HomeMy WebLinkAboutMN-IURAGOV-2010-06-18Ithaca
Urban
Renewal
Agency
Approved September 17, 2010
108 East Green Street
Ithaca, New York 14850
(607) 274-6559 559
MINUTES MINUTES
IURA Governance Committee IURA Governance Committee
8:30 a.m., June 18, 2010 8:30 a.m., June 18, 2010
Present: Sue Cummings, Carolyn Peterson, Kathy Schlather Present: Sue Cummings, Carolyn Peterson, Kathy Schlather
Absent: David Whitmore Absent: David Whitmore
Staff: Nels Bohn, JoAnn Cornish, Alice Vargo Staff: Nels Bohn, JoAnn Cornish, Alice Vargo
I. Call to Order I. Call to Order
The meeting was called to order at 8:47 a.m. by Chairperson Cummings. The meeting was called to order at 8:47 a.m. by Chairperson Cummings.
II. Additions to or deletions from the agenda ‐ None II. Additions to or deletions from the agenda ‐ None
III. Public comment ‐ None III. Public comment ‐ None
IV. Approval of meeting minutes: May 21, 2010 IV. Approval of meeting minutes: May 21, 2010
Minutes were reviewed and corrected, but final action was deferred until Peterson joined the
meeting. At 9:40 p.m., Peterson moved, seconded by Cummings, to approve the minutes as
corrected. Carried Unanimously.
Minutes were reviewed and corrected, but final action was deferred until Peterson joined the
meeting. At 9:40 p.m., Peterson moved, seconded by Cummings, to approve the minutes as
corrected. Carried Unanimously.
V. New Business V. New Business
A. HUD Entitlement Program, program amendment to increase the budget for the Southside
Community Center gym air conditioning project, (CDBG 2007 #9)
A. HUD Entitlement Program, program amendment to increase the budget for the Southside
Community Center gym air conditioning project, (CDBG 2007 #9)
Cummings indicated that the Neighborhood Investment Committee was not scheduled to
meet this month, so this issue was referred to the Governance Committee. Bohn
introduced the resolution. He noted that reallocation of unobligated CDBG funds could fund
the base project, but would be insufficient to fund the recommended Add/Alt to install the
DCV sensors that will improve energy efficiency and indoor air quality.
Cummings indicated that the Neighborhood Investment Committee was not scheduled to
meet this month, so this issue was referred to the Governance Committee. Bohn
introduced the resolution. He noted that reallocation of unobligated CDBG funds could fund
the base project, but would be insufficient to fund the recommended Add/Alt to install the
DCV sensors that will improve energy efficiency and indoor air quality.
Cummings suggested adding a resolved statement requesting that the City fund the Add/Alt.
Members agreed.
Cummings suggested adding a resolved statement requesting that the City fund the Add/Alt.
Members agreed.
The following resolution was moved by Peterson, seconded by Schlather: The following resolution was moved by Peterson, seconded by Schlather:
HUD Entitlement Grant ‐ Program Amendment to Increase Budget for Southside
Community Center Gym Air Conditioning Project (CDBG 2007 #9)
HUD Entitlement Grant ‐ Program Amendment to Increase Budget for Southside
Community Center Gym Air Conditioning Project (CDBG 2007 #9)
Whereas, the 2007 City of Ithaca Action Plan funded the Southside Community Center Gym
Air Conditioning project (SSCC Gym AC) at $43,000, and
Whereas, the 2007 City of Ithaca Action Plan funded the Southside Community Center Gym
Air Conditioning project (SSCC Gym AC) at $43,000, and
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6/18/10 Minutes
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Whereas, following completion of bid documents, $38,369.84 in project funds remain for
implementation of the project, and
Whereas, the low base bid received for the project is $61,661, and
Whereas, factoring in other project costs result in the following post‐bid project budget:
$61,661 construction contract
$1,500 architect/commissioning
$2,000 owner’s representative
$100 printing
$3,700 construction contingency (6%)
$68,961 Total, and
Whereas, a funding gap of approximately $30,000 exists for implementing this project, and
Whereas, a recommended Add Alternative to include differential demand controlled
ventilation sensors (DVC sensors) are available for an additional $3,598, which are reputed
to have a payback period of less than two years in saved energy costs for a room with
sporadic utilization, and
Whereas, the following unobligated CDBG funds from completed projects are available:
$24,117.09 Cass Park dock (CDBG 2007 #12)
$2,896.50 ED project loan fund (CDBG 2005 #7)
$1,864.98 CDL Training Year 2 (CDBG 2007 #8)
$1,391.78 GIAC computer lab (CDBG 2006 #11)
$416.63 CDL Training Year 1 (CDBG 2006 #7)
$30,686.98 Total CDBG Funds Available for Reprogramming
Whereas, reallocating the above unobligated CDBG funds to the project will provide total
CDBG funding of $69,056.82, and
Whereas, IURA funding appears to be sufficient to complete the base bid project, but not
fund the Add Alternative DCV sensors, and
Whereas, City funds may be available for the DCV sensors Add/Alt from capital reserve
account #24 that was established to fund energy efficiency improvements, and
Whereas, IURA staff recommends reallocation of $30,686.98 in unobligated funds from
various completed CDBG projects to the SSCC Gym AC project so this project can be
completed, and
Whereas, per the Citizen Participation Plan for the HUD Entitlement program, the proposed
budget reallocations do not require public hearings or Common Council approval as the
purpose, scope, location and beneficiaries of the project all remain unchanged, and
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6/18/10 Minutes
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Whereas, the Governance Committee discussed this matter at their June 18, 2010, meeting
and recommended the following; now, therefore, be it
RESOLVED, that the IURA hereby approves a program amendment to reallocate $30,686.98
to the Southside Community Center Gym Air Conditioning project (CDBG 2007 #9) from
remaining balances of the following completed projects:
$24,117.09 Cass Park dock (CDBG 2007 #12)
$2,896.50 ED project loan fund (CDBG 2005 #7)
$1,864.98 CDL Training Year 2 (CDBG 2007 #8)
$1,391.78 GIAC computer lab (CDBG 2006 #11)
$416.63 CDL Training Year 1 (CDBG 2006 #7)
$30,686.98 Total,
RESOLVED, that the IURA recommends to the Common Council to authorize expenditure of
up to $5,000 from capital reserve account #24 – Energy Efficiency Improvements ‐ to fund
the Add Alternative to upgrade controls to include DCV sensors that will improve energy
efficiency of the air conditioning system, and be it further
RESOLVED, that the IURA requests the Common Council for the City of Ithaca allocate
funding for the DCV sensors ADD/Alt from Capital Reserve account #24 – Energy Program
Improvements.
Carried Unanimously 3‐0
VI. Old Business
A. Summer youth employment funding shortfall, identification of potential resources –
Cummings reviewed IURA and other potential resources, noting that funding for the
Southside Community Center Air Conditioning project consumed all unobligated CDBG
funds. Bohn reviewed pending federal legislation that would provide $1 Billion for summer
youth employment programs, but noted the legislation is stalled in the US Senate. Bohn
reported that the CDBG funding cycle, which requires selection of projects in early winter
for funding in September, makes funding a community need that is presented after January
and required by summer very difficult to fund with CDBG funds. He also noted that youth
employment activities are categorized under the “public service category” that is limited to
15% of the City’s CDBG funding allocation.
Cummings recommended focusing on Seized Assets funding received by the City to develop
youth and young adult programs that prevent drug abuse and provide opportunities for skill
building and job training and economic opportunities. The committee reviewed federal
guidance on allowed uses of seized asset funding derived by convictions of criminal activity.
Cummings recommended the IURA discuss developing a recommendation to the Common
Council that it take an active role in planning use of seized asset funding to explore ways the
funds can be used to address a shortfall in summer youth employment funding.
Peterson arrived 9:35 a.m.
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Cummings brought Peterson up‐to‐date on the possible City funding source for youth
programming. Peterson agreed that seized assets funds should be explored, along with
other existing City resources, to address the Federal and State funding shortfall for summer
youth employment funding.
B. IURA compensation policies, guidance for development of 2011 IURA budget
Members briefly discussed IURA compensation policies. No action was taken.
VII. Staff Report
A. Clarifications to resale/recapture provisions in 2010 Action Plan
Bohn discussed the contents of an email from HUD staff requesting the IURA to define in its
2010 Action Plan a “reasonable range of low‐income homebuyers” for resale provisions of
HOME‐ funded activities. A draft revision to resale/recapture provisions in the Action Plan
was discussed that defined the range of targeted low‐income homebuyers as a family that
earns 70%‐80% of the area median income. Bohn clarified that this revised language does
not prohibit assisting homebuyers who earn less than 70% of the area median income, but
requires HOME‐funded projects under a resale provision to be designed so that such resales
during the affordability period are affordable to families that earn no more than 70‐80% of
the area median income. Members agreed with the clarified resale/recapture provisions.
B. Finger Lakes Wine Center project update
Bohn updated members on project progress. He reported that the Wine Center is
scheduled to open in fall 2010.
C. Common Council matters of interest to the IURA
Bohn reported that the Common Council endorsed the INHS new housing construction
project at 100 W. Seneca Street and TCAction’s project at 314 Meadow Street for funding
through the Housing Fund. Bohn reported on three tax foreclosed properties the City is
considering making available to INHS for rehabilitation, or reconstruction.
D. Other – Consent to Leasehold Mortgage on Premises Leased to Evaporated Metal Films
Corp.
Bohn explained that Dynasil, the parent company of Evaporated Metal Films (EMF) has
secured favorable financing that strengthens their ability to invest in the company’s growth
and expand product lines, subject to the IURA’s approval. He noted that this item came up
after the IURA Economic Development Committee met, so it was brought to the Governance
Committee. Bohn reported that 2009 was a slow year for EMF, but 2010 has been much
better, according to EMF staff. They have a new product line and added 5 new employees,
which brings the total to 22 employees.
Cummings moved, seconded by Schlather, the following resolution:
Consent to Leasehold Mortgage on Premises
Leased to Evaporated Metal Films Corp.
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Whereas, the Ithaca Urban Renewal Agency (IURA) leases property in the Cherry Street
Industrial Park located at 239 and 245 Cherry Street, Ithaca, NY, to Evaporated Metal Films
(EMF), and
Whereas, EMF is a wholly owned subsidiary of Dynasil Corporation of America (“Dynasil”),
and
Whereas, Dynasil has secured a financing commitment letter from Sovereign/Santander
Bank to refinance existing debt and access a working capital line of credit and an acquisition
line of credit, and
Whereas, on June 17, 2010, Dynasil requested that the IURA execute a Consent and
Acknowledgement consenting to EMF granting a leasehold mortgage to Sovereign Bank on
the IURA premises leased by EMF to secure the above referenced financing, and
Whereas, the IURA/EMF ground lease requires IURA approval to assign any interest in the
lease, but such approval shall not be unreasonably withheld, and
Whereas, the IURA Governance Committee considered this matter at their June 18, 2010
meeting and recommended the following; now, therefore, be it
Resolved, that the IURA hereby authorizes execution of a leasehold mortgage to Sovereign
Bank on property leased by the IURA to EMF, and be it further
Resolved, that the IURA Chairperson, subject to review by legal counsel, is authorized to
execute any and all documents to implement this resolution, including a Consent and
Acknowledgement.
Carried Unanimously.
VIII. Other Business
A. Review of IURA May 2010 financials
The committee reviewed and accepted the May 2010 financials. Bohn noted that all loans
are current except for Diane’s Downtown Automotive, which remains one month late. She
has indicated she will bring in her 2009 financials to discuss a possible restructuring of her
loan, according to Bohn.
B. Next Meeting: July 16, 2010
IX. Adjournment
The meeting adjourned by consensus at 10:40 a.m.
Minutes prepared by A. Vargo, edited by N. Bohn.
j:\community development\admin files\minutes\governance‐ b&a\2010\6june\gov min 6‐18‐10 nb edit.doc