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Economic Development Committee
Tuesday, January 12, 2010
Present: Doug Dylla, Martha Armstrong
Absent: Jennifer Tegan
Staff: Nels Bohn, Joann Cornish, Alice Vargo
Guests: Gary Ferguson, Bob Sweet, Phylissa DeSarno
A quorum of three EDC members was not present. As outside economic resources were in attendance, an
informal meeting was held to discuss strategic planning issue for economic development.
Dylla indicated that he would like to explore how best to strategically use IURA and City resources to achieve
economic development objectives. He noted that three local economic development professionals were
present to discuss this issue and provide responses to the following questions:
1. Trendline for Use of IURA Lending Products
The IURA has recently invested heavily in restaurants in the downtown core, is that the best strategy to
leverage continued investment?
2. Geographic Targeting
What can the IURA do to support more new businesses along West State Street, the West End, in the
industrial park, and other priority areas?
3. Business Type Targeting
Are there particular types of businesses that we want to target and support so that Ithaca gains a critical
mass and/or competitive advantage in these areas?
4. Non-Lending Business Support Services
What other ways can we support business development besides through lending products?
5. Performance Measures
What are key measures of economic development success for 2010 and beyond?
Phyllisa DeSarno, Deputy Director of Economic Development, City of Ithaca
DeSarno noted there has been a large trend for café’s and restaurants in the downtown area, which
can enhance vitality of the downtown. DeSarno said she works both to retain and recruit new
businesses downtown and throughout the entire community. She noted that she is central point of
contact for the City on economic development issues. She emphasized the need to continue
Ithaca
Urban
Renewal
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recruiting businesses for the Cherry Street Industrial Park and noted that there is a severe shortage of
property zoned and available business sites in the City. She encouraged extension of the Cherry
Street Industrial Park road to accommodate additional business development. Such an expansion
could assist those businesses that want to own their own building connected to water & sewer that are
not readily available in the region, according to DeSarno.
Robert Sweet, Director, National Development Council, Consultant to City
Sweet noted that he conducts business visitation program in conjunction with DeSarno to meet with
non-retail businesses in the community to assess their need for financing assistance and understand
issues they are facing. Sweet noted that his firm has played a significant role in structuring the
financing for the Seneca Place on the Commons and Cayuga Green project, delivering over $20
million in New Market Tax Credits to these projects. He noted that NDC is a Small Business
Administration 7A lender and he is actively seeking out local businesses in need of financing. He noted
that NDC seeks to structure large-scale real estate development and finance manufacturing and
knowledge based service companies, not restaurants and retailers. Sweet emphasized the need to set
clear economic development objectives and measure achievements against the objectives.
Gary Ferguson, Executive Director, Ithaca Downtown Alliance
Ferguson noted the IDA is currently in the process of revising its own strategic plan for the downtown
and distributed a hand-out summarizing his thoughts (attached). He confirmed the trend downtown
from retail to food & beverage businesses. He thought it was important to maintain a balance of
different uses downtown. He emphasized that locally-owned retail is very fragile and that many long-
time retail operators are reaching retirement and have not undertaken any transition planning. He
cited the Leather Express as a business that was profitable, but was not successful in identifying a
buyer, so it closed.
There was significant discussion on the concept of a matrix of economic development services and
analysis of where gaps in such services exist.
Ferguson thought that geographic targeting was an important tool for guiding growth to locations
desired by the community and that the IURA should continue to focus on the traditional urban core and
commercial areas of the City. He noted that the vast majority of new business investment occurs
outside the urban core and that public sector policies are needed to reverse this trend to maintain a
vital, urban community.
Nels Bohn, IURA
Bohn reported that IURA gap lending products targeted to the downtown core and wider community
are in demand and fill a financing need not addressed by others. Bohn noted that the economy is
dominated by the educational sector and the City should consider actions that help this sector thrive
and take advantage of competitive strengths this sector brings to the community. He indicated
assisting Cornell commercialize technologies provides a major opportunity for future wealth creation in
the community.
Dylla questioned if economic development services could be better coordinated and marketed so that
businesses and entrepreneurs could find the specific services they seek. Both Dylla and Armstrong
thought the economic development matrix concept introduced by Gary Ferguson could be a good tool
to evaluate the spectrum of services available and identify gaps in the services. There was discussion
of a virtual one-stop economic development resource where businesses can understand what services
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are available. Dylla indicated that he would like to continue this discussion when a full quorum is
present.
Loan Repayment & Accounts Receivable report
Bohn went over the IURA Financials and stated that almost all borrowers and tenants are current.
He noted that Diane’s Downtown Automotive had a staffing problem in the auto repair department
this summer, which made her payments inconsistent. This business indicated they plan to be back
on track going forward, according to Bohn.
Other
Bohn reported he met with the Executive Director of the Finger Lakes Wine Center and they are
making strong progress to meet IURA loan conditions and advancing the project, with a target
opening in late Spring.
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