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HomeMy WebLinkAboutMN-PLED-2015-04-08Approved at the June 10, 2015 PEDC Meeting City of Ithaca Planning & Economic Development Committee Wednesday, April 8, 2015 – 6:00 p.m. Common Council Chambers, City Hall, 108 East Green Street Minutes Committee Members Attending: Joseph (Seph) Murtagh, Chair; Graham Kerslick, Ellen McCollister, Cynthia Brock, and Josephine Martell Committee Members Absent: Mayor Svante Myrick Other Elected Officials Attending: Alderperson George McGonigal Staff Attending: JoAnn Cornish, Director, Department of Planning, Building, Zoning, and Economic Development; Nels Bohn, Director, Ithaca Urban Renewal Agency; Tom West, Civil Engineer, City Engineering Office; Gino Leonardi, Building Division; Mike Niechwiadowicz, Building Division; Debbie Grunder, Executive Assistant, Department of Planning, Building, Zoning, and Economic Development Others Attending: None Chair Seph Murtagh called the meeting to order at 6:00 p.m. 1) Call to Order/Agenda Review 401 Lake Street and Eddy Street Sidewalks were added to the meeting agenda. Lake Street was placed under Announcements and Eddy Street was placed under Discussion Items. 2) Public Comment and Response from Committee Members James Orcutt, 324 Dryden Road, received a ticket for a sidewalk that wasn’t shoveled while he was on vacation. He provided statistics as to the amount of tickets issued in the City of Ithaca. He suggests that the City employee who wrote the ticket shovel the sidewalk himself. If that can’t be done, the City employee should communicate with the property owner. He thinks how the City is handling this is wrong. It makes people angry. Approved at the June 10, 2015 PEDC Meeting 3) Special Order of Business a) Public Hearing – Canopy Hotel Property Disposition Alderperson Kerslick moved to open the public hearing; Alderperson Brock seconded it. Passed Unanimously. John Bentkowski, 108 East Treva Avenue, real estate appraiser for 37 years and previous teacher at Ithaca College is concerned about this project. He has done a number of appraisals in surrounding areas. This is terribly wrong. Ithaca doesn’t need any more hotels. The cost of the project is terribly high. He also submitted an email to the committee before the meeting. He agreed to put more of his thoughts in writing and send it to the committee Alderperson McCollister moved to close the public hearing; Alderperson Kerslick seconded it. Passed Unanimously. b) Discussion – Snow Removal on City Sidewalks Mike Niechwiadowicz, Gino Leonardi, and Larry Roberts were present to lead the discussion. Mike Niechwiadowicz addressed the committee stating that due to the terrible weather conditions we experienced this winter, many residents received tickets. If the snow is hard packed or ice is built up, salt and sinders can be used. Tony Love is our property maintenance inspector. He is very diligent. If a complaint is file d, he looks at it and also looks around the area. In the past, people did nothing until a ticket is issued. The process failed miserably. He further stated Tony is in contact with DPW and if the sidewalks’ shoveling is delinquent, the DPW will shovel the walks and the homeowner is charged. A suggestion was made to change the time shoveling should be completed to 48 hours from 24 hours. Larry Roberts, President of the Disability Advisory Council, also addressed the committee. The removal of snow during the winter is the biggest challenge. Having access to the City sidewalks to get around in the City is a civil right. Sidewalks are getting shoveled, but curve ramps are not. Plows come through and cover it back up again. He encourages that we remember that we are dealing with a very difficult topic with very limited resources to tackle the problem. Attorney Ari Lavine stated that we all can agree that this past winter was more difficult than others. People, who usually never get tickets, received them . This shouldn’t have any reflection on how the City staff is doing their jobs or a change in procedure – it’s because the winter was worse than many. Approved at the June 10, 2015 PEDC Meeting Alderperson Kerslick stated that he has seen a significant improvement in maintaining the City sidewalks. We are a sustainable community – we walk. We all use the sidewalks. Alderperson McCollister stated she would like to see a change in the time allowed to remove the snow. Not only do the homeowners not have enough time, but those who are in the profession of maintenance and snow removal don’t have enough time. It was further discussed how to help one another particularly those who cannot do it themselves. A program to help keep the curb cuts clear is needed. Alderperson McGonigal stated that the 24-hour limit should be changed to 48 hours. It’s just not possible to get it all done in a 24-hour time period. Larry Roberts stated that the DAC would oppose the change to 48 hours. It’s too long. He further stated that the ordinance used to be written 24 hour s after the snow storm; it now reads 24 hours from the start of the storm. He further stated that he current complaint system is not working, but it is really getting much better. He stated not knowing Tony Love himself, he is sure that there are several repeat offenders of the existing law. There are also many property owners and landlords who seldom get tickets because they do what they are supposed to do – they follow the law. 4) Announcements, Updates, and Reports a) 2015 Community Development Block Grant and Home Investment Chair Murtagh read into record the announcement of the grant and home investment that was distributed in the agenda packet. b) Comp Plan Open House Schedule JoAnn Cornish provided information regarding the community open houses. She politely requested that everyone read the plan. c) Dave Reimer and Wade Wykstra’s project – ASK JOANN Approved at the June 10, 2015 PEDC Meeting d) 401 Lake Street Alderperson Brock recommended that we gather all the tax roles on the property. That site could be a very nice site. Alderperson McCollister stated she wouldn’t want it be taken off the tax roles. Alderperson Martell asked Nels Bohn if he could investigate the condition of the property in order to provide that information to the Natural Areas Commission. 5) Action Items – Voting to Send on to Council Proposed Resolution Planning & Economic Development Committee April 8, 2015 Canopy Hotel Project, Approval of Sale Agreement of 320-324 E. MLK Jr. /E. State Street to Lighthouse Hotels LLC Moved by Alderperson McCollister; seconded by Alderperson Kerslick. Carried Unanimously. WHEREAS, Lighthouse proposes to construct a $19 million, seven-story, 123-room Canopy by Hilton hotel along with an approximately 2,000 square foot commercial lease space on a project site located north of the Carey Building on parcels currently used for public and private surface parking on the 300 block of E. MLK Jr./E. State Street (Urban Renewal Project), and WHEREAS, Lighthouse seeks to acquire property located at 320-324 E. MLK Jr./E. State Street (tax parcels #69.-1-3 and #69.-1-6.2) to undertake the Urban Renewal Project, and WHEREAS, on June 26, 2014 the Ithaca Urban Renewal Agency (IURA) designated Lighthouse Hotels LLC (Lighthouse) as a “qualified and eligible sponsor”, pursuant to §508 of General Municipal Law, to acquire property from the IURA to undertake an urban renewal project for an in-fill urban hotel project on the 300 block of E. MLK Jr./E. State Street, subject to certain project requirements, and WHEREAS, on November 5, 2014, the Common Council for the City of Ithaca authorized transfer of real property located at 320-324 E. MLK Jr./E. State St. (tax parcel #69.-1-6.2) to the IURA for the purpose of structuring a proposed sale agreement for an Urban Renewal Project subject to approval by the Common Council following a public hearing, and WHEREAS, an appraisal conducted by Midland Appraisal Associates, Inc. concludes the fair market value of the property located at 320-324 E. MLK Jr./E. State Street is $1,800,000, and WHEREAS, on January 27, 2015 the City of Ithaca Planning & Development Board, acting as Lead Agency in the environmental review, determined that the proposed Urban Renewal Project, including the conveyance of 320-324 E. MLK/E. State Street, will result in no Approved at the June 10, 2015 PEDC Meeting significant impact on the environment and issued a Negative Declaration in accordance the City of Ithaca Environmental Quality Review Ordinance, and WHEREAS, the project site is located within the City of Ithaca Urban Renewal Project Boundary area, and WHEREAS, the primary objective of the Ithaca Urban Renewal Plan for this urban project is to improve the social, physical, and economic characteristics of the project neighborhood; and WHEREAS, on March 26, 2015, the IURA found that the proposed project by Lighthouse Hotels LLC for construction of a 123-room hotel project, subject to the attached sale agreement term sheet, dated 3/26/15, will improve the social, physical and economic characteristics of the downtown neighborhood thereby furthering the goals and objectives of the Urban Renewal Plan, and WHEREAS, on March 26, 2015, the IURA authorized sale of the property located at 320-324 E. MLK Jr./E. State Street to Lighthouse Hotels LLC to undertake the proposed Urban Renewal Project in conformance with the attached T erm Sheet and subject to Common Council approval, and WHEREAS, under §507 of Article 15 of General Municipal Law, the IURA is authorized to sell real property to a “qualified and eligible sponsor” subject to Common Council approval following a public hearing, and WHEREAS, a public hearing notice was published in the March 30, 2015 edition of the Ithaca Journal disclosing the essential terms of the proposed sale and a public hearing was held on April 8, 2015; now, therefore, be it Resolved, that the City of Ithaca Common Council hereby approves the IURA-proposed sale agreement of 320-324 E. MLK Jr./E. State Street to Lighthouse Hotels LLC in conformance with the attached Term Sheet, dated 3/26/15, and be it further Resolved, that the net proceeds from sale of tax parcel #69.-1-6.2 shall be paid to the City. 3/26/15 Term Sheet Canopy Hotel Property Sale Agreement Type of Disposition: Sales contract for fee simple ownership Seller: Ithaca Urban Renewal Agency Purchaser: Lighthouse Hotels LLC Property: 320-324 E. MLK Jr./E. State Street, Ithaca, NY (tax parcels #69.-1-3 and #69.-1-6.2) Purchase Price: One Million Eight Hundred Thousand US dollars ($1,800,000) Future Use: An approximately 120-room hotel and 2,000 square foot commercial lease space Job Creation: Creation and maintenance of at least 33 full-time equivalent (FTE) jobs Wages/Salaries:  Living Wage Positions – Creation and maintenance of a minimum of 16 full- time employment positions paid at least a “living wage” as defined by AFCU (currently $12.62/hour including employer paid health insurance benefits) and as such “living wage” changes from time to time.  Housekeeping Staff – Each employee in the housekeeping department to be paid at least 120% of the State minimum wage, as such minimum wage changes from time to time (NYS minimum wage is currently $8.75/hour). Employment & Wage Reporting:  Quarterly employment and wage reporting shall be submitted quarterly to Seller for five (5) years.  If Purchaser in full compliance with employment, wage and job training commitments for three (3) consecutive years as determined by Seller, Purchaser shall be released from further quarterly employment and wage reporting.  Thereafter, Purchaser shall annually certify to Seller compliance with wage requirements throughout the first 20 years of operation of the hotel. Hardship Modification: Purchaser may apply to Seller for a modification to the number of FTE jobs to be created, the number of full-time living wage jobs to be created and the job training requirements based on demonstrated economic hardship. Required minimum wages for housekeeping staff is not subject to a hardship modification. Urban Design: 3/26/15 Canopy Hotel Term Sheet ( page 2 of 3 pages) Prohibit use of the following exterior building façade materials unless approved by the Planning & Development Board: o EIFS, such as “Dryvit” or other stucco-like finishes o Concrete masonry units, including split face cement block Mitigation of loss of public parking  Publicly designate three (3) 15-minute loading spaces for public use that provides an ADA accessible route to the CSMA building elevator entrance Participation in IURA-sponsored job training programs:  Offer the hotel as a job training site for participants in the Hospitality Employment Training Program (HETP). The hotel shall make at least one on-the-job training opportunity available per year for each of the first 5 years of operation of the hotel. Such training opportunity shall require no out-of-pocket expense to be paid by the hotel.  Provide hotel job postings to the IURA of entry-level jobs available for initial hiring for the hotel prior to filling the jobs. The IURA will distribute employment postings to appropriate IURA-sponsored job training and placement programs. Conditions for Sale:  Acquisition of adjacent parcel – within 10 days of the date of the purchase agreement, submit proof of binding site control of the adjacent parcel #69.- 1-8 that is necessary for construction of the proposed project.  Site Plan approval – within 180 days of the date of the purchase agreement, submit proof of final site plan approval.  Building Permit issuance – within 365 days of date of the purchase agreement, submit proof of building permit at least authorizing construction of the full foundation.  Project financing – within 365 days of the date of the purchase agreement, submit proof of financing and equity sufficient to construct the project. Deposit: $25,000, of which $10,000 is a nonrefundable deposit. Purchase Financing:  Loan amount: $1,375,000  Term: 255 months (20 years + 15-month construction period)  Repayment: Interest-only payments for 15 months, then level monthly payments to fully amortize the loan over 240 months. No prepayment penalty for partial of full prepayment of the loan.  Interest Rate: City’s cost of funds plus 20 basis points (note: 3.15% as of 3/5/15)  Rate Adjustment: Every 5 years during amortization period 3/26/15 Canopy Hotel Term Sheet ( page 3 of 3)  Interest Rate Index (City’s cost of funds): Yield rate on a AA tax-exempt bond as reported on the Market Card published by BMO Capital Markets at www.bmocm.com/research. The initial index rate shall be based on a 20- year AA tax-exempt yield (note: 2.95% as of 3/5/15). The applicable index at each rate adjustment shall equal the yield rate on the AA tax-exempt bond for a term equal to the remaining term of the amortizing loan at the time of rate adjustment.  Collateral: 2nd mortgage lien on project property  Financial Guarantors: Satisfactory unlimited personal financial guarantees from Neil H. Patel, Hitesh Patel, Vinodbhai Patel, Amit Patel and Jayesh Patel.  In the event of a default after notice and a cure period, the interest rate will increase by 100 basis points until the default is remedied. 6) Action Items – Approval to Circulate a. Divestiture of City-owned Lands – Elmira Road Tom West, Director of Engineering Date: February 20, 2015 Re: Divestiture of City-owned lands - Licensed Properties - Elmira Road In addition to individual parcels of City-owned land that have been determined to be surplus and sold there are a number of small pieces of land that the city licenses to individuals and businesses that could also be put back on the tax rolls. Ten such parcels can be found along Elmira Road. The City has licensed use of properties and portions of rights of way since the late 1970's or early 1980's. Over that time various formulas have been used to establish an annual fee for use, agreements have been written, fees have been disputed, fees have been collected and fees have been ignored. Although some of these pieces of land may have some public works use in the future many are artifacts of past land acquisition that have little value to the City other than as fee generators. Unfortunately the time and effort to establish and collect fees probably exceeds the income generated. The balance is further tipped when those properties are recognized as revenue generators by the County Assessor, and they become subject to County property taxes. It hardly makes good business sense for the City to keep these properties. Elmira Road - The right of way for Elmira Road was acquired long before the area was annexed by the City. Acquisition followed existing property lines and resulted in an irregular right of way line. (Most rights of way are characterized by parallel longitudinal lines with the street centered between them.) The City has licensed use of the excess portion of that right of way to various property owners abutting Elmira Road. Recently adjustments were made to the fee structure to bring fees more in line with actual property values so it is no longer a bargain for the abutting owners. However, most of the owners have permanent improvements on the right of way and are unwilling or unable to abandon the use to avoid the new fee. I propose that the City sell those portions of the right of way that serve no further public works function. A good example of such a property is located at 344 Elmira Road - Fat Jack's (formerly Garcia's) Restaurant. The property owner appealed his 2012 license fee. Based upon field measurement and the rationale that the driveway should not be considered a "licensed use" of the right of way it was calculated that the property owner is using approximately 3000 square feet (sf). The property owner has been assessed a fee of $3,236.70;- The fee is based upon an appraised value of·$L10per square foot: I recommend that the City sell the portion of the right of way that the property owner is using to him. The general appraised value of commercial property along Elmira Road is $10.00 per square foot (refer to appraisal of 334 Elmira Road by Midland Appraisals, 2003). The property owner could be offered approximately 4400 sf abutting his front property line for a price of $44,000. Cost of a survey would be about $1,000 and there would be filing fees. The City would realize an additional $500 - 600 per year property tax without doing any paperwork, mailings, etc. The property is of little use to the City. The City licenses approximately 10 such bits of right of way along Elmira Road. Perhaps the most puzzling arrangement is with Wal-Mart which licenses about 100 square feet of right of way for their large entry sign. The total portion of right of way utilized or encumbered by Wal-Mart and the other businesses on this property is approximately 14,000 sf. The appraised value of the parcel is $140,000; we collect about $100 per year from Wal-Mart and nothing from the other businesses. Property tax income from 14,000 sf would generate about $2,000 per year. Approximate ADDRESS Business Sq Ft Value 1 $10.00 344 Elmira Rd Fat Jack's Restaurant (Garcia's) 4400 $44,000.00 340 Elmira Rd Burger King 4225 $42,200.00 338 Elmira Rd Monro Muffler 2790 $28,000.00 Jiffy Lube 650 $6,500.00 334 Elmira Rd Vacant 1260 $12,600.00 328 Elmira Rd Arby's 2180 $22,000.00 326 Elmira Rd Wendy's 2350 $23,500.00 324 Elmira Rd Moe's Southwest 4550 $45,500.00 Walmart 9520 $95,200.00 323 Elmira Rd Denny's (Friendly's) 2678 $28,800.00 Total potential value $348,300.00 The first step in the process of divesting of these portions of right of way is for the Board of Public Works to determine if there is a public works need for these lands. This step was completed in late 2012. The Board determined that, in most cases, there is no public works need, and in two cases the public works need can be accommodated via easement. The Board recommended that the Common Council sell these properties. The property line changes do not require sub-division; they can be changed by lot line adjustment which is simpler. The surveyor shows the reputed owner of the right of way to be Tompkins County. This Deterf!lination is based upon the last recorded deeds for the various properties that were purchased and assembled to create the Elmira Road right-of-way. The City obtained the right-of-way at the time of annexation of the south west portion of the City. The City has improved and maintained the right of way since that time. Transfer of ownership could be made via quit claim deed. There will be some expenses to make these sales possible. The City Attorney has suggested that the legal work could be most expeditiously accomplished by engaging outside legal services. Although the baseline survey work has been completed the surveys will require update. It would also, perhaps, expedite the sale of the parcels if the City bore the costs of correcting deeds and property surveys for the buyer. There will also be filing fees associated with the lot line adjustments and land sale. Lastly, it would be in the interest of all parties for an appraisal to be conducted to establish fair market value. I recommend that Common Council establish a budget of $52,000 to initiate this work; we will certainly have a better idea of the cost of completing the land sales as we identify and solicit the necessary services. Here is the survey for the frontage of the parcel currently occupied by Fat Jack's (Garcia's) Restaurant Resolution to Initiate Divestiture of Various Portions of Elmira Road Right of Way Whereas, the right of way along Elmira Road in the City of Ithaca has a very irregular alignment, and Whereas, the portions of right of way outside of the area required for public street, tree lawn and sidewalk are currently licensed for use by abutting property owners, and Whereas, the Board of Public Works has determined that there is little or no Public Works need for these portions of right of way, and Whereas, it is in the interest of both the City and the abutting property owners that those portions of land be conveyed to the abutting owners at a fair market value, now be it Resolved, that the Common Council directs staff to investigate a mechanism for transferring said portions of right of way to abutting owners at fair market value, and be it further Resolved, that Common Council authorizes expenditure not to exceed $52,000 for legal services, surveys and appraisals in order to conduct such an investigation and conveyance. Moved by Alderperson Kerslick; seconded by Alderperson Martell. Carried Unanimously. This will be circulated and will be back in May. b) Zoning Amendment – MH-1 To: Planning and Economic Development Committee From: Jennifer Kusznir, Economic Development Planner Date: March 25, 2015 RE: Proposal to Amend the MH-1 Zoning District The purpose of this memo is to provide information regarding a proposal to amend the MH-1 Zoning District. The City has recently been approached with a request to amend the MH -1 zoning district. The MH-1 zoning district is only located in one area of the City on three parcels. This district was established in order to allow for a mobile home neighborhood. This neighborhood is a well established successful neighborhood with a wai ting list of people that would like to add units to the park. The current regulations for this district do not allow for any units to be placed within 30’ of any adjacent property line. This restriction was meant to protect the residential uses from the adjacent commercial districts. However, given the rear yard requirement that also exists, and the required vegetative buffer that was installed by the commercial development, the high level of demand for additional residential units in this district, staff feels that it is unnecessary to maintain the additional required buffer from adjacent property lines. If the Committee is in agreement with this proposal, staff will draft an ordinance and circulate it for comment and return next month for further discussion. If you have any concerns or questions regarding any of this information, feel free to contact me at 274-6410. Alderperson McCollister suggested for a more detail to the memo for Alderperson McCollister moved to circulate; Alderperson Kerslick seconded it. Passed unanimously. This will be circulated and come back in May. 7) Discussion a) Possible Zoning Amendment – CBD-60, Aurora Street Alderperson Kerslick stated he would like to see a larger map for the CBD -60 Zone. Alderperson Brock would like to see an increase in owner-occupied housing in the City. She does agree that affordable housing is needed, but the need is for “for sale” housing. Alderperson Kerslick stated while reviewing this area we must be mindful that it abuts an historic district. 8) Review and Approval of Minutes a. March 2015 Moved by Alderperson Kerslick; seconded by Alderperson Martell. Passed unanimously. 9) Adjournment Chair Murtagh motioned to adjourn at 8:35 p.m.