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HomeMy WebLinkAboutMN-IURA-2025-04-25 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 9:00 A.M., Friday, April 25th, 2025 Common Council Chambers, Third Floor (City Hall) 108 E. Green St., Ithaca, NY 14850 Members: Karl Graham, Vice-Chair; Shaianne Osterreich; Donna Fleming Excused: Robert G. Cantelmo (Mayor), Chair; Siobhan Hull Vacancies: 0 Common Council Liaison: Ducson Nguyen IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual] City Staff: Lisa Nicholas, Director of Planning & Development Guests: None. I. Call to Order Graham called the meeting to order at 9:18 A.M. II. Agenda Additions/Deletions None. III. Public Comments None. IV. Review of Meeting Minutes: March 28, 2025 Fleming moved, seconded by Osterreich, to approve the meeting minutes with no modifications. Carried Unanimously: 3-0 Approved: 5/23/25 IURA Minutes April 25, 2025 Page 2 of 9 V. Audit Committee A. Annual Election of Committee Chairperson Graham explained that the Committee recommended and elected Fleming to continue as Vice-Chairperson and Graham as Chairperson. Graham moved, seconded by Osterreich: 2025 IURA Election of Audit Committee Chairperson WHEREAS, the IURA By-laws provide that the committee membership shall elect its own committee Vice-Chairperson and nominate to the Agency a member to serve as Chairperson of the Audit Committee, and WHEREAS, officers of each committee serve a one-year term, but continue to hold office until their successor is selected or appointed, and WHEREAS, the current committee officers are: Chairperson: Karl Graham Vice-Chairperson: Donna Fleming, and WHEREAS, at their April 25, 2025 meeting, the IURA Audit Committee called for nominations for Vice- Chair and Chair of the IURA Audit Committee, and WHEREAS, the IURA Audit Committee elected Donna Fleming as Committee Vice-Chairperson and nominated Karl Graham as Committee Chairperson; now, therefore be it RESOLVED, that the IURA hereby elects Donna Fleming. Carried Unanimously: 3-0 B. Approval of Audited 2024 IURA Financial Report Graham explained that the audit was reviewed by the Governance Committee on April 18, 2025, and by the Audit Committee on April 25, 2025, and no issues were found. The Audit Committee recommended that the Board approve 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. Graham moved, seconded by Osterreich: 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 IURA Minutes April 25, 2025 Page 3 of 9 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 and recommended its approval, and WHEREAS, at its April 25, 2025 meeting, the IURA Audit Committee reviewed the financial report and attached correspondence and recommended the following action; 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: 3-0 C. Committee Chairperson Report None. VI. Governance Committee (GC) A. Review of Investment Guidelines Bohn explained that the Governance Committee reviewed the IURA Investment Guidelines at its April 18, 2025 meeting. Graham moved, seconded by Fleming: 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 IURA Minutes April 25, 2025 Page 4 of 9 RESOLVED, that the IURA hereby reaffirms its approval of the IURA Investment Guidelines. Carried Unanimously: 3-0 B. 2024 Public Authority Reporting Bohn explained that submission of the Financial Report of the Ithaca Urban Renewal Agency for the period January 1, 2024 through December 31, 2024, prepared by Insero & Co. CPAs LLP, is a key component of the reporting requirements. Graham noted a typographical error in 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. Bohn noted the same for correction in future reporting. Graham remarked that interns/volunteers are not covered under the IURA Whistleblower Policy included in the Public Authority Reporting. Bohn responded that the intent was to ensure protection of the person making a complaint. He recommended that the Governance Committee review the topic in the future. Graham moved, seconded by Fleming: 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 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: 3-0 IURA Minutes April 25, 2025 Page 5 of 9 VI. Economic Development Committee (EDC) A. Cherry Street Extension Urban Renewal Project 1. Authorize Disposition Process for Land at Southerly End of Cherry Street Bohn explained that two inquiries were recently received about acquiring the property. The Economic Development Committee recommended that Requests for Expression of Interest (RFEI) for all or part of the 6-acre site be issued. Graham remarked that he thought funds were authorized to build a road extension on the site. Bohn replied that if a previously intended sale to Emmy’s occurred, funds may have been available for the IURA to contribute some or all of the investment for the road extension. Graham asked if the testing done previously for the proposed sale to Emmy’s was sufficient for current use. Bohn explained that the prior testing was provided by Emmy’s specifically for its end use, and the analysis was as formal and detailed as desired. Graham asked if the two inquiries received were for the whole or part of the site. Bohn replied that both were for part of the site. Fleming noted that the property does not seem protected as a wetland. Bohn explained that the property is above the floodplain level and drops off to a wetland at the end, which area would be retained by the City and protected as a wetland. Fleming moved, seconded by Graham: Authorize Disposition Process for 6-acre Site at Southerly End of Cherry Street WHEREAS, the IURA owns an underutilized 6-acre site situated at the southerly end of Cherry Street encompassing tax parcels 100.-2-1.21, 100.-2-1.23, 100.-2-1.24, 100.-2-1.25, and 100.-2-1.26 (“Project Site”), and WHEREAS, prior proposed dispositions of the Project Site in 2018 and 2020 to sponsors of economic development proposals did not proceed to sale due to subsurface soil conditions in 2018, and due to the COVID-19 pandemic combined with uncertainty about the City policy regarding encampments on City property in 2020, and WHEREAS, in 2018 the six-acre Project Site was subdivided into a four-lot subdivision to be serviced by a future 400 linear foot public street extension, and WHEREAS, the Project Site is assessed at $1,049,000, and WHEREAS, the IURA has recently received unsolicited interest in purchasing one or more parcels at the Project Site, and IURA Minutes April 25, 2025 Page 6 of 9 WHEREAS, in 2023 the Common Council for the City of Ithaca adopted policy regarding encampments on City property that prohibits encampments at the Project Site, and WHEREAS, the extension of the Black Diamond Connector trail aligned along the Flood Control Channel and adjacent to the Project Site is scheduled to commence construction in 2025, and WHEREAS, the Project Site is located in the Cherry Street waterfront zoning district and is also included in the Planned Unit Overlay District, and WHEREAS, the Project Site is located within the Urban Renewal Project Boundary area, and WHEREAS, pursuant to section 507 of General Municipal Law, the IURA is authorized to dispose of real property to a designated Qualified and Eligible Sponsor (AKA preferred developer) of an urban renewal project at a negotiated sales price for a specific end use, following publication of a notice disclosing the essential terms of the proposed sale, conducting a public hearing, and approval by the Common Council, and WHEREAS, publicly soliciting competitive proposals through a Request For Expressions of Interest (RFEI) will allow the IURA to gauge developer interest in the Project Site and compare the public benefits resulting from alternative proposals, and WHEREAS, following review of RFEI responses, the IURA may: • Negotiate sale and development of the Site with one or more Respondents who meet qualifications as an Qualified and Eligible Sponsor for all or a portion of the Site • Issue a Request For Proposals (RFP) for sale and development of the Site, or portions of the site • Terminate the process and retain ownership of the Site, and WHEREAS, the IURA Economic Development Committee considered this matter at their April 8, 2025 meeting and recommends the following; now, therefore be it RESOLVED, that the IURA hereby authorizes staff to issue and advertise a Request For Expression of Interest (RFEI) to solicit proposals to purchase and develop some or all of the IURA-owned 6-acre site situated at the southerly end of Cherry Street, Ithaca, NY, and be it further RESOLVED, the RFEI shall incorporate the following guidelines: • Sales Price: fair market value is preferred • Eligible Use: any use permitted in the Cherry Street District (CSD) or by the Planned Unit Development process which requires the use to be in compliance with Plan Ithaca, the City’s comprehensive plan, and deliver at least one long-term significant community benefit • Preferred Use: projects that advance IURA’s mission to improve the social, physical and economic characteristics of the City by expanding access to quality affordable housing, strengthening neighborhoods and the local economy IURA Minutes April 25, 2025 Page 7 of 9 • IURA may designate one or more respondents as a qualified and eligible sponsor of an urban renewal project and enter into negotiations leading to negotiated sale of part, or all, of the Project Site without further public solicitation, and be it further RESOLVED, the following scoring system shall be used to evaluate RFEI responses: • 30% Economic benefits of the project • 30% Community benefits of the project • 40% Qualifications, experience and capacity of respondent to undertake and complete the project in a timely manner, and be it further RESOLVED, that the IURA requests the Economic Development Committee to review RFEI responses and recommend next steps in the disposition process that may include, but not be limited to, recommending designation of one or more Qualified and Eligible Sponsors to be eligible to purchase property to undertake an approved urban renewal project, and negotiating terms and conditions for a proposed disposition and development agreement(s). Carried Unanimously: 3-0 2. Procure Professional Services Bohn explained that an appraisal of the property has not been done in some time, and it would be valuable to have if an offer is received to be aware of the property's fair market value, even though the City is not bound to fair market value. Funds would be derived from the Industrial Park account. Graham asked if the Industrial Park account funds are restricted. Bohn explained that the account funds are only restricted by IURA policy. Osterreich moved, seconded by Graham: Procurement of Professional Services at the Southerly End of Cherry Street WHEREAS, the IURA owns an underutilized 6-acre site situated at the southerly end of Cherry Street encompassing tax parcels 100.-2-1.21, 100.-2-1.23, 100.-2-1.24, 100.-2-1.25, and 100.-2-1.26 (“Project Site”), and WHEREAS, the IURA has authorized issuance of a Request For Expressions of Interest (RFEI) for the Project Site, and WHEREAS, a prior proposed disposition of the Project Site in 2018 did not proceed to sale due to adverse subsurface conditions in 2018, and WHEREAS, in a joint County/City initiative to explore feasibility for siting facilities addressing homeless housing needs, subsurface geotechnical analysis was conducted in 2023 at various locations along Cherry Street, and IURA Minutes April 25, 2025 Page 8 of 9 WHEREAS, such geotechnical analysis will be useful for prospective purchasers of the Project Site to develop cost estimates for foundation systems at the Project Site, and WHEREAS, should the RFEI lead to designation of a qualified and eligible sponsor to purchase part, or all of the Project Site, an appraisal of the site’s fair market value will assist the IURA determine an equitable sales price, and WHEREAS, the IURA Economic Development Committee considered this matter at their April 8, 2025 meeting and recommends the following; now, therefore be it RESOLVED, that the IURA hereby authorizes staff to procure geotechnical analysis for the Project Site at a cost not to exceed $10,000, and be it further RESOLVED, that upon IURA designation of a qualified and eligible sponsor to potentially purchase part, or all, of the Project Site, the staff is hereby authorized to procure professional services to appraise the fair market value of the Project Site at a cost not to exceed $6,000, and be it further RESOLVED, that the above referenced professional services shall derive from the IURA Industrial Park account #1411044275, which had a balance of $144,141.63 as of March 31, 2025. Carried Unanimously: 3-0 VI. New/Other/Old Business A. Review of IURA Grant Summary: March 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 except Southside, which owes one month’s rent on the former RIBS parcel at 506 Buffalo Street. Communication is taking place, and he expressed confidence that the past due payment will be resolved. B. REPORTS: IURA Chair, Mayor, Common Council Liaison, & Staff Mayor’s Report None. IURA Chairperson None. Common Council Liaison Report None. Staff Report Bohn reported that HUD’s Annual Performance and Evaluation Report (CAPER) 2023 review identified no issues. IURA Minutes April 25, 2025 Page 9 of 9 Mendizabal noted that the draft narrative Annual Action Plan would be posted on April 25, 2025, for a 30- day comment period. Also, she indicated that appreciation was expressed from those organizations whose projects were recommended for funding, and that they appreciated the careful review and questions, which evidenced that the reviewers were very knowledgeable of their applications. VIII. Adjournment The meeting was adjourned by consensus at 9:55 A.M. — END — Minutes prepared by S. Sean, edited by C. Pyott/N. Bohn.