HomeMy WebLinkAboutMN-IURA-2010-06-24Ithaca
Urban
Renewal
Agency
Approved 7/22/10
108 East Green Street
Ithaca, New York 14850
(607) 274-6559
(607) 274-6558 (fax) (fax)
MINUTES MINUTES
ITHACA URBAN RENEWAL AGENCY ITHACA URBAN RENEWAL AGENCY
Thursday, June 24, 2010 Thursday, June 24, 2010
Present: Carolyn Peterson, Susan Cummings, Doug Dylla Present: Carolyn Peterson, Susan Cummings, Doug Dylla
Excused: Tracy Farrell Excused: Tracy Farrell
Others: J.R. Clairborne, Common Council Liaison (9:15 A.M.) Others: J.R. Clairborne, Common Council Liaison (9:15 A.M.)
Staff: Nels Bohn, JoAnn Cornish, Sue Kittel, Alice Vargo Staff: Nels Bohn, JoAnn Cornish, Sue Kittel, Alice Vargo
Guest: David & Kelly Moreland, Mama Goose, LLC; and Patty Kehe, Executive Assistant, Dynasil, parent corp. of
Evaporated Metal Films
Guest: David & Kelly Moreland, Mama Goose, LLC; and Patty Kehe, Executive Assistant, Dynasil, parent corp. of
Evaporated Metal Films
I. Call to Order I. Call to Order
The meeting was called to order at 8:35 A.M. by Chairperson Peterson. The meeting was called to order at 8:35 A.M. by Chairperson Peterson.
II. Additions to or deletions from the agenda II. Additions to or deletions from the agenda
Dylla requested adding an item under New Business VII.D. to recognize Paul Mazzarella’s 20th year as
Executive Director at Ithaca Neighborhood Housing Services. There were no objections.
Dylla requested adding an item under New Business VII.D. to recognize Paul Mazzarella’s 20
th year as
Executive Director at Ithaca Neighborhood Housing Services. There were no objections.
III. Public comment - None III. Public comment - None
IV. Approval of meeting minutes: IV. Approval of meeting minutes:
Dylla moved, seconded by Cummings, to approve the April 29, 2010 minutes as corrected. Carried
Unanimously. May 27, 2010, were not included in meeting packet.
Dylla moved, seconded by Cummings, to approve the April 29, 2010 minutes as corrected. Carried
Unanimously. May 27, 2010, were not included in meeting packet.
(The order of the meeting was modified to accommodate guests present.) (The order of the meeting was modified to accommodate guests present.)
VI. Governance Committee VI. Governance Committee
A. Request for consent to leasehold mortgage on premises leased to Evaporated Metal Films Corp., Cherry
Street Industrial park
A. Request for consent to leasehold mortgage on premises leased to Evaporated Metal Films Corp., Cherry
Street Industrial park
Kehe explained that Dynasil, the parent company of EMF, has secured favorable financing that strengthens their
ability to invest in the company’s growth and expand product lines, subject to the IURA’s approval. Kehe
reported that 2009 was a slow year for EMF, but 2010 has been much better. They have a new product line and
added 5 new employees, which brings the total to 22 employees.
Kehe explained that Dynasil, the parent company of EMF, has secured favorable financing that strengthens their
ability to invest in the company’s growth and expand product lines, subject to the IURA’s approval. Kehe
reported that 2009 was a slow year for EMF, but 2010 has been much better. They have a new product line and
added 5 new employees, which brings the total to 22 employees.
Dylla moved, seconded by Cummings, the following Dylla moved, seconded by Cummings, the following
Consent to Leasehold Mortgage on Premises Leased to Evaporated Metal Films Corp. Consent to Leasehold Mortgage on Premises Leased to Evaporated Metal Films Corp.
Whereas, the Ithaca Urban Renewal Agency (IURA) leases property in the Cherry Street Industrial Park
located at 239 and 245 Cherry Street, Ithaca, NY, to Evaporated Metal Films (EMF), and
Whereas, the Ithaca Urban Renewal Agency (IURA) leases property in the Cherry Street Industrial Park
located at 239 and 245 Cherry Street, Ithaca, NY, to Evaporated Metal Films (EMF), and
Whereas, EMF is a wholly owned subsidiary of Dynasil Corporation of America (“Dynasil”), and Whereas, EMF is a wholly owned subsidiary of Dynasil Corporation of America (“Dynasil”), and
IURA Minutes
6/24/10
Page 2 of 8
to refinance
xisting debt and access a working capital line of credit and an acquisition line of credit, and
ement
onsenting to EMF granting a leasehold mortgage to Sovereign Bank on the IURA premises, and
A approval to assign any interest in the lease, but such
pproval shall not be unreasonably withheld, and
dered this matter at their June 18, 2010 meeting and
commended the following; now, therefore, be it
asehold mortgage by EMF to Sovereign Bank
n property leased by the IURA to EMF, and be it further
execte any and
ll documents to implement this resolution, including a Consent and Acknowledgement.
Carried Unanimously 3-0
sistance to start-up and operate the Mimi’s Attic retail
store at 430 W. State/MLK Street, CD-RLF
.
Dylla added that the Morelands already have a loan with the IURA and have been excellent at
repayment.
nancial interest in their
business ventures. Dylla moved, seconded by Cummings, the following:
and operate the Mimi’s Attic retail stot 430 W. State/MLK Street, CD-RLF
0
space previously occupied by Bishop’s Home Center at 430
. State/MLK Street, Ithaca, NY, and
Whereas, Dynasil has secured a financing commitment letter from Sovereign/Santander Bank
e
Whereas, on June 17, 2010, Dynasil requested that the IURA execute a Consent and Acknowledg
c
Whereas, the IURA/EMF ground lease requires IUR
a
Whereas, the IURA Governance Committee consi
re
Resolved, that the IURA hereby authorizes execution of a le
o
Resolved, that the IURA Chairperson, subject to review by legal counsel, is authorized tou
a
V. Economic Development Committee
B. Request from Mama Goose LLC for loan as
Dylla updated the committee on Mama Goose. They have purchased the old Bishop’s building at 430 W.
State/MLK Street. Rather than renting space out, they have opened a new business (Mimi’s Attic), which
sells gently used house wares and furniture. They are asking for $40,000, to help fund their new business
Moreland stated that Mimi’s Attic has been open for 11 days now and has exceeded their expectations.
They employ 2 full-time and 1 part-time staff, competitive wages and excellent benefits. The store has been
averaging sales around $800/day. Cummings asked where the traffic was coming from. Moreland stated
there are a lot of walk-ins from around the neighborhood, and a wide range of people. The patrons are
mainly women, graduate students, grandmothers and travelers, new mothers and many are Mama Goose
customers.
Dylla disclosed that the Morelands live in his neighborhood, but he has not fi
Request from Mama Goose LLC for loan assistance to start-up
re a
Whereas, on April 14, 2010, Mama Goose LLC (MG) applied for $40,000 of loan assistance for a $52,00
project to expand the MG to open Mimi’s Attic, a retail store selling second-hand furniture, house wares
and home décor in a 5,000 SF portion of the
W
IURA Minutes
6/24/10
Page 3 of 8
hereas, MG is a retailer of primarily second-hand children’s clothing and accessories which expanded
eight part-time employees, and
ves of the Community Development Revolving Loan Program (CD-RLF) is
rovision of direct financing for economic development activities to create employment opportunities,
hereas, CD-RLF financing policy establishes maximum loan amount of $40,000 for a retail business and
hereas, the project is projected to create three (3) full-time equivalent (FTE) employment positions, of
Whereas, new full-time positions are projected to pay $9-$11 per hour with 100% employer-paid health
employer-paid health insurance for part-time employees
orking at leas per w
eas, the uses of
ures and equipment
$4,000 inventory
W
and relocated to an approximately 4,300 SF storefront at 430 W. State/MLK Street in 2008 and currently
employs four full-time and
Whereas, Kelly Moreland is the sole member of Mama Goose LLC, which qualifies as a women-owned
business enterprise, and
Whereas, the primary objecti
p
facilitate the expansion of business activity within the City of Ithaca and expansion of the City’s commercial
and industrial tax base, and
W
$75,000 for a non-retail business except where the IURA determines that the project will result in an
extraordinary degree of public benefit, and
W
which at least 51% are projected to be filled by low- and moderate-income persons, thereby meeting the
CDBG public benefit test to generate at least one FTE job for very $35,000 of assistance, and
insurance provided to full-time employees and 50%
wst 20 houreek, and
Wherproposed project funds are:
$11,360 furnishings, fixt
$36,640 start up costs & working capital, including professional fees
hereas, the sourcends are:
$12,000 equity
$52,000 Total, and
Wproposed s of project fu
$40,000 IURA
$52,000 Total, and
hereas, Kelly and David Moreland have taken out a short-term, private bridge loan of $30,000 that is
debt to repay this loan and cover additional start-up costs, and
d businesses, and
rea
W
due in October 2010 to fund initial start-up costs for Mimi’s Attic, and
Whereas, MG seeks term
Whereas, MG is a women-owned business, and the IURA encourages development of minority-and women-
owne
Whereas, MG is current on their $70,000 IURA loan issued in 2008, and has satisfied its job creation goals,
and
Whereas, MG operations has strengthened the W. State/MLK Street business corridor, an IURA target a
for revitalization, and
IURA Minutes
6/24/10
Page 4 of 8
hereas, at their June 8, 2010 meeting, the IURA Economic Development Committee reviewed credit
Guidelines and Operating Plan,
nd recommended the following; now, therefore, be it
RESOLVED, that the IURA hereby appves an IURA loan from the Community Development Revolving
Loan Fundordance with the loann, and the following terms:
orrower: Mama Goose LLC, a NYS limited liability company formed in 2008
Loan
mount:
K Street,
Ithaca, NY
ed
se of
t-up costs and working capital (construction
use of IURA funds for this loan)
Term:
terest % annually, reset to 3% upon submission of satisfactory job reports
epayment: Interest-only payments for 90 days until full loan disbursement,
include accounts, inventory, furniture, fixtures and
Guarantor(s): ,
arantee of 430 W. State Street LLC.
Conditions: ee (3) full-time equivalent employment
ssets of
3. Annual submission of profit and loss statements broken out for
f balance sheet and profit and loss
statements for Mama Goose LLC.
W
analysis report on the loan application prepared by Robert Deemer, Jr. of H. Sicherman & Co., and
considered applicable provisions of the IURA Economic Development Policy
a
ro
in acc applicatio
B
$40,000
A
Project:
Start up of Mimi’s Attic retail operation at 430 W. State/ML
Project
U
Funds:
FF&E, inventory, star
activity is not an eligible
5 years (60 months)
In
Rate:
4
documenting that job creation goals have been achieved for two
consecutive quarters and borrower is in compliance with all other terms
of the loan agreement.
R or
whichever is sooner, then level monthly principal and interest payments
due to fully amortize the loan over the 60 month term (approximately
$737/ month), due the first day of each month.
Collateral: 1st lien on all business assets of Mama Goose LLC (Mimi’s Attic is a
division of MG), to
equipment now owned or hereinafter acquired.
1. Personal guarantees of Kelly J. Moreland and David Moreland
each individually.
2. Corporate gu
1. Creation of at least thr
positions of which at least 51% must be held by low- and moderate-
income persons.
2. Subordination of AFCU’s collateral position on business a
Mama Goose LLC
Mimi’s Attic and Mama Goose divisions
4. Annual submission o
IURA Minutes
6/24/10
Page 5 of 8
it further
RESOLVED, that IURA Chair, upon the advice of the Executive Director and IURA Attorney, is hereby
ment documents.
B.
Dylla introduced the proposed high-tech business loan guidelines. Cummings raised concerns that a high-
s and result in only limited benefit to low- and
ull
C. raIURA economic development goals for 2010-2012
d estic support for the goal to
s
D.
ed
return for reductions in loan repayments. It was agreed that this issue be referred to the Economic
onsideration. Bohn noted this concept needs to be reviewed by the IURA
Attorney. He also reported that they are conducting three full days of building assessment with a variety of
g Cornell building and maintenance staff, to develop a strategic plan for the facility.
e
VI. Gov
B. rogram amendment to increase budget for the Southside Community Center gym air conditioning
Cummings noted that this item came before h Goveance Committee because the issue came up later in the
month and the Gov
Cummings moved, seconded by Dylla, the following
ment to Increase Budget
for Southside Community Center Gym Air Conditioning Project (CDBG 2007 #9)
07 City of Ithaca Action Plan funded the Southside Community Center Gym Air
onditioning project (SSCC Gym AC) at $43,000, and
RESOLVED, that the Director of Community Development for the IURA is authorized to issue a loan
commitment in accordance with this resolution, and be
authorized to execute all necessary and appropriate documents to implement this resolution, including, but
not limited to, executing loan agree
Approved Unanimously 3-0
High-tech business loan guidelines, amendment to IURA Economic Development Financing Policy
Guidelines and Operating Plan
tech loan program may take on excessive risk for CDBG fund
moderate-income persons. Following brief discussion, Cummings requested to delay this matter until the f
board was in attendance. Dylla agreed.
Dft
There was a brief discussion on the ED goals. Cummings expressenthusia
promote better public access and uses of waterfront areas of the city. Dylla reported that the Committee i
still refining the proposed goals and working to develop performance measures.
State Theatre of Ithaca, Inc. (priority business loan #2, 2009)
Dylla reported that State Theatre of Ithaca, Inc. (STI) provided the Committee with a status report of first
year operations at the State Theatre and referenced materials included in the meeting packet. He not
that they have made great strides and that they are overall meeting financial projections, despite a down
economy nationally. They exceeded their fund raising goals of $65,000 by raising $109,000. Dylla reported
that STI is open to the concept of reduced theatre rental rates for IURA-sponsored community events in
Development Committee for c
professionals, includin
E. Chairperson report - non
ernance Committee
P
project (CDBG 2007 #9)
tern
ernance Committee could accommodate it on its agenda.
:
HUD Entitlement Grant - Program Amend
Whereas, the 20
C
IURA Minutes
6/24/10
Page 6 of 8
implementation of
he ing post-bid project budget:
$1,500 architect/commissioning
$100 printing
Whereas, following completion of bid documents, $38,369.84 in project funds remain for
the project, and
Whereas, the low base bid received for the project is $61,661, and
Whereas, factoring in otr project costs result in the follow
$61,661 construction contract
$2,000 owner’s representative
$3,700 construction contingency (6%)
$68,961 Total, and
Whereas, a funding gap of approximately $30,000 exists for implementing this project, and
hereas, d l demand controlled ventilation sensors
VC sensoab puted to have a payback period of less
an two ye en ic utilization, and
no rojects are available:
$2,896.50 ED project loan fund (CDBG 2005 #7)
1.78 GIAC computer lab (CDBG 2006 #11)
$416.63
Wa recommende Add Alternative to include differentia
(Drs) are availle for an additional $3,598, which are re
thars in savedergy costs for a gymnasium with sporad
Whereas, the following ubligated CDBG funds from completed p
$24,117.09 Cass Park dock (CDBG 2007 #12)
$1,864.98 CDL Training Year 2 (CDBG 2007 #8)
$1,39
CDL Training Year 1 (CDBG 2006 #7)
hereas, reallocating the above unobligated CDBG funds to the project will provide total CDBG funding of
hereas, IURA funding appears to be sufficient to complete the base bid project, but not fund the Add
hereas, City funds may be available for the DCV sensors Add/Alt from capital reserve account #24 that
8 in unobligated funds from various completed
DBG projects to the SSCC Gym AC project so this project can be completed, and
HUD Entitlement program, the proposed budget
allocations do not require public hearings or Common Council approval as the purpose, scope, location
ee discussed this matter at their June 18, 2010, meeting and
commen in
ESOLVED RA nt to reallocate $30,686.98 to the
outhside Cen 2007 #9) from remaining balances of the
ec
$30,686.98 Total CDBG Funds Available for Reprogramming
W
$69,056.82, and
W
Alternative DCV sensors, and
W
was established to fund energy efficiency improvements, and
Whereas, IURA staff recommends reallocation of $30,686.9
C
Whereas, per the Citizen Participation Plan for the
re
and beneficiaries of the project all remain unchanged, and
Whereas, the Governance Committ
reded the followg; now, therefore, be it
R, that the IU hereby approves a program amendme
Sommunity Cter Gym Air Conditioning project (CDBG
following completed projts:
IURA Minutes
6/24/10
Page 7 of 8
2007 #12)
$2,896.50 ED project loan fund (CDBG 2005 #7)
$24,117.09 Cass Park dock (CDBG
$1,864.98 CDL Training Year 2 (CDBG 2007 #8)
$1,391.78 GIAC computer lab (CDBG 2006 #11)
$416.63 CDL Training Year 1 (CDBG 2006 #7)
$30,686.98 Total, and be it further
RESOLVED, that the IURA recommends to the Common Council to authorize expenditure of up to $5,000
from capital reserve account #24 – Energy Efficiency Improvements - to fund the Add Alternative to upgrade
C. ms providing economic
pportunities for youth and young adults
e
rograms focusing on increasing employment of youth and young adults.
here was a discussion around City use of funds and assets received through drug seizures and other criminal
activity seized assets to ad adults to prevent
criminal activity and provide career th a portion of the drug seizure
nding.
garding Use
of Seized Assets From Criminal Activity
riminal
t of such assets, and be it further
Resolved, that the Common Council and Police Department are encouraged to explore how such funds can be
e targeted employment and skills training programs offering for youth and young adults, and drug
D.
ewed clarifications to
e resale/recapture provisions in the 2010 Action Plan to address concerns HUD is raising nationwide to ensure
E.
controls to include DCV sensors that will improve energy efficiency of the air conditioning system.
Carried Unanimously 3-0
Identification of potential resources for summer youth employment and progra
o
Clairborne expressed concerns in the community about kids hanging-out on the streets this summer with very
limited employment opportunities. Bohn explained that all available CDBG funding is already programmed, so
there are no funds available for new programs at this time. He noted that 2011 funding could be made availabl
for future p
T
dress employment and skill training programs for youth and young
opportunities for youth and young adults wi
fu
Cummings moved, seconded by Dylla, the following:
Recommendation to Common Council Re
Resolved, that the IURA hereby recommends that the Common Council pro-actively engage in joint planning
with the Police Department for future use of funds and assets received through drug seizures and other c
activity to maximize community benefi
used to address the conditions that contribute to criminal activity such as programs to prevent criminal activity,
provid
education and awareness programs.
Carried Unanimously
Clarifications to resale/recapture provisions for HOME-assisted homeownership projects, 2010 Action
Plan
Cummings referenced members to materials contained in the meeting packet. Bohn revi
th
the Action Plans are consistent with HOME regulations and resale/recapture provisions are clear. Bohn
indicated that the clarifications were developed in conjunction with INHS, the subgrantee that is implementing
homeownership projects in the 2010 Action Plan. HUD officials have indicated that the revisions adequately
address their concerns. Bohn indicated that no formal action is required by the IURA.
Review of IURA Financials for May, 2010
IURA Minutes
6/24/10
Page 8 of 8
re current with the exception of Diane’s Downtown Automotive, who remains one
. He is encouraging her to submit tax information so the Economic Development Committee can
uring her loan to reduce the monthly payment. He noted that Marina Realty of Ithaca has pre-
, which allowed the City of Ithaca to repay HUD in full. Regarding the HUD
gram, Bohn noted the CDBG spend down ratio is 0.41, well below the 1.5 ratio maximum.
F.
VII. New/Old Business
B.
ded updates the P&C Plaza, the Petrune building project at
26-128 E. State/MLK Street, and INHS new housing construction projects on Chestnut Street.
C. f P
ylla moved, secnd
Bohn reported all borrowers a
month late
consider restruct
paid their $800,000 Section 108 loan
Entitlement pro
Chairperson report - none
A. IURA Chairperson Report - None
Staff Report
Staff provi on Buffalo Street books, redevelopment of
1
Recognition oaul Mazzarella, Executive Director of Ithaca Neighborhood Housing Services
oed by Cummings, the following: D
IURA Resolution of Appreciation
Whereas: Paul Mazzarella recently celebrated his twentieth year as th
Executive Director of INHS, and
e
Whereas: au ted vision, tireless
efforts and transformative leadership in his tenure at INHS, and
Whereas
Pl Mazzarella has demonstrated foresigh
: au
le improvements to the City and
neighborhoods, helping literally thousands of families to improve
Whereas
Pl Mazzarella and INHS have worked closely with many City
agencies to create remarkab
their homes or purchase homes, and
: au
goals; now, therefore, be it
RESOLVED
Pl Mazzarella and INHS have been strong partners with the
IURA and the City to successfully achieve the City’s housing
: That the Ithaca Urban Renewal Agency recognizes,
congratulates and thank Paul Mazzarella for his 20 years of
community.
Carried Unanimously 3-0
D. Next meeting date: July 22, 2010
VIII. Motion to Adjourn
The meeting was adjourned by Chairperson Peterson at 11:00 A.M. by consensus.
END
Minutes prepared by A. Vargo, edited by N. Bohn
j:\community development\admin files\minutes\iura\2010\6june\6-24-10 minutes nb edit.doc
extraordinary service to the City of Ithaca and the broader