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HomeMy WebLinkAboutMN-CC-2014-11-05COMMON COUNCIL PROCEEDINGS CITY OF ITHACA, NEW YORK Regular Meeting 6:00 p.m. November 5, 2014 PRESENT: Mayor Myrick Alderpersons (9) Brock, McGonigal, Murtagh, Clairborne, McCollister, Smith, Kerslick, Martell, Mohlenhoff OTHERS PRESENT: City Clerk – Conley Holcomb City Attorney – Lavine City Controller – Thayer Building, Planning, Zoning & Economic Development Director – Cornish Deputy Director of Economic Development – DeSarno Acting Youth Bureau Director - Vance Community Development Director – Bohn Superintendent of Public Works – Thorne Chief of Staff – Sutherland EXCUSED: Alderperson Fleming PLEDGE OF ALLEGIANCE: Mayor Myrick led all present in the Pledge of Allegiance to the American Flag. SPECIAL ORDER OF BUSINESS: 4.1 A Public Hearing to Consider the Mayor’s 2015 Proposed Budget Resolution to Open Public Hearing: By Alderperson Kerslick: Seconded by Alderperson McCollister RESOLVED, That the Public Hearing to consider the Mayor’s 2015 Proposed Budget be declared open. Carried Unanimously Fay Gougakis, City of Ithaca, voiced her support for the proposed addition of two new police officers for a Community Action Team but stated that the need for an additional traffic officer is imperative. She further shared her thoughts about the Commons renovation project and the lack of an increased financial contribution by Cornell University. Resolution to Close Public Hearing: By Alderperson Mohlenhoff: Seconded by Alderperson Kerslick RESOLVED, That the Public Hearing to consider the Mayor’s 2015 Proposed Budget be declared closed. Carried Unanimously SPECIAL PRESENTATIONS BEFORE COUNCIL: Update from City of Ithaca Youth Council Marty Schreiber, Youth Council Program Director and Youth Council members: Jean Sinon, Etienne Grenier, Eowyn Hawley, Amber Delotsang, Molly Swartout, Leah Larson, and Duncan Casper reported to Council on the projects they are working on including:  Ithaca High School Improvement Project  Youth Art Showcase: visual arts, literature, music  Tutor Project: bridging the education gap  Pee Wee football concessions  Holiday event for families in need  IPD & community relations working group Mayor Myrick thanked the Youth Council for establishing a strong legacy of raising the voices of Ithaca’s youth. November 5, 2014 2 5.2 Presentation of Proposed Hilton Canopy Hotel – Scott Whitham Mr. Scott Whitham made a presentation on the proposed Hilton Canopy Hotel that would be located on between the Carey Building and the Community School of Music & Art on the 300 block of East State/ MLK Street. PETITIONS AND HEARINGS OF PERSONS BEFORE COUNCIL: The following people spoke in favor of the proposed Hilton Canopy Hotel project: Michael Cannon, City of Ithaca Bruce Stoff, Tompkins County Visitors Bureau Frost Travis, Travis-Hyde Gregor Brous, Collegetown Bagels Gary Ferguson, Downtown Ithaca Alliance Joel Harlan, Town of Newfield, shared comments about Cornell University’s contribution to the local economy. Julie Schroeder, Homespun Boutique, shared her concerns regarding the impact that downtown construction, especially the Commons Renovation Project, has had on surrounding businesses and how that impact will be compounded if these proposed hotel projects are approved. She said the loss of the parking lot between the Carey Building and CSMA will be problematic and asked Council to reconsider this project and send it back for serious design changes. Max Weisbrod, City of Ithaca, voiced his concern about tenant rights and the language that landlords are using in their leases that restricts access to jury trials. Fay Gougakis, City of Ithaca, requested a public meeting with community leaders and law enforcement officials to discuss safety and quality of life issues. She further commented that the proposed structures for the hotels are too large for downtown noting that the loss of parking and the amount of construction have had a significant negative impact on the businesses. She further requested that all elected officials have local contact numbers. Sally Van Orman, City of Ithaca, thanked Mayor Myrick for arranging a meeting with the Chief of Staff to explain the City’s tax structure. She noted that the Ithaca City School District’s tax increases make it difficult for people living on fixed incomes to keep their homes. PRIVILEGE OF THE FLOOR – COMMON COUNCIL AND THE MAYOR: Alderperson McGonigal raised questions about the temporary relocation of the TCAT bus stop from Aurora Street to the 300 block of East State/MLK St due to the hotel construction. Mayor Myrick responded to comments made regarding the loss of parking and noted that there is plenty of on and off street parking available. He also detailed what the hotel would do to help local businesses. Alderperson McCollister stated that parking/traffic management plans should be created in development zones prior to construction. Alderperson Brock acknowledged the distress expressed by the owner of Home Spun regarding the amount of construction in the area and suggested that staff look to other communities for strategies to assist local businesses. Alderperson Kerslick voiced his concern regarding the use of popular catch words by developers such as “local, artisanal, green, sustainable” and the difficulty in finding the substance behind them. Alderperson Martell echoed the comments made by Alderpersons McCollister and Kerslick and stressed the need for signage and traffic/parking plans. November 5, 2014 3 Alderperson Clairborne thanked the Youth Council for their outstanding work. He further addressed comments made about the availability of parking in the 300 block of E. State / MLK Street; affordable housing issues; and the gentrification of city neighborhoods over the past 15 years. Mayor Myrick stated that the 120 room hotel would bring in approximately $1 million annually to the City and much more to the neighboring businesses. He noted that the loss of a small parking lot does not equal the value and benefit of the project. He further detailed all of the recent housing additions in the downtown area noting that traffic congestion is reversed by increasing housing downtown. Alderperson Smith noted that these types of projects ease the tax burden for residents. Further discussion followed on property assessment abatements. CONSENT AGENDA ITEMS: 8.1 Planning, Building, Zoning & Economic Development – Acceptance of Public Art Commission’s Another 21 Boxes Project Grant - Resolution By Alderperson McCollister: Seconded by Alderperson Mohlenhoff WHEREAS, the City’s Public Art Commission was awarded a grant through the Community Arts Partnership’s Grants for Arts Program to fund Another 21 Boxes: An Electrical Box Mural Project, and WHEREAS, the grant funds will be used for artist stipends, supplies, and maps of the project; now, therefore, be it RESOLVED, That Common Council hereby accepts the Grants for Arts Program from the Community Arts Partnership in the amount of $2,510 and amends the 2014 Department of Planning, Building, Zoning, & Economic Development authorized budget as follows: Increase Revenue Account: A8020-3989 Planning State Aid $2,510 Home & Community Increase Appropriations Account: A8020-5435 Planning Contracts $2,510 Carried Unanimously 8.2 Human Resources - Approval of 2014-2015 Civil Service Agreement with the Ithaca City School District - Resolution By Alderperson McCollister: Seconded by Alderperson Mohlenhoff RESOLVED, That the Mayor and City Controller be authorized and directed to execute an agreement between the City of Ithaca and the Ithaca City School District for performance by the City for services in connection with Civil Service matters, for the period July 1, 2014, to June 30, 2015, in an amount of $66,170, payable to the City of Ithaca on or before December 1, 2014. Carried Unanimously PLANNING AND ECONOMIC DEVELOPMENT COMMITTEE: No items were submitted for the agenda CITY ADMINISTRATION COMMITTEE: 10.1 City Attorney – A Local Law to Override The Tax Levy Limit Established in General Municipal Law By Alderperson Mohlenhoff: Seconded by Alderperson Kerslick Local Law 2014 – BE IT ENACTED by Common Council of the City of Ithaca as follows: November 5, 2014 4 Section 1. Legislative Intent It is the intent of this local law to allow the City of Ithaca to adopt a budget for the fiscal year commencing January 1, 2015, that requires a real property tax levy in excess of the “tax levy limit” as defined by General Municipal law §3-c. Section 2. Authority This local law is adopted pursuant to subdivision 5 of General Municipal Law §3-c, which expressly authorizes a local government’s governing body to override the property tax cap for the coming fiscal year by the adoption of a local law approved by a vote of sixty percent (60%) of said governing body. Section 3. Tax Levy Limit Override The Common Council of the City of Ithaca, County of Tompkins, New York, is hereby authorized to adopt a budget for the fiscal year commencing January 1, 2015, that requires a real property tax levy in excess of the amount otherwise prescribed in General Municipal Law §3-c. Section 4. Severability If court determines that any clause, sentence, paragraph, subdivision, or part of this local law or application thereof to any person, firm or corporation, or circumstance is invalid or unconstitutional, the court’s order or judgment shall not affect, impair or invalidate the remainder of this local law, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, or part of this local law or in its application to the person, individual, firm or corporation or circumstance, directly involved in the controversy in which such judgment or order shall be rendered. Section 5. Effective Date This local law shall take effect immediately upon filing with the Secretary of State. Alderperson Brock - Aye Alderperson McGonigal - Aye Alderperson Clairborne - Aye Alderperson Murtagh - Aye Alderperson McCollister - Aye Alderperson Fleming - Absent Alderperson Smith - Aye Alderperson Kerlsick - Aye Alderperson Martell - Aye Alderperson Mohlenhoff - Aye Carried Unanimously 10.2 City Controller’s Report City Controller Thayer reported on the following 2014 activity:  Sales Tax Revenue - $13.1 million was budgeted; current collections are running 2.9% ahead of 2013 figures but are subject to change  Overtime Costs - $946,000 was budgeted - $915,000 has been spent to date; $984,000 was spent in 2013.  Building Permit Revenue - $700,000 was budgeted - $694,000 has been collected to date  Parking Revenue - $2.4 million budgeted - $1.8 million collected  Mortgage Tax – the $360,000 budgeted was surpassed by $94,000  Flooding/Snow activity – expenses are close to the money budgeted from the fund balance INDIVIDUAL MEMBER – FILED RESOLUTIONS: 13.1 Alderperson Mohlenhoff - Transfer of Property at 320-324 E. Martin Luther King Jr./E. State Street to the Ithaca Urban Renewal Agency (IURA) to Undertake an Urban Renewal Project for Development of a 120-room Hotel - Resolution A. Declaration of Lead Agency for Environmental Review – Resolution By Alderperson Mohlenhoff: Seconded by Alderperson Kerslick WHEREAS, the Common Council of the City of Ithaca is considering a proposal to transfer ownership of property located at 320-324 E. Martin Luther King Jr./E. State Street to the Ithaca Urban Renewal Agency (IURA) to facilitate a urban renewal project to construct a 120-room hotel at the 300 block of E. Martin Luther King Jr./E. State Street, and November 5, 2014 5 WHEREAS, State Law and Section 176-6 of the City Code require that a lead agency be established for the purpose of conducting environmental review of projects in accordance with local and state environmental law, and WHEREAS, State Law specifies that for actions governed by local environmental review, the lead agency shall be that local agency which has primary responsibility for approving and funding or carrying out the action, and WHEREAS, the proposed transfer of less than 2.5 acres of land is an “Unlisted” action pursuant to the City Environmental Quality Review Ordinance (“CEQR”), which requires environmental review under CEQR; now, therefore, be it RESOLVED, That Common Council of the City of Ithaca does hereby declare itself Lead Agency for the environmental review of the transfer of property located at 320-324 E. Martin Luther King Jr./E. State Street (tax parcel #69.-1-6.2) to the IURA for the purpose of structuring a proposed purchase and sale agreement to undertake an urban renewal project to construct a 120-room hotel, which agreement shall be subject to approval by Common Council. Carried Unanimously B. Determination of Environmental Significance - Resolution By Alderperson Mohlenhoff: Seconded by Alderperson Kerslick WHEREAS, the Common Council of the City of Ithaca is considering a proposal to transfer ownership of property located at 320-324 E. Martin Luther King Jr./E. State Street (tax parcel #69.-1-6.2) to the Ithaca Urban Renewal Agency (IURA) for the purpose of structuring a proposed purchase and sale agreement to undertake an urban renewal project to construct a 120-room hotel, and WHEREAS, the proposed hotel project will undergo separate environmental review as part of the site plan review process, and WHEREAS, the proposed hotel project is not physically feasible without acquisition of City-owned land, and WHEREAS, it is not reasonable or practicable to expect the Preferred Developer to develop detailed project plans and analyses of potentially significant adverse impacts of the proposed hotel project prior to knowledge that the City-owned portion of the project site will potentially be made available for the hotel project through the IURA, and WHEREAS, as part of the site plan review process, the Planning and Development Board regularly conducts rigorous and thorough environmental review of all aspects of the proposed development project that comes before it, and WHEREAS, pursuant to §176-6(F)(1)(b) of the City Environmental Quality Review Ordinance, the re-establishment of a Lead Agency may occur “upon failure of the Lead Agency’s basis of jurisdiction,” so that the Planning and Development Board may subsequently assume the role of Lead Agency for the environmental review for the site plan review of the proposed hotel project, and WHEREAS, the proposed action for transfer of city-owned property of less than 2.5 acres is an “Unlisted Action” under the City Environmental Quality Review Ordinance, and WHEREAS, appropriate environmental review has been conducted including the preparation of a Short Environmental Assessment Form (SEAF), and WHEREAS, the Common Council of the City of Ithaca, acting as Lead Agency, has reviewed the SEAF prepared by staff; now, therefore, be it RESOLVED, That this Common Council, as lead agency in this matter, hereby determines that circumstances warrant a segmented review of this property transfer from other stages of the proposed hotel project and that subsequent environmental November 5, 2014 6 review of the proposed hotel project during the required site plan review process will be no less protective of the environment, and be it further RESOLVED, That the Common Council, as Lead Agency in this matter, hereby adopts as its own, the findings and conclusions more fully set forth on the Short Environmental Assessment Form, and be it further RESOLVED, That this Common Council, as Lead Agency in this matter, hereby determines that the proposed action at issue will not have significant effect on the environment, and that further environmental review is unnecessary, and be it further RESOLVED, That this resolution constitutes notice of this negative declaration and that the City Clerk is hereby directed to file a copy of the same, together with any attachments, in the City Clerk’s Office, and forward the same to any other parties as required by law. Carried Unanimously C. Transfer of Property - Resolution By Alderperson Mohlenhoff: Seconded by Alderperson Kerslick WHEREAS, Lighthouse Hotels LLC proposes construction of a $19 million, six-story, 120-room Hampton Inn & Suites hotel behind the Carey Building on parcels currently used for public and private surface parking at the 300 block of E. Martin Luther King Jr./E. State Street (Urban Renewal Project), and WHEREAS, the project site includes the 32-space municipal parking lot at 320-324 E. Martin Luther King Jr./E. State Street, which is partially owned by the City and partially owned by the Ithaca Urban Renewal Agency (IURA), and WHEREAS, §507 of General Municipal Law authorizes the IURA to negotiate sale of public land with a Qualified and Eligible Sponsor (“Preferred Developer”) to undertake an urban renewal project, which proposed sale and development agreement is subject to public hearing and approval by the Common Council, and WHEREAS, the primary objective of the Urban Renewal Plan is to improve the economic, social and physical characteristics of the project neighborhood, and WHEREAS, City policy requires the Board of Public Works to declare City-owned property surplus for public works purposes prior to any transfer of City-owned property, and WHEREAS, on June 26, 2014, the IURA designated Lighthouse Hotels LLC as the Preferred Developer to undertake the Urban Renewal Project, and authorizing potential acquisition of IURA and City-owned parcels of the project site through negotiations, subject to Common Council approval, and WHEREAS, on August 18, 2014, The Board of Public Works determined that the City- owned portion of the municipal parking lot located at 320-324 E. Martin Luther King Jr./E. State Street (tax parcel #69.-1-6.2) is not needed for City of Ithaca public works purposes, and WHEREAS, upon Common Council authorization to transfer the approximately 8,300 square foot City-owned portion of the municipal parking lot to the IURA, the IURA intends to enter into a 90-day exclusive negotiating agreement with the Preferred Developer to structure a proposed purchase and sale agreement to convey tax parcels #69.-1-3 and #69.-1-6.2 to the Preferred Developer at no less than estimated fair market value and establish post-closing requirements on the Urban Renewal Project including but not limited to urban design, job creation and housekeeping department employee wage levels, and November 5, 2014 7 WHEREAS, the IURA has established the following minimum standards for the project: A. Urban Design: prohibition of the following exterior building façade materials unless the Planning and Development Board finds such materials enhance the design of the building:  EIFS (Exterior Insulation & Finishing System), such as “Dryvit” or other stucco- like finishes  Concrete masonry units, including split-face cement block; B. Job Creation: creation of at least 33 full-time equivalent jobs; C. Wages/Salaries:  Living Wage Positions - Creation of a minimum of 11 full-time employment positions paid at least a “living wage” (currently $12.62/hour with employer health insurance benefits)  Housekeeping Staff - each employee in the housekeeping department to be paid at least $9.75/hour (equivalent to 120% of state minimum wage); and WHEREAS, the IURA has identified the following additional issues to be included in negotiations with the Preferred Developer:  Accommodations to mitigate loss of public parking to adjacent enterprises;  Participation in IURA-sponsored job training and job placement programs, such as the Hospitality Employment Training Program;  The appropriate mechanism to ensure that the enhanced wages to be paid to all employees in the housekeeping department is maintained at a dynamic level in the future (e.g., indexed to 120% of the state minimum wage);  Purchase price (fair market value), including non-refundable deposit;  Transfer of property contingent upon site plan approval and issuance of a building permit; now, therefore, be it RESOLVED, That the Common Council does hereby authorize transfer of real property located at 320-324 E. Martin Luther King Jr./E. State Street (tax parcel #69.-1-6.2) to the IURA for the purpose of structuring a proposed purchase and sale agreement to undertake the in-fill downtown hotel urban renewal project at the 300 Block of E. Martin Luther King Jr./E. State Street, which agreement shall be subject to approval by Common Council following a public hearing, and be it further RESOLVED, That net proceeds from sale of City-owned land to the Preferred Developer shall be paid to the City, and be it further RESOLVED, That the Mayor, upon review by the City Attorney, is hereby authorized to implement this resolution, including execution of any and all instruments necessary to transfer title to the IURA and/or execute a leaseback agreement to allow continued City control of the municipal parking lot until conveyance of the project site to the Preferred Developer. Amending Resolution: By Alderperson Smith: Seconded by Alderperson Brock RESOLVED, That the first Whereas clause be amended to read as follows: “WHEREAS, Lighthouse Hotels LLC proposes construction of a $19 million, seven- story, 120-room Canopy by Hilton hotel behind the Carey Building on parcels currently used for public and private surface parking at the 300 block of E. Martin Luther King Jr./E. State Street (Urban Renewal Project), and”, and be it further RESOLVED, That the bullet points under subsection (C) Wages/Salaries, of the 9th Whereas clause be amended to read as follows:  “Living Wage Positions - Creation of a minimum of 16 full-time employment positions paid at least a “living wage” (currently $12.62/hour with employer health insurance benefits) November 5, 2014 8  Housekeeping Staff - each employee in the housekeeping department to be paid at least 120% of state minimum wage; and” Carried Unanimously Discussion followed on the floor regarding the wages and salaries of the hotel employees. Community Development Director Bohn reviewed the hotel business plan, staff and project costs. He stated that the permanent jobs are above the State average; housekeeping staff will be making an average wage for the Southern Tier which is better than the industry at large. Alderperson Brock noted the impending increases to New York State’s minimum wage in January. Alderperson McCollister commented on the spectrum of benefits being offered to employees. Main Motion as Amended: A vote on the Main Motion as Amended resulted as follows: Carried Unanimously MAYOR’S APPOINTMENTS: 14.1 Reappointment to Ithaca Housing Authority Board – Resolution By Alderperson Clairborne: Seconded by Alderperson Smith RESOLVED, That Valerie Wilson be reappointed to the Ithaca Housing Authority Board with a term to expire October 17, 2019. Carried Unanimously REPORTS OF COMMON COUNCIL LIAISONS: Ithaca Landmarks Preservation Commission Alderperson McCollister reported that the new owner of the Seneca Street property is undergoing Site Plan review for a four unit building. She further reported that there is a vacancy on the ILPC that needs to be filled. TCAT Board Alderperson Murtagh reported that Cornell University will be increasing their funding to TCAT. Tompkins County Council of Governments (TCCOG) Alderperson Clairborne reported that TCCOG is facilitating a two-part training session on how to handle “heated meetings”. He noted that Cornell’s increased contribution to TCAT is encouraging; however discussions need to continue regarding contributions from other municipalities. Workforce Diversity Advisory Committee Alderperson Brock reported that the WDAC has created a working group to create a community outreach program designed to improve community relations. Parks Commission Alderperson Brock reported that the Parks Commission is discussing the proposed lease for the Cascadilla Boat Club, noting that there should be public oversight of the building and the program. MINUTES FROM PREVIOUS MEETINGS: 18.1 Approval of the September 3, 2014 and October 1, 2014 Common Council Meeting Minutes – Resolution By Alderperson McCollister: Seconded by Alderperson Smith RESOLVED, That the minutes of the September 3, 2014 and October 1, 2014 Common Council meetings be approved with noted corrections. Carried Unanimously ADJOURNMENT: On a motion the meeting adjourned at 8:35 p.m. ______________________________ _______________________________ Julie Conley Holcomb, CMC Svante L. Myrick City Clerk Mayor