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HomeMy WebLinkAboutMN-IURA-2023-08-18 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 8:30 A.M., Friday, August 18th, 2023 Common Council Chambers, Third Floor (City Hall) 108 E. Green St., Ithaca, NY 14850 Members: Chris Proulx, Chair; Karl Graham, Vice-Chair; Laura Lewis (Mayor); Donna Fleming Excused: Shaianne Osterreich; George McGonigal (Common Council Liaison) Vacancies: 0 IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual] City Staff: Lisa Nicholas, Director of Planning & Development Department Guests: None. I. Call to Order Chair Proulx called the meeting to order at 8:31 A.M. II. Agenda Additions/Deletions None. III. Public Comments None. IV. Review of Meeting Minutes: May 25, 2023 Lewis moved, seconded by Graham, to approve the meeting minutes, with no modifications. Carried Unanimously: 4-0 V. Economic Development Committee (EDC) A. Request from Southside Community Center, Inc. (SSCC) for Lease Extension of 530 W. Buffalo St. Property for Recycle Ithaca Bicycles (RIBs) Program Proulx explained the RIBs program has operated out of the 530 W. Buffalo Street building since 2008. The City leases the property to the IURA, which then sub-leases it to SSCC for the RIBs program. The existing lease expired in June 2023. SSCC is planning on relocating the RIBs program by January 31, 2025 and has requested the current sub-lease agreement be extended through January 31, 2025. The City also plans to install a new underground sewer pump station on the property in 2025. Approved: 10/27/23 IURA Minutes August 18, 2023 Page 2 of 12 Proulx moved, seconded by Fleming: Sub-Lease Extension for RIBs Program at 530 W. Buffalo Street WHEREAS, the Recycle Ithaca Bicycles (RIBs) program is a non-profit community bicycle shop and youth program operated by the Southside Community Center, Inc. (SSCC) that provides refurbished bicycles in exchange for work hours and offers bicycle repair classes, and WHEREAS, the RIBs program has operated at a former sewer pump station building owned by the City of Ithaca at 530 W. Buffalo Street (The Property) since 2008, and WHEREAS, the City of Ithaca leases The Property to the Ithaca Urban Renewal Agency (IURA), who in turn subleases The Property to SSCC for use by the RIBs program, and WHEREAS, the current monthly rent is $501, which is collected by the IURA and paid over to the City of Ithaca, and WHEREAS, the lease expired in June 2023, and WHEREAS, SSCC seeks to relocate the RIBs program to the Southside neighborhood, and WHEREAS, the City plans to install a new underground sewer pump station at the Property in 2025 that will reduce the leasable area at the Property, and WHEREAS, SSCC agrees to move out of the Property by January 31, 2025 and requests the current sub- lease agreement be modified to extend the term through January 31, 2025, and WHEREAS, at its August 8, 2023 meeting, the Economic Development Committee discussed this matter and recommended the following action; now, therefore be it RESOLVED, that the IURA hereby approves an amendment of the sub-lease agreement between the IURA and Southside Community Center, Inc. for the 530 W. Buffalo Street property to extend the term of the sub-lease to January 31, 2025, and be it further RESOLVED, that IURA approval is conditioned upon the City of Ithaca Common Council approval to extend the term of the City/IURA lease agreement for 530 W. Buffalo Street through at least January 31, 2025, and be it further RESOLVED, that the IURA Chair is hereby authorized, subject to review by IURA legal counsel, to execute any and all agreements and documents necessary to implement this resolution. Carried Unanimously: 4-0 IURA Minutes August 18, 2023 Page 3 of 12 B. Inlet Island Urban Renewal Project: Authorize Procurement of Professional Services to Facilitate NYSDEC Lands Right Transaction Proulx explained that the IURA recently received NYSDEC approval of a conceptual framework for land transactions on Inlet island to facilitate the project, which will now allow the developer to proceed with a site plan review submission. To develop a final binding agreement with NYSDEC, the IURA Board needs to authorize surveying, appraisal, legal services, and permit fee expenses, which are all reimbursable costs upon conveyance of the property to the developer. Graham asked about who would be responsible for addressing any potential environmental issues that are identified. Bohn replied the developer would be expected to assume all responsibility for those costs, including sub-surface remediation. The City would only be responsible for costs associated with environmental issues identified on its own property. Lewis asked if Bohn could provide any ballpark estimates for any fees associated with the project, and when he believes the project would actually begin to be developed. Bohn responded development would begin after the sub-surface remediation. In terms of costs, the initial appraisal, for example, was $9,000. He expects survey work to be in the $10,000 range. Proulx moved, seconded by Fleming: Inlet Island Urban Renewal Project — Authorize Procurements for DEC Lands Transaction WHEREAS, on October 22, 2022, the IURA approved the Finger Lakes Development, LLC’s (Sponsor’s) development program for an urban renewal project on Inlet Island and authorized development and submission of a Disposition and Development Agreement (DDA) for developer execution that establishes the conditions and terms for proposed conveyance of properties for the urban renewal project, and WHEREAS, the DDA will establish a milestone schedule for the project, including Sponsor completion of environmental review and Site Plan Review for the project, and WHEREAS, the development proposal requires acquisition of property controlled by the New York State Department of Environmental Conservation (NYSDEC), and WHEREAS, whereas environmental and Site Plan Review require clear boundaries of the development site, which is dependent upon completion of proposed land transactions with NYSDEC, and WHEREAS, IURA and City staff have been negotiating terms and conditions of a conceptual framework of land transactions on Inlet island to facilitate the urban renewal project and dredging of area waterways, and has now received a positive response from NYSDEC that will allow the developer to proceed with site plan submission and establishment of a milestone schedule in the DDA, and WHEREAS, to advance to a binding agreement regarding NYSDEC land transactions will require procurement of surveyor, appraisal, and legal services and payment of permit fees, which are reimbursable expenses upon conveyance of the property to the developer, and IURA Minutes August 18, 2023 Page 4 of 12 WHEREAS, the Economic Development Committee reviewed this matter at its August 8, 2023 meeting and recommended the following action; now, therefore, be it RESOLVED, that the IURA hereby authorizes staff to procure appropriate and necessary professional services, and pay required permit fees to develop a binding lands rights transfer agreement at Inlet Island with NYSDEC to facilitate the urban renewal project and dredging activities; and be it further RESOLVED, that the IURA Chair is authorized to execute any permit applications or other documents necessary to develop the proposed lands right transfer agreement. Carried Unanimously: 4-0 C. Committee Chairperson Report None. VI. Governance Committee (GC) A. Review of IURA Mission Statement — Report Fleming explained the Committee reviewed the Mission Statement to discuss ideas for any additional language to include. The Committee did not identify any new language it believed should be included, but it decided to submit the Mission Statement to the IURA Board, in case the Board identified any language or issues to include, which are missing from the current version (e.g., sustainability and equity). Graham suggested adding the following additional language to the mission statement: “The IURA strives to carry out its mission in an equitable and sustainable manner, and to build and maintain an inclusive community with the input of the people and organizations we serve.” No objections were raised. Proulx remarked the Governance Committee could be tasked with reviewing Graham’s proposed language and identifying any other additions or modifications to the statement. B. IURA Fiscal Health Report Proulx asked if anyone had any questions about the contents of Bohn’s July 25, 2023 “IURA Fiscal Stability – Issues and Opportunities” memorandum to the Committee. Graham asked about the section titled “Uncompensated IURA Staff Work on City Collaborations/Initiatives.” He fully supports IURA staff being fully reimbursed by the City for its work on City-related projects and initiatives, and he wondered what that underlying process entails. Bohn responded whenever the IURA is involved in a property transaction that goes before Common Council for approval, the associated resolution includes a provision for reimbursement to the IURA for its time. In other situations, however, no formal resolution is submitted to Common Council, so there is no mechanism for the IURA to be reimbursed for its time. One such example is the IURA’s financial audit expenses, which would be an appropriate City expense since the IURA is a blended component of the City’s own finances. Proulx remarked that the IURA’s ̴$25,000 in unreimbursed expenses (not including audit expenses) are meaningful and significant. He suggested asking the City to formally incorporate a not-to-exceed line-item amount in its annual budget to cover these kinds of expenses. IURA Minutes August 18, 2023 Page 5 of 12 Lewis recommended the IURA create a formal presentation for Common Council, so that the Council fully understands all the IURA’s work, budget, and structure. C. Committee Vice-Chairperson Report None. VII. Neighborhood Investment Committee (NIC) A. HUD Entitlement Grant Program 1. Designate GIAC, Inc. As 2023 Community-Based Development Organization (CBDO) Graham moved, seconded by Lewis: 2023 IURA Designation of Greater Ithaca Activities Center, Inc. (GIAC, Inc.) As Community-Based Development Organization WHEREAS, the Board of Greater Ithaca Activities Center, Inc. (GIAC, Inc.) seeks designation by the Ithaca Urban Renewal Agency (IURA) as a Community-Based Development Organization (CBDO), and WHEREAS, the City of Ithaca has designated the IURA to administer the City’s HUD Entitlement Program that oversees Community Development Block Grant funds awarded to the City, and WHEREAS, an eligible category of CDBG activities is a “Special Activity by CBDO”, that offers certain advantages, such as exemption from the 15% expenditure cap otherwise applicable to public service activities, authorization to carry out new housing construction (normally prohibited with CDBG funds), and discretion to allow income generated by a CDBG-funded activity to not be considered CDBG program income, and WHEREAS, the following four tests established at CFR Title 24 §570.204 must be met to qualify under a category of “Special Activity by CBDOs”: 1. The entity qualifies as a CBDO, including the 51% board membership test; 2. The CBDO will undertake an eligible project; 3. That the CBDO will carry out the funded activity directly or with an entity other than the grantee; 4. That the CBDO will not carry out a prohibited activity, and WHEREAS, a CBDO must maintain at least 51% of its governing body’s membership to be made up of any combination of the following: ● Low- and moderate income residents of its area of operation ● Owners or senior officers of private establishments and other institutions located in its area of operation ● Representatives of low- and moderate-income neighborhood organizations located in its area of operation, and WHEREAS, a CBDO must have as its primary purpose the improvement of the physical, economic, or social environment of its geographic area of operation, with a particular emphasis on the needs of low- and moderate-income persons, and IURA Minutes August 18, 2023 Page 6 of 12 WHEREAS, the project undertaken by the CBDO must qualify as one or more of the following project types: ● neighborhood revitalization; ● community economic development; ● energy conservation project; and WHEREAS, IURA evaluated GIAC, Inc.’s CBDO application and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that Greater Ithaca Activities Center, Inc. meets the requirements for eligibility as a CBDO, and that the GIAC, Inc.’s “Hospitality Employment Training Program” qualifies as an eligible CBDO activity, and be it further RESOLVED, that the IURA hereby designates Greater Ithaca Activities Center, Inc. as a Community-Based Development Organization (CBDO) and its “Hospitality Employment Training Program (HETP) Job Placements” as eligible for CDBG funding under the category of “Special Activities by CBDOs.” Carried Unanimously: 4-0 2. Designate INHS, Inc. As 2023 Community Housing Development Organization (CHDO) & CBDO Graham moved, seconded by Fleming: 2023 Designation of Ithaca Neighborhood Housing Services, Inc. (INHS) As Community Housing Development Organization (CHDO) and Community-Based Development Organization (CBDO) WHEREAS, the Ithaca Urban Renewal Agency (IURA) has been designated by the City of Ithaca as the Lead Agency to develop, administer and implement the HUD Entitlement Grant program, including funds received through the HOME Investment Partnerships (HOME) program, and WHEREAS, grant recipients under the HOME program are termed Participating Jurisdictions (PJs), and WHEREAS, PJs must reserve not less than 15% of their HOME allocation for investment in housing to be developed, sponsored, or owned by Community Housing Development Organizations (CHDOs), and WHEREAS, each PJ must annually identify CHDOs that are capable of carrying out projects to address priority housing needs identified in the Consolidated Plan, and WHEREAS, a CHDO is a specific type of community-based non-profit organization as defined in 24 CFR §92.2, and WHEREAS, on December 27, 2023, Ithaca Neighborhood Housing Services, Inc. (INHS) submitted materials documenting its qualifications and requested renewal of its designation as a CHDO by the IURA, and WHEREAS, on May 25, 2023, IURA Staff completed a point-in-time review of said documents, and IURA Minutes August 18, 2023 Page 7 of 12 WHEREAS, at its June 8,2023 meeting, the Neighborhood Investment Committee of the Ithaca Urban Renewal Agency compared the submitted materials against CHDO criteria and recommends the following; now, therefore be it RESOLVED, that the IURA, acting in its capacity as the Lead Agency for the Participating Jurisdiction of the City of Ithaca, hereby renews its designation of Ithaca Neighborhood Housing Services, Inc. as a CHDO for the 2023 Action Plan, and be it further RESOLVED, that the IURA, acting in its capacity as the Lead Agency for the Participating Jurisdiction of the City of Ithaca, and pursuant to 24 CFR §570.204(c)(3) hereby renews its designation of Ithaca Neighborhood Housing Services, Inc. as a Community Based Development Organization (CBDO) for the 2023 Action Plan, pending input from HUD. Carried Unanimously: 4-0 3. Request from Catholic Charities of Tompkins/Tioga Counties (CCTT) to Modify Household Eligibility Criteria for Security Deposit Assistance Program Graham explained that CCTT proposes replacing its standard first-time beneficiary only rule with a one-time- in-five years beneficiary rule, while also exempting households exiting homelessness and households fleeing or attempting to flee domestic violence from this rule. Graham moved, seconded by Lewis: Program Guidelines Revisions for “Security Deposit Assistance for Vulnerable Households” WHEREAS, Catholic Charities of Tompkins/Tioga Counties (CCTT) is the sponsor for the “Security Deposit Assistance for Vulnerable Households,” (Security Deposit Program) activity which has been awarded HOME funding in 2021, 2022, and 2023 Program Years, and WHEREAS, CCTT developed the Security Deposit Program because the lack of a security deposit funding was preventing homeless and low-income households from securing stable rental housing, and WHEREAS, the Security Deposit Program provides full security deposits to aid income-qualified households secure housing, and WHEREAS, an executed funding contract is in place for the 2021 Program Year and the contract is in draft form for the 2022 Program Year, and WHEREAS, CCTT is updating their policy and procedures guidelines and recommends modifications to the eligibility criteria for the program to increase access to stable housing for certain vulnerable households, and WHEREAS, the current funding contract states: IURA Minutes August 18, 2023 Page 8 of 12 (ix) per Sub-Recipient’s Program Guidelines and long-standing policy, security deposit assistance shall be limited to first-time beneficiaries, unless an applicant is enrolled in the Housing for School Success Program or has been issued a Rapid Rehousing voucher. and, WHEREAS, on May 18, 2022, the IURA modified CCTT’s 2021 contract to extend an exception to CCTT’s one-time beneficiary rule to households experiencing homelessness, and WHEREAS, on August 2, 2023, CCTT proposed the following changes to its Project Guidelines to expand eligible beneficiaries in program year 2022 and subsequent contracts: • replace first-time beneficiary rule with one-time-in-five years beneficiary rule, • include exceptions to this revised limitation for households with any of the following characteristics: o exiting homelessness, o fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking as defined by HUD, o an applicant who was a minor living in a household of a previous beneficiary, and who is now an adult applicant, • remove the exception for recipients of a Rapid Rehousing voucher, and WHEREAS, with repeat applicants, CCTT will initiate an effort to understand the disposition of the previous CCTT security deposit by asking: • the disposition of the applicant’s previous CCTT security deposit, and • if a partial or no security deposit was returned, why?, and WHEREAS, such revisions to program guidelines align with the goals of the City of Ithaca’s HOME-ARP Allocation Plan and the IURA-endorsed “Home Together, Tompkins” plan developed by the City of Ithaca/Tompkins County Continuum of Care, and WHEREAS, the Neighborhood Investment Committee discussed this matter at its August 11, 2023 meeting and recommended the following action; now, therefore, be it RESOLVED, the IURA hereby approves the following changes to the HOME-assisted security deposit assistance program: • replace the first-time beneficiary rule with one-time-in-five years beneficiary rule, • include exceptions to this revised eligibility limitation for households with any of the following characteristics: o exiting homelessness, o fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking as defined by HUD1, 1 Definition of Qualifying Population 3 in CPD Notice 21-10, “Requirements for Use of Funds in the HOME-American Rescue Plan Program,” September 13, 2021 at https://www.hudexchange.info/resource/6479/notice-cpd-2110-requirements-for-the-use-of-funds-in-the-home-arp-program/ IURA Minutes August 18, 2023 Page 9 of 12 o an applicant who was a minor living in a household of a previous beneficiary, and who is now an adult applicant, and • remove the exception for recipients of a Rapid Rehousing voucher, And be it further RESOLVED, the IURA Chair is hereby authorized, subject to review by IURA legal counsel, to execute contracts with Catholic Charities of Tompkins/Tioga Counties for 2022 and 2023 “Security Deposit Assistance to Vulnerable Households,” as well as subsequent contracts, to include the above-stated changes to program guidelines. Carried Unanimously: 4-0 C. Committee Chairperson Report None. VIII. New/Other/Old Business A. East Hill Fire Station Urban Renewal Project: Authorize Addendum to Option Agreement for Property Dispositions Bohn explained that the developer failed to meet the deadlines contained in the Disposition and Development Agreement (DDA) with the IURA and delaying the transfer of the developer’s parcels to the IURA. The purpose of the addendum to the option agreement is to ensure the transaction remains feasible, while providing additional security and compensation to the City and IURA, in the event the developer fails to meet its obligations. Proulx moved, seconded by Graham: Authorize Addendum to Agreement for Relocation and Sale of East Hill Fire Station WHEREAS, on December 1, 2021, the City of Ithaca Common Council (“Common Council”) authorized the execution of an option agreement (“Agreement”) with 311 CA Associates, LLC (“Developer”) that, if exercised, would obligate Developer to convey to the City parcels located at 403 Elmwood Road and 408 Dryden Road (“Developer Parcels”), to be used for the construction of a new East Hill Fire Station, and to purchase the existing fire station located at 309 College Avenue, and WHEREAS, on February 22, 2022, the City and Developer executed the Agreement, and WHEREAS, on May 26, 2022, the Ithaca Urban Renewal Agency (“IURA”), with the authorization of Common Council, accepted transfer of the 309 College Avenue site and assignment of the Agreement for the purpose of furthering the contemplated transaction, and WHEREAS, on July 28, 2022, the IURA, acting as Lead Agency, determined that the property transfers will result in no significant adverse impacts on the environment, and IURA Minutes August 18, 2023 Page 10 of 12 WHEREAS, on July 28, 2022, the IURA approved a Disposition and Development Agreement (DDA) to facilitate construction of the new fire station and redevelopment of the 309 College Avenue site, and WHEREAS, on October 12, 2022, the IURA exercised the option set forth in the Agreement, and WHEREAS, the Developer failed to meet the deadlines contained in the Agreement for transfer of the Developer Parcels to the IURA, delaying the City’s commencement of construction on the new fire station, and WHEREAS, the Common Council desires to proceed with the contemplated transaction, but to amend the terms thereof to ensure that the transaction remains feasible while providing additional security and compensation to the City in the event that Developer fails to meet its obligations; now, therefore, be it RESOLVED, that the IURA, subject to review by the City Attorney, is hereby authorized and requested to execute an Addendum to the Option Agreement with the Developer in a form substantially similar to that attached hereto, and be it further RESOLVED, that the IURA, subject to review by the City Attorney, is further authorized and requested to act on behalf of the City to negotiate any such further terms and execute all such further documents, including without limitation an escrow agreement, as may be necessary to consummate the contemplated transaction in accordance with the City’s interests, and be it further RESOLVED, that the IURA shall be reimbursed for all reasonable costs incurred in acting on the City’s behalf as provided in this resolution. Carried Unanimously: 4-0 B. HUD Entitlement Program: Founders Way (2019 Project #3) — Mortgage Loan Modification Bohn explained the primary permanent lender is seeking a modification of the IURA loan agreement and mortgage, so that all loans become due at the same time. Bohn proposed inserting an additional “Resolved” clause, authorizing the IURA Chairperson to approve and execute any documents amending the IURA Promissory Note to bring the Note into conformity with the Modification Agreement. No objections were raised. Fleming moved, seconded by Lewis: Founders Way — Promissory Note & Mortgage Modification Agreement (2019 HUD Entitlement Program Project #3) WHEREAS, on June 3, 2021, the IURA executed a $199,900 HOME loan agreement with Founders Way, LLC to assist construction of 11 of the 75-units in the Founders Way affordable housing project located at 320 W. Buffalo Street, and IURA Minutes August 18, 2023 Page 11 of 12 WHEREAS, the loan provided for a 24-month construction period without interest followed by a 30-year term at 1% interest-only payments due annually subject to available cash flow beginning July 1, 2023, and WHEREAS, any accrued interest shall be added to the outstanding principal balance and is due at the end of the loan term, and WHEREAS, the project was completed in November 2022 with conversion to permanent financing planned for April 2023, and WHEREAS, the conversion to permanent financing experienced delays and is now scheduled for August 28, 2023, and WHEREAS, the primary permanent lender seeks a modification to the IURA loan and mortgage so that the IURA loan shall not expire prior to primary lender’s note or mortgage, and WHEREAS, the IURA loan is scheduled to expire on June 30, 2053, and WHEREAS, the primary lender’s loan is anticipated to expire on August 27, 2053; now, therefore, be it RESOLVED, that the IURA Chairperson is authorized, subject to review by IURA legal counsel, to execute a Promissory Note and Mortgage Modification Agreement to extend the term of the IURA loan for the Founders Way project (2019 HOME, Project #3) to be co-terminus with the loan from The Community Preservation Corporation, and be it further RESOLVED, that the IURA shall be reimbursed from Founders Way, LLC for all reasonable out-of-pocket expenses incurred for this matter, and be it further RESOLVED, that the IURA Chairperson is authorized, subject to review by IURA legal counsel, to approve and execute any and all documents to amend the IURA Promissory Note to bring the Note into conformity with the Modification Agreement and address the delayed closing on permanent financing. Carried Unanimously: 4-0 C. Review of IURA Financials: June 2023 Bohn reviewed the Grants Summary, explaining that the left-hand “On Schedule” column calls out any projects (with a ) that are not progressing on schedule and may need attention. The PY2021 Security Assistance Delivery project is being asked to submit vouchers for its unexpended funds. Most projects have been operating relatively smoothly for the most part. All loan payments are current as of today. All lease payments are also current, with the exception of Southside Community Center, Inc. (SSCC), which is one month late. IURA Minutes August 18, 2023 Page 12 of 12 D. REPORTS: IURA Chair, Mayor, Common Council Liaison, & Staff Mayor’s Report Lewis reported that the City’s budget season is currently in high gear. Proposed capital projects will also be presented to Common Council for review on September 13, 2023. At this time, the City is especially focused on recruiting and hiring staff to fill numerous open and new positions, including the new City Manager position. IURA Chairperson None. Common Council Liaison Report None. Staff Report Bohn announced that the 2023 HUD Entitlement Program grant agreement is in the meeting agenda packet and has been approved. The HUD letter mentions additional requirements, like Build America, Buy America (BABA) for Community Development Block Grant Program (CDBG), which would become immediately applicable to Community Development Block Grant Program (CDBG) projects using iron and steel. BABA requirements are only triggered for projects of $200,000 or more. Bohn remarked that the IURA has started monitoring affordable housing for The Ithacan project, which will set aside 20 rental units to be rented at below-market rates. IX. Adjournment The meeting was adjourned by consensus at 10:07 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.