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HomeMy WebLinkAboutMN-IURAED-2022-05-17Approved: 6/7/22 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY Economic Development Committee (EDC) 3:30 P.M., Tuesday, May 17, 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 3:34 P.M. II.Agenda Additions/Deletions None. III. Public Comments (3-minute max. per person) Proulx reported the following Public Comment (verbatim) was received from Todd Kurzweil from Sunny Days, regarding today’s agenda item “VI. A. Inlet Island Urban Renewal Project — Update:” “Sunny Days is being sued by The Ithacan Developer Please consider an independent investigation into that DDA approval after Ithaca College came into The Ithacan project on or about October 2020. I contend Common Council should have been the deciding body to accept/approve any alterations to The Ithacan DDA that included Ithaca College at 215 East State Street.” IV.Review of Meeting Minutes: March 8, 2022 Dylla moved, seconded by Ackerman, to approve the minutes, with no modifications. Carried Unanimously:3-0 IURA EDC Meeting Minutes May 17, 2022 Page 2 of 11 V. New Business A. East Hill Fire Station Urban Renewal Project Bohn explained the proposed resolution was drafted as a result of the City’s investigation into options for relocating the East Hill Fire Station at 309 College Avenue, for which the City received a $1M Empire State Development (ESD) grant, and as more fully described in the City Acting Director of Planning and Development’s (Lisa Nicholas) April 13, 2022 memorandum to the Planning & Economic Development Committee (PEDC): “The purpose of this memo is to provide information about a proposal for a new East Hill Fire Station at 403 Elmwood Ave/408 Dryden Rd to replace the existing facility at 309 College Ave (Fire Station No. 9). We have provided location maps, renderings and floor plans, cost and revenue estimates, a projected approval and construction schedule and other materials. Also enclosed are two proposed resolutions, for discussion only. The first authorizes the Mayor to exercise the option agreement for purchase and sale of the properties in question, while the second authorizes the transfer of 309 College Ave to the for the purpose of undertaking a negotiated acquisition and sales agreement. The proposal and resolutions will be discussed at the April 20, 2022 PEDC meeting. This proposal culminates nearly eight years of work by multiple City departments and the . In 2015, the Fire Station #9 Existing Building Condition Survey and New Building Concept, was completed by Kingsbury Architecture et.al (Executive Summary attached). The study concluded that Station No. 9 would require an investment of $1.5 million to renovate its outdated mechanical and electrical systems. Due to escalating real estate costs and development opportunities in central Collegetown, it seemed clear that the best option was to sell the existing building for redevelopment and use the proceeds for a new fire station in a different location. To that end, the City issued a Request for Expressions of Interest (RFEI) in 2015 and again in 2018 to solicit developers interested in redevelopment of 309 College Ave. 311 CA Associates, LLC was selected to explore acquisition of the 309 College Ave site in exchange for cash consideration and an alternative site for the East Hill Fire Station. Between 2018 and 2021, an internal team explored nine potential sites. All, with the exception of 403 Elmwood/408 Dryden, were found to be unworkable due to size constraints, location, sale price, and other factors. In the last several months we have made progress in acquisition and design of the site at 403 Elmwood/408 Dryden. With the support of Common Council, staff negotiated a binding option agreement with 311 CA Associates LLC. This was followed by an executed Option Agreement between the City and the developer in late February 2022, providing the City with the right, but not the obligation, to sell the existing station in exchange for $5.1 million plus the two parcels of land on which the proposed new station would be sited, all on the terms more particularly specified in the option agreement. Finally, the developers have acquired both properties. Preliminary design work has also been completed to determine the footprint and layout of the building as well as the expected site work, building style and materials.” IURA EDC Meeting Minutes May 17, 2022 Page 3 of 11 Bohn noted the Option Agreement’s expiration date is October 15th, 2022, by which time the Common Council would like the IURA to have reviewed the terms of the Option Agreement and produce a proposed Disposition & Development Agreement (DDA) for the project, in alignment with the following project schedule: Dylla asked if the Ithaca Fire Department (IFD) has been involved in the decision-making process at any point. Bohn replied, yes (as well as Planning Department staff and the City Attorney). An extensive analysis was conducted to identify IFD response times at various potential locations throughout the City. IURA EDC Meeting Minutes May 17, 2022 Page 4 of 11 Ackerman asked what factors the Committee should focus on as it moves forward. Bohn replied the Committee should review the two RFEI responses, evaluate whether the sale price is reasonable for the City, and identify any neighborhood impacts. Ackerman asked if there has been any significant engagement with the community regarding the two potential sites. Bohn replied community engagement was very limited prior to the Option Agreement being executed. Since that time, meetings have been held with the Collegetown Neighborhood Council and Belle Sherman-Bryant Park Civic Association. A Public Hearing was also held at the April 2022 PEDC meeting, at which one or two comments were made. There will also be opportunities for Public Comment at future Committee and IURA Board meetings, including at least one formal Public Hearing. Ackerman moved, seconded by Dylla: East Hill Fire Station Urban Renewal Project: Accept Transfer of Property & Assignment of Option to IURA to Structure Proposed Disposition & Development Agreement (DDA) WHEREAS, the City of Ithaca Common Council desires to relocate the East Hill Fire Station, also known as Fire Station #9, currently located at 309 College Avenue, and WHEREAS, in connection with the relocation and to raise funds for the construction of the new station, the City seeks to sell the existing 309 College Avenue parcel, which will be decommissioned as a fire station following the relocation, and WHEREAS, the City issued Requests for Expressions of Interest (“RFEI”) regarding the 309 College Avenue site on July 12, 2018, and February 5, 2021, and WHEREAS, the City received and reviewed responses submitted to the RFEIs, and WHEREAS, 311 CA Associates, LLC (“Developer”) expressed interest through the RFEI process in acquiring the existing 309 College Avenue site in exchange for cash consideration and an alternative site for the East Hill Fire Station, and WHEREAS, the City entered into an option agreement with Developer dated February 22, 2022 (“Option Agreement”) that permits, but does not require, the City to sell 309 College Avenue to Developer in exchange for two parcels located at 403 Elmwood Avenue and 408 Dryden Road in addition to cash consideration of $5.1 million dollars to be paid to the City on the terms contained within the Option Agreement, and WHEREAS, Section 507 of General Municipal Law authorizes disposition of real property without auction or sealed bid via an urban renewal process, and WHEREAS, 309 College Avenue is located within the Ithaca Urban Renewal Project Area, and IURA EDC Meeting Minutes May 17, 2022 Page 5 of 11 WHEREAS, the Common Council requests the Ithaca Urban Renewal Agency (“IURA”) review the terms of the proposed Option Agreement and structure a proposed disposition agreement to relocate the East Hill Fire Station; now, therefore, be it RESOLVED, that the IURA Chairperson, subject to review by the IURA legal counsel, is hereby authorized to execute agreements to (1) accept transfer the 309 College Avenue site from the City via a City/IURA option agreement, (2) accept assignment from the City of the Option Agreement executed between the City of Ithaca and 311 CA Associates, LLC, dated 2/22/22, and (3) execute any other such documents as may be necessary to enable IURA to undertake an urban renewal procedure for a negotiated acquisition and sales agreement to facilitate relocation of the East Hill Fire Station, and be it further RESOLVED, that neither the option to transfer ownership of 309 College Avenue parcel to the IURA nor the assigned Option Agreement with the Developer shall be exercised by IURA, without further approval of the Common Council, and be it further RESOLVED, that IURA shall be reimbursed for all reasonable costs incurred to structure the proposed acquisition and sale agreement. Carried Unanimously: 3-0 B. Reaffirm Cherry Street Extension Urban Renewal Project Bohn explained no action needs to be taken by the Committee today. The purpose of drafting the proposed resolution is to re-submit the developer’s (Urban Core, LLC) February 6, 2020 application and reaffirm the Committee’s support for the project, in light of the amount of time that elapsed since it was originally proposed (just before the global COVID-19 pandemic outbreak). Even though the IURA adopted a resolution at that time, designating Urban Core, LLC as the Qualified and Eligible Sponsor of the project and authorizing execution of an Exclusive Negotiation Agreement (ENA), no agreement was ever executed. The developer, however, remains very interested in pursuing the project, which would essentially remain unchanged, except for a few different partners. Today’s draft resolution was supposed to have been accompanied by updated project information, which was not received. The Committee will need to update the Fair Market Value (FMV) figures listed in the original resolution, which were produced from a 2018 appraisal. Any revenue to the IURA would defray its own expenses and used to fund any future eligible activities (e.g., sell/acquire land or other real property), but it could not be employed for issuing loans or grants. — DRAFT RESOLUTION — Reaffirm Designation of Urban Core, LLC as Sponsor & Approve Exclusive Negotiation Agreement to Potentially Acquire IURA Land at Cherry Street Industrial Park WHEREAS, on February 6, 2020, Urban Core, LLC (Urban Core) submitted an application to be designated as a “qualified and eligible sponsor” (Sponsor) to acquire 6 acres of undeveloped land at the southerly end of Cherry Street owned by the IURA, containing the following tax parcels: IURA EDC Meeting Minutes May 17, 2022 Page 6 of 11 • #100.-2-1-21 • #100.-2-1-23 • #100.-2-1-24 • #100.-2-1-25 • #100.-2-1-26, and WHEREAS, the IURA adopted a resolution designated Urban Core, LLC as a Qualified and Eligible Sponsor to undertake an urban renewal project for sites located at the southerly end of Cherry Street and further authorized execution of an Exclusive Negotiation Agreement (ENA), and WHEREAS, on March 13, 2020, the President of the United States declared a national emergency concerning the coronavirus disease 2019 (COVID-19) pandemic, and WHEREAS, progress on the urban renewal project paused for the pandemic, which has extended into mid-2022, and WHEREAS, Urban Core, LLC has resumed interest in the project and seeks to execute an exclusive developer agreement, and WHEREAS, the original submitted project proposal from Urban Core, LLC was projected to create at least 25 full-time equivalent (FTE) jobs in the hospitality, horticulture and beverage manufacture/retail sectors, expand and diversify the economic base of the community and provide employment opportunities, thereby furthering the goals and objectives of the Urban Renewal Plan, and WHEREAS, the current project continues to include hospitality, beverage manufacture/retail and a horticulture/agriculture uses and generate similar economic activity, although business partners have evolved since 2020, and WHEREAS, the proposal contains the same anchor and similar uses but with different business partners, and WHEREAS, the IURA Economic Development Committee considered this matter at its May 17, 2022 meeting and recommended the following; now, therefore, be it RESOLVED, that the IURA hereby reaffirms its findings, designation, and approvals from its February 27, 2020, meeting to designate Urban Core, LLC a Qualified and Eligible Sponsor for an urban renewal project located at the southerly end of Cherry Street and authorizes the IURA Chairperson to execute a 180-day Exclusive Negotiation Agreement (ENA) with the Sponsor. C. Amendments to Priority Business Loan Fund (PB-LF) — Discussion Proulx explained Knipe has been collaborating with various local stakeholders about potential revisions to the Priority Business Loan Fund (PB-LF), as briefly outlined in Bohn’s May 12, 2022 memorandum to the Committee: IURA EDC Meeting Minutes May 17, 2022 Page 7 of 11 “Deputy Director for Economic Development, Tom Knipe has been meeting with stakeholders to refine the City’s economic development strategy. Through meetings with the Downtown Ithaca Alliance (DIA), the Collegetown Small Business Alliance, and the Small Scale Manufacturing Initiative working group he has identified possible additional business categories to consider make eligible for the Priority Business Loan Fund. Tom writes: There have been several recent conversations about ideas to expand eligibility for the IURA Priority Business Loan Fund. I would like to bring these ideas to your attention and begin a discussion about considering these expansion ideas. Current Eligible Uses: Targeted businesses include pharmacy, grocery, apparel, shoe store, medical practitioner, brewpub, live entertainment venue, tourism attraction, underrepresented restaurant, minority-owned business, and childcare. Target Area: “Density District” (includes Downtown, W. State St., West End, Inlet Island). Ideas for expansion: 1. Geography – consider expanding to Cherry Street; Emerson/Chainworks; and Collegetown for non-food/beverage retail businesses (see Mayor’s letter to Small Business Alliance) 2. Uses – consider expanding include to artisanal manufacturing – to support our SSM initiative. 3. Uses – consider refining the eligible retail types to possibly include these (from 5/6/22 DIA BRD Committee discussion) o Family entertainment/attraction o Additional restaurant types – seafood, wine bar, Polish, 24-hour restaurant, etc. o Veteran-owned businesses o General store o Re-use stores o Home furnishings” (continued on following page) IURA EDC Meeting Minutes May 17, 2022 Page 8 of 11 Knipe explained the “1. Geography” expansion suggestion listed above was inspired by two things: (1) when developing the Small-Scale Manufacturing (SSM) Action Plan, it was observed the Cherry Street area is not included in the Density District; and (2) results of discussions with Collegetown stakeholders about how to improve Collegetown’s business environment, including some short-term beautification projects. (Most suggestions for improving Collegetown’s business environment can be found in the January 11, 2022 memorandum from former Mayor Myrick and Acting Mayor Lewis included in today’s meeting materials.) Knipe noted the thrust of the proposal is to expand the City’s efforts to support Collegetown businesses, including direct loan assistance. While Collegetown businesses benefit from foot traffic and a solid customer base over 8 months of the year, the seasonality and student-focus of the business environment poses challenges to some businesses, which modifying/expanding the PB-LF may help address. The issue of artisanal manufacturing has also come up as a potential focus area for IURA loans. The Downtown Ithaca Alliance’s (DIA) Business Retention and Development (BRD) Committee has been examining the mixture of business types within the existing Business Improvement District (BID), in an attempt to identify gaps/needs. IURA EDC Meeting Minutes May 17, 2022 Page 9 of 11 Bohn added the BID list was originally created by the DIA in 2007. He noted the IURA also has the Community Development-Revolving Loan Fund (CD-RLF) for issuing loans citywide, which newly identified businesses could also qualify for. The only difference is that the PB-LF recognizes a higher risk level (e.g., permitting lower collateral and loan security commitments) and allows for more loan financing for qualifying businesses. He stressed the IURA should take care to ensure the PB-LF remains focused on priority business categories, rather than expanding it to too many types of businesses. Proulx suggested compiling historical data to establish how successful the PB-LF has been. The IURA should also determine how the DIA feels about Knipe’s proposed changes. He added, once the proposed changes have been made, the PB-LF’s geographic focus begins to seem less important, compared to other loan funds. He wondered if the IURA’s loan funds could be structured differently: for example, define all IURA loan funding as citywide, but establish two separate sets of criteria (i.e., a “standard offer” vs. an “enhanced offer”). Bohn remarked it is a great idea to compile data on how successful the PB-LF has been. He added the IURA does have a common pool of economic development loan funds, including the Economic Development Loan Fund (ED-LF), which IURA staff takes into consideration whenever a potential loan applicant approaches the IURA for assistance. The ED-LF, however, has not been deeply funded over the past couple of years. Only ~$220,000 will be available over the next year, so the IURA should avoid over-promising the level of assistance it may be able to provide. Ackerman inquired into what the anticipated timeline would be for finalizing Knipe’s proposal and how the process would unfold. Knipe replied he and Bohn could collaborate on further developing the proposal and return before the Committee at a future meeting. Bohn added they would be sure to include the DIA in the process. Proulx recommended focusing as much as possible on minority-owned and under-represented businesses. VI. Old/Other Business A. Inlet Island Urban Renewal Project — Update Bohn explained when the ENA was executed it established a deadline of 100 calendar days from the receipt of the appraisal (4/29/22) for the developer to submit a detailed proposal and purchase price for the land, since the developer indicated the results of the appraisal (approximately $25/square foot, which translates to a total of ~$2M) would significantly impact how it could develop the property and what kind of amenities could be included. The developer now has until 8/7/22 to submit its proposal. B. IURA Financials Review: March/April 2022 Bohn reported the financials report was delayed by one month, because the IURA only just got its bank statement from M&T Bank. 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). IURA EDC Meeting Minutes May 17, 2022 Page 10 of 11 Bohn noted the IURA will not meet its CDBG spend-down ratio deadline by 6/1/22, although HUD waived the requirement for the IURA this year. All loan payments are current, except GreenStar, 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. All lease payments are also in good standing as of today. C. Staff Report Bohn remarked he will be out-of-town June 10-24th, so he recommended rescheduling the Committee’s June 2022 meeting to June 7th, 2022. No objections were raised. Bohn reported that 2022 HUD Entitlement Program allocations to the City are lower than anticipated for both Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds: CDBG $668,000 (anticipated) $633,333 (awarded) ‒$34,667 (change) HOME $330,000 (anticipated) $316,825 (awarded) ‒$13,175 (change) The reductions will result in the following changes to the 2022 Action Plan: CDBG ‒$6,933.40 Administrative (20% of award) ‒$23,573.56 Catholic Charities Building ‒$1,400.00 No Más Lágrimas ‒$2,760.04 GIAC Computer Lab HOME ‒$1,317.50 Administrative (10% of award) ‒$11,857.50 INHS Homeowner Rehabilitation Bohn reported the loan application for Personal Best Brewing (402 W. Green St.) should be available to review at the Committee’s next meeting. Bohn proposed scheduling a Special Meeting on July 19th, 2022 for both the Committee and IURA Board to meet jointly and discuss the East Hill Fire Station Urban Renewal Project. No objections were raised. IURA EDC Meeting Minutes May 17, 2022 Page 11 of 11 D. Other Items None. VII. Adjournment The meeting was adjourned by consensus at 5:00 P.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.