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Home My WebLink AboutMN-IURAGOV-2012-11-16Ithaca Urban Renewal Agency Adopted 12/14/12 108 East Green Street Ithaca, New York 14850 (607) 274-6559 6559 MINUTES MINUTES IURA Governance Committee IURA Governance Committee 8:30 AM, Friday, November 16, 2012 8:30 AM, Friday, November 16, 2012 3rd Floor Conference Room, City Hall 3rd Floor Conference Room, City Hall Present: Chairperson Eric Rosario, Susan Cummings, David Whitmore, Kathy Schlather Present: Chairperson Eric Rosario, Susan Cummings, David Whitmore, Kathy Schlather Absent: Jim Dennis Absent: Jim Dennis Staff: Nels Bohn, JoAnn Cornish, Charles Pyott Staff: Nels Bohn, JoAnn Cornish, Charles Pyott Guests: None. Guests: None. Public: None. Public: None. I. Call to Order I. Call to Order The meeting was called to order by Chairperson Rosario at 8:43 a.m. The meeting was called to order by Chairperson Rosario at 8:43 a.m. II. Agenda Additions/Deletions II. Agenda Additions/Deletions Cummings asked that part of the staff report include an overview of any projects being proposed around the city. No objections were raised. Cummings asked that part of the staff report include an overview of any projects being proposed around the city. No objections were raised. III. Public Comments ― None III. Public Comments ― None IV. Approval of Meeting Minutes: October 19, 2012 IV. Approval of Meeting Minutes: October 19, 2012 Cummings moved, seconded by Schlather, to approve the October 19, 2012 minutes, with 3 minor modifications. Carried Unanimously. Cummings moved, seconded by Schlather, to approve the October 19, 2012 minutes, with 3 minor modifications. Carried Unanimously. V. New Business V. New Business A. Draft City/IURA Agreement Clarifying Roles & Responsibilities for Administration of HUD Entitlement Grants A. Draft City/IURA Agreement Clarifying Roles & Responsibilities for Administration of HUD Entitlement Grants Bohn remarked that the 8/27/12 HUD letter that froze 2012 IURA funds also asked for a sub‐recipient agreement between the City and the IURA. One concern associated with this is that sub‐recipients cannot perform environmental reviews. Another problem with the kind of sub‐recipient agreement HUD was asking for is that the IURA really needs to be able to manage its own program income, without requiring Common Council approval for every action. Bohn remarked that the 8/27/12 HUD letter that froze 2012 IURA funds also asked for a sub‐recipient agreement between the City and the IURA. One concern associated with this is that sub‐recipients cannot perform environmental reviews. Another problem with the kind of sub‐recipient agreement HUD was asking for is that the IURA really needs to be able to manage its own program income, without requiring Common Council approval for every action. IURA Governance Committee 11/16/12 Minutes Page 2 of 7 To respond to some these concerns, Bohn noted, IURA consultant Harry Sicherman drafted the “Agreement Governing Administration of HUD Entitlement Funds Awarded to City of Ithaca,” in an effort to make the agreement as clear and detailed as possible. Cummings noted her primary concern is to insulate the IURA from potential political pressure; so she would prefer to see less restrictive language in the agreement. She would not want to see, for example, a newly elected Mayor come in and decide to completely reconfigure the IURA. Committee members reviewed the document. Bohn stressed the agreement only discusses the handling of new funds awarded to the City of Ithaca through HOME and CDBG funding. Cummings asked how the new arrangement would affect Ithaca Neighborhood Housing Services (INHS) revolving loan funds. Bohn replied he is not entirely sure, although the IURA does not have direct control over those funds in the first place. The IURA may want to see that those are covered in the document. That issue would seem to be covered in Section 11 (“Program Income”), but Sicherman should probably take another look at that section. Bohn remarked that the most significant legal question raised by Sicherman involves Section 8 (“Environmental Review”). In practice, the IURA already performs the entire environmental review process. While the document does permit the City to delegate the environmental review process, it allows the City to retain the ultimate authority to designate the certifying environmental review officer. Cummings asked how the agreement can be terminated. Bohn replied that the City can essentially terminate it at any time without cause, with 120 days’ notice. This could conceivably be a concern, should the City decide to terminate the agreement. Cummings remarked she thinks the City should only be permitted to terminate the agreement with cause. Whitmore disagreed, noting it is the responsibility of elected officials to do what they believe is best for their constituents. He cannot see why the City should not be able to terminate the agreement without cause, if that is what it genuinely believes needs to be done. IURA Governance Committee 11/16/12 Minutes Page 3 of 7 Cornish observed that terminating the agreement is not something a future Mayor could simply unilaterally decide to do ― it would still require a vote of Common Council. Bohn proposed the agreement include an explicit reference to Common Council in Section 12.3. Cummings replied that she would agree to that; the “City” should be defined as actions of Common Council. The committee made modifications to the language of the agreement. Rosario remarked that the committee should be provided the opportunity to review the newly modified document, before IURA consultant Sicherman and legal counsel Geldenhuys review it one more time. Moved by Schlather, seconded by Whitmore: City‐IURA Agreement Governing Administration of HUD Entitlement Funds Awarded to City of Ithaca WHEREAS, on August 27, 2012, the U.S. Department of Housing & Urban Development requested an agreement be executed between the City and IURA to clarify roles and responsibilities for administering Community Planning and Development (CPD) Formula Grants awarded to the City, including CDBG and HOME grants, and WHEREAS, HUD correspondence clarified that the request for an agreement between the City and the IURA does not result from any performance deficiency, and WHEREAS, HUD has requested receipt of such agreement by December 31, 2012, and WHEREAS, the IURA Governance Committee considered this matter at their November 16, 2012 meeting and recommended adoption of a revised Agreement as amended by the Committee and incorporating recommendations by the IURA’s community development consultant, Harry Sicherman and legal counsel provided such changes are non‐substantive or enhance protection of the IURA; now, therefore, be it IURA Governance Committee 11/16/12 Minutes Page 4 of 7 RESOLVED, that the IURA hereby authorizes the IURA Chairperson, subject to review by IURA legal counsel, to execute the attached Agreement Governing Administration of HUD Entitlement Funds Awarded to City of Ithaca, dated 11/21/12. Carried Unanimously 4‐0 B. Election to Fill Vacant Position of IURA Vice‐Chairperson Moved by Cummings, seconded by Schlather: 2012 Election of IURA Vice‐Chairperson WHEREAS, the position of IURA Vice‐Chairperson is vacant due to a change in IURA membership, and WHEREAS, in the absence of the Chairperson the Vice‐Chairperson assumes the duties of the Chairperson, including the signing of all contracts as authorized by the IURA, and WHEREAS, the IURA Governance Committee considered this matter at their November 16, 2012 meeting and recommends the nomination of ERIC ROSARIO for IURA Vice‐Chairperson, and WHEREAS, ____________________ nominated ____________________ for IURA Vice‐Chairperson; now, therefore, be it RESOLVED, that the IURA hereby elects ___________________ as Vice‐Chairperson of the IURA. Carried Unanimously 4‐0 Rosario remarked that Tracy Farrell has also been a long‐serving member of the IURA, so he will plan on asking her whether she may also be interested in serving as Vice‐ Chairperson. IURA Governance Committee 11/16/12 Minutes Page 5 of 7 VI. Old/Other Business A. Review of IURA Financials, October 2012 Bohn noted the 2012 HUD funding awards are not reflected in the financials report, but the IURA has finally been given access to them, so they will appear in next month’s report. Bohn remarked that the four new Chestnut Street houses have all finally found buyers. Cummings inquired into the identity of the buyers. Bohn replied that would be known at closing. Cummings remarked she is concerned there may be people in the community who are not being reached by these kinds of projects. She suggested the subject be discussed at the next IURA meeting. Rosario proposed inviting INHS Executive Director Paul Mazzarella to discuss the issue at the next Neighborhood Investment Committee (NIC) meeting; and Rosario himself would plan on bringing the subject up at the next IURA meeting. (Whitmore departed at 10:05 a.m.) Bohn noted that Diane’s Downtown Auto is now current, although she appears to be behind on her property taxes. Bohn noted the State Theatre and the Bandwagon Brew Pub are both behind on their repayments; however, they both believe themselves current. IURA staff is checking with M&T Bank to determine the status of their accounts. B. City 2011 Financial Audit Schedule Bohn noted that the HUD audit deadline was September 20, 2012; however, the Controller’s Office did not have the time to complete it by the deadline. The Controller has indicated the audit should be completed by the end of November 2012, which would mean it would most likely not receive Common Council approval until January 2013. Cummings suggested IURA Accountant Jill Sage be brought in to help facilitate the process. IURA Governance Committee 11/16/12 Minutes Page 6 of 7 Cornish proposed asking Controller Steve Thayer to appear before the committee to help explain the entire process. C. HUD Correspondence Bohn reported that IURA staff has asked HUD for an extension of the deadline for the IURA 2013 Action Plan, which HUD agreed to. D. Strategic Planning In Response to Future Reduced Federal Funding of Domestic Discretionary Programs Rosario remarked that the committee still needs the list of potential funding opportunities that was mentioned at the last meeting. As a result, further discussion of the subject should probably be deferred until the next meeting, when committee members have reviewed the list. Bohn announced the City is hiring a Washington, D.C. grant consultant, Sustainable Strategies DC, which was instrumental in helping the City win the $4M Federal Transit Administration (FTA) grant for the work on the Commons. Sustainable Strategies DC will help the City explore other potential funding opportunities. Cummings remarked that one subject she would like to revisit is how the City handles its seized drug assets. Those assets should not only be reserved for use by the Police Department. Cornish replied that conversation did not take place in recent budget discussions; however, it could certainly be brought up with the Mayor. VII. Other Business A. Staff Report Bohn noted that Common Council approved the EPA brownfield grant application, as well as the use of Gateway funds for the former Masonic Lodge and State Theatre project. Bohn remarked that the City delinquent property tax installment plan issue would be discussed at the upcoming City Administration Committee meeting. Cornish noted that the Comprehensive Plan process continues to move forward. With the Vision statement drafted, the committee is now working on establishing focus groups for the different sections of the plan. IURA Governance Committee 11/16/12 Minutes Page 7 of 7 Bohn reported that Common Council adopted the revised Community Investment Incentive Program (CIIP), now called the Community Investment Incentive Tax Abatement Program (CIITAP), and the Industrial Development Agency also adopted it. B. Next Meeting: December 21, 2012 [subsequently rescheduled for 12/14/12] VIII. Adjournment — Adjourned by consensus at 10:48 a.m. — END — Minutes prepared by C. Pyott, edited by N. Bohn.