HomeMy WebLinkAboutMN-IURA-2023-05-05
108 E. Green St.
Ithaca, NY 14850 (607) 274-6565 DRAFT MINUTES
ITHACA URBAN RENEWAL AGENCY BOARD
8:30 A.M., Thursday, May 25th, 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: George McGonigal (Common Council Liaison)
Vacancies: 1
IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual]
City Staff: None.
Guests: Kate Donohue, Cinemapolis
I. Call to Order
Chair Proulx called the meeting to order at 8:30 A.M.
II. Agenda Additions/Deletions
Bohn announced he would like to add a proposed contract modification to 2021 Project #7 “Security
Deposit Assistance for Vulnerable Households,” to include an exception to the program’s long-standing
policy of only providing one-time assistance to most households, extending the exception include all
households experiencing homelessness. No objections were raised.
III. Public Comments
DEIRDRE KURZWEIL, Sunny Days of Ithaca, expressed her long-standing concerns with how development
of the Eastern Section of the Green Street Garage has negatively impacted her business. She
reiterated her concerns regarding the negotiation process with Ithaca Properties, LLC for construction
of The Ithacan apartment building, including when the parcel was subdivided and the Disposition and
Development Agreement (DDA) was fully executed.
TODD KURZWEIL, Sunny Days of Ithaca, asked why the Ithaca College Physician Assistant Studies
Program’s portion of the project was not considered in the negotiation process or was required to
undergo a Public Hearing. He expressed appreciation for the work the IURA has done on his behalf.
IV. Executive Session to Discuss Proposed, Pending, or Possible Litigation
― EXECUTIVE SESSION ―
Proulx moved, seconded by Fleming, to open the Executive Session at 8:37 a.m.
Carried Unanimously: 4-0
Approved: 8/18/23
IURA Minutes
May 25, 2023
Page 2 of 12
Proulx moved, seconded by Lewis, to close the Executive Session at 8:53 a.m.
Carried Unanimously: 4-0
No action was taken in the Executive Session.
V. Review of Meeting Minutes: April 27, 2023
Fleming moved, seconded by Lewis, to approve the meeting minutes, with no modifications.
Carried Unanimously: 4-0
VI. Economic Development Committee (EDC)
A. Seventh Art Corporation of Ithaca: Request for Assistance to Support Cinemapolis Sustainability Plan
Proulx explained the Committee recently reviewed a request for financial assistance in the form of rent
abatement from Cinemapolis, which encountered significant financial difficulties due to the COVID-19
pandemic, and construction of the Asteri and conference center projects. The City originally partnered
with the landlord, Cayuga Green, LLC, and leased the property to the IURA, which then sub-leased it to
Cayuga Green, LLC, which re-outfitted the theatre. Prior to development of the Asteri project, the City
owned the Cinemapolis property; however, Asteri Parking now owns the parking beneath the property,
since it was pledged as part of a bond sale. The City currently only possesses a lease interest in the
theatre. Any rent abatement granted by the IURA would be contingent on a pending agreement between
Cayuga Green, LLC and Cinemapolis. The rent abatement would be equivalent to approximately $44,000
for one year’s rent reduction, a cost the City would ultimately incur. The final sequence in the process
would require the Mayor’s approval and she supports it.
Proulx moved, seconded by Lewis:
IURA Participation in Cinemapolis Assistance Plan
WHEREAS, on May 5, 2023, the Seventh Art Corporation of Ithaca (“Cinemapolis”), the not-for-profit
operator of the Cinemapolis 5-screen movie theater at 120 E. Green Street, submitted a request to
the IURA for financial assistance in the form of a rent abatement to their landlord to be passed down
to reduced rent to Cinemapolis, and
WHEREAS, a short-term rent reduction is one element of the Cinemapolis Assistance Plan – Proposed
Actions to Support the Recovery of Cinemapolis, dated January 9, 2023, developed by the Downtown
Ithaca Alliance (DIA), and
WHEREAS, the DIA Plan identified the following reasons for a reduction in patron traffic:
• The pandemic affected the entertainment habits of the public, causing more people to discover
and pursue online and streaming alternatives.
• The pandemic has caused more caution on the part of older, former patrons who remain
somewhat reluctant to return to in-person indoor activities.
IURA Minutes
May 25, 2023
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• The surrounding construction generated by The Ithacan and Vecino Asteri projects has affected
the perception of the theater as being open and accessible to the public. This perception also
applies to the new Green Street parking garage, which until recently had been closed for
construction.
• The loss of a long-standing Executive Director, who has only just now been replaced, and
WHEREAS, the DIA Plan recommended the following strategies to assist Cinemapolis regain financial
stability:
1. Pursue short-term rent reductions
2. Seek longer term ownership of facility and/or reduce tax liability
3. Create an enhanced Cinemapolis marketing strategy
4. Physical landscape and neighborhood improvements, and
WHEREAS, substantial progress has been made to reduce the property tax liability, enhance
marketing and improve the physical landscape around Cinemapolis, and
WHEREAS, during COVID-19 pandemic emergency, New York State required movie theaters to close
and institute social distancing and limit capacity when allowed to re-open in 2021, and
WHEREAS, Cinemapolis reopened at full capacity in April 2022, and
WHEREAS, the lingering effects of the COVID-19 pandemic continue to depress earned revenues
resulting in a projected 2023 budget shortfall estimated at $150,000, and
WHEREAS, in 2007, the City of Ithaca entered into a lease agreement with the IURA to facilitate
relocation and expansion of the Cinemapolis theater to the ground floor of the Green Street parking
garage premises, and
WHEREAS, the IURA entered into a sublease agreement with Cayuga Green, LLC on July 24, 2007 for
the 11,305 SF premises located at the ground level of the Green Street parking garage at 120 E.
Green Street, and
WHEREAS, Cayuga Green, LLC completed interior improvements and executed a lease of the
premises with the Cinemapolis for use as a 5-screen cinema facility, and
WHEREAS, annual 2023 base rent due to the IURA from Cayuga Green, LLC is $43,887.80, and
WHEREAS, the 2023 monthly base rent due to Cayuga Green, LLC from Cinemapolis is $14,704.21,
and
WHEREAS, the City/IURA lease requires the IURA to pay to the City base rent collected from Cayuga
Green, LLC, and
IURA Minutes
May 25, 2023
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WHEREAS, any willingness of the IURA to approve the request from Cinemapolis for financial
assistance is not an admission that it has any responsibility for economic hardships experienced by
Cinemapolis but is rather recognition of the strong community and economic benefits a financially
stable Cinemapolis will provide to the community in the future; now, therefore, be it
RESOLVED, the IURA does hereby endorse and participate in the Downtown Ithaca Alliance’s
Cinemapolis Assistance Plan designed to assist Cinemapolis regain financial stability it enjoyed prior
to the COVID-19 pandemic, and be it further
RESOLVED, that the IURA authorizes the IURA Chair, subject to IURA legal counsel review, to execute
a lease addendum between the IURA and Cayuga Green, LLC for the cinema premises located at 120
E. Green Street with Cayuga Green, LLC substantially in compliance with the following terms:
1. The IURA will abate all base rent due for 2023 in the total amount $43,887.80.
2. The abatement will be implemented as follows:
a. the IURA will reimburse Cayuga Green, LLC for rent paid for January through May 2023 in
the amount of $17,715.85.
b. Cayuga Green, LLC will not be obligated to pay the IURA base rent for the months of June
through December 2023.
3. The rent abatement shall be contingent on the signing of a lease addendum to the lease
between Cayuga Green, LLC and Seventh Art Corporation of Ithaca for the cinema premises
concurrently with the above-referenced addendum on the following terms, and Cayuga Green,
LLC’s compliance with such terms:
a. Cayuga Green, LLC will abate a total of $43,887.80 in base rent due from Seventh Art
Corporation of Ithaca to Cayuga Green, LLC as follows:
i. The amount of $14,704.21 (the sum of $10,965.36 in rent rebated to Cayuga Green, LLC
plus $3,738.85 in abated rent due IURA) will be applied towards June 2023 rent, and no
further base rent will be due from Seventh Art Corporation of Ithaca for June 2023.
ii. The amount of $10,489.34 (the sum of $6,750.49 in rent rebated to Cayuga Green, LLC plus
$3,738.85 in abated rent due IURA) will be applied towards July 2023 rent, resulting in
$4,214.87 due from Seventh Art Corporation to Cayuga Green, LLC.
iii. Thereafter for the months of August through December 2023, the amount of base rent due
from Seventh Art Corporation of Ithaca to Cayuga Green LLC will be reduced by
$3,738.85/month, resulting in monthly base rent of $10,965.36.
Carried Unanimously: 4-0
B. Cherry Street Urban Renewal Project: Rescind 2020 “Sponsor” Designation
Proulx explained that, prior to the COVID-19 pandemic, the IURA designated Urban Core, LLC as a
“qualified and eligible sponsor” to potentially acquire six acres of undeveloped land on the southern
portion of Cherry Street to undertake an urban renewal project. Since then, however, Urban Core, LLC has
indicated it is no longer in position to move forward with the project, due to higher construction costs,
higher interest rates, and demands from its other projects.
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May 25, 2023
Page 5 of 12
Proulx moved, seconded by Graham:
Rescind Designation of Urban Core, LLC as Sponsor for the Cherry Street Urban Renewal Project
WHEREAS, on February 20, 2020, the IURA designated Urban Core, LLC as a “qualified and eligible
sponsor” to potentially acquire six acres of undeveloped land at the southerly end of Cherry Street to
undertake an urban renewal project, and
WHEREAS, progress on the project was stalled by the COVID-19 pandemic emergency declared in
March 2020, and
WHEREAS, various good-faith efforts by the Sponsor to advance the estimated $12 million
hospitality-focused mixed-use project faced challenges from the lengthy and lingering effects of the
pandemic, and
WHEREAS, recent correspondence from the Sponsor confirms that they are not in position to
methodically advance the project on a timely basis due to the heightened risk caused by higher
construction costs, increased interest rates, uncertain neighborhood conditions, and demands from
other projects the Sponsor has taken on, and
WHEREAS, clarifying the status of the urban renewal project will allow the IURA to re-examine how
best to utilize the project site; now, therefore, be it
RESOLVED, that the IURA hereby rescinds without prejudice the designation of Urban Core, LLC, as a
“qualified and eligible sponsor” for the Cherry Street Urban Renewal Project located at the southerly
end of Cherry Street and withdraws the offer to execute an Exclusive Negotiation Agreement.
Carried Unanimously: 4-0
C. Appointment of Committee Chairperson
Fleming moved, seconded by Graham:
2023 Appointment of IURA Economic Development Committee Chairperson
WHEREAS, IURA By-laws provide that the committee membership shall elect its own committee Vice-
Chairperson and nominate a candidate for committee Chairperson for consideration by the Agency,
and
WHEREAS, per the Bylaws, an Agency member shall fill either the committee Chairperson or
committee Vice-Chairperson position, and
WHEREAS, officers of each committee serve a one-year term, but continue to hold office until their
successor is selected or appointed, and
WHEREAS, the current Committee Chairperson is Chris Proulx, and
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May 25, 2023
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WHEREAS, the Committee Vice-Chairperson position is vacant, and
WHEREAS, the committee elected Leslie Ackerman as Vice-Chairperson and nominated Chris Proulx
as Chairperson of the Economic Development Committee, now, therefore be it
RESOLVED, that Chris Proulx be appointed as Chairperson of the IURA Economic Development
Committee.
Carried Unanimously: 4-0
D. Committee Chairperson Report
Proulx announced that Derek Adams (Associate Professor of English literature at Ithaca College) has agreed
to serve on the Committee.
VII. Neighborhood Investment Committee (NIC)
A. Community Based-Development Organization (CBDO) Designations
1. Historic Ithaca, Inc.
Graham explained that IURA staff reviews all CBDO applications to ensure each organization meets the
eligibility criteria, including the Board member eligibility test.
Graham moved, seconded by Lewis:
2023 IURA Designation of Historic Ithaca, Inc. (HI) as a
Community-Based Development Organization
WHEREAS, the Board of Historic Ithaca, Inc. (HI) 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
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May 25, 2023
Page 7 of 12
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
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 HI’s CBDO application and recommended the following; now, therefore,
be it
RESOLVED, that the IURA determines that Historic Ithaca meets the requirements for eligibility as a
CBDO, and that the Historic Ithaca Job Skills Training project qualifies as an eligible CBDO activity, and
be it further
RESOLVED, that the IURA hereby designates Historic Ithaca as a Community-Based Development
Organization (CBDO) and “Historic Ithaca Work Preserve Job Placements” as eligible for CDBG
funding under the category of “Special Activities by CBDOs”.
Carried Unanimously: 4-0
2. Finger Lakes ReUse, Inc. (FLRU)
Graham moved, seconded by Fleming:
2023 IURA Designation of Finger Lakes ReUse, Inc. (ReUse) As
Community-Based Development Organization
WHEREAS, the Board of Finger Lakes ReUse, Inc. (ReUse) 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
IURA Minutes
May 25, 2023
Page 8 of 12
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
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 ReUse’s CBDO application and recommended the following; now,
therefore, be it
RESOLVED, that the IURA determines that Finger Lakes ReUse, Inc. meets the requirements for
eligibility as a CBDO, and that the ReUse’s “Building Quality Career Paths through Reuse” program
qualifies as an eligible CBDO activity, and be it further
RESOLVED, that the IURA hereby designates Finger Lakes ReUse as a Community-Based Development
Organization (CBDO) and its “Building Quality Career Paths through Reuse” as eligible for CDBG
funding under the category of “Special Activities by CBDOs.”
Carried Unanimously: 4-0
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May 25, 2023
Page 9 of 12
B. Appointment of Committee Chairperson
Graham explained that the Committee elected Shaianne Osterreich as its new Vice-Chair and nominated
him for re-appointment as Chair.
Lewis moved, seconded by Proulx:
2023 Appointment of IURA Neighborhood Investment Committee Chairperson
WHEREAS, IURA By-laws provide that the committee membership shall elect its own committee Vice-
Chairperson and nominate a candidate for committee Chairperson for consideration by the Agency,
and
WHEREAS, per the Bylaws, an Agency member shall fill either the committee Chairperson or
committee Vice-Chairperson position, and
WHEREAS, officers of each committee serve a one-year term, but continue to hold office until their
successor is selected or appointed, and
WHEREAS, the current Committee Chairperson and Vice-Chairpersons are Karl Graham and Fernando
de Aragon, and
WHEREAS, the committee elected Shaianne Osterreich as Vice-Chairperson and nominated Karl
Graham as Chairperson of the NI Committee, now, therefore be it
RESOLVED, that Karl Graham be appointed as Chairperson of the IURA Neighborhood Investment
Committee.
Carried Unanimously: 4-0
C. Committee Chairperson Report
Graham reported the Committee has one remaining vacancy, which it is seeking to fill. Candidates will be
considered at the Committee’s June 2023 meeting.
VIII. New/Other/Old Business
A. Contract Modification to 2021 Project #7: “Security Deposit Assistance for Vulnerable Households”
Bohn explained that Catholic Charities of Tompkins and Tioga Counties (CCTT) recently modified its
Program Guidelines to exempt households experiencing homelessness from its long-standing policy of
limiting assistance to first-time beneficiaries. CCTT requested that the IURA authorize a contract
modification to the 2021 contract to reflect this change.
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May 25, 2023
Page 10 of 12
Graham moved, seconded by Lewis:
Contract Modification to 2021 Project #7: “Security Deposit Assistance for Vulnerable Households”
WHEREAS, Catholic Charities of Tompkins and Tioga Counties (CCTT) is the project sponsor for 2021
Project #7 “Security Deposit Assistance for Vulnerable Households,” which provides full security
deposits to aid income-qualified households in securing housing, and
WHEREAS, on May 18, 2022, the IURA and CCTT executed a contract to implement Project #7, and
WHEREAS, Section 2. a. (ix) of the contract states:
“(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, CCTT has recently modified its Program Guidelines and long-standing policy to extend the
exception of first-time beneficiaries to include all households experiencing homelessness, and
WHEREAS, CCTT requests a contract modification to reflect this change in its Program Guidelines, and
WHEREAS, such a contract modification aligns with the goals of the City of Ithaca’s HUD-Approved
HOME-ARP Allocation Plan and the Tompkins County Continuum of Care’s City-endorsed “Home
Together, Tompkins” Plan; now, therefore, be it
RESOLVED, the IURA Chair is hereby authorized to execute a contract modification with Catholic
Charities of Tompkins-Tioga for 2021 Project #7, “Security Deposit Assistance to Vulnerable
Households,” to extend the exception to the one-time beneficiary eligibility requirement to any
households experiencing homelessness.
Carried Unanimously: 4-0
B. Temporary Staffing: Contract for Up to 140 Hours of Temporary Staffing for Meeting Management &
Minute-Taking
Bohn explained that IURA staff conducted research on how to reduce the current burden associated with
staffing IURA Board and Committee meetings, including generating meeting minutes. The proposed
resolution would authorize the IURA to enter into a contract of up to $5,000 with Express Employment
Professionals for temporary staffing to assist in remote meeting management and minute-taking.
Lewis moved, seconded by Graham:
Temporary Staff Support for Meeting Management
WHEREAS, the IURA has a need for a temporary staff position to facilitate remote meeting
management and potentially prepare meeting minutes, and
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May 25, 2023
Page 11 of 12
WHEREAS, Express Employment Professionals has submitted a proposal to the IURA to provide
temporary staffing services on a contract basis, and
WHEREAS, pay rates for an administrative job title range from $17.00-$25.00 per hour, with resulting
bill rates of $23.88-$37.31 per hour, and
WHEREAS, staff anticipates approximately 70 hours of meetings for the remainder of 2023, with an
equal number of work hours required to complete minutes for two committees, and
WHEREAS, such temporary staffing is an eligible expense from CDBG and HOME administration
funding, and
WHEREAS, staff recommends authorizing up to 140 hours of temporary staff work hours in 2023;
now, therefore, be it
RESOLVED, that the IURA Chairperson is authorized to enter into a contract with Express
Employment Professionals for up to $5,000 for temporary staffing to assist with remote meeting
management and minute-taking.
Carried Unanimously: 4-0
C. 2023 Action Plan: Public Comments Received to Date — Review
Mendizabal announced that the following Public Comments regarding the 2023 HUD Entitlement Program
Annual Action Plan were presented at the May 17, 2023 Public Hearing, during a Planning and Economic
Development Committee (PEDC) meeting:
1. One community member expressed concern with the draft plan’s inclusion of a housing project
sponsored by Habitat for Humanity of Tompkins/Tioga Counties, due to Habitat’s eviction of a disabled
person from the home she had been occupying.
2. One community member expressed concern that the needs of unhoused people staying in other
people’s homes (i.e., “couch surfers”) were not more fully explored in the 2023 draft Action Plan, given
couch surfers’ vulnerability to exploitation by their hosts.
Mendizabal explained that the commenters were thanked for their feedback and informed their
comments would be included in the public comment record submitted to HUD with the Action Plan. It was
also communicated to them that funding is allocated through a competitive selection process that
depends on the types of applications received; and no applications were received for projects addressing
the specific needs of unhoused “couch surfers.”
D. Review of IURA Financials: April 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 CDBG Spend-
Down Ratio is currently at 1.5029, which is extremely close to the required June 1st 1.5 spend-down
threshold deadline.
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May 25, 2023
Page 12 of 12
Bohn reported there are no significant outstanding loan payment delinquencies, except the Ithaca Coffee
Roasting Facility, which is usually very consistent with its payments. All lease payments are in good
standing, as of today.
E. REPORTS: IURA Chair, Mayor, Common Council Liaison, & Staff
IURA Chairperson
None.
Mayor’s Report
Lewis reported she has been continuing to search for IURA Board members to fill the board’s vacancy. The
City has been encountering a significant number of staff retirements.
Common Council Liaison Report
None.
Staff Report
Bohn announced that the City’s HOME-ARP Allocation Plan has been approved by HUD.
IX. Adjournment
The meeting was adjourned by consensus at 9:52 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.