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HomeMy WebLinkAboutMN-IURAED-2022-11-08Approved/Adopted: 2/14/23 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY Economic Development Committee (EDC) 3:30 P.M., Tuesday, November 8th, 2022 Common Council Chambers, 108 E. Green St., Ithaca, NY 14850 Present: Chris Proulx, Chair; Doug Dylla (VIRTUAL), Vice-Chair; Charlotte Hamilton; Leslie Ackerman; Donna Fleming Excused: None. Vacancies: 1 Staff: Nels Bohn; Charles Pyott Guests: IN-PERSON Chuck Schwerin, Managing Director of Business Services, Ithaca Area Economic Development Rod Rotondi, Commercial Kitchen Operator & Chef VIRTUAL Tom Knipe, City Deputy Director for Economic Development I. Call to Order Chair Proulx called the meeting to order at 3:32 P.M. II. Agenda Additions/Deletions None. III. Public Comments (3-minute max. per person) None. IV. Review of Meeting Minutes: October 11th, 2022 Fleming moved, seconded by Hamilton, to approve the minutes, with no modifications. Carried Unanimously: 5-0 V. Feasibility Analysis for Shared-Use Commercial Kitchen — Review & Discussion Knipe explained the feasibility analysis emerged from “Growing Small Scale Manufacturing in Downtown Ithaca: An Action Plan” (March 2022), which identified a strong need for shared kitchen facilities to support local food-product businesses. He noted Friends of Ithaca Farmers Market, a 501 (c) (3) non-profit organization, has been approached to serve as the fiscal host or umbrella organization for the “Sharing Kitchen — Ithaca (SKI)” facility and a $150,000 grant application has been submitted to Tompkins County for new/used equipment. IURA EDC Meeting Minutes November 8, 2022 Page 2 of 7 Rotondi thanked the IURA for its contribution to development of the feasibility analysis and walked through following presentation slides. IURA EDC Meeting Minutes November 8, 2022 Page 3 of 7 IURA EDC Meeting Minutes November 8, 2022 Page 4 of 7 IURA EDC Meeting Minutes November 8, 2022 Page 5 of 7 IURA EDC Meeting Minutes November 8, 2022 Page 6 of 7 Ackerman remarked she is curious to know more details about the operational structure of the project and the long-term plan for the for-profit LLC component, as well as whether Friends of Ithaca Farmers Market would eventually be replaced with another non-profit. Rotondi replied they can only project so far into the future in terms of how it would be structured and institutionalized. Schwerin agreed, adding they are focusing on raising approximately $300,000. If they are fortunate enough to be granted the $150,000 from the County, then they would only have to repay $150,000 for start-up costs, which would also de-risk the project for investors. Hamilton asked who would own the LLC. Schwerin replied, the consortium of investors, as well as Friends of Ithaca Farmers Market. Hamilton asked if Schwerin had considered a Simple Agreement for Future Equity (SAFE) financing arrangement, which would not count as debt and could therefore open up other types of funding opportunities. Schwerin responded, yes. Hamilton asked if Schwerin had considered structuring the project as a certified B Corp to demonstrate the community benefit. Schwerin replied, yes; they did explore that, although they were leery of the compliance-related challenges and additional costs associated with that. Hamilton remarked she used to operate business development for the Ithaca Air Service Board (ASB) and had to raise a revenue guarantee of $250,000 in financial commitments, which ASB could say it would not actually need, since it would reach its revenue targets. That would also seem like a promising avenue. VI. Old/Other Business A. IURA Financials Review: September 2022 Bohn reported all loan repayments are current, except the Tompkins Community Action (TCAction) loan, which is still being worked out. All lease payments are now current. IURA EDC Meeting Minutes November 8, 2022 Page 7 of 7 B. Staff Report None. VII. Adjournment The meeting was adjourned by consensus at 4:38 P.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.