HomeMy WebLinkAboutMN-IURAED-2013-11-12Approved: 1/14/14
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, November 12, 2013
Common Council Chambers, 3rd Floor, City Hall, Ithaca, NY
Present: Doug Dylla, Heather Filiberto, Heather Harrick, Jennifer Tegan
Excused: Chris Proulx, Leslie Ackerman
Staff: Nels Bohn, Phyllisa DeSarno, Sue Kittel, Charles Pyott
Guests: Gary Ferguson, Executive Director, Downtown Ithaca Alliance (DIA)
Ken Schlather, Executive Director, Cornell Cooperative Extension of Tompkins County (CCE)
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.
IV. Review of Meeting Minutes: October 8, 2013
Harrick moved, seconded by Tegan, to approve the October 8, 2013 minutes, with no
modifications. Carried Unanimously 3‐0.
V. HUD Entitlement Program
A. Development of 2014‐2018 Consolidated Plan ― Topic Focus Meeting on
Downtown Revitalization & Economic Development, Identification of Priority Uses for
HUD Resources to Address Economic Development Needs
Kittel indicated that the 2014‐2018 Consolidated Plan will include a needs assessment
and a strategic plan, for which she would perform all the outreach and then draft the
plan. She would particularly like to concentrate on what EDC would like to focus on
over the next five years. The language from the last Consolidated Plan is in the meeting
packet, which she thought EDC might want to borrow and refine.
IURA EDC Minutes
November 12, 2013
Page 2 of 10
Kittel noted that, in retrospect, some parts of the last Consolidated Plan seem a little
generic to her. She would also like EDC’s input on individual successes and failures, and
whether it would like to identify the same priorities, remove them, change them, etc.
DeSarno commended the IURA for everything it does to support her work for the City.
She would like to see it focus on virtually anything that can nurture the community,
especially if it benefits certain identifiable populations, such as women and minorities,
which thinks would be particularly important to support. Also, she would like to focus
on making the Cherry Street Industrial Park area available for a broader spectrum of
uses. Overall, she would recommend making the Consolidated Plan as comprehensive
as possible.
Ferguson stressed that a continuation IURA loans would be very important. He and
DeSarno both work closely with small businesses, which are usually very constrained in
terms of their access to capital. IURA loan assistance is crucial, particularly for
businesses that are not eligible for Tompkins County Area Development (TCAD)
assistance, and they tend to fall through the cracks. But it is precisely those kinds of
businesses that are most needed in the downtown commercial district. Ferguson also
urged a continued focus on the retail and service sectors. He stressed that, even with all
of the recent activity in the downtown area, it is a challenge to attract and retain these
kinds of businesses in the city.
DeSarno observed that large developers need bridge loans, just as much as small
businesses. The wonderful thing about the IURA is that it works with such a broad
variety of types of people and businesses.
Dylla noted that he believes the businesses that would draw the most people are books,
food, and crafts. He asked if the DIA is seeking to build up a critical mass of those kinds
of businesses or other sectors.
Ferguson responded, yes, it just held a business retention and recruitment meeting and
reviewed a list of priority businesses. DIA would definitely like to see more apparel
businesses, although not so much bookstores, since they are not as much in demand.
DeSarno noted she has also been investigating opportunities to attract women’s shoe
stores, especially any regional stores. She is working with one woman, for example, in
business for the first time, to finish final negotiations for a lease at Seneca Place. She
also intends to apply for IURA financing. DeSarno noted it is challenging to identify and
recruit the right mixture of businesses: to identify a need and bring in a new merchant,
without harming existing businesses. She stressed that IURA bridge financing is a
tremendous help for these kinds of retail endeavors.
IURA EDC Minutes
November 12, 2013
Page 3 of 10
Kittel asked Committee members if they remain interested in job training/placement.
Dylla responded, yes for job placement programs, especially given that past IURA job
training/placement activities have not been entirely successful in achieving measurable
outcomes.
Filiberto observed there has been at least one instance of a successful collaboration
between various local organizations, in the past year, for the hospitality mentoring and
training program. It will be important to promote partnerships with Workforce NY and
work with them to expand its existing programs, rather than begin from scratch.
DeSarno suggested exploring a program similar to the hospitality program, but focused
on the wine industry.
Dylla responded that the prospective farm‐to‐bistro program may address that kind of
need. Overall, he added, it may be helpful to include start‐up technical assistance as
part of any assistance the IURA provides, especially for certain kinds of relatively high‐
risk businesses, like restaurants and so on.
Ferguson noted the DIA itself does not have the capacity to provide ongoing technical
assistance for those kinds of businesses; although there may a way of doing that with
access to more funding. He added there are certain downtown retail locations that
seem to have particular problems associated with them. Unfortunately, DIA is called in
only 4‐5 months after a problem arises, by which point it is very difficult to remedy the
situation. He observed that Alternatives Federal Credit Union (AFCU) does a very good
job with its own business start‐up training; however, that is a package deal. It would be
good to have greater flexibility than that (i.e., not just a 13‐week class), including
targeted coaching for certain identified problem areas, especially after businesses have
begun operations.
(Tegan arrived at 3:59 p.m.)
DeSarno noted that she believes the Binghamton office of the New York Small Business
Development Center is planning to become more active in the Ithaca area for business
plan development services, which would be good.
Filiberto noted that it is the businesses at the bottom that need the most assistance.
Unfortunately, however, many of those businesses do not think they need technical
assistance, when they actually do.
Dylla observed that the city has a vibrant West State Street commercial district and
Commons, but there is somewhat of a wasteland in between them; so it would be
helpful to strengthen the connection between the two. He also noted there are several
IURA EDC Minutes
November 12, 2013
Page 4 of 10
small high‐technology and home‐based businesses in the downtown area, which it may
be possible to assist.
Ferguson noted there is also a great opportunity with Cornell University and its plans to
bring a technology transfer program into the urban core.
VI. Property Disposition
A. Cherry Street Industrial Park Expansion — Review Proposals from Commercial
Real Estate Brokers to Market 6‐Acre Parcel Located at End of Cherry Street
Dylla observed that all three candidates were a little underwhelming, in his opinion.
Harrick asked if the parcel could be subdivided at some point. Bohn replied, yes, but
there is only 66 feet of street frontage, which would complicate that process and would
add to the cost of development (e.g., roads, utilities, etc.).
Bohn noted that Steve Lipinski successfully marketed the former Challenge Building and
he is highly competent, especially in terms of personal networking. Pyramid Real Estate,
on the other hand, possesses numerous resources and has a regional reach.
Harrick noted that Jay Gould mentioned problems he encountered digging the
foundation on his property, so she wondered about that as a potential complication.
Bohn replied, yes, the soils have poor load bearing capacity. Generally, the IURA
informs interested parties that they should expect an approximately 25% premium on
the cost of the foundation.
Filiberto indicated she likes the Lipinski proposal. He appears to have a good track
record on recent transactions, has a pretty extensive network, and seems to understand
the Ithaca market.
Dylla agreed, noting that Lipinski’s proposal was the only one that seemed to include
anything unique in his marketing plan.
Bohn noted that the City has generally worked with all of three applicants. He would be
comfortable with any of them.
Moved by Filiberto, seconded by Harrick:
Disposition of 6‐Acre Parcel at Southerly End of Cherry Street (Tax Parcel #100.‐2‐1.21)
― Authorize Listing Agreement with Stephen Lipinski Associates, LLC
IURA EDC Minutes
November 12, 2013
Page 5 of 10
WHEREAS, on June 5, 2013, the City of Ithaca conveyed a 6‐acre parcel at the southerly
end of Cherry Street to the Ithaca Urban Renewal Agency (IURA) to market and
negotiate a proposed sale of the property for economic development purposes, and
WHEREAS, pursuant to terms of the purchase agreement with the City, the IURA agrees
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 parcel is located within the Urban Renewal Project Boundary area, and
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, issuance of a Request for Expression of Interest (RFEI) in summer 2013 and
pro‐active marketing to nearby business owners did not result in any responses to the
RFEI, and
WHEREAS, the Economic Development Committee (EDC) recommends listing the
property for sale with a commercial real estate broker with the understanding that
purchase proposals will still be evaluated for post‐acquisition community and economic
development benefits and that any purchase agreement is subject to IURA approval and
Common Council endorsement, and
WHEREAS, proposals to market and list the property for sale were received from the
following commercial real estate brokers:
• Lama Company
• Pyramid Real Estate
• Stephen Lipinski Associates, LLC, now; therefore, be it
RESOLVED, at their November 12, 2013 meeting, the EDC evaluated proposals and rated
Stephen Lipinski Associates, LLC as their top choice based on recent transaction history,
approach to marketing the property and knowledge of the local business community.
Carried Unanimously 4‐0
IURA EDC Minutes
November 12, 2013
Page 6 of 10
VII. Community Lending
A. Eligibility of Proposed Family Entertainment Bowling Center Project for Assistance
Through Priority Business Loan Fund (PBLF)
Bohn explained the IURA currently has a pool of two loan funds: the Revolving Loan
Fund (RLF) and PBLF, which are guided by what what particular kinds of businesses the
IURA identifies it wants to attract in the greater downtown area, and the gaps in
services and goods it has identified. A family bowling center was not originally on the
“Eligible Projects” list, so the IURA now need to determine if a proposed family
entertainment bowling center project would be eligible. If so, the IURA could provide it
with $150,000. If not, it could only provide $75,000.
Ferguson noted the proposed project would have live entertainment, but the business
would primarily be focused on bowling. It would be a major project, including 21
bowling lanes, food, entertainment, a family arcade, games, etc. DIA is working on an
application for $500,000 loan assistance from the Southern Tier Regional Economic
Development Council.
Bohn indicated he thinks it could possibly fit under the existing “live entertainment
venues” category or as a “use that directly supports the Common Council‐endorsed
Downtown 2020 Strategic Plan” which recommends cultural and entertainment venues
be located downtown, but the decision should be made by the Committee.
Filiberto observed the prospective applicant proposes a $1.6M project, but with no
conventional financing. She asked why banks would be unwilling to provide financing.
Ferguson responded that most banks have no interest in this particular kind of project.
Tegan asked if bowling would be a genuinely viable attraction in Ithaca. Harrick
suggested that high‐end bowling may be more likely to succeed. Ferguson replied, yes,
the project could be considered a high‐end bowling facility.
Bohn added it would be a hybrid entertainment/bowling experience, modeled after The
All Star Bowling in Garrison, New York, which has a wider variety of additional
features/attractions than a conventional bowling alley.
Ferguson noted that the project would not be priced as high‐end ― it would primarily
be marketed to college students and families. The prospective tenant opened his first
operation on Long Island and that has been quite successful. The building owner has
wanted to do this kind of project for several years. He would be the landlord and would
be constructing significant build‐outs for the project. The prospective applicants
commissioned a formal market study for the project, which was positive, and also
consulted other experts.
IURA EDC Minutes
November 12, 2013
Page 7 of 10
Dylla asked how many Committee members believe the project would fit into the live
entertainment category. Tegan, Filiberto, and Dylla all responded affirmatively.
Members reviewed a proposed updated list of eligible businesses for the Ithaca Density
District Priority Business Loan Fund developed by the Downtown Ithaca Alliance based
on a 2013 survey of density district businesses and recent discussion by the Downtown
Ithaca Alliance’s business retention and recruitment committee.
Moved by Filiberto, seconded by Dylla:
Amend the IURA Economic Development Loan Financing Policy to amend the list of
“Eligible Projects” for the Ithaca Density District Priority Business Loan Fund to read as
follows:
• Apparel & Accessories (women’s)
• Apparel (men’s)
• Shoes (men’s, women’s, family, children)
• Grocers and specialty food stores (such as bakery, seafood, prepared foods)
• Underrepresented restaurants (with specialty niches not present in the district)
• Medical businesses and practitioners
• Tourist‐oriented businesses
• Entertainment venues, such as live entertainment and family entertainment
• Childcare enterprises
• General merchandise (soft goods)
• Other businesses that fit the goals and objectives of the Downtown 2020
Strategic Plan, or other Common Council endorsed or adopted strategic plans, as
determined by the IURA
Carried Unanimously 4‐0
Moved by Filiberto, seconded by Harrick:
The IURA Economic Development Committee hereby recommends that the IURA consider
the proposed family entertainment bowling center project proposed by KingPins of Ithaca,
LLC as an eligible activity for the Priority Business Loan Fund as a use that directly supports
the Common Council‐endorsed Downtown 2020 Strategic Plan, which recommends
cultural and entertainment venues be located downtown. Additionally, the proposed
use will be a “live entertainment venue”, which is a listed eligible use.
Carried Unanimously 4‐0
IURA EDC Minutes
November 12, 2013
Page 8 of 10
B. eLab Dowtown Retail Corridor Support Program (#9, 2012 CDBG) ― Status Report
Bohn explained that the eLab program had to be designed to meet both the project’s
goals and IURA regulations. Launched in Spring 2013, it seemed to be moving forward
pretty well ― however, in October 2013, the IURA did not receive the required report
and there has also been a lack of communication with the project manager. As a result,
Schlather was asked to appear before the Committee to provide an update on the status
of the project.
Schlather stressed that he can unequivocally state that the project is going well. He
spoke to the project manager to ask him when the required report could be expected,
to which the project manager replied, by the end of next week at the latest. The project
has currently transitioned into its last phase. The project manager emphasized to
Schlather that the project has been a lifesaver for the owners of the enrolled businesses.
(One of them even considered selling his house to pay the debt on his business.) The
project manager has been working with the businesses to re‐focus the business, analyze
the market, and reshape its finances. Schlather noted that CCE is still waiting for a full
accounting of the project’s expenses, which is why it has not yet submitted an invoice to
the IURA.
Tegan asked how often Schlather communicates with the project manager. Schlather
replied, up until August 2013, every two weeks. Since then, it has been far less
frequent.
Tegan asked which businesses are enrolled in the project. Schlather replied, Big Time
Barber Shop, Ithacuts, Art & Found, and Jenn & Andy’s.
Bohn noted the report is intended to be a progress report, which should identify a list of
issues.
Tegan asked for the reason for the delay. Bohn replied, the project manager had
encountered some personal issues, from which he was trying to recover. Schlather
added that he expects the project would continue past November 2013.
Dylla asked if it would be a final report. Bohn replied, originally it would have been;
however, at this point, it may simply end up being a quarterly report.
Filiberto indicated she would like to see some firm billing deadlines established (e.g., by
January 2014).
Dylla noted the report should also identify some specific measurable outcomes. Bohn
replied that considerable time was spent crafting specific outcomes to evaluate, so he
imagines that should be readily available information.
IURA EDC Minutes
November 12, 2013
Page 9 of 10
Bohn asked Schlather if the end of January 2014 would be a reasonable deadline.
Schlather replied, yes, that should be feasible, although he does not know for certain.
Bohn noted the IURA retains the right to terminate funding with or without cause. If
with cause, the IURA could issue the reason for termination and simply terminate the
agreement if the project is not completed by a certain date.
Tegan asked if anyone had spoken directly with any of the enrolled businesses.
Schlather and Bohn both replied, no. Bohn noted he believes DeSarno may have spoken
to Art & Found.
Tegan noted she would like to wait until the report has been submitted, before
identifying a firm deadline. Bohn indicated he would send out a notice regarding the
deadline for the report, indicating that the project should be completed by end of
January 2014.
B. Update on Various IURA‐Assisted Community Lending Projects ― Possible
Executive Session to Discuss Financial History of Particular Person or Corporation
― EXECUTIVE SESSION ―
Tegan moved, seconded by Harrick, to open the Executive Session at 4:46 p.m.
Carried Unanimously 4‐0
No action was taken during the Executive Session.
― Executive Session concluded at 5:01 p.m. ―
D. October 2013 Lease & Loan Repayment Report
Reviewed and accepted.
E. Loan Pipeline Report
Bohn noted that Diane Beckley from Sign‐A‐Rama has not yet followed through on an
anticipated loan application.
VIII. Other Business
A. Election of Economic Development Committee Vice‐Chairperson
Moved by Filiberto, seconded by Tegan:
IURA EDC Minutes
November 12, 2013
Page 10 of 10
Fill Vacant IURA Economic Development Committee Vice‐Chairperson Position
WHEREAS, the IURA By‐laws provide that the committee membership shall elect its
own committee Vice‐Chairperson and nominate a candidate for committee
Chairperson for consideration by the Agency, and
WHEREAS, per the bylaws, an Agency member shall fill either the committee
Chairperson or committee Vice‐Chairperson position, and
WHEREAS, officers of each committee serve a one‐year term, but continue to hold
office until their successor is selected or appointed, and
WHEREAS, the Chairperson position is held by Doug Dylla who is not a member of the
Agency, and
WHEREAS, Chris Proulx is the only member of the IURA Economic Development
Committee who is also a member of the Agency, and
WHEREAS, at their November 12, 2013 meeting, the IURA Economic Development
Committee considered this matter; now, therefore, be it
RESOLVED, that the IURA Economic Development Committee hereby elects Chris
Proulx to serve as the Economic Development Committee Vice‐Chairperson.
Carried Unanimously 4‐0
IX. Staff Report
A. Cherry Street Industrial Park
Bohn noted that MadCherry II, LLC has submitted a site plan for a 10,000‐SF building at
243 Cherry Street.
B. Proposed Program Amendment to 2013 Action Plan
Bohn noted the IURA approved a $52,776 program amendment to the 2013 Action Plan
to fund the Learning Web's Supported Employment Program to place at least 7 youth in
unsubsidized jobs at Cayuga Medical Center.
X. Adjournment (Next Meeting Date: 3:30 PM, Tuesday, December 17, 2013)
The meeting was adjourned by consensus at 5:04 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn