HomeMy WebLinkAboutMN-IURA-2024-01-26Approved: 3/22/24 108 E. Green St.
Ithaca, NY 14850 (607) 274-6565 MINUTES
ITHACA URBAN RENEWAL AGENCY BOARD
8:30 A.M., Friday, January 26th, 2024
Common Council Chambers, Third Floor (City Hall)
108 E. Green St., Ithaca, NY 14850
Members: Chris Proulx, Chair; Karl Graham, Vice-Chair; Robert Cantelmo (Mayor); Donna Fleming;
Ducson Nguyen (Common Council Liaison) [virtual]
Excused: Shaianne Osterreich
Vacancies: 1
IURA Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott [virtual]
City Staff: Lisa Nicholas
Guests: None.
I. Call to Order
Chair Proulx called the meeting to order at 8:32 A.M.
II. Agenda Additions/Deletions
None.
III. Public Comments
None.
IV. Review of Meeting Minutes: December 15, 2023 (postponed)
V. Governance Committee (GC)
A. Procurement — Independent Contractors
1. COMMUNITY DEVELOPMENT CONSULTING: H. Sicherman/The Harrison Studio
Fleming explained that the four proposed resolutions extend the IURA’s current professional services contracts
for an additional year.
Fleming moved, seconded by Graham:
2024 Procurement of Community Development Consulting Services —
H. Sicherman/The Harrison Studio
WHEREAS, the contract with H. Sicherman & Company, Inc./The Harrison Studio (Sicherman) providing
community development consulting services, including loan underwriting, expires on February 29, 2024,
and
IURA Minutes
February 23, 2024
Page 2 of 11 WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for
procurement of professional services, the IURA selected Sicherman through a Request for Proposals
(RFP) selection process in 2021, and
WHEREAS, whereas per applicable procurement regulations, a contractor selected through an initial
competitive selection process may be renewed for up to two additional one-year terms without
undertaking a new competitive selection process, and
WHEREAS, a proposed 2024 contract would constitute the second one-year extension of the base
independent consultant contract, and
WHEREAS, Sicherman submitted a proposal to continue providing community development services to
the IURA in 2024 at the following hourly rates:
• $185/hour – Harry Sicherman
• $145/hour – Michael Thomas (loan underwriting), and
WHEREAS, the 2024 rates represent a 0% increase from the current contract rates, and
WHEREAS, IURA staff is highly satisfied with the quality of services provided by Sicherman, and
WHEREAS, the 2024 IURA budget authorized a total of $10,000 for community development and loan
underwriting services, and
WHEREAS, on January 19, 2024, the Governance Committee reviewed this matter and recommended
the following action; now, therefore, be it
RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a one-
year contract extension for independent contractor legal services with H. Sicherman & Company,
Inc./The Harrison Studio, at a maximum hourly rate of $185 per hour with the total amount not to
exceed $10,000, and be it further
RESOLVED, that the source of such funds for community development consulting services shall be
derived from a variety of funding sources, including, but not limited to, CDBG and HOME funds, and
expenses shall be billed to the appropriate source of funds for which the services were performed.
Carried Unanimously: 4-0
2. LEGAL SERVICES: Mariette Geldenhuys, Attorney & Mediator
Fleming moved, seconded by Graham:
2024 Procurement of Independent Legal Services: M. Geldenhuys
WHEREAS, the contract for independent legal services with Mariette Geldenhuys, Attorney-at-Law
(Geldenhuys) expires on February 29, 2024, and
IURA Minutes
February 23, 2024
Page 3 of 11 WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for
procurement of professional services, the IURA selected Geldenhuys through a Request for Proposals
(RFP) selection process in 2021, and
WHEREAS, per applicable procurement regulations, a contractor selected through an initial competitive
selection process may be renewed for up to two additional one-year terms without undertaking a new
competitive selection process, and
WHEREAS, a proposed 2024 contract would constitute the second one-year extension of the base
independent consultant contract, and
WHEREAS, Geldenhuys submitted a proposal to continue providing legal services to the IURA in
2024 at a maximum billing rate of $245 per hour, a 2.1% increase from the current contract rate of
$240 per hour, and
WHEREAS, the IURA staff is highly satisfied with the quality of legal services provided by Geldenhuys,
and
WHEREAS, the 2024 IURA budget recommended a total authorized contract amount of $22,000 for legal
services;
WHEREAS, on January 19, 2024, the Governance Committee reviewed this matter and recommended
the following action; now, therefore, be it
RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a one-
year contract extension for independent contractor legal services with Mariette Geldenhuys, Attorney
and Mediator, at a maximum hourly rate of $245 per hour with the total amount not to exceed $12,000,
and be it further
RESOLVED, that the source of such funds for legal services shall be derived from a variety of funding
sources, including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the
appropriate source of funds for which the services were performed.
Carried Unanimously: 4-0
3. LEGAL SERVICES: Law Offices of Sharon M. Sulimowicz
Fleming moved, seconded by Graham:
2024 Procurement of Independent Legal Services: S. Sulimowicz
WHEREAS, the contract for independent legal services with the Law Offices of Sharon Sulimowicz
(Sulimowicz) expires on February 29, 2024, and
IURA Minutes
February 23, 2024
Page 4 of 11 WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for
procurement of professional services, the IURA selected Sulimowicz through a Request for Proposals
(RFP) selection process in 2021, and
WHEREAS, per applicable procurement regulations, a contractor selected through an initial competitive
selection process may be renewed for up to two additional one-year terms without undertaking a new
competitive selection process, and
WHEREAS, a proposed 2024 contract would constitute the second one-year extension of the base
independent consultant contract, and
WHEREAS, Sulimowicz submitted a proposal to continue providing legal services to the IURA in 2024 at
a maximum billing rate of $225 per hour, a 12% increase from the contract rates over the past two
years, and
WHEREAS, IURA staff is highly satisfied with the quality of legal services provided by Sulimowicz, and
WHEREAS, the 2024 IURA budget authorized a total of $22,000 for legal services
WHEREAS, on January 19, 2024, the Governance Committee reviewed this matter and recommended
the following action; now, therefore, be it
RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a one-
year contract extension for independent contractor legal services with The Law Office of Sharon M.
Sulimowicz, at a maximum hourly rate of $225 per hour with the total amount not to exceed $6,000,
and be it further
RESOLVED, that the source of such funds for legal services shall be derived from a variety of funding
sources, including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the
appropriate source of funds for which the services were performed.
Carried Unanimously: 4-0
4. LEGAL SERVICES: Krin Flaherty, Attorney-At-Law
Fleming moved, seconded by Graham:
2024 Procurement of Independent Legal Services: K. Flaherty
WHEREAS, the contract for independent legal services with Krin Flaherty (Flaherty) expires on February
29, 2024, and
WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for
procurement of professional services, the IURA selected Flaherty through a Request for Proposals (RFP)
selection process in 2021, and
IURA Minutes
February 23, 2024
Page 5 of 11 WHEREAS, per applicable procurement regulations, a contractor selected through an initial competitive
selection process may be renewed for up to two additional one-year terms without undertaking a new
competitive selection process, and
WHEREAS, a proposed 2024 contract would constitute the second one-year extension of the base
independent consultant contract, and
WHEREAS, Flaherty submitted a proposal to continue providing legal services to the IURA in 2023 at a
maximum billing rate of $250 per hour, a 25% increase from the current contract rate of $200 per hour
to cover increased insurance expenses, and
WHEREAS, prior year invoicing show less than four hours have been billed per year, and
WHEREAS, the IURA staff is highly satisfied with the quality of legal services provided by Flaherty, and
WHEREAS, the 2024 IURA budget authorized a total of $22,000 for legal services; now, therefore, be it
WHEREAS, on January 19, 2024, the Governance Committee reviewed this matter and recommended
the following action; now, therefore, be it
RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a one-
year contract extension for independent contractor legal services with Krin Flaherty, at a maximum
hourly rate of $250 per hour with the total amount not to exceed $4,000, and be it further
RESOLVED, that the source of such funds for legal services shall be derived from a variety of funding sources,
including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the appropriate source of
funds for which the services were performed.
Carried Unanimously: 4-0
B. Committee Vice-Chairperson Report
None.
VI. Economic Development Committee
A. Community Lending: Loan Assistance Request from S&J Ithaca, Inc. DBA Franco’s Pizzeria (CD-RLF #48)
Proulx explained that Franco’s Pizzeria applied for $50,000 in loan assistance from the IURA to relocate
and expand its operations, which is anticipated to create at least 2.0 FTE employment positions.
Proulx moved, seconded by Fleming:
Loan Assistance to S&F Ithaca, Inc. (d/b/a Franco’s Pizzeria)
CD-RLF Project #48
WHEREAS, on December 4, 2023, S&F Ithaca, Inc. (“Borrower”) applied for $50,000 in loan assistance
from the IURA to relocate and expand Franco’s Pizzeria to 527 W. State Street, Ithaca, NY, and
IURA Minutes
February 23, 2024
Page 6 of 11 WHEREAS, the primary objective of the Community Development Revolving Loan Fund (CD-RLF) is
provision of direct financing for economic development activities that create employment
opportunities, facilitate the expansion of business activity with the City of Ithaca and expand the
commercial and industrial tax base, and
WHEREAS, a food and beverage business is only eligible for CD-RLF loan assistance if the business
derives 35% or less of revenues from sale of alcoholic beverages and scores at least 100 points on the
IURA restaurant eligibility worksheet that evaluates risk and community benefit characteristics, and
WHEREAS, the restaurant business is projected to derive less than 35% of revenues from sale of
alcoholic beverages and received a staff score of over 100 points on the IURA restaurant eligibility
worksheet, and
WHEREAS, the proposed uses of project funds are:
$80,000 Construction/Buildout
$20,000 Furniture, Fixtures and Equipment
$20,000 Inventory/Supplies
$50,000 Working Capital (payroll, utilities, rent, marketing, misc.)
$170,000 Total, and
WHEREAS, the proposed sources of project funds are:
$120,000 Equity
$50,000 IURA
$170,000 Total, and
WHEREAS, the IURA Economic Development Policy Financing Guidelines and Operating Plan for the
Priority Business Loan Fund requires creation at least one full-time equivalent (FTE) job for every
$35,000 of loan assistance and sets a maximum loan amount of $100,000 for retail businesses, and
WHEREAS, the project is anticipated to create at least 2.0 FTE employment positions, resulting in
$25,000 of loan assistance per job created/retained, and
WHEREAS, an environmental review record has been created documenting that the interior renovation
project complies with the National Environmental Protection Act (NEPA), and
WHEREAS, positive risk factors include:
1. Ownership has operated the business at a similar location for seven years with a history of positive
financial performance and growing revenue.
2. Buildout of the new location is complete, and the business has re-opened to the public.
3. The project will create opportunities for increased revenues with additional seating, ADA access, an
expanded kitchen and storage facilities, and ability to accept on-line orders, with a relatively modest
increase in rent and other costs.
4. The Borrower funded the buildout and FF&E purchases with their own equity, and the IURA loan
will represent only 29% of total project costs.
5. Management has relevant experience with both owners having operated restaurants in the past.
IURA Minutes
February 23, 2024
Page 7 of 11 WHEREAS, negative risk factors include:
1. The business utilizes rudimentary financial systems to track past, current, and projected revenues
and expenses.
2. Collateral is modest;
3. Financial guarantees of owners offer minimal support for loan repayment;
4. There is robust competition in the market from other pizzerias; and
WHEREAS, the IURA’s independent loan analyst categorized the loan to represent a minimal credit risk
to the IURA, and
WHEREAS, at its January 19, 2024 meeting, the IURA Economic Development Committee reviewed the
loan application and the credit analysis prepared by Michael Thomas, Vice President, Harrison Studio,
and recommend the following action; now, therefore, be it
RESOLVED, that the IURA hereby approves a loan from the CD-RLF in accordance with the loan
application and supplemental submissions, subject to the following terms:
Borrower: S&F Ithaca, Inc. a New York State domestic corporation
established in 2016
Loan Amount: Up to $50,000
Project: Relocation and Expansion of Franco’s Pizzeria at 527 W. MLK
Jr./State Street, Ithaca, NY.
Total Project Cost: $170,000
Projected Use of IURA
Funds:
Working capital incurred after December 31, 2023, including but
not limited to payroll, rent, utilities, and other operating
expenses. Funds cannot be used towards any expenses, such as
construction, covered by The Davis-Bacon Act that would trigger
prevailing wage requirements.
Term: Interest-only payments for four (4) months followed by a five-
year term.
Amortization: 60-months amortization (after interest-only period)
IURA Minutes
February 23, 2024
Page 8 of 11 Interest Rate: 6.375% per annum (75% of current Prime rate). Rate is reduced
by 50 basis points to 5.875% annually when borrower establishes
and continues an automatic loan payment through a financial
institution to make timely level monthly payments on the loan
beginning with initiation of level monthly loan repayments.
The interest rate shall be reduced by 100 basis points upon: (1)
submission of satisfactory job reports documenting that the job-
creation goal has been achieved for two consecutive quarters;
and (2) compliance with all other terms of the loan agreement.
Repayment: Interest-only payments for four (4) months, then level monthly
payments of principal and interest to fully amortize the loan over
60 months (approximately $975/month based upon the 6.375%
interest rate stated above, and subject to a revised P&I amount
upon any rate reset.
Loan Collateral: General UCC 1st security interest filing on all business assets,
including equipment, inventory, furnishings, and fixtures now
owned or hereafter acquired located at 527 West MLK Jr./State
Street, Ithaca, NY.
Personal Guarantor(s): 1. Cheryl Evola
2. Francesco Evola
Job Creation: Creation of at least 2.0 (two) full-time equivalent (FTE) jobs of
which at least 51% shall be filled by low- and moderate-income
persons.
Loan Conditions: 1. Borrower to provide proof of equity contributed to the
project prior to disbursement of any loan funds. Compliance to
be determined by the Director of Community Development.
Reporting: 1. Annual company Federal tax returns.
And be it further,
RESOLVED, that the Director of Community Development for the IURA is authorized to issue a Loan
Commitment Letter in accordance with this resolution, and be it further
RESOLVED, that the IURA Chairperson, upon the advice of IURA legal counsel, is hereby authorized to
execute all necessary and appropriate documents to implement this resolution.
Carried Unanimously: 4-0
IURA Minutes
February 23, 2024
Page 9 of 11 B. Inlet Island Urban Renewal Project: Authorize Procurement of Due Diligence Services for Potential
Land Acquisition
Proulx explained that the proposed resolution would enable the IURA to conduct due diligence activities,
including but not limited to subsurface investigation of land ($5,000-$10,000 in anticipated costs)
potentially to be acquired from NYSDEC for the Inlet Island Urban Renewal Project.
Proulx moved, seconded by Graham:
Procurement of Due Diligence Services: Inlet Island Urban Renewal Project
WHEREAS, on June 24, 2021, the IURA selected Finger Lakes Development, LLC (“FLD”) as a qualified
and eligible sponsor (“Preferred Developer”) to undertake an Inlet Island urban renewal project subject
to the City of Ithaca Common Council (“Common Council”) authorization to transfer City-owned lands
to the IURA via a contingent option agreement, and
WHEREAS, on August 4, 2021, the Common Council authorized transfer of certain City-owned lands on
Inlet Island to the IURA to prepare a proposed urban renewal project, and
WHEREAS, on August 28, 2021, the IURA authorized execution of an ENA with FLD, and
WHEREAS, an Exclusive Negotiation Agreement (“ENA”) structures negotiations and responsibilities
between the IURA and Preferred Developer to develop a proposed Disposition and Development
Agreement (“DDA”) to convey real property to the Preferred Developer to undertake a specified
development project, and
WHEREAS, on October 27, 2022 the IURA conditionally approved FLD’s development program and
authorized submission of an IURA Disposition and Development Agreement (DDA) for execution by
FLD, and
WHEREAS, the DDA acts as an agreement binding the Preferred Sponsor to undertake the approved
urban renewal project according to an agreed-upon time schedule and for the IURA to convey IURA
lands upon Common Council approval, following public hearing, and
WHEREAS, the approved development program requires a lands transaction to occur between the
IURA/City and the NYS Department of Environmental Conservation to acquire property located at 508
Taughannock Blvd, and
WHEREAS, agreement from DEC that it conceptually consents to convey 508 Taughannock Blvd. to
facilitate the urban renewal project is required prior to the Preferred Developer’s endorsement of the
DDA, and
WHEREAS, negotiations with DEC have resulted in a draft term sheet for lands transactions that involve
potential acquisition of lands from DEC, and
IURA Minutes
February 23, 2024
Page 10 of 11 WHEREAS, it is prudent to undertake due diligence activities, including subsurface investigation, prior
to committing to acquire lands controlled by DEC, and
WHEREAS, expenses incurred to conduct due diligence may be reimbursed from sale of lands for the
urban renewal project, and
WHEREAS, the IURA Economic Development Committee reviewed this matter at their January 23, 2024
meeting and recommended the following action: now, therefore, be it
RESOLVED, that the IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute an
agreement(s) to conduct due diligence activities, including but not limited to subsurface investigation
of land potentially to be acquired from NYSDEC for the Inlet Island urban renewal project, and be it
further
RESOLVED, that funding for appraisal services shall derive from the non-CDBG funding account for
reimbursement upon sale of property.
Carried Unanimously: 4-0
C. Committee Chairperson Report
Proulx remarked the Committee discussed the variety of economic development loan programs that the
IURA supports and the different policies that govern each program. At some point in the near future, the
Committee is planning to review the policies and determine if any changes may need to be made to them.
VII. Other/Old Business
A. IURA Financials Review: December 2023
Bohn reported there are no significant outstanding loan payment delinquencies. Liquid State Brewing
Company paid its loan off early. All lease payments are also in good standing, except Southside
Community Center (SCC).
Bohn reviewed the Grants Summary, explaining that the left-hand “On Schedule” column calls out any
projects that are not on schedule and may need attention. Steady progress on each project continues to
be made, except for Urban Bus Stop Upgrade Project and GIAC Gymnasium Gym Renovations project. One
area of potential concern is the CDBG timely expenditure deadline, which requires that any unexpended
CDBG funds cannot exceed 1.5 times the most recent annual HUD CDBG Award, by June 1st of each year.
B. Reports: IURA Chairperson, Mayor, Common Council Liaison, & Staff
IURA Chairperson
None.
Mayor’s Report
None.
IURA Minutes
February 23, 2024
Page 11 of 11 Common Council Liaison Report
None.
Staff Report
None.
VIII. Adjournment
The meeting was adjourned at 10:19 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.