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HomeMy WebLinkAboutMN-IURAED-2022-03-08Approved: 5/17/22 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY ECONOMIC DEVELOPMENT COMMITTEE (EDC) 3:30 P.M., Tuesday, March 8, 2022 Present: Chris Proulx, Chair; Doug Dylla, Vice-Chair; Leslie Ackerman Excused: Charlotte Hamilton Vacancies: 2 Staff: Nels Bohn; Charles Pyott Guests: Tom Knipe, City Deputy Director for Economic Development I. Call to Order Chair Proulx called the meeting to order at 3:33 P.M. II. Agenda Additions/Deletions None. III. Public Comments (3-minute max. per person) None. IV. Review of Meeting Minutes: February 8, 2022 Dylla moved, seconded by Ackerman, to approve the minutes, with no modifications. Carried Unanimously:3-0 V. New Business A. Draft Small-Scale Manufacturing Action Plan — Discussion Knipe explained the stakeholders group working on the City’s small-scale manufacturing strategy has completed its draft Action Plan. Any feedback from Committee members would be appreciated. The work on the Action Plan began when the City hired ReCast City to develop a strategy and action plan to increase small-scale manufacturing in Ithaca. The stakeholders group collaborated as part of a cohort of three other cities, which met every 2 weeks over the past year. The stakeholders group initiated the process by generating a list of desired outcomes and goals (e.g., economic diversification; living wage jobs; opportunities for business ownership as a tool for local wealth creation; transforming the West End, West State Street, Cherry Street, and former Emerson Power Transmission site into dynamic destinations). The stakeholders group also generated lists of small-scale manufacturers, property owners, and ‘connectors’; and then conducted structured interviews with them about the challenges and strengths of Ithaca from a business owner’s perspective. The process was further informed by a variety of presentations, visits, and conversations with experts from around the country who have done similar work in other communities. IURA EDC Meeting Minutes March 8, 2022 Page 2 of 6 The stakeholders group then distilled all the information it collected into the draft Action Plan. Some of the Action Plan’s proposed projects could be implemented over next 3-16 months. More detailed information can be reviewed in the Action Plan, as excerpted below: Marketing & Branding In 2022, we will establish a brand identity for the small-scale manufacturing community in Ithaca, possibly in collaboration with Visit Ithaca and the Community Arts Partnership to leverage and expand upon an existing brand, “Made in Ithaca”. We will use this brand in several ways. First, we will establish a landing page website that promotes our community’s efforts to support small-scale manufacturers. The primary audience for this website will be small-scale manufacturing business owners. They will be able to sign up to receive information about business development resources and opportunities. Second, we will establish an opt-in program in which any local product-based business can self-certify as being part of the “Made in Ithaca” brand. When eligible businesses sign up, they will receive a design package with logos, style guide and other materials such as window decals that they can use to promote their participation. Third, we will launch a storytelling campaign. Initially, we will spotlight twelve to sixteen local product-based businesses to create buzz and excitement. Community Building Through Storytelling One of the most impactful ways that Ithaca can promote and grow the community of makers is through storytelling: telling the success stories of individual entrepreneurs and startups that are manufacturing their products here in Ithaca. The more successful these startups are, and go on to be, the more our city is known as the place where companies start and grow. We are engaged in our community because we love Ithaca. The stories we will create will provide a depth of connection that creates a meaningful positive connection, and helps grow the maker business community. We will work with our network of partners to spread the stories of these entrepreneurs and startups manufacturing products here in Ithaca, using an approach modeled by Storyvillesocial.com. We envision a 12-16 week campaign with one story published each week, to launch early this summer. Business Development Programming & Funding In 2022, we will provide direct business development assistance to Ithaca product-based businesses. First, we will establish a “Make it in Ithaca Navigator” role by partnering with existing economic development service providers to: ● Organize and promote existing programs and opportunities, such as referrals to Alliance for Manufacturing & Technology manufacturer resources and others, and referral to existing funding programs (details below); ● Connect small scale manufacturers with expert assistance, mentors, and property owners; ● Distribute periodic e-blasts to promote opportunities to the local maker community and product- based business owners. This will be accomplished through existing staff resources at the DIA, City of Ithaca, and IAED; ● Work with Alternatives Federal Credit Union (AFCU) to expand upon their Business Cents workshops with a series of informational sessions focused on SSM needs; and ● Establish a micro-grant program focused on providing direct assistance to SSMs in the target geographic areas of the City. IURA EDC Meeting Minutes March 8, 2022 Page 3 of 6 Navigators & Existing Funding Opportunities for Small-Scale Manufacturers “Make it In Ithaca Navigators” will guide local small-scale manufacturers through the process of accessing assistance to help them start and grow their business. We will use a ‘case-management’ approach to ensuring that local product-based businesses are aware, and able to take advantage of, the rich local business development resources that are currently available. Staff at the DIA, City Office of Economic Development, and IAED already provide this service, so in some ways this navigator role will just be about elevating awareness of this resource. But the navigators will also collaborate to develop new targeted informational resources which can be shared with business owners. They will also cultivate a list of business mentors and help match businesses with willing mentors. Finally, they will help funnel entrepreneurs to existing funding opportunities right here in Ithaca. Zoning to Encourage Small-Scale Manufacturing in Downtown Ithaca We could work with the City Department of Planning and Development to update the City’s zoning to encourage small scale manufacturing uses targeted geographic areas of the City. Artisan zoning is an approach to land use and development that provides space for small-scale manufacturers that produce little to no vibration, noise, fumes, or other nuisances, meaning they can fit within a wide variety of industrial, commercial, and even residential districts. Planning departments don’t always need a total zoning code overhaul to carve out more spaces for these types of businesses. Cities commonly pursue changes or additions to ordinance language instead of drafting new zoning maps from scratch. Startup Support The business development resources proposed for short-term action are aimed primarily at supporting existing product-based businesses. As a next step, we could work to establish new start up assistance tailored to very early-stage entrepreneurs to cultivate new owners and new product-based businesses. CoStarters is a respected national training resource that is expert at partnering with communities to do just that, at low cost to the community, but with high impact in terms of new business ventures launched and success of those businesses. We have met with CoStarters and they are eager to work with us. Dylla remarked the Action Plan seems excellent. Assuming one focus area would be the agri-business sector, he was a little surprised there was no mention of the Ithaca Farmers Market (IFM), which seems an obvious place for food entrepreneurs. Knipe replied that is a good idea. The stakeholders did have recent discussions with IFM about the shared commercial kitchen feasibility study, which IFM may agree to serve as the fiscal hub for. Dylla recalled an experience he had in Portland, Oregon. The City identified locations in various neighborhoods and built semi-permanent ‘food pods’, where food trucks could line up, creating a stepping stone for smaller scale food businesses to establish themselves in a more permanent location, which also served as a nice entrepreneurial food-oriented neighborhood amenity, which he had not seen elsewhere. IURA EDC Meeting Minutes March 8, 2022 Page 4 of 6 Knipe responded the Action Plan intentionally focused first on food-product businesses, which make products that can be replicated, packaged, and sold. It set aside retail food businesses for the time being. Ackerman recalled her experience working with crafts producers and other small producers or manufacturers and the challenge many of them faced was how to sell their products. They could not necessarily get their products into the hands of the people who want them, either because they have not identified those people and how to reach them, or they do not have distribution channels or other venues. She wondered what kind of support system the Action Plan might be able to help establish in terms of assisting people with sales and distribution. Knipe responded that is a good point. The stakeholders group did hear similar concerns in some of its conversations. The Action Plan addresses it in three ways: (1) Working with Alternatives Federal Credit Union (AFCU) to expand its Business CENTS program to conduct workshops and informational sessions targeted to small-scale manufacturers, focusing on areas like distribution, market development, e-commerce, and pricing. (2) A number of established businesses expressed it would have been helpful if they had had the opportunity to talk with people like Knipe in a mentor-like capacity, so he plans to develop a mentor network of local product businesses, including examining supply chain issues. (3) The Alliance for Manufacturing & Technology (AM&T) is involved in the process and it has considerable expertise with these kinds of small manufacturer issues. Proulx asked if there were any other issues that arose from the structured interviews that could not be captured in the Action Plan, because they were too large or complex to be able to solve in the short- term. Knipe responded zoning issues were mentioned in some interviews as a barrier to small manufacturers, as well as barriers that were not zoning-related per se, but other types of regulatory barriers (e.g., building permit process). Knipe explained another challenge is simply the cost of rental space, especially for businesses that need proximity to their markets in more dense/populated areas of the city. It would be best if the City could ensure there is a mix of building types that would be affordable. Proulx remarked in some ways it would be helpful to have an economic development equivalent of Low-Income Housing Tax Credit (LIHTC) funding to subsidize these kinds of economic development projects. He added the Committee has been disappointed not to see many new, genuine economic development proposals. In future HUD Entitlement Program Action Plans, it would be interested to see LMI-owned businesses involved in the application process, as the next step in their development. Ackerman and Dylla agreed. IURA EDC Meeting Minutes March 8, 2022 Page 5 of 6 VI. Old/Other Business A. HUD 2022 Action Plan: Funding Applications Review — Recommendation to IURA Board Project Sponsor Request Summary Green Job Opportunities Through Reuse Training Finger Lakes ReUse, Inc. $61,934.65 Funding for job training for LMI populations and placement of at least 8 LMI adults with employment barriers into permanent unsubsidized positions. Work Preserve Job Training: Job Placements Historic Ithaca, Inc. $67,500.00 Funding for staff salaries and participant stipends leading to job placements of 5 LMI individuals, following job-readiness training. Hospitality Employment Training Program (HETP) Greater Ithaca Activities Center, Inc. $100,000.00 Staff, supplies, stipends, and professional fees to train 10 and place 8 LMI adults with employment barriers into hospitality and office/administrative positions. Bohn explained he has revised his original projection for what would be available to allocate to the Economic Development Loan Fund. The recent $150,000 loan to Finger Lakes ReUse, Inc. (FLRU), which includes $51,974.40 in new funding, will decrease available loan funds to $170,000. Since the IURA currently receives approximately $11,000/month in loan repayments, the available funds would then increase to ~$230,000 by the beginning of the IURA’s Program Year (August 1st). Bohn also recently met with a prospective loan applicant seeking a $100,000 loan for a brewpub project. Assuming that loan is issued, only $130,000 in loan funds would remain, which is relatively little to meet upcoming needs, especially given the economy’s emergence from the COVID-19 pandemic. As a result, he recommends allocating at least $50,000 to the loan fund in 2022. Regarding the Hospitality Employment Training Program (HETP), Bohn noted it currently has approximately $175,000 available to spend from its PY2020 and PY2021 awards, which should be sufficient to sustain it through 2022. HETP should be able to continue operating with a $50,000 allocation in 2022. Proulx remarked that allocating ~$230,000 in total 2022 Economic Development funding seems sensible. No objections were raised. Committee Recommendation Project Sponsor Allocation Summary Green Job Opportunities Through Reuse Training Finger Lakes ReUse, Inc. $61,934.65 Funding for job training for LMI populations and placement of at least 8 LMI adults with employment barriers into permanent unsubsidized positions. Work Preserve Job Training: Job Placements Historic Ithaca, Inc. $67,500.00 Funding for staff salaries and participant stipends leading to job placements of 5 LMI individuals (e.g., youth, adults, homeless, formerly incarcerated, people with disabilities/mental illness, people with barriers to employment, new entrants to workforce), following job-readiness training. Hospitality Employment Training Program (HETP) Greater Ithaca Activities Center, Inc. $50,000.00 Staff, supplies, stipends, and professional fees to train 10 and place 8 LMI adults with employment barriers (e.g., people with disabilities, formerly incarcerated, homeless, recovering addicts, immigrants, single parents) into hospitality and office/administrative positions. Economic Development Loan Fund IURA $50,000.00 Total: $229,434.65 IURA EDC Meeting Minutes March 8, 2022 Page 6 of 6 B. IURA Financials Review: January 2022 Bohn reported all CDBG and HOME projects are in good standing in terms of expenditures and overall progress, with the exception of a few slow moving CDBG-CV projects (e.g., Salvation Army’s homeowner mortgage payment assistance project. All loan payments are current, except the Canopy Hotel, which owes interest-only payments for one month in 2020, and Diane’s Downtown Auto, which had otherwise been doing well for several years. Tompkins Community Action also had a problem with mail service, but he does not believe that should be a serious issue. Lease payments are also in good standing, with the exception of Southside Community Center (SCC). C. Staff Report Bohn noted that HUD’s Annual Community Assessment (ACA) Report, covering August 1, 2020-July 31, 2021, is contained in the meeting agenda packet. It concludes: 1. The City has carried out its program substantially as described in its Consolidated Plan submission. 2. The Consolidated Plan submission as implemented complies with the requirements of the Housing and Community Development Act of 1974, and other applicable laws and regulations. 3. The City has the continuing capacity to carry out the approved program in a timely manner. D. Other Proulx remarked that he is committed to filling the Committee vacancy relatively soon. Bohn recalled Hamilton had suggested Heather Sanford to fill the vacancy. VII. Adjournment The meeting was adjourned by consensus at 4:43 P.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.