) are projecting a delay in implementation indicating they are better suited for future funding rounds, and WHEREAS, IURA staff project the following CDBG funding amounts are available for reprogramming in the following categories: $30,000 Public Services $205,400 Housing, Public Facilities, Economic Development $235,400 Total, and WHEREAS, a reallocation of more than $25,000 of CDBG funds to a specific project constitutes a substantial amendment to the Action Plan requiring a public hearing, a 30-day public comment period, Common Council and HUD approval, and WHEREAS, reprogramming funding in the Public Services category to multiple projects is anticipated not to trigger the threshold for a substantial amendment therefore the IURA will address program amendments within the Public Service category in a separate resolution, and WHEREAS, staff has initiated consultation with past and current grantees and City departments to identify potential eligible and implementable non-public service CDBG projects that can expend funds in a timely manner, and WHEREAS, at its November 13, 2025 meeting, the IURA Neighborhood Investment Committee preliminarily reviewed this matter and identified top-ranked alternative CDBG projects for funding; now, therefore, be it IURA Minutes November 20, 2025 Page 8 of 9 RESOLVED, that the IURA hereby recommends Common Council approve substantial amendments to the 2023, 2024 and 2025 HUD Action Plans to address CDBG timeliness requirements as follows: SUBTRACT: $35,000 2023, Project #2, Homeowner Rehabilitation, INHS $32,500 2024, Project #8, Work Preserve: Job Placements, Historic Ithaca, Inc. $67,500 2025, Project #8, Work Preserve: Job Placements, Historic Ithaca, Inc. $70,400 2025, Project #9, Southside Community Center Upgrades (Resiliency Hub), SSCC, Inc. $205,400 ADD: $70,400 Southside Community Center Electrical Upgrades & Fire Alarm System (sponsor: City of Ithaca) $50,000 2022, Project #1, 215 Cleveland Avenue For-Sale Affordable Home Funding Shortfall (sponsor: Ithaca Neighborhood Housing Services) $85,000 Select one of the following new projects: • Cass Park ADA Public Restroom & Pavilion Funding Shortfall (sponsor: City of Ithaca), or • Homeless Services Facility Enhancement — Transitional Shelters (sponsor: City of Ithaca); and be it further RESOLVED, that upon Common Council approval of the above-referenced program amendment, the Director of Community Development for the IURA is authorized to issue a funding commitment letter in accordance with this resolution. Carried Unanimously: 5-0 B. Committee Vice-Chairperson Report None. VIII. New/Other/Old Business a. Review of IURA Grant Summary: October 2025 Bohn reviewed the Grants Summary, explaining that the left-hand “On Schedule” column calls out any projects (with a ) that are declining funding or not progressing on schedule and may need attention. All loan payments are current. All lease payments are current. B. REPORTS: IURA Chair/Mayor, Common Council Liaison, & Staff IURA Chair/Mayor’s Report Cantelmo reported that the DRI Walking Tour is scheduled for December 1st, which is the last step in the application process. Common Council Liaison Report Nguyen mentioned a report on massive changes to HUD’s continuum-of-care funding. IURA Minutes November 20, 2025 Page 9 of 9 Staff Report Bohn reported that the vast majority of local continuum of care has used over 90% of HUD’s funding to support the operating costs of permanent supportive housing projects in the community. The new framework for the awards will limit public supportive housing funding to no more than 30% of the grant. Mendizabal reported that the application process will be moved from December to begin in January 2026. VIII. Adjournment The meeting was adjourned by consensus at 10:08 A.M. — END — Minutes prepared by S. Dean, edited by C. Pyott/N. Bohn.