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HomeMy WebLinkAboutMN-IURA-2026-03-26Approved: x/x/26 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 DRAFT MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 1:00 P.M., Friday, March 26, 2026 Common Council Chambers, Third Floor (City Hall) 108 E. Green St., Ithaca, NY 14850 Members: Robert Cantelmo (Mayor), Chair; Karl Graham, Vice-Chair; Shaianne Osterreich; Donna Fleming Excused: None. Vacancies: 1 IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual] Guests: None. I. Call to Order Chair Cantelmo called the meeting to order at 1:03 P.M. II. Agenda Additions/Deletions None. III. 2025 HUD Entitlement Grant Action Plan A. Review of Public Hearing Format Mendizabal explained the details of the Public Hearing format, noting that IURA staff anticipates availability of $845,833 in Community Development Block Grant (CDBG) Program funds (including $160,000 in Program Income) and $232,000 in HOME Investment Partnerships Program (HOME) funds. Today’s meeting will include formal presentations for 8 of the 19 applications received. • The hearing is part of a competitive funding process for approximately $1 million in anticipated HUD- related funding, including CDBG and HOME funds (final allocations pending HUD confirmation). • 19 project applications were submitted, requesting roughly $1.6 million, exceeding available funds. • Presentations will be structured with 8 minutes for presenters and 4 minutes for questions from the Board. • Public commenters will be allotted 3 minutes each. The chart of all the applications received can be found on the following page: Approved: x/x/26 Approved: x/x/26 B. Disclosure of Any Potential Conflicts of Interest During the first portion of the Public Hearing, Graham disclosed that his wife was recently voted to the Ithaca Neighborhood Housing Services, Inc. (INHS) Board. C. PUBLIC HEARING #1 (Part 2) On a motion by Osterreich, seconded by Fleming, and unanimously approved, Chair Cantelmo reopened the Public Hearing. Public Comments Mendizabal provided the following summary of Public Comments received: Craig Byle, City of Ithaca resident and Henry St. John Building tenant, spoke regarding the proposed renovation project affecting the building. Byle emphasized the increasing scarcity of three-bedroom rental units in Ithaca and expressed concern that converting existing units into smaller apartments would reduce housing diversity and negatively impact quality of life. He noted that his apartment is in strong condition and that subdividing existing units could diminish livability. Byle also raised questions regarding the transition to all-electric systems, specifically whether utility costs would be passed on to tenants, and whether projections adequately account for the building’s high ceilings and increased heating demand. Byle suggested alternative approaches, including utilizing rooftop space for solar installations or shared gardens, and urged the Board to consider preserving the building’s existing character and larger unit sizes. ― ECONOMIC DEVELOPMENT APPLICATIONS ― 1. APPLICATION #7: COORDINATED PATHWAYS TO PERMANENT LOCAL EMPLOYMENT — FINGER LAKES REUSE, INC. (FLRU) Speaker Affiliation Comments-in-Brief Diane Cohen Finger Lakes ReUse, Inc. (FLRU) Cohen reviewed FLRU’s long-standing partnership with Tompkins County and described the organization’s continued growth in donated materials, staffing needs, and workforce development programming. She highlighted the opening of the Cayuga ReUse Center and facility improvements at the Ithaca ReUse Center. IURA Minutes March 26, 2026 Page 4 of 14 Speaker Affiliation Comments-in-Brief Caren Castleman Finger Lakes ReUse, Inc. (FLRU) Castleman described the ReSET (ReUse Skills & Employment) workforce development program, which serves adults facing barriers to employment. The proposal seeks partial funding to support training 15 participants and place 10 into permanent employment. Castleman explained merchandise sales cover approximately 70% of trainee wages, with CDBG funds supporting the remainder. Reduced funding would directly affect the number of trainees served. Erin Fierst Finger Lakes ReUse, Inc. (FLRU) Asia Kanzler Finger Lakes ReUse, Inc. (FLRU) Kanzler shared her personal experience as a ReSET participant, describing how access to affordable technology- and job-training led to IT certification and long-term employment. She emphasized the program’s role in providing stability, technical skills, and career advancement opportunities for individuals facing economic hardship. Q&A Cantelmo asked about the cost-per-job and noted there has historically been frequent misalignment between grantees’ job-placement targets and actual outcomes. FLRU’s cost-per-job is $6,500, which is very good, but Cantelmo would like some assurance FLRU’s anticipated job-placement targets are realistic. Cohen replied FLRU has historically operated the program with just one workforce coordinator, but FLRU has now doubled its capacity. Both rising local interest in the program and the program team’s innate competence/skill-set informed the job-placement target calculation. The program also benefits from a long waiting list. She feels very confident in the accuracy of the job-placement target. Graham asked what happens with clients who are not placed in jobs. Cohen replied there is a whole range of program participants, due to widely varying life circumstances, so it is inevitable some participants will not be placed. Fierst replied it is a challenge to place everyone in a job, but FLRU does maintain positive, permanent connections with its former clients. 2. APPLICATION #8: HOSPITALITY EMPLOYMENT TRAINING PROGRAM (HETP) — GREATER ITHACA ACTIVITIES CENTER (GIAC) Speaker Affiliation Comments-in-Brief Lonnie Jenkins Greater Ithaca Activities Center (GIAC) Jenkins described HETP’s role as a long-standing job-readiness and workforce training program, emphasizing individualized coaching, internships, and wraparound support services. He discussed funding sources, including City funding and other grants, and addressed IURA Minutes March 26, 2026 Page 5 of 14 Speaker Affiliation Comments-in-Brief questions regarding budget allocations reflected in City financial documents. Jenkins explained that stipends are milestone-based and tied to program participation, while internships provide paid, on-the-job training opportunities with partner organizations. The program also integrates financial literacy, sustainability, and life skills training. Q&A Osterreich asked for clarification regarding stipends and internships, including budgeted amounts and milestone requirements. Jenkins explained stipends are governed by eligibility thresholds; they are not automatic upon enrollment. Graham asked about stipend structure and milestones tied to classroom participation. Jenkins clarified that stipends require completion of a defined number of program hours and activities. ― PUBLIC SERVICES APPLICATIONS ― 3. APPLICATION #14: IMPROVING ESSENTIAL LOW-COST TRANSPORTATION ACCESS — ITHACA BIKESHARE Speaker Affiliation Comments-in-Brief Laura Vineyard Ithaca Bikeshare Vineyard described Ithaca Bikeshare as a key component of the local multimodal transportation network, providing 24/7 access to over 200 pedal-assisted e-bikes. She emphasized its role in supporting access to employment, groceries, healthcare, and other essential services, particularly for residents without access to personal vehicles. She noted system usage exceeds typical benchmarks, with trips per vehicle (TPV) per day ranging from 1.3 to 2.2 (depending on the season), suggesting continued unmet local demand. The proposal requests funding to purchase 12 additional e-bikes and 8 batteries to improve system availability and reduce wear on existing equipment. Vineyard addressed questions regarding service to low- and moderate-income (LMI) populations, explaining that expanding overall fleet availability directly benefits Easy Access members, who receive 60 minutes of free ride-time daily and account for approximately 25% of daily trips. She noted that strategies to rebalance the geographic configuration of bicycles could be tailored to prioritize key LMI service locations. IURA Minutes March 26, 2026 Page 6 of 14 Speaker Affiliation Comments-in-Brief Jeff Goodmark DropMobility.com Goodmark explained the bikes are purpose-built for shared use, including UL (Underwriters Laboratories) certified batteries, modular components, and integrated GPS and locking systems. Batteries are charged and swapped in the field to maximize uptime. He noted most original bikes have logged between 2,750-3,000 miles and continue to perform well. Q&A Cantelmo asked about the fleet size, relative to wear-and-tear. Goodmark explained that increasing the number of available bikes lowers usage-per-bike rates and prolongs equipment life. Osterreich asked about bike sourcing and pricing. Vineyard and Goodmark described the long-standing partnership with Drop Mobility and explained higher-cost fleet bikes provide greater durability and long-term cost efficiency. Graham asked whether the proposed budget represented the full program cost. Vineyard clarified the request covers only a portion of overall bikeshare operations, specifically tied to fleet expansion for accessibility goals. 4. APPLICATION #15: BRIDGING THE GAP — SERVICE IN UNITY, INC. Speaker Affiliation Comments-in-Brief Scott Sherwood Service in Unity, Inc. Sherwood described Service in Unity’s staffing-based workforce development model, serving individuals in recovery and those facing significant employment barriers. He emphasized the organization’s partnerships with numerous local social service, healthcare, and justice-involved agencies, which serve as referral sources and informal oversight. Sherwood explained participants are W-2 employees of Service in Unity, with the organization acting as employer-of-record and assuming responsibility for payroll, insurance, and compliance. Partner organizations reimburse Service in Unity for wages and associated employment costs, allowing host organizations to avoid employment risk. He noted the program prioritizes participant well-being and self-determination, with flexible schedules and ongoing employment not constrained by arbitrary end-dates. Sherwood reported the average wage paid through the program is approximately $22 per hour. IURA Minutes March 26, 2026 Page 7 of 14 Q&A Cantelmo asked how expenses would be adjusted if unsecured funding is not received. Sherwood replied administrative costs would first be reduced; and he may also forgo his salary. Participant wages would not be cut. Osterreich asked for clarification regarding the wages/overhead line items in the budget. Sherwood explained partner organizations pay Service in Unity to cover wages, plus an additional percentage for employment costs and organizational support. Graham asked about insurance expenses. Sherwood clarified the listed insurance amount reflects liability coverage, while workers’ compensation and payroll-related costs are included in indirect overhead. 5. APPLICATION #16: 2-1-1 INFORMATION & REFERRAL HELPLINE WITH HOUSING NAVIGATION — HUMAN SERVICES COALITION OF TOMPKINS COUNTY, INC. (HSC) Speaker Affiliation Comments-in-Brief John Mazzello Human Services Coalition of Tompkins County, Inc. (HSC) Mazzello described 2-1-1 as a comprehensive community navigation service assisting residents in accessing food, housing, transportation, healthcare, and other essential resources. He noted service volume remains approximately 20-25% higher than pre-pandemic levels, with majority of callers residing within the City of Ithaca. The funding request would support portion of staff salaries for core operations, including Contact Center Manager, one full-time specialist, and two part-time specialists. Mazzello explained reduced funding would likely result in reduced staffing availability or increased reliance on contracted services, which would limit capacity for core intake and referral work. Nicole Roulstin Human Services Coalition of Tompkins County, Inc. (HSC) Roulstin described current operational trends and partnerships, including coordination with the Volunteer Income Tax Assistance (VITA) program, medical transportation programs, and transit pass distribution. She noted these partnerships often connect clients to additional services beyond their initial request. She highlighted quality assurance practices, including annual resource verification and routine client surveys, reporting approximately 90% of respondents indicate they received the help they needed. Q&A None. IURA Minutes March 26, 2026 Page 8 of 14 6. APPLICATION #17: MOBILE BIKE REPAIR CLINIC — BIKE WALK TOMPKINS (CENTER FOR COMMUNITY TRANSPORTATION) Speaker Affiliation Comments-in-Brief Niki Ray- Israelsohn Bike Walk Tompkins (Center for Community Transportation) Ray-Israelsohn described Bike Walk Tompkins’ mission to promote active transportation and reviewed the operations of Swamp City Community Cycles, which provided hundreds of free/assisted repairs and distributed refurbished bicycles in 2025. Ray-Israelsohn explained prior funding from Assemblymember Anna Kelles had been awarded and nearly fully expended. The present proposal seeks to sustain and expand services through new funding cycle. Mark Thornton Bike Walk Tompkins (Center for Community Transportation) Thornton outlined proposed Mobile Bike Repair Clinic program, which would establish pop-up repair sites at community service locations, like Loaves & Fishes, Department of Social Services (DSS), Opportunities, Alternatives, & Resources of Tompkins County (OAR), and Ithaca Neighborhood Housing Services, Inc.’s (INHS) housing developments. Clinics would provide free preventative maintenance, essential repairs, helmets, lights, locks, and safety education. Program aims to address access barriers posed by limited shop hours and distance from city center. Clinics would be scheduled regularly and coordinated with partner organizations to serve individuals most reliant on bicycles. Q&A: Cantelmo asked how the program would scale if partially funded. Ray-Israelsohn replied the number of clinic locations would be reduced, while maintaining regular service schedules at remaining sites. Osterreich asked about seasonality and potential year-round operations. Ray-Israelsohn explained pop-up clinics are seasonally limited due to outdoor conditions, though the shop itself operates year-round with brief planned closures. Graham asked whether the $40,000 in prior funding was secured. Ray-Israelsohn confirmed the funding had been awarded and nearly entirely expended. 7. APPLICATION #18: ENHANCE LOCAL TENANTS RIGHTS — CORNELL COOPERATIVE EXTENSION (CCE) Speaker Affiliation Comments-in-Brief Chris Skawski Cornell Cooperative Extension (CCE) CCE proposed a three-part public education and referral program focused on improving quality of rental housing stock in Ithaca, with a IURA Minutes March 26, 2026 Page 9 of 14 Speaker Affiliation Comments-in-Brief particular emphasis on tenant and landlord rights, energy efficiency, and pathways for remediation of common housing issues. PROGRAM COMPONENTS: Public Education o Workshops/educational materials focused on housing quality issues. o Seasonal workshops, including winter sessions addressing heating concerns and “no heat” emergencies. o Education on New York State minimum heat standards and tenant/landlord rights and responsibilities. Direct Referrals o Integration of tenant and landlord housing resources into existing CCE programs, including:  Smart Energy Choices/Community Energy Advisors.  Social Care Resource Navigators (Cayuga Health Partnership). o Coordination with 2-1-1 to ensure appropriate referral pathways for housing quality concerns. o Development of contractor lists and guidance for mold, lead, and other remediation needs. Convening of Housing Stakeholders o Host or support convenings of housing service providers, contractors, and other stakeholders. o Identify shared pain points and opportunities for system-level improvements. o Provide administrative support (minutes, scheduling, coordination). Rationale & Need o Approximately 40% of Ithaca housing was built before 1970; ~10% is pre-war. o Bringing buildings up to code could reduce home heating emissions by estimated 30%. o Median household income in Ithaca is ~$48,000, qualifying most renters as LMI. o Approximately 75% of City residents are renters. Funding & Match o Requested dedicated funding to tie together existing CCE programs under tenant protection focus. o Matching funds represent portion of the Team Lead’s existing time commitment. IURA Minutes March 26, 2026 Page 10 of 14 Q&A Osterreich asked whether there are matching funds for the “Energy and Climate Change Team Lead” and “Community Health Coordinator” budget line-items. Skawski replied the matching funds should have been listed on those lines, also. Osterreich asked if the services addressing common housing quality issues (e.g., mold, pests, radon, lead) would fall under the Community Health Coordinator role, or if it is more integrated than that. Skawski responded they would be more integrated. Graham asked if the applicant examined any overlap between what the program proposes and what 2-1-1 currently provides. Skawski replied that is another aspect of the program where scalability would play a role, in terms of direct referrals. 8. APPLICATION #19: REUSE MATERIALS ACCESS PROGRAM FOR ITHACA HOUSEHOLDS IN NEED (REMAP) — FINGER LAKES REUSE, INC. (FLRU) Speaker Affiliation Comments-in-Brief Diane Cohen Finger Lakes ReUse, Inc. (FLRU) ReMAP provides free or deeply discounted reused household materials to individuals and families experiencing material hardship, working through referrals from human service agencies. Key Program Details: • Operating since 2017 (as formalized program). • Served over 4,500 households and provided 890 free deliveries to date. • Network of 45 partner agencies. • Most requested items include furniture, housewares, and technology (i.e., computers, tablets, phones). 2025 Outcomes: • 1,036 households served. • $168,000 in value provided at reuse prices. • 251 free deliveries. • 28% of recipients were transitioning from homelessness to housing. • Due to high demand (86 referrals/mo.), voucher amounts were reduced to $125 for most recipients. Funding Request & Impact: • Request would support: o 120 household gift cards. o 60 free deliveries. • Every dollar granted is effectively quadrupled due to low reuse pricing. • FLRU contributes 50% of gift card value and delivery costs in kind. IURA Minutes March 26, 2026 Page 11 of 14 Speaker Affiliation Comments-in-Brief Scalability: • Program scales directly with funding levels. • Reduced funding would result in fewer households served rather than program elimination. Erin Fierst Finger Lakes ReUse, Inc. (FLRU) Q&A Osterreich asked how the applicant would handle less than the full IURA grant award. Cohen replied the program would be forced to serve a smaller number of people. On a motion by Osterreich, seconded by Graham, and unanimously approved, Chair Cantelmo adjourned the Public Hearing. D. Substitute Housing Development Action Grants (HODAG) Funds for CDBG Funding to INHS to Assist 208 W. State Street Project Funded in 2025 Action Plan (Project #1, 2025) Bohn explained the background of the proposed resolution, noting it has not been reviewed by an IURA Committee: • Project was not awarded NYS 9% Low-Income Housing Tax Credit (LIHTC) funding this cycle. • Currently allocated CDBG funds may risk IURA compliance with HUD’s CDBG spend-down timeliness rule. • Proposed Solution: Temporarily substitute HODAG funds to maintain local funding commitment while freeing ~$79,000 in CDBG funds for current-year projects. • HODAG funds could later be replaced with future HOME or CDBG funds if the project secures State funding. Discussion Highlights: • This is a temporary accounting/funding swap, consistent with prior IURA practice. • HODAG funding would maintain INHS competitiveness for State funding applications. • Loan would not close unless State funding is awarded. • If needed, HODAG loan could become a long-term (30-year) low-interest loan. Graham asked if the proposed reallocation is reflected in the existing 2026 Funding Applications Chart. Bohn replied, no. IURA Minutes March 26, 2026 Page 12 of 14 Cantelmo moved, seconded by Graham: HUD Entitlement Grant Program — Substitute Housing Development Action Grants (HODAG) for CDBG Funding to Assist INHS’ 209 W. State Street Project (Project #1, 2025) WHEREAS, the 2025 City of Ithaca HUD Entitlement Action Plan allocated $121,066.60 to assist Ithaca Neighborhood Housing Services, Inc.’s 208 W. State Street project to construct a 56-unit affordable rental housing project to be known as “The Lucy,” and WHEREAS, the City allocation provided for $42,098.20 from the HOME funding source and $78,968.40 from the CDBG funding source, and WHEREAS, INHS submitted a funding application for The Lucy project to the 2025 HCR Multifamily Finance 9% Low Income Housing Tax Credit (LIHTC) Request for Proposals but was not awarded funding assistance, and WHEREAS, INHS indicates they plan to re-apply for 9% LIHTC assistance in 2026, and WHEREAS, the next 9% LIHTC RFP is expected to be released in Summer 2026 with awards anticipated to be announced in Spring 2027, and WHEREAS, the CDBG timeliness test for the CDBG portfolio requires CDBG-assisted projects, on average, to be disbursed within 15 months of the start of the program year for the City to remain compliant, and WHEREAS, applying the above timeliness test to The Lucy project leads to preferred November 2026 date for disbursing CDBG funds, which cannot be satisfied, and WHEREAS, issuing a funding commitment from the HoDAG funding source to substitute for the CDBG funding will allow INHS to retain the IURA’s funding commitment when resubmitting their application to New York State, and allow allocation of 2025 CDBG funds to a project that can be implemented on a timely basis, and WHEREAS, if INHS is awarded funding in the 2026 9% LIHTC round, then the 2027 Action Plan can reallocate CDBG or HOME funds to substitute for a HoDAG loan commitment, and WHEREAS, the IURA administers the HODAG proceeds fund, which originally derived from the 1984 Eddygate Housing Development Grant (#NY009HG401), and had an unobligated fund balance of approximately $460,000, and WHEREAS, HODAG proceeds may be used to “support the construction, rehabilitation or operation of real property to be used primarily for low and moderate income residential rental purposes,” and WHEREAS, by IURA policy, the HODAG proceeds are primarily used to make loans to assist affordable rental housing projects that will be repaid in short order to recapitalize the fund to enable the IURA to make additional loans for affordable housing projects; Now, therefore, be it IURA Minutes March 26, 2026 Page 13 of 14 RESOLVED, the IURA hereby approves a loan to INHS to substitute HoDAG funds for CDBG funds allocated in the 2025 Action Plan subject to the following terms and conditions: Loan Amount: Up to $78,968.40 Borrower: INHS, or a subsidiary entity controlled by INHS Use of Funds: Acquisition of land and construction of an approximately 56-unit affordable housing project located at 209-217 W State Street. Loan Type: 3-year construction loan followed by a 30-year term loan Source of Funds: HODAG proceeds Loan Term & Interest Rate: The construction stage loan has a term of up to 36 months at an interest rate of 0% per annum. No payments will be due if the project proceeds to permanent financing within 36 months. If the project does not proceed to permanent financing, then full repayment of the Loan is due 36 months from the Loan Commencement Date. The permanent loan has a 30-year term at an interest rate of 1% per annum, compounded annually, to be paid on a cash-flow contingent basis on each anniversary of the Loan Commencement Date. The principal together with unpaid accrued interest shall be paid in full at the end of the 30-year term. Conditions: INHS relinquishes any rights to CDBG funds allocated to the project in the 2025 HUD Action Plan. Expiration: Unless expressly waived by the IURA, this loan commitment shall expire if the project is not awarded financial assistance in the 2026 HCR Multifamily Finance 9% LIHTC RFP competition. Prepayment: Borrower may repay the loan at any time during the term without penalty. IURA Minutes March 26, 2026 Page 14 of 14 Collateral: Subordinate lien on project property RESOLVED, that the IURA Director of Community Development is authorized to issue a loan commitment in accordance with the terms of this resolution, and be it further RESOLVED, that the IURA Chairperson, upon the advice of the IURA Attorney, is hereby authorized to execute all necessary and appropriate documents to implement this resolution, including, but not limited to, executing loan agreement documents. Carried Unanimously: 4-0 D. Preliminary Deliberations Graham suggested providing full funding to a fewer number of projects. Cantelmo supported that idea. Other Discussion Items: • Potential need to reduce individual Public Services project allocations due to limited funding. • Consideration of fully funding fewer programs rather than partially funding many. • Acknowledgement that final HUD entitlement amounts have not yet been confirmed by HUD. IV. Review of Meeting Minutes: February 26, 2026 & March 19, 2026 Fleming moved, seconded by Osterreich, to approve the meeting minutes with no modifications. Carried Unanimously: 4-0 V. Executive Session to Discuss Proposed, Pending or Current Litigation Cantelmo moved, Graham seconded, to open the Executive Session. No objections were raised. — EXECUTIVE SESSION — No action was taken during the Executive Session. VI. Adjournment The meeting was adjourned by consensus at 3:36 P.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.