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HomeMy WebLinkAboutMN-IURAED-2022-08-23Approved/Adopted: 10/11/22 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY Economic Development Committee (EDC) 3:30 P.M., Tuesday, August 23, 2022 Present: Chris Proulx, Chair; Doug Dylla, Vice-Chair; Charlotte Hamilton Excused: Leslie Ackerman Vacancies: 2 Staff: Nels Bohn; Charles Pyott Guests: Steve Flash, Finger Lakes Development, LLC. Scott Whitham, Whitham Planning Design Landscape Architecture, PLLC Lynn Truame, Ithaca Neighborhood Housing Services, Inc. (INHS) Jacob von Mechow, Whitham Planning Design Landscape Architecture, PLLC Tom Kinslow, HOLT Architects Yifei Yan, Whitham Planning Design Landscape Architecture, PLLC Jeff Rimland, Finger Lakes Development, LLC I. Call to Order Chair Proulx called the meeting to order at 3:31 P.M. II. Agenda Additions/Deletions None. III. Public Comments (3-minute max. per person) Pyott reported that Deirdre Kurzweil from Sunny Days of Ithaca submitted the following Public Comment via e-mail, which he then displayed for the Committee to review: I am writing today with the hope that you will consider the following as you move forward the Inlet Island project. As most of you are already probably aware, we are currently in litigation with a/the Developer involved in this project. Our business was almost destroyed, as a result of construction that happened with NO proactive communication or plans for mitigation. It’s been two years of trying to make ourselves whole again. During that time, we have been in regular contact with the various entities (City & County) to try to ensure others aren’t hurt the way we have been during construction. The City continues to work on a draft document (Development Guidelines) that would address these concerns, but it is not clear if/when this will be implemented. Has the failure of this developer to communicate proactively with businesses (and residents) affected by his projects been taken into account here? IURA EDC Meeting Minutes August 23, 2022 Page 2 of 9 Please recognize that most businesses won’t/can’t fight this fight — they don’t have the time/energy/money to do it AND run their business at the same time. If you are counting on developers to do the right thing and make sure no one is getting hurt by their projects (and to make them whole, if they are hurt), the evidence would demonstrate this isn’t a safe assumption to make. In addition, I would strongly urge all development projects that are occurring in heavy foot-traffic areas be required to provide public restroom facilities. Since we are open later than most retail businesses, we fielded a TON of requests for a public restroom, which is a real dilemma after Center Ithaca is closed. (As much as I would love to be able to offer a public restroom in my store, I’ve learned from others that have tried that this is not an easy/safe thing to do.) This is a major problem that can’t be ignored. Deirdre Kurzweil │ Sunny Days of Ithaca │ 171 E. State St., Ithaca, NY 14850 IV. Review of Meeting Minutes: July 19th, 2022 Dylla moved, seconded by Hamilton, to approve the minutes, with no modifications. Carried Unanimously: 3-0 V. Inlet Island Urban Renewal Project Proulx announced that Ackerman recused herself from discussion and any action on the Inlet Island Urban Renewal Project, due to her employment with Ithaca Neighborhood Housing Services, Inc. (INHS), which is on the project’s development team. A. Exclusive Negotiation Agreement (ENA) Process & Milestone Schedule Review Bohn walked through a brief overview of the ENA process: The Exclusive Negotiation Agreement (ENA) identifies the negotiation steps potentially leading to a Disposition and Development Agreement (DDA) for sale of IURA/City lands on Inlet Island to the project Sponsor: Finger Lakes Development, LLC. The ENA also includes: • Performance milestones for Developer and IURA. • Anticipated development program subject to negotiation. • Developer and IURA responsibilities. • Major issues to be resolved. • Essential terms and conditions. To date, the Developer and IURA have met their performance milestones. The Developer submitted a revised proposal on August 8, 2022. The task before the IURA is to: (1) review the 8/8/22 submission for completeness; (2) determine if the proposed development program requires further clarifications or negotiation; and (3) determine if it sufficiently resolves 12 pre-identified issues in Section IV of the ENA. If the IURA determines the Developer submitted a complete proposal and the proposed development program is acceptable (or acceptable with specific conditions), the next step is for the IURA to propose terms and conditions for a DDA. Bohn then reviewed the project schedule (see following page). IURA EDC Meeting Minutes August 23, 2022 Page 3 of 9 B. New York State Department of Environmental Conservation (NYSDEC) Discussions Regarding 508 Taughannock Blvd.: Report Bohn reported the conceptual plans contained in the meeting agenda materials were used in discussions with DEC regarding how the City could acquire the U.S. Coast Guard Auxiliary property for incorporation into the project. The yellow-bounded area on the map is where the Coast Guard Auxiliary building is now. DEC is open to transferring that property to the City, but also has its own objectives it would like to accomplish (e.g., provide logistical support to Flood Control Channel maintenance; dredging projects). IURA EDC Meeting Minutes August 23, 2022 Page 4 of 9 Bohn noted the following image shows the island looking north, with the Flood Control Channel on the west, as well as DEC’s maintenance easement that runs the entire length of the channel. The very northern end of the image is where the Boat Yard Grill is, along with the parking lot situated between the Coast Guard Auxiliary building and the Boat Yard Grill. DEC would like to retain a portion of the site for logistical purposes and convey the yellow-bounded area to the City. It would like any encroachment of the existing building into the easement to be removed (which would probably require partial/full demolition of the building). DEC would also like to gain an access right somewhere else on the island, on the Barge Canal side, for dredging purposes. Bohn remarked that discussions with DEC have progressed positively, but several details need to be worked out. IURA EDC Meeting Minutes August 23, 2022 Page 5 of 9 Dylla asked if there would be any problem with putting a multi-purpose trail in the DEC easement. Bohn responded, no. The current trail actually falls within the easement. Proulx asked about DEC’s opinion of (1) current plans to repurpose the dock in the Flood Control Channel (which the developer proposes to use for human-powered watercraft) and (2) a floating dock or dock extension just off Lookout Point, near the northern end of the island. Bohn replied: (1) DEC is aware of those plans and appears amenable to a kayak-oriented dock at that location, although nothing has yet been formalized; (2) however, DEC is not enthusiastic about a floating dock or dock extension near the north point of the island, since it plans to dredge in that area. Proulx asked about the timeline for completing negotiations with DEC. Bohn replied the DEC Regional Director has been very cooperative, so he believes progress should be made relatively quickly. Flash remarked he believes, from the negotiations with DEC, that removing a corner of the Coast Guard Auxiliary (CGA) building was not feasible and that virtually the entire building would need to be demolished. In terms of the easement, he believes a curb-cut and parking already exist to enable access to the it. If DEC plans to use the parcel and remove the yellow triangle segment (as depicted on the image) along with the egress route and Boat Yard Grill parking, then FLD would be concerned; so that issue needs to be clarified. Furthermore, since the building would need to be demolished, the value of the property would be impacted, which would need to re-appraised before the City could commit to transferring it to FLD, thereby affecting the timeline. Proulx asked who would be responsible for demolishing the building. Bohn replied, the developer, which would then apply the demolition cost to off-set part of the purchase price. C. Sponsor’s 8/8/22 Development Program Submission Mechow described some additional site constraints, which drove certain project design decisions, building locations, and programming. The main constraint is the DEC easement for the Flood Control Channel on the west side of the island, as well as the NYSEG easement. IURA EDC Meeting Minutes August 23, 2022 Page 6 of 9 Once all site constraints have been incorporated into the project design, the project is left with an Available Development Area (as illustrated on the map below surrounded by a purple boundary). The preliminary Site Plan has also been slightly modified from the earlier version, as illustrated below. Mechow noted the following diagram depicts multimodal circulation patterns, designed to improve Inlet Island’s interconnectivity. IURA EDC Meeting Minutes August 23, 2022 Page 7 of 9 Whitham remarked the project design will become more defined over the following months, including precise building footprints. Bohn asked for clarification of the proposed pedestrian improvements, some of which appeared to follow the existing Waterfront Trail. He asked if actual improvements are planned in those areas. Mechow replied, on the west side of the site, near the sea wall and dock, there is an existing rudimentary stone-dust trail, which is in fact an existing connection. Proulx asked for confirmation that no improvements are proposed to the promenade, along the western edge. Whitham replied that is correct. Hamilton recalled an earlier version of the proposal that featured a playground in a more public and accessible space than what is currently depicted. Truame responded INHS is actually prohibited from making the playground open to the general public, due to a requirement from one of its funding partners. D. Proposed Disposition & Development Agreement (DDA) Dylla moved, seconded by Hamilton: Inlet Island Urban Renewal Project — Amendment #1 to Exclusive Negotiation Agreement WHEREAS, the IURA and the City of Ithaca collectively own approximately 2.5 acres of underutilized land on Inlet Island (Project Site), and WHEREAS, in April 2021, the IURA issued a Request for Expressions of Interest (RFEI) for conceptual development proposals at the Project Site, and WHEREAS, the IURA sought an urban renewal project that will improve the physical, social, and economic characteristics of the project site and surrounding area, and advance goals and objectives of the 2015 City’s comprehensive plan, and its Waterfront Plan chapter adopted in 2019, and WHEREAS, The Waterfront Plan encourages the following land use objectives:  Mixed-use development  Housing opportunities at all income levels  Public access to the waterfront  Better multi-modal connections  Vibrant waterfront, and WHEREAS, on June 24, 2021, the IURA selected Finger Lakes Development, LLC (Sponsor), pursuant to section 507 of General Municipal Law, to sponsor a proposed Inlet Island Urban Renewal project based on their conceptual RFEI submission, subject to the following conditions: • Commitment from the developer to share environmental clean-up costs; • Clarification of Finger Lakes Boating Center’s commitment to make improvements, in terms of visual access and limited boat storage; IURA EDC Meeting Minutes August 23, 2022 Page 8 of 9 • Commitment by the developer to address the U.S. Coast Guard Auxiliary’s need to maintain its water access and continued operations; and be it further WHEREAS, in consultation with Common Council, a project objective was clarified to read: GROUND-LEVEL ACTIVITY: The development program shall include public amenities and programming to enhance ground-level activity and attract City residents to Inlet Island in a manner that does not result in a reduction of the proposed affordable housing units in the project, and WHEREAS, on December 21, 2021, the IURA entered into an Exclusive Negotiation Agreement (ENA) with the Sponsor, establishing a framework for negotiations, including a list of development and feasibility “issues to be resolved”, and performance milestone schedules, and WHEREAS, on August 8, 2022, Sponsor submitted a detailed development program and other project information specified in section III of the ENA, and WHEREAS, per the ENA, upon receipt of a complete Sponsor submission the IURA shall submit a proposed Disposition and Development Agreement to the Sponsor within 30 days or seek a time extension via resolution of the IURA, and WHEREAS, should IURA submit a proposed DDA, Sponsor has a 15-day period to execute the agreement or submit a counter-offer, or the ENA terminates, and WHEREAS, on August 23, 2022, the IURA Economic Development Committee reviewed the Sponsor’s submission against pre-identified development and feasibility issues to be resolved, and noted several issues require additional information from the Sponsor, and WHEREAS, the EDC further expresses concerns for the following terms proposed by the Sponsor: • Cost of environmental cleanup – open-end exposure of IURA/City for cleanup expenses incurred by Sponsor, and • Improvements in the public ROW – developer suggests City should be responsible to make changes in the ROW shown on their site plan, which conflicts with terms of the ENA; Now, therefore, be it RESOLVED, the IURA finds that the 8/8/22 Sponsor submission does not satisfactorily address all issues necessary to structure a proposed Disposition and Development Agreement and requests Sponsor to agree to a time extension to address issues and concerns identified at the 8/23/22 EDC meeting, and resubmit development program materials at least seven days prior to the next IURA EDC meeting (currently scheduled for October 11, 2022), and be it further RESOLVED, that the IURA hereby approves an amendment to the Exclusive Negotiation Agreement to extend the date of developer submission of project materials as referenced above, and modifies the date for the IURA to submit a proposed DDA to November 1, 2022, and be it further IURA EDC Meeting Minutes August 23, 2022 Page 9 of 9 RESOLVED, that should the Sponsor not agree to the IURA-requested time extension by August 29, 2022, staff is directed to develop and submit a proposed DDA that resolves issues and concerns solely to IURA preferences, as determined by the IURA Chair, to satisfy the September 7, 2022 deadline in the ENA for the IURA to submit a proposed DDA. Carried Unanimously: 3-0 VI. Old/Other Business A. IURA Financials Review Bohn reported no financial reports are available this month, since the IURA Accountant has been on leave. B. Committee Vacancies Proulx reported he has been working with Bohn to identify another Committee member to fill the forthcoming vacancy resulting from Dylla’s impending retirement. Hamilton added she will be also be moving out of town at some point, several months from now. VII. Adjournment The meeting was adjourned by consensus at 5:25 P.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.