HomeMy WebLinkAboutMN-CC-1980-10-27O
145
COMMON COUNCIL PROCEEDINGS
CITY OF ITHACA, NEW YORK
Special Meeting 7:30 P.M. October 27, 1980
PRESENT:
Mayor - Bordoni
Aldermen (10) - Banfield, Boothroyd, Boronkay, Dennis, Gutenberger,
Holman, Nichols, Saccucci, Schuler, Slattery
Ithaca Urban Renewal Agency (4) - Bordoni, Dennis, Reed, Stein
ABSENT:
Ithaca Urban Renewal Agency (1) - Jones
OTHERS PRESENT:
City Attorney - Shapiro
Director, Planning $ Development - Van Cort
Planning & Development Staff - Bottge
City Clerk - Rundle
Third Ward Resident - Conley
PLEDGE OF ALLEGIANCE:
Mayor Bordoni led all present in the Pledge of Allegiance to the
American flag.
COMMON COUNCIL AGENDA:
Annointment to fill ,Tn
Board of
signation of
Lvui� ate. ncu�4c1 - U-L1LU .L1VU 1VUVe1I1Der 1, 1J16U.
Mayor Bordoni declared the floor open for nominations of names to fill
the vacancy on the Tompkins County Board of Representatives District
No. 3.
Nomination
By Alderman Gutenberger: Seconded by Aldermen Slattery and Nichols
RESOLVED, That it is the unanimous choice of the Third Ward Democratic
Committee to offer the name of Edward J. Conley, 1309 East State Street,
in nomination to fill the position vacated by Louis R. Webster.
Resolution to Close Nominations
By Alderman Boronkay: Seconded by Alderman Slattery
RESOLVED, That the nominations for names to fill the vacancy on the
Tompkins County Board of Representatives District No. 3 be closed.
Carried Unanimously
A vote on the nomination of Edward J. Conley resulted as follows:
Ayes (7) - Banfield, Boothroyd, Nichols, Schuler,
Gutenberger, Slattery, Dennis
Abstentions (3) - Boronkay, Holman, Saccucci
Carried
Mr. Edward J. Conley took the Oath of Office and was sworn in by
City Clerk Rundle for a term November 1, 1980 to December 31, 1981.
ADJOURNMENT:
On a iliot_ ion the Common Courlc:i_1 meeting adjourned at 7:12 P.M.
Alderman Boothroyd left the meet=ing at 7:12 P.M.
]46) -2- October 27, 1980
JOINT MEETING-- COINIMON COUNCIL- ITHACA
Ithaca Urban Renewal A ency 1--D
Preferred Sponsor for Ithaca Center
By Agency Member Reed: Seconded—UT
WHEREAS, this Agency has previously
the preferred sponsor for the Ithaca
URBAN RENEWAL AGENCY
gnation of Partnership (s) as
Agency Member Stein
designated McRobb- Goldberg as
Center project, and
WHEREAS, subsequent to said designation McRobb- Goldberg have established
certain partnerships known individually as G & M Associates, Ithaca
Center Associates and the Ithaca Center Development Company to
effectuate said development project, and
WHEREAS, the developers have submitted a Business Certificate for
Partners in accordance with New York State Law which certifies that
they are conducting business as a partnership known as Ithaca Center
Development Company, and
WHEREAS, the City Attorney has reviewed all partnership documents for
the above three partnerships, and
WHEREAS, said documents are acceptable to the City Attorney;
NOW, THEREFORE, BE IT RESOLVED, that this Agency does hereby designate
the aforesaid partnerships as preferred sponsor for the Ithaca Center
project.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Carried
1 Absent - Jones
Common Council Resolution #1-- Designation of Partnership(s) as
Preferred Sponsor 1. for Ithaca'Center
By Alderman Nichols: Seconded by Alderman Gutenberger
WHEREAS, the Ithaca Urban Renewal Agency has previously designated
McRobb-- Goldberg as the preferred sponsor for the development of
Ithaca Center, and
WHEREAS, this Common Council has concurred with said designation, and
WHEREAS, subsequent to said designation McRobb- Goldberg have established
certain partnerships known individually as G & M Associates, Ithaca
Center Associates and the Ithaca Center Development Company to effect-
uate said development project, and
WHEREAS, the developers have submitted a Business Certificate for
Partners in accordance with New York State Law which certifies that
they are conducting business as a partnership known as Ithaca Center
Development Company, and
WHEREAS, the City Attorney has reviewed all partnership documents for
the above three partnerships, and
WHEREAS, said documents are acceptable to the City Attorney;
NOW, THEREFORE, BE IT RESOLVED, that this Common Council does hereby
concur with Ithaca Urban Renewal Agency's designation of the aforesaid
partnerships as preferred sponsor for the Ithaca Center project.
Carried
1 Absent - Boothroyd
Ithaca Urban Renewal Agency Resolution #2- -Land Disposition Terms
By Agency Member Dennis: Seconded y Agency Member Reed
WHEIREAS, the site of the proposed Ithaca Center has been subdivided
into two parcels, herein referred to as Parcel A and Parcel B, and
-3-
October 27, 1980141
WHEREAS, Parcel A is that portion of the site immediately adjacent to
the Ithaca Commons, and will be purchased by Ithaca Center Associates,
and
WHEREAS, Parcel B is that portion of the site beneath the Green Street
Parking Garage, and will be purchased by G & M Associates;
NOW, THEREFORE, BE IT RESOLVED, that the following terms for disposi-
tion of Parcels A and B as here and above described are hereby approved:
Parcel A
Cost: $250,000
Terms: Payment by Note and Mortgage (Third position)
(1) For the period commencing on the date hereof and
ending on December 31, 1981, there shall be no
interest or principal amounts due. Commencing on
January 1, 1982 and ending on December 31, 1983,
interest only from January 1, 1982 on the outstand-
ing balance of the Principal Amount at the rate of
4% per annum, such interest payments to be made
quarterly commencing April 1, 1982.
(2) Commencing January 1, 1984 and ending on December
31, 2014, equal installments of combined principal
and interest (calculated on a 360 day year, 30 day
month), such interest to be at the rate of 3% per
annum, each such installment of combined principal
and interest to be paid on the last day of each quarter
during the Loan Period in such amount as will result in
the full repayment of the outstanding balance of the
Principal Amount over the Loan Period.
The entire balance of Note shall become due and pay-
able in full after fifteen (15) years, being January
1, 1999.
Each installment of combined principal and interest
shall be applied first to interest hereon, and next,
to the principal hereof.
Payments of principal and interest shall be made in
lawful money of the United States of America at the
principal office of Payee, or at such other place as
the holder hereof shall have designated in writing to
Maker for such purpose.
Parcel R
Cost: $150,000
Terms: Payment by Note and Mortgage (First position)
(1) For the period commencing on the date hereof and ending
on December 31, 1981, there shall be no interest or
principal amounts due. Commencing on January 1, 1982
and ending on December 31, 1983, interest only from
January 1, 1982 on the outstanding balance of the
Principal tkmount at the rate of 4% per annum, such
interest payments to be made quarterly commencing
April 1, 1982.
(2) Commencing January 1, 1984 and ending on December 31,
2014, equal installments of combined principal and
interest (calculated on a 360 day year, 30 day month),
jq 8 -4- October 27, 1980
such interest to be at the rate of 390- per annum,
each such installment of combined principal and
interest to be paid on the last day of each quarter
during the Loan Period in such amount as will result
in the full repayment of the outstanding balance of
the Principal Amount over the Loan Period.
The entire balance of Note shall become due and pay-
able in full after fifteen (1S) years, being January
1, 1999.
Each installment of combined principal and interest
shall be applied first to interest hereon, and next,
to the principal hereof.
Payments of principal and interest shall be made in
lawful money of the United States of America at the
principal office of Payee, or at such other place
as the holder hereof shall have designated in writing
to Maker for such purpose.
BE IT FURTHER RESOLVED, that the Chairman of the Agency is hereby
authorized and directed to execute any and all documents, agreements
and instruments necessary to implement the intent of this Resolution,
upon the recommendation of the City Attorney.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Carried
1 Absent - Jones
Common Council Resolution #2 - -Land Disposition Terms
By Alderman Nichols: Seconded by Alderman Gutenberger
WHEREAS, the site of the proposed Ithaca Center has been subdivided
into two parcels, herein referred to as Parcel A and Parcel B, and
WHEREAS, Parcel A is that portion of the site immediately adjacent
to the Ithaca Commons, and will be purchased by Ithaca Center Associates,
and
WHEREAS, Parcel B is that portion of the site beneath the Green Street
Parking Garage, and will be purchased by G � M Associates;
NOW, THEREFORE, BE IT RESOLVED, that the following terms for disposi-
tion of Parcels A and B as here and above described are hereby approved:
Parcel_ A
Cost: $230,000
Terms: Payment by Note and Mortgage (Third position)
(1) For the period commencing on the date hereof and
ending on December 31, 1981, there shall be no
interest or principal amounts due. Commencing on
January 1, 1982 and ending on December 31, 1983,
interest only from January 1, 1982 on the outstand-
ing balance of the Principal Amount at the rate of
4% per annum, such interest payments to be made
quarterly commencing April 1, 1982.
(2) Commencing January 1, 1984 and ending on December
31, 2014, equal installments of combined principal
and interest (calculated on a 360 day year, 30 day
month) , such interest to be at the rate of 3% per
annum, each such installment of combined principal
-5-
and interest to be paid
quarter during the Loan
will result in the full
balance of the Principal
October 27, 198d49
on the last day of each
Period, in such amount as
repayment of the outstanding
Amount over the Loan Period.
The entire balance of Note shall become due and pay-
able in full after fifteen (15) years, being January
1, 1999.
Each installment of combined principal and interest
coo", shall be applied first to interest hereon, and next,
to the principal hereof.
Payments of principal and interest shall be made in
lawful money of the United States of America at the
Principal office of Payee, or at such other place as
the holder hereof shall have designated in writing
to Maker for such purpose.
Parcel B
Cost: $150,000
\J '
}j Terms: Payment by Note and Mortgage (First position)
(1) For the period commencing on the date hereof and
ending on December 31, 1981, there shall be no interest
or principal amounts due. Commencing on January 1,
1982 and ending on December 31, 1983, interest only
from January 1, 1982 on the outstanding balance of
the Principal Amount at the rate of 4% per annum, such
interest payments to be made quarterly commencing
April 1, 1982.
(400-'e (2) Commencing January 1, 1984 and ending on December 31,
2014, equal installments of combined principal and
interest (calculated on a 360 day year, 30 day month),
such interest to be at the rate of 3% per annum, each
such installment of combined principal and interest
to be paid on the last day of each quarter during the
Loan Period in such amount as will result in the full
repayment of the outstanding balance of the Principal
Amount over the Loan Period.
The entire balance of Note shall become due and payable
in full after fifteen (15) years, being January 1, 1999.
Each installment of combined principal and interest
shall be applied first to interest hereon, and next,
to the principal hereof.
Payments of principal and interest shall be made in
lawful money of the United States of America at the
principal office of Payee, or at such other place as
the holder hereof shall have designated in writing to
Maker for such purpose.
BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and
(400" directed to execute any and all documents, agreements and instruments
necessary to implement the intent of this Resolution, upon the
recommendation of the C.it;r Attorney.
Carried
1. Absent - Boothroyd
_i- -6- October 27, 1980
Ithaca Urban Renewal A ens 03 -- Authority to Execute Development,
Lan Conveyance an U eratin and Reciprocal Agreement
By Agency Member Stein: Secon ed by Agency Member Dennis
RESOLVED, that the Chairman of the Agency is hereby authorized and
directed to execute the Development Agreement, the Land Conveyance
Agreement, and Operating and Reciprocal Agreement, upon the recom-
mendation of the City Attorney; and
BE IT FURTHER RESOLVED, that the Chairman of the Agency is hereby
authorized to execute any and all documents, agreements and instruments
necessary to implement the intent of this Resolution, upon the recom-
mendation of the City Attorney.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Carried
1 Absent - Jones
Common Council Resolution #3--Authority to Execute Development,
Land Conveyance and Operating an Reciprocal Agreements
By Al erman Nic ols: Secon e y Alderman Saccucci
RESOLVED, that the Mayor is hereby authorized and directed to execute
the Development Agreement, the Land Conveyance Agreement, and Operat-
ing and Reciprocal Agreement, upon the recommendation of the City
Attorney, and
BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute
any and all documents, agreements and instruments necessary to imple-
ment the intent of this Resolution, upon the recommendation of the
City Attorney.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Carried
1 Absent - Boothroyd
Ithaca Urban Renewal Agency #4 -- Revised UDAG Loan Terms
By Agency Member Stein: Seconded by Agency Mem er Ree
WHEREAS, the following UDAG loan repayment terms have been previously
approved by this Agency and Common Council:
UDAG Loan Repayment_
Principal: $1.2 million
Terms: 4% interest only for 1982 and 1983, payable
quarterly; starting in 1984, interest and
principal amortized at 8% for 19 years.
In addition, the City of Ithaca will participate in sharing
interests in gross income per the following provisions:
1. Terms of payment of gross income override to lenders.
a. If net cash income to owners is equal to, or less
than 50 of verified cash equity, no override will
be paid to lenders.
b. If net cash income to owners is bett�een. 5% and 150
of verified cash equity, an override of 100 of gross
income over a base of $1,250,000 will be paid to
the lenders.
C. If net cash income to owners is equal to, or greater
than 15% of verified cash equity - an override of
20a of gross income over a bas, of $1,250,000 will
be paid to the lenders.
-7-
October 27, 1980151
BE IT RESOLVED, that the UDAG loan terms be amended as follows,
and are hereby approved:
Revised UDAG Loan Repayment
Principal: $1,445,000
Terms: 32 year term with no payment in 1981; interest
only on $1,200,000 at 4% in 1982 and.1983.
Starting in 1984) interest and principal amortized
at 7.6% for 29 years with minimum payment of
$125,000 over the amount necessary to amortize
the above loan to be credited to principal. (Note:
excess will be $272 /year).
In addition, the City of Ithaca will participate in sharing
interests in gross income per the following provisions:
a. If net cash income to owners is equal to, or less
than 50 of verified cash equity, no override will
be paid to the City.
b. If net cash income to oi�-ners is between 5% and 15$
E_I of verified cash equity, an override of 100 of gross
base rent, plus any percentage of sales overrides only
w� over a base of $1,250,000 will be paid to the City.
C. If net cash income to owners is equal to, or greater
than IS% of verified cash equity, an override of 200
of gross base rent, plus any percentage of sales
overrides only over a base of $1,250,000 will be paid
to the City.
d. Upon full repayment of $1,200,000 of the $1,445,000
loan from the City of Ithaca, the requirement for
override payments to the City of Ithaca will cease.
BE IT FURTHER RESOLVED, that the Chairman of the Agency is hereby
authorized and directed to execute any and all documents, agreements
and instruments necessary to implement the intent of this Resolution,
subject to the recommendation of the City Attorney.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Carried
1 Absent - Jones
Common Council Resolution #4-- Revised UDAG Loan Terms
By Alderman Nichols: Seconded by Alderman Gutenberger
WHEREAS, the following UDAG loan repayment terms have been previously
approved by this Agency and Common Council:
UDAG Loan Repayment
Principal: $1.2 million
Terms: 4% interest only for 1982 and 1983, payable
(4000" quarterly; starting in 1984, interest and
principal amortized at 8% for 19 years.
In addition, the City of Ithaca will participate in sharing
.interests iii gross income per t}:e following provisions:
I. Terms of payment of gross income override to lenders.
a. If net cash income to owners is equal to, or less than
So of verified cash equity, no override will be paid
to lenders.
1.51 -8- October 27, 1980
b. If net cash income to owners is between 5% and
15% of verified cash equity - an override of 100
of gross income over a base of $1,250,000 will be
paid to the lenders.
C. If net cash income to owners is equal to, or
greater than 15% of verified cash equity - an over-
ride of 20% of gross income over a base of $1,250,000
will be paid to the lenders.
BE IT RESOLVED, that the UDAG loan terms be amended as follows, and
are hereby approved:
Revised UDAG Loan Repayment
Principal: $1,445,000
Terms: 32 year term with no payment in 1981; interest
only on $1,200,000 at 4% in 1982 and 1983.
Starting in 1984, interest and principal amortized
at 7.6% for 29 years, with minimum payment of
$125,000 over the amount necessary to amortize
the above loan to be credited to principal. (Note:
excess will be $272 /year).
In addition, the City of Ithaca will participate in sharing
interests in gross income per the following provisions:
a. If net cash income to owners is equal to, or less
than So of verified cash equity, no override will be
paid to the City.
b. If net cash income to owners is between 5% and 15
of verified cash equity, an override of 10% of gross
base rent, plus any percentage of sales overrides
only over a base of $1,250,000 will be paid to the
City.
C. If net cash income to owners is equal to, or greater
than 15% of verified cash equity, an override of 20%
of gross base rent, plus any percentage of sales over-
rides only over a base of $1,250,000 will be paid to
the City.
d. Upon full repayment of $1,200,000 of the $1,445,000
loan from the City of Ithaca, the requirement for
override payments to the City of Ithaca will cease.
BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and
directed to execute any and all documents, agreements and instruments
necessary to implement the intent of this Resolution, subject to the
recommendation of the City Attorney.
Carried
1 Absent - Boothroyd
Ithaca Urban Renewal Agency #S- -Early Entry for Construction
I3y Agency Member Dennis: Seconde by Agency Member Reed
WHEREAS, the Ithaca Center Development Company has requested permis-
sion for early entry onto the project site for the commencement of
construction;
NOW, THEREFORE, BE IT RESOLVED, that upon the recommendation of the
City Attorney, the Chairman of the Agency is authorized to execute
any and all documents, agreements and instruments necessary to enable
early entry onto the project site for the commencement of construction.
Carried
1 Absent - Jones
-9-
October 27, 1980153
Common Council Resolution #S- -Early Entry for Construction
By Al erman Nichols: Seconded y Al erman Holman
WHEREAS, the Ithaca Center Development Company has requested
permission for early entry onto the project site for the commence-
ment of construction;
NOW, THEREFORE, BE IT RESOLVED, that upon the recommendation of the
City Attorney, the Mayor is authorized to execute any and all
documents, agreements and instruments necessary to enable early
entry onto the project site for the commencement of construction.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Carried
1 Absent - Boothroyd
Common Council Resolution #6- -Storm Sewer Relocation
By Alderman Nic ols: Secon ed by Alderman Dennis
WHEREAS, the Board of Public Works has approved the relocation of
c ` a twenty -four inch storm sewer on the Ithaca Center site;
NOW, THEREFORE, BE IT RESOLVED, that the Mayor is authorized to
enter into an agreement with the Ithaca Center Development Company
to provide for a reduction in land purchase payments of $10,666 in
years 1982, 1983 and 1984, for a total amount not to exceed $32,000
(no interest associated therewith), and said payments to be made as
an offset against monies due on said land purchase, and
BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and
directed to execute any and all documents, agreements and instruments
necessary to implement the intent of this Resolution upon recommenda-
tion of the City Attorney, and
BE IT FURTHER RESOLVED, that prior to effectuation of said offset in
1982 the Ithaca Center Development Company shall present certified
documentation as to total cost of said storm sewer relocation and
sidewalk construction, and
BE IT FURTHER RESOLVED, that if said certified cost documentation is
less than $32,000, then the difference between the certified cost and
$32,000 shall be deducted from the offsets above provided, first with
respect to the first year's (19821s) offset, and then from later
years' offsets, if necessary, such that the total offset shall equal
total certified cost, and not exceed $32,000.
Discussion followed on the floor.
A vote on the resolution resulted as follows:
Carried
1 Absent - Boothroyd
Ithaca Urban Renewal Agency #6 -- Storm Sewer Relocation
By Agency Member Dennis: Seconded by Agency Member Reed
WHEREAS, the Board of Public Works has approved the relocation of a
twenty -four inch storm sewer on the Ithaca Center site;
NOW, THEREFORE, BE IT RESOLVED, that the Chairman of this Agency is
authorized to enter into an agreement with the Ithaca Center Develop-
ment Company to provide for a reduction in land urchase pay
$10,666 in years 1982, 1983 and 1984, for a total amount notmtots of
exceed $32,000 (no interest associated therewith), and said payments
to be made as an offset against monies due on said land purchase, and
BE IT FURTHER RESOLVED, that the Chairman of this Agency is hereby
authorized and directed to execute any and all documents, agreements
and instruments necessary to implement the intent of this Resolution
upon recommendation of the City Attorney, and
154 -10- October 27, 1980
BE IT FURTHER RESOLVED, that prior to effectuation of said offset
in 1982 the Ithaca Center Development Company shall present certified
documentation as to total cost of said storm sewer relocation and
sidewalk construction, and
BE IT FURTHER RESOLVED, that if said certified cost documentation is
less than $32,000, then the difference between the certified cost
and $32,000 shall be deducted from the offsets above provided, first
with respect to the first year's (1982's) offset, and then from later
years' offsets, if necessary, such that the total offset shall equal
total certified cost, and not exceed $32,000. 40)
Carried
1 Absent - Jones
Ithaca Urban Renewal Agency #7
By Agency Mem er Reed: Seconded by Agency Member Dennis
BE IT RESOLVED, that the Chairman of the Ithaca Urban Renewal Agency
is hereby authorized and directed to execute any and all documents,
agreements and instruments necessary for a closing, upon.the recom-
mendation of the City Attorney.
Carried
1 Absent - Jones
Common Council Resolution #7
By Alderman Nichols: econ ed by Alderman Schuler
BE IT RESOLVED, that the Mayor is hereby authorized and directed to
execute any and all documents, agreements and instruments necessary
for a Closing, upon the recommendation of the City Attorney.
Carried
1 Absent - Boothroyd
ADJOURNMENT:
On a motion the meeting adjourned at 8:05 P.M.
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