HomeMy WebLinkAboutMN-IURAED-2013-06-11Approved: 7/15/13
108 E. Green Street
Ithaca
Urban
Renewal
Agency
Ithaca, New York 14850
(607) 274-6559
(607) 274-6558 (fax)
MINUTES
ITHACA URBAN RENEWAL AGENCY
Economic Development Committee (EDC)
3:30 PM, Tuesday, June 11, 2013
Common Council Chambers, 3rd Floor, City Hall, Ithaca, NY
Present: Doug Dylla, Heather Filiberto, Heather Harrick (new member), Leslie Ackerman
Excused: Jennifer Tegan
Staff: Nels Bohn, Charles Pyott
Guests: Doug Levine, Executive Director, The State Theatre
I. Call to Order
Chairperson Dylla called the meeting to order at 3:33 P.M. and welcomed Harrick to the
committee.
II. Agenda Additions/Deletions ― None.
III. Public Comments (3‐minute maximum per person) ― None.
IV. Special Topic: State Theatre of Ithaca, Inc. ― Status Report
Doug Levine, Executive Director, submitted current State Theatre financial statements to
committee members, noting the theatre averaged 75‐80 events per year in the past 4
years. The Theatre hosted 85 events this year with more than 50,000 patrons in 2012
(including unpaid events). Paid events generated 47,000‐48,000 patrons. Total income
from ticket sales was appr. $30,000 less than budgeted in 2012. The theatre supported its
operations with 65% earned income and 35% contributions and sponsorship income. (In
comparison, in the theatre world, the ratio tends to be closer to 50%‐50%.) Levine
remarked the theatre does not have as much corporate support as many other theaters.
Levine noted the theatre recently attempted to purchase a large local building to serve as
income‐generating rental space, through its State Theatre Foundation; however, the offer
was rejected. This has been was a learning experience for the theatre; and it will most
likely search for another similar opportunity.
IURA EDC Minutes
June 11, 2013
Page 2 of 8
The State Theatre continues to struggle with periodic cash flow challenges as performers
require large deposits several months in advance of shows, and the operation functions
essentially as a financial breakeven. To assist in covering upcoming operating expenses
the theatre will be submitting a promising $30,000 grant application to the New York State
Council on the Arts (NYSCA), which Levine is confident will be granted.
Levine announced the theatre successfully launched a brand new web site, which is
mobile‐enabled and tied directly to its ticketing company, which should be significantly
more efficient than the old system. The theatre also switched to FrontGateTickets for its
ticketing services, which is superior for small theatres.
Levine made note of the following recent highlights and points‐of‐interest:
Customers will be able to buy any ticket to any show in 2013‐14 season ― a huge step
forward.
The theatre gained better grasp of the social media landscape in 2012.
The theatre increased number of family shows from 5 to 6.
Great anticipation is building for the 12/6/13 Temptations performance, in honor of
the State Theatre’s 85th Birthday Celebration.
The theatre now owns a digital projector, so it now has the ability to incorporate film
into its events.
Building upgrades have continued (e.g., carpet cleaning, new plaster, new line array
system, better box office lighting, etc.).
Fundraising is under way for major restroom renovation to original 1928 design, in
mid‐ to late‐2014, with $50,000 raised to date; the theatre also received a grant to
improve its concessions area.
New board members have fundraising/marketing backgrounds (e.g., Amy Dickinson,
noted local author, and Chet Osadchey, Vice President/General Manager, Cayuga
Radio Group).
Bohn asked if the theatre covered the cost of all its performances through fundraising.
Levine replied, yes. Bohn observed the theatre has not always succeeded in doing that,
so that represents significant progress.
Dylla inquired into the theatre’s debt situation. Levine replied probably the most
significant debt is the IURA loan, which the theatre is repaying without too much
difficulty (minor seasonal operating income fluctuations, notwithstanding).
V. Review of Meeting Minutes: May 14, 2013, 2013
Filiberto moved, seconded by Ackerman, to approve the May 14, 2013 minutes, with no
modifications. Carried Unanimously 3‐0. Harrick abstained.
IURA EDC Minutes
June 11, 2013
Page 3 of 8
VI. Property Disposition
A. Authorization to Issue Request for Expression of Interest (RFEI) for Acquisition &
Development of 6‐Acre Parcel in Cherry Street Industrial Park (Tax Map: #100.‐2‐1.2)
Bohn noted the goal is to actively market the 6‐acre parcel and maximize its economic
development potential.
(The City originally acquired the land for the purpose of creating a buffer between the
Black Diamond Trail and the adjacent industrially‐zoned land. Using the entire parcel for
that purpose was not necessary, so Common Council agreed to transfer it to the IURA.)
At the last EDC meeting, the committee discussed the Request for Proposal (RFP), but
ultimately agreed it would make more sense to create an “expression of interest”
document instead. This has now been drafted.
Bohn remarked he consulted with the City Attorney and City Controller about the new
approach, which they both found acceptable. The one remaining consideration is to
ensure the RFEI balances the need for getting sufficient information from responders with
the need to ensure no one is unduly discouraged from applying.
Ackerman asked about the potential to provide access to the site from the south across the
railroad line. Bohn replied that standard train heights would require a bridge height that
would be cost‐prohibitive. And the railroad will not allow new at‐grade crossings.
Harrick asked if a bridge could be built over the inlet. Bohn replied, yes, although with a
projected cost of at least $1M, the likelihood of that is very slim. In fact, the concept was
raised several years ago as a potential means to alleviate west end traffic congestion, but it
was met with vociferous opposition from residents West Hill residents. Bohn noted that
the proposed Black Diamond Trail includes a pedestrian bridge across the Flood Control
Channel at the extension of Cecil A. Malone Drive.
Harrick inquired into the extent of any other IURA involvement in the immediately
adjacent area. Bohn replied all the businesses located south of the gentle bend in Cherry
Street to its dead‐end were developed through IURA lease agreements (totaling 9 parcels).
He added that Vector Magnetics has indicated it may be interested in expanding (although
not necessarily on this particular parcel).
Dylla remarked Bohn did a very good job of drafting the RFEI. Filiberto agreed.
Bohn indicated that, if an applicant submits a detailed proposal for all 6 acres, the IURA
would certainly be free to enter into more substantial negotiations with them directly.
IURA EDC Minutes
June 11, 2013
Page 4 of 8
Bohn noted it makes sense to spend some money to perform a Phase I environmental
assessment of the site. The IURA will also incur some marketing costs (e.g., advertizing, 3%
real estate broker sales commission).
Dylla asked if the committee should soften its reference to the use of the site (i.e., merely
emphasize the community benefits of economic development). Bohn replied that portion
of the RFEI reflects the Common Council’s directions to the IURA, although something
could certainly be added to address Dylla’s concern.
Bohn briefly outlined the next steps in the process.
Next Steps:
1. Analyze responses & determine if the IURA has enough information make a
determination.
2. Designate responder(s) as qualified & eligible sponsor(s). Unlike the City, the IURA can
negotiate a sale, so it could accept a lower sale price than market price, or seek the
most it could possibly get, etc. The IURA could also ask for designated end‐uses. All of
these kinds of details can be factored into the final agreement (either as a Disposition
and Development Agreement or a simple Purchase Agreement).
3. Execute exclusive negotiating agreement with selected sponsor(s).
4. Negotiate the agreement(s), including sale price, conditions, etc.
5. Submit a proposed agreement to the IURA Board as a binding agreement.
6. Submit the agreement to a Public Hearing at a Common Council meeting following
publication of a legal ad disclosing the proposed buyer(s), price, use and essential
terms of the sale.
7. Common Council would then vote to endorse, modify or reject the agreement.
Bohn noted the process will probably take the next 6‐10 months. The EDC has the
authority to designate the sponsor, but it is the IURA Board which needs to approve the
final proposed agreement.
Moved by Ackerman, seconded by Harrick:
Authorize Disposition Process for 6‐Acre Parcel at Southerly End of Cherry Street (Tax
Parcel #100.‐2‐1.21)
WHEREAS, on April 19, 2013 the City of Ithaca executed a Purchase and Sale (P&S)
Agreement to convey a 6‐acre parcel at Cherry Street to the Ithaca Urban Renewal
Agency (IURA) to market and negotiate a proposed sale of the property for economic
development purposes, and
IURA EDC Minutes
June 11, 2013
Page 5 of 8
WHEREAS, pursuant to §507 of the General Municipal Law, the City is authorized to
dispose of real property through the IURA to a qualified and eligible sponsor (a/k/a
preferred developer) at a negotiated sales price for a specific end use, following
publication of a notice disclosing the terms of the proposed sale and a public hearing
and approval by the Common Council of the proposed sale, and
WHEREAS, the parcel is located within the Urban Renewal Project Boundary area, and
WHEREAS, terms of the P&S Agreement require the IURA to solicit competitive
proposals for purchase and development of the property in compliance with the
following guidelines:
Sales price: seek fair market value
Use: economic development
Tax Status: taxable, and
WHEREAS, the IURA Economic Development Committee (EDC) recommends issuance of
an Request for Expression of Interest (RFEI) rather than an Request for Proposals (RFP)
to better elicit interest by businesses to acquire and develop all, or part of, the project
site without the need to develop a detailed proposal, financing plan and specific
purchase price, and
The RFEI may provide information to structure a subsequent RFP for the site or lead to
direct negotiation with a respondent to acquire and develop the site, and
WHEREAS, the EDC further recommends pro‐active marketing of the FREI to the
business and real estate community and completion of a phase 1 Environmental Site
Assessment (ESA) of the site, and
WHEREAS, the EDC has developed a proposed RFEI package, including selection criteria
for evaluating responses, and
WHEREAS, the RFEI further describes the disposition process including possible
designation of a Qualified and Eligible Sponsor (a/k/a preferred developer) by the EDC
and execution of a 90‐day exclusive negotiating period to structure a proposed sale
agreement for consideration by the IURA and Common Council, and
WHEREAS, the EDC Committee proposes that it be delegated the authority to select a
Qualified and Eligible Sponsor and to conduct the negotiations for structuring a
proposed disposition and development agreement, and
IURA EDC Minutes
June 11, 2013
Page 6 of 8
WHEREAS, the EDC considered this matter at its May 14, 2013 and June 11, 2013
meetings and recommends the following; now, therefore, be it
RESOLVED, that the IURA hereby authorizes staff to issue and advertise the Request for
Expressions of Interest (RFEI), dated June 7, 2013, to solicit proposals to purchase and
develop a 6‐acre parcel located at the southerly end of Cherry Street (tax parcel #100.‐2‐
1.21), and be it further
RESOLVED, that the IURA hereby delegates authority to the Economic Development
Committee (EDC) to conduct preliminary review of responses, designate eligible and
qualified sponsor(s) in accordance with section 507 of General Municipal Law, and
further authorizes the IURA Chair to enter into an exclusive negotiation agreement with
a designated Sponsor(s), subject to review by IURA legal counsel, and be it further
RESOLVED, that the IURA also delegates authority to the EDC to negotiate with the
selected Sponsors to develop a proposed disposition and development agreement to be
considered for approval by the IURA and Common Council, and be it further
RESOLVED, IURA staff is authorized to incur expenses to advertise the RFEI in the Real
Estate Journal supplement in the Ithaca Journal and contract for completion of a phase
1 Environmental Site Assessment (ESA) of the site, such funds to be reimbursed from
sale proceeds of the site.
Carried Unanimously 4‐0
VII. Staff Report
A. Status Report on IURA Accomplishments Toward Its Economic Development
Performance Goals
Bohn walked through the report, noting the IURA continues to meet its goals, although
the trend‐line is slightly down. The IURA needs to see a little more activity by the end of
the year, to keep the trend‐line up. Generally speaking, IURA loan activity is better than
its job training/placement efforts; however, the new Action Plan includes two new job
training programs, so some progress may be made in that area.
Dylla asked what the loan fund balance is. Bohn replied the IURA has approximately
$450,000 in the Revolving Loan Fund, as well as access to some other funds.
Approximately $130,000/year in loan repayments is also anticipated.
IURA EDC Minutes
June 11, 2013
Page 7 of 8
B. Community Lending Pipeline
Bohn indicated the EDC should expect to see a forthcoming application from the Ithaca
Coffee Company to acquire 702 Hancock Street and convert it to a coffee roasting
facility.
Bohn noted that a high‐end shoe and handbag retail business has expressed interest in
the space next to the new Sarah’s Patisserie on Seneca Street, in the Hilton Garden Inn
and they may seek IURA loan financing.
Bohn remarked that another party has expressed interest in starting a restaurant and
nightclub downtown.
C. Review of May 2013 Lease & Loan Repayment Report
Bohn reported that most of the loans are current (including the State Theatre, now). He
provided the following updates:
Diane's Downtown Automotive made three payments. The owner believes she can
make a double payment soon, which is very good news, given the financial
challenges the business has periodically been experiencing.
Argos Inn is not current on its loan. The owner is still waiting to close on his tax
credit, which he believes will happen soon. It is just a matter of scheduling the
meeting. Once the owner closes on it, he can open for business.
Dylla asked about the Finger Lakes Wine Center and whether it possesses any
recoverable assets. Bohn replied the Wine Center has now surrendered its liquor
license to the State and it has very few other assets. (Bohn has asked for a complete
inventory of the assets.)
D. Projects & Grants Update
Bohn announced that the City submitted a $15M TIGER (Transportation Investment
Generating Economic Recovery) grant application, for further development of the
Commons and creating transit spokes up to Cornell University and Ithaca College
(including funds for new TCAT buses, real‐time bus scheduling displays, streetscape
improvements, and a bus traffic prioritization system).
VIII. Other Business
None.
IURA EDC Minutes
June 11, 2013
Page 8 of 8
IX. Adjournment (Next Meeting Date: 3:30 PM, Tuesday, July 9, 2013)
The meeting was adjourned by consensus at 4:53 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.