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HomeMy WebLinkAboutMN-IURAGOV-2025-04-18108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY GOVERNANCE COMMITTEE (GC) 9:00 A.M., Friday, April 18, 2025 Common Council Chambers, Third Floor 108 E. Green St. (City Hall) │ Ithaca, NY 14850 Present: Kathy Schlather, Chairperson; Susan Cummings; George McGonigal; Ellen McCollister Excused: Donna Fleming, Vice-Chairperson Vacancy: 1 Staff: Nels Bohn; Charles Pyott [virtual] Guests: None I. Call to Order Chairperson Schlather called the meeting to order at 9:04 A.M. II. Agenda Additions/Deletions Cummings suggested adding an agenda item to discuss zoning flexibility for new housing construction. No objections were raised. III. Verbal/Written Public Comments None. IV. Review of Meeting Minutes: January 17th, 2025 McCollister moved, seconded by Cummings, to approve the meeting minutes, with one minor modification. Carried Unanimously: 4-0 Approved/Adopted: 7/25/25 Governance Committee April 18, 2025 Page 2 of 5 2 V. New Business A. 2024 IURA Financial Audit Bohn explained that the financial report from Insero & Co. CPAs, LLP (Insero) is a clean financial audit with no findings or recommendations, and that the report was submitted to comply with the New York Public Authorities Law requirement. There was no significant deviation between 2023 and 2024, and 2024 ended in a strong position with a fund balance of approximately $1.8 million. The report does not consider any fund restrictions or the use of a modified accrual method of accounting. IURA needs to provide a management discussion of factors influencing the agency's future. The factors include inflation and a possible operating deficiency unless additional revenue comes in. He mentioned broad support from the City to keep the agency solvent. McCollister moved, seconded by McGonigal: Approval of 2024 IURA Financial Audit Report WHEREAS, the Ithaca Urban Renewal Agency (IURA) derives the majority of its finances from grants awarded to the City of Ithaca, and WHEREAS, for financial reporting purposes, the IURA is a blended component unit of the City of Ithaca whose financial activity is reported in the Special Grant Fund, a governmental fund of the City of Ithaca financial statements, and WHEREAS, the IURA contracts separately from the City to have its finances audited within 90 days of the end of its fiscal year to comply with the Public Authorities Accountability Act, and WHEREAS, the IURA received an audited 2024 IURA financial report on March 18, 2025, and WHEREAS, at its April 18, 2025 meeting, the IURA Governance Committee reviewed the financial report and attached correspondence; now, therefore, be it RESOLVED, the IURA hereby approves the Financial Report of the Ithaca Urban Renewal Agency for the period January 1, 2024 through December 31, 2024, prepared by the accounting firm of Insero & Co., CPAs, LLP. Carried Unanimously: 4-0 2. Review of Investment Guidelines Bohn explained that an annual review and submission of guidelines is a requirement of the New York State Public Authorities Law. Funds exceeding $250,000 are invested in an insured financial institution. Cummings inquired about interest on funds. Bohn explained that any interest earned above $500 on federal funds must be returned to HUD. IURA retains interest earned only on local funds. Governance Committee April 18, 2025 Page 3 of 5 3 McCollister moved, seconded by Cummings: Approval of IURA Investment Guidelines WHEREAS, pursuant to the Public Authorities Accountability Act, as amended, the IURA is required on an annual basis to review its investment guidelines and report, and WHEREAS, the IURA originally adopted Investment Guidelines on March 25, 2011, and WHEREAS, the Director of Community Development prepared an annual 2024 IURA Investment Report, and WHEREAS, at their April 18, 2025 meeting, the IURA Governance Committee reviewed the IURA Investment Guidelines and the 2024 Investment Report; now, therefore, be it RESOLVED, that the IURA hereby reaffirms its approval of the IURA Investment Guidelines. Carried Unanimously: 4-0 3. 2023 Public Authorities Law (PAL) Reporting Bohn explained that New York State established the Public Authorities Law (PAL) to create transparency for all public state and local authorities, local development corporations, and industrial development agencies. The IURA is required to provide reports annually. The Annual Report includes the Real Property Inventory with the estimated value of the holdings. Reports for sales transactions are required to be submitted 90 days in advance of the action. McGonigal moved, seconded by Cummings: Approval of Reports Submitted to NYS Authorities Budget Office WHEREAS, pursuant to the Public Authorities Accountability Act, as amended, the IURA is required on an annual basis to submit reports to the New York State Authorities Budget Office (ABO), and WHEREAS, the IURA Director of Community Development is designated to certify accuracy of the reporting, and WHEREAS, the reporting is due to be submitted within 90 days of the end of the fiscal year, and WHEREAS, it is appropriate that IURA members exercise oversight over the staff reporting to the ABO, and WHEREAS, at its meeting of April 18, 2025, the IURA Governance Committee reviewed the reporting and recommends the following action; now, therefore, be it Governance Committee April 18, 2025 Page 4 of 5 4 RESOLVED, that the IURA hereby approves FY2024 IURA public authority reports submitted to the New York State Authorities Budget Office, including the following reports: • Budget report • Annual report • Procurement report • Investment report • Certified financial audit report Carried Unanimously: 4-0 VI. Old/Other Business A. Current Urban Renewal Projects – Status Report Bohn reviewed the 2024 Real Property Inventory, noting that of the total value of $5.8 million, the Inlet Island, Cherry Street, and Cayuga Street parking garage properties are the most valuable. Bohn explained that the request of Ithaca Child Care Center (IC3) to extend its lease, which was to end this year, was brought to the Common Council on April 17, 2025. The IURA redesignated IC3 as an eligible sponsor and structured, subject to a resolution passing in May, a proposed 10-year lease extension with an option to extend an additional 10-year extension at the discretion of the City, the IURA, and IC3. Bohn explained a proposed contract for sale of the 12-space parking lot at the corner of West State Street and South Geneva Street to Ithaca Neighborhood Housing Service, for fair market value of $370,000, to support a 56-unit affordable housing project aimed at seniors with a set-aside category for those with physical disabilities and including a ground floor childcare center. Final consideration and action by the Common Council is scheduled for May 7, 2025. Bohn indicated that the RFEI (Request for Expressions of Interest) for Cherry Street is being discussed. Cummings asked for an update on Inlet Island. Bohn responded that since IURA parted ways with the developer that had been selected, the Economic Development Committee considered what the next step should be and concluded that impediments to the development, which were completing the acquisition of the U.S. Coast Guard Auxiliary property and the cleanup of petroleum contamination on the half-acre site to the south of that site. B. Committee Structure, Charge, & Membership – Review Bohn explained that the documents provided were for review and that only the Board and Committee membership lists were updated as of April 1, 2025. C. Review of IURA Financials: February 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 all Loan Governance Committee April 18, 2025 Page 5 of 5 5 Payments are current, as of today, and all Lease Payments are current except Cayuga Green, whose payment is always brought current within five days, and Southside Community Center-RIBS, which owes one month’s rent for the former RIBS site on West Buffalo Street. D. Staff Report Bohn reported his involvement in working with the City on its Facility Master Plan related to a purchase option on the Bowl-a-Drome site intended for future public buildings and a sealed bid process for the fire station at 309 College Avenue. E. Zoning Flexibility for Housing Construction Cummings suggested that the City make its interpretation of zoning and the need for variances simpler and more accessible. Bohn commented that there has been an administrative change in zoning recently permitting minor modifications of area variances to be approved by staff up to a certain point. McCollister commented that she does not believe the IURA is the property agency to regulate zoning matters. VII. Adjournment The meeting was adjourned by consensus at 10:40 A.M. — END — Minutes prepared by S. Dean, edited by C. Pyott/N. Bohn.