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Home My WebLink AboutMN-CC-1980-05-14COMMON COUNCIL PROCEEDINGS CITY OF ITILACA, NEW YORK Special Meeting 7:30 P.M. May 14, 1980 PRESENT: Mayor - Bordoni Aldermen (9) - Banfield, Boronkay, Dennis, Gutenberger, Holman, Nichols, Saccucci, Schuler, Slattery (400e ABSENT: Alderman (1) - Boothroyd Ithaca Urban Renewal Agency - Reed OTHERS PRESENT: Ithaca Urban Renewal Agency - Bordoni, Dennis, Stein, Jones, City Attorney - Shapiro Planning Staff - Bottge Director, Planning $ Development - Van Cort Asst. Fire Chief - Sanford City Clerk - Rundle PLEDGE OF ALLEGIANCE: Mayor Bordoni leU all in the Pledge of Allegiance to the American flag. SPECIAL ORDER OF BUSINESS: Ithaca Center Project Director of Planning -& Development Van Cort explained that the material which the Council would be acting upon contained resolutions on the UDAG Application, on the FmHA Loan Guarantee, on UDAG Repayment Terms, on the UDAG Public Improvements, on the use of the UDAG Pay -back, and on the Land Acquisition terms (items discussed on the previous Monday). Also included were two memoranda (May 9, 1980, May 14, 1980), revised Land Acquisition and Payment proposal and revised UDAG Loan Repayment proposal. (400,11 At the request of IURA member Stein, Mr. Van Cort reported on what was presented at the public hearing the previous evening (May 13, 1980) for the benefit of those who had not been present. Discussion followed on the floor. IURA Draft Resolution #1 - UDAG Application By Agency Member Stein: Seconded by Agency Member Dennis WHEREAS, financing of McRobb /Goldberg proposal for Ithaca Center is dependent upon receipt of a $1.7 million Urban Development Action Grant (UDAG) from H.U.D., and WHEREAS, $1.2 million of the UDAG is to be provided to McRobb /Goldberg as a second mortgage loan and $500,000 is to be retained by the City to finance public improvements associated with the project, and WHEREAS, the Community Advisory Committee held a public hearing and recommended that a UDAG application be submitted to HUD; NOW, THEREFORE, BE IT RESOLVED, That the Mayor is authorized to submit a UDAG application to H.U.D. under the sponsorship of the IURA /CDA, with the assistance of the Director of Planning and Development and City Attorney, and upon approval of City Attorney. Ayes (3) - Mein, Dennis, Bordoni Absent (2) - Jones, Reed Carried Common Council Draft. Resolution 111 - UDAG Application By Alderman Nichols: Seconded by Alderman Schuler WHEREAS, financing of McRobb / Goldberg proposal for Ithaca Center is dependent upon receipt of a $1.7 million Urban Development Action Grant (UDAG) from II. U. D. , and WHEREAS, $1.2 million of the UDAG is to be provided to McRobb /Goldberg as a second mortgage loan, and $500,000 is to be retained by the City to finance public improvements associated ►with the project, and 4 `) N -2_ May 14, 1980 WHEREAS, the IURA /CDA has authorized tion to H.U.D. under the sponsorship of the Director of Planning and Deve approval of the City Attorney; NOW, THEREFORE, BE IT RESOLVED, That Ithaca does concur with submittal of the Mayor to submit a UDAG applica- of the IURA, with the assistance Lopment and City Attorney, and upon the Common Council of the City of the UDAG application. Ayes (9) - Banfield, Nichols, Schuler, Dennis, Gutenberger, Holman Boronkay, Slattery, Saccucci Absent (1) - Boothroyd Carried Ithaca Urban Renewal Agency member, Mrs. Anne Jones, arrived at the meeting at 7:50 p.m. IURA Draft Resolution #2 - FmHA Loan Guarantee By Agency Member Stein: Seconded by Agency Member Dennis WHEREAS, financing of McRobb /Goldberg proposal for Ithaca Center is dependent upon a FmHA 90o Loan Guarantee, and WHEREAS, the conditional preferred developers and Citizens Savings Bank are working toward securing said. Loan Guarantee; NOW, THEREFORE, BE IT RESOLVED, That the Mayor, Director of Planning and Development and City Attorney are hereby authorized and directed to assist McRobb /Goldberg and Citizens Savings Bank in every means possible to secure FmHA 90o Loan Guarantee. Discussion followed on the floor. A vote on the resolution resulted as follows: Ayes (_4) - Stein, Dennis, Bordoni, Jones Absent (1) - Reed Carried F&F Common Council Draft Resolution #2 - FmHA Loan Guarantee By Alderman Gutenberger: Seconded by Alderman Holman WHEREAS, financing of McRobb /Goldberg proposal for Ithaca Center is dependent upon a FmHA 90o Loan Guarantee, and WHEREAS, the conditional preferred developers and Citizens Savings Bank are working toward securing said Loan Guarantee, and WHEREAS, the IURA /CDA has resolved that the Mayor, Director of Planning and Development and City Attorney are hereby authorized and directed to assist McRobb /Goldberg and Citizens Savings Bank in every means possible to secure FmHA 90o Loan Guarantee; NOW, THEREFORE, BE IT RESOLVED, That the Common Council of the City of Ithaca does concur with the provision of assistance in securing a FmHA Loan Guarantee for the Ithaca Center Project. Ayes (9) - Banfield, Nichols, Schuler, Holman, Boronkay, Slattery Saccucci, Dennis, Gutenberger Absent (1) - Boothroyd Carried IURA Draft Resolution #3 - UDAG Repayment Terms V By A3- d -rman Denn is: Seconded by Agency Member Stein y }`WHEREAS, financing of McRobb /Goldberg proposal for Ithaca Center is dependent upon receipt of a $1.7 million Urban Development Action Grant (UDAG) from H.U.D., and WHEREAS, the IURA /CDA has authorized the Mayor to submit a UDAG proposal to H.U.D. under the sponsorship of the I.U.R.A., and WHEREAS, $1.2 million of the UDAG will be made available to the developers in the form of a subordinate second mortgage loan; -3- May 14, 1980 NOW, THEREFORE, BE IT RESOLVED, That the following repayment terms are hereby approved: Principal: $1.2 Million Terms: 33 -year period; payment during first partial year (1981) waived; interest payments only @3% for next two years payable quarterly; starting in fourth year interest and Co., Principal amortized @4o for 30 years; payments to be made quarterly. and BE IT FURTHER RESOLVED, That the Mayor is hereby authorized to enter into a UDAG loan agreement under these terms, with the assistance of the Director of Planning and Development and City Attorney, upon the approval of the City Attorney. Discussion followed on the floor. Planner Bottge explained the terms of repayment as they differ from the previous resolution. t Peter Rogers, 806 N. Tioga Street, spoke to the Council, saying that he objected to the 1980 City Budget; he also questioned the long -term loan of money at below- market rate, commenting that it is not economically sound. !• Mr. Van Cort and Planner Bottge answered Mr. Rogers, explaining UDAG. A vote on the resolution resulted as follows: Ayes (4) - Stein, Dennis, Jones, Bordoni Absent (1) - Reed Carried Common Council Draft Resolution #3 UDAG Repayment Terms By Alderman Holman: Seconded by Alderman Boronkay, WHEREAS, financing of McRobb /Goldberg proposal for Ithaca Center is dependent upon receipt of a $1.7 million Urban Development Action Grant (UDAG) from N.U.D., and WHEREAS, the IURA /CDA has authorized the Mayor to submit a UDAG applica- tion to H.U.D. under the sponsorship of the IURA, and WHEREAS, $1.2 million of the UDAG will be made available to the developers in the form of a subordinate second mortgage loan, and WHEREAS, the IURA /CDA has resolved that (1) the following repayment terms are hereby approved: Principal: $1.2 million Terms: 33 -year period; payment during first partial year (1981) waived; interest payments only @3o for next tiro years payable quarterly; starting in fourth year interest and principal amortized @4a for 30 years; payments to be made quarterly. (2) the Mayor is hereby authorized to enter into a UDAG loan agreement under these terms, with the assistance of the Director of Planning and Development and City Attorney, upon the approval of the City Attorney; NOIV, TIILREFORG, BE IT 1:L'SOLV1:D, That the Common Council of the City of Ithaca does concur with the UDAG repayment terms agreed to by the IURA/ CDA. Ayes (9) - Banfield, Nichols, Schuler, Dennis, Gutenberger, Holman, Boronkay, Slattery, Saccucci Absent (1) - Boothroyd Carried IURA Draft Resolution tt4 - UDAG Funded Public Improvements By Agency Member Stein Agency 19ember Dennis IVHF.REAS, the IURA /CDA ias authorized the Mayor to submit a UDAG applica- tion to 11.U.D. for X1.7 million to assist in development of Ithaca Center, and -4_ May 14, 1980 WHEREAS, upon approval of the $1.7 million UDAG, $1.2 million will be made available to the developers in the form of a subordinate second mortgage loan, NOW, THEREFORE, BE IT RESOLVED, That $500,000 of the $1.7 million UDAG is hereby earmarked for public improvements associated with the project, as determined by IURA and Common Council. Discussion followed on the floor. A vote on the resolution resulted as follows: Ayes (4) - Stein, Dennis, Jones, Bordoni Absent (1) - Reed Carried Common Council Draft Resolution #4 - UDAG Funded Public Improvements By Alderman Holman: Seconded by Alderman Boronkay WHEREAS, the IURA /CDA has authorized the Mayor to submit a UDAG applica- tion to H.U.D. for $1.7 million to assist in development of Ithaca Center, and WHEREAS, upon approval of the $1.7 million a UDAG, $$1.2 million willrbe made available to the developers in the form of loan, WHEREAS, the IURA /CDA has resolved that (1) $500,000 of the $1.7 million UDAG is hereby earmarked for public improvements associated with the project, as determined by IURA and Common Council; NOW, THEREFORE, BE IT RESOLVED, That the Common Council of the City of Ithaca does approve the concept for UDAG - funded public improvements associated with the Ithaca Center Project. J, Ayes (9) - Banfield, Nichols, Schuler, Dennis, Gutenberger, Holman, Boronkay, Slattery, Saccucci Absent (1) - Boothroyd Carried IURA Draft Resolution #5 - UDAG Pay -back By Agency P•4em ex Jones: Secon e y Agency Member Dennis WHEREAS, the IURA /CDA has authorized the Mayor to submit a UDAG proposal to H.U.D. for $1.7 million to assist in development of Ithaca Center, and WHEREAS, upon approval of the $1.7 million UDAG, $1.2 million will be made available to the developers in the form of a subordinate second mortgage loan, under terms approved by the IURA and Common Council this date, and WHEREAS, repayment of said UDAG loan will come directly to the City of Ithaca and not be repaid to H.U.D., and WHEREAS, the Community Advisory Committee held a public hearing and recommended that loan repayment funds be used as recommended by staff; NOW, THEREFORE, BE IT RESOLVED, That the Mayor is authorized to make ar application for a UDAG which will specify that the UDAG loan proceeds are to be reused as proposed in H. M. Van Cort's Memoranda of May 9, 198 and May 14, 1980, and BE IT FURTHER RESOLVED, That all allocations of UDAG repayments be made by the IURA /CDA, subject to Common Council concurrence. Discussion followed concerning the recommendation of use of UDAG Pay -back. A vote on the resolution resulted as follows: Ayes (4) - Stein, Dennis, Jones, Bordoni Absent (1) - Reed Carried -5- May 14, 1980 Common Council Draft Resolution #5 - UDAG Pay-back By Alderman Gutenberger: Seconded by Alderman Boronkay WHEREAS, the IURA /CDA has authorized the Mayor to submit a UDAG proposal to H.U.D. for $1.7 million to assist in development of Ithaca Center, and WHEREAS, upon approval of the $1.7 million UDAG, $1.2 million will be made available to the developers in the form of a subordinate second mortgage loan, under terms approved by the IURA and Common Council this date, and WHEREAS, repayment of said UDAG loan will come directly to the City of Ithaca and not be repaid to H.U.D., and WHEREAS, the IURA /CDA has resolved that the Mayor is authorized to make an application for a UDAG which will specify that the UDAG Loan Proceeds are to be reused as proposed in H. M. Van Cort's Memoranda of May 9, 1980 and May 14, 1980, and subject to Common Council approval; NOW, THEREFORE, BE IT RESOLVED, That the Common Council of the City of y Ithaca concurs with the IURA /CDA plan for use of loan repayment funds, and ' BE IT FURTHER RESOLVED, That all allocations of UDAG repayments be made by the IURA /CDA, subject to Common Council concurrence. A vote on the resolution resulted as follows: Ayes (9) - Banfield, Nichols, Schuler, Dennis, Gutenberger, Holman, Boronkay, Slattery, Saccucci Absent (1) - Boothroyd Carried IURA Draft Resolution #6 - Land Acquisition Terms By Agency Member Dennis: Seconded by Agency Member Stein WHEREAS, development of Ithaca Center as proposed by McRobb /Goldberg calls for disposition by the IURA and Common Council of parcels of land adjacent to the Ithaca Commons and under the Green Street parking garage; NOW, THEREFORE, BE IT RESOLVED, That the following land disposition and payment terms are hereby approved, subject to designation of McRobb/ Goldberg as Preferred Developers: Cost: $400,000 Terms: Thirteen year period; payment during first partial year (1981) waived; interest payments only @3% for next two years payable quarterly; starting in fourth year interest and principal amortized @7% for 30 years; payments to be made quarterly, and BE IT FURTHER RESOLVED, That the Mayor is hereby authorized to enter into this land disposition and payment agreement with the assistance of the Director of the Planning and Development Department and the City Attorney, and upon approval of the City Attorney. Any changes in this land dis- position must come back to IURA and the Common Council. Discussion followed on the floor. A vote on the resolution resulted as follows: Ayes (4) - Stein, Dennis, Jones, Bordoni Absent (1) - REed Carried Common Council. Draft By Alterman Ilolman: WHEREAS, development requires disposition land adjacent to the garage, and Resolution #6 - Land Acquisition Terms S econ —clod by Alderman Slattery of Ithaca Center as proposed by McRobb /Goldberg by the IURA /CDA and Common Council, of parcels of Ithaca Commons and under the Green Street parking 4 f; May 14, 1980 WHEREAS, the IURA /CDA has resolved that the following land disposition and payment terms are hereby approved, subject to designation of McRobb/ Goldberg as Preferred Developers: Cost: $400,000 Terms: Thirteen year period; payment during first partial year (1981) waived; interest payments only @3o for next two years payable Quarterly; starting in fourth year interest and principal amortized @7o for 30 years; payments to be made Quarterly, and WHEREAS, the IURA /CDA further resolved that the Mayor is hereby authorized to enter into this land disposition and payment agreement with the assistance of the Director of the Planning and Development Department and the City Attorney, and upon approval of the City Attorney; NOW, THEREFORE, BE IT RESOLVED, That the Common Council of the City of Ithaca does concur with the IURA /CDA plans for disposition of the Ithaca Center land. Discussion followed on the floor. A vote on the resolution resulted as follows: Ayes (9) Banfield, Nichols, Schuler, Dennis, Gutenberger, Holman, Boronkay, Slattery, Saccucci Absent (1) - Boothroyd Carried ADJOURNMENT: On a motion the meeting adjourned at 10:10 p.m. 't se 1 A. Run le, City Cler -k— \ I ymon B`or oni, Mayor 5 lr.�