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HomeMy WebLinkAboutMN-IURA-1993 Minutes of the Ithaca Urban Renewal Agency January 7, 1993, 10 am Third Floor Conference Room, City Hall Present : Benjamin Nichols, Susan Cummings, Doug Dylla, Clarence Reed, Matthys Van Cort, Herman Sieverding for item IV and V, Patricia Norton, Wies van Leuken. Notice of Anne Jones' absence was received prior to the meeting. I . Call to order The meeting was called to order at 10 :10 am, by Susan Cummings, Acting Chair. II. Approval of Minutes of December 1, 1992 The minutes of the meeting of December 1, 1992 were approved as amended. The amendments were as follows: under item III, third paragraph "Shalomar" was replaced by "the House of Shalimar" and under item III, sixth paragraph, the word "adopt" was replaced by "complete the 5 year CHAS planning guidelines" . The meeting was then turned over to the Chair, Benjamin Nichols. III . Staff Reports 1 . 1993 CDBG projects Norton reported that there is a possibility that HUD will increase the funding limit for the comprehensive grants application to $900, 000 . Norton showed the Agency a map of the proposal by Rick Cowles for Landmark Square. Cummings is very concerned about the loss of housing units. She suggested that part of an adjacent site might ' be used to expand the project . The City has a shortage of efficiency housing units . Van Cort observed that the front part of the site will require rezoning. The Mayor stated that the rezoning of the Route 13 Corridor is under discussion. HUD's deadline for the CDBG Application is expected to be in April. Norton listed the tentative schedule of meetings she is setting up for the application cycle. The,, Agency approved the schedule, including the joint public hearing of the IURA and the CAC. Minutes IURA January 7, 1993 Norton listed the proposals for projects that have been submitted for this year's application. Proposals were received from INHS, Challenge Industries and the Groton Community Health Clinic. Harry Sicherman will meet with all project sponsors during his visit to Ithaca planned for January 20 . III-2 . CAC Appointments The Mayor announced that Carol Chernikoff and Lilly Tucker have been appointed to the CAC. III-3 . Extension of Contract with EastWest Planning and Development Associates The contract for consulting services with EastWest Planning and Development Associates expired on December 31, 1992 . Norton proposed extending the contract till December 31, 1993 . She asked that the 2 different rates, one for economic development ($60) and one for CDBG Administration ($50) be adjusted to a uniform rate of $60 per hour for all services. She also requested that the mileage reimbursement be adjusted to $ .28 per mile, the IRS rate. The ti �hL�4 R Agency approved these changes. Tvset an overall spending limit for the contract at $15, 000, which may be renegotiated if necessary. The Agency is very satisfied with the services of the EastWest Planning Associates. Dylla moved and Cummings seconded a resolution to extend the contract with EastWest Planning and Development Associates for another year, with the approved amendments. RESOLVED, that the IURA approves the request for a contract renewal with EastWest Planning and Development Associates and directs and authorizes the Mayor to sign such a contract with will include the new rate for all consulting services of $60 per hour and a mileage reimbursement rate of $ .28 per mile. The overall limit of the contract will be $15, 000 . Approved unanimously. IV. Economic Development 1 . Digicomp Research Co - Lease Approval Sieverding distributed his memo to the Agency regarding Digicomp Lease Negotiations, dated January 6, 1993 . The memo was entered into the minutes . The Agency discussed the requests listed in the memo. The Agency agreed that a firm commitment from Om Gupta, President of Digicomp, 2 Minutes IURA January 7, 1993 to sign a lease was required before any more meetings were to take place. If such a commitment was received the Agency was willing to discuss the terms for setting the sale price of the site and the sale's schedule. The issue of changing the restrictions on allowable uses in the event Gupta sells the site was discussed in detail . The Mayor stated that the Agency could not agree to anything that would disagree with the original purpose of the Carpenter Business Park. The park was developed to promote light industrial, manufacturing and related jobs. The use of retail was expressly disallowed. Reed confirmed that the original purpose of the CBP was to promote industrial development and job creation. To reach that goal, rules were set up that were reasonable and designed to protect the community's interest in the site. Reed stated that government was in the unique position to set up rules and develop long term goals to improve the quality of life in the community while not being subjected the time constraints of the business community. He strongly objected to modifying such rules for an individual's benefit . Cummings agreed with Reed and added that the other tenants would be at a disadvantage if the Agency agreed to lift the restriction on retail for Gupta. It was established that all Industrial Parks have restrictions pertaining to their use. Reed added that the increased parking needs of a retail business would become a problem for the Park. It was noted that the use of subsidized industrial land for retail was a misuse of the subsidy. Land sold for retail is sold at a much higher price. Action taken: The Agency decided that they would adhere to the original mandate governing the use of the Carpenter Business Park. Therefore they will not remove the restriction on retail use. The Agency was prepared to discuss changing the sale's schedule and the computation method of the sale's value but only if Om Gupta showed a firm commitment to signing the lease after the changes were made. They further determined that if such a commitment were to be made Gupta himself should go before the IURA and the Common Council to explain why these changes were necessary. IV-2 . UDAG Loan Agreement Sieverding briefed the Agency on the closing of McCurdy's . Since the UDAG Note and Mortgage are with the "City of Ithaca" , Common Council will decide on any revision to the Note and Mortgage. 3. Minutes IURA January 7, 1993 Comex Plaza Associates has indicated it will continue its payments to the City while it attempts to re-lease the property. Plans for renovation of the building are in progress and will be reviewed and approved by the City. V. Budget and Administration 1 . 1993 Cost of Living Increase CD Staff The Agency approved the 1993 Salary Range for Staff salaries reflecting a 5% cost of living increase. The change was made to be effective as of January 1, 1993 . The new schedule will become part of the CD Manual . RESOLVED, that the IURA approves the 1993 Salary Range for Staff Salaries, reflecting the 5% cost of living increase effective as of January 1, 1993, which will become part of the Community Development Manual . Approved unanimously. V-2 . CD Administrative Assistant Evaluation - Resolution Executive Session Action taken: RESOLVED, that the IURA approves a half step increase (2 .5%) increase in the salary of the Administrative Assistant to become effective January 1, 1993 . Approved unanimously. VI . Housing and Neighborhoods No reports V. Other Business Sieverding stated that the City has given Lama Real Estate a 6 month listing for the sale of the Annex. Agency members reacted favorably to the use of the windows of the Annex for general displays . Dylla hoped for increased use of empty spaces like these throughout the downtown business district . 4 Minutes IURA January 7, 1993 VIII .Adjournment The meeting was adjourned at 11 :30 am. C/W/Min/Minute93 .JAN le,,y e_c1 {.n -un.ea,, ck. 2'-2-c V.j )■.›)■.)Il 5 Minutes of the Ithaca Urban Renewal Agency February 2, 1993, 4 pm Third Floor Conference Room, City Hall Present: Benjamin Nichols, Susan Cummings, Doug Dylla, Matthys Van Cort, Patricia Norton, Wies van Leuken. Notice of Anne Jones' absence was received prior to the meeting. I . Call to order The meeting was called to order at 4:10 pm, by the Chair, Benjamin Nichols. II . Approval of Minutes of January 6, 1993 The minutes of the meeting of January 6, 1993 were approved with one amendment. The amendment was as follows: under item III-3, at the end of the first paragraph, the word "they" was replaced by The IURA" . III. Staff Reports 1993 CDBG Update - Schedule and Projects Norton reported that HUD has not announced its deadline for the 1993 CDBG application, nor has it ruled on the application' s funding limit. Norton has been asked to give a report to the Planning and Development Committee of Common Council on February 15 . The Agency did not require a further report on this. Norton gave the Agency an update on the proposal by Rick Cowles of Chartwell Plus Associates, for Landmark Square. She stated that 51 units will be rehabilitated. The playground will get a new play structure, one which is designed to discourage use as hangout for drug users . New and additional lighting will be installed. The basketball court will be improved with a new coat of asphalt . Cummings insisted that a very basic, sturdy playground be installed, otherwise it will end up being vandalized. Norton requested the Agency's comments on doing a mini master-plan on the Wood Street Park area with the expert help of Peter Minutes IURA February 2, 1993 Towbridge at an estimated cost of $4000 . Cummings objected to this plan. She wanted the improvements to be done but in a way that would not require extensive delays. The Agency concurred. The Mayor stated that CD staff could obtain the advice and input from the Parks Col[uuission before completing design on the project . Cummings suggested contacting the owners of the Red Lobster to see if they were willing to sell or donate the back of the adjacent site for affordable housing units. Norton stated that the Cooperative Extension is running an after school program, one day a week, from one of the Landmark Square apartments . They have applied for CDBG funds to expand the program. The Chief of Police is interested in developing a neighborhood watch program to increase the safety of the area. Dylla referred to a similar program in Troy. He will request additional information. The Landmark Square Project will impact on 4 grant criteria. Chartwell Plus Associates is requesting $450, 000 for their project . INHS is requesting $200, 000 for a Home Ownership Program. The difficulty in allocating more CDBG funds to this activity is that it only impacts one criterion. Norton commented that although HUD promotes home ownership, the grant criteria have not been revised to allow communities to score many points for home ownership programs . Staff members are negotiating with Challenge Industries on the proposal that was discussed at the IURA meeting of October 13 , 1992 . At this meeting the Agency had directed staff to offer a loan rather than a grant to fund the project. Challenge Industries is hesitant to accept a loan. The Agency authorized Norton to proceed with the negotiations, and to offer a flexible pay back schedule which could include a 0% interest rate. IV. Economic Development Policy Guidelines for Economic Development Revolving Loan Funds The document called "Ithaca Urban Renewal Agency Economic Development Financing - Policy Guidelines and Operating Plan, Draft #2" was entered into the minutes. This document was first drafted by Harry Sicherman. Draft #2 was approved by the Economic Development Committee at their recent meeting. 2 Minutes IURA February 2, 1993 The HUD guidelines for setting up a revolving loan fund are flexible. The Fund will require approval by Common Council; individual loans will be approved by the Agency. The Agency discussed not limiting the Fund to economic development loans. The different criteria for the different categories could be attached to the document. Dylla proposed setting priorities as well as criteria so proposals could be ranked by the Agency in the case of competing applicants . Criteria could include the number of jobs created, neighborhood impact, income level of population being served, retail use of loan, effect on business community, affirmative action. Dylla stated that the criteria could be used as a marketing tool . The criteria could be updated on an annual basis to reflect changing HUD priorities . The Agency further discussed the application fee of $50 . The Agency discussed a minimum amount for loans . Norton suggested that the City cooperate with Agora and TCAD. Applicants for small loans could be referred to these organizations for business counseling. It was further proposed to develop a common loan application for the IURA/RLF and the RLF's administered by TCAD. The Mayor suggested setting up standards after some experience has been gained. Norton will consult with HUD on whether all this is possible. Further discussion on the Fund was postponed till the next meeting. Norton will prepare a draft resolution for the Agency. The Agency discussed the membership for the Revolving Loan Committee. Committee membership should include 1 or 2 bankers, 1 accountant, 1 business person and members from the community. V. Budget and Administration Financial Statements The Small Cities Grants Summaries, dated December 1992 and January 1993, were entered into the minutes . Norton explained that the entry in the December statement for West Inlet Project for $150, 000 was an error. It should have been posted to the Appalachian Regional Commission/Carpenter Business Park account . It will be corrected on the next statement . The $150, 000 was an ARC grant received to reimburse the City for infrastructure expenses incurred in CBP. 3 Minutes IURA February 2, 1993 VI . Housing and Neighborhoods No reports VII. Other Business 1. -Family Medicine Center The Agency holds the Note on the Family Medicine Center. The Center has requested that the BZA grant a zoning variance for their expansion of the building. Dylla moved and Cummings seconded a resolution regarding the Family Medicine Center. RESOLVED, that the IURA, recognizing the great importance of the continuing downtown presence of the Family Medicine Center, has no objections to the granting of a zoning variance for the expansion of their building. Approved unanimously. VII-2 . CD Administrative manual Work on the CD Manual will continue after a meeting with the City Personnel Administrator. VII-3 . Center Ithaca Staff reported that the reorganization of Center Ithaca is still being decided in the courts. VII-4. West Inlet Project Norton reported that the State Appellate Division will rule soon on the West Inlet Housing Project. The Mayor will contact Jerry Weisburd to assure him of the continuing support of the city for his project . VIII .Adjournment The meeting was adjourned at 5:30 pm. C/W/Min/Minute93 .FEB L 4 G\• GQX _ Minutes of the JOINT MEETING AND PUBLIC HEARING Ithaca Urban Renewal Agency and Community Advisory Committee Tuesday, March 2, 1993, 4 pm Second Floor Conference Room, City Hall Present: IURA: Benjamin Nichols, Susan Cummings, Clarence Reed, Anne Jones CAC: Lucy Brown, Carol Chernikoff, Dierdre Silverman, Andy Foster, Michael Cannon, Carol Mallison, Pam Mackesy (CAC members were present for items I, II and IV) Sponsor: Rick Cowles for Item II-1 Staff: Matthys Van Cort, Herman Sieverding (Item I and II-1) , Patricia Norton, Wies van Leuken. I . Call to order The meeting was called to order at 4 :10 pm, by the Chair, Mayor Benjamin Nichols . The Mayor welcomed the CAC members and thanked them for their work. Everyone was asked to introduce themselves . The Mayor explained the agenda; Norton explained the format of the sponsor presentation. II. Public Hearing II-1 . Landmark Square Presentation - Rick Cowles Norton stated that the CAC had requested an opportunity to discuss the Landmark Square project with Rick Cowles . All other project sponsors had met with the CAC during previously scheduled meetings . Site Plans for the Landmark Square Project were circulated. Rick Cowles of Chartwell Plus Associates gave a presentation of the Landmark Square Project. Chartwell Plus requesting $350, 000 of CDBG funds for renovations and improvements of the Landmark Square housing project . Cowles is still negotiating the transfer of the property. He discussed the plans for interior and exterior renovations of 51 units as well as the plans for the overall upgrading of the housing complex. He stated that the units were well built and included features like hard wood floors. However, the units have been allowed to deteriorate and are in a state of disrepair. Chartwell Plus will install new roofing, siding and w Minutes IURA/CAC March 2, 1993 gutters, replace doors and windows, and paint the interior and exterior. Chartwell Plus will also purchase new appliances for the units . When asked whether he is concerned about the siding which is made of an asbestos composition, Cowles answered that the new siding will go over the old, thus encapsulating the present siding. He stated that proper precautions will be taken with the interior paint of the units . The handicap accessible units need new doors, because the present ones are not wide enough. Mallison encouraged Cowles to install roll-in showers in those units. Cowles stated that total cost of the renovations will not exceed 50% of the value of the property. Sieverding stated that once the rehabilitation costs surpass 50% of the value of a building, the applicable Building Code changes, which would add cinsiderable costs to the project . The appearance of the open space will be improved through demolition of the garages and new landscaping. The installation of outdoor lighting is expected to improve the safety of the complex. In response to questions, Norton stated that the basketball court will not be lighted. Cummings asked whether the play area could be moved to the same side of the street as the Landmark Square units . Van Cort explained that this would be very complicated because it would involve the State process of the alienation of City park land. Norton pointed out that one apartment has been set aside for use by the Cooperative Extension Program and for the office of Better Homes of Tompkins County for on-site management of the housing project. The rents of the units were discussed. They will conform to HUD affordability guidelines . The vacant units will be renovated first and, if necessary, tenants will move temporarily to the renovated units while their own units are rehabbed. No tenant will be displaced. Cowles expected to complete most of the renovations in 2 months . Cowles was asked about plans for the mixed use building he plans to build along Meadow Street . This project is not part of the proposal included in the CDBG application, but the CAC is concerned about it' s effect on the overall project. The building' s upper stories will house efficiency and one bedroom units . Cowles stated that the building will be completed within 2 years providing the economy remains stable. Foster and Cummings were concerned about 2 Minutes IURA/CAC March 2, 1993 the appearance of the Meadow Street frontage during those 2 years . The front 22 units at Landmark Square will continue to be rented. Cowles and Norton explained that the overall quality of life will be considerably improved by improvements of the grounds, improved safety and community services . Norton stated that police files show that during 1992, 336 emergency visits were made by the police to Landmark Square. To improve the security of the housing project, a grant of $15, 000 is requested for a Neighborhood Police Program. This will enable the Police Department to offer more on-site police service and programs on crime prevention and drug awareness. An on-site community room will enable the police officers to meet with the tenants on the site. CAC members support installing a sidewalk on the south side of Wood Street, between Titus Towers and Meadow Street . Sieverding reported that the feasibility of building the sidewalk is being analyzed. Cowles expects the management of Better Housing of Tompkins County to greatly improve the quality and stability of the project. A 10% management fee is scheduled. Norton circulated recent pictures of the project and the Wood Street Park. The Mayor asked how the comments from the CAC were made part of the final proposal . Norton explained how the proposals are shaped by the comments of the CAC. 11-2 . CAC Report and Recommendations for 1993 CDBG Application Norton circulated the proposed budget for the 1993 CDBG application. The document called Proposed Community Development Block Grant Budget, dated March 2, 1993 was entered into the minutes. Norton briefed the meeting on the status of the proposal by Challenge Industries for a loan of $65, 000 to expand their microfilm department to be included in this year's application. Challenge Industries had requested a grant, but the IURA instead offered a loan at a very low interest rate. Staff is presently negotiating the terms of this loan with Challenge Industries . Silverman, Mallison and other Committee members requested that any funds not used for the Challenge Industries project go towards improving the projects by Cooperative Extension. 3 _ K Minutes IURA/CAC March 2, 1993 Norton agreed to contact the CAC if the Challenge Industries project was not included in the application. It was agreed that the CAC would be called to meet again if any major changes had to be made in the program and budget or to review new proposals that would significantly strengthen the application. The CAC was asked for, and gave, their endorsement on the $90, 000 1993 Grant Application. Mackesy moved and Mallison seconded a resolution to approve the projects and budget for the 1993 CDBG Application. WHEREAS, the Community Advisory Committee has reviewed and approved the proposals submitted to the City for the 1993 CDBG application, now THEREFORE BE IT RESOLVED, that the CAC submits the projects and budget and recommends it to the Ithaca Urban Renewal Agency for their review and approval, and FURTHER RESOLVED, that the CAC recommends that the IURA authorizes staff to make minor modifications in the project composition of the grant and the budget according to HUD funding limits and comprehensive grant criteria, with the understanding that any major modifications will be brought back to the CAC and the IURA for their review. Approved unanimously. II-3 . Report Revolving Loan Fund to CAC Norton gave a report to the members of the CAC on the Revolving Loan Fund. She explained the policy decisions made by the Economic Development Committee and the IURA, Mike Stamm of TCAD and Mary Ziegler from AFCU. She explained how program income from CDBG loans is subject to HUD regulations. A Revolving Loan Fund would give the IURA flexibility in the type of loans which can be made. At the moment $15, 000 is available for this Fund. Right now the IURA can only do economic development projects which create enough jobs to compete in the CDBG competition Questions were asked about the Fund' s criteria. Norton read the criteria from the draft and explained that advice from the ED committee had been considered. The CAC agreed on the criteria. The Mayor stated that there is a revolving loan fund for Housing, through INHS, but not for Economic Development . 4 - Minutes IUBA/CAC March 2, 1993 III. IURA Recommendations to Common Council for the 1993 CDBG Application - Resolution The agency discussed the recommendations by the CAC. Jones asked about the neighborhood watch program. Norton explained that specific budget figures were not known yet . It was estimated that $10, 000 would go for staff overtime, $5000 for extra time spent at Landmark Square by the Neighborhood Patrol Officer, and the remainder for 2 police officers to run the program. Cummings and Reed commented on the value of the Neighborhood Watch Program. The neighborhood would need to have a decisive voice in the implementation of the program. Cummings stated that the initial meeting, where people got to know their neighbors, was of prime importance. An additional benefit of the program would be that tenants and police officer would get to know each other. The success of the program will depend primarily on continued strong leadership. Cummings moved and Reed seconded to approve the CAC recommendations for the 1993 CDBG Application. WHEREAS, the Ithaca Urban Renewal Agency recognizes the need to support efforts which promote affordable housing, job creation and retention, and increased public services to Ithaca's low and moderate income population, and WHEREAS, the IURA has received the recommendations from the Community Advisory Committee on the 1993 CDBG application which it made after careful review of the proposals submitted to the City, now THEREFORE BE IT RESOLVED, that the IURA after review of the CAC's recommendations for the 1993 CDBG Application has approved these projects and budget and recommends it to Common Council for their review and approval, and BE IT FURTHER RESOLVED, that the IURA authorizes staff to make minor modifications in the project composition of the grant and the budget according to HUD funding limits and comprehensive grant criteria, with the understanding that any major modifications will be brought back to the CAC and the IURA for their review. Approved unanimously. 5 Minutes IURA/CAC March 2, 1993 IV. Approval of IURA Minutes of February 2, 1993 and CAC Minutes of February 23, 1993 The minutes of the IURA meeting of February 2, 1993 were approved as distributed. The minutes of the CAC meeting of February 23, 1993 were approved with one amendment. On the first page, under the heading "present" , the name of Mike Cannon should be omitted. V. Staff Reports - 1993 CDBG Update Norton reported that HUD has not announced its deadline for the 1993 CDBG application, nor has it ruled on the application's funding limit . Norton reported on the litigation of the West Inlet Project . The Appellate Division has overturned the decision of the State Supreme Court. Staff met with Jerry Weisburd and both the City and Weisburd are committed to completing the project. Staff is working with him on how best to proceed. The City may or may not appeal the Court of Appeals decision. VI . Economic Development - Revolving Loan Fund - Resolution Norton gave a report on the Revolving Loan Fund to the CAC at the beginning of this meeting. (Item II) The 1/23/93 draft of the Policy Guidelines and Operating Plan for the Revolving Loan Fund had been distributed. The IURA amended the guidelines of the Fund. The minimum amount for a loan was set at $5000, allowing for individual flexibility however, and the interest rate was set at 75% of the prime rate. Not-for-profit agencies requesting funds may negotiate a lower rate. Cummings moved and Reed seconded a resolution to approve the Revolving Loan Fund and Policy Guidelines and to establish a Revolving Loan Fund. WHEREAS, the Ithaca Urban Renewal Agency receives payments on economic development loans made as part of past Community Development Block Grant applications, and 6 ■ Minutes CAC/IURA March 2, 1993 WHEREAS, the IURA desires to expand the current economic development program in order to create more job opportunities for low and moderate income individuals and expand the City's commercial and industrial tax base, and WHEREAS, the current program is limited to financing one or two projects per year as part of the CDBG application, and WHEREAS, in order to expand the program in compliance with HUD regulations the payments received must be kept in a designated Revolving Loan Fund, now, THEREFORE BE IT RESOLVED, that the IURA agrees to allocate current and future repayments on CDBG generated economic development projects to the Revolving Loan Funds, and BE IT FURTHER RESOLVED, that the IURA adopts the attached Policy Guidelines and Operating Plan for economic development loans or grants which are made from CDBG funds or the Revolving Loan Funds, said guidelines which may be revised periodically to reflect changing HUD or IURA priorities. Approved unanimously. VII. Budget and Administration 1 . Financial Statements The Small Cities Grants Summaries, dated February 1993, were entered into the minutes. Norton reported that the 1987 grant will be closed out soon. Funds from a number of the projects in the other open grants are also being drawn down. She expects that the threshold requirements for this year's application will be met. VII- 2 . Reprogramming Program Income Norton explained the need to have funds available to meet the federal obligations for CDBG administration in the event of a non- funded year. Reed moved and Cummings seconded a resolution to approve the Reprogramming of Program Income. WHEREAS, HUD regulations require that all available program income cash-on-hand be spent for program activities prior to drawing funds from our letter-of-credit (LOC) , and 7 Minutes CAC/IURA March 2, 1993 WHEREAS, the City of Ithaca's Ithaca Urban Renewal Agency has complied with this regulation and expended the program income on CDBG eligible activities, and WHEREAS, the City of Ithaca has a legal obligation to the federal government for the administration of open block grants regardless of whether federal support dollars are received, and the program income has been kept locally to provide a means to finance the administration in the event of a non- funded year, and WHEREAS, the security of maintaining the funds locally can be achieved by retaining miscellaneous revenue, as HUD regulations allow miscellaneous revenue to be kept locally, and WHEREAS, the IURA receives miscellaneous revenue in the form of the Eddygate HODAG and Iszard's UDAG payments which must be used to promote affordable housing and form the basis of the City's ongoing support to Ithaca Neighborhood Housing Services, now THEREFORE BE IT RESOLVED, that the program which is now on the City's LOC account be used on a one time basis to finance the City's 1993 annual contribution to Ithaca Neighborhood Housing Services and that miscellaneous revenue received from HODAG and UDAG repayments be maintained to finance federal obligations for CDBG administration in the event of a non- funded year. Approved unanimously. VII- 3 . CD Administration Manual - Report No reports VII- 4 . Reprogramming 1990 CDBG funds The letter from Paul Mazzarella to the City of Ithaca, dated March 1, 1993 was entered into the minutes. In this letter Mazzarella is requesting that the $4, 790 of 1990 CDBG funds programmed for a bus shelter in front of the original Mutual Housing site on Floral Avenue, and subsequently reprogrammed for a bus shelter in front of the West Inlet Project on Floral Avenue, be reprogrammed to the 1992 INHS Rental Rehabilitation Project. The Agency discussed the request . The funds are the only unspent funds in the 1990 grant and the program amendment would allow the grant to be closed out. 8 Minutes CAC/IURA March 2, 1993 Cummings moved and Jones seconded a resolution to approve the request by INHS to reprogram the 1990 CDBG Funds. RESOLVED, that the IURA approves the request to reprogram the $4, 790 . 00 of 1990 CDBG funds for the bus shelter on Floral Avenue to the 1992 INHS rental rehabilitation Program. Approved unanimously. VIII . Housing and Neighborhoods No reports IX. Other Business Staff reported that no response has been received by Om Gupta of Digicomp Research. Cummings requested that signage be placed at City projects that explain to the public what is being done and how it was funded. X. Adjournment The meeting was adjourned at 6:10 pm. AAW&)ec: C/W/Min/Minute93 .MAR � _ 9 f � C�t�CJ►�c1,c_ Minutes of the Ithaca Urban Renewal Agency Thursday, May 4, 1993, 4 pm Third Floor Conference Room, City Hall Present : Benjamin Nichols, Anne Jones, Susan Cummings, Doug Dylla, Clarence Reed, Paul Mazzarella for item VI-2, Herman Sieverding for item IV- 1, Matthys Van Cort, Patricia Norton, Wies van Leuken. I . Call to order The meeting was called to order at 4: 05 pm, by the Chair, Benjamin Nichols . II . Approval of IURA Minutes of April 6, 1993 The minutes of the IURA meeting of April 6, 1993 were approved as distributed. III . Staff Reports - 1993 CDBG Update Norton reported that HUD has not announced its deadline for the 1993 CDBG application, nor has it ruled on the application' s funding limit. The Mayor has contacted Senator Moynihan to express his concern on the delay. Norton stated that a good portion of the home buying and building season might be lost this year. Cummings suggested sending a written statement to the government officials representing us . IV. Economic Development 1 . Carpenter Business Park - Report ED Committee Sieverding reported on his meeting with the Economic Development Committee regarding the request by Bob Lama from Lama Real Estate for a ground lease in Carpenter Business Park to expand his business . Lama Real Estate does not meet leasing policy requirements for the type of business desired and it will not be able to meet the Minutes IURA May 4, 1993 required low/mod job creation. The Committee had recommended for Lama to team up with a co-tenant who could fulfill these requirements . Sieverding proposed and the committee recommended that 75% of any new building be occupied by a firm which met the leasing guidelines . The other 25% could be occupied by Lama Real Estate. The Agency decided that any new building should be occupied in the 75/25 split as recommended by the committee. Agency members suggested making the co-tenant a partner in the development with an equity interest . The Agency endorsed the ED Committee's recommendations and authorized staff to continue with the conceptual proposal whereby Lama Real Estate has a co-tenant, who will meet the Agency' s business and job creation requirements and will acquire business equity. Lama's request will require approval by Common Council . The Agency requested the Economic Development Committee to discuss revising the criteria for businesses locating in Carpenter Business Park. It was pointed out that the policies were drafted about 8 years ago in a different economic climate. Dylla stated that he has a list of appointments for the ED Committee for the Mayor's review. IV-2 . Challenge Industries - Report ED Committee No reports . IV-3 . Groton Community Health Care Center Dylla reported on the recommendations from the Economic Development Committee for the loan agreement with Groton Community Health Care Center for the Ithaca Dental Clinic. The Committee agreed on a $75, 000 loan at 3% interest with interest payments commencing in the second year and principal payments in the third year. A review clause will allow the Agency to review finances and perhaps adjust the loan terms in the fifth year. The Clinic has not decided on a site for its operations yet . Jones moved and Reed seconded a resolution to approve the loan agreement with the Ithaca Dental Clinic. 2 Minutes IURA May 4, 1993 RESOLVED, that the IURA approves a loan agreement for $75, 000 at 3% interest with the Groton Community Health Care Center for the Ithaca Dental Clinic, and directs and authorizes the Mayor to sign the agreement, contingent upon award of the 1993 CDBG Application by the Department of Housing and Urban Development and pending approval by the City Attorney and the Director of Planning and Development . Approved unanimously. IV-4 . Report Revolving Loan Fund Norton reported that members of Common Council had requested more information on the Revolving Loan Fund at their April meeting. She is preparing a memo to address Council's concerns . The Agency members suggested writing a simple one page memo. V. Budget and Administration 1 . Financial Statements The Small Cities Grants Summaries, dated April 1993 were entered into the minutes . Norton reported that the grants for 1987 and 1990 were being closed out. The Agency requested a site visit to the Mutual Housing Project . Dylla predicted that the 1991 INHS project will move soon after changes have been made in the rehabilitation staff of INHS. The Agency members requested that Jerry Weisburd begin on the EIS of the West Inlet Project . The Mayor and Van Cort will contact Weisburd. Norton stated that she expected the project to go ahead and that the Weisburds might start subdivision approval process this summer. Dylla stated that he would like to receive an occasional Loan Fund and other financial reports . He proposed discussing this matter at the next Economic Development Committee meeting. V-2 . Personnel Norton reported that Bob Briggs from the Ithaca Agency is investigating whether of not IURA has insurance coverage for the law suit by Evans. 3 Minutes IURA May 4, 1993 VI . Housing and Neighborhoods 1 . Proposed Wood Street Park Improvements - Report Norton presented the site plans for the Wood Street Park project designed by Trowbridge and Wolf . The Client Committee for the Wood Street Park Improvements will submit their final plan if the grant is funded by HUD, after additional neighborhood dialogue has taken place. Norton indicated the new location of the basketball court . The relocation was requested by the neighborhood's residents . Tom West from the Engineer's Office suggested that DPW be requested to do a review of the intersection rather than predetermining the need for Wood Street Stop signs . The two overriding concerns in the community are public safety and security. The Agency members liked the improvements . Suggestions were made to high-prune the trees in the park area and to keep the area open. The budget will be reviewed by DPW. Cummings suggested presenting a statement of need to the Board, detailing such items as the number of neighborhood children and the number of street crossings . Norton wrote to the Ithaca Housing Authority regarding sidewalks and improved lighting for Titus Towers . Cummings stated that she hoped that the cooperation with IHA required for this project would be an occasion to develop a better working relationship with the Housing Authority. Norton responded that she found the IHA staff very excited about the improvements . IHA staff expected their Board to support the project. The Agency approved the plan as presented. Dylla expressed hope that other small city parks could also be renovated and possibly included in future block grant applications . Reed moved and Cummings seconded a resolution to approve a raise in the budgeted contract amount to $4500 to cover the cost of including the Landmark Square complex in the final site plan. RESOLVED, that the IURA approves amending Item II-3 of the contract with Trowbridge and Wolf, dated March 15, 1993 to state that the total remuneration shall not exceed $4500 . Approved unanimously. VI-2 . Conflict of Interest - Charles Rollins/INHS The memorandum from Assistant City Attorney Pat Kennedy, dated April 15, 1993 and the letter from Paul Mazzarella, dated November 2, 1993 were entered into the Minutes . 4 Minutes IURA May 4, 1993 Norton explained that HUD required a full public disclosure and a written opinion from the City Attorney stating that there was no violation of State conflict of interest law. Mazzarella stated that Charles Rollins is a well qualified contractor. INHS staff awards contracts following an open competitive bidding process. Rollins has no part in any of the decision making. Mazzarella stated further that it is difficult for INHS to find African-American contractors. INNS' mission is to be a neighborhood based organization. INHS would be done a disservice if it could not award contracts to Charles Rollins . INHS would also be done a disservice if Charles Rollins' mother, Ms . Rollins, had to give up her position on the INHS Board. Norton stated that she will document this in her letter to HUD. Reed moved and Dylla seconded a resolution to request an exception from HUD regarding INHS' conflict of interest regarding contractor Charles Rollins . WHEREAS, the Ithaca Urban Renewal Agency has reviewed the materials presented concerning the request for exception for Charles Rollins from HUD's Conflict of Interest regulations, and WHEREAS, the Assistant City Attorney has presented her opinion that granting the exception would not be in violation of either state or local laws, a prerequisite to HUD' s consideration of granting the requested exception, NOW THEREFORE BE IT RESOLVED, that the IURA authorizes and directs staff to submit the formal request for an exception to HUD. Approved unanimously. VII . Other Business No reports . VIII.Adjournment The meeting was adjourned at 5:45 pm. 714vvcv-RAA C\W\Min\Minute93 .MAY `' 5 • C eC�exl Minutes of the Ithaca Urban Renewal Agency April 6, 1993, 4 pm Third Floor Conference Room, City Hall Present: Benjamin Nichols, Anne Jones, Susan Cummings, Doug Dylla, Patricia Kennedy for item V-1, Matthys Van Cort, Patricia Norton, Wies van Leuken. I. Call to order The meeting was called to order at 4:10 pm, by the Chair, Benjamin Nichols. II. Approval of IURA/CAC Minutes of March 2, 1993 The minutes of the joint IURA/CAC meeting of March 2, 1993 were approved as distributed. III. Staff Reports 1993 CDBG Update Norton reported that HUD has not announced its deadline for the 1993 CDBG application, nor has it ruled on the application's funding limit . Common Council's Planning and Development Committee and the meeting of the Committee of the Whole have given unanimous approval to all projects included in the application. A Public Hearing has been scheduled for the April 7 Common Council meeting. After receiving public comment, Common Council will vote on the Application. The Mayor reported that the City has received several letters of support for the Ithaca Dental Clinic. Norton discussed the meetings of the Client Committee on the Wood Street Park Improvements. Cummings suggested contacting the owners of the Red Lobster during the upcoming Site Plan Review of their project, to see if they would be willing to sell or donate the back of the site adjacent to the City or some other entity for affordable housing. Minutes IURA April 6, 1993 Challenge Industries, Inc. did submit a proposal for an economic development loan for inclusion in the 1993 CDBG application. The terms Challenge has proposed include an interest rate of 1% with payments commencing in the third year and a balloon payment of remaining interest payments and capital to be made in the eighth year. Norton reported that $27 million of Federal funds might become available for CDBG type projects later this year. Eligibility guidelines for the fund's use have not been made available yet . The Agency hoped that the Mutual Housing Project-Phase II might be eligible for these funds. Norton reported that Common Council will vote on 4 resolutions submitted by the IURA. They will vote on the Block Grant Application (IURA resolution #705) , the Reprogramming of 1990 CDBG Public Facilities funds to 1992 CDBG INHS Rental Management (Resolution #708) , the Revolving Loan Fund (Resolution #706) and the UDAG/HODAG Reserve Fund (Resolution #708) . Jerry Weisburd will not appeal the decision the Appellate Court made on the West Inlet Project. He plans to resubmit the project to the local review process. Design changes reflecting changed construction costs might be made. Norton explained the 1993 Abbreviated CHAS document. There will be a Public Hearing on April 15. Submitting the CHAS is a prerequisite for filing the CDBG Application. The Agency requested that the potential Phase II of the Mutual Housing be included in the document. The Mayor expressed surprise at the reported vacancy rate from the Tompkins County Planning office which is in contrast to the anecdotal evidence he is receiving. The Agency discussed the gap between the housing needs of the very poor and the level of available subsidies for affordable housing. This gap cannot be bridged with subsidies available at present . Cummings moved and Dylla seconded a resolution to approve the 1993 Abbreviated CHAS. RESOLVED, that the IURA approves the 1993 Abbreviated CHAS and directs staff to submit this document to HUD for approval . Approved unanimously. 2 Minutes IURA April 6, 1993 IV. Economic Development 1 . Economic Development Stimulus Package Report on Common Council Actions No reports. IV-2 . Accufab, Inc. Lease Modification The lease between the IURA and Accufab, Inc. , located at Cherry Street Industrial Park, contains the names of both Gary Wojcik and Alexandra Wojcik as tenants . Mr. Wojcik has requested that the lease be modified to contain his name only. Dylla moved and Jones seconded a resolution to approve the Accufab Lease Modification. RESOLVED, that the IURA approves the request for modification of the IURA's lease with Accufab, Inc. to reflect that Gary Wojcik is its sole tenant and directs and authorizes the Mayor to sign a lease modification subject to review by the City Attorney. Approved unanimously. V. Budget and Administration 1 . Executive Session - Personnel No action taken V-2 . Financial Statements The Small Cities Grants Summaries, dated March 1993 were entered into the minutes . Norton stated that Pal's Sport's Center plans to open for business June 15, 1993 . Funds for Mutual Housing are being drawn down. At the time of submission of the 1993 CDBG Application only two open grants will remain. Meeting the threshold draw down levels is required to improve the competitive position of the City's 1993 CDBG application. V-3 . Subordination Section 17 Loan - E. Johnson Malone Ms . Malone has withdrawn her request for subordination of the Section 17 loan while she is looking for alternative funding sources . The Agency decided that requests for a Section 17 loan subordination should be reviewed by the Loan Committee. 3 Minutes IURA April 6, 1993 VI .Housing and Neighborhoods No reports VII . Other Business 1 . The City Annex The Agency agreed that restrictions on the sale of the Annex could be lifted to facilitate the sale of the Annex. They also agreed that the contract with Lama real estate should be extended for an additional 3 months. The present contract expires this month. Cummings requested a longer extension, but the Agency decided that an additional extension could be requested by Lama Real Estate if more time was required to complete a transaction. VII-2 . Community Health and Home Care (CHHC) Jones stated that CHHC was not limiting it's hiring to people from Ithaca. Norton stated that CHHC's contractual obligations were limited to affirmative outreach only. She listed the procedures in place to ensure that low/mod income people are given first consideration for positions created. VII-3 . Economic Development Guidelines Dylla stated that he would like to move away form reacting to Economic Development proposals to focusing on an Economic Development Plan. He requested a meeting with Van Cort, Sieverding and Norton to discuss this. VIII . Adjournment The meeting was adjourned at 5:50 pm. w S'ktc�� C\W\Min\Minute93 .APR 4 Minutes of the Ithaca Urban Renewal Agency Thursday, June 8, 1993, 4 pm Third Floor Conference Room, City Hall Present : Benjamin Nichols items III-2 . - VIII, Anne Jones, Susan Cummings, Clarence Reed, Herman Sieverding for item III-2, Matthys Van Cort for Item VI, Patricia Norton, Wies van Leuken. I . Call to order The meeting was called to order at 4:15 pm, by the Acting Chair, Susan Cummings . II . Approval of IURA Minutes of May 4, 1993 The minutes of the IURA meeting of May 4, 1993 were approved as distributed. III . Staff Reports 1 . 1993 CDBG Update Norton reported that the deadline for the 1993 CDBG application will be August 11, 1993 . There is no information yet on the application's funding limit. III-2 . Comex/McCurdy Building Easement Cummings turned the meeting over to the Chair, Benjamin Nichols . Sieverding explained the request by Comex Plaza Associates regarding an easement on the Comex/McCurdy building. Comex Associates has requested the use of an easement over a small piece of land on which the stairwell to the parking garage at the back of the McCurdy building is built. The underlying land is the property of the IURA. Comex Associates plans to lease the back portion of the building to the Tompkins County Trust Co. and requires an easement over this area to satisfy the Building Code requirement for a secondary way of egress . Minutes IURA June 8, 1993 Jones moved and Reed seconded a resolution to approve the easement . WHEREAS, the IURA owns a small piece of land on the South East Side of the Green Street Parking Garage at the back of the Rothschild building, more particularly described on the attached site plan, and WHEREAS, Comex Plaza Associates, owner of the Rothschild building, requires a secondary means of egress in order to comply with NYS Building Code requirements, and WHEREAS, the secondary means of egress is required to allow the conversion of the rear portion of the Rothschild building into office space, now THEREFORE BE IT RESOLVED, that the IURA agrees to grant an easement to Comex Plaza Associates over the area shown on the attached site plan and reserves the right to review its decision whenever there is a change of tenant or a change in use, BE IT FURTHER RESOLVED, that the IURA authorizes the Mayor to sign the appropriate easement agreement upon the advice and recommendation of the City Attorney and the Director of Planning and Development . Approved unanimously. IV. Economic Development 1 . Challenge Industries Loan Terms Norton reported that the Economic Development Committee reviewed the Challenge Industries project which will create 4 FTE jobs . The Committee approved the $65, 000 loan for 10 years at 1% interest and with interest payments beginning in the third year. The Committee proposed using the Challenge Industries building as collateral to the loan. The Agency accepted all recommendations. IV-2 . Revolving Loan Fund - Report Norton reported that the Revolving Loan Fund had been approved by Common Council at their May 1993 meeting. IV-3 . Economic Development Strategy Norton stated that after the Agency's approval of Doug Dylla' s request to develop an Economic Development Strategy, Dylla met with staff to develop a plan of action. Norton proposed, on behalf 2 Minutes IURA June 8, 1993 of Dylla, holding an intensive strategy session with other community and business leaders to develop goals and a mission statement for the IURA's economic development strategy. The Agency discussed the proposal. The Mayor stated that the key element in all economic development decisions by the Agency is the creation of employment for people of low/mod income. Jones proposed inviting a representative from TC3 . Cummings envisioned an annual meeting of the different Agencies to develop professional contacts . Both she and Reed expected results from a meeting where Agencies came together to discuss their long range plans and their most exciting and creative projects. The Mayor will contact other agencies working on economic development and set up an informal meeting first . The Strategy Meeting will be held later as a follow-up meeting. A facilitator will be appointed for the meeting at an honorarium of $100 . V. Budget and Administration Financial Statements The complete package of financial statements, dated May 1993 and including the monthly Small Cities Grants Summaries, was entered into the minutes . The Agency reviewed the financial statements . It was agreed to distribute a complete package of financial statements to the Agency on a quarterly basis . Norton stated that she discussed doing an EIS with Weisburd. The Agency agreed to give House Craft Builders till the end of August to move on his project . Norton reported that checks regarding the rent assignment of Fall Creek Associates were arriving in a timely fashion. However, the agreement with Tsvi and Sarah Bokaer, where they agree not to contest any future judgement proceedings against Fall Creek Associates for non-payment of the CDBG loan, had not yet been signed by them. She proposed requesting the bank's attorney to contact the Bokaers. VI . Housing and Neighborhoods Community Gardens Lease The Agency discussed the draft lease with the Community Gardens . The Mayor stated that the Community Gardens pay for their water bill with money from a grant from the City. The grant has been 3 Minutes IURA June 8, 1993 renewed annually by Common Council, upon request from the Community Gardens . The Agency members established that the Community Gardens organization provide the opportunity to garden for low/mod income people, the homeless and others and serve the community through a variety of other programs . The following amendments were proposed for the lease. 1 . If the site is no longer being used as a community garden, or if the Community Gardens as a not-for-profit organization ceases to exist, the Agency reserves the right to cancel the lease with one year notice. 2 . The Community Gardens is responsible for their own water bill, but may request relief if their funding is terminated. 3 . The City needs to demonstrate insufficient use before being able to cancel the lease. 4. Any major structures planned for the Community Gardens site will require approval by the Agency. Reed moved and Cummings seconded a resolution to approve the revised lease with the Community Gardens . RESOLVED, that the IURA directs and authorizes the Mayor to sign the revised lease with Community Gardens, pending review by the City Attorney and the Director of Planning and Development . Approved unanimously. It was stated that the lease will require Common Council approval . VII . Other Business 1 . Center Ithaca The Agency discussed the Chapter 11 proceedings for Center Ithaca with Sieverding. The Mayor has met with and written a letter to the Farmer's Home Administration requesting it to reconsider its rejection of the proposed work out plan for the Center and pointing out the importance of Center Ithaca and how this issue is resolved, to the overall health and vitality of the business district. Farmers Home has recently decided not to withdraw their objection. 4 Minutes IUR.A June 8, 1993 It was agreed to invite both Sieverding and the City Attorney to the next IURA meeting, to discuss what the Agency could do to persuade the Farmer's Home Administration to reconsider its position. VII-2 . The Annex Sieverding reported to the Agency that Lama Real Estate will approach Mr. Muraco regarding the Annex. Lama Real Estate is still trying to match prospective tenants with developers in addition to identifying possible owner/occupants for the building. VIII-3 . The Strand Sieverding reported that bids are being accepted for removal of asbestos and other environmentally sensitive materials from the building. Demolition bids will be out in July. Actual demolition is expected to take place at the end of July and beginning of August . The City is still holding approximately 300 new theater seats purchased with ARC Grant funds . Some quantity of tile and carpet was also purchased with these funds in the early eighties . The tiles and carpet are no longer with the supplier and were never delivered to Ithaca. Reed suggested selling the seats and lights . Jones reminded the Agency that the Hangar Theater had expressed an interest . Reed proposed to donate the items to the Hangar Theater because they will be used in a similar fashion. Sieverding mentioned that the ARC loan on the Strand will be paid back out of the proceeds of the sale to RHP Properties. Norton stated that the Agency had incurred costs storing Strand equipment and fixtures all these years and should be reimbursed. VIII-4 . Market for recyclables Reed stated that he liked to see the IURA award a loan to a small business which would manufacture products needed by the City, made from recycled materials. He stated that municipalities find it increasingly difficult to get rid of their collected recycled materials because there is a limited market for products made from such materials . The Mayor pointed out that recycling is now a County jurisdiction. He proposed contacting Lynn Leopold. Jones wondered whether a partnership between Cornell University and Challenge Industries could create such a business . Sieverding will make some inquiries . 5 Minutes IUR.A June 8, 1993 VIII . Adjournment The meeting was adjourned at 6 pm. )(TIV0RAA 6 Minutes of the Ithaca Urban Renewal Agency Tuesday, July 13, 1993, 4 pm Third Floor Conference Room, City Hall Present : Benjamin Nichols, Bill Myers, Susan Cummings, Doug Dylla, Patricia Kennedy for item V-1, Matthys Van Cort, Herman Sieverding for items III-2 and VII, Patricia Norton, Wies van Leuken. I . Call to order The meeting was called to order at 4 :15 pm, by the Chair, Benjamin Nichols . II . Approval of IURA Minutes of June 8, 1993 The minutes of the IURA meeting of June 8, 1993 were approved as distributed. III . Staff Reports 1 . 1993 CDBG Update Norton reported that this year's funding limit for the CDBG Application has been set for $900, 000, but that HUD has retained the option of cutting up to $300, 000 from an application if they believe the total grant request is unwarranted. HUD will sent out notification of its decision by October 25, 1993 . If the City's application has been approved, contracts for the approved projects will be written and signed and work on the projects is expected to start by the beginning of next year. Threshold requirements for this year' s application have all been met . This is the first year that Community Development has met these requirements and has not had to apply for a waiver from HUD. Norton expressed the hope that HUD will restore the deadline to an earlier date next year. This would make more efficient use of staff time. Norton gave an update on the Landmark Square Project . Cowles has obtained a 15 year lease with an option to buy the site. Norton explained how other activities are enhancing this project . The continuing deterioration of the housing project has led to undesirable activities . Norton obtained the cooperation of the City Police Department, Cooperative Extension and the Ithaca Minutes IURA July 13, 1993 Housing Authority to develop the kind of support programs that will promote the long lasting success of the rehabilitation of the Landmark Square Housing Project. III- 2 . Center Ithaca The Mayor has requested the assistance of local representatives in Congress to help convince the Farmers Home Administration to reverse its decision on the foreclosure of Center Ithaca. Staff has discussed the FmHA foreclosure with HUD. Neither HUD, nor the City favors this decision because of the negative impact it will have on the vitality of downtown Ithaca. The Farmers Home Administration appears unwilling to change its decision. A court date has been set for October 7, 1993 . III- 3 . Certificate of Appreciation for Anne T. Jones Dylla moved and Myers seconded a resolution of appreciation for former Agency member Anne Jones . WHEREAS, Anne Tompkins Jones was appointed to the Ithaca Urban Renewal Agency by Mayor Edward Conley on September 3, 1975 and duly sworn in on November 20, 1975, and WHEREAS, Anne Jones has resigned from the IURA upon the expiration of her term on June 30, 1993, and WHEREAS, Anne has given generously of herself in numerous capacities directed toward community improvement and economic development, and WHEREAS, the IURA will sorely miss her for her unwavering dedication and sense of duty, and WHEREAS, the IURA wishes to acknowledge especially Anne' s sensitivity towards the role of women in business and the vulnerability of young people in need, now THEREFORE BE IT RESOLVED, that the Ithaca Urban Renewal Agency thanks Anne Tompkins Jones and expresses its deep appreciation for her years of service as a member of the Agency and wishes her well in all her future endeavors . Approved unanimously. 2 Minutes IURA July 13, 1993 IV. Economic Development 1 . Economic Development Strategy/Doug Dylla Dylla reported on the Economic Development Strategy Session of June 23, 1993 . A Charette is being planned for September. A mailing list for invitees is being put together. TCAD has the Economic Development Strategy report from the ERA. The Agency requested that copies be distributed for their use. IV-2 . Community Development Loan Fund (CDLF) Norton reported that she has been approached regarding the use of the CDLF for job retention projects . She stated that HUD requires very specific proof in matters of job retention. However guidelines for the Loan Fund are more flexible. She requested input from the Agency as to whether job creation or job retention proposals should receive more priority. The Agency reached the consensus that the CDLF was created to assist small businesses, to promote job creation, to do gap financing and to help keep businesses in the City. The Agency approved of Norton advising businesses on where to go for help. The Mayor and Dylla recommended exploring the option of job retention with HUD. The request by Triangle Steel was discussed. The Agency decided that this activity was not an appropriate use of the Loan Fund. V. Budget and Administration 1 . Executive Session Action taken: Dylla moved and Cummings seconded a resolution to authorize the Assistant City Attorney to offer a specified settlement . RESOLVED, that the IURA authorizes the Assistant City Attorney, upon the advice of the City Attorney, to offer as a settlement of the suit by Katherine Evans, a sum of no more than $4, 100 . 00, representing the termination benefits of one month salary and benefits as described in the Community Development Manual . Approved unanimously. 3 Minutes IUPA July 13, 1993 V-2 . Financial Statements The Small Cities Grants Summaries, dated June 1993, were entered into the minutes. VI . Housing and Neighborhoods No Reports . VII . Other Business The Annex The Agency discussed the sale of the Annex. The Contract with Lama Real Estate has expired. Common Council wants to review the terms of the sale. The price of the property is not an obstacle for potential developers . However, the cost of renovation relative to the amount of leasable area is a major difficulty. Dylla proposed a temporary use of the building. He suggested a possible use by INNS. The Mayor suggested opening it up for youth services . VIII . Adjournment The Agency agreed not to meet in August, unless there were pressing matters requiring their attention. The meeting was adjourned at 5.50 pm. /( Ol- C\W\Min\Minute93 .JUL 4 Minutes of the Ithaca Urban Renewal Agency Tuesday, October 5, 1993, 4 pm Office of the Executive Director, City Hall Present: Benjamin Nichols, Bill Myers, Clarence Reed, Patricia Kennedy for item III-1 and V-3 , Herman Sieverding, Trish Norton, Wies van Leuken. I . Call to order The meeting was called to order at 4 : 10 pm, by the Chair, Benjamin Nichols . The Agency approved the addition to the Agenda of Item V-3 , CD Coordinator' s Request for Training. The Mayor announced that due to the time constraints of the meeting, the more urgent items on the Agenda will be discussed first . Any items not discussed by the Agency will be tabled till the November meeting. II . Approval of IURA Minutes of July 13 , 1993 The minutes of the IURA meeting of July 13 , 1993 were approved as distributed. III . Staff Reports Norton announced that she expects that HUD will send out notification of funding awards for the 1993 CDBG the week of October 25, 1993 . She stated that HUD will maintain the funding limit of $900 . 000 for future comprehensive applications . III- 1 . Report on Evans Law Suit - Executive Session Action taken: Reed moved and the Mayor seconded a resolution to authorize the Assistant City Attorney to begin the appeals process regarding the law suit by Evans . RESOLVED, that the IURA authorizes the Assistant City Attorney, upon the advice of the City Attorney, to begin the appeals process in response to the July 20, 1993 ruling in the law suit by Katherine Evans . Approved unanimously. Minutes IURA July 13, 1993 III- 2 . Section 17 Program Income This item was tabled till the next meeting. III- 3 . Update on Personnel Manual This item was tabled till the next meeting. IV. Economic Development Strategy for 1994 Economic Development Projects Norton announced that an Economic Development Committee meeting has been scheduled for October 12, 1993 . The Mayor will attend this meeting as well . V. Budget and Administration 1 . Financial Statements The quarterly package of financial statements, including the monthly Small Cities Grants Summaries, dated September 1993 , was distributed among the Agency members and entered into the minutes . V-2 . Signature Cards New signature cards for the IURA's Bank Accounts were signed by those members present at the meeting. V-3 . CD Coordinator's Request for Training Norton submitted a request for educational benefits to be used for a four part series of courses on economic development, business credit analysis, and real estate finance, offered by the National Development Council. Sieverding explained that, as the CD office expands economic development activities, an increasing amount of staff time is spent on these projects . It is vital that ,staff acquire more expertise. Reed was concerned about the costs . He recommended that Norton book her flight early to save on expenses . Kennedy advised Norton to ask the National Development Council for a possible discount for government employees . The Agency requested that Norton provide information on the cost of the second training session at the next Agency meeting. 2 Minutes IURA July 13, 1993 Reed moved and Myers seconded a resolution to approve the request . RESOLVED, that the IURA approves and authorizes Patricia Norton to register for the first two training courses given by the National Development Council, ED 101 to take place in Baltimore and ED 201 in Atlanta. Approved unanimously. VI . Housing and Neighborhoods 1 . Update on Project by J. Weisburd Norton announced that Jerry Weisburd will continue the West Inlet project in a slightly modified form. Weisburd expects the environmental impact of the present project to be considerably less than the impact of his first proposal . VI-2 . Outreach 1994 CDBG Application Norton stated that she has begun the outreach for the 1994 CDBG Application Cycle. Ads will be placed in the newspaper and an RFP will be sent to housing developers in the area. VII . Other Business No reports . VIII . Adjournment The Agency discussed the fact the next IURA meeting, scheduled for November 2, 1993 falls on Election Day. Members will be contacted regarding a possible rescheduling. The meeting was adjourned at 4 :30 pm. fi)C\W\Min\Minute93 .00T 3 Minutes of the Ithaca Urban Renewal Agency Tuesday, November 30, 1993, 4 pm Third Floor Conference Room, City Hall Present: Benjamin Nichols, Bill Myers, Clarence Reed, Doug Dylla, Susan Cummings, Chuck Guttman for Items III -3 and VI-3 , Herman Sieverding for Item III-3 , Matthys Van Cort, Trish Norton, Wies van Leuken. I . Call to order The meeting was called to order at 4 : 05 pm, by the Chair, Benjamin Nichols . The Agenda was expanded to include Item III-3 , The Annex and Item VII, Update Evans Law Suit . II . Approval of IURA Minutes of November 2, 1993 The minutes of the IURA meeting of November 2, 1993 were approved with one amendment. On page 4, item VI-1, third paragraph, the name "Evelyn Johnson" was replaced by the name "Margaret Franklin" . III . Staff Reports 1 . 1994 CDBG Application - Update Norton reported on the this year's outreach for economic development. She did receive some favorable responses . At present there are two ED project proposals under consideration. One is the micro-enterprise project sponsored by Jeff Furman and the other is a proposal by Glyph Technologies, a high-tech firm, in the old Hi-Speed CheckWeigh building on West State Street. This project would create jobs in manufacturing and assembly. The Mayor asked to have the CAC involved at an early stage of the application cycle. The Agency' s suggestions for new appointments included appointing a person with a strong economic development background and/or a person representing the West Sate Street area. Minutes IURA November 30, 1993 III-2 . INHS Conflict of Interest The two memos from Paul Mazzarella, dated November 2, 1993 and November 29, 1993 were entered into the minutes. INHS asked the IURA to request HUD to waive the one year waiting period for Steven Hertzberg. This waiting period is mandated by HUD's regulations on Conflict of Interest which say that individuals who were in a position to have inside knowledge about CDBG funded projects must resign the position and wait for one year before being able to benefit in any way from a CDBG funded project . INHS would like to reduce the one year period to a half year. Steven Hertzberg did resign his INHS Committee position in November, 1993 . HUD requires certain documentation before reviewing a request for a waiver. It requires a full public disclosure of the conflict of interest, approval by the IURA of the request to HUD and an opinion by the City Attorney. Cummings suggested a strongly worded letter to HUD explaining that the pool of people qualified and willing to serve on INHS Boards was small, and that the conflict of interest regulations were too restrictive. Myers saw a clear conflict of interest and recommended leaving the one year period unchanged. Doug moved and Reed seconded a resolution to approve the request for a waiver. RESOLVED, that the IURA authorizes and directs staff to make a formal request to HUD to waive its Conflict of Interest rule of a one year waiting period in the case of Steven Hertzberg and allow a half year waiting period in stead. Approved by a vote of four to one. III-3 . The Annex Sieverding reported that Eva Kadar had made a purchase offer of $170, 000 for the City Hall Annex. The Kadar family currently owns Olivers in College Town. She intends to run a similar restaurant on the ground floor of the Annex. Of the upper stories, the second floor will be used for living space, the remaining floors will be rehabilitated at a later date. The Agency discussed the purchase offer in relation to the appraised value of the building and the prevailing economic 2 Minutes IURA November 30, 1993 conditions . They also discussed the intended use and the deadlines set for the sales process . The closing date has been set for February 4, 1994 . Cummings moved and Dylla seconded a resolution to approve the proposed sale of the City Hall Annex. WHEREAS, the property at 123 South Cayuga Street, commonly known as the Annex, has been listed for sale with Lama Real Estate since October, 1992, and WHEREAS, the listing with Lama Real Estate was preceded by several other attempts to sell the Annex, including the prior designation of a preferred sponsor and an attempt to sell the property by sealed bid, both of which attempts were unsuccessful, and WHEREAS, the Agency and Common Council, after these failed attempts to sell the property and in an effort to encourage the submission of an acceptable offer, determined to use the services of a commercial real estate broker to sell the building for a fixed amount, and WHEREAS, Lama Real Estate has submitted a purchase offer from Eva Kadar proposing to purchase the Annex for $170, 000 subject to the following conditions : 1. the Buyer obtaining a financing commitment by December 23 2 . approval of the purchase offer by the Buyer's attorney within five days of acceptance 3 . receipt of a report by the Buyer analyzing the condition of the structural, heating, lighting, electrical and plumbing systems within five days of acceptance (Buyer is responsible for ordering such report) 4 . assurances from the appropriate City agency that restaurant and family residence are allowable uses relative to the City's Zoning Ordinance within five days of acceptance, and WHEREAS, the sale of the property to Eva Kadar is consistent with the purposes for the Urban Renewal Plan, and WHEREAS, although the sales price is below the asking price, the Agency believes that, in view of all previous efforts to sell the building and in the context of current economic conditions and the condition of the local real estate market, this offer is a reasonable one, now therefore be it 3 Minutes IURA November 30, 1993 RESOLVED, that the IURA designates Eva Kadar as a qualified, eligible sponsor to purchase the property at 123 South Cayuga Street, and be it further RESOLVED, that the IURA recommends that the Common Council accept this purchase offer and that the Common Council call for a public hearing on the proposed sale terms to be held at its regularly scheduled meeting on January 5, 1994 after which it can vote on acceptance of the purchase terms . Approved unanimously. IV. Economic Development No reports V. Budget and Administration Final Draft Human Resource Policies The Final Draft of the Human Resource Policies was distributed with all changes printed in bold. The Policies have been reviewed by the City's Personnel Director, the Budget and Administration Committee and the Executive Director. The Agency recommended changing the term Permanent Employee into Regular Employee. The Assistant City Attorney will review the amended final draft. Any significant comments from this review will be brought to the Agency. Reed moved and Cummings seconded a resolution to approve the final draft of the Ithaca Urban Renewal Human Resource Policies . RESOLVED, that the IURA approves the final draft of the Ithaca Urban Renewal Human Resource Policies, dated November 12, 1993 , with the understanding that any significant changes by the Assistant City Attorney will be brought back to the Agency. 4 Minutes IURA November 30, 1993 VI .Housing and Neighborhoods 1. Youthbuild Application The EOC is planning to apply for a HUD funded Youthbuild Grant which has a due date of January 7, 1994 . The Mayor and Norton attended a meeting with several of the parties involved in the application. The Agency discussed the application and the manner of assistance the City could offer. Norton was asked to discuss the application with Barbara Blanchard who is Common Council's liaison with EOC. Cummings requested that some rigor be applied to EOC's work. Dylla requested that BOCES or the trade unions be involved in the project as a part of the training component. The Agency reached consensus on the following. Norton was asked to write a letter of support and talk with Blanchard and others involved in the project and keep the Mayor informed of the results . She will report back at the January meeting. VI-2 . MHA Phase II The Development Proposal for Mutual Housing Phase II, dated November 29, 1993 was entered into the minutes . The Agency discussed the proposal. Cummings objected to the plan not to build on the site facing the P&C. The Agency discussed the need for one Bedroom units . New units will have more storage space. VI-3 . Section 17 - Mortgage Subordination The memo from Richard Goldman of Samsara Associates, dated November 26, 1993 requesting the subordination of the City Section 17 loan for 630-632 West Buffalo Street, was entered into the minutes . The Agency took note of two errors in the memo. In the first, second and third paragraph $2, 000 . 00 should read $3 , 1000, 00 and in the second paragraph the $15, 000 . 00 mortgage mentioned twice, is not to the City but to INHS . Norton and Guttman further explained the request. Guttman stated that the City will now be behind a $108, 000 . 00 mortgage from Citizens Savings Bank rather than an $88, 000 . 00 CSB mortgage. The fact that Citizens is willing to invest this sum lends security to the Agency's position. In addition the principal balance will be completely forgiven as long as Samsara Associates charge rents which are 85% of Fair Market Rent levels . Norton stated that 5 ik Minutes IURA November 30, 1993 similar requests for subordination by Section 17 clients have been granted in the past. Cummings moved and Myers seconded a resolution to approve the request for subordination of the mortgage. RESOLVED, that the IURA approves the request by Richard Goldman of Samsara Associates, dated November 26, 1993 for the subordination of the City Rehabilitation Loan for 630-632 West Buffalo Street, pending correction of the financial information. Guttman will notify Goldman of the decision. VII. Other Business Update Evans Law Suit The assistant City attorney is preparing the brief to appeal the Evans Law Suit. UDAG funds have been used to pay related expenses . VIII.Adjournment The meeting was adjourned at 5 :30 pm. C\W\Min\Minute93 .DEC A •