Loading...
HomeMy WebLinkAboutMN-IURA-2022-06-23108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY 8:30 A.M., Thursday, June 23, 2022 Members: Chris Proulx, Chair; Karl Graham, Vice-Chair; Laura Lewis (Acting Mayor); Rob Gearhart, Common Council Liaison; Lisa Nicholas, Director of Planning & Development Excused: Tracy Farrell Staff: Anisa Mendizabal; Charles Pyott Vacancies: 1 Guests: Donna Fleming (former Common Council member) I. Call to Order Chair Proulx called the meeting to order at 8:35 A.M. II. Agenda Additions/Deletions None. III. PUBLIC HEARING: East Hill Fire Station Urban Renewal Project On a motion by Lewis, seconded by Graham, and unanimously approved, Chair Proulx opened the Public Hearing. No Public Comments were made. On a motion by Lewis, seconded by Graham, and unanimously approved, Chair Proulx adjourned the Public Hearing. IV. Public Comment (3-min. max. per person) None. V. Review of Meeting Minutes: May 26, 2022 Graham moved, seconded by Lewis, to approve the meeting minutes, with no modifications. Carried Unanimously: 3-0 VI. Neighborhood Investment Committee (NIC) A. HUD Entitlement Grant: Minor Amendment to 2019-2023 Consolidated Plan — Food Banks Graham indicated the purpose of the resolution is to include activities that enhance food security, including food banks, in the Priority Needs list of the 2019-2023 Consolidated Plan. Since he did not attend the Committee meeting, he asked Mendizabal to provide further details. Approved: 7/28/22 IURA Minutes June 23, 2022 Page 2 of 8 Mendizabal explained the 2019-2021 Consolidated Plan includes a list of Priority Needs (e.g., Affordable Homeownership; Job Readiness & Placement; Immigrant Services; Public Infrastructure), which determine the specific types of HUD-approved activities the IURA can implement. Anything on the Priority Needs list can be funded by the IURA at either a low or high Priority Level. HUD does not prescribe how the City/IURA develops its funding priorities. Typically, a Priority Need is categorized as low priority if there are sufficient community resources available to address it. Recently, however, food insecurity appears to have become more of a problem due to the ongoing pandemic. While a significant number of resources were initially available during the pandemic, including Federal Economic Impact Payments, food insecurity continues to persist (further exacerbated by higher inflation), but with fewer currently available resources. Since the adopted 2022 Action Plan includes the No Más Lágrimas “Latino Multicultural Center” food distribution project, the Consolidated Plan needs to be updated to include food banks (and similar food security enhancing programs). Graham moved, seconded by Lewis: Minor Amendment to 2019-2023 Consolidated Plan: Food Banks WHEREAS, 10.5% of American households have experienced food insecurity since the onset of the COVID-19 pandemic, according to such national sources as the United States Department of Agriculture (USDA) and United States Census Bureau, and WHEREAS, rates of food insecurity are substantially higher than the national average for single-parent households and for Black and Hispanic households, and WHEREAS, 35% of people living below the Federal Poverty Level are food insecure, and WHEREAS, some of the local food resources established early in the pandemic have now diminished or been discontinued, and WHEREAS, Economic Impact Payments from the Federal government (“stimulus checks”) available earlier in the pandemic have been discontinued, and WHEREAS, according to U.S. Department of Labor, the national annual inflation rate was 7.0% in 2021 and 8.3% in 2022, now, therefore be it RESOLVED, that the City of Ithaca’s 2019-2023 Consolidated Plan hereby be amended to add programs to enhance food security, including food banks, to the Priority Needs list, as a high priority. Carried Unanimously: 3-0 B. Committee Chairperson Report Graham reported the Committee is still searching for a new member, due to Paulette Manos’ resignation. Mendizabal added the IURA has approximately $17,000 in unexpended CDBG-CV funds to reprogram, so it is reaching out to some of its funded partners for proposals. Applicants would not be required to undertake an intensive application process. The application deadline is: 12:00 p.m., Friday, July 1st, 2022. IURA Minutes June 23, 2022 Page 3 of 8 VII. Economic Development Committee (EDC) A. Urban Renewal Projects 1. Cherry Street: Reaffirm Urban Core, LLC As Sponsor & Authorize Exclusive Negotiation Agreement (ENA) Proulx explained the purpose of the proposed resolution is to re-submit the developer’s (Urban Core, LLC) February 6, 2020 application for designation as a “Qualified and Eligible Sponsor” to acquire 6 acres of undeveloped land owned by the IURA on Cherry Street and reaffirm the Committee’s support for the project, in light of the amount of time that elapsed since it was originally proposed. Even though the IURA Board adopted a resolution designating Urban Core, LLC as project sponsor and authorizing execution of an Exclusive Negotiation Agreement (ENA), no agreement was ever executed. The developer remains very interested in pursuing the project. The current proposal is virtually identical to the original version, including job-creation, light manufacturing, and locally farmed food products in the hospitality, horticulture, and beverage manufacture/retail sectors, and collaboration with other Cherry Street businesses. The project is similar to Urban Core’s other projects (e.g., Press Bay Alley & Court), with a focus on small/micro-enterprises. It would also include a small-scale open site hotel, reminiscent of Firelight Camps. The developer expressed concern that an updated appraisal value could be significantly higher than the original ($400,000). Urban Core also originally anticipated $400,000-$500,000 for its construction budget, but both land values and construction costs have drastically increased since that time, which could place pressure on the project. Assuming the resolution is adopted, Proulx noted, the Committee would examine the Public Benefits (e.g., local labor; job-creation; environmental sustainability/energy efficiency; parking demand management; Living Wage commitment; public open spaces; pedestrian connections; public art, etc.) identified for prior Urban Renewal Projects and determine which would be relevant to this project/site. Proulx moved, seconded by Lewis: Reaffirm Designation of Urban Core, LLC as Sponsor & Approve Exclusive Negotiation Agreement (ENA) 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: • #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 designating 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, 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 IURA Minutes June 23, 2022 Page 4 of 8 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, though business partners have evolved since 2020, and WHEREAS, proposal contains the same anchor 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 authorize the IURA Chairperson to execute a 180-day Exclusive Negotiation Agreement (ENA) with the Sponsor. Carried Unanimously: 3-0 2. East Hill Fire Station Urban Renewal Project: Designate 311 CA Associates, LLC As Sponsor Proulx explained the proposed resolution was drafted as a result of the City’s investigation into options for relocating the East Hill Fire Station, for which the City received a $1M Empire State Development (ESD) grant. At its June 2022 meeting, Common Council authorized the transfer of the property and assignment of option to the IURA. 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 agreement and produce a proposed Disposition & Development Agreement (DDA), in alignment with the following project schedule: IURA Minutes June 23, 2022 Page 5 of 8 Proulx remarked there was much discussion at the Committee about only moving forward with designating 311 CA Associates, LLC as a Qualified and Eligible Sponsor, while excluding the other proposal submitted by Visum Development Group, therefore appearing to give preference to one proposal over the other. Designating 311 CA Associates, LLC as the sponsor, however, does not mean the Committee is precluded from reviewing the other proposal, which the Committee plans to do. The Committee plans to examine the value-added of both proposals in terms of their benefits to the City; and it is not prohibited from also designating Visum Development Group as a sponsor, at some point in the process. Lewis observed, judging from the project schedule, there should be ample opportunity for the public to comment on the project. Graham asked if Visum Development Group will be informed that it may still have an opportunity to develop its project. Nicholas responded she does not believe it has been communicated to Visum Development Group that it is still in the running. She noted one issue with the Visum Development Group proposal was its request for additional height, which was not fully analyzed by the City. Proulx noted the IURA typically asks developers to conform to existing zoning envelopes. Proulx announced a site visit to 309 College Avenue is scheduled for July 15th, 2022 at 12:00 p.m., to which IURA Board members are invited. The Committee will then meet at 3:00 p.m., on July 19th, 2022 (probably in-person), to which IURA Board members are also invited, to fully evaluate both proposals and draft a proposed Disposition & Development Agreement (DDA). Proulx moved, seconded by Lewis: Designate 311 CA Associates, LLC As Qualified & Eligible Sponsor for East Hill Fire Station Urban Renewal Project WHEREAS, on June 3, 2022, 311 CA Associates, LLC (Applicant) submitted an application to be designated a “Qualified and Eligible Sponsor” to potentially acquire the East Hill Fire Station property located at 309 College Avenue through a negotiated disposition process in accordance with urban renewal law, and WHEREAS, in response to a Request for Expressions of Interest (RFEI), issued on February 5, 2021, for an Urban Renewal Project at 309 College Avenue, the City of Ithaca (City) received two proposals from 311 CA Associates, LLC (Applicant) and Visum Development Group, and WHEREAS, the City of Ithaca (City) entered into an option agreement with the Applicant dated February 22, 2022 (“Option Agreement”) that permits, but does not require, the City to sell 309 College Avenue to Applicant 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, on June 2, 2022, the City approved transfer of 309 College Avenue to the IURA, and assignment of the Option Agreement to the IURA, for the purpose of structuring a proposed disposition agreement for consideration by the City of Ithaca Common Council, and IURA Minutes June 23, 2022 Page 6 of 8 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 IURA Urban Renewal Project Boundary Area, and WHEREAS, pursuant to Section 508 of General Municipal Law, the IURA may designate a Qualified and Eligible Sponsor to purchase or lease property from the IURA to undertake an urban renewal project, subject to a determination that a Sponsor meets the following IURA evaluation criteria: • Financial status and stability • Legal qualifications to operate in the State of New York and to enter into contracts with regard to disposition, use, and development of land in question • Previous experience in financing, use, development, and operations of projects of a similar nature • Reputation and proof of fair, reputable, and ethical business practices and record devoid of convictions, and WHEREAS, 311 CA Associates, LLC registered with the New York State Department of State as a domestic limited liability company in 2018 and is authorized to legally operate in New York State, and WHEREAS, per the Option Agreement, the prospective Sponsor has committed to deliver a letter of credit to the City in the amount of $4,500,000 to secure full payment of the purchase price, and WHEREAS, per the Option Agreement, the Applicant verifies ownership control of property located at 403 Elmwood Avenue and 408 Dryden Road, which properties are assessed at $2.5 million, and WHEREAS, the Sponsor team is led by Philip Proujansky who has extensive development and financing experience in Tompkins County as Managing Partner of the Integrated Acquisition and Development Corporation, including the Catherine Commons, College Circle, and the Breazzano Center projects, and WHEREAS, at its June 7, 2022 meeting, the IURA Economic Development Committee reviewed submitted qualifications and compared them to the IURA Sponsor evaluation criteria and recommended the following; now, therefore, be it RESOLVED, the IURA hereby finds 311 CA Associates, LLC satisfies IURA sponsor criteria and designates 311 CA Associates, LLC as a “Qualified and Eligible Sponsor” to potentially undertake an urban renewal project involving potential acquisition of 309 College Avenue. Carried Unanimously: 3-0 C. Committee Chairperson Report Proulx announced the Committee is also searching for a new member. Proulx reported the Committee heard a presentation from Buffalo Street Books (BSB) regarding a report (financed by the IURA) to explore potential scenarios and recommendations to improve the store’s operations and long-term financial viability, including recommendations for BSB to: • streamline its operating structure/costs IURA Minutes June 23, 2022 Page 7 of 8 • add/diversify its revenue streams • create and implement a strategic marketing plan to showcase new product lines and initiatives • establish an annual “planned giving” or similar donor program • lease the reading room adjacent to the store and open a coffee/tea shop or wine bar, which would also serve as an event space for literary programming and special events VIII. Other Business A. IURA Financials Review: May 2022 Mendizabal reported the IURA/City received a letter from HUD, notifying it of its non-compliance with the timely expenditure requirements of the Community Development Block Grant (CDBG) Program: “The City of Ithaca has 12 months, until its next 60-day test, to reach the 1.5 timeliness standard. Failure to meet the standard by that date will require the City of Ithaca to submit a workout plan.” Mendizabal reported that Greater Ithaca Activities Center’s (GIAC) “New Gym Renovation” 2021 Action Plan ($100,000.00/CDBG) project has been delayed, since the Ithaca City School District (ICSD) proposal to sell a portion of Beverly J. Martin Elementary School’s (BJM) outdoor space, enabling the project to comply with City zoning set-back requirements, was rejected. Proulx asked about the status of the 2020 Hospitality Employment Training Program (HETP), which does not appear to have expended any of its $75,000.00 (CDBG) grant funds. Pyott replied that GIAC recently submitted 10 vouchers, bringing the project’s balance down to $24,922.23 (33%). Pyott reported all loan payments are current, except GreenStar and Diane’s Downtown Auto. All lease payments are also in good standing, as of today. B. IURA Chairperson Report Proulx indicated there has been some interest from several potential candidates to serve on several IURA committees; and Fleming is anticipated to be appointed to the IURA Board on July 6th, 2022. Lewis expressed tremendous appreciation for former IURA Board member, Eric Rosario, for his many years of service and dedication to the IURA. C. Common Council Liaison Report Gearhart reported, at its June 1st, 2022 meeting, Common Council approved all IURA-related action items, including the 2022 Action Plan and the “East Hill Fire Station Relocation: Authorize Transfer of Property & Assignment of Option to IURA” resolution. It also heard IURA Director of Community Development Nels Bohn’s presentation of his “Proposed Policy Regarding Encampments on City Property.” D. Mayor’s Report Lewis expressed pleasure at Nicholas’s confirmation as Director of Planning & Development, after her having served as Acting Director of Planning & Development since November 2021. IURA Minutes June 23, 2022 Page 8 of 8 Lewis remarked that former Mayor Myrick enlisted Bohn to produce the Proposed Policy Regarding Encampments on City Property. While Common Council has discussed it, it has not yet arrived at any conclusions regarding its recommendations, although it is clear that solutions exist to address the increasing unhoused population in the community. While Common Council voted to accept the report, it has not yet taken any action. Lewis reported that the first New York State Reuse Summit was held on June 16th, 2022, sponsored by Finger Lakes ReUse, Inc. (FLRU). It was a tremendous opportunity to discuss a variety of issues related to re-use and sustainability. She praised FLRU Executive Director Diane Cohen for her role in organizing it. Lewis added the City continues to move forward with the electrification of buildings in the City, as well as the City’s vehicle fleet. Tompkins Consolidated Area Transit, Inc. (TCAT) is also applying for an electrification grant. Proulx noted the City could presumably apply for future IURA Action Plan funding to implement some of the recommendations contained in the Proposed Policy Regarding Encampments on City Property. The IURA Board should also review the report at a future meeting. Pyott indicated he would distribute the report to the Board. E. Staff Report Mendizabal reported the 2022 Action Plan was submitted to HUD on June 16th, 2022. There is a 60-day process for HUD to review and approve it. IX. Adjournment The meeting was adjourned by consensus at 9:37 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.