HomeMy WebLinkAboutMN-IURANI_2010-10-08Approved 11/19/10
108 East Green Street
Ithaca, New York 14850
(607) 274-6559
Minutes
Neighborhood Investment Committee
3rd Floor Conference Room, City Hall
8:30 a.m., October 8, 2010
Present: Tracy Farrell, Susan Cummings, Teresa Halpert and Fernando de Aragón (9:45 a.m.)
Staff: JoAnn Cornish, Sue Kittel, Alice Vargo
I. Call to Order
The meeting was called to order by Chairperson Farrell at 8:40 a.m.
II Additions to or deletions from the agenda - None
III. Public comment - None
IV. Approval of meeting minutes: September 24, 2010
The minutes of September 24, 2010 were approved with corrections.
Motion by Halpert, second by Farrell, unanimous
V. New Business
A. Reallocation of funds 2009 #4 - 421 Second Street - Resolution
There was a discussion on 421 Second Street, while the Committee recognizes the successful
projects CHI has undertaken, they have all been protracted events requiring a lot of board and
staff time to move the projects along. HUD has concerns about conflict of interest and
structure of the committees and board; some of these issues are still outstanding. Staff has
notified CHI of this resolution.
Motion by Cummings, second by Halpert
Reprogramming of 2009 # 4 funds- 421 Second Street
Whereas, at the monitoring visit by officials from the U.S. Department of Housing and Urban
Development in July of 2009 certain concerns regarding the operations of Community Housing of
Ithaca, Inc (CHI) were identified, and
Whereas, HUD staff made recommendations at that time about steps which could be taken to ensure
CHI’s compliance with all HUD regulations and ongoing success of the organization, and
Whereas, the Ithaca Urban Renewal Agency (IURA) directed staff to work with the IURA attorney to
develop a plan for addressing the concerns raised, and
Whereas, on October 13, 2009, a letter was issued to Community Housing of Ithaca outlining initial
steps the organization needed to take to address the issues, and
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Whereas, that letter stipulated that the IURA “will not provide any further funding for CHI projects,
including the 421 Second Street renovation project (2009 HOME)” until the requirements set forth in
the letter had been met, and
Whereas, based on the lack of a sufficient response by CHI, the IURA passed a resolution on January
28, 2010, putting the project funds on hold until the IURA attorney and HUD were satisfied that a fully
functioning not for profit organization was in place to implement and oversee the project, and
Whereas, Community Housing of Ithaca was notified of this action by the Agency on February 1, 2010
and supplied with a copy of the resolution and a letter signed by Chairperson Peterson, and
Whereas, on February 17, 2010 a packet of materials was submitted by CHI discussing the relevant
issues and partially addressing the concerns, and
Whereas, in response to this lack of a complete and satisfactory response to the issues, a meeting was
held on April 28, 2010 between IURA staff, consultant Harry Sicherman, IURA Attorney Mariette
Geldenhuys and CHI board member Chuck Guttman to discuss steps to be taken to resolve the conflict
of interest and not-for-profit status issues identified by HUD as a concern, and CHI members agreed to
take the necessary corrective steps, and
Whereas, no further progress was made after this meeting, a letter was issued on August 13, 2010
listing seven requirements necessary to satisfy the stipulations in the January 28, 2010 resolution and
Whereas, on September 10, 2010, materials were received from CHI discussing the issues at hand and
noting that there had not been an official meeting of the Board since their February 17, 2010 meeting,
and
Whereas, most of the necessary actions require action of the CHI Board, and
Whereas, the CHI Board met on June 8, 2010 but no quorum was present, no action was taken and the
meeting consisted primarily of reports from the three board members present, two of whom are CHI’s
attorney and his law partner, and
Whereas, CHI met on September 28, 2010 and provided minutes to the IURA, but the minutes are
virtually identical to the minutes submitted for the June 8, 2010 board meeting causing the IURA to be
concerned that there is no active participation by and discussion among board members at the board
meetings, and
Whereas, the board met only three times in 2009, and twice in 2010 (once without a quorum), which
casts doubt on the level of control and oversight the board exercises over the operations and assets of
the corporation, and
Whereas, the documentation submitted by CHI purports to address the list of items provided by the
IURA, but the IURA has concluded that CHI is not a well-functioning not-for-profit corporation,
managed and overseen by the active participation of a viable board of directors; and
Whereas, this issue was discussed at the NI Committee meeting on September 24, 2010, and
Whereas, the direction of the NI committee is to reallocate the 2010 # 4 HOME funds totaling $38,425
and make it available for the 2011 Grant cycle, and
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October 8, 2010
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Whereas, it was noted at the NI committee that there are many indicators that a viable not-for-profit
housing organization is not emerging from the current organization of CHI, that the budget for the
2009 project is now 2 years old and that the house on1 421 Second Street was occupied and is not
impacting the neighborhood, and
Whereas, should CHI satisfy all the requirements in the August 13, 2010 letter it could apply for the
funds in the 2011 Grant round for that same project or another, just as any community based entity
could, and
Whereas, the status of Community Housing of Ithaca and the recommendation to reallocate the 2009
funds was reviewed at the October 8, 2010 Neighborhood Investment Committee meeting and
reaffirmed at that time, now therefore be it
Resolved, that the IURA finds that the issues identified in the 10/13/09 letter have not been
satisfactorily resolved, and be it further
Resolved, that the $38,425.00 of HOME funds allocated for project # 4 of the 2009 Action Plan will no
longer be available for this project and these funds will be made available for appropriate projects in
the 2011 Grant process
Approved Unanimously 4-0
B. Reallocation of funds 2010 #8 - Rte 13 Pedestrian Crossings - Resolution
This project will not be ready this year; and they can reapply for 2011 money. There have been delays
and problems getting the Rail Road to cooperate with access and right away. Kittel reported that Tim
Logue stated the communication with the Rail Road was moving along, but very slowly. Once the
design is complete there will be a lengthy land acquisition process before the construction can
begin in late 2011.
Motion by Cummings, second by Halpert
Reallocation of funds from CDBG 2010 #8 - Rte 13 Pedestrian Crossings
Whereas, CDBG funds of $145,300 were allocated for the Rte 13 Pedestrian Crossings
project (2010 #8), and
Whereas, the funds for this project have not been used due to delays, and will not be used
in 2011, and
Whereas, the Neighborhoods Investment Committee reviewed this matter at their
October 8, 2010 meeting and recommended the following; now, therefore, be it
RESOLVED, that funding for the Rte. 13 Pedestrian Crossings (2010 #8,) be reallocated to a new
project as a part of the 2011 grant process.
Approved 3-0
de Aragón abstained from voting due to a perceived conflict of interest as he works for Ithaca-
Tompkins Transportation Council, which received funding from NYDOT.
C. Reallocation of funds 2010 #3 - 100 W. Seneca Street - Resolution
Paul Mazarella has been invited to come to the November NI committee to update them on 100 W.
Seneca Street this. This project will be resubmitted in February of 2011 with a new project design and
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financial plan. This Agency has requested this resolution be revised to include more information and
how funds will be allocated. Cornish suggested going back to the original plan of L/M housing -
mixed use. Other sources of funding could be found easier with a building with mixed use.
Motion by Cummings, seconded by de Aragón
Reallocation of funds from HOME 2010 #3 - 100 W. Seneca Street
Whereas, HOME funds have been allocated for the 100 W. Seneca Street project (2010
#3), and
Whereas, the 100 W. Seneca Street project (2010 #3) cannot be implemented because it was
not awarded the necessary tax credit to fully fund the project, and
Whereas, the Neighborhoods Investment Committee reviewed this matter at their
October 8, 2010 meeting and recommended the following; now, therefore, be it
RESOLVED, that funding for the 100 W. Seneca Street project (2010 #3) be reallocated to a new
project as a part of the 2011 grant process.
Approved Unanimously 4-0
D. Other
There was a brief discussion on small shelters for TCAT. It was requested that this item be put
on next month’s agenda.
Kittel left at 10:15
VI. Old Business A. Possible update Ithaca Neighborhood Housing - 100 W. Seneca Street Project
B. Other
VII. Staff Report
A. Other
VIII. Next Meeting Date - November 12, 2010
IX. Motion to Adjourn
The meeting was adjourned at 10:20 a.m.
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