HomeMy WebLinkAboutMN-IURAGOV-2012-07-20Ithaca
Urban
Renewal
Agency
Adopted 9/21/12
108 East Green Street
Ithaca, New York 14850
(607) 274-6559 6559
MINUTES MINUTES
IURA Governance Committee IURA Governance Committee
8:30 AM, Friday, July 20, 2012 8:30 AM, Friday, July 20, 2012
3rd Floor Conference Room, City Hall 3rd Floor Conference Room, City Hall
Present: Chairperson Susan Cummings, Kathy Schlather, Eric Rosario Present: Chairperson Susan Cummings, Kathy Schlather, Eric Rosario
Absent: None. Absent: None.
Staff: Nels Bohn, JoAnn Cornish, Sue Kittel, Charles Pyott Staff: Nels Bohn, JoAnn Cornish, Sue Kittel, Charles Pyott
Public: None. Public: None.
I. Call to Order I. Call to Order
The meeting was called to order by Chairperson Cummings at 8:39 a.m. The meeting was called to order by Chairperson Cummings at 8:39 a.m.
II. Agenda Additions/Deletions II. Agenda Additions/Deletions
Cummings asked for an update regarding the bond issuance. No objections were raised.
(Note: Some of the agenda items below were discussed out of sequence for the sake of
expediency.)
Cummings asked for an update regarding the bond issuance. No objections were raised.
(Note: Some of the agenda items below were discussed out of sequence for the sake of
expediency.)
III. Public Comments – None III. Public Comments – None
IV. Approval of Meeting Minutes: June 22, 2012 IV. Approval of Meeting Minutes: June 22, 2012
Schlather moved, seconded by Rosario, to approve the minutes June 22, 2012, with one
minor change. Carried Unanimously.
Schlather moved, seconded by Rosario, to approve the minutes June 22, 2012, with one
minor change. Carried Unanimously.
V. New Business V. New Business
B. Recommendation to IURA on Election of Governance Committee Chairperson B. Recommendation to IURA on Election of Governance Committee Chairperson
Cummings announced that she no longer sits on the IURA Board. The committee will now
need to select another of its members for the position. She suggested the Governance
Committee Chairperson be an IURA Board member.
Cummings announced that she no longer sits on the IURA Board. The committee will now
need to select another of its members for the position. She suggested the Governance
Committee Chairperson be an IURA Board member.
IURA Governance Committee
7/20/12 Minutes
Page 2 of 7
Moved by Schlather, seconded by Cummings:
Appointment of Eric Rosario as Chairperson of IURA Governance Committee
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, Kathy Schlather was elected as Vice‐Chairperson of the Governance
Committee, and
Whereas, on June 28, 2012 the IURA appointed Susan Cummings to serve as
Chairperson of the Governance Committee, and
Whereas, due to a subsequent change in membership of the IURA, neither the Vice‐
Chairperson nor the Chairperson is an Agency member, creating a conflict with the
IURA bylaws, and
Whereas, Eric Rosario is the only Agency member currently serving on the Governance
Committee, and
Whereas, Susan Cummings supports the appointment of Eric Rosario as Chairperson
of the IURA Governance Committee, and
Whereas, at their July 20, 2012 meeting, the IURA Governance Committee considered
this matter; now, therefore, be it
RESOLVED, that the IURA Governance Committee hereby recommends that Eric
Rosario replace Susan Cummings as Chairperson of the IURA Governance Committee.
Carried Unanimously 3‐0
IURA Governance Committee
7/20/12 Minutes
Page 3 of 7
C. Solicit Proposals for Redevelopment of Property at 402 S. Cayuga Street
Cummings noted that the 402 S. Cayuga Street property is already currently being
incorporated into an RFP being developed by the Neighborhood Investment Committee
(NIC), so the Governance Committee does not need to approve a separate resolution to
authorize this property for disposition. (She also observed that the prior use of this site
as a fire‐damaged rental property could make a redevelopment project eligible for
funding through the Neighborhood Housing Initiative NHI bond program.)
Bohn remarked that language of the RFP could certainly be written to state that a home
ownership project could be eligible for NHI funding assistance, in addition to other
resources. HOME funding, for example, could be used for any affordable housing
project.
A. HUD Correspondence
Cummings observed that the IURA has inadvertently been swept up in the HUD
investigation of the Buffalo Urban Renewal Agency’s operations, when HUD decided
that the City of Buffalo must have direct control over that city’s CDBG and HOME grant
accounts, and not its urban renewal agency. It appears that they are generalizing the
City of Buffalo remedy to all other communities that utilize their urban renewal agencies
to administer their HUD grants.
Committee members then proceeded to discuss a variety of possible responses to the
7/2/12 HUD‐Buffalo letter addressed to Mayor Myrick. It was agreed that further
discussion and consultation with the Mayor and IURA consultants would need to take
place before finalizing the language of the IURA/City response. Bohn added that he
would keep committee members informed in the process of developing a response.
D. Recommendation to Common Council Regarding Eligibility for Installment
Payment Plan of Delinquent Property Taxes
Cummings indicated that this discussion was prompted by the growing realization that
too many city properties are simply sitting idle and neglected, while remaining
significantly delinquent on their property taxes. It has been suggested these kinds of
properties should no longer be eligible for the City’s delinquent property tax installment
payment plan.
Schlather asked if a property owner who has a condemned property, but also owns
other properties, would be eligible for the payment plan for their non‐condemned
properties. Bohn replied, no, not as the proposed resolution is written: the property
owner would not be eligible for the installment payment plan.
IURA Governance Committee
7/20/12 Minutes
Page 4 of 7
Several committee members suggested it would be more equitable to prohibit a
condemned property from being eligible for an installment plan, rather than the
property owner.
Schlather asked what “principal structure” refers to in the resolution. Cummings
responded that section was intended to indicate that the conditions of smaller
structures, like outhouses, sheds, or garages, would not prohibit a property from being
eligible for the payment plan. Cornish observed that the City employs the term
“primary structure,” which is probably the term the IURA should use.
Cummings added that, if the word “condemned” does not appear in the City Code, the
committee may want to clarify or eliminate its own use of the term, in the resolution.
Modifications were made to the language of the resolution.
Rosario observed the proposed resolution should probably be reviewed by the Building
Department and City Attorney, before being finalized.
Cummings remarked it would be fine with her if the resolution were to go straight to the
IURA, once it had been reviewed by the Building Department and City Attorney, in order
to expedite the process. She added that she believes the fault for delinquency on taxes
should only ever be associated with the building in question, and not the owner.
Rosario agreed.
Bohn remarked that historically, it appears that not every unsafe and dangerous
building has been formally cited and posted by the Building Commissioner as the City
was reluctant to follow the letter of the Code and correct the safety violation itself when
the property owner did not correct the violation in a timely manner. The Code directs
the Superintendent of Public Works to implement the Building Commissioner’s directed
remedy to correct unsafe and dangerous buildings when the property owner fails to
remedy the problem on a timely basis, but in recent years there has been no budget
authority for the Superintendent to implement a remedy, so posting a building as unsafe
has not necessarily resulted in correction of the violation. State law will require that the
process be uniform and equitable as it relates to eligibility for payment installment
plans, so it will be important for the Building Department to treat unsafe and dangerous
buildings uniformly.
After further discussion, it was agreed to review the proposed resolution once again, at
the next committee meeting.
IURA Governance Committee
7/20/12 Minutes
Page 5 of 7
E. Review of IURA Financials, June 2012
Bohn briefly walked through the monthly IURA financial summary. He indicated that the
spend‐down ratio on CDBG funds is well below the mandated level and deadlines for HOME
expenditures are on target.
Cummings asked if the IURA financial summary is distributed to any other parties, to
which Bohn replied, no. Cummings suggested regularly sharing it with Common Council
and HUD. Kittel replied she would take responsibility for disseminating it and also
highlight any items of particular note. Bohn noted that HUD receives reports through
the Integrated Disbursement and Information System (IDIS) on use of CDBG and HOME
funds.
Cummings observed that only one of the newly constructed 528‐530 Chestnut Street
units has been purchased; she asked how this would affect the timeline with respect to
the new HOME requirements.
Bohn replied that the new 6‐month requirement to sell homeowner units upon
completion only applies to FY 2012 projects, although some current timeline restrictions
are associated with the project. He noted that INHS is very confident it has two firm
buyers for two of the other units. At this point 2 of the 4 homeownership units are
under contract for sale.
Bohn remarked that he asked INHS about the anticipated closure timeline for the
project. It indicated it is confident it can line up all the buyers by Fall 2012.
VI. Old Business
A. Neighborhood Housing Initiative Bond Issuance Schedule
Cumming asked if the Neighborhood Housing Initiative bond issuance schedule had
gone to Common Council yet. Bohn replied that the intent is to have it go before the
Planning and Economic Development Committee meeting in September 2012. INHS has
indicated that schedule should be acceptable to seek funding for affordable
homeownership projects at S. Plain Street and Hawthorne Circle that were not included
in the FY12 Action Plan.
IURA Governance Committee
7/20/12 Minutes
Page 6 of 7
B. Update on City Financial Audit Schedule
Bohn reported that the auditors have completed the IURA portion of their audit. They
did not identify any concerns. The City and their auditor have stated that their goal is to
have the City’s FY11 financial audit completed in time for the HUD deadline (September
30, 2012).
C. HUD FY2012 Monitoring: July 11‐12, 2012
Bohn reported that the HUD monitor had completed his Ithaca site visit and appeared
satisfied with the results of his field work and review of IURA files. Programs monitored
included:
• CDBG public services (2‐1‐1 & immigrant services)
• HOME overall management systems
• HOME tenant‐based rental assistance (security deposits)
VII. Staff Report
A. HOME 2012 New Statutory Requirements
Bohn noted that Congress is currently in the process of adopting the FY 2012 budget,
which contains some elements of a proposed HUD rule change for FY 2012. One of the
principal changes requires that, for projects using HOME funds for home resales, the
house has to be sold within 6 months or rented out. Other proposed changes include:
• Four‐year project completion deadline
• Stringent on‐staff development capacity requirements for CHDO designation
• Assessment of project underwriting, developer capacity and market need
B. Project Updates
Emerson
Bohn noted that a prospective agreement with a private developer appears to be closer
to actualization. The anticipated signed agreement would most likely give the
prospective developer a 12‐month option to acquire the property at an agreed‐upon
price. The time period would likely be used by the prospective purchaser to complete
due diligence, secure zoning and site plan approvals and line up financing for
redevelopment.
Cornish added that the City has been having numerous conversations with the Town,
regarding how to work together to obtain the maximum usage of the property.
IURA Governance Committee
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Page 7 of 7
Cayuga Place II (Cayuga Place Residences)
Bohn indicated that the project will now comprise 39 loft‐style residential rental units,
measuring about 64 feet in height for the 4 story building. The developer has indicated
he has received an acceptable financing offer from a regional lender and he believes the
project will move forward as planned.
Hotel Ithaca (Marriott)
Cornish noted that the Hotel Ithaca project appears to be moving forward once again,
under the Marriott name. Submission of a revised site plan is anticipated shortly.
$4.5M Federal Transit Administration (FTA) Grant
The County was recently awarded a $4.5M FTA “State of Good Repair” grant for
development of a downtown transportation hub, which may possibly include significant
funding support for the Ithaca Commons Repair and Upgrade project.
VIII. Other Business
A. Next Meeting: August 17, 2012 [subsequently canceled]
B. Other
(None.)
IX. Adjournment — Adjourned by consensus at 10:39 a.m.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.