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.