HomeMy WebLinkAboutMN-IURA-2016-08-25Approved: 10/27/16
108 East Green Street
Ithaca, New York 14850
(607) 274-6559
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MINUTES
ITHACA URBAN RENEWAL AGENCY
Common Council Chambers, City Hall
8:30 A.M., Thursday, August 25, 2016
Members: Svante Myrick, Eric Rosario, Karl Graham, Chris Proulx, Tracy Farrell, Stephen Smith
(Common Council Liaison)
Excused: None
Staff: Nels Bohn, JoAnn Cornish, Charles Pyott
Guests: None
I. Call to Order
Chair Myrick called the meeting to order at 8:35 A.M.
II. Agenda Additions/Deletions
No changes were made to the agenda.
III. Public Comment
None.
IV. Review of Draft Meeting Minutes: May 26, 2016
Rosario moved, seconded by Graham, to approve the May 26, 2016 meeting minutes, with no
modifications.
Carried Unanimously 5‐0
V. Neighborhood Investment Committee (NIC)
A. 2016 Appointment of Committee Chairperson
Moved by Farrell, seconded by Rosario:
2016 Appointment of IURA Neighborhood Investment Committee Chairperson
WHEREAS, IURA By‐laws provide that the committee membership shall elect its own committee
Vice‐Chairperson and nominate a candidate for committee Chairperson for consideration by the
Agency, and
Ithaca
Urban
Renewal
Agency
IURA Minutes
August 25, 2016
Page 2 of 7
WHEREAS, per the Bylaws, an Agency member shall fill either the committee Chairperson or
committee Vice‐Chairperson position, and
WHEREAS, officers of each committee serve a one‐year term, but continue to hold office until
their successor is selected or appointed, and
WHEREAS, the current Committee Chairperson and Vice‐Chairpersons are Tracy Farrell and Karl
Graham, and
WHEREAS, the Committee elected Tracy Farrell as Vice‐Chairperson and nominated Karl Graham
as Chairperson of the NI Committee, now, therefore be it
RESOLVED, that Karl Graham be appointed as Chairperson of the IURA Neighborhood Investment
Committee.
Carried Unanimously 5‐0
B. Committee Chairperson Report
Farrell reported the primary subject of Committee discussion was finding a replacement for former
Community Development Planner Lynn Truame.
Bohn added the Committee also discussed options for the disposition of the 402 S. Cayuga Street
property. He recently received an e‐mail from Habitat for Humanity indicating it is prepared to
submit a proposal to the Committee for an affordable homeownership project on the site.
VI. Governance Committee (GC)
A. Amendment to Legal Services Contract: Ruswick
Rosario explained that Richard Ruswick conducted the legal review for IURA funding agreements
associated with the 210 Hancock Street housing project. Ruswick’s original legal services contract
includes a maximum $5,000 expenditure cap, so a resolution is needed to approve the additional
expenditure. The project owner has already paid the legal costs, so the amendment is cost‐neutral
for the IURA.
Bohn added that It was very complicated project (involving a total of 3 IURA loans and 5 attorneys),
which increased the legal fees.
Moved by Rosario, seconded by Farrell:
Procurement of Independent Legal Services: Ruswick —
Increase Contract Amount to Cover Expenses Incurred on 210 Hancock Street Project
WHEREAS, the IURA contracted for legal services with Richard P. Ruswick at Levene Gouldin &
Thompson, LLP in both 2015 and 2016 for a total amount not to exceed $5,000, and
IURA Minutes
August 25, 2016
Page 3 of 7
WHEREAS, Ruswick was assigned to conduct legal review on IURA funding agreements for the
210 Hancock Street project, a Low‐Income Housing Tax Credit project (LIHTC), and
WHEREAS, IURA legal costs incurred on IURA funding agreements to assist LIHTC (LIHTC) projects
are paid by the project sponsor, and
WHEREAS, LIHTC projects involve multiple funding sources, multiple attorneys, syndication and a
complicated ownership pattern that collectively generate extensive and complicated documents
for legal review to ensure compliance with applicable CDBG and HOME regulations, and
WHEREAS, Ruswick incurred a total of $18,744 in legal expenses to complete review of the 210
Hancock project, and
WHEREAS, the project owner paid out IURA legal costs at the project closing, but the IURA
independent contract with Ruswick requires an amendment to accommodate actual legal costs
incurred beyond the maximum authorized amounts contained in the legal services contracts, and
WHEREAS, the IURA Governance Committee considered this matter at their August 19, 2016
meeting and recommended the following action; now, therefore, be it
RESOLVED, that the IURA Chairperson is hereby authorized, upon review of legal counsel, to
execute contract amendments for independent contractor legal services with Richard P. Ruswick
at Levene Gouldin & Thompson, LLP not to exceed an additional $18,744 to account for legal
services incurred on the 210 Hancock Street project, and be it further
RESOLVED, that the source of such funds for legal services shall be derived from revenues
received from the 210 Hancock Street project sponsor.
Carried Unanimously 5‐0
B. Response to Community Development Planner Staff Vacancy
Rosario reported the Committee discussed Community Development Planner Lynn Truame’s recent
resignation and it drafted a resolution authorizing the job search. It also reviewed the draft job
description and discussed if the strategic emphasis on housing should remain. The Committee strongly
endorsed retaining the emphasis on filling the position with someone who has interest and skills to
address affordable housing issues.
Rosario indicated Committee member Kathy Schlather agreed to serve on the search committee. The
Committee also recommended Farrell for the search committee.
Farrell agreed to serve on the search committee.
IURA Minutes
August 25, 2016
Page 4 of 7
Moved by Rosario, seconded by Graham:
Authorize Job Search to Hire Community Development Planner
WHEREAS, the Community Development Planner (CD Planner) resigned effective August 12, 2016 to
take another job, and
WHEREAS, the CD Planner performs critical work functions for the IURA to achieve its mission and
meet its obligations to administer the HUD Entitlement Grant program, and
WHEREAS, IURA management recommends hiring a full‐time staff person to respond to the staff
vacancy and meet the work load, and
WHEREAS, the IURA desires to retain internal personnel capacity to perform critical work functions,
and
WHEREAS, at their August 19, 2016 meeting, the IURA Governance Committee concluded that
seeking a candidate with strong housing credentials will best advance the IURA mission, and
WHEREAS, IURA Governance Committee member Kathy Schlather has agreed to serve on a search
committee; now, therefore, be it
RESOLVED, that the IURA adopts the attached job description for the Community Development
Planner position dated 8/19/16, and be it further
RESOLVED, the IURA hereby authorizes the Executive Director, or her designee, to advertise, form a
search committee, conduct interviews, and recommend a preferred candidate to fill a full‐time,
permanent Community Development Planner position with the salary to be determined depending
on qualifications, and be it further
RESOLVED, that IURA member Tracy Farrell shall serve on the search committee, and be it further,
RESOLVED, any employment offer shall be subject to approval of the IURA.
Carried Unanimously 5‐0
C. IURA Strategic Planning Report
Bohn reported the IURA closed on the sale of its property to the Hilton Canopy hotel, which sold for
$1.8M, broken down into a single $400,000 cash payment with the remainder due as loan payments
to the IURA and City. The loan repayment would generate approx. $33,000 a year for the IURA,
over the next 20 years — a significant source of Program Income to compensate for decreasing
Federal funding, thereby fulfilling one of the IURA’s strategic planning objectives. The project
owner met all IURA conditions for the sale.
IURA Minutes
August 25, 2016
Page 5 of 7
Cornish reported the new Ithaca Marriott Hotel has been experiencing difficulty filling many of its
hospitality‐oriented employment positions.
D. IURA Financials Report: July2016
Rosario indicated the financials are generally in very good condition, including the spend‐down
ratio.
Bohn reported the Downtown Ithaca Alliance’s (DIA) Business Boost program is closing out. It never
enrolled enough eligible applicants to receive the full funding amount from the IURA. Some
enrollees participated in parts of the program, but did not complete it. The IURA agreement limited
funding to participants who implemented tangible on‐line marketing, such as a new web site. The
program was funded with IURA Program Income, so any remaining funds will simply be rolled back
into the CDBG fund.
Farrell observed the Learning Web’s Housing Scholarship program appears to be particularly slow in
spending its funds. Bohn replied the program experienced delays due to a lack of participating
landlords and a decrease in Federal funding, so the Learning Web reduced its IURA funding request
and IURA staff has been working with it to keep the program moving forward.
Rosario reported that lease payments are also generally in good condition. Evaporated Metal Films
and Allpro Parking have both made payments since the written report was generated.
Rosario reported IURA loan payments are all current, except the State Theatre and the Finger Lakes
School of Massage, which both recently made payments.
E. Committee Chairperson Report
None.
VII. Economic Development Committee (EDC)
A. Restore NY4 Grant Report
Bohn explained the Restore New York Communities Initiative provides municipalities financial
assistance to revitalize commercial and residential properties. The City can only submit a single
Restore New York application for an award of up to $500,000 to fund a single project that may include
multiple properties as part of a thematic package. The City is competing against all other communities
in the state, for a total of $50M, so it is highly competitive.
The IURA received various project proposals, which the Committee narrowed down to the two
following separate packages of multiple properties:
State Street Historic Buildings Rehabilitation — 129 E. State St., 121 W. State St., & 310 W. State St.
Seneca/Corn Street Buildings Rehabilitation — 109 N. Corn St. & 413‐15 W. Seneca St.
IURA Minutes
August 25, 2016
Page 6 of 7
After its initial introduction to the various proposals, the Committee asked the applicants for additional
information to facilitate the Committee’s decision on which of the two would have a better chance of
funding. The Committee eventually agreed to recommend the Seneca/Corn Street Buildings
Rehabilitation project to the Planning & Economic Development Committee of Common Council.
Bohn also reported the IURA just received a loan application from Liquid State Brewing Company, Inc.
for loan assistance for a start‐up craft micro‐brewery and taproom at 527 W. Green Street.
B. Committee Vice‐Chairperson Report
None.
VIII. Other/New/Old Business
A. IURA Chairperson Report
None.
B. Common Council Liaison Report
Smith reported that Common Council recently discussed the possibility of funding a potential
consolidated “Center of Government” City facility, which would combine several City departments into
a single campus. The City needs to identify all the associated costs, land values, etc., before making a
decision.
D. Staff Report
Bohn reported that the housing study (“A Residential Analysis in Downtown Ithaca, New York”) by
Danter Company, LLC is moving forward. There will be a public presentation of the findings, organized
by Tompkins County and the Downtown Ithaca Alliance (DIA), on September 6, 2016 at the Tompkins
County Public Library.
Bohn reported that the City did not get selected for the TIGER (Transportation Investment Generating
Economic Recovery) grant, for its Collegetown and Stewart Avenue “complete streets” reconstruction
project proposal. Only 39 projects were funded nationwide, representing under 7% of the number of
applications. There has been some discussion of possibly finding another funding source (e.g., Upstate
Revitalization Initiative) for the project.
Bohn reported that the Hilton Garden Inn is being sold. The IURA holds a $600,000 loan for the hotel,
from 2003, which will either be paid in full or assigned to the new owner with IURA consent. To date,
no request for assignment has been received.
IURA Minutes
August 25, 2016
Page 7 of 7
Bohn reported that Tompkins County Legislator Martha Robertson and the Park Foundation have been
spearheading a recent effort to organize a local housing summit, including representatives from the
City, County, and Cornell University. The goal of the summit will be to take information from
forthcoming housing study and identify an agreed‐upon framework for taking proactive steps to
address the local affordable housing crisis.
IX. Adjournment
The meeting was adjourned by consensus at 9:45 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.
j:\community development\admin files\minutes\iura\2016\08‐25‐16 iura minutes ‐ draft nb.doc