HomeMy WebLinkAboutMN-IURAED-2013-05-14Approved: 6/11/12
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, May 14, 2013
Common Council Chambers, 3rd Floor, City Hall, Ithaca, NY
Present: Doug Dylla, Heather Filiberto, Leslie Ackerman
Excused: Jennifer Tegan
Vacancies: 1
Staff: Nels Bohn, Charles Pyott
Guests: None
I. Call to Order
Chairperson Dylla called the meeting to order at 3:35 P.M.
II. Agenda Additions/Deletions ― None.
III. Public Comments (3‐minute maximum per person) ― None.
IV. Review of Meeting Minutes: April 9, 2013
Filiberto moved, seconded by Ackerman, to approve the April 9, 2013 minutes, with no
modifications. Carried Unanimously 3‐0
V. Property Disposition
A. Authorization to Issue Request for Proposals (RFP) for Acquisition & Development
of 6‐Acre Parcel in Cherry Street Industrial Park (Tax Map #100.‐2‐1.2)
Bohn noted the property has been cleared of trespassers and unauthorized structures
since March 2013 and is ready to offer for sale. The IURA can expect to take actual
possession of the property, by the end of the month. He noted that a key RFP issues for
the EDC are (1) the approach to marketing the property, and (2) selection criteria. The
IURA has latitude to negotiate the sale and end‐use of the site, although the City expects
the end use to result in local job creation.
IURA EDC Minutes
May 14, 2013
Page 2 of 6
Bohn stated that the land for sale consists of one 6‐acre parcel that will require
extension of the public street to provide street frontage for any additional building lots.
If more than one party is interested in the property, the parcel will need to be
subdivided.
Bohn noted the reference to “residential use” in the draft RFP was removed, in response
to legal counsel’s recommendations as a residential use is not permitted in the
Industrial zone and a proposal to authorize some residential use in the Industrial zone
stalled out at the Planning & Economic Development Committee of Common Council.
Bohn observed that the Neighborhood Investment Committee (NIC) recently marketed
four properties for residential use, throughout the city, but only received four responses
for two of the vacant parcels. He suggested that enhanced marketing of the Cherry
Street parcel should be pursued as there are fewer potential buyers for a light‐industrial
site than residential sites in Ithaca.
Bohn remarked the IURA should make clear that it will need information up‐front, from
the respondents (e.g., investment calculations, site plans, projected jobs created, etc.),
so it has sufficient information to weigh proposals received against selection criteria.
Ackerman asked if each of the bullet points within each of the selection categories gets
equally considered. Bohn replied the scoring applies to the entire category; the IURA
would collectively consider each bullet point in assigning a score for the category. It is
his intent to contact all commercial brokers in the city and inform them that the seller is
willing to pay a 3% sales commission if a broker brought a successful buyer to the IURA.
He noted that Ithaca Neighborhood Housing Services has found this technique helpful to
expand the pool of potential purchasers. He noted that it would also make sense to
advertize in The Ithaca Journal weekly real estate tabloid section, as well as the
IURA/City web site, which would probably be more effective than legal ads and other
mechanisms.
Ackerman expressed her concern with the short timeline. Bohn replied he can see how
that might be a concern. Filiberto suggested extending the timeline, if there is any
problem attracting bidders. She added it may be helpful to reach out to industrial or
light‐industrial property owners, which would be simple to do, since there are few in the
city. Bohn agreed that is a good idea.
Filiberto indicated that most local businesses she is aware of that may be looking for
space are not in the market for 6‐acres, but have more modest space needs. Filiberto
and Ackerman expressed concern that an RFP seeking a purchase price for a 6‐acre
parcel, an end‐use with a projection of job creation, and a great amount of detailed
information may result in a disappointing response rate. Businesses seeking only a 1‐or
2‐acre site are, also, not likely to respond to the RFP for purchase of a 6‐acre site.
IURA EDC Minutes
May 14, 2013
Page 3 of 6
Bohn remarked the IURA could also frame the RFP more as a request for expressions of
interest (RFEI), rather than a bona fide RFP. Ackerman agreed that would be better.
Dylla observed part two of the application form could become more of a conceptualized
section. Bohn responded it could simply ask for the respondent’s general qualifications
and capacity to follow‐through.
Bohn indicated he would convert the draft RFP to a simpler, scaled‐down RFEI,
simplifying the criteria and categorizing them more generally. Members agreed.
Filiberto observed the process may result in a financial loss to the City (i.e., in tax
revenue), if it does not result in a maximum build‐out of the site.
Ackerman asked if there were some sense of how parking would be handled. Bohn
replied the zoning currently requires off‐street parking capacity, but that is certainly
something that could be addressed under the “Community benefits of the project”
section: the respondent could be asked to demonstrate the site would not be
dominated by surface parking. Bohn added that current Storm Water Pollution Prevention
Plan (SWPPP) requirements discourage developers from devoting too much space to parking.
Dylla suggested adding language to the document requiring the project achieve a
certain level of compatibility/harmony with the surrounding neighborhood. Members
agreed.
Bohn remarked the IURA may also choose to withhold a portion of the property from
the process, if no one is interested in using the entire site. Ackerman suggested that the
RFEI should explicitly allow respondents to indicate they have an interest in only a
portion of the site. The IURA could then possibly match up several smaller businesses
together to activate the entire site.
Bohn noted he would bring the revised version of the document back to the committee
in June 2013. He would also report the committee’s discussion to the IURA Board.
VI. Staff Report
A. Cherry Street Industrial Park Update
Precision Filters
Bohn reported that Precision Filters recently approached the IURA on short notice for
approval to place a mortgage on their property and building at 240 Cherry Street to
enable them to consolidate and refinance debt. (Precision Filters currently leases the
land from the IURA, for a 99‐year term, at $1/year.) Precision Filters claims it was
negatively impacted by the Federal budget sequester ― it does considerable business
IURA EDC Minutes
May 14, 2013
Page 4 of 6
with GE and the Defense Department, both of which were affected by the sequester.
He reported that the IURA approved the request in May.
Vector Magnetics
Bohn noted that Vector Magnetics, located at 236 Cherry Street, is looking to expand
and bring in a firm that they frequently partner on when undertaking a gas pipeline
project. Vector Magnetics has submitted an offer to purchase property rights from an
existing IURA tenant in the Cherry Street Industrial Park. The purchase offer was
declined, but Vector Magnetics may seek out other possibilities to support their
business expansion plans. It will be very appropriate to provide them with the RFEI.
B. Review of April 2013 Lease & Loan Report
Loans:
Bohn reported two loans have been past due, this month. While the State Theatre has
since become current (not unusual for it), Diane’s Downtown Automotive has missed
another payment. Bohn will send her a notice, indicating his intent to foreclose on the
loan, which will hopefully work to encourage her to become current. He noted there
are some real estate assets available that may provide an opportunity to repay the loan.
Bohn indicated that Taitem Engineering has paid its loan in full.
Regarding the Argos Inn loan, Bohn indicated the IURA recently received notice the
owner missed some payments due on a California property that provides security for
the IURA’s loan. The IURA loan is primarily secured by subordinate mortgage on the
Brookton’s Market property in Brooktondale and an assignment of rents from the
California property for which the IURA has been informed that a foreclosure proceeding
has been initiated.
IURA staff contacted the owner to remind him that failure to retain ownership of the
California property would constitute a default of the IURA loan agreement. Bohn
reported that the owner is in the process of taking out a private loan to pay of the 1st
mortgage on the property. Bohn noted that the cash flow problem stems from the
delays in closing on the historic tax credit syndication on the Argos Inn. The tax credit
deal is scheduled to close in May with a soft opening of the Inn in June 2013.
Leases:
Bohn reported that all leases are current, which is encouraging news (including Perfect
Screen Printers, which is actually ahead of its payments).
IURA EDC Minutes
May 14, 2013
Page 5 of 6
C. Grants Update
Transportation Enhancements Program (TEP) Grant Application
Bohn notified committee members of a Department of Transportation (DOT) grant
opportunity for up to $20 million. The City has applied for $15M, which would include
constructing the full Black Diamond Trail through the City of Ithaca, including the bridge
across the Flood Control Channel. The City is one of several central New York projects
which have moved forward in the process from the region to headquarters.
EPA Brownfields Grant
Bohn indicated that the EPA grant awarded $200,000 for the clean‐up of the Ithaca Falls
Overlook site, providing the City/IURA with a budget of approximately $600,000 for
clean‐up activities, which could be sufficient to complete clean‐up activities. Bohn
noted that the soil investigation confirmed that there is lead on the site, both where it
was believed to be and down‐grade from the known contaminated areas, though lead
contamination has not extended beyond the bench at the base of the raceway plunge
pool or the bench at the base of the “island”, so lead contamination is not located
where it can come into contact with public use of the Ithaca Falls natural area. There is
also some TCE contamination identified, which the State will need to investigate, to
ensure nothing has migrated into the surrounding neighborhood. A monitoring well at
the base of Gun Hill near Lake Street identified 6 ppb of TCE. The NYS drinking water
standard is 5 ppb.
Filiberto asked if development of the site would be delayed. Bohn replied, no, it should
not be, since the groundwater contamination concern is for off‐site locations. The
developer will, however, probably have to perform more groundwater investigations of
the site (which can be planned for, as the project enters the design phase). The
developer has always planned to incorporate both a soil vapor barrier and a radon‐like
vent system in any new housing.
TIGER V
Bohn reported that the City is considering applying for another U.S. Department of
Transportation TIGER (Transportation Investment Generating Economic Recovery) grant,
which would seek funding to complete the work identified in last year’s grant
application that was not Commons‐related. Major elements call for enhancing transit
corridor connections between downtown with Cornell and IC, reconstruction of Stewart
Avenue, and streetscape improvements on College Avenue. The application is due in
early June 2013, so it will be a challenge to put together. There is also the question of
where the $5M match would come from.
IURA EDC Minutes
May 14, 2013
Page 6 of 6
D. Living Wage Update
Bohn reported a new living wage standard has been established, going from $11.67/hr.
to $12.62/hr. (and $13.96/hr. without employer‐provided health insurance). The IURA
will use the new standard as its benchmark from this point forward.
E. Common Council Matters of Interest to the Committee
Bohn indicated that the 2013 Action Plan was submitted to Planning and Economic
Development (P&ED) Committee for its 5/8/13 meeting. There was some discussion of
what to do with the unallocated funds; a proposal was made on‐the‐floor to use them
for demolition of dilapidated properties. Bohn noted that both he and Deputy Director
Sue Kittel communicated to the P&ED Committee that there may be other uses for the
funds (e.g., Red Cross homeless housing support, West Hill neighborhood community
violence prevention program, etc.) and encouraged any proposal for use of unallocated
funds to go back to the IURA for review. IURA and City staff are currently exploring the
best policy options for managing unsafe, dilapidated buildings and better defining and
coordinating the City policy for demolishing buildings.
VII. Other Business
A. New Committee Member
Bohn reported the IURA Chair appointed Heather Harrick, as a new member of the EDC.
Ms. Harrick is the owner of Harrick Plasma, Inc. (a supplier of plasma equipment to the
research community, located on Taber St.).
VIII. Adjournment (Next Meeting Date: 3:30 PM, Tuesday, June 11, 2013)
The meeting was adjourned by consensus at 4:54 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.