HomeMy WebLinkAboutMN-IURAGOV-2010-03-19Ithaca
Urban
Renewal
Agency
Approved April 16, 2010
108 East Green Street
Ithaca, New York 14850
(607) 274-6559
(607) 274-6558 (fax) )
MINUTES MINUTES
IURA Governance Committee IURA Governance Committee
March 19, 2010, 8:30 AM March 19, 2010, 8:30 AM
Present: Sue Cummings, Carolyn Peterson, Kathy Schlather, David Whitmore Present: Sue Cummings, Carolyn Peterson, Kathy Schlather, David Whitmore
Staff: Nels Bohn, JoAnn Cornish (8:45), Sue Kittel, Alice Vargo Staff: Nels Bohn, JoAnn Cornish (8:45), Sue Kittel, Alice Vargo
I. Call to Order I. Call to Order
The meeting was called to order at 8:37 A.M. by Chairperson Cummings. The meeting was called to order at 8:37 A.M. by Chairperson Cummings.
II. Additions to, or Deletions from, the Agenda II. Additions to, or Deletions from, the Agenda
III. Public Comment (3 minute maximum per person) - None III. Public Comment (3 minute maximum per person) - None
IV. Approval of Minutes from meeting of February 19, 2010 IV. Approval of Minutes from meeting of February 19, 2010
Moved by Peterson, second by Cummings, to approve the February 19, 2010 minutes
as corrected. Carried Unanimously.
Moved by Peterson, second by Cummings, to approve the February 19, 2010 minutes
as corrected. Carried Unanimously.
V. New Business V. New Business
A. Marina Realty of Ithaca, Inc. (MRI) request to prepay $700,000 Section 108 loan A. Marina Realty of Ithaca, Inc. (MRI) request to prepay $700,000 Section 108 loan
Bohn stated that MRI would like to prepay their Section 108 loan, so they could refinance
the project at a lower interest. MRI has successfully completed the restaurant and marina
project and is current on their loan payments. MRI is willing to pay the outstanding
principal balance together with accrued and unpaid interest due through the first date of
August 1, 2011 which is the date they are actually eligible to make repayment.
Bohn stated that MRI would like to prepay their Section 108 loan, so they could refinance
the project at a lower interest. MRI has successfully completed the restaurant and marina
project and is current on their loan payments. MRI is willing to pay the outstanding
principal balance together with accrued and unpaid interest due through the first date of
August 1, 2011 which is the date they are actually eligible to make repayment.
Motion by Schlather, seconded by Whitmore: Motion by Schlather, seconded by Whitmore:
Request from Marina Realty of Ithaca, LLC for Authorization to Prepay Canal
Corridor Initiative Loan
Request from Marina Realty of Ithaca, LLC for Authorization to Prepay Canal
Corridor Initiative Loan
Whereas, Marina Realty of Ithaca, LLC (MRI) requests permission to pre-pay its
$800,000 IURA loan so it can refinance project debt, and
Whereas, Marina Realty of Ithaca, LLC (MRI) requests permission to pre-pay its
$800,000 IURA loan so it can refinance project debt, and
Whereas, through the 1997 Canal Corridor Initiative program sponsored by HUD, the
City of Ithaca facilitated a loan of $800,000 through the Section 108 loan program, which
proceeds were made available to MRI for acquisition and construction and opening of
the Boatyard restaurant and marina located at 419-525 Taughannock Blvd., and
Whereas, through the 1997 Canal Corridor Initiative program sponsored by HUD, the
City of Ithaca facilitated a loan of $800,000 through the Section 108 loan program, which
proceeds were made available to MRI for acquisition and construction and opening of
the Boatyard restaurant and marina located at 419-525 Taughannock Blvd., and
IURA Governance Committee
3/19/10
Page 2 of 5
tured loan agreements to
ass-through financial and collateral obligations to MRI, and
eds received from the U.S. Department of Housing & Urban Development (HUD),
nd
e 12, 2000, loan agreement requiring MRI to pay all
ection 108 loan obligations, and
ule of Section 108 bi-
nnual interest and annual principal payments through 2019, and
restaurant and marina project and is current
n their loan payments to the IURA, and
hereas, the principal balance on the Section 108 loan is $560,000, and
prepayment subject to the lender’s right
prepay the Section 108 loan agreement, and
e Section 108 loan agreement authorizes prepayment only after August 1,
011, and
erest due through the first date for which prepayment is eligible
ugust 1, 2011), and
ny reasonable additional fees associated with
repayment of the Section 108 loan, and
r at their March 19,
010 meeting and recommended the following; now, therefore, be it
idor
I shall
penses associated with
animously
Whereas, the City of Ithaca and IURA played a pass-through role between HUD and
MRI to facilitate a redevelopment project at Inlet Island whereby the City/IURA borrowed
funds from HUD and loaned these proceeds to MRI, and struc
p
Whereas, the MRI loan repayments support IURA repayment of the Section 108 Loan
proce
a
Whereas, the City executed a Section 108 loan agreement with HUD and provided loan
proceeds to MRI pursuant to a Jun
S
Whereas, MRI makes monthly repayments to the IURA into a Section 108 loan escrow
account such that the IURA has sufficient funds to meet the sched
a
Whereas, MRI successfully completed the
o
W
Whereas, the IURA/MRI loan agreement allows
to
Whereas, th
2
Whereas, MRI has agreed to pay the outstanding principal balance together with
accrued and unpaid int
(A
Whereas, MRI has further agreed to pay a
p
WHEREAS, the IURA Governance Committee considered this matte
2
RESOLVED, that the IURA hereby authorizes the Chairperson to sign any and all
documents authorizing MRI to prepay their June 12, 2000, $800,000 Canal Corr
Initiative loan and release collateral subject to authorization from HUD for such
prepayment and release of collateral, and further subject to the condition that MR
be responsible to pay any and all IURA out-of-pocket ex
prepayment of the MRI loan and the Section 108 loan.
Carried Un
IURA Governance Committee
3/19/10
Page 3 of 5
B.
f
nt
ed
vailable. Cummings noted that the new
osition will facilitate succession planning
otion by Schlather, seconded by Whitmore:
Authorize Job Search to Hire Additional Contracts Monitoring Staff
and
red additional annual funding and
ndertaken increased number of projects, and
ing performed by a Contracts
onitor working a 28-hour per week schedule, and
to meet IURA needs and recommends hiring additional contract monitoring
taff, and
with the future possibility of increased hours subject to available
sources; and
t
at 21 - 25 hours per week would earn between $22,828 and $28,367
nnually, and
een 21-25 hours per
eek would cost between $33,357 and $38,470 per year, and
initiatives” and projected revenues exceeding expenses by $32,787, thereby providing
Authorize job search for additional contracts monitoring staff
Bohn reported that IURA management team agrees that hiring additional contracts
monitoring staff is the best approach to meeting work load demands of the Agency
within budget constraints. He added that the Contracts Monitor is very supportive of
hiring additional contracts monitoring staff. Bohn described the proposed position’s job
description, duties and salary. The new position will report to the Deputy Director o
Community Development and will undertake the full range of contracts monitoring
activities on a co-equal basis with current senior contracts monitoring staff, according to
Bohn. He noted that the monitoring workload has been steadily increasing due to the
demands for more reporting to HUD and state agencies. Bohn reported that the curre
Contracts Monitor is working a four-day work week, at her request, and the propos
additional position will be part-time with 20-25 hours per week with a possibility of
increasing if sufficient resources become a
p
M
Whereas, the IURA’s workload for contract development, management, monitoring
reporting has increased as the Agency has secu
u
Whereas, contract monitoring duties are currently be
M
Whereas, the IURA management has reviewed the best use of these additional
resources
s
Whereas, IURA management recommends conducting a job search for a contracts
monitoring position as a part-time, permanent employee working approximately 25
hours per week,
re
Whereas, a newly created Contracts Monitor I job position earning a salary equivalen
to $21.82/hour
a
Whereas, including employee benefits, total employee compensation for a newly
created part-time Contracts Monitor I job position working betw
w
Whereas, the adopted IURA 2010 budget provided $20,000 for future “program
IURA Governance Committee
3/19/10
Page 4 of 5
sufficient resources to sustain hiring of part-time, permanent contracts monitor staffing,
and
Whereas, IURA management recommends establishing pay for a part-time contracts
monitor based on qualifications but advertise an expected range of $20 - $22 per hour
with benefits including health insurance, retirement, sick leave, vacation, & paid
holidays, and
Whereas, at their March 19, 2010 meeting, the Governance Committee discussed this
matter and recommended the following, now, therefore be it
Resolved, that the Executive Director, or her designee, is authorized to advertise, form
a search committee, and conduct interviews of candidates to fill a part-time, permanent
Contracts Monitor I position at a salary rate to be determined based on qualifications,
and be it further
Resolved, no final employment offer shall be made to an applicant prior to IURA
approval of the preferred candidate, the job description, the salary scale, and the
beginning salary.
Carried Unanimously
C. HUD FY 2008-09 Annual Community Assessment, CDBG
Members reviewed the HUD report and noted that the City is delinquent in its required
submission of the 2008 financial audit that was due by September 30, 2010. Bohn noted
that the HUD Entitlement funds are audited as part of City financial audit. The Assessment
report directs the City to submit the audit within 30 days, but the City Controller does not
expect the 2008 audit to be completed until June 2010, according to Bohn. Kittel noted that
the perennially late City audit increases the City’s risk score that is used to determine which
community will be monitored each year. She noted that a week-long monitoring requires
extensive staff resources for preparation, response and follow-up. Bohn reported that the
IURA is ready for audits 30 days after the close of the fiscal year, but the City has been
unable to maintain a timely schedule for completion of audits due to limited staff resources
and increasing audit requirements. Cummings requested staff to invite the City Controller to
the next meeting to discuss the City audit schedule. There was also a discussion of several
comments expressed in the Assessment. Staff indicated they would follow up with HUD
staff on these issues. Cummings directed staff to develop a written response and bring it
back to the committee for suggestions/approval.
D. Housing Fund - process discussion
Bohn stated that the Program Oversight Committee that governs the Housing Fund has
recommended the following projects be awarded funding assistance totaling $345,000:
INHS - Holly Creek Townhomes, Town of Ithaca
INHS/PathStone - Women’s Community Building (WCB), City of Ithaca
Tompkins Community Action - Magnolia House, City of Ithaca
IURA Governance Committee
3/19/10
Page 5 of 5
Whitmore left the meeting at 9:55 A.M.
Bohn reported that each funder, including the City of Ithaca, is now being consulted to
determine which recommended projects they are willing to fund. Schlather disclosed that
she is a member of the Project Advisory Committee that reviewed the funding applications
and developed the funding recommendation to the Program Oversight Committee.
Schlather reviewed her thoughts on the projects and answered questions. There was
general support expressed by Committee members that City contributions to the Housing
Fund should support housing projects located within the City and that the Holly Creek
Townhomes project located near the intersection of King Rd. and Rt. 96B lacked
pedestrian, bicycle and transit connections. As the Holly Creek Townhomes would require
reliance on the automobile for transportation, this project would not qualify as Smart Growth
does not satisfy a criteria established by the City for funding support. Cummings
recommended this issue be forwarded to IURA to develop a recommendation to the
Common Council. Committee members agreed.
Peterson left the meeting at 10:20 A.M., resulting in loss of a quorum. The formal
meeting was adjourned at 10:20 A.M.
END
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