HomeMy WebLinkAboutMN-IURA-2010-03-25Approved 5-27-2010 Ithaca
Urban
Renewal
Agency
108 East Green Street
Ithaca, New York 14850
(607) 274-6559
(607) 274-6558 (fax)
MINUTES
ITHACA URBAN RENEWAL AGENCY
March 25, 1010
Present: Carolyn Peterson, Susan Cummings, Tracy Farrell
Excused: Doug Dylla
Others: J.R. Clairborne, Common Council Liaison
Staff: Nels Bohn, Sue Kittel (left the meeting at 9:45 A.M.), Alice Vargo
Guest: Steve Flash, Marina Realty of Ithaca, LLC
I. Call to Order
The meeting was called to order at 8:38 A.M. by Chairperson Peterson.
II. Additions to or deletions from the agenda
Farrell requested postponing item V.A. regarding the Southside Community Center’s RIBs building
renovation project (#10, 2007 CDBG) until the April meeting, there were no objections, although Cummings
stated she did have a few questions she would like to discuss. Kittel will need to leave the meeting early
and to accommodate a member of the public present; Peterson suggested moving items VI.A, VI.B and
Kittel’s staff report to the start of the meeting. There were no objections to the reordering of the agenda.
VI. Governance Committee
A. Marina Realty of Ithaca, LLC request to prepay $800,000 Section 108 loan
Bohn stated that MRI would like to prepay their Section 108 loan, so they could refinance the restaurant/marina
project at a lower interest rate and release the mortgage lien on the marina property. MRI has successfully
completed the restaurant and marina project, accomplished job creation goals, and is current on their loan
payments, Bohn reported. He noted that the Section 108 loan limits prepayment prior to August 1, 2011,
but he thinks it is possible to have the funds put in an escrow account for payment to HUD on August 1,
2011. Flash said that MRI is willing to pay the outstanding principal balance together with accrued and
unpaid interest due through the first date of August 1, 2011. In response to questions, he indicated that he
anticipates that the marina property would be part of a larger inlet island redevelopment project he would
like to undertake once the City gains control of the New York State-owned property licensed by the Coast
Guard Auxiliary. Cummings encouraged Flash to retain covered boat dockage facilities as part of any future
project.
Moved by Cummings, seconded by Farrell:
Request from Marina Realty of Ithaca, LLC for Authorization
to Prepay Canal Corridor Initiative Loan
Whereas, Marina Realty of Ithaca, LLC (MRI) requests permission to pre-pay its $800,000 IURA loan so it
can refinance project debt, and
IURA Minutes
3/25/10
Page 2 of 6
Whereas, through the 1997 Canal Corridor Initiative program sponsored by HUD, the City of Ithaca
facilitated a loan of $800,000 through the Section 108 loan program, which proceeds were made available
to MRI for acquisition and construction and opening of the Boatyard restaurant and marina located at 419-
525 Taughannock Blvd., and
Whereas, the City of Ithaca and IURA played a pass-through role between HUD and MRI to facilitate a
redevelopment project at Inlet Island whereby the City/IURA borrowed funds from HUD and loaned these
proceeds to MRI, and structured loan agreements to pass-through financial and collateral obligations to
MRI, and
Whereas, the MRI loan repayments support IURA repayment of the Section 108 Loan proceeds received
from the U.S. Department of Housing & Urban Development (HUD), and
Whereas, the City executed a Section 108 loan agreement with HUD and provided loan proceeds to MRI
pursuant to a June 12, 2000, loan agreement requiring MRI to pay all Section 108 loan obligations, and
Whereas, MRI makes monthly repayments to the IURA into a Section 108 loan escrow account such that
the IURA has sufficient funds to meet the schedule of Section 108 bi-annual interest and annual principal
payments through 2019, and
Whereas, MRI successfully completed the restaurant and marina project and is current on their loan
payments to the IURA, and
Whereas, the principal balance on the Section 108 loan is $560,000, and
Whereas, the IURA/MRI loan agreement allows prepayment subject to the lender’s right to prepay the
Section 108 loan agreement, and
Whereas, the Section 108 loan agreement authorizes prepayment only after August 1, 2011, and
Whereas, MRI has agreed to pay the outstanding principal balance together with accrued and unpaid
interest due through the first date for which prepayment is eligible (August 1, 2011), and
Whereas, MRI has further agreed to pay any reasonable additional fees associated with prepayment of the
Section 108 loan, and
Whereas, the IURA Governance Committee considered this matter at their March 19, 2010 meeting and
recommended the following; now, therefore, be it
Resolved, that the IURA hereby authorizes the Chairperson to sign any and all documents
authorizing MRI to prepay their June 12, 2000, $800,000 Canal Corridor Initiative loan and release collateral
subject to authorization from HUD for such prepayment and release of collateral, and further subject to the
condition that MRI shall be responsible to pay any and all IURA out-of-pocket expenses associated with
prepayment of the MRI loan and the Section 108 loan.
Carried Unanimously 3-0
B. Authorize Job Search for Additional Contracts Monitoring Staff
Bohn reported that IURA management team agrees that hiring additional contracts monitoring staff is the best
approach to meeting work load demands of the Agency within budget constraints. He added that the Contracts
Monitor is very supportive of hiring additional contracts monitoring staff. Bohn described the proposed position’s
IURA Minutes
3/25/10
Page 3 of 6
job description, duties and salary. The new position will report to the Deputy Director of Community
Development and will undertake the full range of contracts monitoring activities on a co-equal basis with current
senior contracts monitoring staff, according to Bohn. He noted that the monitoring workload has been steadily
increasing due to the demands for more reporting to HUD and state agencies. Bohn reported that the current
Contracts Monitor is working a four-day work week, at her request, and the proposed additional position will be
part-time with 20-25 hours per week with a possibility of increasing if sufficient resources become available.
Moved by Farrell, seconded by Cummings:
Authorize job search for additional contracts monitoring staff
Whereas, the IURA’s workload for contract development, management, monitoring and reporting has
increased as the Agency has secured additional annual funding and undertaken an increased number of
projects, and
Whereas, contract monitoring duties are currently being performed by a Contracts Monitor working a 28-
hour per week schedule, and
Whereas, the IURA management recommends hiring additional contract monitoring staff to meet the
increased workload, which has the further advantage of developing additional internal personnel capacity to
perform specialized critical work functions, and
Whereas, IURA management recommends conducting a job search for a contracts monitoring position as a
part-time, permanent employee working approximately 25 hours per week, with the future possibility of
increased hours subject to available resources; and
Whereas, a newly created Contracts Monitor I job position for 21- 25 hours per week would earn up to
$28,367 annually, and
Whereas, including employee benefits, total employee compensation for a newly created part-time
Contracts Monitor I job position working between 21-25 hours per week would cost between $33,357 and
$38,470 per year, and
Whereas, the adopted IURA 2010 budget provided $20,000 for future “program initiatives” and projected
revenues exceeding expenses by $32,787, thereby providing sufficient resources to sustain hiring of part-
time, permanent contracts monitor staffing, and
Whereas, IURA management recommends establishing a part-time Contracts Monitor I position and
advertise at an expected range of $20 - $22 per hour, with benefits including health insurance, retirement,
sick leave, vacation, & paid holidays, and
Whereas, at their March 19, 2010 meeting, the Governance Committee discussed this matter and
recommended the following, now, therefore be it
Resolved, that the Executive Director, or her designee, is authorized to advertise, form a search committee,
and conduct interviews of candidates to fill a part-time, permanent Contracts Monitor I position at a salary
rate to be determined based on qualifications, and be it further
Resolved, no final employment offer shall be made to an applicant prior to IURA approval of the preferred
candidate, the job description, the salary scale, and the beginning salary.
Carried Unanimously 3-0
IURA Minutes
3/25/10
Page 4 of 6
VII.B New/Old Business – Staff Report
B. Staff Report
Kittel reported on the recent HUD monitoring visit. She toured HUD representative Lambros Touris
through the Red Cross Emergency Shelter, the new duplex at 638 Spencer Rd. and various public
facilities, including GIAC and the playground at Conway Park. Kittel noted that the Shelter had been
maintained in satisfactory condition. Peterson commented that she would like to tour the facility.
Kittel informed members that the Cass Park dock construction work began this week, the South Side
Community Center air conditioner will be out for bid in April, and the GIAC project is scheduled to be
completed in 7 weeks. Kittel added that she would like to do a walk through at GIAC with any interested
members.
(Kittel left the meeting at 9:49 A.M.)
III. Public comment - None
IV. Approval of meeting minutes - January 28, 2010
Moved by Farrell, seconded by Cummings, to accept the January 28, 2010 minutes with
corrections.
Approved Unanimously 3-0
V. Neighborhood Investment Committee
A. Southside Community Center, Inc. request to revise the project scope and extend the schedule
for the RIBs building renovation project (#10, 2007 CDBG) – item postponed.
VI. Governance Committee (continued)
C. Housing Fund 2009 Funding Round – Recommendation on Use of City/IURA Funds
Members reviewed and discussed the three affordable housing projects recommended for funding through
the Housing Fund. Members questioned whether the proposed Holly Creek Towmhomes project met
“smart growth” criteria as the site near the of Rt. 96B/King Rd. intersection lacks any pedestrian connections
or any reasonable transit service & questioned if the site was located within a designated growth area.
Following further discussion and correction of the proposed resolution,
Farrell moved, seconded by Cummings, the following:
Housing Fund 2009 Funding Round –
Recommendation on Use of City/IURA Funds
Whereas, review of the first round of funding applications to the Housing Fund has been completed and the
following three housing projects are recommended for funding:
Applicant Project Dollar Amount
Recommended
Number of
Units
Location
INHS Holly Creek
Townhomes
$200,000 11 for-sale
townhomes
Town of
Ithaca
INHS/Pathstone Women’s
Community
Building
$75,000 50 apartments City of Ithaca
Tompkins
Community Action
Magnolia House $70,000 14 SRO units
for homeless
women
City of Ithaca
and
IURA Minutes
3/25/10
Page 5 of 6
Whereas, on April 1, 2009, the Common Council of the City of Ithaca authorized the Mayor to execute a
Memorandum of Understanding (MOU) between the City of Ithaca, Tompkins County and Cornell University
to develop, fund, and administer the Community Housing Affordability Program and the Community Housing
Trust Program (Collectively known as the “Housing Fund”), and
Whereas, on April 1, 2009, the Common Council further found that the most appropriate locations for new
housing units assisted through MOU funds are project sites located within existing urbanized areas of the
County, rather than in new growth nodes or other areas of the County, and
Whereas, on April 23, 2009, the IURA authorized funding for the Housing Fund from funds under IURA
custody and recommended appointment of an IURA member to the Program Oversight Committee (POC)
overseeing the Housing Fund program, and
Whereas, the Community Housing Affordability Program assists with pre-development costs associated with
residential, and mixed-use real estate development projects primarily benefiting low- and moderate-income
households, and the Community Housing Trust Program is a program designed to ensure that newly
constructed or rehabilitated homes that are made available to low- and moderate-income households
remain affordable to future generations of buyers, and
Whereas, per the MOU, in the first year Cornell committed to contribute $200,000 and the City of Ithaca and
Tompkins County each committed to contribute $100,000, thereby providing a pool of up to $400,000 to
fund housing projects, and
Whereas, City funds committed in year one of the MOU shall derive from Gateway Loan proceeds held by
the Ithaca Urban Renewal Agency, and
Whereas, a Program Oversight Committee (POC) has been established to govern the Housing Fund made
up of representatives from each funder, including Maria Coles, J.R. Clairborne and Doug Dylla from the City,
but that final funding decisions regarding expenditure of City MOU funds shall be approved by the Common
Council, and
Whereas, the POC is scheduled to meet on April 8, 2010 to develop a specific funding plan matching
funding sources with housing projects recommended for funding, and
Whereas, a proposed Common Council resolution authorizes the POC, upon advice from the IURA, to craft
a proposal for specific use of City/IURA funds for the first year of the Housing Fund program, and
Whereas, at their March 19, 2010 meeting, the Governance Committee reviewed this matter and forwarded
the matter for full IURA discussion; now, therefore, be it
Resolved, that the IURA hereby finds that both the Women’s Community Building (WCB) and the Magnolia
House projects are suitable for City funding through the 2009 funding round of the Housing Fund, with top
priority assigned to the WCB project.
Carried Unanimously 3-0
D. HUD FY 2008-09 Annual Community Assessment for Ithaca, NY
Cummings reviewed the Annual Community Assessment of the City’s HUD Entitlement program for the
period July 1, 2008 – June 30, 2009. The only shortfall identified was delinquency in timely submission of
the City’s FY 2008 Audit, which was due by September 30, 2009 and has not been completed yet. The
IURA Minutes
3/25/10
Page 6 of 6
Assessment directed the City to submit the Audit within 30 days. Bohn noted that the Controller projects the
Audit will be completed by July and plans to communicate with HUD on the projected completion date of the
City’s audit. Following discussion, Cummings requested that the City Controller attend an Agency meeting
to discuss the schedule for completion of the audit. Kittel noted that the delinquent audit significantly
increases the risk-based scoring of the City, which leads to more frequent monitoring visits. There was
discussion on a number of other remarks in the report that Kittel agreed to verbally follow up on with HUD
staff.
E. Review of IURA financials for January and February, 2010
Bohn reported that all borrowers are up-to-date with the exception of Diane’s State Street Auto. Diane’s
made regular loan payments in January and February, but remain one month behind. Bohn indicated that
he has scheduled a meeting with the owner to discuss the loan.
F. Other - none
VII. New/Old Business
A. Chairperson Report – none
B. Staff Report (continued)
Bohn summarized the $250,000 NYSERDA grant award that IURA staff, in conjunction with City
Engineering staff, developed on behalf of the City of Ithaca. Funding was awarded for energy
management personnel and installation of solar thermal hot water systems at the Youth Bureau, Streets
& Facilities and Cass Park.
Bohn briefly updated members on the Ithaca Gun project which has now received an additional funding
commitment of $420,000 to complete removal of the demolition debris stockpiles. The property owner’s
representative has begun negotiations with the contractor to resume the project, according to Bohn.
Members briefly discussed informal camping occurring beyond the Cherry Street dead-end on City
land. Cummings encouraged the Mayor to have DPW post the City land against trespass.
C. Other – Members discussed the RIBs project at 530 W. Buffalo Street.
Cummings noted she had questions about the Southside Community Center’s level of budgetary support for
staffing and supplies for the RIBs program and their capacity to manage the program, which is no longer
located in the Southside neighborhood. Regarding the proposed resolution, Cummings requested that
IURA staff find out what the actual charges were for installation of hand railings, as the quoted price seems
high. Clairborne asked why RIBs originally shut down in the summer of 2009 as there was never any official
announcement. Bohn indicated that RIBs staff informed him that there were some NYS Building Code
issues as well as internal operational concerns. Farrell stated that the Southside Community Center
(SSCC) Director, Olan Mack and RIBs staff attended the last NI meeting.
D. Next meeting date - to be announced.
VIII. Motion to Adjourn
Motion by Cummings, seconded by Farrell to adjourn the meeting. Carried Unanimously 3-0. The meeting
was adjourned at 11:08 A.M.
END
Minutes prepared by A. Vargo, edited by N. Bohn
J:\Communit Development\Admin Files\MINUTES\IURA\2010\3March\March 25 Minutes.doc