The URL can be used to link to this page

Home My WebLink AboutMN-IURA-2015-04-23Approved: 6/25/15 108 East Green Street Ithaca Urban Renewal Agency Ithaca, New York 14850 (607) 274-6559 (607) 274-6558 (fax) ax) MINUTESMINUTES ITHACA URBAN RENEWAL AGENCY Common Council Chambers, City Hall 8:30 A.M., Thursday, April 23, 2015 Members: Svante Myrick, Eric Rosario, Karl Graham, Tracy Farrell, Ellen McCollister (Common Council Liaison) Excused: Chris Proulx Staff: Nels Bohn, JoAnn Cornish, Lynn Truame, Charles Pyott Public: Joseph Bowes, Ithaca Neighborhood Housing Services (INHS) Susan Cummings, IURA Governance Committee Charles Guttman, Community Housing of Ithaca (CHI) I. Call to Order Myrick called the meeting to order at 8:45 A.M. II. Agenda Additions/Deletions None. III. Public Comment (3‐minute maximum per person) None. IV. Review of Draft Meeting Minutes: March 26, 2015 Rosario moved, seconded by Graham, to approve the March 26, 2015 meeting minutes, with no modifications. Carried Unanimously 3‐0 V. Audit Committee A. Appointment of Audit Committee Chairperson Myrick moved, seconded by Graham: Appoint IURA Audit Committee Chairperson WHEREAS, the IURA By‐laws provide that the committee membership shall elect its own committee Vice‐Chairperson and nominate a member to serve as Chairperson, and IURA Minutes April 23, 2015 Page 2 of 8 WHEREAS, officers of each committee serve a one‐year term, but continue to hold office until their successor is selected or appointed, and WHEREAS, at their April 23, 2015 meeting, the IURA Audit Committee elected Karl Graham as Vice‐Chairperson, and WHEREAS, at their April 23, 2015 meeting, the IURA Audit Committee nominated Eric Rosario as Committee Chairperson; now, therefore be it RESOLVED, that the IURA hereby appoints Eric Rosario as Chairperson of the IURA Audit Committee. Carried Unanimously 3‐0 B. Approve Audited 2014 IURA Financial Statements Myrick moved, seconded by Rosario: Approve Audited 2014 IURA Financial Statements 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 separate from the City to have its finances audited within 90 days of the end of its fiscal year; WHEREAS, at their April 10, 2015 meeting, the IURA Governance Committee reviewed this matter and recommends the following; now, therefore, be it RESOLVED, that the Financial Statements of the Ithaca Urban Renewal Agency for the period January 1, 2014, through December 31, 2014, prepared by the accounting firm Ciaschi, Dietershagen, Little, Mickelson & Company, LLP, are hereby approved. Carried Unanimously 3‐0 C. Committee Chairperson Report None. IURA Minutes April 23, 2015 Page 3 of 8 VI. Neighborhood Investment Committee (NIC) A. HUD Entitlement Grant: Request from Community Housing of Ithaca, Inc. (CHI) to Assign Affordable Housing Funding Agreements & Mortgages Covering 401 & 403 Adams Street and 636, 638, & 640 Spencer Road Graham noted the IURA originally made the funding available to CHI for 5 duplex properties, but CHI would now like to legally re‐assign the mortgages & affordability obligations for the properties to Stuart Staniford, or an LLC controlled by Mr. Staniford. Mr. Staniford’s LLC controls properties in Ithaca and has a staff that CHI is confident would capably manage the properties. IURA staff will work to ensure Mr. Staniford and his staff are aware of all the reporting requirements. Bohn elaborated that when NIC discussed the issue it wanted to ensure the LLC managing the properties would in fact be controlled by Mr. Staniford. Rosario moved, seconded by Graham: Assignment of Mortgages: 401 & 403 Adams Street and 636, 638, & 640 Spencer Road WHEREAS, in 2005, 2006, and 2009, Community Housing of Ithaca (CHI) received funding from the Ithaca Urban Renewal Agency to develop certain affordable housing units to be located in the city of Ithaca, NY, as follows: • 2005 HUD HOME Entitlement Program, Project #4, Adams Street Housing, 401 and 403 Adams Street o Amount: $180,000 o Interest rate: 0% o Term & repayment: twenty‐one (21) year term deferred loan with no principal or interest payments due, provided borrower remains in compliance with terms and conditions of loan o Collateral: 2nd lien mortgage on subject property • 2006 HUD HOME Entitlement Program, Project #2, Spencer Road Affordable Housing, 634 and 636 Spencer Road o Amount: $250,000 o Interest rate: 0% o Term & repayment: minimum twenty (20) year deferred loan with no principal or interest payments due, provided borrower remains in compliance with terms and conditions of loan o Collateral: 2nd lien mortgage on subject property • 2009 CDBG‐R, American Recovery and Reinvestment Act, Spencer Road Affordable Housing Project, phase II, 638 Spencer Road o Amount: $196,868.70 o Interest rate: 0% IURA Minutes April 23, 2015 Page 4 of 8 o Term & repayment: fifteen (15) year term deferred loan with no principal or interest payments due, provided borrower remains in compliance with terms and conditions of loan o Collateral: 2nd lien mortgage on subject property, and WHEREAS, pursuant to Section 6.02 of the loan agreements for each of these projects, CHI has requested approval to assign its rights, interests, and obligations under these loans, including its obligations with respect to low‐ and moderate‐income benefit, to Mr. Stuart Staniford or an LLC controlled by Mr. Staniford, and WHEREAS, this request to assign was discussed at the April meeting of the IURA Neighborhood Investment Committee, which recommends the following action; now, therefore, be it RESOLVED, the IURA hereby approves the requested assignment, subject to the terms and requirements of Section 6.02 of the loan agreements, with the following conditions: • IURA approval of customary background and credit information regarding the prospective assignee • Agreement by the assignee to assume all of CHI’s obligations under the Agreement including, but not limited to, the obligations with respect to low‐ and moderate‐income housing, and be it further RESOLVED, that the IURA Chairperson, upon the advice of the IURA Attorney, is hereby authorized to execute all necessary and appropriate documents to implement this resolution. Carried Unanimously 3‐0 B. NHI Bond Program: INHS Request to Increase Development Subsidy for 203 Third Street Project Graham reported the IURA previously committed $49,000 in Neighborhood Housing Initiative Bond Program (NHI) funding to support the project; however, when project was placed up for bid, the bid amounts were considerably more than anticipated. The applicant is now requesting a $50,000 increase. Truame added the applicant initially requested $60,000, but the committee discussed the proposal and approved $50,000. Rosario moved, seconded by Graham: NHI Bond Program Assistance to INHS for 203 Third Street Project WHEREAS, on September 5, 2014, Ithaca Neighborhood Housing Services, Inc. (INHS) received a commitment of up to $49,417 in Neighborhood Housing Initiative Bond Program (NHI) funds from the Ithaca Urban Renewal Agency for the construction of a single‐family Community Housing Trust home at 203 Third Street, Ithaca, NY, (the Project) and IURA Minutes April 23, 2015 Page 5 of 8 WHEREAS, since the time of that commitment, certain changes to the project have occurred, namely: • The receipt of three qualified bids for construction of the project, each of which exceeds the amount budgeted for construction; and • An increase in the total project budget from $210,752 to $274,052, as detailed on the attached line‐item budget comparison, and WHEREAS, as a result of these cost increases, INHS has requested that the IURA increase its subsidy to the project from the original amount of $49,417, to $109,417; and WHEREAS, in all other respects the project remains unchanged since the IURA committed the requested financial assistance on September 5, 2014; and WHEREAS, the NHI source currently has an available balance of funds totaling $252,048; and WHEREAS, the IURA wishes to support the 203 Third Street project to the extent necessary, while minimizing the NHI subsidy to the extent possible; and WHEREAS, INHS’ request for additional NHI funding was discussed at the April meeting of the IURA Neighborhood Investment Committee, which recommends the following action; now therefore be it RESOLVED, the IURA hereby approves an increase of $50,000 in NHI funding to INHS for the 203 Third Street project to an amount not to exceed $99,417, and be it further RESOLVED, that the IURA Chairperson, upon the advice of the IURA Attorney, is hereby authorized to execute all necessary and appropriate documents to implement this resolution. Carried Unanimously 3‐0 C. Committee Chairperson Report Truame noted that the NIC discussed an idea for a pilot BJM housing stability program intended to reduce student turn‐over and improve educational outcomes for children in families who have a high level of housing instability. Potential partners include the Ithaca City School District, Tompkins Community Action, Ithaca Housing Authority, Ithaca Neighborhood Housing Services and others. (Farrell arrived at 9:05 a.m.) IURA Minutes April 23, 2015 Page 6 of 8 VII. Other New/Old Business A. Community Lending: Request from Unity Inn, LLC, DBA Argos Inn, for Release of Certain Collateral in Consideration of Pay Down of Principal Balance (CD‐RLF #29) Bohn reported the Argos Inn is requesting to be released from its obligation associated with a piece of collateral: a California property for which there is a prospective sale. The EDC reviewed the request and recommended granting it ― conditioned on the payment of $50,000 to pay down the IURA loan. (The IURA loan is also secured against other collateral: the Brookton Market and a 2006 Toyota Tacoma truck, as well as a personal guarantee.) The EDC strongly recommends requiring the $50,000 payment. Graham asked why the $50,000 would be held in escrow. Bohn replied, since the proceeds will be derived from property sale is in California, IURA staff wanted to make sure the IURA gets paid its $50,000; however, some of the proceeds may come from a source other than the sale, so the escrow clause allows the simultaneous exchange and release of funds. The EDC wanted to make sure it is a very controlled transaction. Farrell moved, seconded by Graham: CD‐RLF #29 ― Release Certain Collateral Securing Loan to Unity Inn, LLC for Argos Inn Project WHEREAS, Unity Inn, LLC, requests release of the assignment of leases and rents on residential rental property on Boonville Road, Ukiah, California in consideration of a payment to reduce the outstanding principal balance on the loan, to facilitate sale of the real property, and WHEREAS, on September 21, 2010, the IURA approved a loan of $100,000 to Unity Inn LLC for a $1,669,000 project to acquire and renovate the historic McCormick‐Cowdry house located at 408 East State/MLK Jr. Street to the 11‐room Argos Inn with a public bar/lounge, and WHEREAS, the outstanding principal balance on the loan is $91,400.21 as of 3/31/15, and WHEREAS, the IURA loan is secured by the following: • 2nd mortgage on the Brookton Market property at 491 Brooktondale Rd., Caroline, NY (tax map #11.‐1‐14), behind a 1st mortgage held by M&T Bank; • Assignment of leases and rents on residential rental property located on Boonville Road, Ukiah, California; • 1st security lien on 2006 Toyota Tacoma truck; • Personal guarantee of Avi H. Smith, individually, and WHEREAS, a recent appraisal of the Brookton Market property established its fair market value at $295,000 and the first lien mortgage amount is approximately $130,000 according to the borrower, and IURA Minutes April 23, 2015 Page 7 of 8 WHEREAS, the blue book value of the 2006 Toyota Tacoma truck is approximately $13,000, and WHEREAS, the Economic Development Committee members were polled on this matter by email and unanimously recommended the following; now, therefore be it RESOLVED, that the IURA hereby authorizes the IURA Chairperson, subject to review by IURA legal counsel, to execute a release of the assignment of leases and rents on property located on Boonville Road, Ukiah, California, in consideration of payment of $50,000 either from the proceeds of the sale, or Avi Smith or a combination of the two, and be it further RESOLVED, that such release, be held in escrow until full IURA payment is received, and be it further RESOLVED, that the net proceeds received by the IURA shall be used to reduce the outstanding principal balance on the Unity Inn LLC loan after all out‐of‐pocket costs are deducted. Carried Unanimously 4‐0 B. Review of IURA Financials: March 2015 Grants Summary Bohn noted the projects listed in red are behind schedule but are all moving forward toward completion. All other projects are advancing on schedule. Bohn noted the three highlighted loans are delinquent on their payments. He has been in contact with each borrower and each has committed to make payments to bring the loans current. . Loans Summary The Argos Inn is listed as delinquent for the first time in 7 months. IURA staff has followed up with the two other delinquent borrowers who have committed to make loan payments. C. IURA Chairperson Report None. D. Common Council Liaison Report McCollister reported that the Cascadilla Boat Club and the Cascadilla Boathouse have been an ongoing source of contention over the past few months. The City Administration Committee finally voted to forward a license agreement that ensures Cascadilla Boat Club activities at Stewart Park will be accessible to the public, to the full Common Council. She anticipates it will move forward. IURA Minutes April 23, 2015 Page 8 of 8 E. Staff Report Bohn reported the New York State Consolidated Funding Application process launches on May 1, 2015, with a deadline of July 31, 2015. In addition, there is an opportunity for the region to submit an application to the Upstate Revitalization Initiative. Ithaca is part of Southern Tier Regional Economic Development Council. There will be three winning regions each awarded $500,000,000 over five years. The difficulty is that the program requires 80% private funding vs. 20% in state funding. Bohn also reported on a recent meeting of Ithaca’s West End businesses and community members, who wanted to organize around perceived quality‐of‐life concerns associated with the high degree of activity at the Ithaca Rescue Mission Alliance’s Friendship Center and Emergency Shelter. Some community members are concerned the public may not feel comfortable going to that area of town, because of loitering, panhandling, and other activities. It ended up being a reasonably productive exchange of ideas between various groups; and the Rescue Mission pledged to respond to the concerns raised. VIII. Adjournment The meeting was adjourned by consensus at 9:35 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.