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COMMON COUNCIL PROCEEDINGS
CITY OF ITHACA, NEW YORK
Special Meeting 7:30 P.M. May 12, 1980
PRESENT:
Mayor - Bordoni
Aldermen (8) - Boronkay, Dennis, Gutenberger, Holman, Nichols, Saccucci,
Schuler, Slattery
ABSENT:
Aldermen (2) - Banfield, Boothroyd
OTHERS PRESENT:
Ithaca Urban Renewal Agency members - Bordoni, Dennis, Stein, Jones, Reed
Assistant City Controller - Spano
City Attorney - Shapiro
Planning & Development Director - Van Cort
Acting Fire Chief - Tuckerman
Developers - Goldberg and McRobb
Architect - Leathers
Project Architect - Seligman
Planning Staff member - Bottge
City Clerk - Rundle
PLEDGE OF ALLEGIANCE:
Mayor Bordoni led all resent in the Pledge of Allegiance P g to the
� American flag.
SPECIAL ORDER OF BUSINESS:
Ithaca Center Project
ga-yorBorcioni stated that the Special meeting that evening was for a
discussion only on the final design alternatives and finances for the
Ithaca Center project. No decisions were to be made; there would be
(600e time for questions, and developers, architects, city planners, as well
as the city attorney, were present for the discussion. The Mayor turned
the meeting over to Planning Director Van Cort.
Mr. Van Cort commented that his department had been working very hard
with the developers with the help of practically everybody in City Hall,
but particularly with the Mayor and City Attorney Shapiro who have been
meeting almost daily with Planning on this project. He mentioned that
the Memorandum which was before the Council was the third or fourth draft
of the Understanding on the Ithaca Center project. However, some items
are still under negotiation; there is nothing final at this point. Mr.
Van Cort mentioned that there will be a Public Hearing on the UDAG Grant
on Tuesday, May 13, 1980, and another Special meeting of Common Council
and IURA /CDA on Wednesday, May 14, 1980. Mr. Van Cort also corrected a
prior statement that he had made with reference to a DEIS meeting being
held on Thursday, May 15, 1980. That Public Hearing on DEIS will be held
on Friday, May 16, 1980 at 4:00 P.M., at Central Fire Station.
Mr. Van Cort stated that he hoped to have the designs from Architect
Seligman's office to distribute to council members and IURA members on
Friday, May 23rd. On Wednesday, May 28th, he hopes that action will be
taken by the Agency and the Council. Alderman Holman requested that
Mr. Van Cort state what action will be taken on Wednesday, May 14th. Mr.
Van Cort said the actions to be taken are:
Coe, 1. the actual formal resolution authorizing the Mayor to submit
the UDAG application which the Council has not yet actually done.
2. approval of the terms of the UDAG payback and the UDAG reuse.
3. the land purchase agreement and the payback associated with that.
Mr. Van Cort commented that he hopes to take all the necessary informa-
tion to Washington on Thursday, May 15th, to discuss it with American
City and, subsequently, to MUD and Farmers Home Administration on Friday,
May 16th. That is why action must be taken on the 28th. The design will
he given to COUnCil before it is asked to consider giving Goldberg /McRobb
preferred developer status.
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Mr. Van Cort stated that at that evening's meeting there would be two
design presentations - -one by Bob Leathers who the City has retained to
prepare designs for the area between City Hall and the parking ramp,
as well as the strip of land which runs between the parking ramp and
the buildings on the Commons; that is, the Home Dairy and CVS, that
entire strip of land which is owned by the City but is a jointly held
right -of -way to which all the abutting owners have an easement or
right -of -way. The City has asked Bob Leathers to prepare some designs
with the expectation that they would make improvements to that propert
with the proceeds from the UDAG Grant.
Continuing with the agenda, Mr. Van Cort added that Werner Seligman
would give an update on the progress that has been made in the design
of the Ithaca Center. After that there would be an update on the
financial aspects of the project, including the first mortgage loan
and the application that is being made by Citizens Savings Bank for a
Farmers Home loan guaranty. Then we will go to the UDAG application and
the payback schedule, for UDAG will be used both for public improvements
and for second mortgage loan. Finally, Director Van Cort would like to
go over the Memorandum of Understanding which contains many of the terms
stated above; it is more of a compilation of the things on which we have
agreed or are working toward agreement with the developer.
There was discussion on the Environmental Impact Study with reference
to the Ithaca Center project. Planning Director Van Cort mentioned that
all the requirements that are necessary would be undertaken, but since
there is a minimum waiting period between each process with reference to
the Environmental Review Process, he felt that other steps could be
started.
Mr. Van Cort also mentioned that in order for the Center to move ahead
it requires action by both the Urban Renewal Agency and the Common
Council, as partners.
Mr. Robert Leathers, architect, was the next speaker. He is designing
public improvements, the construction for which it is hoped the City will
be able to use UDAG proceeds.
Mr. Leathers pointed out on his design the area that will be affected
for public improvements. He talked about a strip of land that is about
13-feet between the back of the stores and the columns of the parking
garage. Also, there is an additional 8- or 9 -foot strip along the
service area. The area is generally "L" shaped. Mr. Leathers mentioned
two areas: one for service access to the back of buildings along the
mentioned strip, and the other for pedestrian use. There will be parking
spaces, and traffic will be coming into and exiting much the same as now.
The removal of refuse is necessary and can only be handled one way - -by
dumpsters. The design shows specific places to put refuse. At present,
pedestrians filter through the whole area. Mr. Leathers' design calls
for a specific area to be used by pedestrians. It also calls for the
removal of all materials above ground, stripping everything from building
to building, and putting in completely new pavement and landscape.
Asphalt will be retained where there is vehicular traffic, same as now.
There will be a series of walls that will vary in height from S to 8 feet
at the most. These will be to screen dumpsters and trash cans.
Mr. Leathers explained that the pedestrian area comes through along the
back side of the buildings. The design shows this area as being brick
pavement, although later he explained that it does not necessarily have
to be brick. There will also be concrete pavement in some places. Trees
will be added and some shrubs will be planted along the buildings. It
is legally necessary to retain access through the entire area by vehicles.
There will be nothing built in the area where merchants have a joint
right of access. The present entrance will be retained and there will be
one small table with benches in a waiting area. The pedestrian zone will
be well lighted.
Upon questioning, Mr. Leathers said that there would be room for a truck
turn - around. Also, there is space underneath the ramp which is reserved
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May 12, 1980
.; 1
as a loading zone, that zone being about 32 feet. There was also dis-
cussion about how the area ties in with the alley and Home Dairy and
what will happen to the Farmers Market. Some of that design will be
done by the developer.
Discussion continued on getting into and out of the parking spaces that
will be available in the reconstructed area. Planning Director Van Cort
(400esaid that the design as it is now is the best possible way under present
, plans. There were concerns expressed about exiting onto Green Street
as there are already problems in the area between City Hall and the
parking ramp. The Fire Department will have some input into the project
to make sure that there will be available space for fighting fires.
The design also includes curb cuts for the handicapped as well as a
space to be used in the future for access to City Hall for the handicapped.
Project architect Werner Seligman said that designing a project such as
Ithaca Center is a slow and tedious matter. He has been working on it
for a very long time as much information has to be keyed into the design,
such information coming from many different people such as engineers,
mechanical engineers and others in order to have a better understanding
of what is to go into the design. It is very difficult for the layman
,l to see all the obstacles that must be considered and dealt with before
the design actually takes shape on the drawing board. With the help of
1_ slides Mr. Seligman showed what the building would consist of as far as
the number of floors, where access to the building would be, where the court
yard would be, what would be inside the building, the back of the
building, etc. Mr. Seligman talked mostly about the facade of the project,;
its rhythm and continuity with the Rothschild building and the bank
building across the street.
Mr. Seligman showed slides of similar buildings already constructed in
other cities and in foreign countries so that those people present could
get a better idea of what the finished project would look like. He dis-
cussed in detail the kind of walls that would be used in the design that
would fit in with the Rothschild wall, as well as the wall of the First
National Bank.
Discussion followed with members of the Council and the IURA stating
their ideas regarding the use of a brick facade inasmuch as most of the
buildings on that particular side of the street do have a brick facade.
However, it is understood that brick has not been actually decided on.
Some concern was shown about the project looking like a square concrete
box. Mr. Seligman explained that there were several cut -outs, as well
as extension of the curtain wall, so that the building would not look
like a big square. Also, the drawings are in the early stage and he
expects that the design will be changed several times before the final
stages.
Progress Report - Finance
Planning Director Van Cort reported that the developer is working with
Citizens Saving Bank and that the Citizens Savings Bank has agreed to a
first mortgage loan to the developer- for the entire amount of the
project without participation by any other financial institutions,
contingent upon two things:
I. Commitment of UDAG
2. Ninety percent guarantee by Farmers Home Administration
Mr. Van Cort explained that this same kind of financing was used for the
Gun Company project. UDAG understands that this is the way the are trying
to go. If it is appropriate to combine the two programs, then we will
submit the UDAG application in order to perfect the mortgage loan.
Developer Scott McRobb stated that the total cost of the project is $7.6
million dollars.
Mr. Van Cort was asked holy long it would be before word would be forth-
coming from UDAG, lie stated that the complete application has to be
submitted to UDAG by Friday, May 30th. The application must be complete
38 7
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in every respect and the financial condition has to be that the City
has a letter from Citizens Bank saying that they will make a loan,
contingent upon a 90o guaranty from FHA. Mr. Van Cort did state that
HUD will give the City a certain amount of time to put one piece in
place if everything else is alright. HUD will give us 10 -20 days in
which to see whether FHA will make the guaranty. Mr. Van Cort mentioned
that Mr. Gesslein of the Citizens Savings Bank has done a tremendous
amount of work in the last week to try to put this project together.
Mr. Gesslein has already had conversations with FHA in Syracuse, and
FHA has indicated that the chances are very good, and has further indi-
cated that it is possible and likely that all the paper work can be
done and the application can be processed through the regional central
office and approved in time to make the UDAG cycle, which is the first
or second week of June. Mr. Van Cort also stated that he has found it
a pleasure to do business with FHA. He worked with them on the Cherry
Street project and found that organization would do everything that it
said it would do and he personally feels very optimistic about the
Ithaca Center project.
On questioning, Planning Director Van Cort stated that the $7.6 million
for the Ithaca Center project from first UDAGt
gage loan from Citizens Savings
and the developer's equity; Discussion followed on at would ch ppen
if the developer's equity In the project, due to
is less than the $6.5 million now anticipated. Mr. Van Cort stated that
there is nothing in the Memorandum of Understanding which protects the
City against that possibility. He said he would talk to Mr. Goldberg
and Mr. McRobb about putting some language into the agreement that would
guarantee that we would get more back for UDAG. City Attorney Shapiro
felt that the City has some protection because the architect's drawings
and any changes or alterations in the design that would make a difference
in the cost of the project would have to be approved by Common Council.
Planning Director Van Cort mentioned that if the papers are not submitt
to HUD by May 30th, the developer probably
but would wait until 1981. Alderman Holman asked how flexible HUD would
be as far as any changes that might be made after May 30th. Mr. Van Cort
understands that HUD is very interested in the fact that American Cities
Corp. is doing a marketing analysis on the project; HUD believes that makes
it a far more solid and doable project. Mr. Van Cort said that while he
is in Washington he will ask HUD if the American Cities Corp. presents
numbers that are really quite different from the numbers of the performer
with respect to rent. If so, can the City then amend its UDAG submission
to them sometime in June? Also, you submit the project all wrapped up
in a neat little bundle and possibly the only thing HUD will do later is
change one single thing.
Mr. Van Cort was asked what the $500,000 will pay for as far as improve-
ments to the city. He said that $200,000 will be spent for the space out
away from the buildings, including the underground improvements and the
space next to the buildings. Another $245,000 or so will be for the roof
over the courtyard and then another $75,000 will go for the elevator.
The rest of the on -site improvements and the improvements to join the
sides are going to have to be built by the developer at their expense.
Alderman Saccucci asked why the developer would wait seven years after
the opening of the project to develop the area under the Green Street
ramp. Planning Director Van Cort explained that the developer and the:,
Bank involved felt that previous projects have failed in part because
of an overly - ambitious emphasis on retail and that the real problem with
the other projects wasthat they tried to rent somewhere in the neighbor-
hood of 100,000 feet of retail space in a downtoi•:n location without a
spread of uses to back them up. The present developer is trying to
strengthen the project with housing and a small amount of retail space in
the first stage in order to test the market. There is nothing sacred about
the seven years. If American Cities comes back in June and say that there
is a strong market demand for immediate construction of more retail space,
then the developer will go forward.
Mrs. Jones, IURA member, asked Planning Director Van Cort what improve-
ments the developer would pay for that is not included in the $500,000
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UDAG. Mr. Van Cort mentioned all the pavement underneath the parking
garage, any other improvements necessary to control parking, sidewalk
on Green Street, the paving between the parking garage and the project,
any new paving in the Home Dairy alley, any cover that they might want
to build, either between the garage and the project or between their
project and the Home Dairy, and public toilets.
Discussion continued on the sale price of the land and how it was
(400.arrived at. Planning Director Van Cort stated that he has always used
" the figure $400,000 although he does not know if that is a true value
figure. The front piece is valued at $250,000 and the back piece is
valued at $150,000. The purchase price of the land. is to be paid over
a period of ten years at 6% interest. "Title will be transferred on
closing and the land is not part of the developer's equity in the $7.6
million project. Mr. Van Cort explained the City's position in case of
a foreclosure against the developer. The Tax Collector would be'first
in line, the Citizens Savings Bank next, and then the City of Ithaca.
A ten - minute recess was called at this point (.10:00 p.m. to 10:10 p.m.).
UDAG Repayment Schedule and Use
Planning Director Van Cort explained that the UDAG Grant is made by the
3 Federal Government to a municipality. The municipality then can do with
it as it likes and as agreed to with HUD. The repayment by the developer
t will go to the City and that money is kept by the City as it comes in.
The City can lend it out or put it into another project. Mr. Van Cort
is recommending that the proceeds of the loan (repayment) should be
split between the Ithaca Neighborhood Housing Services and Industrial
Economic Development that is yet to be designed. Mr. Van Cort explained
that the first year the developer will make no payment; for the next
two years interest only will be paid; from the fourth year on both
principal and interest will be paid. IIe explained the percentages of
ILpayback that will go to Ithaca Neighborhood Housing and Industrial
Economic Development. Mr. Van Cort referred to a list of eligible uses
that can be made of UDAG repayment money, a copy of which had been given
to those persons attending the meeting.
Memorandum of Understanding
Planning Director Van Cort went through the Memorandum of Understanding
proposal between the City of Ithaca and Goldberg /McRobb, the developer.
Paragraph 1 has to do with IURA's proposal to HUD for a $1.7 million UDAG.
If the grant is awarded to the City, Mr. Van Cort explained how much would
be loaned to the developer and the payback schedule by the developer.
Mr. Van Cort mentioned that the figures may change, depending on the
developer's cash flow after the first three years.
Paragraph 2 was discussed earlier in the meeting, and a change in the
language was recommended for the last sentence which will now read:
"It is understood that the City's first responsibility is to public
improvements outside of the project and, to the extent that the $500,000
is not sufficient to cover other such improvements the developer will
be required to assume these costs."
Paragraph 3 is concerned with architects using the established public
improvement design for the area under the Green Street Parking Garage.
Paragraph 4 discusses reference to the selling price of the land
we acquisition by the developer. City Attorney Shapiro stated that he
felt the figure to be a fair one and that it was the figure used in the
last three Ithaca Center proposals. Mr. Van Cort again mentioned the
period over which the developer would pay for the land and the amount of
interest.
Paragraph S covers the developer's agreement to construct an improved
parking area underneath the parking garage. At the present time terms
are very vague and at the time of closing the sale of the land an
agreement will also be executed covering the terms on which the parking
area will be operated. There will also be a clause stating that changes
may be negotiated after the first year of operation if circumstances
warrant.
6_ May 12, 1980
Paragraph 6 briefly spells out what will happen if the leasable space
in the Ithaca Center project reaches a 90a occupancy, or if it doesn't,
after certain periods of time. It also states that there will be a
contract covering compliance with paragraph 6, such contract to have the
approval of IURA and Common Council.
Paragraph 7 states that if IURA and Common Council decide on the 28th
day of May 1980 to grant final preferred sponsorship to Goldberg /McRobb
such action will still be contingent upon performance of certain other
things and the occurrence of certain other things that are briefly des
cribed.
In Paragraph 8 Alderman Nichols noted a few minor changes. The changes
were not of substance, but rather in the separation of certain sentences
into separately lettered paragraphs. Paragraph 8 covers the City's right
of access to the public open space in the Center Ithaca project and spells
out certain things that the developer will do at their own expense. Dis-
cussion was held on the subparagraph covering charge or fee for usage of
the public open space. Such things will be covered in a contract to be
negotiated.
ADJOURNMENT:
On a motion, the meeting was adjourned at 11:04 p.m.
Jos ph A. Run le, City Cler
Rdymond Bordoni , Mayor