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Home My WebLink AboutMN-IURA-2023-12-15 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 8:30 A.M., Friday, December 15th, 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; Shaianne Osterreich; George McGonigal (Common Council Liaison) Excused: None. Vacancies: 0 IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual] City Staff: Lisa Nicholas, Director of Planning & Development Department Guests: Kate Donohue, Executive Director, Cinemapolis I. Call to Order Chair Proulx called the meeting to order at 8:40 A.M. II. Agenda Additions/Deletions None. III. Public Comments None. IV. Review of Meeting Minutes: October 27, 2023 Lewis moved, seconded by Osterreich, to approve the meeting minutes, with no modifications. Carried Unanimously: 5-0 V. Economic Development Committee (EDC) A. Seventh Art Corporation of Ithaca: Request for Continued Assistance to Support Cinemapolis Sustainability Plan Proulx explained the proposed resolution addresses a request from Cinemapolis for continued financial assistance through June 2024 in the form of a rent abatement. The resolution was approved unanimously by the Committee. Donohue remarked the theater has made great strides towards achieving greater long-term financial stability and will continue to do so. Approved: 3/22/24 IURA Minutes December 15, 2023 Page 2 of 8 Graham asked, since it represents a pass-through to the City, whether Common Council needs to approve the request. Bohn replied that the technical terms of the rent agreement the IURA has with the City is that the IURA passes on any revenues it collects; so if no rent is collected, it simply would not be passed on to the City. He added that the rent the IURA is abating with the landlord is actually a percentage of the actual rent, so it is not a full rent abatement. It amounts to approximately $22,000. Proulx moved, seconded by Lewis: IURA Continued Participation in Cinemapolis Assistance Plan WHEREAS, on December 4, 2023, Seventh Art Corporation of Ithaca, the not-for-profit operator of the Cinemapolis 5-screen movie theater at 120 E. Green Street (Cinemapolis), submitted a request to the IURA for continued financial assistance through June 2024 in the form of a rent abatement to their landlord that will be passed down to reduce rent due from Cinemapolis, and WHEREAS, on May 9, 2023, the IURA endorsed the Downtown Ithaca Alliance’s Cinemapolis Assistance Plan designed to assist Cinemapolis regain financial stability it enjoyed prior to the COVID-19 pandemic that included the following recommended strategies: 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. Request physical landscape and neighborhood improvements, and WHEREAS, the IURA provided the requested a 12-month rent abatement in the amount of $43,887.80 that expires on 12/31/23, and WHEREAS, due to diligent management and fund raising, Cinemapolis projects a modest profit in 2023, and WHEREAS, Cinemapolis projects a modest loss in 2024 without a continued IURA rent abatement, and WHEREAS, construction completion at the adjacent Asteri/downtown community conference center is scheduled for April 30, 2024, with hosting of events at the conference center beginning in June 2024, and WHEREAS, Cinemapolis leases the cinema premises from Cayuga Green, LLC, who leases the premises from IURA, and WHEREAS, rent collected by the IURA on the cinema lease premises is remitted to the City of Ithaca, and WHEREAS, IURA monthly rent of $3,657.32 will be adjusted by CPI in May, and IURA Minutes December 15, 2023 Page 3 of 8 WHEREAS, any willingness of the IURA to approve the request for continued financial assistance from Cinemapolis 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, that the IURA hereby authorizes the IURA Chair, subject to IURA legal counsel review, to execute a lease addendum on the cinema premises located at 120 E. Green Street with Cayuga Green, LLC to abate all base rent due to the IURA from January 1, 2024 through June 30, 2024 contingent upon signing of a lease addendum between Cayuga Green, LLC and Seventh Art Corporation of Ithaca effectively passing on IURA abatements to Seventh Art Corporation of Ithaca as tenant to Cayuga Green, LLC. Carried Unanimously: 5-0 B. Committee Chairperson Report Proulx reported that the Committee is now fully staffed. VI. Neighborhood Investment Committee (NIC) A. Procurement of Housing Inspection Services for HOME-Assisted Projects Graham explained that HUD’s HOME Investment Partnerships Program (HOME) requires that HOME- funded affordable housing projects are periodically inspected. While this has been conducted by IURA staff in the past, there is a current backlog of approximately 33 housing units in need of inspection. In order to address the backlog, it has been proposed to hire a housing inspector, after which IURA staff would resume conducting the inspections. Graham moved, seconded by Fleming: Procurement of Housing Inspection Services for HOME-Assisted Projects WHEREAS, the IURA administers the City of Ithaca HOME Investment Partnerships Program (HOME), and WHEREAS, HOME requires periodic inspection of HOME-assisted units throughout the affordability period, and WHEREAS, the IURA adopted HUD’s Housing Quality Standards (HQS) as the standard for meeting HOME inspection standards, and WHEREAS, there approximately 33 HOME-assisted units in need of inspection, and WHEREAS, in order to complete inspections of HOME-Assisted units in a timely, efficient, and accurate manner, the staff recommends procurement of an independent contractor in an amount not to exceed $2,500, and IURA Minutes December 15, 2023 Page 4 of 8 WHEREAS, the staff has solicited interest from two qualified independent contractors to provide housing inspection services for at least $60/inspection, not to exceed a total of $2,500 for all inspections, and WHEREAS, the IURA has consulted with the City Controller’s Office regarding compliance with the IURA-adopted City of Ithaca Purchasing Policy, and WHEREAS, procuring housing inspection services with one of the two qualified independent contractors who have indicated interest at a fee of at least $60/inspection for a total amount not to exceed $2,500 complies with the City of Ithaca Purchasing Policy, and WHEREAS, inspection of HOME-assisted units is an eligible HOME delivery or administrative expense, and WHEREAS, the Neighborhood Investment Committee reviewed this matter at its November 2023 meeting and recommended the following action; now, therefore, be it: RESOLVED, the IURA hereby approves procurement of qualified housing inspection services for its HOME-assisted units, in an amount not to exceed $2,500, and be it further RESOLVED, that the funds shall derive from any unallocated HOME funds or HOME administration funds. Carried Unanimously: 5-0 B. Program Amendment #1 to 2023 HUD Action Plan: Project #7, SJCS “Reintegration Services Project” Graham explained a substitute resolution has been provided to the Board, replacing the one included in the agenda materials. The proposed resolution addresses a change to the 2023 Reintegration Services Project. As part of the project, St. John’s Community Services (SJCS) had purchased an existing group home for people in or recently exiting recovery, who need an affordable place to live. The project was originally funded with HOME funds, but it was subsequently discovered that HOME-funded projects require that each tenant has an actual lease, which was not how SJCS structured the project, since people in recovery do not necessarily know how long they would reside in the group home. Unfortunately, the proposed resolution does not fund the entire original $88,000 grant award, but it does fund $48,421.18. As noted in the resolution, the City Controller confirmed that reprogramming $24,900 in CDBG-CV funding from the $175,000 GIAC Youth Programming activity would still provide sufficient funds to fully reimburse the City for all documented expenses incurred. Bohn explained the substitute resolution includes the following additional “Whereas” and eliminates the struck-out language (further below) from the end of the second-to-last “Resolved.” “WHEREAS, the City Controller has confirmed that reprogramming $24,900 in CDBG-CV funding from the $175,000 GIAC Youth Programming activity will still provide sufficient funds to fully reimburse the City for all documented expenses incurred, and” IURA Minutes December 15, 2023 Page 5 of 8 “subject to confirmation from the City Controller that remaining $150,100.00 funding for the GIAC project is anticipated to be sufficient to reimburse all documented eligible GIAC costs,” Graham moved, seconded by Fleming: Program Amendment #1 to 2023 HUD Action Plan: Project #7, “SJCS Reintegration Services Project” Alternative Funding WHEREAS, the City of Ithaca’s 2023 HUD Entitlement Action Plan included an allocation of $88,000 in HOME Funds for Project #7, “SJCS Reintegration Services Project,” to address a community need for temporary or transitional housing in a sober living environment for LMI individuals exiting substance use treatment programs, and WHEREAS, the current program design of 2023 Project #7 does not include leases for each tenant, so it does not meet qualifications for HOME-eligible affordable rental housing at CFR 24 Section 92.253, making 2023 Project #7 ineligible for HOME funds, and WHEREAS, 2023 Project #7 as currently designed would meet eligibility requirements for CDBG and CDBG-CV1 funds, and WHEREAS, IURA Staff explored an array of alternatives to replace HOME funding with compliant funding sources, and WHEREAS, changes in use of $25,000 or less from one eligible activity to another eligible activity is categorized as a non-substantial Program Amendment to the Action Plan that does not require a Public Hearing or Common Council approval, and WHEREAS, the City Controller has confirmed that reprogramming $24,900 in CDBG-CV funding from the $175,000 GIAC Youth Programming activity will still provide sufficient funds to fully reimburse the City for all documented expenses incurred, and WHEREAS, the IURA Neighborhood Investment Committee has reviewed alternatives presented by IURA Staff and recommends the following, now, therefore be it RESOLVED, that the IURA hereby adopts Program Amendment #1 to the 2023 Action Plan to reallocate $48,421.18 in CDBG and CDBG-CV funding to Project #7, “SJCS Reintegration Services,” from the sources specified below: ● $8,671.31 in unallocated CDBG-CV funds ● $5,349.87 in unallocated CDBG (2023 R/U) funds ● $9,500.00 in CDBG funds from 2023 Project #4, “CHT Sears St. Development” ● $24,900.00 in CDBG-CV funds from 2020 CDBG-CV Project #32, “GIAC Youth Programming,” and be it further 1According to the Centers for Disease Control (CDC) the COVID-19 pandemic exacerbated drug use and overdose deaths in the United States, “Substance during COVID-19 pandemic: impact on the underserved communities” https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8896880/ IURA Minutes December 15, 2023 Page 6 of 8 RESOLVED, that $88,000.00 in 2023 HOME funds be reallocated from Project #7, “SJCS Reintegration Services,” as follows: ● $9,500.00 to 2023 Project #4, “CHT Sears St. Development” ● $2,500.00 for a new project to conduct housing inspections of HOME-assisted projects ● $76,000.00 designated as unallocated HOME funds available to be disbursed through the 2024 Action Plan process. Carried Unanimously: 5-0 C. Committee Chairperson Report Graham reported that the Committee formally appointed Brian Toy as its new member and will soon be approving Mary Baker as the sixth member. VIII. New/Other/Old Business A. Organizational Meeting for 2024-2028 HUD Consolidated Plan Mendizabal walked through the following 2024-2028 Consolidated Plan and 2024 Annual Action Plan Overview: IURA Minutes December 15, 2023 Page 7 of 8 B. Review of IURA Financials: November 2023 Bohn reviewed the Grants Summary, explaining the left-hand “On Schedule” column calls out any projects (with a ) that are not progressing on schedule and may need attention. Most projects have been operating on time, except for the City’s GIAC New Gym Renovations and GIAC Youth Programming projects, which still need to submit satisfactory cost documentation. All loan payments are current as of today, except BSJ Holdings Group, Inc. (d/b/a Tres Leches/Dos Amigos). All lease payments are also current as of today. IURA Minutes December 15, 2023 Page 8 of 8 C. REPORTS: IURA Chair, Mayor, Common Council Liaison, & Staff Mayor’s Report Lewis reported there was a recent film viewing of “It’s Basic,” which documents recent efforts to initiate Guaranteed Basic Income (GBI) programs in five cities across the country (https://www.videoproject.org/its- basic.html). Lewis expressed her great appreciation for all the work done by Mendizabal, Liddy Bargar (Director of Housing Initiatives, Human Services Coalition) and Carl Feuer (Tompkins County Workers’ Center) for their work on the Ithaca Guaranteed Income project (https://hsctc.org/igi/IGI). IURA Chairperson Proulx reported that his employer, Humentum, just released a report on its 2-year Universal Basic Income (UBI) project in Kenya: https://www.givedirectly.org/2023-ubi-results/. Proulx expressed his appreciation for the Mayor’s and McGonigal’s participation on the Board. Common Council Liaison Report McGonigal reported he has received several complaints about bedbugs at 210 Hancock Avenue, which he hopes Ithaca Neighborhood Housing Services, Inc. (INHS) will address. Staff Report Bohn reported that Insero & Company, LLP will be conducting its annual financial audit of the IURA, during the week of March 4, 2024. IX. Adjournment The meeting was adjourned by consensus at 9:49 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.