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HomeMy WebLinkAboutMN-IURAGOV-2025-07-25108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY GOVERNANCE COMMITTEE (GC) 10:30 A.M., Friday, July 25th, 2025 Common Council Chambers, Third Floor 108 E. Green St. (City Hall) │ Ithaca, NY 14850 Present: Donna Fleming, Vice-Chairperson; Ellen McCollister; George McGonigal Excused: Susan Cummings; Kathy Schlather, Chairperson Vacancy: 1 Staff: Nels Bohn; Charles Pyott [virtual] Guests: None I. Call to Order Vice-Chairperson Fleming called the meeting to order at 10:29 A.M. II. Agenda Additions/Deletions None. III. Verbal/Written Public Comments None. IV. Review of Meeting Minutes: April 18th, 2025 Fleming moved, seconded by McCollister to approve the meeting minutes, with no modifications. Carried Unanimously: 3-0 V. New Business A. Contracting Services: 1st Amendment to Minute-Taking Agreement Bohn explained that in 2023, the IURA trial tested using an independent contractor through Express Employment Services for minute-taking and would like to continue minute-taking by an independent contractor so that staff can focus on prioritized work. An amendment of the contract to add $1,500 to extend services through February 2026, with the contract to be reviewed with all independent contractor agreements in January 2026 and converted to a 12-month contract. Approved/Adopted: 10/17/25 Governance Committee July 25, 2025 Page 2 of 5 2 Fleming moved, seconded by McCollister: 1st Amendment to Minute-Taking Services Agreement WHEREAS, in May 2023 the IURA authorized up to $5,000 to hire temporary staff support through Express Employment Professionals for temporary staff support for meeting management and minute-taking, and WHEREAS, IURA has utilized the service exclusively for minute-taking, and WHEREAS, IURA staff have been very satisfied with minute-taking services provided by Sarah R. Dean through Express Employment Professionals, and WHEREAS, IURA staff recommends the Agency contract for minute-taking services as an annual independent services contract with a March 1st anniversary date as is done for other independent contractor services, and WHEREAS, IURA staff projects the need to amend the existing contract to ensure sufficient funding to continue the service through to March 1, 2026, and WHEREAS, the current hourly rate for minute-taking services is $35.11, and WHEREAS, the 2025 IURA budget authorized up to $2,500 for minute-taking services, and WHEREAS, such minute-taking service is an eligible expense from CDBG and HOME administration funding, and WHEREAS, the IURA Governance Committee reviewed this matter at their July 25, 2025 meeting and recommended the following action; now, therefore, be it RESOLVED, the IURA Chairperson is authorized to execute a 1st amendment to the contract with Express Employment Professionals for up to $1,500 of additional minute-taking services, and be it further RESOLVED, staff is directed to annualize independent minute-taking services in alignment with other IURA independent contractor services that are reviewed by the IURA Governance Committee each January. Carried Unanimously: 3-0 B. City/IURA Collaboration Opportunities Bohn explained that the federal support in the past has been sufficient to cover planning/admin expenses. Still, funding has not increased in many years, inflation has continued to rise, and health care and salary expenses have also increased. The IURA staff has collaborated with the City on various activities. Some services have been reimbursed, but others have not and come out of IURA’s operating account. Unless Governance Committee July 25, 2025 Page 3 of 5 3 new revenue streams are identified, the discretionary fund will need to be used to cover operating costs. Urban renewal projects could produce significant resources, but are not consistent. The City does contract with independent contractors for a variety of services and could contract with the IURA for services. Without modifications, Bohn anticipates the budget will have an $80,000 deficit, and federal funding is uncertain. McCollister asked if the IURA has the option to not collaborate on certain City activities, and where there is overlap in economic development and capital projects, with the timing of the Director of Economic Development position. Bohn replied that in a 2012 agreement between the City and the IURA, the City provides the IURA with grant funds. In return, the IURA agrees to administer the funds in compliance with regulations, including disbursement to grantees and ensuring the programs are meeting requirements. The agreement, however, did not address compensation. He added that the IURA can direct what work staff can do. Fleming asked if the IURA is limited to work in the City of Ithaca. Bohn responded that the State of New York created the IURA as the City of Ithaca Urban Renewal Agency, and its powers of entering into contracts, applying for and disbursing grant funds, and land acquisition and sales do not extend beyond the boundaries of the City of Ithaca. Expanding collaboration services outside the City boundaries is not prohibited, but would not be part of the core urban renewal function. Fleming commented that discussions should take into account as many collaborative opportunities as possible, including with the Town of Ithaca and Tompkins County. Fleming moved, seconded by McGonigal: City/IURA Collaboration Opportunities WHEREAS, the IURA is experiencing a net operating deficit due to a steady erosion of federal HUD Entitlement grant funding support while facing annual inflationary increases in operating expenses, and WHEREAS, the President’s proposed FY26 budget eliminated funding for both the CDBG and HOME program, and WHEREAS, the U.S. House Appropriations Subcommittee on Transportation and Housing & Urban Development (THUD) completed its markup of the FY26 budget that level-funds the CDBG program but allocates no funding for the HOME program, and WHEREAS, IURA management reviewed these general fiscal trends in the FY24 IURA audit and concluded that maintaining current IURA capacity and closing the operating deficit will rely on increasing non-federal revenues derived from urban renewal projects involving the disposition of real property and reimbursed fees for services rendered to the City, and Governance Committee July 25, 2025 Page 4 of 5 4 WHEREAS, the City and IURA entered into a professional services agreement (City-IURA Agreement) for the IURA to administer the City’s HUD Entitlement grant program and assist in other activities that advance the IURA mission, and WHEREAS, section 12 of the City IURA Agreement states: Assistance with Other Activities 12.1 From time to time, IURA staff may have availability to assist the City with planning or other activities that are directly related to, or would support, the mission of the IURA to “improve the social, physical, and economic characteristics of the City of Ithaca by expanding access to quality affordable housing, strengthening neighborhoods and the local economy, and supporting other community development activities.” Toward that end, the IURA may offer, and the City may accept, by mutual agreement, IURA staff assistance with such activities. IURA staff will make best efforts to complete agreed upon tasks in a timely manner; however, activities related to administration of CPD funds will take priority and any consequent delay in completion of other activities will not be cause for termination of this agreement. WHEREAS, due to close alignment of City initiatives with the IURA mission and IURA skill sets, IURA staff routinely provides staff assistance on various City initiatives, and WHEREAS, IURA assistance on a variety of City-related projects is often, but not always, reimbursed for staff expenses incurred as shown in the table below: Activity/Project IURA Reimbursed Past/Ongoing City policy development regarding encampments on City property no past City implementation of encampment policy – development of navigation center and temporary camping at SW to support response protocol no ongoing City Facilities Master Planning – public safety facility acquisition no ongoing City Facilities Master Planning - General no ? Disposition of 309 College Avenue (East Hill Fire Station) yes past Disposition of 209 W. State Street yes ongoing Cayuga Garage fiscal management yes ongoing Green Garage Disposition and Redevelopment yes past Restore NY grant applications and administration (multiple rounds) no ongoing Cayuga Garage management yes ongoing Community Housing Development Fund – City support no ongoing Conference Center - Financial Oversight Committee no ongoing Continuum of Care – City representative and Co-Chair no ongoing Staff working group on 300 block of W. State Street – Mayor request no past CIITAP – IDA housing and construction labor committees no ongoing Inlet Island predevelopment Only upon sale ongoing Cherry Street urban renewal project predevelopment Only upon sale ongoing And, WHEREAS, the IURA incurs predevelopment expenses associated with urban renewal projects at Inlet Island and Cherry Street extension sites that are only reimbursed upon sale of property, and Governance Committee July 25, 2025 Page 5 of 5 5 WHEREAS, the IURA Governance Committee discussed this matter at their July 25, 2025 meeting and recommended the following actions; now, therefore, be it RESOLVED, staff is directed to identify potential opportunities for City/IURA collaboration that provide IURA financial support to address the current and projected IURA operating deficit, and RESOLVED, that the IURA Chair is authorized to enter into agreements with the City to provide IURA staff assistance on City projects/activities that align with the IURA mission statement that include reimbursement of IURA staff expenses or predevelopment expenses. Carried Unanimously: 3-0 VI. Other Business A. IURA CDBG Timeliness Work Out Plan: Report Bohn reported that IURA received a notice of Noncompliance with Timely Expenditures Requirements for the CDBG Program from HUD. If IURA is not in compliance the following year, the future grant will be reduced. He explained the projects that were not spending as quickly as hoped and the fact that the Economic Development loan fund has a balance that may be more than needed. He suggested that if a loan application does not come in soon that the IURA consider reprogramming a portion of the funds to other activities. The proposed Timeliness Work Out Plan includes a mid-year analysis. B. Review of IURA Financials: May 2025 Bohn walked through the Grants Summary and explained that the left-hand “On Schedule” column calls out any projects that are not on schedule and may need attention. The vast majority of projects have been progressing well in terms of expenditures and project completion. Bohn reported that all Loan Payments and Lease Payments are current as of today. C. Staff Report None. VII. Adjournment The meeting was adjourned by consensus at 11:18 A.M. — END — Minutes prepared by S. Dean, edited by C. Pyott/N. Bohn.