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HomeMy WebLinkAboutMN-IURA-2026-04-23` 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 9:30 A.M., Thursday, April 23, 2026 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; Donna Fleming Excused: None. Vacancies: 1 Common Council Liaison: (not present) IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual] City Staff: Lisa Nicholas, Director of Planning & Development Guests: None. I. Call to Order Cantelmo called the meeting to order at 9:31 A.M. II. Agenda Additions/Deletions None. III. Public Comments None. IV. Review of Meeting Minutes: March 26, 2026 Fleming moved, seconded by Osterreich, to approve the meeting minutes with one modification. Carried Unanimously: 4-0 V. Economic Development Committee (EDC) — Chairperson Report Board members concurred with the Committee’s 2026 HUD Entitlement Program Action Plan recommendations. VI. Neighborhood Investment Committee (NIC) A. Adopt Proposed 2026 HUD Entitlement Grant Action Plan Osterreich explained the Committee agreed on the funding allocations illustrated in the chart below and further described in the proposed resolution: Approved: 5/28/26 Osterreich moved, seconded by Graham: Proposed 2026 Action Plan: City of Ithaca — HUD Entitlement Program WHEREAS, the City of Ithaca (City) is eligible to receive an annual formula allocation of funds to address community development needs through the U.S. Department of Housing & Urban Development (HUD) Entitlement program from the Community Development Block Grant (CDBG) Program and the HOME Investment Partnerships (HOME) Program funding sources, and WHEREAS, the City contracts with the Ithaca Urban Renewal Agency (IURA) to administer, implement, and monitor the City’s HUD Entitlement Program in compliance with all applicable regulations, and WHEREAS, on an annual basis, an Action Plan must be submitted to HUD to access HUD Entitlement Program funding allocated to the City, and WHEREAS, the 2026 Action Plan identifies a specific list of budgeted community development activities to be funded from the 2026 HUD Entitlement Program allocation and associated funds administered by the IURA, and WHEREAS, the U.S. Department of Housing and Urban Development (HUD) released 2026 CDBG and HOME funding allocations to the City on April 8, 2026, and WHEREAS, funds to be allocated through the 2026 Action Plan process include the following: $715,084.00 CDBG 2026 Allocation $160,000.00 CDBG 2026 Projected Program Income $6,779.00 CDBG Recaptured/Unallocated (R/U) $286,155.57 HOME 2026 Allocation $3,333.00 HOME Recaptured/Unallocated (R/U) $1,171,135.57 Total, and WHEREAS, the IURA employed an open and competitive project selection process for development of the 2025 Action Plan in accordance with the City’s Citizen Participation Plan, and WHEREAS, public hearings on development of the Action Plan are required both during development of the Action Plan and to review the proposed Action Plan, and WHEREAS, a two-part public hearing #1 to review 2026 Annual Action Plan proposals was held by the IURA on March 19, 2026, and March 26, 2026, and WHEREAS, on April 14, 2026, the IURA Economic Development Committee endorsed the Neighborhood Investment Committee’s recommended 2026 Action Plan, and WHEREAS, a second public hearing will be held by Common Council following publication of the proposed 2026 Action Plan; now, therefore, be it IURA Minutes April 23, 2026 Page 4 of 12 RESOLVED, that the IURA hereby adopts the attached summary table titled “IURA Neighborhood Investment Committee Recommended 2026 Action Plan, City of Ithaca, NY,” dated April 20, 2026, as the proposed 2026 Action Plan, and forwards it to the City of Ithaca Common Council for review and approval for allocating the 2026 HUD Entitlement Program award, along with associated funds listed above; and be it further RESOLVED, that IURA staff is hereby authorized to make non-substantive adjustments to allocation amounts to fully assign all funds available down to the penny and correct any mathematical errors, and be it further RESOLVED, that the Urban Renewal Plan shall be amended to include activities funded in the adopted 2026 Action Plan. Carried Unanimously: 4-0 B. Committee Chairperson Report None. VII. Governance Committee (GC) A. 2025 IURA Financial Audit Bohn explained the IURA audit is done on a modified accrual basis, so for example if vacation time is accrued it does not recognized as liability. It only becomes part of the balance sheet when funds are expended or received. Similarly, when more loans are issued, the modified accrual model makes the balance sheet appear less robust, until the loan repayments are actually received. The audit contained no recommendations for changes. Bohn noted the Audit Committee typically approves and reviews the audit. Unfortunately, the annual Audit Committee meeting was not scheduled for today, as ordinarily would have been the case. Cantelmo noted that, given there were no findings and on advice of legal counsel, the audit should simply be considered at a future date by the Audit Committee, as per the normal procedure. No objections were raised. Fleming moved, seconded by Osterreich: Approval of 2025 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 IURA Minutes April 23, 2026 Page 5 of 12 WHEREAS, the IURA received an audited 2025 IURA financial report on April 3, 2026, and WHEREAS, at its April 17, 2026 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, 2025 through December 31, 2025, prepared by the accounting firm of Insero & Co. CPAs, LLP. Carried Unanimously: 4-0 B. Review of Investment Guidelines Bohn walked through some key points: • All funds are held in FDIC-insured bank accounts. • Balances exceeding insured limits are fully collateralized through a tri-party agreement. • Investment practices are conservative, as required by HUD. • Any interest earned over $500 annually on HUD funds is returned to HUD. Fleming moved, seconded by Graham: 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 2025 IURA Investment Report, and WHEREAS, at their April 17, 2026 meeting, the IURA Governance Committee reviewed the IURA Investment Guidelines and the 2025 Investment Report; now, therefore, be it RESOLVED, that the IURA hereby reaffirms its approval of the IURA Investment Guidelines. Carried Unanimously: 4-0 C. 2025 Public Authorities Law (PAL) Reporting Bohn explained that certain reporting questions contained in the meeting materials do not apply to the IURA, due to its size and structure. IURA Minutes April 23, 2026 Page 6 of 12 Fleming moved, seconded by Osterreich: Approval of Reports Submitted to NYS Authorities Budget Office (ABO) 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 17, 2026, the IURA Governance Committee reviewed the reporting and recommends the following action; now, therefore, be it RESOLVED, that the IURA hereby approves FY2025 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 D. Amendment to Independent Contractor Agreement for Accounting Services Fleming explained the proposed resolution simply amends the accounting services agreement to provide a milage reimbursement to Amber Moore for required in-office deliveries to facilitate timely HUD funding drawdowns and check issuance. Fleming moved, seconded by Graham: 1st Amendment to Independent Contractor Agreement for Accounting Services – Moore WHEREAS, on February 26, 2026, the IURA authorized an independent contract agreement for full charge accounting services with Amber Moore, at a rate of $57/hour, and WHEREAS, the vast majority of accounting work can be completed remotely now that the Agency has converted to an on-line accounting software, and IURA Minutes April 23, 2026 Page 7 of 12 WHEREAS, during the transition process from a staff accountant to an independent contractor it became clear to IURA management that the preparation of HUD drawdowns and issuance of checks is most effective and efficient if the independent contractor periodically delivers documents in-person, and WHEREAS, the independent contract agreement did not consider any reimbursement for travel, and WHEREAS, IURA management recommends a contract amendment to provide a milage reimbursement for required in-office deliveries to facilitate timely HUD drawdowns and check issuance, and WHEREAS, the IURA Governance Committee discussed this matter at their April 17, 2026 meeting; now, therefore, be it RESOLVED, that the IURA Chairperson is hereby authorized, subject to review by IURA legal counsel, to execute the first amendment to the independent contract agreement for accounting services with Amber Moore to require in-person delivery of HUD drawdown documents, checks to be issued, and financial audit preparation documents, and to reimburse milage at the applicable IRS rate for required in-person deliveries to the IURA office. Carried Unanimously: 4-0 VIII. New/Other/Old Business A. City Policy Priorities Cantelmo explained that Common Council recently adopted a new set of policy priorities (as described in resolution pasted further below), including: (1) establishing citywide minimum residential density requirements; (2) creating a comprehensive zoning reform package to modernize land use regulations; and (3) consideration of new design standards to streamline and improve the residential and mixed-use property development process. (continued on following page) IURA Minutes April 23, 2026 Page 8 of 12 IURA Minutes April 23, 2026 Page 9 of 12 IURA Minutes April 23, 2026 Page 10 of 12 B. REPORTS: IURA Chair/Mayor, Common Council Liaison, & Staff IURA Chair/Mayor’s Report None. IURA Minutes April 23, 2026 Page 11 of 12 Common Council Liaison Report None. Staff Report Bohn remarked the currently proposed FY2027 Federal budget does not include any Community Development Block Grant (CDBG) Program or HOME Investment Partnerships Program (HOME) funds. Bohn also drew the Board’s attention to the CDBG Timeliness Memorandum on the last page of the meeting agenda packet: IURA Minutes April 23, 2026 Page 12 of 12 IX. Executive Session to Discuss Proposed, Pending or Current Litigation Osterreich moved, Fleming seconded, to open the Executive Session. No objections were raised. — EXECUTIVE SESSION — No action was taken during the Executive Session. X. Adjournment The meeting was adjourned by consensus at 9:58 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.