The URL can be used to link to this page

Home My WebLink AboutMN-CC-1983-05-24COMINION COUNCIL PROCEEDINGS CITY OF ITHACA, NEW YORK Special Meeting 8:1S P.I. l4 May 24, 1983 PRESENT: Mayor Shaw Aldermen (7) - Ban.ield, Dennis, Hol.d_,- worlch, Iiolman., 1`4yer , Schlather, Schuler ABSENT: AAd ermen (3) - Clynes, Hoffman, Killeen (Excused) (WW"', OTHERS PRESENT: City Attorney - Tavelli Building Commissioner - Hoard Dep. Planning Director - Si.everding Exec, Dir. INHS - Beth Prentice Project Mgr. Rental Dev. INHS - Steve Brouwer City Clerk r Rundle PLEDGE OF ALLEGIANCE: Mayor Shaw led all present in the Pledge of Allegiance to the American flag. 1! i SPECIAL ORDER OF BUSINESS: E z" Proposed UDAG Grant _APP-lication for INIIS•- - •henry St. John School. Building Cil Mayor Shaw read the following communication from Alderman Dan Hoffman: `l "May 24, 1983 Dear Mayor Shaw: I regret that I will not be able to vote at tonight's special Conu»on Council meeting on the Ithaca Neigh1,o) -hood llousing Service /UDAG pro• - posal. 1 am a strong supporter of iho Her,ry St.. John project, but: I realize that I may have a conflict of interest in this particular case. I am both a paid employee and a member of the Board. of Directors (OW001 of an agency that is currently ne:;c,i i ai iz,g 1")i11 INHIS for r er,i:al ;pace in the Henry St. John basement. The agency is not- for - profit but it would clearly benefit from reduced rental. rates for office tenant} in Henry St. John. Although t may not. techz;ical.ly have a. conflict:, because no personal profit is involved, I feel. uncomfortable in this position a3-1d wi 1' they' -fore ahsi ;ii ), 1,)-C)1-11 part z.n floc. vot_c. I would appreciate it very much if you would read this letter to the rest. of* Council before they begin t -hair (1(: I lberatioils on 1_ 11c and if you would send copies to those Council members who are absent tonight. Thank you, Sincer(1 y , Dan Hoffman cc: City Clerk Joe Rundle" Dep. Dir. of Planning & Development, Herman Sieverding, addressed the Council, describing the proposal for renovation of Henry St. John School hiti lding as outlined in the romm„ni cation delivered to t:lie Counc_i;E_ Lho prcvlous weekend', anc? 1,11; ), the, Plarzi,i_)lg staff feel this is the right move for the city to male at this time. Exec. Dir. of Ithaca Neighborhood Housing, Service, Beth Prentice, explained to the Council what the project will consist of, and asked Steve Brouwer, Project Manager of Rental Development for INHS, to explain the useage of the renovate.' building. Mr. Brouwer described, with the aid of a site plan, the proposed uses for the building, access to the various uses and parking facilities for them. Ms. Prentice and Mr. Broinver answered questions of the Council. Alderman Holman arrived at the meet ins; at 9:12 p.m. -2- May 24, 1983 Resolution By Alderman Dennis: Seconded by Alderman Banfield WHEREAS, Ithaca Neighborhood Housing Services (INNS) has been selected by the Ithaca City School Board to renovate the Henry St. John School_, and WHEREAS, the IN[ IS ) :e -use proposal is cons is tent wi th the City's goal of encouraging the development of low and moderate income housing, protects the surrounding residential neighborhood and addresses the objectives of the Housing Assistance Plan, and. WHEREAS, $125,000 in UDAG funds combined with $25,000 in CD funds will leverage the private loan commitment of $300,000 necessary to complete the financing for this project, and WHEREAS, the UDAG will be in the. form of a loan to INNS with the following payback terms: (1) 28% of surplus cash flow (2) 280 of residual upon re -sale, and WHEREAS, the IURA /CDA has recommended that the Common Council authorize the Mayor to sign and submit a UDAG application to HUD for the Henry St. John Project; now, therefore, be it RESOLVED, That the Common Council directs the Mayor to sign and submit a UDAG application to HUD with the assistance of the Director of Planning and Development arid. the City Attorney. Discussion followed on the floor. Amendment to Resolution By Alderman Sc lat er: Seconded by Alderman Holdsworth RESOLVED, the Resolution be amended as follows: 4th WHEREAS: "WHEREAS, the UDAG will be in the form of a loan to INNS with the following payback terms: 1) surplus cash flow per year in lieu of annual interest payments; 2) entire principal repayable upon. sale or transfer of the property by INHS; and 3) 280 of otherwise unencumbered proceeds upon sale of the premises." RESOLVED be changed to read: "RESOLVED, That the Common Council directs the Mayor to sign and submit a UDAG application to HUD with the assistance of the Director of Planning and Development and the City Attorney, with payback provisions along the lines set: forth above." Discussion followed on the floor. A vote on. the amendment resulted. as follows: Carried Unanimously Main Motion As Amended WHI- REAS, Ithaca Neighborhood housing Services (INHS) has been selects(' by the Ithaca City School Board t:o renovate the henry St. John Schoo' and WHEREAS, the INIIS re-use proposal is consistent with the City's goal of encouraging the development of low- and moderate- income housing, protects the surrounding residential neighborhood and addresses the objectives of the housing Assistance Plan, and WHEREAS, $125,000 in UDAG funds combined with $25,000 in CD funds will leverage the private loan commitment of $300,000 necessary to complete the financing foi• this project., and WHEREAS, the UDAG will be in the form of a loan to INHS with the following payback terms: -. 3 - 14r/ A" iMay 24, 1983 V 1) surplus cash flow per year in lieu of annual interest payments; 2) entire principal reparable upon sale or transfer of the property by I NI IS : and 3) 280 of otherwise unencumbered proceeds upon sale of the premises, and IVIIEREAS, the IURA /CDA has recomuen(ied I]IJt. the CC)M11101] Council author •r.e the Mayor to sign and submit a. UD\G app-lication to HUD for the Henry St. John Project; now, therefore, be it RESOLVED, That the Common :