HomeMy WebLinkAboutMN-CC-2006-09-27COMMON COUNCIL PROCEEDINGS
CITY OF ITHACA, NEW YORK
Special Meeting 6:30 p.m. September 27, 2006
PRESENT:
Mayor Peterson
Alderpersons (10) Coles, Seger, Berry, Clairborne, Tomlan, Zumoff, Gelinas,
Townsend, Cogan, Korherr
OTHERS PRESENT:
City Clerk – Conley Holcomb
City Attorney – Hoffman
City Controller – Thayer
Community Development Director – Bohn
Asst. Fire Chief – Parsons
PLEDGE OF ALLEGIANCE:
Mayor Peterson led all present in the Pledge of Allegiance to the American Flag.
Community Development Director Bohn explained the Restore NY Initiative process.
He stated that the local match for the GIAC Project has already been met with prior
financial commitments to the building with capital project funds and CDBG monies.
PLANNING, ECONOMIC DEVELOPMENT & ENVIRONMENTAL QUALITY
COMMITTEE:
Restore NY Initiative - Support for Greater Ithaca Activities Center Grant
Application - Resolution
By Alderperson Tomlan: Seconded by Alderperson Gelinas
WHEREAS, in the enacted 2006-07 New York State Budget, Empire State
Development Corporation (“ESDC”) received a $300 million appropriation to implement
the Restore NY Communities Initiative (“Restore NY”) to revitalize urban areas and
stabilize neighborhoods as a means to attract residents and businesses, thereby
improving municipal finances and the wherewithal to grow their tax and resource base,
and
WHEREAS, on August 11, 2006, Governor George Pataki announced a new program,
Restore NY, which will fund municipally-sponsored projects for rehabilitation or
reconstruction in vital urban centers across the state, and
WHEREAS, ESDC issued a Request for Funding Proposals (“RFFP”) for disbursement
of $50 million through the first funding round of the Restore NY program with funding
proposals due by Friday, September 15, 2006, with certification of local legislative
support and proof of public hearing conducted by September 29, 2006, submitted by
October 2, 2006, and
WHEREAS, ESDC officials report that there will be subsequent funding rounds of $100
million and $150 million, and
WHEREAS, no single municipality will receive more than $5 million of assistance in the
first funding round, and
WHEREAS, generally, funding will be awarded in a geographically proportionate
manner based on qualified applications received, and
WHEREAS, special consideration will be given to projects located in Brownfield
Opportunity Areas or Empire Zones, those affected by recent and unusual flooding in
June 2006 and designated as federally declared disaster areas, and communities with
severe economic distress and/or dislocation, and
WHEREAS, each award must be matched by at least a 10% local match, and
WHEREAS, City staff attended a workshop with ESDC officials on August 15, 2006, and
September 27, 2006
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WHEREAS, City staff recommends submission of a first-round project to undertake a
comprehensive renovation of the Greater Ithaca Activities Center (GIAC) building, the
hub of community life in Ithaca’s downtown neighborhoods for cultural, social,
recreational, educational and job training, cultural and social programs, particularly for
youth and teens, and
WHEREAS, the GIAC building was constructed in 1923 as a public school and
transferred to the City in 1981 for operation of a community center, and
WHEREAS, the 2002 City of Ithaca Building Assessment Program, conducted by
Thomas Associates, Architects + Engineers PC, documented a widespread need for
facility improvements at the GIAC building, including replacement of the original 1923
heating system, substantial masonry restoration/repair, extensive window replacement
to improve energy efficiency, and numerous upgrades to enhance specific programming
conducted in the building, and
WHEREAS, based on the 2002 City of Ithaca Building Assessment Program, IURA staff
developed an updated project renovation scope and budget estimate in conjunction with
the GIAC Director and Engineering Division staff resulting in a proposed additional
building rehabilitation project estimated to cost $1,685,844; and
WHEREAS, the City has already invested over $346,000 of municipal funds in recent
and ongoing upgrades and repairs to the GIAC building, thereby satisfying the 10%
local match requirement; now, therefore, be it
RESOLVED, That the City of Ithaca Common Council hereby endorses submission of
the Greater Ithaca Activities Center Building Rehabilitation project at approximately $1.7
million as the City’s top priority project for funding through the Restore NY initiative, and
be it further
RESOLVED, That the City of Ithaca Common Council hereby finds the proposed project
is consistent with the existing local and regional plans; the proposed financing is
appropriate for the specific facility or project; the project facilitates effective and efficient
use of the existing and future public resources so as to promote both economic
development and preservation of community resources; and where applicable, the
project develops and enhances infrastructure and/or facilities in a manner that will
attract, create, and sustain employment opportunities, and be it further
RESOLVED, That, if awarded, the IURA is hereby authorized to administer and
implement the Restore NY grant award, and be it further
RESOLVED, That the Mayor, upon advice by the City Attorney, is hereby authorized to
execute a funding agreement with ESDC, and any other documents necessary, to
receive the Restore NY grant, and be it further
RESOLVED, That a capital project is hereby established in the amount of the Restore
NY grant award requested, but not to exceed $1,685,844, and be it further
RESOLVED, That necessary funding for said project shall be derived from a General
Fund advance with later repayment with the issuance of serial bonds, and be it further
RESOLVED, That establishment of said Capital Project shall be contingent upon ESDC
grant approval.
Amending Resolution:
By Alderperson Tomlan: Seconded by Alderperson Korherr
RESOLVED, That a 15th Whereas clause be added to the resolution that would read as
follows: “Whereas, a public hearing on the Restore NY Grant Application was held on
September 20, 2006, and”
Carried Unanimously
September 27, 2006
3
Main Motion as Amended:
A vote on the Main Motion as Amended resulted as follows:
Carried Unanimously
Assistant Fire Chief Parsons addressed Council to discuss the safety and security
issues surrounding the Ithaca Gun building. He reported that 200 mattresses had been
removed from the building. The mattresses are believed to have been left over from the
previous owner who used the building for storage. He further noted that friable
asbestos is present throughout the building and the walls and floors are in an unstable
condition. The building and property have been officially secured, however upon a
recent inspection the Fire Department found areas that had been missed, and where
the security measures had been breached. Since that inspection, repairs have been
made to the fencing surrounding the property and the building has been re-secured.
The City has requested that the Department of Environmental Conservation (DEC) take
possession of the fence to keep people from walking through the site and spreading
contamination to other areas via their shoes. He stated that the DEC will be meeting
on-site on September 28, 2006 with the Mayor, City Attorney, Fire Department staff, and
possibly representatives of the Environmental Protection Agency (EPA) and
Congressman Hinchey.
2.2 Conditions to Be Met Prior to Release of Restore NY Monies for Former Ithaca
Gun Site
By Alderperson Tomlan: Seconded by Alderperson Korherr
WHEREAS, the owner of a portion of the former Ithaca Gun Company property, Fall
Creek Redevelopment, LLC (“owner”), has requested that the City of Ithaca sponsor a
Restore NY funding proposal pursuant to which the owner would remediate owner’s
environmentally-impaired property at that site, convert a portion of it into a mixed-use
residential and office building, and donate the remainder to the City for consolidation
with the Ithaca Falls Natural Area; and
WHEREAS, in their current, abandoned and contaminated condition, the former Ithaca
Gun factory buildings and site pose a significant hazard to the citizens of Ithaca and to
the environment; and
WHEREAS, contrary to the expectations of the City of Ithaca, an extensive lead
remediation program carried out by the US Environmental Protection Agency (EPA),
from approximately 2002 until 2004, did not remove or remediate all of the identified
areas of contaminated soil on property adjacent to the former Ithaca Gun property,
which adjacent property was at that time and currently is owned by the City of Ithaca;
and
WHEREAS, Fall Creek Redevelopment, LLC, entered into a Voluntary Clean-Up
Agreement with the State of New York, dated July 18, 2002, with regard to owner’s
property, which Agreement remains in effect and the terms of which Agreement
regarding remediation have not yet been carried out; and
WHEREAS, no further remediation of areas still contaminated, on the former Gun
Company property or on City-owned land, has occurred since the EPA project; and
WHEREAS, the City has a strong interest in acquiring title to the so-called “island”
portion of the former Ithaca Gun property (between the historic raceway and the Fall
Creek gorge), for the purpose of incorporating it into the Ithaca Falls Natural Area so as
to allow for public access to the spectacular views which said “island” affords, provided
that any such area to be conveyed to the City by Fall Creek Redevelopment, LLC, has
been remediated at least to the standards established by the New York State
Department of Environmental Conservation EPA for such use; now, therefore, be it
RESOLVED, That the following matters must be addressed to the satisfaction of the
Common Council, prior to the release of any monies awarded to the City of Ithaca for
the Restore NY program proposal for the former Ithaca Gun site:
September 27, 2006
4
1. Fall Creek Redevelopment, LLC, must take all reasonably necessary
steps to secure and post its property so as to prevent intrusion or
trespass, consistent with the directives of the Ithaca Fire Department.
Such steps shall be renewed as necessary until demolition and
remediation are complete. The City hereby consents to the use of the
fence on City property, west of the owner’s property, as part of a security
perimeter for the owner’s property, provided that such fence is reinforced
as necessary and properly maintained for that purpose by Fall Creek
Redevelopment, LLC, or its agents. Otherwise, owner must provide a
suitable fence on its own property.
2. Fall Creek Redevelopment, LLC must take all reasonably necessary steps
to prevent the recontamination of adjacent, City-owned land previously
remediated by the US Environmental Protection Agency, by unremediated
areas. At a minimum, the owner must (pending final, complete
remediation) properly maintain adequate, temporary coverings and other
appropriate measures on the areas currently covered (or intended to be
covered) by tarps initially put in place by the EPA, in order to minimize
sediment transport from those areas onto remediated areas.
3. A written agreement must be executed, between the City and Fall Creek
Redevelopment, LLC, committing the latter to convey to the City, as a
donation, the portion of its property north of the raceway (fully
remediated), together with a permanent easement over the remainder of
its property and the bridge across the raceway, to accommodate public
access from Lake Street to the so-called “island” area, and be it further
RESOLVED, That prior to the release of any monies awarded to the City of Ithaca for
the reconstruction phase of the Restore NY program proposal for the former Ithaca Gun
Company site, Fall Creek Redevelopment, LLC shall have:
1. Remediated all contaminated areas on its property, outside of the
buildings, according to applicable New York State Department of
Environmental Conservation or EPA standards, and
2. Agreed in writing to cooperate fully as needed with the City or other
agencies with regard to the remediation of adjacent City owned property; it
being understood the owner has not agreed to remediate City-owned
property.
Carried Unanimously
Restore NY Initiative - Support for Former Ithaca Gun Remediation, Demolition
and Reconstruction as a Second Priority Grant Application Project - Resolution
By Alderperson Tomlan: Seconded by Alderperson Cogan
WHEREAS, in the enacted 2006-07 New York State Budget, Empire State
Development Corporation (“ESDC”) received a $300 million appropriation to implement
the Restore NY Communities Initiative (“Restore NY”) to revitalize urban areas and
stabilize neighborhoods as a means to attract residents and businesses, thereby
improving municipal finances and the wherewithal to grow their tax and resource base,
and
WHEREAS, on August 11, 2006, Governor George Pataki announced a new program,
Restore NY, which will fund municipally-sponsored projects for rehabilitation or
reconstruction in vital urban centers across the state, and
WHEREAS, ESDC issued a Request for Funding Proposals (“RFFP”) for disbursement
of $50 million through the first funding round of the Restore NY program with funding
proposals due by Friday, September 15, 2006, with certification of local legislative
support and proof of public hearing conducted by September 29, 2006, submitted by
October 2, 2006, and
September 27, 2006
5
WHEREAS, ESDC officials report that there will be subsequent funding rounds of $100
million and $150 million, and
WHEREAS, no single municipality will receive more than $5 million of assistance in the
first funding round, and
WHEREAS, generally, funding will be awarded in a geographically proportionate
manner based on qualified applications received, and
WHEREAS, special consideration will be given to projects located in Brownfield
Opportunity Areas or Empire Zones, those affected by recent and unusual flooding in
June 2006 and designated as federally declared disaster areas, and communities with
severe economic distress and/or dislocation, and
WHEREAS, each award must be matched by at least a 10% local match, and
WHEREAS, the owner of the former Ithaca Gun property, Fall Creek Redevelopment,
LLC, requests that the City of Ithaca sponsor a Restore NY funding proposal to convert
the environmentally impaired site into a mixed-use residential and office building, and
WHEREAS, the managing member of Fall Creek Redevelopment, LLC is Wally J. Diehl,
and
WHEREAS, the former Ithaca Gun factory is a long-abandoned factory with severe
environmental contamination in the building and on the premises stemming from its
prior industrial use, and constitutes a health and safety hazard and a blight on the
neighborhood, and
WHEREAS, Fall Creek Redevelopment, LLC acquired the former Ithaca Gun property in
2005, and
WHEREAS, in 2006 the Building Commissioner condemned the building as unsafe and
ordered it demolished, and
WHEREAS, Fall Creek Redevelopment, LLC has entered into a strategic partnership
with O’Brien & Gere Engineers, Inc. to undertake a project to redevelop the former
Ithaca Gun site, and
WHEREAS, the proposed project is estimated to include the following major
components:
Asbestos abatement from the building
Lead removal from the building
Building demolition
Site environmental remediation
Construction of a 97,100 SF building containing approximately 75 residential
condominiums and 9,000 SF of office space
Donation of the Gorge Overlook to the City Of Ithaca
Reconstruction of the pedestrian bridge leading to the Gorge Overlook
WHEREAS, the cost of environmental remediation and building demolition is estimated
at approximately $2.4 million, and
WHEREAS, the cost of reconstruction is estimated at approximately $15.8 million, and
WHEREAS, Fall Creek Redevelopment, LLC represents they have expended
approximately $265,000 in prior environmental work at the site, and
WHEREAS, Fall Creek Redevelopment, LLC and O’Brien & Gere commit to fund
$950,000 towards the cost of remediation and building demolition and $14.3 million
towards the cost of reconstruction, and
September 27, 2006
6
WHEREAS, Fall Creek Redevelopment, LLC and O’Brien & Gere seek $2.98 million of
funding through the Restore NY Initiative for their $18.49 million project, and
WHEREAS, developer funding commitments satisfy the 10% local match requirement,
and
WHEREAS, no local match from the City of Ithaca is proposed, and
WHEREAS, a site control agreement between the property owner and the City is
required for project eligibility, although the City need not take ownership of the property,
and
WHEREAS, if a municipality submits more than one project it must prioritize the projects
submitted; now, therefore, be it
RESOLVED, That the City of Ithaca Common Council hereby endorses submission of
an application for $2.98 million for the Former Ithaca Gun Site Environmental
Remediation, Demolition and Reconstruction project as the City’s second priority project
for funding through the Restore NY initiative, and be it further
RESOLVED, That the City of Ithaca Common Council hereby finds the proposed project
is consistent with the existing local and regional plans; the proposed financing is
appropriate for the specific facility or project; the project facilitates effective and efficient
use of the existing and future public resources so as to promote both economic
development and preservation of community resources; and where applicable, the
project develops and enhances infrastructure and/or facilities in a manner that will
attract, create, and sustain employment opportunities, and be it further
RESOLVED, That the Mayor, upon advice from the City Attorney, is hereby authorized
to execute a site control agreement substantially in conformance with the attached
“Proposed Control Agreement”, dated 9/14/06, or an alternate agreement no less
protective of the City, and be it further
RESOLVED, That, if awarded, the IURA is hereby authorized to administer and
implement the Restore NY grant award, and be it further
RESOLVED, That the Mayor, upon advice by the City Attorney, is hereby authorized to
execute a funding agreement with ESDC, and any other documents necessary, to
receive the Restore NY grant.
Amending Resolution:
By Alderperson Tomlan: Seconded by Alderperson Cogan
RESOLVED, That the 19th Whereas clause be amended to read as follows:
“Whereas, Fall Creek Redevelopment, LLC and O’Brien & Gere commit to fund
$950,000 towards the cost of site remediation and $14.3 million towards the cost of
building reconstruction, and”
Carried Unanimously
Amending Resolution:
By Alderperson Tomlan: Seconded by Alderperson Zumoff
RESOLVED, That a 25th Whereas clause be added to the resolution to read as follows:
“Whereas, a public hearing on the Restore NY grant application was held on September
20, 2006; now therefore, be it”
Carried Unanimously
Alderperson Coles stated that she can not support this resolution as she feels that the
property owner is responsible for the remediation of the site. She further stated that the
property owner entered into an agreement with the EPA for clean-up that has not been
conducted and no plan for the clean-up has been developed.
September 27, 2006
7
Community Development Director Bohn explained that the grant only allows for building
activities not property activities ($2.4 million for clean-up, $1.46 million through grant/$1
million from property owner). There is a draft plan for building clean-up that needs to be
further developed. He further stated that projects that have reconstruction components
have a better chance at funding because banks are reluctant to loan money for an
unclean site.
Peter Grevelding, Senior Vice President, O’Brien & Gere Engineers, Inc. stated that
there is no documented plan yet for site clean-up, but discussions have been held with
the DEC. The grant application only required a work plan for the building, not the site,
and the grant application was pulled together in a short period of time.
Alderperson Korherr voiced her strong support for this Resolution, and she encouraged
all Council members to support it as well given the potential health and safety risks for
the surrounding neighborhood and students who have been walking through the site
and occupying the building.
Alderperson Cogan stated that he supports the resolution and acknowledged that other
issues still need to be resolved.
Alderperson Berry stated that she supports the resolution but expressed reservations
regarding political pressures to submit the grant.
Call the Question:
By Alderperson Berry: Seconded by Alderperson Townsend
RESOLVED, That the question be called on the resolution.
Carried Unanimously
Main Motion as Amended:
A vote on the Main Motion as Amended resulted as follows:
Ayes (9) Seger, Berry, Clairborne, Zumoff, Tomlan, Gelinas, Townsend,
Korherr, Cogan
Nays (1) Coles
Abstentions (0)
Carried
ADJOURNMENT:
On a motion the meeting adjourned at 8:15 p.m.
______________________________ _______________________________
Julie Conley Holcomb, CMC Carolyn K. Peterson,
City Clerk Mayor