HomeMy WebLinkAboutMN-IURAED-2012-07-10Approved 9/11/12
Ithaca
Urban
Renewal
Agency
108 E. Green Street
Ithaca, New York 14850
(607) 274-6559
(607) 274-6558 (fax)
MINUTES
ITHACA URBAN RENEWAL AGENCY
Economic Development Committee (EDC)
3:30 PM, Tuesday, July 10, 2012
Common Council Chambers, 3rd Floor, City Hall, Ithaca, NY
Present: Doug Dylla, Leslie Ackerman, Martha Armstrong, Ayana Richardson, Jennifer Tegan
Chris Proulx (Common Council Liaison)
Staff: Nels Bohn, Charles Pyott
Guests: Dan Hoffman, Natural Areas Commission (NAC)
Michael Culotta, Conservation Advisory Council (CAC)
I. Call to Order
Chairperson Dylla called the meeting to order at 3:34 P.M.
II. Agenda Additions/Deletions – None
III. Public Comments (3‐minute maximum per person) ―None
Hoffman summarized the NAC’s concerns regarding the Cherry Street parcel being
conveyed to the IURA by the City. The NAC strongly recommends the site not be
developed, but considered instead for incorporation into a formal Southwest Natural
Area. The NAC would like to ensure whatever use the parcel is eventually put to is as
compatible as possible with the surrounding area; and the NAC would definitely like to
be as actively involved as possible in the process.
Culotta walked through the CAC’s concerns regarding the Cherry Street parcel. He
noted the environmental assessment performed as part of the subdivision process is too
short and does not include a single reference to any potential environmental impacts.
After visiting the site and consulting with the NAC, the CAC concluded that the
environmental review process for the site remains incomplete. There are some real
environmental concerns which need to be considered (e.g., likely disturbance resulting
from future development, impacts to the Black Diamond Trail, etc.).
IURA EDC Minutes
July 10, 2012
Page 2 of 7
IV. Community Lending
A. Status Report on Accomplishments of IURA toward Its Economic Development
Performance Goals
Bohn walked the committee through the details of the IURA Historical Economic
Development Performance Measures table (“2009‐2012: Actual vs. Goal”).
Richardson observed that for the most part the IURA is exceeding its goals, but there
seems to be a significant disparity between job training and subsequent job placement
― there needs to be more of a programmatic linkage between the two. Bohn agreed.
Ackerman inquired into the reason for the success in job‐training‐leading‐to‐job‐
placement in 2007‐2008, compared to more recent years. Bohn replied that the
Commercial Driver’s License (CDL) program was the principal driver of success, over that
time. He indicated that funding applications for job training programs received recently
focus on work readiness skills for persons seeking initial employment and basic job skill
development. Future calls for funding applications could emphasize the IURA’s priority
to fund job training programs that are linked to job placement.
Dylla called for increased attention on attracting loan applications: loan activity seems
to have fallen off recently. Ackerman observed that Tompkins County Area
Development (TCAD) also experienced a modest slowdown in its 2012 loan activity, so it
is likely at least partly a reflection of the current marketplace.
Dylla noted that the performance measures table is an excellent snapshot of the IURA’s
activity. One should be generated every quarter.
B. Loan Pipeline
Neighborhood Pride Grocery Store
Bohn announced the IURA has requested additional information from the applicant to
underwrite the loan application.
V. Community Development Projects
A. Cayuga Green Project ― Request by Cayuga Green II, LLC for 6‐Month Extension
to Purchase & Sale Contract for Parcel ‘D’ (Tax Map #81.‐2‐4)
Bohn announced the IURA recently received a request from the applicant for a fourth
amendment to the purchase and sale contract, to permit a 6‐month extension to close.
The project will now be entirely residential, with 39 loft‐style units, sold at market rate.
The applicant indicated it has received an acceptable financing offer from a regional
bank.
IURA EDC Minutes
July 10, 2012
Page 3 of 7
Bohn suggested the IURA may wish to consider requiring some kind of non‐refundable
deposit, as both an incentive/penalty to close on the project and a means of
recuperating some of the IURA’s investment, should the applicant ultimately fail to
close.
Ackerman asked if the sale price was still competitive. Bohn replied it was last
appraised 5 years ago and it is that price that the applicant is structuring the financing
around. The developer would most likely be concerned with any change to the sale
price.
Ackerman suggested that, if the developer seeks a fifth extension, the IURA may want to
consider adjusting the sale price. She asked if any other interest had been expressed in
the property. Bohn replied, yes, there had been a few inquiries, although not for a
housing use.
Richardson agreed it would helpful to require a non‐refundable deposit as part of the
extension’s terms; she would suggest something more than $10,000.
Ackerman expressed mixed feelings about associating any kind of penalty at all with the
new terms.
Tegan suggested raising the deposit amount to $15,000 or even $20,000. Bohn
responded that those would not be unusual figures.
Ackerman moved, seconded by Richardson:
Cayuga Green Project, Approval of 4th Amendment to
Purchase & Sale Contract for Parcel ‘D’
Whereas, on June 27, 2012, Cayuga Green II, LLC submitted a request for a 6‐month
extension of the purchase and sale contract (Contract) between the Ithaca Urban
Renewal Agency (IURA) and Cayuga Green II, LLC for purchase of Parcel ‘D’ (tax map
parcel #81.‐2‐4) of the Cayuga Green project, and
Whereas, Parcel ‘D’ is an approximately ½‐acre, triangular‐shaped parcel located
between the Cayuga Garage and the Six Mile Creek Walk, and
Whereas, the Contract agrees to a sales price of $270,000 and obligates the purchaser
to undertake a project “anticipated to consist of construction of no fewer than 30
rental and/or for‐sale housing units located adjacent to the Cayuga Garage or such
other uses approved by Seller and the Common Council of the City of Ithaca,” and
IURA EDC Minutes
July 10, 2012
Page 4 of 7
Whereas, to enforce the future land use obligation, the Contract requires the
purchaser to satisfy the following seller contingencies prior to June 30, 2012 as a
condition of conveyance of the property:
1. Submit proof of final site development plan approval for a project containing at
least 30 housing units;
2. Submit proof of issuance of a building permit for the project;
3. Submit proof that all project financing has been secured to complete the project,
and
Whereas, the purchaser did not satisfy all of the above‐listed seller contingencies by
June 30, 2012, and
Whereas, the purchaser has submitted revised project plans to the City of Ithaca
Planning & Development Board and indicated they have received an acceptable loan
proposal to finance the project from a regional lending source, and
Whereas, the purchaser has revised the project to eliminate a ground floor
commercial use, reduce the building footprint to provide a required 10‐foot rear yard
along the Six Mile Creek Walk, and now proposed construction of a 39‐unit, loft‐style,
residential rental project, including 1‐bedroom, 2‐bedroom, and 3‐bedroom units, and
Whereas, the purchaser indicated they have invested almost $200,000 in project pre‐
development costs to date, and
Whereas, each request to extend the Contract results in a delay to realize anticipated
public benefits of the project, including revenues from permit fees, property taxes,
and parking fees, and requires staff and legal resources to administer, and
Whereas, Cayuga Green II, LLC seeks no property tax abatements for this market‐rate
project, and
Whereas, the primary objective of the Ithaca Urban Renewal Plan for this urban
project is to improve the social, physical, and economic characteristics of the project
neighborhood; and
Whereas, the IURA wishes to facilitate the construction of additional housing units in
downtown Ithaca that will expand the range of housing opportunities, increase the
property tax base, and visually conceal the concrete block wall portions of the east
wall of the adjacent Cayuga garage, and
IURA EDC Minutes
July 10, 2012
Page 5 of 7
Whereas, the proposed project will improve the social, physical and economic
characteristics of the downtown neighborhood thereby furthering the goals and
objectives of the Urban Renewal Plan, and
Whereas, under §507 of Article 15 of General Municipal Law, the IURA’s proposed
disposition of real property requires Common Council approval following a public
hearing, and
Whereas, the prior purchase and sale contract for parcel ‘D’ and site plan review for a
proposed 7‐story housing project at parcel ‘D’ were the subject of environmental
reviews under the City Environmental Quality Review Ordinance (CEQRO) pursuant to
which the lead agency issued a negative declaration that the implementation of the
action as proposed will not result in any significant adverse environmental impacts,
and
Whereas, the revised 4‐story loft‐style residential project and the action of approving
the proposed 4th amendment to the Contract for parcel ‘D’ are no less protective of
the environment than the previously‐approved Contract and site plan, therefore
requiring no additional environmental review, and
Whereas, the IURA Economic Development Committee considered this matter at their
July 10, 2012, meeting and recommends the following; now, therefore, be it
Resolved, that the Ithaca Urban Renewal Agency hereby approves a 4th amendment to
the Purchase and Sale Contract with Cayuga Green II, LLC for Parcel ‘D’ (tax map parcel
#81.‐2‐4) subject to the following terms and conditions:
1. The purchaser’s deadline to satisfy seller contingencies to secure final site plan
approval, project financing and issuance of a building permit is extended to
December 31, 2012, and
2. Inclusion of a requirement for payment of a $20,000 non‐refundable deposit
toward the purchase price be paid upon signing the Amendment, which shall be
retained by the seller in the event seller contingencies are not satisfied by
December 31, 2012, and be it further
Resolved, the above approvals are subject to Common Council approval of the
property disposition, and be it further
Resolved, the IURA Chairperson, upon the advice of IURA legal counsel, is hereby
authorized to execute all necessary and appropriate documents to implement this
resolution, including but not limited to executing an amended purchase and sale
contract.
Carried Unanimously 5‐0
IURA EDC Minutes
July 10, 2012
Page 6 of 7
B. Disposition of Cherry Street Parcel ― Develop RFP Framework to Solicit
Acquisition & Development for Appropriate Economic Development Use
Bohn noted that IURA legal counsel would be working on structuring the agreement
with the City, as well as the RFP. The process will entail a number of steps and
considerations:
• RFP should be consistent with the Ithaca Urban Renewal Plan.
• State law governs the disposition of properties that are not auctioned.
• Preferred developer will need to be identified.
• 90‐day exclusive negotiating period will be established with the developer, once
identified.
• Once IURA has identified a good proposal, a public hearing will be held and public
notice provided.
• EDC will serve as the primary reviewer of all proposals.
• Common Council will need to endorse the proposed sale.
• Sales process will likely take 6 months.
Bohn noted he will begin soliciting guidance from the EDC, regarding such things as
selection criteria, submission requirements, etc. Committee members should keep in
mind that the “industrial” use that is zoned for may be interpreted in a broader context.
Bohn noted it is important to keep in mind that the original intent of the sale was to
generate much‐needed revenue for the City.
Ackerman asked how the Comprehensive Plan is supposed to fit into the whole process.
It would be probably not be realistic to move forward with development of the land,
before any zoning changes associated with the Comprehensive Plan have been defined
and agreed upon. It would be a serious problem if a proposal were selected for a use
that was subsequently prohibited.
Dylla asked what timeline is associated with the completion of the Comprehensive Plan.
Richardson replied the first phase should be completed in Fall 2012; however, final
completion of the plan would most likely not take place for another two years.
Proulx observed that the Comprehensive Plan process is far from perfect and this is
merely one example. Minimum parking requirements will also likely change in the
foreseeable future.
Ackerman recommended the City re‐zone the site in ‘spot zone’ fashion, before the sale
has been completed if residential use is encouraged.
IURA EDC Minutes
July 10, 2012
Page 7 of 7
Proulx asked when the RFP would be issued, to which Bohn replied, 60‐90 days. Proulx
observed that several Common Council areas of concern could be addressed
simultaneously, as part of a larger set of changes, so that it is not simply making a single
‘spot zone’ change to a single property. Proulx noted he would return to Common
Council and ask it to further define its specific vision for the site.
Dylla suggested staff begin the process of crafting the RFP, while coordinating with
Proulx and the rest of Common Council.
Ackerman added that environmental concerns should also more explicitly be addressed
in the RFP, in more detail than currently captured under “community benefits.” Bohn
noted it could certainly be structured that way.
VI. Executive Session
Richardson moved, seconded by Ackerman, to open the Executive Session at 4:49 P.M.
Carried Unanimously 5‐0
― EXECUTIVE SESSION ―
No action was taken during the Executive Session.
VII. Adjournment (Next Meeting Date: 3:30 PM, Tuesday, August 14, 2012)
The meeting was adjourned by consensus at 5:00 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.