HomeMy WebLinkAboutMN-IURA-2016-01-28Approved: 2/25/16
108 East Green Street
Ithaca, New York 14850
(607) 274-6559
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MINUTES
ITHACA URBAN RENEWAL AGENCY (IURA)
Common Council Chambers, City Hall
8:30 A.M., Tuesday, January 28, 2016
Members: Svante Myrick, Chris Proulx, Tracy Farrell, Karl Graham, Eric Rosario
Excused: Stephen Smith (Common Council Liaison)
Staff: Nels Bohn, Lynn Truame, Charles Pyott
Guests: None
I. Call to Order
Chair Myrick called the meeting to order at 8:40 A.M.
II. Agenda Additions/Deletions
None.
III. Public Comment
None.
IV. Review of Draft Meeting Minutes: December 8, 2015
Farrell moved, seconded by Rosario, to approve the December 8, 2015 meeting minutes, with
no modifications.
Carried Unanimously 5‐0
V. Neighborhood Investment Committee (NIC)
A. Neighborhood Housing Initiative: Amend Funding Contract for Ithaca Neighborhood Housing
Services (INHS) — 203 Third Street Project
Farrell explained the 203 Third Street construction project requires a time extension for project
completion. (Bond‐funded projects are not eligible for reimbursement until construction is
complete, a qualified tenant has been identified, and INHS closes on the property with that
tenant.) Construction was delayed due to zoning considerations and high construction bids, which
placed it behind schedule. INHS expects to complete construction in February 2016. It would like
an extension until July 31, 2016.
Ithaca
Urban
Renewal
Agency
IURA Minutes
January 28, 2016
Page 2 of 8
Moved by Farrell, seconded by Graham:
Neighborhood Housing Initiative — Amend Funding Contract
for INHS’ 203 Third Street Project
WHEREAS, Ithaca Neighborhood Housing Services (INHS) received an award of Neighborhood
Housing Initiative Bond funding to construct a new affordable single‐family home at 203 Third
Street, and
WHEREAS, due to unexpectedly high construction pricing, in April 2015 INHS requested and
received an award amendment, increasing the funding for the project from $49,417 to $99,417,
and
WHEREAS, NHI Bond funds are not closed and disbursed by the IURA until construction of the
residence has been completed and an income‐eligible buyer has been identified and approved
to purchase the property, and
WHEREAS, because the start of construction on this residence was delayed due to
circumstances beyond INHS’ control, and
WHEREAS, the residence was not be completed by December 31, 2015, which was the original
deadline for closing and disbursing funds, and
WHEREAS, a seven‐month extension will be required to provide sufficient time to complete
construction, and identify, underwrite, and approve an income‐qualified buyer, and
WHEREAS, the Neighborhood Investment Committee considered this extension at their January
8, 2016, meeting and recommends its approval, now therefore be it
RESOLVED, that the IURA hereby extends the closing deadline for the 203 Third Street project
to July 31, 2016, and be it further
RESOLVED, that the IURA Chairperson, upon advice of the IURA Attorney, is hereby authorized
to execute all necessary and appropriate documents to implement this resolution.
Carried Unanimously 5‐0
B. Committee Chairperson Report
Farrell reported that the Committee discussed the Beverly J. Martin Elementary School Housing
Stability Program, designed to assist homeless families and help maintain stability in the school
population. The intent is to collaborate with Tompkins Community Action and other local
organizations to put the program together. A similar program has worked very well in Tacoma,
Washington. It would support five families.
IURA Minutes
January 28, 2016
Page 3 of 8
Truame noted the Ithaca Housing Authority expressed interest in participating; however, it needs
its board to institute a Housing Choice Voucher and Public Housing unit preference for program
participants and it could not do that before the 2016 application deadline. The IURA could fund
the program internally this year (using returned 2014 HOME funds from the 402 S. Cayuga St.
project), but it need some assurance that the Ithaca Housing Authority would take over
responsibility for the program after the first year.
VI. Governance Committee (GC) Report
A. FY2016 Federal Budget Funding for HUD Programs: Report
Rosario remarked that compared to the IURA’s original funding projections last year, the current
Federal funding situation appears somewhat encouraging. As noted in Bohn’s 1/5/16
memorandum to the Committee, the FY2016 Omnibus Appropriations Bill was signed into law on
December 18, 2015, establishing CDBG and HOME funding levels comparable to last year’s levels.
B. IURA Strategic Planning Update & Discussion
Rosario noted that despite the encouraging news regarding the Federal budget, the IURA still has
to address reduced funding levels for the entitlement community, over the next few years
resulting from the 2011 Budget Control Act that limits appropriations for discretionary defense
and non‐defense programs each year through 2021. As a result, the Committee is pursuing a
strategy to reduce spending and general overhead costs, while increasing program income (e.g.,
Cayuga Green project). To that end, Bohn generated a 1/5/16 IURA Strategic Planning Update
memorandum, highlighting three focus areas that may offer the greatest return on investment for
IURA resources: (1) fees‐for‐services; (2) increase program income; (3) and property
dispositions/urban renewal projects.
Myrick responded that Bohn’s suggestions appear logical, especially the fees‐for‐services. (He
knows the Industrial Development Agency, for example, does the same thing, on a percentage
basis.)
Bohn clarified that the IURA is not legally permitted to charge fees to CDBG and HOME funding
recipients, though certain project delivery expenses are eligible grant expenses.
Rosario noted that Bohn spoke with INHS staff about its playing a role in a fees‐for‐service
initiative, but INHS indicated it does not want to extend its services beyond simple income
verification.
Bohn remarked the IURA could provide some of those kinds of services.
IURA Minutes
January 28, 2016
Page 4 of 8
Proulx asked if the intent is to include Cornell‐City housing fund (Tompkins County Housing
Affordability fund) projects. He knows it has struggled in the past with the inability of non‐INHS
housing projects to demonstrate their monitoring and compliance‐related organizational capacity.
He suggested the IURA could manage that for them.
Cornish asked if the IURA has ever charged for those kinds of services. Bohn replied that it has
only charged for actual out‐of‐pocket costs (e.g., legal fees, consulting fees).
Farrell recalled a prior suggestion for having the IURA provide more loans, rather than outright
grants. While that may not always be a solution, it is important to keep that in mind as another
option.
Bohn remarked that shifting more IURA loan resources to housing projects should also provide
that kind of opportunity.
Proulx recommended the IURA fund fewer projects, reduce its number of grants, and streamline
its focus — perhaps making a few larger investments in activities/programs that are proven to
work. Bohn replied that the Committee discussed that as well.
Rosario observed that the INHS Community Housing Trust project on 402 S. Cayuga St. is having
difficulty with the property tax issue — the homeowner is being assessed at the market value of
the property, but is not in fact able to sell it at market value and is still being required to pay the
tax, which seems unfair. Originally, the IURA believed an arrangement with the County might be
made. The County, however, wants to handle the issue through proposed new legislation to
clarify the issue. It is not clear how long that would take.
Bohn responded that the County does have a draft resolution to address the mismatch between
assessed value and the maximum resale price for community housing land trust properties, which
will be reviewed next month. The IURA could formally submit its comments on the resolution at
that time or take up its own resolution.
Rosario recalled the City used to institute a program that established a ceiling on the property tax
community members had to pay, if they met certain criteria. Myrick replied that he believes that
was a County program. Cornish added Rosario is probably thinking of the STAR Exemption
Certification System.
Rosario suggested the City identify a way to help address that particular issue, to demonstrate to
the County that it has a real investment in the process.
Bohn remarked that New York State does have a list of allowable exemptions; however, the City
would need State enabling legislation specifically enacted for it. Also, he does not believe there is
an allowable exemption based solely on a homeowner’s income.
IURA Minutes
January 28, 2016
Page 5 of 8
C. Review of IURA Financials: December 2015
Bohn reported The Art and Found LLC has not responded to the second (and most strongly
worded) letter sent to it regarding its loan delinquency and default. He will consult the City
Attorney. The issue will probably revolve around whether it is worth pursuing collection on the
amount owed, since the IURA has reason to believe The Art and Found’s owner lacks financial
reserves.
Bohn reviewed the loan repayment report and noted the State Theatre is no longer behind in its
payments and the Bandwagon Brew Pub has paid off its loan. Both the Finger Lakes School of
Massage and Madeline’s Restaurant have drawn down the majority of their loan funds. Bohn
reported that there were some end‐of‐year delays associated with some of the lease payments;
however, most of those have been resolved. He is not sure if Southside Community Center is
current on its lease at 530 W. Buffalo though a payment was received recently. The Southside
Community Center has submitted a letter indicating it is re‐evaluating its Recycled Ithaca Bicycles
(RIBS) program.
Bohn noted most of the grants are on schedule for project completion and expenditure of funds,
except one or two. He noted the Ithaca Downtown Alliance’s (DIA) Business Boost program is
behind in reporting. This program was intended to help mitigate the impact of reconstruction on
Commons area businesses by enhancing on‐line and social media marketing of downtown
businesses. The IURA is still waiting for data from the DIA on what exactly has been accomplished.
D. Committee Chairperson Report
None.
VII. Economic Development Committee (EDC) Report (DID NOT MEET)
VIII. Other Business
A. Community Housing Development Fund, Round #10 — Authorize Disbursement of $165,000
Pursuant To Executed MOU
Moved by Proulx, seconded by Rosario:
Community Housing Development Fund, Funding Round #10 — Authorize Disbursement
of $165,000 Pursuant to Executed MOU
WHEREAS, the Community Housing Development Fund (CHDF) was established in 2009, and
renewed in 2015, by Memorandum of Understanding (MOU) among and between the City of
Ithaca, Tompkins County and Cornell University to raise and award funds to increase the
supply of permanently affordable housing in the County, and
WHEREAS, on an annual basis Cornell University contributes $200,000 to the CHDF and the
City of Ithaca and Tompkins County each contribute $100,000, and
IURA Minutes
January 28, 2016
Page 6 of 8
WHEREAS, the CHDF Program Oversight Committee (POC) recommends round #10 funding of
$500,000 for the following three affordable housing projects:
Community Housing Development Fund
Round #10 Recommended Funding Awards
Applicant Project # Afford.
Units Location Funding ($1,000s)
Cornell County City Total
Habitat for
Humanity Breaking Ground 2 owner-
occupied
(C)Ithaca
-101-107 Morris Ave.0 0 8080
INHS
Scattered Site
New Construction
2015
8 owner-
occupied
(C)Ithaca
-210 Hancock St
-304 Hector St.
235 0 85320
INHS 210 Hancock
Redevelopment
6 add’l
rental
(C)Ithaca
-210 Hancock St. 0 100 0100
Totals 235 100 165500
and,
WHEREAS, the Common Council determined that City contributions to the CHDF should be
used solely to assist projects located within the City of Ithaca, and
WHEREAS, City funds committed for round #10 funding are derived from Gateway Loan
proceeds that originated from sale of City‐owned land for the Eddygate project located at 110
Dryden Road, and are administered by the IURA, and
WHEREAS, pursuant to the 2015 MOU, Tompkins County administers the CHDF, including
collection of contributions to the CHDF and distribution of funds to project sponsors, and
WHEREAS, on May 26, 2015 the City of Ithaca Planning & Development Board, acting as Lead
Agency, issued a negative declaration that the 210 Hancock Redevelopment project, including
owner‐occupied units, will result in no significant impact on the environment, and
WHEREAS, construction of single‐family and two family residences is a type II action under
SEQR/CEQRO, therefore no environmental review is required for the proposed projects at 101‐
107 Morris Avenue or 304 Hector Street, now; therefore, be it
RESOLVED, that subject to Common Council approval, the IURA hereby authorizes an
expenditure of up to $165,000 for the following affordable housing projects to implement the
round #10 recommended funding awards through the Community Housing Development
Fund:
Amount: $80,000
Applicant: Habitat for Humanity of Tompkins and Cortland Counties
Project Name: Breaking Ground: Habitat for Humanity’s inaugural Ithaca Builds!
Project Summary: Construction of 2 new ownership units at 101‐107 Morris Avenue, Ithaca, NY
Amount: $85,000
IURA Minutes
January 28, 2016
Page 7 of 8
Applicant: Ithaca Neighborhood Housing Services, Inc. (INHS)
Project Name: Scattered Site New Construction 2015 ‐ INHS
Project Summary: Construction of 8 new for‐sale housing units at two sites: 7 units at 210
Hancock St., Ithaca, NY, and one unit at 304 Hector Street, Ithaca, NY, and
RESOLVED, that such funds shall be derived from Gateway Loan Proceeds, and be it further,
RESOLVED, that the IURA Chairperson, subject to advice of IURA legal counsel, is hereby
authorized to execute a fiscal agency agreement with Tompkins County to implement this
resolution.
Carried Unanimously 5‐0
B. IURA Chairperson Report
Myrick reported that work is still being done on producing a draft Inclusionary Zoning Ordinance
proposal.
Myrick announced that the State Street Triangle Project has formally withdrawn its Site Plan
Review application.
C. Common Council Liaison Report
None.
D. Staff Report
Cornish reported that Elmira Savings Bank purchased some property in Ithaca's West End, which
they plan to develop. Unfortunately, when they presented their proposal to the Planning Board,
although the renovations to one building were acceptable, they planned to demolish the other
existing rental housing buildings and construct considerable surface parking. The Planning Board
strongly encouraged them to subdivide the property and sell the existing housing.
Bohn reported the Neighborhood Investment Committee now has a new member, Paulette
Manos.
Bohn reported that the 210 Hancock Street project will begin its environmental abatement
program in February 2016 and break ground in March 2016.
Bohn indicated the IURA will be undergoing its annual financial audit, starting in 3 weeks. The City
has made progress in accelerating its own audit schedule and is working to complete the 2014
fiscal year.
IURA Minutes
January 28, 2016
Page 8 of 8
IX. Adjournment
The meeting was adjourned by consensus at 9:45 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.