HomeMy WebLinkAboutMN-IURA-2015-08-20Approved: 10/22/15
108 East Green Street
Ithaca, New York 14850
(607) 274-6559
(607) 274-6558 (fax)
MINUTES
ITHACA URBAN RENEWAL AGENCY
Common Council Chambers, City Hall
8:30 A.M., Thursday, August 20, 2015
Members: Svante Myrick, Eric Rosario, Tracy Farrell, Karl Graham, Chris Proulx, Ellen McCollister
(Common Council Liaison)
Excused: None
Staff: Nels Bohn, Lynn Truame, Charles Pyott
Public: None
Guests: None
I. Call to Order
Chair Myrick called the meeting to order at 8:33 A.M.
II. Agenda Additions/Deletions
None.
III. Public Comment (3‐minute maximum per person)
None.
IV. Review of Draft Meeting Minutes: June 25, 2015 & July 22, 2015
Farrell moved, seconded by Graham, to approve the June 25, 2015 and July 22, 2015 meeting
minutes with no modifications.
Carried Unanimously 5‐0
V. Neighborhood Investment Committee (NIC)
A. Analysis of Impediments to Fair Housing Choice Action Plan: HUD Entitlement Program
Graham remarked that the IURA discussed this agenda item at its last meeting. He asked if there
were any further questions or concerns. There were none.
Ithaca
Urban
Renewal
Agency
IURA Minutes
August 20, 2015
Page 2 of 14
Graham moved, seconded by Farrell:
Analysis of Impediments to Fair Housing Choice Action Plan ― HUD Entitlement Program
WHEREAS, in the Fall of 2003, the US Department of Housing and Urban Development (HUD)
notified the City that it qualified as an ‘Entitlement Community’ and that it would be receiving an
annual allocation of HUD funds through the Community Development Block Grant Program
(CDBG) and HOME Investment Partnerships (HOME) Program, and
WHEREAS, in order to access these funds, the City is required, every five years, to undertake an
Analysis of Impediments to Fair Housing Choice (AI) and develop an Action Plan to address the
impediments identified in that analysis, and
WHEREAS, in June 2014 the Tompkins County Office of Human Rights (OHR) was retained as a
consultant to conduct the City’s AI and did deliver the completed analysis to the City in May
2015, and
WHEREAS, the AI identifies nine direct and one indirect impediments to Fair Housing Choice in
the City of Ithaca, and
WHEREAS, under the terms of the February 14, 2013, agreement between the City of Ithaca and
the Ithaca Urban Renewal Agency (IURA), the City has designated the IURA as the Lead Agency to
plan, administer, implement, and monitor the HUD Entitlement grants awarded to the City in
accordance with all program requirements, and
WHEREAS, at their June, July, and August 2015 Neighborhood Investment Committee meetings
the members reviewed the AI submitted by OHR, discussed the identified impediments, and
prepared a Draft Action Plan for the consideration of the IURA and Common Council, and
WHEREAS, the IURA has reviewed the Draft Action Plan and recommended its adoption, now,
therefore be it
RESOLVED, that the IURA hereby recommends the adoption of the 2015 Analysis of Impediments
to Fair Housing Choice Action Plan by the Common Council.
Carried Unanimously 5‐0
IURA Minutes
August 20, 2015
Page 3 of 14
8/14/15
Analysis of Impediments to Fair Housing: Draft Action Plan
In 2014, the City of Ithaca contracted with the Tompkins County Office of Human Rights (OHR), to conduct an
Analysis of Impediments to Fair Housing (AI). OHR completed their analysis in May 2015. The AI contains a
wealth of information concerning the city’s demographics, economy, governmental structure, patterns of
land use and transportation, and many other aspects of life in Ithaca that influence our housing landscape.
The report will be invaluable to the City in planning new ways of improving that housing landscape for all of
our residents.
OHR identifies nine direct, and one indirect, impediments to fair housing choice in Ithaca. The City has
carefully reviewed these listed impediments and the observations provided by OHR to support them. We
agree with many of the conclusions reached by OHR, and disagree with others. Below, we list each identified
impediment, indicate the City’s agreement or disagreement with OHR’s position, provide observations in
support of the City’s position, and enumerate and prioritize the steps to address that impediment that the
City proposes to take. In some cases, the City believes additional research will be required to better define
the impediment before appropriate actions to address it can be devised. Where this is the case, we have so
indicated. Once this research has been concluded, the City will provide HUD with an updated Action Plan.
The impediments are listed here in the order they appear in the Analysis of Impediments; no priority is
implied by the order in which they are listed.
Impediment #1
“People with disabilities report higher levels of discrimination and lower levels of housing accommodation
than other residents.”
The City’s position: The City agrees that this impediment exists and believes that more research is needed to
better understand the impediment so that actions taken to address it will be effective.
The City’s observations:
The AI reports that 43% of fair housing complaints received between 2005 and 2014 were related to
disability, but no information is provided concerning the type of disability (mobility, sensory, mental
health, etc.) or type of discrimination (failure to show a unit, failure to provide a requested
accommodation, etc.) to which the complaint was related. The report shows that 24 of the 34 total
fair housing complaints received during that period originated in either the City or Town of Ithaca,
but does not break out a specific figure for the city. The report also notes that 73% of all complaints
resulted in findings of “no cause”; but again, we do not know how many of those “no cause” findings
related to complaints originating within the city or to complaints related to disability. It is therefore
difficult to know the true extent of the impediment within the city or the ways in which the
impediment manifests. Even assuming all 24 complaints for the ten‐year period originated within
the City and not the Town, with 43% (10 complaints) relating to disability, and 73% of those 10
resulting in a “no cause” finding, there would have been only two disability‐related complaints in the
City over a ten year period that resulted in some type of settlement or administrative closure.
Of the four fair housing tests conducted for disability, the two that resulted in evidence of
discrimination both involved service or emotional support dogs. One of the two inconclusive tests
IURA Minutes
August 20, 2015
Page 4 of 14
involved a service animal, while the other involved a mental disability. Additional testing not related
to the use of service animals would help the City understand the extent of the impediment and
therefore design more effective outreach and educational materials to address it.
Although the vast majority of the buildings in the city were constructed before 1987, it is not known
how many of those buildings have been, or could be, renovated to be accessible to the mobility
impaired. The ratio of rental to owner‐occupied units that meet ADA standards is also unknown.
Having this information would help the City design an appropriate programmatic response to address
this impediment.
The City’s proposed actions:
1. Year one: The City will conduct outreach and provide educational information to local landlords
concerning fair housing requirements. A particular focus will be placed on those types of discrimination
found during testing to be more prevalent. Specifically, the City will provide fair housing information in
annual Certificate of Compliance mailings, and to owners and property managers at Certificate of Compliance
inspections. Such information may include, but not be limited to, a listing of available on‐line fair housing
training resources, fair housing pamphlets, and contact information and a description of services for the
Office of Human Rights.
2. At a future date, when funding to undertake the activity can be secured, the City will secure information
on the number of rental units in the city that are ADA compliant, the number of owner‐occupied units that
are ADA compliant, the location of any high concentrations of non‐ADA compliant units, the extent to which
accessible units are in fact occupied by disabled households, and methods used by local landlords to
advertise the availability of accessible units. This research could potentially serve as the basis for creating a
program to support accessibility upgrades to existing units.
3. At a future date, when funding to undertake the activity can be secured, the City will conduct additional
fair housing testing to determine the prevalence of discrimination on the basis of disability where a service
animal is not required.
Impediment #2
“The needs of Limited English Proficient (LEP) individuals may be underserved by the City of Ithaca and by its
sub‐recipients of federal funding.”
The City’s position: The City agrees with OHR’s assessment of this impediment.
The City’s proposed actions:
1. Year one: The City will revisit its current LEP Plan for the purpose of developing a viable LAP.
2. Year two: The City will survey federally‐assisted sub‐recipients concerning their compliance with Title VI
of the Civil Rights Act, as required by their funding contracts, and will monitor their compliance on an annual
basis.
Impediment #3
“The obligation of sub‐recipients of City CDBG/HOME funds to Affirmatively Further Fair Housing (AFFH) is not
effectively communicated by the City nor understood by its sub‐recipients.”
The City’s position: The City disagrees with OHR’s assessment of this impediment.
IURA Minutes
August 20, 2015
Page 5 of 14
The City’s observations:
HUD has provided the following guidance in the CDBG Entitlement FAQs section of the HUD Exchange:
There is no requirement that a subrecipient have its own separate policy or plan for affirmatively
furthering fair housing, although the subrecipient must comply with general fair housing
requirements in carrying out a CDBG activity. Rather, it would be appropriate for your local
government to involve its CDBG subrecipients in the process of determining locally appropriate
actions to further fair housing and carrying out those actions, and to hold the subrecipients
accountable for them in all their projects. Subrecipients engaged in housing activities may have more
direct involvement in furthering fair housing; nevertheless, all subrecipients, other participants in the
CDBG program, as well as the general public can provide information, insight, and resources that
contribute to fulfilling the county’s obligation to affirmatively further fair housing. The county may
establish a local requirement for subrecipient involvement in its efforts to affirmatively further fair
housing through provisions in its subrecipient agreements, although such a contractual provision is
not a specific CDBG regulatory requirement.
The City’s proposed actions:
1. Year one: The City will encourage all sub‐recipients to offer observations and suggestions to the City so
that the City may improve its efforts to AFFH.
2. Year two: The City will require all sub‐recipients undertaking a housing activity to either attend fair
housing training or provide evidence of completing on‐line fair housing training on an annual basis, and will
encourage sub‐recipients undertaking non‐housing related activities to do so.
Impediment #4
“Exclusionary tactics against households who rely on public and private subsidies for housing is prevalent in
the City and has a disparate impact on protected classes in Ithaca.”
The City’s position: The City agrees that discrimination on the basis of source of income occurs in the city;
the extent to which is occurs in unclear. More research is needed to determine the true extent of the
problem as well as to understand why some landlords are unwilling to accept Housing Choice Vouchers
before the City can devise an appropriate response to the problem. The City does not agree that it would be
appropriate to add source of income as a protected category in the City Code until that additional research
has been conducted. Apart from any consideration of adding new protected classes, the City does agree that
Section 215 of the City Code should be revised to provide for an effective enforcement mechanism for
discrimination complaints (see impediment #7 below).
The City’s observations:
There is no doubt that some landlords in the city are unwilling to accept Housing Choice Vouchers.
One large landlord who until recently did accept vouchers is now refusing to accept them; however,
apart from this single landlord, neither local issuer of HCVs has noted a decrease in the number of
landlords who accept vouchers. Only one of the four fair housing tests performed for source of
income was conducted in the city; therefore, the conclusion that the problem is widespread within
the city seems premature.
Preliminary inquiries with small landlords about the voucher program reveal a need for outreach and
education to dispel some common misconceptions, and potentially a need for administrative
IURA Minutes
August 20, 2015
Page 6 of 14
improvements at one of the local agencies that issues HCVs. Simply adding source of income as a
protected class may not be the most effective way to address this problem; more, or different, action
on the part of the City may well be required.
The City’s proposed actions:
1. Year one: The City will initiate a conversation with local landlords to better understand the views of those
who currently accept HCVs, those who previously have accepted them but no longer do so, and those who
have never accepted HCVs.
2. Year one: The City will initiate discussions with our local HCV‐issuers to better understand their processes
and procedures, and the ways in which they interact with both landlords and voucher holders.
3. At a future date, when funding to undertake the activity can be secured, the City will conduct additional
fair housing testing to determine the prevalence of source of income discrimination.
3. The next steps to address this impediment will depend upon what is discovered as we further investigate
the problem. At a minimum, we would anticipate conducting an outreach and education campaign, and
potentially providing support for our HCV‐issuers to streamline administrative procedures to the extent
possible.
Impediment #5
“Some housing professionals’ policies, practices, and lack of knowledge limits housing options for protected
classes.”
The City’s position: The City does not find that OHR’s observations provide evidence to support the
existence of this impediment; however, we agree that more education is nearly always beneficial.
The City’s observations:
No evidence is provided to support the statement that smaller landlords are not well versed in the
requirements of fair housing law.
OHR notes that 90% of survey respondents perceive landlords to be leading perpetrators of housing
discrimination, while nearly one‐half of Tompkins County residents rate themselves as having very
little or no knowledge about fair housing. The City observes that the same group of survey
respondents is both charging landlords with being perpetrators of housing discrimination, and
admitting that they themselves have very little or no knowledge of fair housing.
The City’s proposed actions:
1. Year one: The City will conduct outreach and provide educational information to local landlords
concerning fair housing requirements. Specifically, the City will provide fair housing information in annual
Certificate of Compliance mailings, and to owners and property managers at Certificate of Compliance
inspections. Such information may include, but not be limited to, a listing of available on‐line fair housing
training resources, fair housing pamphlets, and contact information and a description of services for the
Office of Human Rights.
Impediment #6
“Processes related to the construction of housing within the City may limit housing choice and inhibit the
development of affordable housing within the City.”
IURA Minutes
August 20, 2015
Page 7 of 14
The City’s position: The City does not find that OHR’s observations provide evidence to support the
existence of this impediment; however, we agree that creative new local policies might stimulate the
development of affordable housing.
The City’s observations:
Due to the high cost of construction in the Ithaca area, any new affordable housing requires public
subsidy. Securing this public subsidy involves very lengthy application processes which are entirely
independent of the City’s approval process. Based on the experience of the Department of Planning,
Building, and Zoning, it is far more likely that the City’s approval process may have a negative impact
on the development timeline of a market‐rate project than of an affordable housing project.
No examples are offered of any existing procedural barriers to the creation of affordable housing.
The City already does, as suggested, “review and assess policies related to housing development and
planning for the purpose of eliminating procedural barriers”. Toward that end, the City recently
instituted a PUD ordinance, and is currently investigating other policy approaches that could
proactively stimulate the development of affordable housing.
It is unclear why a reference to the Consolidated Plan has been included as evidence of the existence
of this impediment. Section MA‐40 of the Consolidated Plan, “Barriers to Affordable Housing”, does
not identify any existing City processes as being detrimental to the development of affordable
housing.
The City’s proposed actions:
1. The City will continue with its ongoing work in this area, investigating various policy approaches, such as
inclusionary zoning, that could proactively stimulate the development of affordable housing.
Impediment #7
“The City of Ithaca does not provide its residents with any effective legal mechanism by which their fair
housing rights are meaningfully enforced.”
The City’s position: The City agrees with OHR’s assessment of this impediment.
The City’s proposed actions:
1. Year one: The Office of Human Rights has presented a draft new anti‐discrimination ordinance to the
County for their consideration. The City will consider whether a review of its anti‐discrimination ordinance is
appropriate at this time and whether City and County protected classes should be aligned.
2. Depending upon the outcome of these discussions in year one, the City will determine the best approach
and next steps for creating a local enforcement mechanism.
Impediment #8
“There is an inadequate supply of emergency shelter and transitional housing services especially for homeless
families with children and persons with disabilities.”
The City’s position: The City agrees that there is a need for additional resources to address homelessness
locally. We disagree with OHR’s analysis of local trends in the sheltered and unsheltered homeless
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August 20, 2015
Page 8 of 14
population and with the conclusion that additional shelter beds and transitional housing are required,
particularly in light of HUD’s current emphasis on a Housing First approach.
The City’s observations:
The Point in Time Count shows a decrease in both unsheltered and imminently homeless populations
in 2015 due to the community’s focus on housing the unsheltered and preventing the unstably
housed from becoming homeless.
As noted in our Consolidated Plan, there has been a change in operators at our local emergency
shelter. The new operator, Rescue Mission, began their operations with very different admission
requirements and operating procedures than the former operator, Red Cross. The transition has not
been smooth, and the City is monitoring the situation to determine what real trends in homelessness
exist. The Human Services Coalition (HSC), compiler of the PIT count, notes that the increase in
usage at the Rescue Mission shelter is most likely due to the increase in number of beds made
available by the operator, while the increase in Advocacy Center safe house usage is attributed to
normal fluctuations.
Shelter stays are significantly longer than necessary due to the lack of permanent affordable housing
in Ithaca and the limited supply of HCVs. The shelter operator has also told us that security deposits
pose a barrier to families leaving their shelter. In response to this observation, the City increased
funding for security deposit assistance in our 2015 CDBG Entitlement Action Plan.
Federal funding is no longer available to construct transitional housing, as this type of programming
has been found less effective in reducing homelessness than a Housing First approach.
The City’s proposed actions:
1. Year one: The City will consult with DSS to determine the significance of the increase in the number of
families that were housed by DSS in motels this past winter.
2. The City will continue to monitor usage of the emergency shelter and work with the current operator to
address barriers to their clients’ securing permanent housing.
3. The City will continue to collaborate with the Continuum of Care on appropriate responses to local
housing instability.
4. The City may explore the possibility of creating a new emergency shelter specifically to address the needs
of homeless families with children, if DSS and our Continuum of Care partners agree that the need for such a
facility exists.
5. The City will continue to fund programs that house the homeless. In the past, the City has funded the
Learning Web’s Housing Scholarship program (homeless youth) and Tompkins Community Action’s Housing
First (chronically homeless).
6. The City will continue to explore the potential for a pilot program to address housing instability for
families with elementary school aged children.
IURA Minutes
August 20, 2015
Page 9 of 14
Impediment #9
“Ithaca’s student‐dominated rental market leads to the prevalence of discriminatory practices by local
housing providers who screen out families with children (and other protected classes) in favor of single
students for housing.”
The City’s position: The City agrees that there is evidence of discrimination on the basis of familial status,
particularly in Collegetown, the city’s primary student‐oriented neighborhood. The extent of discrimination
on the basis of familial status in other areas of the city is less clear.
The City’s observations:
OHR cites longer waiting list times for family public housing, as compared to senior public housing, as
evidence of the existence of this impediment. The Ithaca Housing Authority owns over twice as
many senior/disabled units (235) as family units (106). The family units contain a range of bedroom
sizes, from 2‐ to 4‐bedrooms. The difference in IHA wait list times is likely impacted by the number
of existing units that are of a suitable size for the particular waiting household. The federal
government is no longer building new public housing.
Ithaca Neighborhood Housing Services reports that they have difficulty filling their three‐bedroom
units; their wait‐list for one‐bedroom units is much longer than their wait list for large family units.
Ithaca’s topography is such that our most heavily student‐oriented neighborhood, Collegetown, is
not particularly family‐friendly. It is not conveniently located near shopping, schools, or employment
(other than employment at the University), is not highly walkable due to the steepness of the terrain,
and contains no public parks or green spaces. Both of the fair housing tests that revealed evidence
of discrimination were conducted in the Collegetown neighborhood.
One contributor to the high cost of housing locally is the very high property tax rate, which is due in
large part to the fact that over 60% of all property in the City is tax exempt. Encouraging the
construction of additional on‐campus housing in lieu of private‐market housing constructed adjacent
to the university will only worsen this problem.
The City’s proposed actions:
1. Year one: The City will conduct outreach and provide educational information to local landlords
concerning fair housing requirements. Specifically, the City will provide fair housing information in annual
Certificate of Compliance mailings, and to owners and property managers at Certificate of Compliance
inspections. Such information may include, but not be limited to, a listing of available on‐line fair housing
training resources, fair housing pamphlets, and contact information and a description of services for the
Office of Human Rights. Specific information will be provided to help landlords understand the distinction
between steering and the provision of information about a neighborhood that would be useful to a
prospective resident in making an informed decision.
2. At a future date, when funding to undertake the activity can be secured , the City will conduct additional
testing to determine whether discrimination on the basis of familial status is prevalent in areas of the city
outside Collegetown.
Indirect Impediment #1
“The City’s high rental and homeownership prices, as well as limited land and public resources, have a
disparate impact on Ithaca residents in protected classes who have low incomes by limiting their housing
options.”
IURA Minutes
August 20, 2015
Page 10 of 14
The City’s position: The City agrees with our consultant’s assessment of this impediment.
The City’s proposed actions:
1. The City will continue to oppose annual reductions in HOME/CDBG funding, which limit our ability to
undertake fair housing activities and to implement actions to address the local housing crisis.
2. The City will continue to advocate for increased public resources for housing development and operations
from HUD and other agencies.
3. The City will continue to explore every possible resource to create new and preserve existing supplies of
affordable housing.
4. The City will continue to actively participate in the local Housing Trust Fund, which combines the
resources of the City, County, and Cornell University, to support the development of affordable housing.
B. Annual Appointment of Neighborhood Investment Committee (NIC) Chairperson
Myrick moved, seconded by Proulx:
2015 Appointment of IURA Neighborhood Investment Committee Chairperson
WHEREAS, IURA By‐laws provide that the committee membership shall elect its own committee
Vice‐Chairperson and nominate a candidate for committee Chairperson for consideration by the
Agency, and
WHEREAS, per the Bylaws, an Agency member shall fill either the committee Chairperson or
committee Vice‐Chairperson position, 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 Neighborhood Investment (NI) Committee Chairperson and Vice‐
Chairpersons are Tracy Farrell and Karl Graham, respectively, and
WHEREAS, at their July 10, 2015 meeting, the IURA NI Committee considered this matter and
elected Karl Graham as Vice‐Chairperson and nominated Tracy Farrell as Chairperson; now,
therefore, be it
RESOLVED, that the IURA hereby appoints Tracy Farrell as Chairperson of the IURA Neighborhood
Investment Committee.
Carried Unanimously 5‐0
IURA Minutes
August 20, 2015
Page 11 of 14
C. Committee Vice‐Chairperson Report
Graham reported that Paul Mazzarella and Joe Bowes from Ithaca Neighborhood Housing Services
(INHS) attended the meeting to update the Committee on the 210 Hancock Street project, which
recently received both its Zoning Variance and Final Site Plan Approval. They reported that the
project’s construction costs turned out higher than anticipated, particularly the town houses. As a
result, only 7 townhouses will be for sale, with the remainder rental units. One issue INHS has been
trying to address is that INHS homeowners’ tax assessments are higher than their purchase price.
Graham’s understanding is that INHS will file a lawsuit to try to resolve the issue.
Graham reported the Southside Community Center (SCC) recently determined it would also need
exterior security cameras, in addition to interior ones, thereby increasing the total project cost;
however, City Building Maintenance and Solid Waste Supervisor Steve Nann indicated the cost
difference could come out of the City maintenance budget. The project should be complete by mid‐
September 2015.
VI. Economic Development Committee (EDC)
A. Request from Delante, Inc. (DBA Madeline’s restaurant) to Subordinate Security Lien on
Business Assets of Delante, Inc. Filed to Secure Prior Loan to Wildfire Restaurant, Inc. (CD‐RLF 26)
Bohn explained that one of the Tompkins Trust Company conditions for a loan to the restaurant is
that it needs to have first lien on all restaurant business assets. The bank discovered the IURA holds
a security lien on Wildfire Restaurant, Inc. (preceding its transition to the current Lot 10 bar). The
Wildfire restaurant ultimately failed and was refinanced. At that time, the owners asked the IURA
to reallocate the security lien on the equipment from Wildfire to Madeline’s. Bohn noted the
Wildfire loan began at $85,000 and was paid down to $18,000. The owners have been steadily
paying down the loan, which the IURA holds a variety of collateral liens on. Lot 10 has been a
profitable and reliable tenant. The IURA holds a second security lien on Delante, Inc. assets, behind
M&T Bank, so it did not have much collateral on that loan. As part of the new loan, M&T Bank
would be completely paid off by the TTC loan. TTC has asked that the IURA move behind it, in the
lien order. Given that the Wildfire loan has been mostly repaid, and given the modest equity value
involved, it seems a reasonable amount of collateral to secure both IURA loans. Bohn
recommended the IURA accede to TTC’s request.
Proulx moved, seconded by Rosario:
Wildfire Restaurant, Inc. Request to Subordinate Collateral (CD‐RLF #26)
WHEREAS, on July 22, 2015, the IURA authorized a $150,000 loan to Delante, Inc. (DBA
Madeline’s Restaurant) in conjunction with a $320,000 loan approved by Tompkins Trust
Company (TTC), and
WHEREAS, TTC requires a 1st security lien on business assets as a condition of loan approval, and
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August 20, 2015
Page 12 of 14
WHEREAS, the IURA currently holds a subordinate security lien on business assets of Delante,
Inc., behind M&T Bank, as part of a collateral package to secure the Wildfire Restaurant, Inc. loan
issued in 2009, and
WHEREAS, Teri A. Miller and Scott A. Miller are owners of both Wildfire Restaurant Inc. and
Delante, Inc. and
WHEREAS, Wildfire Restaurant, Inc. requests the IURA to subordinate its existing security lien on
business assets of Delante, Inc. to induce TTC to make a loan to Delante, Inc., and
WHEREAS, IURA issued a $95,000 loan to Wildfire Restaurant Inc. in 2009 that is scheduled to be
repaid in full in 2016, and
WHEREAS, repayment on the Wildfire loan is current with an outstanding principal balance of
$18,682.92 as of June 30, 2015, and
WHEREAS, the Wildfire loan is also secured by the following:
3rd mortgage lien on property located at 106‐112 S. Cayuga Street (Lot 10);
2nd security lien of business assets of Delante Inc., behind a 1st lien of $100,000;
Corporate guarantee of 106‐112 S. Cayuga, LLC, owner of real property;
Personal guarantees of Teri A. Miller and Scott A. Miller; and
WHEREAS, property at 106‐112 S. Cayuga Street was appraised at $470,000 in 2009, and
WHEREAS, the outstanding balance due on loans secured by the 1st and 2nd mortgages on
property located at 106‐112 S. Cayuga Street held by TTC totals approximately $282,500 as July
31, 2015, providing equity value of approximately $187,000 in the real property as collateral to
secure the IURA loans; and
WHEREAS, the IURA loan to Wildfire, Inc. will remain reasonably secured if the requested
subordination is approved; now, therefore, be it
RESOLVED, that the IURA hereby agrees to subordinate its security interest in business assets of
Delante Inc. (DBA Madeline’s Restaurant) granted to secure the Wildfire Restaurant Inc. loan to
induce Tompkins Trust Company to make a $340,000 loan to Delante, Inc., and be it further
RESOLVED, that the IURA Chairperson, upon the advice of IURA legal counsel, is hereby
authorized to execute all necessary and appropriate documents to implement this resolution.
Carried Unanimously 5‐0
B. Committee Vice‐Chairperson Report
None.
IURA Minutes
August 20, 2015
Page 13 of 14
VII. Governance Committee (did not meet prior to the IURA meeting in August 2015)
VIII. Other New/Old Business
A. Review of IURA Financials: July 2015
Bohn noted that 2015 IURA programs/activities are not yet included in the financial report, since the
IURA needs formal HUD authorization and Congressional approval. All projects are currently moving
forward to some degree, although some have been delayed, like the Route 13 Pedestrian Crossing.
Projects are listed as “not complete” until funds are actually drawn down from HUD.
Proulx asked if the railroad did not fulfill its original commitment for the Route 13 Pedestrian
Crossing project. Bohn replied, that is correct, although he has no additional details at this time.
Farrell asked why the Housing First program is not using more funds. Truame replied that staff was
also curious about that and will be meeting with Tompkins Community Action to discuss it. (No
invoices have yet been submitted for the program.)
Bohn noted the Art and Found loan is past due. The owner has not responded to staff
communications, so a formal letter will be sent. The State Theatre is also past due: it made one
payment, but remains one month behind. Staff is following up with them, as well. Myrick added
that he believes the Art and Found closed the retail portion of its business and is only operating
online at this point.
Bohn reported that all the lease payments are now current.
C. IURA Chairperson Report
Myrick announced he hand‐delivered the letters that were discussed at the last meeting to the
City’s Congressional delegation (Congressman Reed and Senator Gillibrand), urging against Federal
budget cuts.
D. Common Council Liaison Report
McCollister reported a Common Council working group/committee has been meeting to review the
Community Incentive Tax Abatement Program (CIITAP) and has already done a considerable amount
of work. The working group is trying to identify the best ways to revise and enhance the current
CIITAP policy. One of the major concerns with the current program is the issue of local labor; so
better coordinating the program with the County and Tompkins County Industrial Development
Agency (IDA) should help make it more effective. Member of the working group seem to agree on
how to modify the program, including what it can/cannot realistically accomplish. Some work still
needs to be done on how to best ensure that the issue of women‐ and minority‐owned businesses is
addressed, which should probably include some kind of measurable requirement/outcome.
Proulx expressed a desire that the reporting requirements not be as onerous as in the past.
IURA Minutes
August 20, 2015
Page 14 of 14
E. Staff Report
Bohn reported that the City Administration Committee recommended approval of another 6‐year
Cornell‐City Affordable Housing Program. He added that Tompkins County is working on updating
its 2006 housing market study (which would include student housing, this time).
Truame announced she is drafting an inclusionary zoning ordinance proposal.
IX. Adjournment
The meeting was adjourned by consensus at 9:57 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.