HomeMy WebLinkAboutMN-IURAGOV-2013-06-21Ithaca
Urban
Renewal
Agency
Adopted: 8/16/13
108 East Green Street
Ithaca, New York 14850
(607) 274-6559 6559
MINUTES MINUTES
IURA Governance Committee IURA Governance Committee
8:30 AM, Friday, June 21, 2013 8:30 AM, Friday, June 21, 2013
3rd Floor Conference Room, City Hall 3rd Floor Conference Room, City Hall
Present: Chairperson Eric Rosario, Susan Cummings, Kathy Schlather, David Whitmore Present: Chairperson Eric Rosario, Susan Cummings, Kathy Schlather, David Whitmore
Excused: Jim Dennis Excused: 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
Chairperson Rosario called the meeting to order at 8:41 a.m. Chairperson Rosario called the meeting to order at 8:41 a.m.
II. Agenda Additions/Deletions II. Agenda Additions/Deletions
None. None.
III. Public Comments ― None III. Public Comments ― None
IV. Approval of Meeting Minutes: April 25, 2013 IV. Approval of Meeting Minutes: April 25, 2013
Cummings moved, seconded by Schlather, to approve the April 25, 2013 minutes, with
no modifications. Carried Unanimously.
Cummings moved, seconded by Schlather, to approve the April 25, 2013 minutes, with
no modifications. Carried Unanimously.
Cummings remarked that one subject discussed at the April 2013 meeting was the need
for a change‐of‐address for 245 and 247 Cherry Street (Perfect Screen Printers and
Moro Design). She knows spare street numbers are available, but nothing has been
done about the situation yet, to her knowledge. Without a change‐of‐address, chaos
will undoubtedly ensue at some point regarding the numbers.
Cummings remarked that one subject discussed at the April 2013 meeting was the need
for a change‐of‐address for 245 and 247 Cherry Street (Perfect Screen Printers and
Moro Design). She knows spare street numbers are available, but nothing has been
done about the situation yet, to her knowledge. Without a change‐of‐address, chaos
will undoubtedly ensue at some point regarding the numbers.
Cornish replied she would follow up with the appropriate City staff about the subject. Cornish replied she would follow up with the appropriate City staff about the subject.
V. New Business V. New Business
A. HUD Entitlement Program ― Program Amendment #1 to 2013 Action Plan A. HUD Entitlement Program ― Program Amendment #1 to 2013 Action Plan
Rosario reported that HUD granted the IURA more funds than originally anticipated (just
over $90,000), so the “IURA Administration” ratios need to be changed.
Rosario reported that HUD granted the IURA more funds than originally anticipated (just
over $90,000), so the “IURA Administration” ratios need to be changed.
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Cummings indicated that the reason for the modification should be explained in the fifth
“Whereas.”
Bohn added this would likely only be a one‐time situation. HUD simply allocated funds
that were not ultimately spent, so they were added back to the funding for the year. A
Census‐related adjustment for Ithaca also affected the IURA’s allocation. In short, IURA
ended up with +1.8% CDBG funds and +4% HOME funds.
Moved by Schlather, seconded by Whitmore, as amended:
Program Amendment to FY 2013 Action Plan – Correct Administration Funding
WHEREAS, the IURA developed a FY13 Action Plan based on projected funding
awards, and
WHEREAS, the FY13 Action Plan includes funding for “IURA Administration” based on
a standard percentage of the projected HUD Entitlement grant award, and
WHEREAS to access to HUD funds the IURA must first set up each project listed in the
Action Plan, including IURA Administration, in HUD’s Integrated Disbursement and
Information System (IDIS) at the funding level listed in the approved Action Plan, and
WHEREAS, on May 30, 2013 the US Department of Housing & Urban Development
announced a HUD Entitlement grant award to the City of Ithaca that exceeded the
projected funding amount, an
WHEREAS, the amount of funding for IURA Administration contained in the adopted
Action Plan is incorrect and should be increased by $16,296.80 to comply with the
standard HUD formulas for determining funding for administration, and
WHEREAS, the IURA is authorized pursuant to the City of Ithaca Citizen Participation
Plan to approve a non‐substantial program amendment to the Action Plan, and
WHEREAS, a change in funding of $25,000 or less to a project contained in the Action
Plan is listed as a non‐substantial program amendment in the Citizen Participation
Plan, and
WHEREAS, at their June 21, 2013 meeting the Governance Committee reviewed this
matter and recommends the following; now, therefore, be it
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RESOLVED, that the IURA hereby amends the FY13 Action Plan to correct the funding
levels awarded for IURA Administration to reflect the actual grant award as follows:
• $143,186.00 CDBG Administration (20% of award)
• $46,524.10 HOME Administration (10% of award), and be it further
RESOLVED, that IURA staff notify Common Council of this program amendment.
Carried Unanimously 4‐0
B. Modification to Payment‐in‐Lieu‐of‐Taxes (PILOT) Agreement ― 401‐403 Adams
Street
Rosario indicated that several years ago the IURA provided appr. $200,000 to
Community Housing Initiatives, Inc. (CHI) for two duplexes on Adams Street. At the time
in 2005, the IURA had been concerned with the negative impact of removing those
properties from the tax rolls, so the IURA entered into to a PILOT agreement with CHI.
The IURA originally estimated the project would generate $5,400 a year in PILOT
revenue; however, over the past few years it has apparently become increasingly
difficult for CHI to calculate what the annual payments should be. Less than what was
projected was received for 2009‐10, while nothing at all was received in 2011‐12. As a
result, the proposed modification to the original agreement was conceived to address
the issue. Under the proposed new arrangement, the PILOT agreement would only go
into effect if/when the properties are not on the tax rolls.
Whitmore asked what would happen with the lost payments. Bohn explained that CHI
did not make a profit on the properties, through 2008, so did not owe anything; and the
resolution would not go into effect until the 2011‐12 payments have been paid.
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Cummings suggested asking IURA counsel to determine whether the PILOT agreement
should include a clause that indicates that the modification does not represent an
annulment of the original agreement, just to be explicitly clear.
Cummings asked if the fourth unit was being rented at market rate. Bohn replied, yes,
the agreement was based upon that assumption. Cummings asked if CHI would be likely
to claim to the County Assessment Office that it has a total of four affordable units.
Bohn replied, probably.
Cummings asked if the administration of the PILOT agreement had been genuinely
burdensome to both the IURA and CHI, as suggested in the text of the resolution (“[…]
administration of the PILOT has been administratively burdensome to both the IURA
and CHI […]”). If not, she would propose striking the word “both” from the resolution
and adjusting the language accordingly. There were no objections.
Cummings remarked it is unfortunate the PILOT agreement did not succeed. It would
have been such a good model for other projects.
Rosario asked if it was an organizational capacity issue for CHI. Bohn replied, that seems
likely, since they only have rudimentary administrative support staff, and no bookkeeper
or accountant.
Moved by Cummings, seconded by Whitmore, as amended:
Modification to PILOT Agreement Covering
Adams Street Housing (Project #4, 2005 HOME)
WHEREAS, on May 31, 2013, Community Housing of Ithaca, Inc. (CHI) requested
termination of the Payment in Lieu of Taxes (PILOT) agreement with IURA covering
their Adams Street properties in consideration for CHI withdrawing their tax exempt
status on the property, and
WHEREAS, in 2005 the IURA provided $180,000 in financial assistance to CHI
(formerly known as Ithaca Homeless Support Network, Inc.) for the construction of
two duplexes at 401‐403 W. Adams Street containing a total of four 3‐bedroom rental
housing units of which three units were required to be affordable and one unit
programmed to be market rate, and
WHEREAS, due to concern about the project’s potential adverse impact on property
tax revenues, the IURA required as a condition of financial assistance that CHI enter
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into a PILOT agreement to annually make a payment to the City equal to 90% of the
net operating income generated by the project, and
WHEREAS, the PILOT payment due was estimated at $5,400 per year, and
WHEREAS, CHI has been slow to produce required income and expense information
to timely calculate PILOT payments due, and
WHEREAS, PILOT payments collected due for 2009 and 2010 tax years were
$1,055.60 and $2,346.48, respectively, and
WHEREAS, administration of the PILOT has been administratively burdensome to the
IURA due to CHI’s difficulty in processing and providing financial documentation in a
timely fashion, and
WHEREAS, since execution of the PILOT, Real Property Tax Law 581‐a was established
providing for real property taxation of certain affordable housing properties based on
their actual net operating income rather than based the value on highest and best
use for market‐rate housing, and
WHEREAS, at their June 21, 2013 meeting, the IURA Governance Committee
considered this matter and recommended the following; now, therefore, be it
RESOLVED, that the IURA hereby authorizes the IURA Chairperson, subject to review
by IURA legal counsel, to execute a modification to the PILOT agreement with CHI for
property located at 401‐403 Adams Street property to eliminate PILOT payments due
for each tax year the property is in taxable status on the applicable tax status date
(March 1st), and be it further
RESOLVED, that such modification shall not take effect until CHI is current on PILOT
payments due.
Carried Unanimously 4‐0
C. 2013 Amendments to IURA Human Resource Policies
Bohn explained that the proposed changes to IURA’s Human Resource Policies include
an addition of some language for same‐sex marriage benefits, as well as the adoption of
a flexible benefits plan, the elimination of the step salary increase, and the increased
20% employee health insurance contribution.
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Cummings remarked it is regrettable there are no accompanying Federal tax benefits or
Medicare/Social Security benefits, etc., for the same‐sex marriage benefits. She
suggested the IURA consider issuing a formal statement of concern on the subject
(although she does not know what the most appropriate forum would be).
Cummings asked what would happen if someone were not working for more than three
months in a medical leave of absence. Three months seems such a short amount of
time for many medical conditions.
Whitmore remarked the issue really revolves around short‐term disability vs. long‐term
disability. If someone is incapacitated for more than three months, she or he would
simply transition into a long‐term disability status (which the IURA does pay for).
Bohn remarked that IURA Accountant Jill Sage substantiated the suggested
modifications to the Human Resource Policies very thoroughly; however, changes to
that particular portion could be deferred, if there is consensus to do so, until the
Committee feels more comfortable with them.
Cummings asked Schlather how well the Health Savings Account (HSA) program had
been working for the Tompkins County Human Services Coalition (HSC). Schlather
replied that all HSC staff with health benefits receives an HSA. For IURA, however, it
does not seem feasible to offer a minimum HSA benefit, having only a handful of
employees. For HSC, it costs approximately $6,000‐$7,000/year/employee, with a
$2,600 deductible.
Cummings observed that would still be considerably less than IURA currently spends. It
would be helpful to see the figures side‐by‐side.
Bohn noted that Blue Cross/Blue Shield indicated it could walk through the features of
its own HSA with IURA staff. Bohn noted that IURA staff’s principal concern with an HSA
program is that there would be a cap on benefits. Schlather responded that had never
been HSC’s understanding of how it works. Bohn noted more information would
certainly be helpful.
Schlather asked why there were so many different IURA staff‐type classifications (e.g.,
part‐time, etc.). Bohn replied it is tied strictly to the benefits associated with each type.
For example, if someone works fewer than 17.5 hours/week, she or he would not be
eligible for certain benefits. Health benefits, for example, are only offered at 20+
hours/week. It may be that the IURA needs another category between 17.5 hours/week
and 20 hours/week.
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Moved by Whitmore, seconded by Cummings:
2013 Amendments to the IURA Human Resource Policies
WHEREAS, the IURA has adopted written policies governing human resource issues,
including employee benefits and obligations, and
WHEREAS, the IURA Human Resource Policies were last revised in 2011 and there is a
need to update the policies, and
WHEREAS, at their June 21, 2013 meeting, the IURA Governance Committee
reviewed this matter and recommended the following action; now, therefore, be it
RESOLVED, that the IURA hereby adopts the Proposed 2013 Amendments to the
IURA Human Resource Policies, dated 6/19/13, as herein attached.
Carried Unanimously 4‐0
Rosario remarked that the Committee could expect to hear from IURA Accountant Jill
Sage about the Family Medical Leave Act and from Blue Cross/Blue Shield regarding its
HSA.
VI. Old Business
None.
VII. Other Business
A. Review of IURA Financials: May 2013
Grants
Bohn noted the grants shown on the report still only list 2012 grants, since HUD has not
formally approved the 2013 Action Plan. He noted the following other points of
interest:
The spend‐down ratio is a healthy 0.91 (although this will increase, when 2013
funding is incorporated).
GIAC just received its final $400,000 payment.
There are no delays or problems associated with any contracts.
One issue arose with the Ithaca Food Works program that was to be located in the
vacant space adjoining the Neighborhood Pride grocery store. The applicant’s grant
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application to the Appalachian Regional Commission was recently denied, so it does
not have its lead grant funding commitment. Since the IURA’s own funding was
contingent on that funding, and the IURA is only committed to fund the program
through September 2013, it seems unlikely the program will move forward this year.
Cummings expressed concern with the potential negative impact of Ithaca Food Works’
failure to find funding on Neighborhood Pride, including the loss of rental income. She
asked what the IURA/City might be able to do for the store (e.g., identify potential
tenants for the space, offer technical assistance, etc.).
Cornish responded the store should hire a professional manager. Bohn suggested that
Deputy Director for Economic Development Phyllisa DeSarno could reach out to the
store and see what may be done.
(Whitmore departed at 9:51 a.m.)
Loans
Bohn noted the loans are all in good shape. He noted the following points of interest:
Diane’s Downtown Auto is moving forward to catch up on its delinquent payments,
having just made a multi‐month payment.
Argos Inn is still waiting to close on its historic tax credits and cannot open until it
has.
The State Theatre is one month behind, although seasonal cash‐flow problems are
not uncommon for it.
The Finger Lakes Wine Center is now defunct. The space, however, continues to be
considered by Tompkins‐Cortland Community College for a field‐to‐bistro project.
The IURA Economic Development Committee will address the outstanding debt to
the IURA.
Leases
Bohn reported the leases are all current.
B. IURA & Common Council Actions of Interest to Governance Committee
Bohn announced that the 2013 Action Plan was approved by Common Council. Also,
the Proposed Downtown CBD Rezoning Ordinance was adopted, allowing for increased
building heights and lot coverage.
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Cummings inquired into the status of the bond issuance. Bohn replied that the
Neighborhood Investment Committee (NIC) is looking to implement the current portion
and will be asking for a modification to the language. Bohn noted he still needs to meet
with Bond Counsel to work on the changes to Part B.
Cummings asked about the status of the tax‐delinquent properties and the payment
installment program. Bohn replied that the City Attorney has agreed to the proposed
changes and is drafting the language, which has yet to be completed.
C. Staff Report
None.
D. Next Meeting: July 19, 2013
VIII. Adjournment — Adjourned by consensus at 10:15 a.m.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.