HomeMy WebLinkAbout06-10-15 Planning and Economic Development Committee Meeting Agenda r PEDC Meeting
Planning and Economic Development Committee DATE:June 10, 2015
:.r a '_ Ithaca Common Council TIME: 6pm
� E LOCATION: 3rd floor
City Hall Council Chambers
AGENDA ITEMS
Item Voting Presenter(s) Time
Item? Start
1) Call to Order/Agenda Review No Seph Murtagh, Chair 6:00
2) Public Comment and Response from Committee No 6:05
Members
3) Special Order of Business
a) Taxi Regulations No Julie Holcomb, City Clerk 6:20
4) Announcements, Updates, and Reports
a) Lake Street Park Enhancements No Addisu Gebre, EIT, Bridge System Engineer 6:40
b) Incentive/Inclusionary Zoning No JoAnn Cornish, Planning Director
5) Action Items—Voting to Send on to Council
a) Cornell/City/County Housing Fund— Yes Nels Bohn, IURA Director 7:15
Disbursement of Funds to Assist 210 Hancock
Street
6) Discussion
a) Exterior Property Maintenance Ordinance No All 7:40
(EPMO) Fines
b) Ithaca Falls Natural Area—Next Steps No All 8:00
c) MH-1 Zoning—New additional material sent No All 8:30
under separate cover
7) Review and Approval of Minutes Yes All 8:35
a) April 2015
b) May 2015 (send under separate cover)
8) Adjournment Yes All 8:40
If you have a disability and require accommodations in order to fully participate, please contact the
City Clerk at 274-6570 by 12:00 noon on Tuesday, June 9t" 2015.
Proposed Resolution
Planning & Economic Development Committee
June 10, 2015
Housing Fund, Funding Round #9 — Authorize Disbursement of $100,000
Pursuant to an Executed MOU
Whereas, pursuant to an executed MOU, the Program Oversight Committee for the
Cornell/City/County Housing Fund recommends that the City of Ithaca approve funding
assistance for the following affordable housing project:
$100,000 210 Hancock Street, a 53-unit affordable rental housing project
located at 210 Hancock Street, Ithaca, NY., and
Whereas, the Housing Fund Program Oversight Committee (POC) met on March 23,
2015, to review recommendations from the Application Review Committee of round #9
funding applications for new affordable housing projects, and
Whereas, the City of Ithaca is represented on the POC by Alderperson J.R. Clairborne,
Chris Proulx, Ithaca Urban Renewal Agency (IURA) member, and Doug Dylla, past
member of the IURA, and
Whereas, the Housing Fund was established in 2009 by Memorandum of Agreement
(MOU) as a six-year program between and among the City of Ithaca, Tompkins County
and Cornell University to raise and award funds to increase the supply of permanently
affordable housing in the County, and
Whereas, the Common Council determined that City contributions to the Housing Fund
should be used to assist projects located within the City of Ithaca, and
Whereas, City funds committed to the Housing Fund are derived from Gateway Loan
proceeds that originated from sale of City-owned land for the Eddygate project, and are
held by the IURA, and
Whereas, the POC recommends round #9 funding of $200,000 for the following project:
Round #9, Housing Fund - Recommended Funding Awards
Applicant Project #Afford. Location Fundin $1,OOOs
Units Cornell ! Count .. City Total
Ithaca 210 Hancock 210 Hancock
Neighborhood St. - New 53 rental St., City of 100 0 100 200
Housing Construction Ithaca
Services
Totals 1 1 53 1 1 100 0 100 200
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Whereas, on May 26, 2015, the City of Ithaca Planning and Development Board, acting
as lead agency in the environmental review of this project, determined the project will
result in no significant impact on the environment , and
Resolved, that the Common Council for the City of Ithaca hereby authorizes an
expenditure of up to $100,000 to support the 210 Hancock St. affordable housing
project pursuant to the executed MOU, and be if further
Resolved, that such funds shall be derived from Gateway Loan Proceeds held by the
Ithaca Urban Renewal Agency, and be it further,
Resolved, that the Mayor is authorized, subject to advice of the City Attorney, to
execute a fiscal agency agreement with Tompkins County to implement this resolution.
jAcommunity development\policy\housing\cornell collaboration\round 9\reso pedc housing fund round#9 disburse funds 5-13-15.doc
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MEMORANDUM OF UNDERSTANDING AMONG THE COUNTY OF TOMPKINS, THE CITY
OF ITHACA,AND CORNELL UNIVERSITY WITH REGARD TO THE COMMUNITY
HOUSING AFFORDABILITY PROGRAM AND THE COMMUNITY HOUSING TRUST
PROGRAM OF THE HOUSING FUND
WHEREAS, the signatories of this Memorandum of Understanding wish to develop and administer the
Housing Fund to be used to meet affordable housing needs throughout Tompkins County, the goal of the
Housing Fund being to assist communities and organizations throughout Tompkins County to respond to
the diverse affordable housing needs of its residents, and
WHEREAS, the community has developed the Community Housing Collaborative,which outlines a
series of housing programs that can be implemented through a collaborative effort between Cornell
University and the Tompkins County community to implement the Housing Strategy for Tompkins
County, which seeks to produce a substantial amount of new housing for lower- and middle-income
families in conformance with adopted municipal comprehensive plans and strategic plans, and
WHEREAS, in establishing the Housing Fund, the signatories recognize the benefits of providing funds
to experienced for-profit and not-for-profit developers for pre-development costs through the Community
Housing Affordability Program; and funding through the Community Housing Trust Program for the cost
of land, provided that the housing units developed with those funds on that land remain permanently
affordable through the Community Housing Trust, or such other program or entity meeting the housing
initiative objectives as approved by the signatories,
NOW, THEREFORE, the signatories agree as follows:
A. The signatories are the COUNTY OF TOMPKINS (hereinafter"County"), the CITY OF ITHACA
(hereinafter"City"), and CORNELL UNIVERSITY(hereinafter"Cornell"), with all signatories
hereinafter jointly referred to as "the participating entities".
B. The Housing Fund consists of related programs, the Community Housing Affordability Program and
the Community Housing Trust Program. The Community Housing Affordability Program is a locally
funded and administered program that assists with the pre-development costs associated with
residential and mixed-use real estate development projects. The Community Housing Trust Program is
designed to ensure that newly constructed or rehabilitated homes remain affordable to future
generations of buyers. Permanent affordability is retained by separating the ownership of the land
from the ownership of the dwelling unit, whereby only the dwelling unit is purchased by the
homebuyers, and by restricting the amount of equity that a homeowner can take from the house upon
sale.
C. A Notice of Funding Availability(NOFA) has been drafted to describe funding opportunities through
the Community Housing Affordability Program and the Community Housing Trust Program,
hereinafter referred to as the "Programs."Applicants for funding consideration will be required to
submit detailed evidence of their qualifications and capabilities in completing similar projects and
successfully delivering new or adaptive-reuse housing from awarded funds that conform to the
affordability objectives described in the Notice of Funding Availability. Funds shall be awarded as
described below in Section G. Applicants will be required to comply with certain measurements and
performance criteria intended to ensure that disbursed funds fulfill the objectives set forth by the
signatories.
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D. The participating entities shall form a Program Oversight Committee made up of three representatives
appointed by each signatory to this Memorandum of Understanding for a total of nine members. It is
suggested that at least one representative be a member of the elected body or senior administration of
each signatory. The remaining seats should include an appointed community member representing a
financial institution with housing lending experience; a real estate development firm or organization; a
representative from an economic development firm or organization or in the case of Cornell
University, a Cornell representative with housing lending,real estate, or economic development
experience. Each participating entity may also appoint one staff member as an ex-officio non-voting
member.
E. The Program Oversight Committee will be responsible for(1) administering the Programs (including
but not limited to finalizing and administering the NOFA document and process)with assistance from
staff of the Tompkins County Planning Department; (2) appointing members to and reviewing
recommendations from the Application Review Committee; and(3) making final funding
recommendations to the participating entities. In addition, the Program Oversight Committee will be
responsible for(4) monitoring the use of funds (5)recommending the conditions for the repayment of
loans; (6) facilitating the formal agreement between the granting entities and the funding recipient,
and(7) developing a template agreement to be used by participating entities for funding of applicants
approved by the Program Oversight Committee.
F. Each participating entity shall have representation on the Application Review Committee. An
Application Review Committee shall consist of members appointed by the Program Oversight
Committee to evaluate and rate applications for funding and provide recommendations to the Program
Oversight Committee on such funding applications. The Application Review Committee members
should include an appointed member representing housing professionals from outside the County and
appointed local professionals with experience in relevant fields such as real estate development,
housing, the building industry, planning, sustainable development, human service needs, or real estate
finance.
G. Participating entities agree to enter into the MOU with the understanding that funds will be provided
based on the recommendations of the Program Oversight Committee, and to enter into grant
agreements with funding recipients in a timely fashion. However, notwithstanding the above, each
participating entity shall have the right to decline use of its own funds for an application
recommended for approval by the Program Oversight Committee that does not, at its sole discretion,
match its housing initiative priorities. In recognition that City residents pay property taxes to the
County,the County agrees not to decline an application for funding solely because the housing project
is located within the City, to the extent permitted by applicable laws and regulations governing use of
County funds paid toward the funding of the NOFA. The decision of the participating entity to decline
support of a project cannot be overruled by the Program Oversight Committee.
H. Each participating entity shall contribute funds in the amounts specified below to be used to capitalize
the Housing Fund. Each participating entity will have custody of and manage its individual
contributions, at its own expense.
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Table 1: Sources of Funds for the NOFA.
Term of MOU Tompkins County City of Ithaca Cornell Total
University
Year 1 $100,000 $100,000 $200,000 $400,000
Year 2 $100,000 ! $100,000 $200,000 $400,000
Year 3 $100,000 $100,000 1 $200,000 $400,000
Year 4 $100,000 $100,000 $200,000 $400,000
Year 5 $100,000 I $100,000 1 $200,000 $400,000
Year 6 $100,000 $100,000 $20fl,000 $400,000
Total Contribution $600,000 $600,000 $1,200,000 $2,400,000
i
I. The COUNTY agrees to:
1. Contribute $600,000 ($100,000 annually per Table 1 during the term of the MOU) toward the
funding of the NOFA.
2. Participate in the Program Oversight Committee to prepare a Notice of Funding Availability
(NOFA) consistent with the scope of funding described in the relevant portions of the
Community Housing Collaborative (Attachment 1) and the Cornell Housing Initiative
(Attachment 2).
3. Make such contribution on the condition all disbursements of funding made from its
contributions are used on proposed housing projects consistent with the municipal program
requirements for the sources of funding and the relevant portions of the Community Housing
Collaborative (Attachment 1).
4. Participate on the Program Oversight Committee throughout the NOFA process.
5. Enter into an agreement for disbursement of funds to approved grant recipients based upon the
template developed by the Program Oversight Committee, and provide a copy of all such
funding agreements to the Program Oversight Committee.
6. Track County funds and matching funds and disburse the funding awards as appropriate for
proposal(s) receiving County funding.
7. Account on a quarterly basis to the other participating entities for disbursement of funds for
the NOFA.
J. The CITY agrees to:
l. Contribute$600,000($100,000 annually per Table 1 during the term of the MOU)toward the
funding of the NOFA.
2. Participate in the Program Oversight Committee to prepare a Notice of Funding Availability
(NOFA) consistent with the scope of funding described in the relevant portions of the
Community Housing Collaborative (Attachment 1) and the Cornell Housing Initiative
(Attachment 2).
3. Make such contribution on the condition all disbursements of funding made from its
contributions are used on proposed housing projects consistent with the municipal program
requirements for the sources of funding and the relevant portions of the Community Housing
Collaborative(Attachment 1).
4. Participate on the Program Oversight Committee throughout the NOFA process.
5. Enter into an agreement for disbursement of funds to approved grant recipients based upon the
template developed by the Program Oversight Committee, and provide a copy of all such
funding agreements to the Program Oversight Committee.
6. Track City funds and matching funds and disburse the funding awards as appropriate for
proposal(s)receiving City funding.
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K. CORNELL agrees to:
1. Contribute $1,200,000 ($200,000 annually per Table 1 during the term of the MOU)toward
the funding of the NOFA.
2. Participate in the Program Oversight Committee to prepare a Notice of Funding Availability
(NOFA)consistent with the scope of funding described in the Cornell Housing Initiative
(Attachment 2) and the relevant portions of the Community Housing Collaborative
(Attachment 1).
3. Make such contribution on the condition all disbursements of funding made from its
contributions are used on proposed housing projects consistent with the Cornell Housing
Initiative (Attachment 2) and the relevant portions of the Community Housing Collaborative
(Attachment 1).
4. Participate on the Program Oversight Committee throughout the NOFA process.
5. Enter into an agreement for disbursement of funds to approved grant recipients based upon the
template developed by the Program Oversight Committee, and provide a copy of all such
funding agreements to the Program Oversight Committee.
6. Track Cornell funds and matching funds and disburse the funding awards as appropriate for
proposal(s)receiving Cornell funding.
L. Additional municipalities, major employers, charitable foundations, or private entities are encouraged
to contribute funding to the Housing Fund. It is the responsibility of the Program Oversight
Committee to oversee the contributions of additional entities. The Program Oversight Committee
may accept or reject contributions at its sole discretion. The Program Oversight Committee will at its
sole discretion determine how funds from additional entities are to be disbursed. In the event an
additional municipality, major employer or charitable foundation who commits to contribute funding
also seeks representation on the Program Oversight Committee, such representation shall be permitted
as follows:
1. A contribution of$50,000 or more to the Housing Fund by an interested municipality, major
employer or charitable foundation will make it eligible to appoint one associate member to the
Program Oversight Committee for the program year in which the contribution is made.
Associate members will not have voting privileges, and their participation on the Program
Oversight Committee will be limited to the discussions regarding the use of their contribution
to fund specific projects.
2. The contributors will agree to disburse funding awards for proposal(s) receiving funding as
directed by the Program Oversight Committee.
M. Funds not expended in one year by any of the participating entities will be rolled over to the following
year and will be available in addition to the participating entity's annual contribution.
N. This MOU shall be effective upon execution by all the participating entities and shall have a term of
six-years.
O. Each participating entity may terminate this MOU for any reason upon thirty(30) days written notice
to the other participating entities. Upon termination, the terminating entity shall honor the funding
obligations in any agreements made by it with funding recipients prior to the date of termination, but
shall have no further obligations under the MOU.
P. Modification: This Memorandum of Understanding may be modified at any time by mutual
agreement of all three signatories. The Program Oversight Committee will review the Notice of
Funding Availability and the Memorandum of Understanding every two years.
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Q. To the extent permitted by law, each participating entity hereby agrees to indemnify,hold harmless
and defend the other participating entities and their respective officers, employees, agents and elected
officials from and against any and all claims and actions brought against the other participating
entities and their respective officers, employees, agents or elected officials, for injury or death to any
person or persons, or for damage to property, arising out of the performance of this Memorandum of
Understanding by the participating entity, its employees, subcontractors, or agents.
R. Participating entities will not discriminate against any employee, applicant for employment, sub-
contractor, supplier of materials or services, or program participant because of actual or perceived:
age, creed, color, disability, ethnicity, familial status, gender, height, immigration or citizenship status,
marital status, national origin, race, religion, sexual orientation, socio-economic status, or weight.
S. The Program Oversight Committee shall adopt, by agreement of at least seven committee members,
initial operating rules that minimally define a quorum as 6 members including at least 2 members
from each participating entity, and specify the minimum number of votes required to take action.
Amendments to the operating rules shall require agreement of at least seven duly appointed committee
members.
Tompkins County
Name:r" J®w
Title: ,
Signature:
Date: ,
City of Ithaca
Name: L It fC i�-i e 1, 5 a
Title: " ct
Signature: Zs '1
r
1
G
Date: Lq _ 6
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Cornell University
Name: �a.�lrc� Sk®r4-tnY,)
Title: 7re*,'c42 vi+ OoY,,ne,1(
Signature:
Date: Im
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Attachment 1
An Excerpt from the Community Housing Collaborative'
June 9,2008
This proposal outlines a set of housing programs that can be implemented through a collaboration
between Cornell University and the Tompkins County community to implement the Housing Strategy for
Tompkins County, which seeks to produce a substantial amount of new housing for lower and middle
income families. The community is broadly defined to include Tompkins County, local governments,
lenders, housing developers and non-profit organizations.
Cornell has offered to contribute up to $10 million over the next decade toward housing programs that
will benefit its staff, faculty, graduate students and area residents. The community can also make
significant contributions of monetary and institutional resources toward housing programs that will
substantially leverage Cornell's investment. Successful implementation of the programs envisioned under
this collaboration could dramatically change housing conditions in Tompkins County by producing up to
775 housing units with a total development cost of$169 million.
Guiding Principles
Tompkins County faces a growing need for additional housing of all types. This deficit mandates a focus
on the development of a substantial number of new housing units over the next ten years.
• All new housing should be developed in conformance with the Tompkins County Comprehensive
Plan and the adopted Housing Strategy for Tompkins County coordinated with local municipal
plans. The plan and its implementation strategy encourage development in urban areas or growth
nodes that are served by public transportation, water and sewer, municipal services and businesses.
• New housing should be developed in locations convenient to major employment centers to
maximize opportunities for residents to commute to work as pedestrians or bicyclists and to
minimize the negative impacts of commuting through traffic on residential neighborhoods.
• New housing development should accommodate the needs of a broad range of household incomes,
types and sizes. Both rental and owner housing should be developed in forms and sizes that
provide more choice than is available today. Mixed income development is highly desired.
• At least 50% of the new housing that is developed should be workforce housing that is affordable
to low-and moderate-income households. All new workforce owner housing should remain
permanently affordable through legally enforceable shared appreciation mechanisms that preserve
affordability of units for future homebuyers, such as a community housing trust.
i The Housing Action Group is an informal group of housing professionals in Tompkins County.At the Mayor's Housing
Forum in summer 2007 the group was tasked with putting together a community housing collaborative.The collaborative was
an outline of the housing initiatives that the community could work on with Cornell University.There was a description of the
programs themselves and a brief discussion of what it would take to accomplish each program.The collaborative was
presented at the December 2007 Mayor's Housing Forum.
It is understood that the proposed housing programs,as described in this document,are accurate as of June 9,2008. It is also
understood that these programs will evolve over time therefore this document serves as a reference point.
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• Current and future Cornell employees and other in-commuters should be provided with financial
incentives to live in Tompkins County, preferably with access to the public transportation system.
• All housing programs should, to the maximum extent feasible, leverage outside funding from
public,non-profit and private sources.
• All new housing should pay a fair share of taxes, or payments in lieu or taxes, so as to not shift the
cost of providing public services and infrastructure to other residents, unless taxes are expressly
abated to induce desired housing development.
• All new housing should utilize green building practices to encourage sensible development
patterns; energy efficiency; the use of sustainable materials; improved environmental health; and
reduction of waste.
Proposed Housing Programs
The following are brief descriptions of housing programs that can be implemented through this
collaboration. While each of these programs could be developed independently of each other, there are
numerous ways that they can complement each other to create a comprehensive approach to housing in
Tompkins County. Initial recommended financial commitments from public and private sources to
establish the Housing Affordability Fund and Housing Trust Fund are provided.
EMPLOYER ASSISTED HOUSING PROGRAM [OMITTED]
HOUSING AFFORDABILITY FUND
Goal: Provide grants or loans to support the pre-development of affordable housing projects.
Type of housing: Available to support the development of any new construction or substantial
rehabilitation project, rental or owner-occupied, that conforms to the guiding principles listed above and
fits into the housing programs described below.
Description: A locally funded and administered fund that assists with the predevelopment costs
associated with affordable or mixed-income housing projects. Eligible uses of the fund would include the
cost of land; environmental assessment; site design; building design; approvals; permits;market studies;
or financing fees. It is expected that the fund will be repaid when the project has been completed and the
permanent financing is in place,but the money could also be forgiven for low-income or mixed income
projects undertaken by a non-profit developer. Eligible borrowers would include both for-profit and non-
profit developers. An oversight board would establish goals for the program; review applications for
funding; and approve loans.
Financing: The fund would be capitalized at $800,000 by commitments for contributions of$200,000
each from Tompkins County and the City of Ithaca and $400,000 from Cornell over the next 6 years. The
County and City funds would be restricted to projects that primarily benefit low-income households.
Who's responsible? An oversight board vested with the authority to make funding decisions on project
proposals, supplemented by staff capable of analyzing projects and creating loan documents. An existing
board such as the IDA or TCAD board, acceptable to funders, may be suited to serve this role.
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Leverage: $400,000 Cornell contribution directly Ieverages $400,000 in funding from local
governments. Predevelopment money for projects potentially leverages other development funding at
ratio of about 1:12.
COMMUNITY HOUSING TRUST FUND
Goal: Create permanently affordable housing units for low- or moderate-income homebuyers.
t
Type of housing: Any form of owner-occupied housing including single family detached; semi-
detached, condominium or cooperative. Either new or existing housing could be brought into the
program.
Description: A community housing trust is designed to maximize the use of valuable development
subsidies by ensuring that homes remain affordable to future generations of buyers. Permanent
affordability for homeowner housing is ensured by separating the ownership of the land from the
ownership of the house (only the house is purchased) and by restricting the amount of equity that a
homeowner can take from the house upon sale. Community housing trust homes rise in value,but at a
slower rate than the conventional housing market. The development process for community housing trust
properties is the same as any other real estate project but the ownership is different. Generally, a non-
profit organization acts as the developer and retains ownership of the land. The houses may be sold using
conventional affordable housing purchase subsidy programs such as grants for down payment and closing
costs or low-interest first mortgage loans. The non-profit retains permanent stewardship of the land and
the enforcement of resale deed restrictions.
Financing: The fund would be capitalized at$1,600,000 by commitments for contributions of$400,000
each from Tompkins County and the City of Ithaca and$800,000 from Cornell over the next 6-years.
Donations of land or financial contributions to assist with the purchase of land are important elements in
reducing housing costs. In addition, a community housing trust requires start-up and on going operating
funding for program management. An$800,000 Cornell contribution over the next six years leverages
$800,000 in funds from Tompkins County and the City of Ithaca. Affordability is achieved through the
use of standard development and purchase subsidies including grants from state or federal sources to
subsidize construction and grants or loans to lower the cost of purchase financing. These subsidies would
be made available through local governments. A community housing trust property that targets a
moderate-income household would utilize conventional development and purchase financing.
Who's responsible? This program will need to be established and administered by a nonprofit
organization that has the capacity for real estate development, marketing, lending and legal oversight.
INHS has initiated the development of a community housing trust and expects to eventually spin off a
separate non-profit operating countywide that is dedicated solely to this mission.
Leverage: Land, including infrastructure, represents about 20% of the total development cost for
residential housing. A contribution of land would leverage other funds on a 1:4 basis. Housing built
under the community housing trust concept could also attract significant subsidies from state and federal
affordable housing programs. The long-term affordability of this housing could require higher than
normal subsidy amounts.
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RENTAL HOUSING DEVELOPMENT[OMITTED]
TAX EXEMPT BOND FINANCING/CREDIT ENHANCEMENT [OMITTED]
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Attachment 2 =
Principles of Cornell Workforce Housing Initiative
.Tune 2008
1. Recruitment/Retention
The primary objectives for the workforce housing initiative are to benefit the future recruitment
and retention of top quality faculty and staff at Cornell and to supplement the University's student
off-campus housing options as applicable, consistent with the University's campus master plans.
2. Housing Stock
Commitment to increase the supply of diversity of housing stock within Tompkins County through
the development of quality, attractive and sustainable residential communities for the benefit of
Cornell and its employees, and the community.
3. Housing Prices
Cornell will work on affordable housing solutions with preference to first-time homebuyers,by
encouraging the development of new projects that increase the housing supply, but do not increase
housing prices.
4. Adjacency/Development
Housing assistance programs funded via the initiative should benefit Cornell employees seeking
homes near the main campus or on public transportation routes.
5. Transportation Strategies
Housing assistance programs funded via the initiative should support the principles of the
transportation-focused Generic Environmental Impact Statement (t-GEIS), increase development
around transportation nodes, and reduce the median commute distance of Cornell employees.
6. Sustainability
Housing assistance programs must contain an array of sustainability factors such as: (a) long-term
affordability to future generations of campus employees and students, (b) environmentally
responsible development, and(c)recycling of Cornell's investments into future projects or
investments.
7. Adaptability
Housing assistance programs and housing development projects funded via the initiative should be
capable of adapting to evolving campus needs. .
8. Community Alignment
Housing assistance programs and housing development projects funded via the initiative should
align with local municipal housing and sustainable nodal development strategies.
9. Leverage funds
The initiative includes collaboration with local municipal sponsors in an effort to leverage local,
state, federal and private funding opportunities to the fullest extent possible for housing assistance
programs and housing development projects funded via the initiative.
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The following resolution was approved by the Rental Housing Advisory
Commission on 20 May 2015
Whereas:
The City of Ithaca has used the Exterior Property Maintenance Ordinance
(EPMO) to penalize property owners for the observed condition of their
property as amended in 2000. Citations for trash, lawn, and sidewalk
maintenance escalate from modest to excessively escalated fines, whether for
major or minor violations, whether the behavior causing said violations were the
responsibility of the property owner or the residents of demised space.
Whereas:
The City abandoned the use of a warning period for the property owner to cure
and correct an EPMO violation.
Whereas:
Although each separate violation of EPMO is a unique event, it is considered a
subsequent violation and escalated fines are imposed.
Whereas:
The City is implementing a new email notification system to aid in timely
remediation of observed conditions.
Therefore:
The Rental Housing Advisory Commission (RHAC) recommends that the
escalation of fines be revised to have the first citation be a zero dollar fine
allowing for the property owner to promptly cure and correct the condition.
Additional fines for the same violation on succeeding days should escalate to $25
for the second day, $50 for the third day, and $100 for the fourth and subsequent
days of said violation. A separate violation, as evidenced by the photography, will
begin a new escalation of fines, but no more than two violations in a six month
period shall have a zero dollar fine.
CITY OF ITHACA
108 East Green Street—3rd Floor Ithaca,New York 14850-5690
DEPARTMENT OF PLANNING,BUILDING,ZONING, & ECONOMIC DEVELOPMENT
Division of Planning&Economic Development
JOANN CORNISH,DIRECTOR OF PLANNING&ECONOMIC DEVELOPMENT
PHYLLISA A. DeSARNO,DEPUTY DIRECTOR FOR ECONOMIC DEVELOPMENT
Telephone: Planning&Development—607-274-6550 Community Development/IURA—
607-274-6559
Email: dgrunder@cityofithaca.org Email: iura@cityofithaca.org
Fax: 607-274-6558 Fax: 607-274-6558
To: Planning and Economic Development Committee
From: Jennifer Kusznir, Economic Development Planner
Date: February 19, 2015
Re: Proposal to Amend Setback Requirements in the MH-1 Zoning District
The purpose of this memo is to provide information regarding a proposal to amend the setback
requirements in the MH-1 zoning district.
The City of Ithaca has one area zoned for mobile homes, Nate's Floral Estates, located in the
Southwest Area of the City. Increased property taxes, the scarcity of quality affordable housing, and
the desire to live in the City, have created a renewed interest and demand for mobile home sites.
The current MH-1 Zoning District has a restriction that states "For mobile home parks: No mobile
home lot shall be located within 50 feet on any existing public way, nor within 30 feet of any other
existing property line. " (Italics added for emphasis.)
As part of the approved site plan for Lowe's, Benderson, the property owner, was required to place
and maintain a wood fence along its northern property line (Nate's southern property line).
Additionally, there is an approximately 60 foot wide vegetated storm water retention swale on the
Lowe's side of the fence. This vegetated swale and fence create a visual buffer between the
commercial property and Nate's, the original intent of the restriction in question.
Staff is proposing that the requirement that does not allow a mobile home within 30 feet of any other
existing property line be eliminated and to the rear yard setback be reduced from "20% or 25 feet, but
not less than 20 feet" to a 10 foot minimum. This would allow several more mobile homes to be
added to the park along the southern property line. (See attached map.)
This proposal was previously discussed at the April Planning and Economic Development meeting.
At that meeting staff was directed to draft and circulate the ordinance for comments. At the request
of the Committee an environmental review of this action has been completed, and the draft Short
Environmental Assessment Form and ordinance are enclosed. The proposed ordinance and
environmental assessment have been circulated to the City Planning Board, the Conservation
Advisory Council, the Board of Zoning Appeals, the Tompkins County Planning Department and
various other City staff and departments. Enclosed are comments that have been received from the
County, which states that this action is not expected to have inter-municipal or countywide impacts.
Also enclosed for your consideration is a resolution establishing lead agency for this action and a
resolution for environmental significance. If you have any concerns or questions regarding any of
this information, feel free to contact me at 274-6410.
An Ordinance to Amend the Municipal Code of the City of Ithaca,
Chapter 325, Entitled "Zoning" to Amend the Setback Requirements
of the Mobile Home (MH-1) Zoning - Declaration of Lead Agency
WHEREAS, State Law and Section 176-6 of the City Code require
that a lead agency be established for conducting environmental
review of projects in accordance with local and state
environmental law, and
WHEREAS, State Law specifies that, for actions governed by local
environmental review, the lead agency shall be that local agency
which has primary responsibility for approving and funding or
carrying out the action, and
WHEREAS, the proposed zoning amendment is an "Unlisted" Action
pursuant to the City Environmental Quality Review (CEQR)
Ordinance, which requires environmental review under CEQR; now,
therefore, be it
RESOLVED, that the Common Council of the City of Ithaca does
hereby declare itself lead agency for the environmental review of
the proposal to Amend the Setback Requirements of the Mobile Home
(MH-1) Zoning District in Order to Reduce the Rear Yard Setback
Requirement to 10' and to Eliminate the Requirement that States
that No Mobile Home May Locate Within 50' of Any Existing Right
of Way or Within 30 Feet of Any Other Property Line.
Draft Resolution
5/7/15
An Ordinance to Amend the Municipal Code of the City of
Ithaca, Chapter 325 , Entitled "Zoning" to Amend the Setback
Requirements of the Mobile Home (MH-1) Zoning - Declaration
of Environmental Significance
1 . WHEREAS, The Common Council is considering to amend the
MH-1 zoning district in order reduce the rear yard
setback requirement to 10' and to eliminate the
requirement that states that no mobile home may locate
within 50' of any existing right of way or within 30' of
any other property line, and
2 . WHEREAS, the appropriate environmental review has been
conducted, including the preparation of a Short
Environmental Assessment Form (SEAF) , dated April 22,
2015, and
3 . WHEREAS, the proposed action is a "Unlisted" Action
under the City Environmental Quality Review Ordinance,
and
4 . WHEREAS, the Common Council of the City of Ithaca,
acting as lead agency, has reviewed the SEAF prepared by
planning staff; now, therefore, be it
1 . RESOLVED, that this Common Council, as lead agency in
this matter, hereby adopts as its own the findings and
conclusions more fully set forth on the Short
Environmental Assessment Form, dated April 22, 2015, and
be it further
2 . RESOLVED, that this Common Council, as lead agency in
this matter, hereby determines that the proposed action
at issue will not have a significant effect on the
environment, and that further environmental review is
unnecessary, and be it further
3 . RESOLVED, that this resolution constitutes notice of
this negative declaration and that the City Clerk is
hereby directed to file a copy of the same, together
with any attachments, in the City Clerk' s Office, and
forward the same to any other parties as required by
law.
ORDINANCE NO.
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF ITHACA,
CHAPTER 325, ENTITLED "ZONING" IN ORDER TO AMEND THE REQUIRED REAR
YARD SETBACK IN THE MH-1 ZONING DISTRICT
WHEREAS,the City of Ithaca has one area zoned for mobile homes,Nate's Floral Estates,
located in the Southwest Area of the City, and
WHERAS,the current MH-1 Zoning District restricts mobile home parks from locating any new
mobile homes within 50 feet on any existing public way or within 30 feet of any other existing
property line, and
WHEREAS, when the MH-1 district was established the required setback was intended to
create a visual buffer between the commercial property and the mobile home residential area,
and
WHEREAS, as a part of the approved site plan for Lowe's, Benderson, the property owner,was
required to place and maintain a wood fence along the property line between Nates Floral Estate,
with an additional 60 foot vegetative storm water retention swale on the commercial side of the
fence, and
WHEREAS, the vegetated swale and fence create a visual buffer between the commercial
property and Nate's, and
WHEREAS, increased property taxes, the scarcity of quality affordable housing, and the desire
to live in the City, have created a renewed interest and demand for mobile home sites, and
WHEREAS, given that physical buffers exist to provide visual protection to the residential area
from the commercial district, and given that there is a high demand for additional mobile homes
on the one mobile home park in the City, Planning staff has recommended removing the
additional setback requirement and reducing the rear yard setback requirement to 10', therefore
BE IT NOW ORDAINED AND ENACTED by the Common Council of the City of
Ithaca that Chapter 325 (Zoning) of the Municipal Code of the City
of Ithaca is hereby amended as follows :
Section 1. Chapter 325, Section 325-8, of the Municipal Code of the
City of Ithaca is hereby amended in order to amend the district
regulations chart, column 11, yard dimensions, in order to
eliminate the front yard setback requirement in the MH-1 district,
that states that no mobile home may be located within 50 feet of
any existing public right of way or within 30 feet of any other
property line; and to amend column 14/15, rear yard setback in
order to reduce the required setback from 200 or 25' to 10' in the
MH-1 zoning district.
Section 2 . Severability. If any section, subsection, sentence,
clause, phrase or portion of this ordinance is held to be invalid
or unconstitutional by a court of competent jurisdiction, then that
decision shall not affect the validity of the remaining portions of
this ordinance.
Section 3. Effective date. This ordinance shall take effect
immediately and in accordance with law upon publication of notices
as provided in the Ithaca City Charter.
CITY OF ITHACA SHORT ENVIRONMENTAL ASSESSMENT FORM (SERF)
��baPoedii%'�
Proiect Information
(to be completed by applicant or project sponsor)
1. Applicant/Sponsor: City of Ithaca 2. Project Name: Amendment to Setback
Requirements in MH-1 Zoning District
3. Project Location: MH-1 Zoning District
4. Is Proposed Action:
O New 0 Expansion 0 Modification/Alteration
5. Describe project briefly: Proposed amendment is to eliminate the front yard setback
requirement in the MH-1 district that states that mobile homes cannot locate within 50 feet of
any public right of way or within 30 feet of any other existing property line; and to also reduce
the rear yard setback to a 10-foot minimum
6. Precise Location (road intersections, prominent landmarks, etc., or provide map):
MH-1 Zoning District
7. Amount of Land Affected:
Initially: —30 Acres Ultimately: —30 Acres
8. Will proposed action comply with existing zoning or other existing land use
restrictions?
O Yes 0 No If no, describe briefly: Action is an amendment to the current
zoning requirements
9. What is present land use in vicinity of project:
❑ Residential Q Industrial 0 Agricultural ❑ Parkland/Open Space
C✓f Commercial 0 Other
Describe:
10. Does action involve a permit/approval or funding, now or ultimately, from
governmental agency (federal/state/local): 0 Yes O No
If yes, list agency name and permit/approval type: Common Council Adoption
11. Does any aspect of the action have a currently valid permit or approval?
O Yes Q No
If yes, list agency name and permit/approval type:
12. As a result of proposed action, will existing permit/approval require modification?
O Yes Q No
I certify the information provided above is true to the best of my knowledge.
PREPARER'S SIGNATURE:'` ' f'` `- - DATE: 4/22/15
PREPARER'S TITLE: Senior Planner
REPRESENTING: —City of Ithaca
SHORT ENVIRONMENTAL ASSESSMENT FORM
Part II
To Be Completed By Staff
In order to answer the questions in this Short Environmental Assessment Form(SEAF),the preparer is to use
currently available information concerning the project and the likely impacts of the action.
Yes No
1. Will project result in a large physical change to the project site or physically alter ❑ X
more than one acre of land?
2. Will there be a change to any unique or unusual land form found on the site or to any ❑ X
site designated a unique natural area or critical environmental area by a local or state
agency?
3. Will the project alter or have any effect on an existing waterway? ❑ X
4. Will the project have an impact on groundwater quality? ❑ X
5. Will the project affect drainage flow on adjacent sites? ❑ X
6. Will the project affect any threatened or endangered plant or animal species? ❑ X
7. Will the project result in an adverse effect on air quality? ❑ X
8. Will the project have an effect on visual character of the community or scenic views ❑ X
or vistas known to be important to the community:
9. Will the project adversely impact any site or structure of historic,pre-historic, or ❑ X
paleontological importance or any site designated a local landmark or in a landmark
district?
10. Will the project have an effect on existing or future recreational opportunities? ❑ X
11. Will the project result in traffic problems or cause a major effect to existing ❑ X
transportation systems?
12. Will the project cause objectionable odors,noise, glare,vibration, or electrical ❑ X
disturbance as a result of the project's operation during construction or after
completion?
13. Will the project have any impact on public health or safety? ❑ X
14. Will the project affect the existing community by directly causing a growth in ❑ X
permanent populations of more than 5 percent over a one-year period OR have a
negative effect on the character of the community or neighborhood?
15. Is there public controversy concerning theproject? ❑ X
If any question has been answered YES, a completed Full Environmental Assessment Form(FEAF) is
necessary.
PREPARER'S SIGNATURE: - DATE: 4/22/15
PREPARER'S TITLE: _Senior Planner
REPRESENTING: City of Ithaca
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Tompkins County
DEPARTMENT OF PLANNING
121 East Court Street
Ithaca,New York 14850
Edward C.Marx,AICP Telephone(607)274-5560
Commissioner of Planning Fax(607)274-5578
May 7,2015
Jennifer Kusznir,Economic Development Planner
Department of Planning and Development
City of Ithaca
108 East Green Street
Ithaca,NY 14850
Re: Review Pursuant to §239-1 and-m of the New York State General Municipal Law
Action: Proposal to Amend Setback Requirements in MH-1 Zoning District
Dear Ms.Kusznir:
This letter acknowledges your referral of the proposal identified above for review and comment by the
Tompkins County Planning Department pursuant to §239-1 and-m of the New York State General Municipal
Law. The Department has reviewed the proposal,as submitted, and has determined that it has no negative inter-
community, or county-wide impacts.
Please inform us of your decision so that we can make it a part of the record.
Sincerely,
t
Edward C.Marx,AICP
Commissioner of Planning
Inclusion through Diversity
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.
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 filed, 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.
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
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. MILK Jr./E. State Street (Urban Renewal
Project), and
WHEREAS, Lighthouse seeks to acquire property located at 320-324 E. MILK 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. MILK 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. MILK 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. MILK 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
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 Term 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. MILK Jr./E.State Street, Ithaca, NY(tax parcels#69.4-3 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& • Quarterly employment and wage reporting shall be submitted quarterly to
Wage Reporting: 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 Purchaser may apply to Seller for a modification to the number of FTE jobs to
Modification: 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.
3/26/15 Canopy Hotel Term Sheet(page 2 of 3 pages)
Urban Design:
Prohibit use of the following exterior building fagade 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 • Publicly designate three (3) 15-minute loading spaces for public use that
public parking provides an ADA accessible route to the CSMA building elevator entrance
Participation in • Offer the hotel as a job training site for participants in the Hospitality
IURA-sponsored job Employment Training Program (HETP). The hotel shall make at least one
training programs: 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: 2.9S%as of 3/S/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
Deterfllination 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 couldbe
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 beUer 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-I 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 waiting 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.