Loading...
HomeMy WebLinkAboutMN-IURAED-2022-07-19Approved: 8/23/22 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY Economic Development Committee (EDC) 3:00 P.M., Tuesday, July 19, 2022 Present: Chris Proulx, Chair; Doug Dylla, Vice-Chair; Leslie Ackerman; Charlotte Hamilton Excused: None. Vacancies: 2 Staff: Nels Bohn; Charles Pyott Guests: Victor Kessler, Assistant City Attorney; Karl Graham, IURA Board (Vice Chairperson); Tom Parsons, City Fire Chief; Robert Covert, City Assistant Fire Chief I. Call to Order Chair Proulx called the meeting to order at 3:02 P.M. II. Agenda Additions/Deletions None. III. Public Comments (3-minute max. per person) None. IV. Review of Meeting Minutes: June 7th, 2022 Dylla moved, seconded by Ackerman, to approve the minutes, with one minor modification. Carried Unanimously:3-0 V. Urban Renewal Project A. East Hill Fire Station 1. Discussion of Terms of Proposed Deal/Address Questions Bohn summarized the contents of his 7/18/22 memorandum to the Committee, as excerpted below: Proposal Clarifications Each respondent was asked questions about their proposals resulting in additional information: Visum/LaBella (Visum) Approach: Incorporate new fire station in a mixed-use redevelopment project at 309 College Ave – Fire Station on lower levels with rental housing on upper floors. Financial Proposal: Construct equivalent fire station on-site at no cost to City with inclusion of a 1,300 SF community room for public use. IURA EDC Meeting Minutes July 19, 2022 Page 2 of 15 311 College Associates, LLC (311 CA) Approach: Demolish fire station for private redevelopment at 309 College Ave. Provide an alternative site to City for construction of a new fire station. Financial Proposal: $4,000,000 plus contribution of an alternative site for a new fire station. The purchase price included a bonus $400,000 per additional floor authorized above the 6-story zoning height limit at 309 College Visum • Projected cost for the public component of project is estimated at $6.7 million. • The amount of the development subsidy offered to the City is based on the number of residential floors authorized above the fire station ranging from $2.9 million for 4 residential floors to $6.7 million for 8 floors of rental housing. The MU-2 zoning at 309 College Ave. limits buildings to 6 floors, thereby allowing 4 floors of housing above a 2-floor fire station. 311 CA • Site alternatives to be offered at no cost to the City for construction of a new fire station are located on Dryden Rd., Linden Ave., or E. State Street and will be made available for suitability. Preferred Proposal Selected for Further Negotiation The City staff initiated negotiations with 311 CA as a preferred proposal for the following reasons: 1. The $4 million cash offer from 311 CA exceeds the $2.9 million development subsidy offered by Visum for a zoning compliant project at 309 College Avenue. 2. On-site reconstruction would take the fire station off-line for 24 months, thereby lengthening fire Dept. (IFD) response time on East Hill during construction. 3. Visum proposed private/public project increases project complexity for financing, construction, and operations. City will be dependent on developer to raise equity and loan financing, gain approvals, and complete project on a timely basis. Should project not maintain financial feasibility providing a reasonable return to the developer and their investors, the project could stall. 4. Fire Chief viewed an alternate site offered by 311 CA as likely to be operationally feasible for a new fire station. If negotiations with 311 CA are unsatisfactory the City team was prepared to open negotiations with Visum. City/311 CA Negotiation Outcomes • Developer offered 403 Elmwood Ave. and 408 Dryden Rd. sites at no cost to the City as a site for construction of a fire station. The City commissioned architectural analysis that demonstrated that construction of a fire station could be operationally feasible and compatible with the neighborhood. Preliminary construction cost was estimated at $8.5 million. • Developer agrees to delay transfer of 309 College Avenue property until May 2024 to allow time for construction of fire station. • Developer agrees to increase cash offer from $4 million to $5.1 million. With inclusion of the value of Elmwood/Dryden sites, the total financial compensation equals approximately $7 million, or over $800/SF for the 8,520-sq.-ft. 309 College Avenue property. As a point of reference, the adjacent 311 College Avenue property was purchased by the developer in 2019 at $715/SF. • The above terms are included in the City-executed Option Agreement that is currently under review by the IURA. IURA EDC Meeting Minutes July 19, 2022 Page 3 of 15 Proulx remarked, as he understands it, under the 311 CA proposal the City would receive $5.1M and the project site, which is equivalent to ~$7M. Since it would cost the City $8.5M to construct the new fire station, the net cost to the City would be ~$1.5M. Bohn agreed, in general terms, that is correct. Proulx observed, under the Visum proposal, Visum would not pay the City anything for the land and it would offer a $2.9M subsidy for a zoning-compliant building with an estimated construction cost of ~$6.7M, resulting in a net ~$4M cost to the City. Bohn agreed. (Hamilton arrived at 3:16 p.m.) Dylla expressed concern with the size of the streets, accessibility issues, and fire engines operating in an urban neighborhood. Parsons replied College Avenue’s operational/drivable street-width is actually the same as Dryden Road’s. IFD conducted an analysis of turning moments for fire engines emerging from the station and they were acceptable. Ackerman observed two aspects of the Visum proposal stood out to her: the higher cost to the City and the need for the fire station to be off-line for as long as 2 years. She asked if there is a different version of the Visum project (e.g., modified financial proposal or design configuration) that could conceivably make it more attractive to the City. Parsons responded, from a design stand-point, it is a very constrained site. It is difficult to conceive it could be as good as the other proposal. Bohn added, from the financial perspective, Visum’s proposal increases its subsidy to the City in relation to the number of floors it could develop. If Visum could construct a 12-story building, it could approach the subsidy of the 311 CA proposal; however, City staff cannot simply waive zoning requirements. Ackerman asked if any other factors went into the City’s choice of the 311 CA proposal. Bohn replied, under the Visum proposal, the City was concerned with losing control over the project and development of the fire station, since the City would essentially become a lessee. Furthermore, should the project cost increase, the entire process would be complicated and likely delayed, placing the City’s $1M grant (2016) from Empire State Development (ESD) at risk, since that funding needs to be expended by a certain date. 2. Lead Agency Declaration Bohn explained the proposed resolution segments the environmental review process into a property transfer phase and the subsequent construction phase. The IURA will only serve as Lead Agency for the property transfer phase of the project. Ackerman moved, seconded by Dylla: East Hill Fire Station Urban Renewal Project: Disposition Agreement — Lead Agency WHEREAS, the Ithaca Urban Renewal Agency and the Common Council for the City of Ithaca are considering approval of a proposed Disposition and Development Agreement (“DDA”) for the East Hill Fire Station (“EHFS”) urban renewal project to sell the EHFS property located at 309 College Avenue and City construction of a new fire station at adjoining parcels to be acquired at 403 Elmwood Avenue and 408 Dryden Road, and IURA EDC Meeting Minutes July 19, 2022 Page 4 of 15 WHEREAS, the proposed action entails an initial real estate property transfer phase and a construction phase contingent upon approval of the real estate transaction, and, WHEREAS, §176-6 (F) (1) (b) of the City Environmental Quality Review Ordinance allows for the IURA assume the role of Lead Agency for environmental review of the real estate property transfer phase of the project and subsequent reestablishment of Lead Agency by the Planning Board for environmental review for of the construction phase of the project through the Site Plan Review process, and WHEREAS, the proposed DDA shall include a requirement requiring either completion of environmental review of the new fire station or postponement of the City construction project as pre-condition to transfer of ownership of 309 College Avenue to the Sponsor, and WHEREAS, the proposed new construction of properties to be transferred will undergo separate environmental reviews during the City’s Site Plan Review process, and Whereas, State Law and Section 176-6 of the City Code require that a Lead Agency be established for the purpose of 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 transfer of less than 2.5 acres of land is an “Unlisted” action pursuant to the City Environmental Quality Review Ordinance (“CEQR”), which requires environmental review under CEQR, and WHEREAS, the property to be transferred at 309 College Avenue is 8,520 square feet in size; now, therefore, be it RESOLVED, that the Ithaca Urban Renewal Agency does hereby declare itself Lead Agency for the environmental review of the proposed Disposition and Development Agreement authorizing transfer of properties for the East Hill Fire Station Urban Renewal Project. Carried Unanimously: 4-0 3. Environmental Determination Bohn explained even though the environmental review is being segmented in this case, the process is no less protective than a standard unsegmented environmental review. IURA EDC Meeting Minutes July 19, 2022 Page 5 of 15 Dylla moved, seconded by Ackerman: East Hill Fire Station Urban Renewal Project: Disposition Agreement — Environmental Review WHEREAS, the Ithaca Urban Renewal Agency and the Common Council for the City of Ithaca are considering approval of a proposed Disposition and Development Agreement (“DDA”) for the East Hill Fire Station (“EHFS”) urban renewal project to sell the EHFS property located at 309 College Avenue and City construction of a new fire station at adjoining parcels to be acquired at 403 Elmwood Avenue and 408 Dryden Road, and WHEREAS, the proposed action entails an initial real estate property transfer phase and a construction phase contingent upon approval of the real estate transaction, and WHEREAS, the proposed construction of a new fire station or redevelopment of 309 College Avenue are not fully designed at this time, nor are these construction projects possible without approval of the property transfers, therefore, an analysis of potentially significant adverse impacts of the construction phase of the urban renewal project is not feasible at this time, and WHEREAS, §176-6 (F) (1) (b) of the City Environmental Quality Review Ordinance allows for the IURA assume the role of Lead Agency for environmental review of the real estate property transfer phase of the project and subsequent reestablishment of Lead Agency by the Planning and Development Board for environmental review of the construction phase of the project through the Site Plan Review process, and WHEREAS, the proposed action for transfer of city-owned property of less than 2.5 acres is an “Unlisted Action” under the City Environmental Quality Review Ordinance, and WHEREAS, the proposed DDA shall include a requirement requiring either completion of environmental review of the new fire station or postponement of the City construction project as pre-condition to transfer of ownership of 309 College Avenue to the Sponsor, and WHEREAS, the proposed new construction of properties to be transferred will undergo separate environmental reviews during the City’s Site Plan Review process, and WHEREAS, appropriate environmental review has been conducted including the preparation of a Full Environmental Assessment Form (FEAF), and WHEREAS, the Ithaca Urban Renewal Agency (IURA), acting as Lead Agency, has reviewed the FEAF prepared by staff; now, therefore, be it RESOLVED, that the IURA, as Lead Agency in this matter, hereby determines that circumstances warrant a segmented review of the property transfer from other stages of the proposed Urban Renewal Project and that subsequent environmental review of the proposed project during the required site plan review process will be no less protective of the environment, and be it further IURA EDC Meeting Minutes July 19, 2022 Page 6 of 15 RESOLVED, that the IURA, as Lead Agency in this matter, hereby adopts as its own, the findings and conclusions more fully set forth on the Full Environmental Assessment Form (FEAF), and be it further RESOLVED, that the IURA, as Lead Agency in this matter, hereby determines that the proposed action at issue will not have significant effect on the environment, and that further environmental review is unnecessary, and be it further 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. Carried Unanimously: 4-0 4. Disposition & Development Agreement (DDA) Hamilton disclosed her business leases space from Integrated Acquisition & Development Corporation (IADC), which the developer has an ownership interest in. She does not personally see it as a conflict of interest, since it is a standard 10-year commercial lease not under active negotiation. Proulx agreed, since there is no measurable financial benefit involved, it should not be considered a conflict of interest requiring Hamilton to recuse herself. Bohn clarified in the first “RESOLVED,” under “3. Property Tax Revenue,” the one exception to the requirement of a Payment-in-Lieu-of-Taxes (PILOT) agreement between the IURA and the developer (if the property becomes tax-exempt) is if the Tompkins County Industrial Development Agency (TCIDA) approves its own PILOT agreement with the developer. Kessler stressed since the City does not have a PILOT agreement with the developer any PILOT agreement would need to be negotiated in addition to the Option Agreement. Proulx remarked the “3. Property Tax Revenue” condition would be clearer if instead of being written as “Require execution of a 20-year Developer/IURA Payment-in-Lieu-of-Taxes (“PILOT”) agreement requiring payment equal to property taxes that would have been due in the event property becomes tax exempt by any means other than an approved TCIDA PILOT agreement,” it were written as: “In the event property becomes tax-exempt by any means other than an approved Tompkins County Industrial Development Agency (TCIDA) PILOT agreement, it would require execution of a 20-year Developer/IURA Payment-in-Lieu-of-Taxes (“PILOT”) agreement requiring payment equal to property taxes that would have been due.” No objections were raised. Proulx asked if the IURA anticipates receiving any feedback from the developer prior to the 7/28/22 IURA Board meeting. Bohn responded, yes. He communicated to the developer that the issue would be decided at that meeting. He added, once the IURA Board approves the DDA, it would go before the Planning & Economic Development Committee (PEDC) for a Public Hearing and then finally to Common Council, which could reject, approve, or modify the DDA at that time. IURA EDC Meeting Minutes July 19, 2022 Page 7 of 15 Ackerman moved, seconded by Dylla (as amended): East Hill Fire Station Urban Renewal Project: Disposition Agreement WHEREAS, the Common Council for the City of Ithaca (“City”) authorized issuance of a 2021 Request for Expressions of Interest (“RFEI”) seeking proposals to redevelop or relocate the East Hill Fire Station (“EHFS”) in a manner that meet fire protection needs, enhances Collegetown, and financially benefits the City, and WHEREAS, in response to the RFEI, City staff entered into negotiations with 311 CA Associates, LLC (“311 CA” or “Sponsor”) resulting in execution of an Option Agreement, dated February 22, 2022 (“Option Agreement”), that permits, but does not require, the City to sell 309 College Avenue 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, the Option Agreement anticipates the City will construct a new fire station on adjacent properties to be acquired at 403 Elmwood Avenue and 408 Dryden Road, and WHEREAS, a negotiated sale of City-owned property is authorized only if undertaken as an Urban Renewal Project in accordance with urban renewal law, and WHEREAS, the City requested the Ithaca Urban Renewal Agency (“IURA”) to independently review the terms of the Option Agreement and recommend a proposed Disposition and Development Agreement in the best interest of the City to redevelop or relocate the EHFS, 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, on May 26, 2022, the IURA accepted (1) transfer of the 309 College Avenue site from the City via a City/IURA Option Agreement, and (2) assignment from the City of the Option Agreement executed between the City of Ithaca and 311 CA, dated 2/22/22, and WHEREAS, on June 23, 2022, the IURA designated 311 CA as a “Qualified and Eligible Sponsor,” pursuant to Section 507 of General Municipal Law, to potentially undertake an Urban Renewal Project involving transfer of properties to facilitate construction of a new fire station, and WHEREAS, on July 28, 2022, the IURA, acting as Lead Agency, determined that the contemplated property transfers will result in no significant adverse impacts on the environment, and WHEREAS, 309 College Avenue is located within the Urban Renewal Project boundary area, and IURA EDC Meeting Minutes July 19, 2022 Page 8 of 15 WHEREAS, the primary objective of the Urban Renewal Plan is to improve the social and physical characteristics of the project neighborhood, and WHEREAS, an urban renewal objective includes “provision of a full range of neighborhood and community facilities and services necessary to meet the residents’ needs, through new construction or improvement of existing facilities and programs” is a listed urban renewal objective, and WHEREAS, facilitating new construction of an EHFS furthers the Urban Renewal Plan; now, therefore, be it RESOLVED, that the Ithaca Urban Renewal Agency hereby approves a Disposition and Development Agreement (“DDA”) for the East Hill Fire Station Urban Renewal Project for disposition of 309 College Avenue to 311 CA Associates, LLC (“Sponsor”) to facilitate construction of a new fire station and redevelopment of 309 College Avenue subject to the following terms: 1. Property Transfer — Compliance with terms of the City/Sponsor Option Agreement, executed on February 22, 2022, for sale of property located at 309 College Avenue for $5.1 million plus acquisition of adjoining parcels at 403 Elmwood Avenue and 408 Dryden Road for City construction of a new fire station; 2. Complete Segmented Environmental Review — Establish as a precondition for transfer of the 309 College Avenue deed to Sponsor either completion of environmental review of the City fire station construction project or formal postponement of City construction on acquired property; 3. Property Tax Revenue — In the event property becomes tax-exempt by any means other than an approved Tompkins County Industrial Development Agency (TCIDA) PILOT agreement, it would require execution of a 20-year Developer/IURA Payment-in-Lieu-of-Taxes (“PILOT”) agreement requiring payment equal to property taxes that would have been due; and be it further RESOLVED, property to be acquired by the IURA at 403 Elmwood Avenue and 408 Dryden Road shall be conveyed to the City at no cost for construction of a fire station, be it further RESOLVED, that the net proceeds from IURA sale of real property shall be paid to the City. Carried Unanimously: 4-0 VI. Community Lending: Priority Business Loan Fund (PB-LF) A. Sons of Susan, LLC (dba Personal Best Brewing) Loan Application to Establish Brewpub on 300-Block of West M.L.K., Jr./State Street Bohn explained the application is for a project that has been in development for several years to redevelop the former City Health Club building on W. State Street into an 8,000-square-foot brewpub. It seems a very impressive facility inside. The loan application is also notable in that there is no debt owed on the project yet, since it has been funded exclusively through equity investments by the family and owner. IURA funds would be used for final machinery/equipment expenses, landscaping, and working capital. IURA EDC Meeting Minutes July 19, 2022 Page 9 of 15 The brewpub would seat 125, so it is a large facility and would change the nature of the block, which is situated in an IURA target area. The loan terms would include two personal financial guarantees. In some respects, the application’s financial projections seem a little optimistic, although the business would also have a low break-even point. It appears to be a low risk to the IURA and Bohn recommended approving the loan. Hamilton expressed excitement about the project. One thing she would like the IURA to request is for the applicants to include a non-alcoholic specialty brew(s). Bohn replied that could certainly be communicated to them. Ackerman agreed with Bohn about the financial projections seeming somewhat optimistic. The aspect of the application that most concerns her is the payroll. The proposed wage scale is uncompetitive, especially given that job openings are relatively plentiful right now. She wondered if the IURA could strongly recommend the applicants reconsider the proposed wage levels. No objections were raised. Graham remarked another community benefit he would like the applicants to pursue would be hiring a workforce that reflects the diversity of the immediate downtown area. Dylla noted the building has been dilapidated for many years. He asked if the exterior has been renovated at all. Bohn replied they have been making progress in that respect. They would also potentially open another entrance on the State Street façade, with additional funding. Dylla indicated he would like the West State Street façade improved. Hamilton moved, seconded by Ackerman (as amended): Loan Assistance to Sons of Susan, LLC (d/b/a Personal Best Brewing) — Priority Business Loan Fund (PB-LF) Project #13 WHEREAS, on May 6, 2022, Sons of Susan, LLC (“Company”) applied for $140,000 in loan assistance from the IURA to establish an 8,000-square-foot brewpub located in the former City Health Club building located at 402 W. Green Street, Ithaca, NY, and WHEREAS, the project involves rental and gut renovation of a family-owned building to create a 125-seat brewpub with a 10-barrel brewing system, full kitchen, three full-size indoor shuffleboard courts, and an outdoor beer garden, and WHEREAS, over $500,000 of equity has been invested to date on building renovations and brewery equipment, but loan financing is required to complete the project, and WHEREAS, the primary objective of the Ithaca Density District Priority Business Loan Fund (PB-LF) is to induce the creation, start-up, and expansion of specific priority business enterprises in the designated Density District of the community that have been defined by the community as highly desirable or substantially increases foot traffic thereby strengthening downtown vitality; and IURA EDC Meeting Minutes July 19, 2022 Page 10 of 15 WHEREAS, the project site is located within the Density District and a brewpub is listed as an eligible use for loan assistance through the PB-LF; and WHEREAS, the proposed uses of project funds are: $520,000 Building renovations and fixtures $53,500 Machinery, Equip., Furnishings & Fixtures $17,000 Inventory $20,000 Landscaping $49,500 Working Capital $660,000 Total, and WHEREAS, the proposed sources of project funds are: $520,000 Equity $140,000 IURA $660,000 Total, and WHEREAS, the IURA Economic Development Policy Financing Guidelines and Operating Plan for the Priority Business Loan Fund normally requires at least one full-time equivalent (FTE) job for every $35,000 of loan assistance and sets a maximum loan amount of $250,000, and WHEREAS, the project is projected to create at least 13 FTE employment positions, resulting in $10,770 of loan assistance per job created/retained, and WHEREAS, as an economic activity for which IURA loan funds are not used for new construction the activity qualifies at 58.35 (b) (4) as a Categorically Excluded from the National Environmental Protection Act (NEPA), but is subject to Federal flood hazard regulations, and WHEREAS, the project site is located outside of a 100-year flood hazard area, and WHEREAS, positive risk factors include the high amount of equity investment and lack of debt, a landlord committed to success of the business, prior issuance of combined farm and micro brewer manufacturing license and liquor license, and positive community impact resulting from increased foot traffic and reactivation of a large vacant building fronting on the 300 block of W. M.L.K, Jr./State Street, and WHEREAS, negative risk factors include the inherent risk of a startup business, lack of Company financial resources, and minimal hard collateral to secure the loan, and WHEREAS, at its July 19, 2022 meeting, the IURA Economic Development Committee reviewed the loan application and the July 2020 credit analysis prepared by Michael Thomas, Vice President, H. Sicherman & Company, Inc., and recommend the following action; and WHEREAS, to further enhance community benefits of the project, Company management is highly encouraged to consider the following recommendations: IURA EDC Meeting Minutes July 19, 2022 Page 11 of 15 • Feature at least one specialty or craft non-alcoholic beverage on the menu. • Reconsider the proposed workforce pay-scale to ensure it is competitive in the local labor market to attract and retain talented employees. • Recruit and hire a workforce that reflects the diverse demographics of the downtown neighborhood. • Continue building improvements to improve the W. State/M.L.K., Jr. St. building façade, including establishment of a building entrance as shown on the floor plans. now, therefore, be it RESOLVED, that the IURA hereby approves a loan from the PB-LF in accordance with the loan application and supplemental submissions, subject to the following terms: Borrower: Sons of Susan, LLC, a New York State domestic limited liability corporation established in May 2017 Loan Amount: Up to $140,000 Project: Startup brewpub with outdoor beer garden at 402 W. Green Street, Ithaca, NY. Total Project Cost: $660,000 Projected Use of IURA Funds: Furniture, fixtures and equipment, supplies, inventory, landscaping, and working capital. IURA loan funds may not be used for any construction activity involving laborers or mechanics employed by a contractor or subcontractor (which would trigger federal prevailing wages on the project). Term & Amortization: Interest only payments for six (6) months followed by a five-year term, five-year amortization. Interest Rate: 3.5% annually if borrower establishes and continues an automatic loan payment through a financial institution to make timely level monthly payments on the loan. If such an automatic loan payment system is not in effect after full disbursement of the loan, the interest rate shall be adjusted to 4.0% annually. The interest rate shall be reduced by 100 basis points upon: (1) submission of satisfactory job reports documenting that the job- creation goal has been achieved for two consecutive quarters; and (2) compliance with all other terms of the loan agreement. IURA EDC Meeting Minutes July 19, 2022 Page 12 of 15 Repayment: Interest-only payments for six (6) months, then level monthly payments of principal and interest to fully amortize the loan over 60 months (approximately $2,540/month at an assumed 3.5% interest rate) and subject to a revised P&I amount upon rate reset. Loan Collateral: General first lien security interest on all business assets, including new equipment, inventory, furnishings, and fixtures now owned or hereafter acquired located at 402 W. Green Street, Ithaca, NY. Personal Guarantor(s): 1. Anthony Cesari, managing member of the Company; and 2. Andrew Cesari, the owner of 402 W. Green St. property, or another person with sufficient net worth and liquidity satisfactory to the IURA Chairperson. Job Creation: Creation/Retention of at least a total of 13 full-time equivalent (FTE) jobs of which at least 51% shall be filled by low- and moderate- income persons. Loan Conditions: 1. Certification that the company has no other debt. 2. Confirmation in writing that the rent will be waived for the first three months of operation. 3. Lease amendment or confirmation in writing from landlord that property taxes will be covered by landlord until such time that company’s net operating income is sufficient to cover all operating expenses, equipment leases, and IURA debt payment. 4. Confirmation in writing that Anthony Cesari is the 100% owner of the business and any investment from others has not, and will not, result in a change of ownership, a debt obligation to the company, or guaranteed payment of a dividend during the term of the IURA loan. 5. IURA loan funds cannot be used for any construction activity, including landscaping, that involves a laborer or mechanic employed by a contractor or subcontractor. Reporting: 1. Annual company Federal tax returns. 2. Internally prepared income/expense statement. 3. balance sheet on a quarterly basis for the first two years of the loan term. 4. Job creation reporting on a quarterly basis until the job goal is satisfied. 5. Documentation of project match funding. And be it further, IURA EDC Meeting Minutes July 19, 2022 Page 13 of 15 RESOLVED, that the Director of Community Development for the IURA is authorized to issue a Loan Commitment Letter in accordance with this resolution, and be it further RESOLVED, that the IURA Chairperson, upon the advice of IURA legal counsel, is hereby authorized to execute all necessary and appropriate documents to implement this resolution. Carried Unanimously: 4-0 VII. Lease Amendment A. Authorize Park-N-Ride Use at Steamboat Landing — Ithaca Farmers Market Cooperative, Inc. (IFM) Bohn explained IFM was approached by employees who commute to Corning Incorporated and were interested in using IFM’s parking lot Monday through Friday to take a chartered bus from. He summarized the contents of his 7/13/22 memorandum to the Committee, as excerpted below: The Ithaca Farmers Market Cooperative, Inc. (IFM) seeks permission to operate a 50-vehicle commuter park- n-ride facility at the City-owned Steamboat Landing site. IFM is responding to Ithaca-area based commuters going to Corning, Inc. who seek to lease parking spaces on weekdays to support employees to take a chartered bus to and from Corning. The City leases the Steamboat Landing site to the Ithaca Urban Renewal Agency who in turn subleases the site to IFM to operate a producer-to-consumer market of locally grown and crafted goods via a negotiated lease agreement. The executed leases authorize use of the site for a farmers’ market, special events in the pavilion, and any other additional use subject to consent by the Mayor and IURA Chairperson. The lease agreement specifies that the site shall remain open at times the market is not in operation for use by the general public for passive, non-exclusive, low impact and low intensity recreational uses. A park-n-ride use was not contemplated in 2010 when the 20-year leases were executed, so this proposed additional accessory use is being brought to the Common Council and IURA for consideration. The attached proposed resolution approves amendments to leases to allow up to a 50-vehicle park-n-ride use in the IFM parking lot on Mondays through Fridays with provisions to protect against exclusive use of any specific parking spaces and retaining non-exclusive use of the site by the general public during non-market hours. The park-n- ride users would be authorized to “hunt for a parking space” in the 300+ space parking lot but will not have specific parking spaces designated for their exclusive use. Dylla suggested IFM charge for parking spaces on the weekends and use the income to pay for some traffic- flow parking monitors and perhaps a shuttle to/from the DMV parking lot. Hamilton moved, seconded by Dylla: Authorize Commuter Park-n-Ride at Steamboat Landing WHEREAS, the Ithaca Farmers Market Cooperative, Inc. (“IFM”) seeks approval for a 50-vehicle commuter park-n-ride operation as an accessory use at the City-owned Steamboat Landing site, and IURA EDC Meeting Minutes July 19, 2022 Page 14 of 15 WHEREAS, as of 2010, the City leases the 5.8-acre Steamboat Landing site (“Leased Property”) to the Ithaca Urban Renewal Agency (IURA) and the IURA subleases the Site to the Ithaca Farmers Market Cooperative, Inc. to operate a producer-to-consumer market of locally grown and crafted goods, and WHEREAS, the Leased Property contains a large market pavilion, a dock, and over 300 parking spaces developed and maintained by IFM, and WHEREAS, the Leased Property is authorized for (1) A producer-to-consumer market featuring local grown and crafted goods at least two days per week for at least six month of the year, (2) rental of the pavilion to others for occasional events, and (3) any other, additional use by IFM subject to the consent of the IURA and Mayor; however the Leased Property shall remain open at times the market is not in operation for use by the general public for passive, non-exclusive, low impact and low intensity recreational uses, and WHEREAS, IFM currently operates a farmers’ market on weekends, April thru November, and WHEREAS, the leases specify that neither the City nor the IURA are under any obligation to maintain any internal roads and parking areas, including snow removal, and WHEREAS, Plan Ithaca, the adopted City comprehensive plan, supports strategies to reduce the number of single-occupant vehicles including provision of transit and park-n-ride facilities, and WHEREAS, the Mayor and IURA Chairperson have preliminarily reviewed the proposal and are open to a limited park-n-ride use with certain protections to ensure retention of the public nature of the site and that ample parking remains available for use by the general public; now, therefore, be it RESOLVED, that the Ithaca Urban Renewal Agency Ithaca hereby approves an amendment to the IURA sublease of the Steamboat Landing site to the Ithaca Farmers Market Cooperative, Inc., to establish a commuter park-n-ride use as a permissible accessory use subject to the following conditions: 1. Up to a total of 50 undesignated parking spaces may be utilized for a park-n-ride use; 2. The park-n-ride shall operate only Monday through Friday; 3. No signage designating individual park-n-ride parking spaces shall be erected as the parking shall remain open to the general public; 4. The pickup and drop-off transit location, and any informational park-n-ride signage, shall be approved by the City Director of Parking and Transportation; and be it further RESOLVED, that the IURA Chairperson, subject to review by the IURA legal counsel, is hereby authorized to execute any and all documents to implement this resolution. Carried Unanimously: 4-0 IURA EDC Meeting Minutes July 19, 2022 Page 15 of 15 VIII. Old/Other Business A. IURA Financials Review: June 2022 Bohn reported all CDBG and HOME projects are in good standing in terms of expenditures and overall progress, with the exception of two CDBG-CV projects, whose remaining funds will most likely be reprogrammed. All loan repayments are current, except the Canopy Hotel and Tompkins Community Action (TCAction), but neither is expected to be a significant issue. All lease payments are current as of today. B. Staff Report Bohn reported the Restore New York Communities Initiative (Restore NY) Round 6 funding cycle has been announced. The City is exploring a potential application to take advantage of the program with up to $2M available. Bohn noted a new NYS Downtown Revitalization Initiative (DRI) funding cycle is open, which the City is exploring creating an application for. Bohn announced Eric Rosario resigned from the IURA Board and will be replaced with Donna Fleming. IX. Adjournment The meeting was adjourned by consensus at 4:48 P.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.