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HomeMy WebLinkAboutMN-IURAED-2025-04-08 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY Economic Development Committee (EDC) 3:30 P.M., Tuesday, April 8th, 2025 Common Council Chambers, 108 E. Green St., Ithaca, NY 14850 Present: Robert G. Cantelmo (Mayor), Chair; Derek Adams; Siobhan Hull; Chuck Schwerin; Donna Fleming Excused: Leslie Ackerman, Vice-Chair Vacancies: 0 Staff: Nels Bohn; Charles Pyott [virtual] Guests: None. I. Call to Order Chair Cantelmo called the meeting to order at 3:33 P.M. II. Agenda Additions/Deletions None. III. Public Comments (3-minute max. per person) Thomas Knipe, Deputy Director for Economic Development, remarked that the land at the southerly end of Cherry Street to be sold is a prime location for light manufacturing businesses. He recommended a marketing approach and consideration of the site in terms of the opportunity to grow the City’s tax base, grow manufacturing jobs, and select the highest and best use for the property. IV. Review of Meeting Minutes: February 11th, 2025 & March 11th, 2025 Fleming moved, seconded by Adams, to approve the minutes with no modifications. Carried Unanimously: 5-0 V. New Business A. Cherry Street Extension Urban Renewal Project 1. Authorize Disposition Process for Land at Southerly End of Cherry Street Bohn explained that he proposed two options for preferred use, recommending one or the other. Cantelmo remarked that of the two options for Preferred Use to be incorporated in the RFEI, Option 1 aligns with the mission statement of the IURA. Schwerin agreed. Approved/Adopted: 5/13/25 EDC Meeting Minutes April 8, 2025 Page 2 of 5 Fleming recommended including “Preferred Use (Option 2 )” to attract more businesses to the area. Hull mentioned that if “Preferred Use (Option 2)” were selected, she would like it modified to include social characteristics. Bohn explained that the Cherry Street District zone does not allow residential use south of Cecil Malone Drive. However, the property is in a planned unit overlay zone, and a use not permitted under the zoning could be proposed for review and approval. Cantelmo moved, Hull seconded (Fleming opposed) to strike “Preferred Use (Option 2)” from the guidelines to be incorporated in the RFEI. Carried: 4-1 Opposed (Fleming) Cantelmo moved, seconded by Fleming (as amended): 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 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 EDC Meeting Minutes April 8, 2025 Page 3 of 5 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 (FMV) 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 (Option 1): 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 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 EDC Meeting Minutes April 8, 2025 Page 4 of 5 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: 5-0 2. Procurement of Professional Services Cantelmo moved, seconded by Fleming: Procurement of Professional Services 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, 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 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 EDC Meeting Minutes April 8, 2025 Page 5 of 5 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: 5-0 VI. Old/Other Business A. IURA-Adopted Recommended 2025 HUD Entitlement Action Plan — Review Bohn reported that the recommendations by this Committee were brought to the Neighborhood Investment Committee, which made modifications resulting in full funding of all the job training programs as requested. B. IURA Grant Disbursement, Loan, & Lease Receivable Reports: February 2025 Bohn reported that all loan payments were current, and the Southside Community Center (RIBs) lease payment was delinquent by one month. Grant recipients received awards for the upcoming year and were encouraged to spend as early as possible because of HUD spend-down requirements. He noted that several CDBG projects, mainly Ithaca Neighborhood Housing Services, Inc. (INHS) homeowner rehab programs, are developing slower. C. Staff Report Bohn reported that SouthWorks is working to address lead paint and asbestos abatement, a barrier to leasing space and more expensive than expected. VII. Adjournment The meeting was adjourned by consensus at 3:59 P.M. — END — Minutes prepared by S. Dean, edited by C. Pyott/N. Bohn.