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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 2 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