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HomeMy WebLinkAboutMN-IURA-2025-07-25 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 9:00 A.M., Friday, July 25th, 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: (not present) IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual] City Staff: None. Guests: Monika Roth & Jan Norman [virtual], Ithaca Farmers Market I. Call to Order Cantelmo called the meeting to order at 8:58 A.M. II. Agenda Additions/Deletions None. III. Public Comments None. IV. Review of Meeting Minutes: May 23, 2025 Hull moved, seconded by Fleming, to approve the meeting minutes with no modifications. Carried Unanimously: 4-0 V. Neighborhood Investment Committee (NIC) A. Amendments to HOME-ARP Allocation Plan & 2021 Action Plan to Correct HUD Administrative Error in HOME-ARP Funding Allocation Graham explained that, due to a HUD error, the HOME-ARP Funding Allocation increased from $1.21 million to $1.213 million. Approved: 9/4/25 IURA Minutes July 25, 2025 Page 2 of 8 Mendizabal commented that the increase requires a minor amendment to the action plan and that the funds are being directed to Supportive Services and Administration activities. (Osterreich arrived at 9:01 a.m.) Hull moved, seconded by Fleming: Amendment to City of Ithaca HOME-ARP Allocation Plan WHEREAS, on March 23, 2023, the IURA adopted the City of Ithaca’s HOME Investment Partnerships Program (HOME) American Rescue Plan (HOME-ARP) Allocation Plan (Allocation Plan), a framework identifying community needs, setting preferences and priorities for Qualifying Populations (QPs), and designating a total of $1,211,929.00 to Supportive Services, Capacity Building, and Administration activities, and WHEREAS, as required by HUD, the Allocation Plan was adopted as a Substantial Amendment to the 2021 Annual Action Plan (AAP), and WHEREAS, on May 30, 2025, in communication with the City’s Representative from the HUD Region II Field Office in Buffalo, NY, it was requested that the City’s HOME-ARP Allocation Plan be amended to correct a HUD allocation error, and WHEREAS, correction of the HUD error will increase the HOME-ARP award to the City of Ithaca by $1,416.00, and WHEREAS, the HOME-ARP allocation Plan will be amended to allocate 85% of the funding increase to the Supportive Services activity and 15% of the funding increase to the IURA Administrative activity, and WHEREAS, in accordance with the City/IURA Citizen Participation Plan’s (CPP), because the discrepancy is below $25,000.00 and the Allocation Plan’s activities remain the same, correction of this allocation error requires a Minor Amendment, rather than a Substantial one, and therefore can be approved by the IURA without any public hearing, now, therefore, be it RESOLVED, the IURA hereby approves the Minor Amendment to the 2021 HOME-ARP Allocation Plan Action Plan to increase the HOME-ARP allocation to Supportive Services, Capacity Building, and Administrative activities from $1,211,929.00 to the corrected allocation amount of $1,213,345.00, and be it further RESOLVED, the IURA further approves a Minor Amendment acknowledging this change to the 2021 Annual Action Plan. Carried: 4-0 Abstention: Osterreich IURA Minutes July 25, 2025 Page 3 of 8 B. 2025 Action Plan: Community-Based Development Organization (CBDO) Designations Graham explained that the primary advantage of an agency having the designation is an exemption from the 15% funding cap that would otherwise apply to public service grant recipients. Staff has determined that Historic Ithaca and GIAC, Inc. meet the requirements to be redesignated as a Community-Based Development Organization. 1. Historic Ithaca Graham moved, seconded by Fleming: 2025 IURA Designation of Historic Ithaca, Inc. (HI) As Community-Based Development Organization (CBDO) WHEREAS, the Board of Historic Ithaca, Inc. (HI) seeks designation by the Ithaca Urban Renewal Agency (IURA) as a Community-Based Development Organization (CBDO), and WHEREAS, the City of Ithaca has designated the IURA to administer the City’s HUD Entitlement Program that oversees Community Development Block Grant funds awarded to the City, and WHEREAS, an eligible category of CDBG activities is a “Special Activity by CBDO”, that offers certain advantages, such as exemption from the 15% expenditure cap otherwise applicable to public service activities, authorization to carry out new housing construction (normally prohibited with CDBG funds), and discretion to allow income generated by a CDBG-funded activity to not be considered CDBG program income, and WHEREAS, the following four tests established at CFR Title 24 §570.204 must be met to qualify under a category of “Special Activity by CBDOs”: 1. The entity qualifies as a CBDO, including the 51% board membership test; 2. The CBDO will undertake an eligible project; 3. That the CBDO will carry out the funded activity directly or with an entity other than the grantee; 4. That the CBDO will not carry out a prohibited activity, and WHEREAS, a CBDO must maintain at least 51% of its governing body’s membership to be made up of any combination of the following: ● Low- and moderate income residents of its area of operation ● Owners or senior officers of private establishments and other institutions located in its area of operation ● Representatives of low- and moderate-income neighborhood organizations located in its area of operation, and WHEREAS, a CBDO must have as its primary purpose the improvement of the physical, economic, or social environment of its geographic area of operation, with a particular emphasis on the needs of low- and moderate-income persons, and IURA Minutes July 25, 2025 Page 4 of 8 WHEREAS, the project undertaken by the CBDO must qualify as one or more of the following project types: ● neighborhood revitalization; ● community economic development; ● energy conservation project; and WHEREAS, IURA evaluated HI’s CBDO application and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that Historic Ithaca meets the requirements for eligibility as a CBDO, and that the Historic Ithaca Job Skills Training project qualifies as an eligible CBDO activity, and be it further RESOLVED, that the IURA hereby designates Historic Ithaca as a Community-Based Development Organization (CBDO) and “Historic Ithaca Work Preserve Job Placements” as eligible for CDBG funding under the category of “Special Activities by CBDOs”. Carried Unanimously: 5-0 2. GIAC, Inc. Graham moved, seconded by Fleming: 2025 IURA Designation of Greater Ithaca Activities Center, Inc. (GIAC, Inc.) As Community-Based Development Organization (CBDO) WHEREAS, the Board of Greater Ithaca Activities Center, Inc. (GIAC, Inc.) seeks designation by the Ithaca Urban Renewal Agency (IURA) as a Community-Based Development Organization (CBDO), and WHEREAS, the City of Ithaca has designated the IURA to administer the City’s HUD Entitlement Program that oversees Community Development Block Grant funds awarded to the City, and WHEREAS, an eligible category of CDBG activities is a “Special Activity by CBDO”, that offers certain advantages, such as exemption from the 15% expenditure cap otherwise applicable to public service activities, authorization to carry out new housing construction (normally prohibited with CDBG funds), and discretion to allow income generated by a CDBG-funded activity to not be considered CDBG program income, and WHEREAS, the following four tests established at CFR Title 24 §570.204 must be met to qualify under a category of “Special Activity by CBDOs”: 1. The entity qualifies as a CBDO, including the 51% board membership test; 2. The CBDO will undertake an eligible project; 3. That the CBDO will carry out the funded activity directly or with an entity other than the grantee; IURA Minutes July 25, 2025 Page 5 of 8 4. That the CBDO will not carry out a prohibited activity, and WHEREAS, a CBDO must maintain at least 51% of its governing body’s membership to be made up of any combination of the following: ● Low- and moderate income residents of its area of operation ● Owners or senior officers of private establishments and other institutions located in its area of operation ● Representatives of low- and moderate-income neighborhood organizations located in its area of operation, and WHEREAS, a CBDO must have as its primary purpose the improvement of the physical, economic, or social environment of its geographic area of operation, with a particular emphasis on the needs of low- and moderate-income persons, and WHEREAS, the project undertaken by the CBDO must qualify as one or more of the following project types: ● neighborhood revitalization; ● community economic development; ● energy conservation project; and WHEREAS, IURA evaluated GIAC, Inc.’s CBDO application and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that Greater Ithaca Activities Center, Inc. meets the requirements for eligibility as a CBDO, and that the GIAC, Inc.’s “Hospitality Employment Training Program” qualifies as an eligible CBDO activity, and be it further RESOLVED, that the IURA hereby designates Greater Ithaca Activities Center, Inc. as a Community-Based Development Organization (CBDO) and its “Hospitality Employment Training Program (HETP) Job Placements” as eligible for CDBG funding under the category of “Special Activities by CBDOs”. Carried Unanimously: 5-0 C. Committee Chairperson Report None. VII. New/Other/Old Business A. Request from Ithaca Farmers Market Cooperative, Inc. for Rent Deferment Cantelmo explained that Ithaca Farmers Market Cooperative, Inc. requested a deferment of rent due for Steamboat Landing until December 1, 2025, at which time all deferred rent will be due and payable. Roth discussed project budget constraints and explained that project funds did not cover all expenses, and obtaining state reimbursement is a six-month process. IURA Minutes July 25, 2025 Page 6 of 8 Cantelmo asked what the projected net impact of a rent deferment is on the Ithaca Urban Renewal Agency. Bohn responded that the difference is a modest amount of bank interest for four months. (meeting temporarily paused from 9:16 a.m.-9:23 a.m.) Cantelmo moved, seconded by Fleming: Ithaca Farmers Market 2025 Rent Deferment WHEREAS, on July 15, 2025, the IURA received a request from the Ithaca Farmers Market Cooperative, Inc. (IFM) for deferment of 2025 rent until December 1st due on the Steamboat Landing leased premises, and WHEREAS, IFM is experiencing a short-term financial hardship as it awaits reimbursement from New York State of expenses paid out for the parking lot improvement project at Steamboat Landing, and WHEREAS, the lease premises is owned by the City of Ithaca, leased to the IURA, and subleased to IFM, and WHEREAS, rents collected from IFM by the IURA are paid over to the City of Ithaca general fund, and WHEREAS, IFM’s producer-to-consumer market at Steamboat Landing is a top tourism draw of the City, offers healthy and fresh local produce and food, acts as an incubator for new small businesses, and generates significant sales tax revenue, and WHEREAS, 2025 annual rent to IFM is $37,694 due in four payments of $9,423.50 due in June, August, October, and December, and WHEREAS, in recognition of a short-term financial hardship, IFM requests rents due in June, August and October to be deferred to December 1, 2025, now, therefore, be it RESOLVED, that the IURA hereby approves the request by the Ithaca Farmers Market Cooperative, Inc. to defer all 2025 rent due on the Steamboat Landing site until December 1, 2025 when all deferred rent will be due and payable, and be it further RESOLVED, that the Director of Community Development is authorized to implement this resolution through a letter agreement amending the lease to implement this resolution. Carried Unanimously: 5-0 B. 2025 Action Plan: CDBG Timeliness Workout Plan Cantelmo explained that staff would be directed to submit a workout plan to HUD. IURA Minutes July 25, 2025 Page 7 of 8 Bohn explained that the IURA was $70,000 away from meeting the HUD expenditure requirement this year, and HUD gave a deadline of 12 months to return to compliance. He recommended an increased focus on meeting requirements. Cantelmo moved, seconded by Hull: CDBG Timeliness Work Out Plan WHEREAS, on June 5, 2025, the IURA received notice from the U.S. Department of Housing and Urban Development (HUD) that the City of Ithaca Community Development Block Grant (CDBG) program was in noncompliance with CDBG timely expenditure requirements, and WHEREAS, a grantee is considered in compliance if, 60 days prior to the end of the program year, the balance in the grantee’s line of credit, plus the balance of program income on hand including any revolving loan fund, is not more than 1.5 times the most recent CDBG grant, and WHEREAS, the City’s program year begins on August 1, and WHEREAS, as of June 2, 2025, the City of Ithaca had an adjusted line of credit balance of 1.61 times its annual grant which translates to a $70,488 shortfall in CDBG expenditures, and WHEREAS, HUD requires submission of a workout plan describing steps that will be taken to ensure the adjusted line of credit will be no greater than 1.5 on June 1, 2026, and WHEREAS, a 2024 HUD CDBG timeliness memo recognized extenuating circumstances caused by the pandemic and after-effects of the pandemic, and established a multi-year timeline to comply with the timeliness standard before future grant awards would be reduced, though it appears that this memo has been superseded to return to the prior HUD timeliness policy, and WHEREAS, June 5, 2025 HUD correspondence indicates that if a grantee fails the timely expenditure requirement for a second consecutive time, the City’s future grant may be reduced by the dollar amount by which Ithaca exceeds the 1.5 timely expenditure standard, and WHEREAS, IURA staff has developed a draft CDBG Timeliness Work Out Plan that includes identification of potential back-up CDBG projects and a mid-year assessment for possible reprogramming to ensure compliance with CDBG expenditure compliance; now, therefore, be it RESOLVED, that the IURA hereby approves the draft CDBG Timeliness Work Out Plan, and directs the Director of Community Development to submit the plan to HUD. Carried Unanimously: 5-0 IURA Minutes July 25, 2025 Page 8 of 8 C. Review of IURA Grant Summary: May 2025 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. All lease payments are current. D. REPORTS: IURA Chair, Mayor, Common Council Liaison, & Staff Mayor’s Report Cantelmo reported that the Downtown Revitalization Initiative Grant is moving forward. IURA Chairperson None. Common Council Liaison Report None. Staff Report Bohn reported that the HUD regional office approved the 2025 Action Plan. Closing on the sale of the East Hill Fire Station property at 309 College Avenue was completed. He shared that the Transportation, Housing, and Urban Development Subcommittee proposal for the 2026 budget, if passed, would result in the Community Development Block Grant being level-funded and no additional HOME Funding. He reported that the $2.6 million was contributed by developers to the Community Housing Development Fund for expanding affordable housing funding, and the fund provided $7.1 million for a variety of projects. VIII. Adjournment The meeting was adjourned by consensus at 10:07 A.M. — END — Minutes prepared by S. Dean, edited by C. Pyott/N. Bohn.