HomeMy WebLinkAboutMN-IURAED-2012-12-18Approved: X/X/12
108 E. Green Street
Ithaca, New York 14850
(607) 274-6559
(607) 274-6558 (fax)
DRAFT MINUTES
ITHACA URBAN RENEWAL AGENCY
Economic Development Committee (EDC)
3:30 PM, Tuesday, December 18, 2012
Common Council Chambers, 3rd Floor, City Hall, Ithaca, NY
Present: Doug Dylla, Ayana Richardson, Leslie Ackerman, Martha Armstrong
Excused: Jennifer Tegan
Staff: Nels Bohn, Charles Pyott
Guests: Scott Whitham, Scott Whitham & Associates
Neil Patel, Lighthouse Hotels, LLC
Jagat Sharma, Jagat Sharma Architect
I. Call to Order
Chairperson Dylla called the meeting to order at 3:40 P.M.
II. Agenda Additions/Deletions ― Dylla suggested adding an agenda item to discuss requiring
entrepreneurial training for more inexperienced funding applicants. No objections were
raised.
III. Public Comments (3-minute maximum per person) ― None
IV. Review of Meeting Minutes: November 13, 2012
Ackerman moved, seconded by Richardson, to approve the November 13, 2012
minutes, with two minor modifications. Carried Unanimously 3-0
IV. Property Disposition
A. Request from Lighthouse Hotels, LLC to Be Designated Qualified & Eligible Sponsor to
Be Eligible to Acquire Properties at 320-24 E. State Street Through Negotiated Sale for
Purpose of Undertaking Urban Renewal Project
Bohn introduced the action by noting that the IURA has the authority under State law to
negotiate terms for a proposed property disposition, whereas the City does not. He
noted that part of the parking lot next to the Community School of Music and Arts
(CSMA) is owned by the City and part is owned by the IURA, so the proposed resolution
is necessary to designate a sponsor.
Ithaca
Urban
Renewal
Agency
IURA EDC Minutes
December 18, 2012
Page 2 of 8
Bohn remarked that it is the IURA which structures the proposed sale, but Ithaca
Common Council approval would be required to finalize it. The City would also need to
formally determine whether the property could/should be designated surplus City
property. Bohn observed that many steps are involved and the entire process can be
somewhat protracted. At the end of the process, the action would return to the IURA
for the proposed sale and a 90-day negotiation period.
At this juncture, Whitham presented an overview of the salient details of the request.
He noted the applicant has been working with Travis Hyde Properties and Joe Daly on
the written agreements. The proposed project would comprise a new 6-story hotel, the
State Street façade of which would include retail space.
Sharma walked through some basic architectural details of the proposed project:
• Brick, with limestone details
• Metal panels
• Green materials, with composite panels
• Cornice detailing
• Drop-off plaza
• Penthouse
Patel remarked approximately 40% of the building’s capacity would be extended-stay
rooms, which would be more residential in nature and oriented towards the affordable,
middle-tier segment of the market. The proposed parking would only serve about 30%
of the rooms and a valet service would also be included.
Dylla asked if any meeting space would be provided. Patel replied, yes, on the second
floor (appr. 6,700 square feet).
Dylla asked if the applicant would need a zoning variance. Patel replied, no. Whitham
added that the operating premise is that the Seneca Street garage would serve as the
primary alternate parking facility for the project.
Dylla asked what the relocation options are for the existing businesses on the site. Patel
replied that the applicant has been looking at those existing leases and will be giving the
existing businesses the first option to fill one of the spaces in the building. The applicant
will also be searching for other available spaces for the retailers.
Ackerman asked what provisions are being made to assist the retailers, on the IURA’s
own part. Bohn replied that, had it been a Federal loan, the IURA would have been
obligated to provide relocation assistance; however, in this case, there is no
requirement. Having said that, the IURA has a history of helping and protecting local
businesses, so some provisions could be made to that end.
IURA EDC Minutes
December 18, 2012
Page 3 of 8
Bohn added that the proposed resolution does contain language that indicates that
some potential responses to mitigate any business dislocation caused by the project
would be included in the negotiations. Bohn noted that he had also held some initial
discussions with the Downtown Ithaca Alliance (DIA) about that specific issue and the
DIA indicated it would help. Bohn noted that the proposed ground-floor retail spaces
would be significantly smaller than the spaces the retailers currently lease. Another
consideration is that the rents the current retailers pay are extremely low and have not
increased in a considerable time. Bohn concluded by noting that the Site Plan Review
process would also be examining a variety of issues associated with the project (e.g.,
road access, parking, architectural design review, etc.).
Richardson moved, seconded by Armstrong:
Property Disposition, 320-24 E. MLK, Jr./E. State Street – Designate Lighthouse
Hotels LLC as a Qualified and Eligible Sponsor
Whereas, Lighthouse Hotels, LLC (Lighthouse) has submitted application to be
designated a “qualified and eligible sponsor” (Sponsor) to acquire two parcels
located at 320-324 E. MLK Jr./E. State Street, currently utilized as a 32-space public
parking lot (Municipal Parking Lot), and
Whereas, Lighthouse proposes to develop a $16 million, downtown, six-story, 92-
room Hampton Inn & Suites that is projected to create 33 full-time equivalent
employment opportunities, and
Whereas, Lighthouse proposes wages to employees above the pay ranges paid at
other hotels they operate, with the lowest wages projected at $9.50/hour, 131% of
minimum wage ($7.25/hr.), or about 74% of the local living wage ($12.78/hr.), and
Whereas, the proposed 30,400 square foot (SF) project site includes the following
four parcels:
(1) 3,267 SF - tax map #69.-1-3, 324 E. MLK Jr./E. State Street, IURA
(2) 8,320 SF - tax map #69.-1-6.2 at 320-24 E. MLK Jr./E. State Street, City of Ithaca
(3) 13,112 SF - tax map #69.-1-8 at 310-312 E. MLK Jr./E. State Street, Daley
Enterprises
(4) 5,706 SF - tax map #69.-1-7 at 314-320 E. MLK Jr./E. State, Carey Building Assoc.
LLC, and
Whereas, the property sought includes one parcel owned by the Ithaca Urban
Renewal Agency (IURA) and one parcel owned by the City of Ithaca, and
IURA EDC Minutes
December 18, 2012
Page 4 of 8
Whereas, the project site is located within the Urban Renewal Project Boundary
area, and
Whereas, the Ithaca Urban Renewal Agency (IURA) is only authorized to dispose of
property to a specific buyer if such buyer is designated as an eligible and qualified
sponsor (Sponsor) per section 508 of General Municipal Law and the sale is
approved by Common Council, and
Whereas, a proposed Sponsor is evaluated in accordance with adopted IURA land
disposition procedures that seek to determine if the proposed Sponsor is qualified
and capable of fulfilling the objectives of the project for property disposition, and
Whereas, IURA evaluation criteria for Sponsors include:
• Financial status and stability
• Legal qualification to operate in the State of New York and to enter into
contracts with regard to the disposition, use, and development of land in
questions
• Previous experience in the financing, use, development and operation of
projects of a similar nature
• Reputation and proof of fair, reputable and ethical business practices and a
record devoid of convictions
Whereas, the primary objective of the Urban Renewal Plan (Plan) is to improve the
economic, social and physical characteristics of the project neighborhood, and
Whereas, one objective of the Plan is “expansion and diversification of the economic
base of the community to provide the employment opportunities needed by its
residents and to strengthen the tax base”, and
Whereas, Hitesh T. Patel, President, and Neil H. Patel, CEO, are the principal
members of Lighthouse and report that Lighthouse, or its affiliates, owns and
operates the Hampton Inn located at 337 Elmira Rd., Ithaca, NY as well as Hampton
Inn hotels in Clay, Seneca Falls and Buffalo (under construction), and
Whereas, a 12/17/12 inspection of City records show that Lighthouse’s Ithaca
Hampton Inn is operating in full compliance with all applicable permits and
regulations, and is current on all tax obligations, and
IURA EDC Minutes
December 18, 2012
Page 5 of 8
Whereas, Lighthouse’s successful record of developing and operating four similar
hotels in New York state, including the Ithaca Hampton Inn, suggests they possess
the skills, resources and capacity to complete the proposed project, though financial
statements for Lighthouse have not been received yet, and
Whereas, the proposed project has the potential to improve the economic, social
and physical and characteristics of the project neighborhood, and
Whereas, designation of a Sponsor allows the IURA to negotiate terms for a
proposed property disposition that must then be approved by the City of Ithaca
Common Council following a public hearing on the proposed terms of the
disposition, and
Whereas, the IURA Economic Development Committee considered this matter at
their December 18, 2012 meeting and recommended the following; now, therefore,
be it
1. RESOLVED, that the IURA hereby determines that Lighthouse Hotels LLC has
satisfactorily demonstrated its qualifications and capacity to successfully
undertake a project to develop an appropriate in-fill urban hotel project
located along the northern side of the 300 block of E. MLK Jr./E. State Street,
and therefore designates the aforementioned entity as a “qualified and eligible
sponsor” eligible to acquire tax parcels #69-1-3 and #69.-1-6.2, and be it
further,
2. RESOLVED, that the IURA hereby recommends that the Common Council and
Board of Public Works make the City-owned tax parcel #69.-1-6.2 available for
redevelopment and approve transfer of the parcel to the IURA for the purpose
of structuring a proposed sale for consideration by the Common Council, and
be it further
3. RESOLVED, that the IURA hereby authorizes acceptance of tax parcel #69.-1-
6.2 upon Common Council authorization of transfer of the parcel, and be it
further
4. RESOLVED, that the IURA Chairperson, subject to review by IURA legal counsel,
is authorized to execute a 90-day exclusive negotiating agreement with the
Sponsor for the purpose of structuring a proposed purchase and sale
agreement to convey tax parcels #69.-1-3 and #69.-1-6.2 to the Sponsor to
undertake an urban renewal project, and be it further
IURA EDC Minutes
December 18, 2012
Page 6 of 8
5. RESOLVED, any proposed purchase and sale agreement shall be subject to
approval by both the IURA and the Common Council, and be it further
6. RESOLVED, the IURA identifies the following issues to be included in
negotiations with the Sponsor:
• Price (fair market value), including non-refundable deposit
• urban design, especially ground level streetscape on E. MLK Jr./E. State
Street
• potential responses to mitigate loss of public parking to adjacent
enterprises
• potential responses to mitigate any business dislocation caused by the
project
• translating wage and job creation projections to wage and job
commitments
• transfer of property contingent upon site plan approval and issuance of a
building permit
Carried 2-1
Opposed: Ackerman
B. Other
Bohn reported on the current status of the sale of the Cherry Street parcel. He
indicated that the abstract and title have been finalized, and a draft purchase
agreement has now been sent to the City. He noted that the IURA attorney specifically
asked that any squatters on the property be relocated from the site, which the City is
now considering.
VI. HUD Entitlement Program
A. Development of FY 2013 Action Plan ― Review of Process & Application Forms
Bohn reported that the FY 2013 Action Plan and funding process will generally follow
the same calendar schedule employed last year; however, the process has changed to
include all IURA committees, in the form of a Committee of the Whole. He noted that
the Stone Quarry Apartments project has already been approved, so a considerable
amount of the housing funds have already been allocated. The IURA has also tentatively
committed to a City pedestrian crossing improvement project.
Dylla suggested that the IURA require that any funded job training programs be
connected to specific job placement and retention objectives.
Richardson noted that she had spoken to the facilities program at Ithaca College, which
continues to seem like a promising avenue to explore.
IURA EDC Minutes
December 18, 2012
Page 7 of 8
Ackerman observed that the problem with many job training programs is they are too
limited in their focus.
Bohn remarked that, while there have been no formally documented job placements,
this is simply because none of the programs claimed they would place any of their
program participants in jobs ― however, the application form will now include all that
kind of information.
Dylla noted that the IURA should stress that the job training programs should seek to
collaborate with a specific workforce partner (e.g., Workforce NY’s One-Stop Center).
Armstrong observed that most of the job training programs the IURA has funded in the
past may more accurately be characterized as job readiness programs, resembling more
of a public service or socially-oriented kind of program. Armstrong added that the city
already has agencies which do job placement, and do it well, which could be relied on.
B. 2011 & 2012 Economic Development Project Updates
Bohn remarked that every project is moving forward apace ― except for the eLab
Downtown Retail Corridor Support Program, co-sponsored by the Cornell Cooperative
Extension of Tompkins County (CCE). As noted in the report before the Committee,
both a September 13, 2012 commitment letter, requiring a response, and a November
5, 2013 mailing of documents required to prepare the project contract remain
unanswered. A second letter, extending the deadline until December 1, 2013, was also
sent, but which was also unanswered. (Both letters were mailed to Cooperative
Extension and hand-delivered to Eldred Harris at Diaspora.) Bohn added that a IURA
staff site visit on November 1, 2013 determined that Eldred Harris had not yet met with
the Cooperative Extension to develop project guidelines, etc.
At this juncture, staff is recommending giving the program one more opportunity to
respond, by late January 2013, before the funding offer is officially withdrawn.
VII. Other Business
A. Review of November 2012 Lease & Loan Report
Bohn reported that Cinemapolis (which recently hired a capable executive director) is
waiting to obtain its landlord’s waiver, so it can sign the loan agreement.
Bohn noted that the State Theatre is behind one month on its repayment, which should
represent an issue of major concern, given its record of payments.
Bohn also noted that Diane’s Downtown Auto is now current on its obligations.
IURA EDC Minutes
December 18, 2012
Page 8 of 8
B. YTD Economic Development Accomplishments Toward IURA Performance Goals
Dylla remarked that the IURA is ahead of its goals in four different categories; however,
the living wage goal is a little behind.
Armstrong asked which programs are projected to have actually created permanent
jobs. Bohn replied, only one project, the Neighborhood Pride project.
Dylla asked about the Status of the Argos Inn project. Bohn replied that it has been
significantly delayed by the tax credit process; however, it is anticipated it will receive
the tax credits in January 2013. He added that the project also is anticipated to have
created permanent jobs.
Finally, regarding the proposed meeting space center in the former Masonic Temple,
Bohn noted that the potential applicant is scheduled to make a formal offer to the
property owner tomorrow.
C. Common Council Actions of Interest to EDC
Deferred until the next meeting.
D. Staff Report
None.
VIII. Adjournment (Next Meeting Date: 3:30 PM, Tuesday, January 18, 2013)
The meeting was adjourned by consensus at 4:56 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.
j:\community development\admin files\minutes\edc\2012\12dec\edc minutes 12-18-12 - draft.doc