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HomeMy WebLinkAboutMN-IURA-2026-05-28` 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 9:15 A.M., Thursday, May 28th, 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 Excused: Donna Fleming Vacancies: 1 Common Council Liaison: (not present) IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual] City Staff: None. Guests: None. I. Call to Order Cantelmo called the meeting to order at 9:15 A.M. II. Agenda Additions/Deletions None. III. Public Comments None. IV. Review of Meeting Minutes: April 23, 2026 Graham moved, seconded by Osterreich, to approve the meeting minutes with no modifications. Carried Unanimously: 3-0 Approved: 7/23/26 IURA Minutes May 28, 2026 Page 2 of 9 V. Audit Committee A. 2025 Financial Audit Approval Graham moved, seconded by Osterreich: Reaffirm 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 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 2025 financial report and attached correspondence; and WHEREAS, at its April, 23, 206 meeting, the IURA approved the 2025 financial report subject to IURA Audit Committee review, and WHEREAS, on May 28, 2026, the IURA Audit Committee reviewed the 2025 financial report and recommended its approval; now, therefore, be it RESOLVED, the IURA hereby reaffirms approval of 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: 3-0 B. Annual Selection of Audit Committee Officers Graham moved, seconded by Osterreich: 2026 IURA Audit Committee Election of Vice-Chairperson & Nomination of 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 IURA Minutes May 28, 2026 Page 3 of 9 WHEREAS, the current committee officers are: Chairperson: Karl Graham Vice-Chairperson: Donna Fleming, and WHEREAS, at their May 28, 2026 meeting, the IURA Audit Committee called for nominations for Vice- Chair and Chair of the IURA Audit Committee; now, therefore be it RESOLVED, that the IURA Audit Committee hereby nominates Karl Graham as Committee Chairperson, and be it further RESOLVED, that the IURA Audit Committee hereby elects Donna Fleming as Committee Vice- Chairperson. Carried Unanimously: 3-0 C. Committee Chairperson Report Graham noted that Bohn will check with Fleming to see if she is in fact willing to serve as Vice-Chairperson of the Committee. VI. Economic Development Committee (EDC) A. Annual Selection of Economic Development Committee Officers Cantelmo explained Derek Adams was nominated as Chairperson, while Fleming was elected as Vice- Chairperson. Cantelmo moved, seconded by Graham: 2026 IURA Economic Development Committee (EDC) Election of Vice-Chairperson & Nomination of Chairperson WHEREAS, the IURA By-laws provide that the committee membership shall elect its own committee Vice-Chairperson and nominate to the IURA Board a member to serve as Chairperson of the Committee, and WHEREAS, IURA By-laws further require at least one officer must be an IURA member, 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: Robert Cantelmo Vice-Chairperson: Leslie Ackerman, and IURA Minutes May 28, 2026 Page 4 of 9 WHEREAS, at the Committee’s May 12, 2026 meeting, the Chair called for nominations for Vice-Chair and Chair of the IURA Economic Development Committee; now, therefore be it RESOLVED, that the IURA Economic Development Committee hereby nominates Derek Adams as Committee Chairperson, and be it further RESOLVED, that the IURA Economic Development Committee hereby elects Donna Fleming as Committee Vice-Chairperson. Carried Unanimously: 3-0 B. HUD Entitlement Grant Program — Request for Supplemental CDBG Funding: Shared Kitchen Ithaca, Inc. (SKI) (Project #10, 2023) Cantelmo explained that representatives from SKI attended the Committee meeting and answered a few questions. The Committee unanimously recommended approval of the proposed resolution. Bohn noted the resolution identifies two projects that were not able to expend their entire funding awards, which are proposed to be used towards the SKI project. Mendizabal added that Downtown Ithaca Children’s Center (DICC) staff expressed their appreciation for receiving the original award. The exterior doors were not completed, since they required prevailing wages in accordance with The Davis-Bacon Act. DICC experienced considerable difficulty identifying a company to complete that portion of the project. Graham observed that SKI appears to have done a very good job of identifying low- to moderate-income (LMI) food entrepreneurs to benefit from the program. Bohn added that the program has also received numerous very positive reviews from customers. Cantelmo moved, seconded by Graham: Program Amendment #1: 2023 Action Plan Shared Kitchen Ithaca, Inc. — 2026 Supplemental Funding (Project #11, 2023) WHEREAS, the City of Ithaca 2023 Annual Action Plan (AAP) allocated $32,500 in Community Development Block Grant (CDBG) funding for Project #11 “Shared Kitchen Ithaca” (SKI) to provide discounts to ten (10) eligible low- and moderate-income (LMI) microenterprise participants, and WHEREAS, in May 2025, SKI opened in a 4,000 square foot facility with state-of-the-art equipment at 700 West Buffalo Street, and WHEREAS, IURA funding provides 50% discounts on facility usage and storage to LMI microenterprise SKI members, and WHEREAS, SKI has exceeded its public benefit goal by assisting 11 LMI micro-enterprises and currently has 30 member businesses, and IURA Minutes May 28, 2026 Page 5 of 9 WHEREAS, over 80% of LMI participant microenterprises have incomes less than 50% of the area median income, and WHEREAS, IURA funding available to assist LMI microenterprises will be depleted in June 2026, and WHEREAS, SKI requests $25,000 in supplemental funding to continue to assist LMI microenterprises, and WHEREAS, the following CDBG funding agreements have expired with the unallocated balances: • $9,344.00 2023 Project #2, INHS Homeowner Rehabilitation • $15,680.61 2024 Project #10, DICC ADA Upgrades & Improvements • $25,034.61 Total Unallocated CDBG funds WHEREAS, awarding unallocated CDBG funds off-cycle to projects in position to expend funds for positive community impact is consistent with the IURA CDBG Timeliness Workout Plan, and WHEREAS, a program amendment of $25,000 or less is defined in the City of Ithaca HUD Citizen Participation Plan as a non-substantive amendment for which the IURA is authorized to approve with notice provided to the Common Council, and WHEREAS, SKI agrees to request additional data from participant businesses to measure economic impact of SKI on the local economy, and WHEREAS, the Economic Development Committee considered this matter at their May 19, 2026, meeting and recommended the following action; now, therefore, be it RESOLVED, the IURA approves program amendment #1 to the 2023 HUD Action Plan to award $25,000 in unallocated CDBG funds to the Shared Kitchen Ithaca project (#11, 2023) to extend discounts provided to LMI microenterprises, and be it further RESOLVED, that the source of funds shall derive for unallocated CDBG funds from the 2023 INHS Homeowner Rehabilitation and 2024 DICC ADA Upgrades and Improvements projects, and be it further RESOLVED, that the expiration date for the Shared Kitchen Ithaca project be extended to June 30, 2027, and be it further RESOLVED, that the project sponsor be requested to collect and report to the IURA quantitative data describing the economic impact of SKI by February 28, 2027, and be it further RESOLVED, that the IURA Chairperson, subject to review by IURA legal counsel, is authorized to execute an agreement to implement this resolution. Carried Unanimously: 3-0 IURA Minutes May 28, 2026 Page 6 of 9 C. Community Lending: Revisions to Density District Priority Business Loan Program (PB-LF) Cantelmo explained that the PB-LF criteria were streamlined to focus more on outcomes, than the specific types of businesses/stores being targeted. The Committee approved the resolution unanimously. (The resolution cites the proposed changes in red.) Cantelmo moved, seconded by Graham: 2026 Amendments to Density District Priority Business Loan Fund (PB-LF) Within IURA Economic Development Financing Policy WHEREAS, the IURA established the Density District Priority Business Loan Fund on October 25, 2007 at the request of the downtown business district to implement their downtown development strategy that was endorsed by the Common Council for the City of Ithaca, and WHEREAS, business conditions and opportunities have evolved since establishment of the Priority Business Loan Fund, and WHEREAS, the existing citywide Community Development Revolving Loan Fund (CD-RLF) will most often not be an appropriate financing tool to attract local priority businesses, in part because the CD- RLF is a gap financing loan product intended to fill the gap after bank financing and equity has been maximized and limits lURA loan amounts to $100,000 for retail businesses, establishes minimum eligibility tests for restaurant start-up projects, and prohibits loans to any business that derive more than 35% of revenues from the sale of alcoholic beverages, and WHEREAS, the Economic Development Committee developed the following guiding principles for amending the Density District Priority Business Loan program: 1. The detailed list of specific eligible businesses should be replaced with broader categories of desired businesses; 2. The program should encourage flexibility rather than restrict projects that have strong potential to strengthen vitality in the target area; 3. Include promising business categories identified in the recently completed Citywide Retail Market Study and Strategy, and WHEREAS, at their May 19,2026 meeting, after review of comments received from the Downtown Ithaca Alliance, the IURA Economic Development Committee recommended the following action; now, therefore, be it RESOLVED, that the IURA hereby amends the Density District Priority Business Loan Program in its IURA Economic Development Policy Guidelines and Operating Plan, which governs IURA economic development financial assistance programs, as follows: 9.4 Priority Business Loan Program IURA Minutes May 28, 2026 Page 7 of 9 (a) Objective. . To support a vibrant, welcoming, and diversified walkable commercial district, the program provides direct financing to induce creation, retention, and expansion of the following priority categories of commercial enterprises: • Retail • Arts, culture, and entertainment • Destination food and beverage • Small-scale manufacturing • Businesses owned and operated by under-represented groups, including minority- and women- owned businesses • Succession of legacy businesses • Other uses that contribute to vibrant and welcoming walkable commercial corridors (b) Eligible Borrowers. Both for-profit and nonprofit entities legally established to conduct business in New York State. (c) Eligible Projects. Projects that advance the program’s objective are eligible for loan assistance through this program. (d) Eligible Uses of Loan Funds - Private For-Profit Businesses. Funds may be used for any justifiable business purpose including, but not limited to, fixed assets, current assets including inventory and accounts receivable, permanent working capital, acquisition of land and/or buildings, and for costs related to micro-enterprise start-ups. (e) Eligible Uses of Loan Funds - Nonprofit Enterprises. Use of funds by nonprofit borrowers is limited to commercial or industrial improvements, including acquisition, construction, rehabilitation, reconstruction, or installation of commercial or industrial buildings or structures and other related real property equipment and improvements. (Note: working capital and inventory uses are not eligible). (f) Target Area. Projects must be located within the Priority Business Target Area within the City of Ithaca (see Exhibit G). Projects located outside the target area are eligible for the City-wide Community Development Revolving Loan Program. (g) Job Creation. At least one FTE job for every $35,000.00 of loan assistance. (h) CDBG National Objective Test. Either low/mod jobs benefit - 51% of all jobs created must be held by, or made available to, LMI persons, or a neighborhood business serving a predominantly LMI neighborhood. (i) Maximum Amount of Financing. $250,000.00, generally not to exceed 60% of project cost, nor more than the minimum amount necessary to effect the business activity after maximizing other private and public sources of debt and equity or finding that such other sources are inappropriate, unaffordable, or otherwise unavailable. (j) Term. Not to exceed 10 years, unless secured with real property. IURA Minutes May 28, 2026 Page 8 of 9 (k) Interest Rate. 75% of the current U.S. prime rate is established as the standard interest rate, though the rate is transaction specific depending on need,risk and public benefit, and may range from 0% to the 10-year US Treasury rate. (l) Repayment. Repayment terms shall be transaction specific. Projects shall be underwritten to fully repay the IURA loan unless the project will result in extraordinary public benefits. (m) Security/Collateral. Collateral to secure the loan shall be transaction specific; no minimum loan-to-value standard is required and security may be limited to a first or second lien position on inventory and furnishings, fixtures and equipment or other satisfactory collateral. Carried Unanimously: 3-0 D. Committee Chairperson Report None. VII. New/Other/Old Business A. REPORTS: IURA Chair/Mayor, Common Council Liaison, & Staff IURA Chair/Mayor’s Report IURA Minutes May 28, 2026 Page 9 of 9 Cantelmo noted the Local Planning Committee membership list for the NYS Downtown Revitalization Initiative (DRI) was approved. He anticipates the Committee will meet six times by the end of the year and will be soliciting feedback from the IURA Board. Common Council Liaison Report None. Staff Report Mendizabal reported that Common Council held Public Hearing #2 associated with the 2026 Annual Action Plan approval process, at which two public comments in support of the Floral Avenue Pedestrian & Cyclist Safety project were heard. VIII. Adjournment The meeting was adjourned by consensus at 9:47 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.