HomeMy WebLinkAboutMN-IURA-1999 Minutes of Ithaca Urban Renewal Agency
4:00 pm, Thursday, January 14, 1999
Third Floor Conference Room, City Hall
PRESENT: IURA Members Alan Cohen, Eric Rosario, Martha Preston
Staff Matthys van Cort, Nels Bohn, Doug
McDonald, Marty Heresniak
Others [IV-1 only] Jeff Furman, Cecilia Vargas
[VIII-IA only] Tom Edwards, Noi Sisouphone, Raquel
Mercado, Diann Sams
CALL TO ORDER
Meeting was called to order at 4:05 pm by Mayor Cohen.
II PREVIOUS MIN[1TFS c
II-1 Rosario/Cohen moved/seconded a motion to approve minutes of the joint IURA/CAC
meeting of December 16, 1998 with the following changes:
1 Cohen to be listed as member of both IURA and CAC.
2 Section IV-1D, part 1, on page 5 should read "Cohen/Silverman
moved/seconded a resolution to recommend Items IV-1C-7, IV-1C-4,
and IV-1C-5 for CDBG funding."
Replacement pages for those minutes with changes noted are attached to these minutes.
Approved unanimously.
II-2 Cohen/Rosario moved/seconded a motion to approve minutes IURA meeting of November
12, 1998. Approved unanimously.
III STAFF REPORTS
III-1 Personnel and contractor contracts are undergoing yearly review and cost-of-living-
adjustment updates for referral to the Budget and Administration Committee.
III-2 Proposals to seek$400,000 CDBG funding for INHS/AFCU-IDA housing programs and
CCI funds for the Lower West End Complementary Health Care Center grants have been
approved by Common Council and applications are in progress.
III-3 Bohn announced that a$13,000 SARA grant application is in progress to fund a
microfilming of archival documents and purchase a microfilm reader.
III-4 New parking passes were distributed to members present and will be transmitted to other
members.
III-5 Cohen reported on three items from conversations with HUD:
III-5A The scoring of values for project-specific versus community-rating points and
economic development versus housing priorities may have been misinterpreted.
- III-5B Economic development projects are considered more competitive for funding.
Ii lR A MINUTES-JANUARY 14. 1999 e 2
III-5C The established 70/30 ratio of 80% low-to moderate-income split may go above
the 80% level if the presence of the parties in the neighborhood will stabilize the
neighborhood.
Bohn noted that Mazzarella reported INHS was awarded a$400,000 home ownership grant
from the National Reinvestment Corps targeted to assist non-CDBG eligible families
IV ECONOMIC AND DEVELOPMENT
IV-1 COM 1UNITY DEVELOPMENT REVOLVING LOAN FUND
IV-1A Furman spoke toward the risks and reasons for the request to fund Da' Spot.
1 AMOUNT: An increase in funding to support a greater inventory
base should lead to a greater sales volume. The original
request was for$15,000 from the CD-RLF: this increase
to$25,000 represents an increase of monthly repayment
of only ±$50 if the first year is interest-only. Van Cort
estimates that monthly repayments in subsequent years
would be ±$170 for a$15,000 loan and ±$283 for a
$25,000 loan. Conditional purchases from a recent
buying trip await news of the funding.
2 RISK: Strong store fmancing is in place. The requested
$25,000 would be at a 2:1 debt ratio at an assumed 6%
�./ CD-RLF interest making the combined interest rate for
all financing <4%.
3 RENT: The ±2200 sf on the Commons is currently leased at
$12,000 [±$5.45/sf] for nine years with rent escalators
and a sales percentage additions.
4 STAFF: Levels are tied to the level of operation.
5 REQUEST: Furman seeks a$25,000 ten-year 6% interest loan with
first year interest-only and an 8 year balloon.
IV-1B There was question as to the ability of the original three partners to carry the
store past the first few years of operation since they have stated an intention to
move out of the business. Furman noted that like the local Ben&Jerry's
franchise currently benefitting the Learning Web, his intention is to develop the
business to sustainable levels and turn it over to a local social improvement
organization.
IV-1C Although the partners plan to pull out of the business, Cecilia Vargas brings her
local retail apparel experience to the project as long-term store manager.
However, it was noted the cost breakdown submitted does not include a
manager's salary.
IV-1D Furman has made a personal no-interest loan for start-up funds and is looking to
be paid back when and if the store pays off its other funding debts.
IV-1E There was discussion noting strengths of the project, including Furman's record
with similar businesses, Cecilia's retail experience, and social intents of hiring
single parents and turning the business over to a local agency, but also concerns
regarding a lack of marketing budget and ability to reach the projected sales
levels.
Y
THE AGENCY MET IN CLOSED SESSION
IV-1F Preston/Rosario moved/seconded a motion to approve the$25,000 loan at 6%
interest with the following stipulations
1 First year will be interest-only payments, payment schedule complete
in the subsequent nine years.
2 No withdrawal of Furman's personal funds allowed during the first
year unless replaced with funds from another source. Withdrawal of
such funds during subsequent years only if such withdrawals do not put
the business at risk.
3 There will be no loan balloon.
4 Furman must subordinate his own loan to the CD-RLF loan.
5 No profit distributions allowed during the term of the loan.
Approved unanimously.
IV-2 CCI SECTION 108 LOAN-ITHACA LANDING ASSOCIATES, LLC
Agency discussed application by Ithaca Landing Associates for a Section 108 loan. Bohn
clarified that the proposal will create 12 jobs, not 16, as previously noted.
There was concern regarding the effects of a loan default. Future funding from HUD would
be jeopardized, although current assets and funding programs would not be impacted,but
there was concern the CD-RLF might need protection. The principals of Ithaca Landing
Associates have given personal guarantees,but there is concern regarding the financial
histories and IURA inability attach assets in a spouse's name in the event of default.
Consensus was to include a specific asset as collateral for the loan. Staff will determine what
guarantees HUD may require.
Preston/Rosario moved/seconded a motion to add borrower's collateral as a requirement for
the loan to protect the CD-RLF. Approved unanimously.
IV-3 EVAPORATED METAL FILMS 1996 CDBG LOAN
Bohn spoke regarding the EMF loans. The terms of the loan have changed since the
application was made. The firm still seeks to acquire equipment and create jobs with the
monies, but plans to sell one building. IURA funding will be contingent on the firm's
matching with funds from the sale of the building. Members and staff noted reports from
various sources of the improved situation of the firm. The Agency raised no objection to the
staff proceeding with this revised loan.
V HOUSING, NEIGHBORHOODS, AND INFRASTRUCTURE
No reports.
VI BUDGET AND ADMINISTRATION
VI-1 FINANCIAL STATEMENTS
The Small Cities Grant Summary and Status of Loan Repayments to IURA for November
1998 were reviewed and entered into the minutes with the notation that Glyph Technologies
is current and ahead of payment schedule, not as shown on statement.
IURA MINUTES-JANUARY 14 1999 sate 4
VII OTHER BUSINESS
There was discussion regarding a possible change of meeting date for the IURA. The next meeting of
the is scheduled for Monday, March 8, 1999, at 4:00 pm. Staff will notify absent members. Consensus
was to change the normal meeting date to 4:00 pm on the first or second Monday of the month,
pending confirmation of other standing Monday meetings of the members.
VIII NEW BUSINESS
VIII-1 FIDUCIARY RESPONSIBILITY POLICIES
VIII-1A Mutual Housing Association Funding Request
The MHA board members presented request for$20,000 of repaid HODAG
monies to partially fund a paid executive director position. MHA believes this
will be a one-time request. This reflects MHA's desire to stand alone as a housing
entity. Edwards distributed MHA's response to Jane Marcham's letter of
01/02/99.
1 MHA is currently functioning with INHS director as MHA director and
some INHS staff/management assistance as well as contracting with a
private property management firm. MHA pays out$29,000 to INHS
and CSP Management.
2 Because of the nature of the MHA concept there is a history of
unsatisfactory ties with property managers. Experience of other MHAs
seems to recommend against a resident Executive Director.
3 Contract with INHS ended 12/31/98. Contract with CSP Management
will end 02/28/99.
Cohen requested a pro-forma budgeting breakdown similar to the one submitted
with three more years showing the anticipated costs and income of the
association. There was question of the projected salary for the Executive Director
being high for the position, but Edwards noted this was the salary of a 1990
executive director position and had not been increased for cost-of-living nor for
the recent increase in MHA units.
Cohen noted that the agency could convene a special meeting to discuss the matter
once the pro-forma is received, or send to the Budget and Administration
Committee of the Common Council without comment. Consensus was to send to
Common Council and to begin a process of analyzing and formulating policy for
like expenditures.
Cohen/Rosario moved/seconded a resolution to forward the request to the Budget
and Administration Committee of Common Council.
WHEREAS the Ithaca Urban Renewal Agency [IURA] has received a one-year funding request from the
Mutual Housing Association of Tompkins County[MHATC] for$20,000 to partially offset
the costs of hiring an Executive Director for the MHATC, and
WHEREAS the Agency would allocate the$20,000 from receipts of a HODAG loan which is being
repaid by Eddygate Associates, and
WHEREAS the Agency has not as yet formulated policies regarding disbursement of such funds in the
future, and
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IURA MINUTES-JANUARY 14. 1999 page 5
WHEREAS it is the Agency's intent to formulate a policy regarding disbursement of repaid HODAG
funds in the future, therefore now be it
RESOLVED that the IURA forwards to the MHATC's one-year funding request to the Budget and
Administration Committee of Common Council without eosHea. .
Carried unanimously
VIII-1B Loan Fund Specificity
There was discussion regarding the desirability of adding specific target areas or target
purposes to the existing CD-RLF. Considerations included restricting funds to the downtown
area and/or including facade improvements as fundable projects. Rosario noted the
advantages of preferences over restrictions. A need for a definition of"downtown" was
noted, whether contiguous with the BID area or some other description. Meeting CDBG
requirements with facade or code improvements and determine priorities was a concern. The
matter is referred to the Economic Development Committee.
VIII-2 COST OF LIVING ADJUSTMENTS
Bohn noted that COLAs for agency staff are currently under review and preparation.
IX ADJOTTRNMENT
Meeting was adjourned at 6:35 pm.
• end 01/19/98 MFH/mfh
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Minutes of Ithaca Urban Renewal Agency Pip
4:00 pm, Monday, July 12, 1999
Third Floor Conference Room, City Hall
PRESENT: IURA Members Alan Cohen, Eric Rosario,
Susan Cummings, Martha Preston
Staff Katharine Clute, Matthys Van Cort
Nels Bohn, Wies van Leuken,
Kat Hauger, Douglas MacDonald
Others Harry Sicherman, Consultant
Cynthia Yahn, Building Links, Inc.
CALL TO ORDER
Meeting was called to order at 4:10 pm by Mayor Cohen.
II. PREVIOUS MINUTES
Cohen/Cummings moved/seconded a motion to approve the minutes of the IURA
meeting of May 17, 1999, with the following amendment.
Page 8, VI-3, at the end of the paragraph the following is inserted: "Discussion
continued. Rosario raised a concern about timeliness and organization. It
was decided that one (1) person within staff would be designated and
responsible to answer inquiries on funding availability and to follow through
with resolutions made at the agency level. Van Leuken was so designated."
CARRIED, unanimously.
III. STAFF REPORTS
NO REPORTS
IV. ECONOMIC DEVELOPMENT
IV-1 REVISIONS OF IURA ECONOMIC DEVELOPMENET
FINANCING POLICY GUIDELINES
The possibility of charging fees was raised. Bohn agreed that the possibility was
1LRA Minutes, 7-12-99
being researched. Sicherman was able to offer some clarification since he had a
part in writing the original HUD guidelines. Cohen asked that the City Attorney
review the guidelines, specifically Section 6.4. Cohen was concerned that the
notation about term appointments may be contradictory to state law. Preston
applauded Bohn on the work involved and the final product.
Cohen/Preston moved/seconded the following resolution.
WHEREAS, the Economic Development Financing Policy Guidelines and Operating
Plan were approved by the IURA in May, 1995 to establish policies to
guide business financial assistance programs administered by the IURA,
and
WHEREAS, since May 1995 the IURA has adopted individual resolutions establishing
and clarifying the maximum amount of financing available and ineligible
types of businesses to receive financial assistance through the Community
Development Revolving Loan Fund (CD-RLF) that have not been
incorporated into the Guidelines, and
WHEREAS, since May 1995, the IURA has established the following new business
financial assistance programs:
• West State Street Corridor Commercial Loan Program
• West End Commercial Loan Program
• Downtown Loan Fund, and
WHEREAS, the IURA directed the Economic Development Committee to develop
amendments to the Financing Policy Guidelines for the new business
assistance programs consistent with IURA resolutions, and
WHEREAS, the ED Committee reviewed proposed revisions at their 6/27/99 meeting
and recommends the following action, therefore, be it
RESOLVED,that the IURA hereby adopts the revised IURA Economic Development
Financing Policy Guidelines and Operating Plan, dated 7/12/99.
CARRIED, unanimously.
IV-2 GUN HILL REDEVELOPMENT
Bohn reported on the proposed changes to the Gun Hill Redevelopment site. The
Department of Environmental Control (DEC) has discovered possible contamination
on the site. The owner has been hesitant to authorize a study of his land due to the
expense of the study and the possible expense of cleanup if contamination is found.
Preston/Rosario moved/seconded the following resolution.
IL"RA Minutes, 7-12-99)
ENVIRONMENTAL SITE INVESTIGATION OF THE GUN HILL
REDEVELOPMENT SITE
WHEREAS, the staff has been discussing redevelopment of the vacant brownfield
Ithaca Gun factory site located at 121-125 Lake Street with the property
owner, State Street Associates II, L.P., for several months, and
WHEREAS, the preliminary redevelopment concept program for the site proposes the
following elements:
• environmental site remediation
• 50-60,000 sq. ft. of office/light assembly use
• 20-25,000 sq. ft. residential use
• 5-11,000 commercial, health care, restaurant, copy &web center
• 150 additional parking spaces, and
WHEREAS, such a redevelopment potentially provides significant public benefits that
justify assistance to complete the project, such as:
1. tax base expansion
2. job creation
3. remediation of a brownfield site
4. protection of public health and public investment in remediating the
adjacent Ithaca Falls site (under negotiations to be acquired by the
City), and
WHEREAS, existing brownfield conditions present a feasibility issue for
redevelopment of the site and an obstacle to gaining project financing, and
WHEREAS, a thorough environmental investigation of the site is necessary to
determine the extent of contamination and develop a remediation plan &
cost estimate to determine project feasibility as well as seek grant
assistance for remediation, and
WHEREAS, DEC officials estimate conducting a comprehensive environmental
investigation of the Gun Hill site will cost approximately$50,000, and —
WHEREAS, the property owner has indicated a strong reluctance to fully fund the cost
of an environmental investigation, as such expenses represent a large up-
front investment that will not be recouped if the investigation reveals
remediation will be extremely costly, and
WHEREAS, completion of a comprehensive environmental investigation is necessary
to achieve public benefits accruing from site redevelopment and will also
provide information useful to the City for remediating the adjacent Ithaca
Falls brownfield site and for identifying any public health hazards, and
3
IURA Minutes, 7-12-99
WHEREAS, the Economic Development Committee discussed Ithaca Gun
redevelopment issues at their June 28, 1999 meeting and recommends the
following action, therefore, be it
RESOLVED, that the IURA hereby directs staff to enter negotiations with State Street
Associates II, L.P. to develop a mutually acceptable agreement to provide
assistance to conduct a comprehensive environmental investigation of the
Ithaca Gun site as a first step in spurring redevelopment of the site, and be
it further
RESOLVED, that the IURA hereby authorizes the provision of financial assistance to
State Street Associates II, L.P. in the form of a low-interest loan equal to
50% of the cost of the project cost, but not to exceed $25,000, to conduct a
comprehensive environmental site investigation, subject to satisfactory
negotiations regarding, but not limited to the following issues:
1. the scope of work of the study,
2. access to results of the study,
3. refinement of public benefit included in the proposed redevelopment
project,
4. schedule for project remediation and redevelopment,
5. interest rate, term, and repayment terms of the loan, and
6. loan security, and be it further
RESOLVED,that up to 50% of the loan balance be forgiven if the investigation
indicates that the cost of remediating the environmental contamination
renders redevelopment of the site financially infeasible, and be it further
RESOLVED, that the IURA hereby authorizes reallocation of up to $25,000 from the
Community Development Revolving Loan Fund to provide financial
assistance to conduct this environmental design planning study in
accordance with CDBG regulations contained at 24 §CFR 570.205, and be
it further
RESOLVED, that the Mayor, upon approval of the Economic Development Committee,
and review by the IURA Executive Director and the IURA Attorney, is _
hereby authorized to sign any and all documents necessary to implement
this resolution.
CARRIED, unanimously.
IV-3 MICRO-ENTERPRISE ASSISTANCE FOR BUSINESS PLAN
DEVELOPMENT
Rosario/Cohen moved/seconded the following resolution.
4
IURA Minutes, 7-12-99
MICRO-ENTERPRISE ASSISTANCE FOR BUSINESS PLAN DEVELOPMENT
WHEREAS, the owners of J.C. Knight submitted a request for financial assistance to
expand the barbershop business to include beauty salon services, thereby
creating at least one new employment opportunity, and
WHEREAS, J.C. Knight is a minority-owned, microenterprise business currently
operating at 106 Cayuga Street, and
WHEREAS, J.C. Knight is the only barbershop in the City of Ithaca that primarily
targets services to the african-american community, thereby providing an
essential service to many downtown neighborhood low/mod residents, and
WHEREAS, the [IJRA seeks to create employment opportunities, facilitate expansion
of business activity and encourage micro-enterprise development by
providing financial assistance, and
WHEREAS, the request for financial assistance lacks a detailed and up-to-date business
plan that analyzes the expanded business' ability to generate cash flow
adequate to meet business expenses and repayment of any loan assistance,
and
WHEREAS, the URA cannot readily evaluate the request for financial assistance or
the likelihood of success of the business without a business plan, and
WHEREAS, at their June 28, 1999 meeting the Economic Development Committee
recommended to the IURA that staff speak with the owners of the J.C.
Knight Barbershop and convey to them that funds are available, but a
business plan is first needed, and suggest Mr. Jeff Furman, of the CEO
micro-enterprise program, as a possible consultant to assist in preparation
of a business plan, and
WHEREAS, the Economic Development Committee further recommended that the
IURA cover the cost of assistance in preparation of a business plan up to
$2,000 if there is a fee, and —
WHEREAS, the IURA currently contracts with the Alternatives Fund of Ithaca, Inc. to
implement the CEO micro-enterprise program to provide technical and
financial assistance to new and existing micro-enterprises located in the
City of Ithaca, and
WHEREAS, the Director of the CEO micro-enterprise program has agreed to provide
direct technical assistance to the J.C. Knight business owners to develop a
business plan, including the utilization of Mr. Jeff Furman's services as
appropriate, but will require outside financial consulting services to
prepare financial projections, therefore be it
RESOLVED, that the IURA hereby authorizes payment of up to $2,000 to the
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IURA Minutes, 7-12-99
Alternatives Fund of Ithaca, Inc., or their subcontractor(s), for technical
assistance services to J. C. Knight in preparation of a business plan, and be
it further
RESOLVED, that the IURA hereby reallocates necessary funds from the Community
Development Revolving Loan Fund to this CDBG eligible micro-
enterprise assistance activity in accordance with 24 CFR 570.201(o).
CARRIED, unanimously.
,t `3 � IV-4 CARPENTER BUSINESS PARK DISPOSITION-EDC
RECOMMENDATION
The agency went into Executive Session to discuss the disposition of the
Carpenter Business Park at 5:50. The Executive Session was ended at 6:35 with
3 no action taken.
I
V. BUDGET AND ADMINISTRATION
V-1 FINANCIAL STATEMENTS-MARCH 1999, APRIL 1999,MAY 1999
The financial statements were reviewed. It was noted that Glyph Technologies
was behind in their payments as of the report and that the partner who had sold his
share of the business wanted to be released from his personal guarantee. No
action was taken. Preston requested that the agency be kept abreast of the
situation.
V-2 1999 COLA
The B&A Committee reported that the item had been tabled in Committee until
further research could be completed. No further action was required or taken by
the full IURA.
V-3 PLANNED PARENTHOOD REQUEST FOR FUNDS
Cohen moved/Cummings seconded the following resolution for discussion.
It was suggested that an amendment be added that would read, "Resolved, staff
recommends that 50% of the project cost, not to exceed$11,425, be provided as a
deferred loan from the UDAG program income, and be it further". The
suggestion was not supported. There was concern voiced that this request was not
a good use of UDAG funds, and that rather than for grants, these funds should be
used for loans so that the funds remain in the community.
6
[URA Minutes, 7-12-99
REQUEST FOR FUNDING - UDAG
WHEREAS, Planned Parenthood requested funding for facade maintenance of their
building, and
WHEREAS, the requested amount is $22,850.00, and
WHEREAS, the Budget & Administration (B&A) sub-committee has determined that
UDAG program income will fund this specific project, and
WHEREAS, the B&A sub-committee recommends that the IURA provide deferred
loans to non-profit agencies, on a case-by-case basis, for facade
improvement within the boundaries of the West State Street Commercial
Loan Program, therefore be it
RESOLVED,that the IURA provide a deferred loan to Planned Parenthood for the full
amount of the request from UDAG program income, and be it further
RESOLVED, that this request be considered a one-time exception since the IURA is in
the process of determining allocation policy for all of its program income,
including UDAG funds.
CARRIED,unanimously.
Discussion continued clarifying that the purpose of the $22,850 was for facade
improvement only and that this was an exception and will not set a precedent for
future fund requests.
V-4 NORTHSIDE PARK IMPROVEMENT APPLICATION
Clute reported that the IURA's Budget and Administration(B&A) Committee
approved authorizing staff to prepare the application for the grant. The B&A
Committee did not have firm figures and was uncomfortable approving the
request without figures.
Preston/Rosario moved/seconded the following resolution for discussion.
Request to Proceed on a Grant Application — 1999 Parks Development Grant Program
under the Environmental Protection Act of 1993 and the Clean Water/Clean Air Bond
Act of 1996
WHEREAS, the current funding for the park development (CDBG Yr#2; $17,000
active balance) is not sufficient to develop all parts of the park, and
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ILRA Minutes. 7-12-99
WHEREAS, the pedestrian bridge (Adams St. bridge) is the link between two Northside
Neighborhoods, and is in need of replacement, and
WHEREAS, the pedestrian bridge is contiguous with the Northside park, and
WHEREAS, the Parks Commission has approved a city-wide plan for all public parks,
and
WHEREAS, the original design for Northside Park is aligned with this city-wide plan.
and
WHEREAS, any new modifications to the Northside Park Design will be done in
accordance with the approved city-wide plan, and
WHEREAS, the IURA would like to include the bridge in its original design scope, and
WHEREAS, the IURA has found a funding source interested in providing a matching
grant to augment the CDBG funds to fully develop the Northside Park
including the bridge, and
WHEREAS, the name of the funding source is 1999 Parks Development Grant Program
under the Environmental Protection Act of 1993 and the Clean Water/Clean
Air Bond Act of 1996, and
WHEREAS, the funding deadline is August 14, 1999, and
WHEREAS, the IURA staff is presently compiling the matching portion of the grant
through intellectual expertise and administration, and
WHEREAS, the IURA staff will continue to compile any physical matching projects
and has requested a review of Streets and Facility's Capital Budget to
determine if any planned improvements/maintenance will be contiguous
with the Park Boundaries, and therefore be it
RESOLVED,that the IURA authorizes the B&A Committee to review and approve the—
grant submission to assist in the development of a much needed Park prior
to the August 14 deadline, and be it further
RESOLVED,that the Mayor, as chair of the IURA, or Thys Van Cort, as Executive
Director of the IURA, is hereby authorized to sign any and all application
instruments necessary for submission of this application, and be it further
RESOLVED, the IURA will receive a report on the application if submitted.
CARRIED, Yea—Cohen, Preston, Rosario
Nay—Cummings
8
It RA Minutes, 7-12-99)
V-5 ELIGIBLE USES OF PROGRAM INCOME (HODAG, UDAG,
CDBG)
Sicherman attended the meeting at the invitation of the Board, providing
background on eligible uses of program income from his expertise and responding.
to questions from the IURA Board.
Van Cort suggested that staff get together to establish policy and bring
suggestions to the board for review and possible approval. Van Cort asked that
ideas be given to staff within the next 4 to 6 weeks and staff would then prepare
policy suggestions for the board's review at the September or October meeting.
Cohen asked Sicherman for a synopsis of alternative funding sources outside of
HUD. Clute reminded the agency that the IURA was hampered by not being a
501(C)-(3). Clute reported that the City Attorney was doing research into what
could be done to allow the IURA to be a legal non-profit. Van Cort suggested
restructuring the existing Local Development Corporation (LDC), created by
Common Council in 1995, to be more functional since LDCs are 501(C)-(3)s, that
is, non-profits.
V-6 REQUEST FOR FUNDING-GIAC BRICKWORK REPAIRS
The B&A Committee reported that the request for funding had been rejected in
Committee. No further action was required.
VI. HOUSING,NEIGHBORHOODS, AND INFRASTRUCTURE
VI-1 WEST END/WEST STATE RENTAL REHABILITATION
PROGRAM—LOAN SIGNATURE AUTHORITY (1996 YEAR#3
CDBG YEAR#3, ACTIVITY 1.3)
Rosario moved and Cohen seconded the following resolution.
West End/'West State Rental Rehabilitation Program—Loan Signature Authority
(1996 Year#3 CDBG Year#3, Activity 1.3)
WHEREAS, the City was awarded $350K in the third year increment of the 1996
CDBG multi-year award to implement a West State/West End Rental
Rehabilitation program to renovate 28 substandard rental units, and
WHEREAS, the IURA is directly implementing the program in accordance with the
Program Policy Guidelines adopted by the Housing, Neighborhoods &
Infrastructure (HNI) Committee that requires endorsement of each
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IL RA Minutes, 7-12-99
individual Rehabilitation Assistance Agreement by both the property
owner and the IURA, and
WHEREAS, current IURA policy is not clear on whether the Executive Director of the
IURA is empowered to authorize such agreements, and
WHEREAS, similar CDBG-funded housing assistance programs being carried out by
Ithaca Neighborhood Housing Services on behalf of the IURA requires no
IURA approval to endorse individual loan agreements to implement
housing programs, and
WHEREAS, the HNI Committee recommended the following action at their June 18,
1999 meeting, therefore, be it
RESOLVED, that the IURA hereby authorizes the Executive Director of the IURA and
the HNI Committee to review and approve,upon review of the IURA
Attorney, to endorse Rehabilitation Assistance Agreements and any other
documents necessary to implement the West State/West End Rental
Rehabilitation Program.
CARRIED, unanimously.
VI-2 WEST END HOME IMPROVEMENT PROGRAM (WHIP, 1996
YEAR#3, ACTIVITY 2.2)
Cohen moved and Rosario seconded the following resolution.
Selection of Contractors to Implement the West End Home Improvement Program
(1996 Year#3 CDBG,Activity 2.2)
WHEREAS, the City was awarded $150K in the third year increment of the 1996
CDBG multi-year award from the U.S. Department of Housing and Urban
Development (HUD) to implement a West End Home Improvement
Program to bring 10 -12 substandard residential units owned and occupied
by low/mod income households into standard, code compliant condition
through deferred loans to assist in stabilizing the remaining residential
fabric of a transitional neighborhood adversely impacted by the Rt. 96
highway project, and
WHEREAS, preliminary program outreach and marketing has identified 5 property
owners interested in the program, and
WHEREAS, INHS was invited to submit a proposal to implement the program, and
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IURA Minutes, 7-12-99
WHEREAS, due to existing staffing demands on LATHS construction personnel, 'NHS
submitted a proposal, dated May 6, 1999, to implement only the non-
construction portions of the program, and
WHEREAS, INHS proposes to provide the following services at a cost of S750 per
closed loan:
• Loan application intake and counseling
• Determination of eligibility of borrower
• Loan processing
• Payment to contractors
• Post loan services, and
WHEREAS, at the request of IURA staff, Warren W. Currier Jr. was asked to submit an
independent proposal for construction management services, dated May
27, 1999, to complement the loan and marketing services provided by
INNS, as an independent contractor for the project at an hourly rate of$30
per hour, and
WHEREAS, Warren Currier's proposal estimates an average of 35 hours of
construction management services per housing unit assisted, resulting in a
projected cost of$1,050 per unit, and
WHEREAS, the total cost to implement the program through independent contractors is
estimated to equal $1,800 per unit completed, an amount roughly equal to
the $1,786 per unit cost paid to INHS to implement the Northside Triangle
Housing Renovation Program as part of the 1996 Year II CDBG program,
and
WHEREAS, the HNI Committee recommended the following action at their June 18,
1998 meeting,therefore, be it now
RESOLVED, that the IURA hereby selects INHS and Warren W. Currier, Jr. to
implement the West End Home Improvement Program in accordance with
proposals received, and be it further
RESOLVED, that the IURA Executive Director, upon review by the City Attorney, is
hereby authorized to endorse a contract with each of the selected
independent consultants, Warren Currier, Jr. and 'NHS, for an amount not
to exceed $21,600, and be it further
RESOLVED, that the IURA delegates authority to the HNI Committee to establish
appropriate policies to guide contractors to implement the program.
CARRIED, unanimously.
11
Minutes, 7-12-99
VI-3 BUILDING LINKS, INC., CDC
Cummings moved and Cohen seconded the following resolution.
Request for funding—Building Links, Inc. (CDC) request for HODAG funds to
rehabilitate 5 low and moderate income rental properties outside the boundaries of the
IURA's present Rental Rehabilitation Loan Program (RHLP) or be included in the
RHLP program on an exception by exception basis.
WHEREAS, the B&A subcommittee was tasked in February 1999 to draft policy for all
current program income, including HODAG, UDAG, etc., and
WHEREAS, a HODAG funding request and RHLP inclusion request from Building
Links was submitted to and reviewed by the Budget & Administration
(B&A) sub-committee on June 14, 1999, and
WHEREAS, the B&A sub-committee referred this issue to the Housing,Neighborhood
and Infrastructure sub-committee to determine that the 5 rental units were
outside of the eligibility area for the RHLP, and
WHEREAS, staff has determined that all properties enumerated in the request are
outside the boundaries of the RHLP, and
WHEREAS, The Housing,Neighborhood & Infrastructure Committee reviewed the
request at their June 18, 1999 meeting and recommended the following,
therefore be it
RESOLVED,that the IURA hereby denies the request for HODAG funds to be used at
this time to rehabilitate the 5 Building Links, Inc. low-mod income rental
units since the IURA is in the process of determining HODAG allocation
policy for all of its program income, and be it further
RESOLVED,that the Building Links request for inclusion in the RHLP be tabled to be _
reviewed at a later date when staff can determine if the actual level of
RHLP participation warrants the expansion of the area in which the
Building Links, Inc.'s five low/mod income rental units are located.
CARRIED, unanimously.
Further discussion occurred regarding the IURA's use of the deferred loan
agreement. Cohen suggested this conversation should continue in a larger forum
including the HNI Committee members. Yahn remarked that she would like to
have an opportunity to explain to the board the direction Building Links, Inc. is
heading. Cohen supported the suggestion. Yahn also asked for clarification as to
12
IURA Minutes, 7-12-99
the reasons her initial request for HODAG funding was rejected. Rosario asked
that the clarification be put in writing and given to the full agency as well.
VII. OLD BUSINESS
None addressed.
VIII. NEW BUSINESS
VIII-1 NEXT MEETING DATE
The next meeting was scheduled for July 15, to be held at 5:00 pm, as a special
meeting for a presentation by Building Links, Inc. The following meeting was
scheduled for August 23, 1999 at 4:00 pm.
IX. ADJOURNMENT
Meeting was adjourned at 6:45pm.
end 8/1999 KSH
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Minutes of the Ithaca Urban Renewal Agency
4:00 PM, Monday, August 23, 1999
Common Council Chambers, City Hall
PRESENT: IURA Members Alan Cohen, Susan Cummings,
Martha Preston, Eric Rosario
Staff Katharine Clute, Doug McDonald,
Wies van Leuken, Aaron Arnold,
Matthys Van Cort, Adam Smith
Others Cynthia Yahn, Allan Warshawsky
I. CALL TO ORDER
Meeting was called to order at 4:23 PM by Chair Alan Cohen
II. APPROVAL OF MINUTES, IURA MEETING,JULY 12, 1999
Cummings/Preston moved/seconded that the minutes from July 12, 1999 be
approved with the following amendment:
Page 6, IV-4, Carpenter Business Park Disposition- EDC Recommendation,
should be moved to VIII,Executive Session, and all following sections shifted
appropriately.
CARRIED unanimously.
III. STAFF REPORTS
III-1 1999 PARKS DEVELOPMENT GRANT PROGRAM
APPLICATION- REPORT
Clute stated that because the IURA did not have 501(c)(3) (non-profit) status, it
was unable to apply for this program.
III-2 1999 GRANT AWARD- REPORT
Clute stated that the 1999 CCI and CDBG grants had been awarded.
[C RA Minutes, 8-2;-99
IV. ECONOMIC DEVELOPMENT
IV-1 CARPENTER BUSINESS PARK DISPOSITION- RESOLUTION
Rosario and Preston stated that because it was not the IURA's intent to give
unilateral control of the disposition of the Carpenter Business Park to Mayor Cohen
in Resolution#874. Because the property remained unsold, and because the IURA
was not informed in detail of the process, the ED Committee recommended a
resolution be brought to the full Agency.
Rosario/Preston moved/seconded a resolution modifying Resolution#874, requiring
all offers on the Carpenter Business Park property to be brought to the full IURA
for action.
WHEREAS, on September 10, 1998, the IURA passed resolution#874 to select Lama
Real Estate to market the Carpenter Business Park and further authorized
the Mayor to sign any and all instruments necessary to convey the parcels
for fair market value without further IURA approval, and
WHEREAS, the parcels have been marketed for over 11 months and at least one written
purchase offer has been submitted, and
WHEREAS, a June 28, 1999 Economic Development Committee resolution sought
timely updates from the Mayor on developments surrounding disposition
of Carpenter Business Park and that the IURA take immediate action to
enter negotiations on any written offers received for acquisition of
Carpenter Business Park, and
WHEREAS, a July 9, 1999 deadline to all interested parties to submit purchase
agreements has elapsed without any written response to the purchase offer
submitted up updates provided in the past 30 days to the Economic
Development Committee explaining the delays or negotiations, now
therefore be it
RESOLVED, that upon recommendation of the Economic Development Committee, the
IURA hereby retract its delegation of authority to the Mayor to take final
action on behalf of the IURA to convey the Carpenter Business Park
without further IURA approval granted in resolution#874, and be it
further
RESOLVED, that upon receipt, any written purchase offers received be promptly
brought before the IURA as a meeting agenda item for consideration and
action, and be it further
2
IURA Minutes, 8-23-99
RESOLVED, that a special IURA meeting shall be called to consider any written
purchase offer received if the next regularly scheduled IURA meeting is
more than 10 days from the date of receipt of the purchase offer.
CARRIED.
Yea— Rosario, Preston, Cummings
Nay— Cohen
Abstention —Burlington
IV-2 ELECTION OF IURA VICE-CHAIR— RESOLUTION
Election of the IURA's Vice-Chair was tabled with no action taken.
V. BUDGET AND ADMINISTRATION
V-1 IURA BY-LAWS DISCUSSION
Discussion of the IURA's by-laws was tabled with no action taken.
VI. HOUSING,NEIGHBORHOODS,AND INFRASTRUCTURE
VI-1 CONFLICT OF INTEREST—RESOLUTION
Clute reported that the HNI Committee had passed a resolution recommending
that the IURA request a waiver from HUD of the Conflict of Interest ruling.
Clute stated that Arne van Leuken, son of IURA staff member Wies van Leuken,
wished to participate in the INHS First Time Home Buyers Education and Loan
Program. Clute further stated that because Wies has no role in the selection of
loan recipients and that Arne was an independent adult, it would be appropriate to
allow him to participate. Van Cort expressed his support for this resolution.
WHEREAS, the Ithaca Neighborhood Housing Services(INHS) has requested the City
of Ithaca to assist in seeking HUD's approval of an exception to the
conflict of interest regulations (24 CFR 570.611) governing the use of _
Small Cities Community Development Block Grant(CDBG) funds, and
WHEREAS, requests for waivers of the conflict of interest regulations will be
considered by HUD on a case by case basis,providing the request is
discussed in an open meeting of the relevant governing body, and also the
municipal attorney certifies that no state or local law would be infringed
by the granting of a waiver in the subject case, and
WHEREAS, the City of Ithaca contracts with the IURA to administer Small Cities
CDBG grant received by the City, and
3
IURA Minutes, 8-23-99
WHEREAS, INHS operates a continuing program that is designed to increase home
ownership opportunities for low-income households, and
WHEREAS, Arne van Leuken, who qualifies as a low- & moderate-income individual,
has submitted a request to participate in the INHS First Time Home
Buyers Education and Loan Program, and
WHEREAS, Arne van Leuken is the son of Wies van Leuken, the IURA's Grants
Monitor, and
WHEREAS, Wies van Leuken, the IURA staff member who is related to the proposed
participant, plays no role in the decision-making process regarding the
approval of the loans or the acceptance of a purchase offer as only the
INHS Loan Committee has the authority to approve loans and only the
INHS Board of Directors has the authority to approve the sale of the
property, and
WHEREAS, Arne van Leuken, as a low- or moderate-income person, is a member of a
group intended to be the beneficiaries of home ownership assistance
through the House Recycling program and the exception will permit him
to receive generally the same opportunities made available to other
eligible low-or moderate-income person interested in first-time home
ownership, and
WHEREAS, after full disclosure of the potential conflict of interest and subject to
approval of a conflict of interest exception issued by HUD, now, therefore,
be it
RESOLVED, that having discussed the matter in an open meeting, the URA authorizes
the IURA Chairperson, upon review by the City Attorney, to submit the
formal request to HUD for an exception to the conflict of interest
provisions under 24 CFR 570.611(d) to allow Arne van Leuken to
participate fully in the INHS First Time Home Buyers, subject to
certification by the City Attorney that no state or local law would be
infringed by the granting of a waiver in the subject case.
CARRIED unanimously.
VII. OLD BUSINESS
No reports
4
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IURA Minutes, 8-23-99
VIII. NEW BUSINESS
VIII-2 RE: 530 AND 611 W. BUFFALO STREET
Cynthia Yahn distributed a letter to the IURA formally requesting that the IURA
begin negotiations with Building Links, Inc., a Community Development
Corporation, for the sale to Building Links of properties at 611 W. Buffalo St'Ca
residential parking lot) and 530 W. Buffalo St. (a municipal storage building).
EXECUTIVE SESSION
Rosario/Cummings moved/seconded a motion to enter an Executive Session to
discuss a purchase offer made by Building Links, Inc., CDC. The Executive
Session began at 4:50 PM and ended at 6:45 PM with no action taken.
VIII-1 NEXT MEETING DATE
The next meeting date was left as September 30, 1999, 4 PM.
EXECUTIVE SESSION
Cummings/Preston moved seconded a motion to continue the Executive Session,
which resumed at 7:12pm and ended at 7:45 with no action taken.
IX. ADJOURNMENT
The meeting was adjourned at 7:45 PM.
end 8/27/1999 ARS/ars/ksh
;-
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Minutes of A Special Meeting Of the
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Ithaca Urban Renewal Agency
4:00 PM,Tuesday,August 31, 1999
Third Floor Conference Room,City Hall
PRESENT: IURA Members Alan Cohen(arrived 5:00)Susan Cummings
Eric Rosario,Martha Preston
Staff Kat Clute,Matthys Van Con, Kat Hauger
Nels Bohn,Doug McDonald(arrived 5:00)
Others Bob Lama
CALL TO ORDER
Meeting was called to order at 4:10 PM by Susan Cummings.
II CARPENTER BUSINESS PARK DISPOSITION
Preston moved and Rosario seconded moving into EXECUTIVE SESSION to discuss negotiations on the
disposition of Carpenter Business Park.
CARRIED,unanimously.
The Agency moved into executive session at 4:10 pm. The Agency left executive session at 5:45 pm,with
no action taken.
III OTHER BUSINESS
There was no other business addressed or reported.
IV ADJOURNMENT
Meeting was adjourned at 5:45 PM.
end 09/23/99 ksh
6trrAv„k o ' cil
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Minutes of A Special Meeting Of the
Ithaca Urban Renewal Agency
4:00 PM,Monday, September 13, 1999
Council Chambers,City Hall
PRESENT: IURA Members Alan Cohen(arrived 4:15)Susan Cummings
Jill Burlington, Martha Preston(left 4:50)
Staff Kat Clute,Matthys Van Cort,Kat Hauger
Nels Bohn,Doug McDonald,Wies van Leuken
Others Bob Lama,Allen Warshawsky,Cynthia Yahn
Richard Ruswick,Patricia Dunn
CALL TO ORDER
Meeting was called to order at 4:10 PM by Susan Cummings.
II CARPENTER BUSINESS PARK DISPOSITION
Burlington moved and Preston seconded moving into EXECUTIVE SESSION to discuss negotiations on
the disposition of Carpenter Business Park.
CARRIED,unanimously.
The Agency moved into executive session at 4:15 pm. The Agency left executive session at 5:00 pm,with
no action taken.
HI OTHER BUSINESS
There was no other business addressed or reported.
IV ADJOURNMENT
Meeting was adjourned at 5:02 PM.
end 09/23/99 ksh
Clfirre;13k9- 16 t1
D ° �\I'L%
o �Minutes of A Special Meeting Of the
Ithaca Urban Renewal Agency
\>%
4:00 PM,Monday,September 20, 1999
Council Chambers,City Hall
PRESENT: IURA Members Alan Cohen,Eric Rosario,Susan Cummings
Jill Burlington(left 5:15)
Staff Kat Hauger,Matthys Van Cort,
Nels Bohn(left 5:25)
Doug McDonald(arrived 4:55)
Others Bob Lama,Allen Warshawsky, Cynthia Yahn
Gary Sloan, Ed Hooks,Richard Ruswick
Patricia Dunn(left 5:25)
CALL TO ORDER
Meeting was called to order at 4:20 PM by Mayor Cohen.
II CARPENTER BUSINESS PARK DISPOSITION
The Agency discussed and negotiated with representatives of Building Links,Inc.regarding the terms and
conditions of the September 10, 1999 purchase offer received from Building Links,Inc.
Rosario moved and Cummings seconded a resolution to accept the purchase offer with negotiated changes.
RESOLVED, the Ithaca Urban Renewal Agency accepts the purchase offer of September 10, 1999 from Building
Links,Inc.with changes per verbal negotiations conducted during the September 20, 1999 meeting,
and be it further
RESOLVED, that the Ithaca Urban Renewal Agency recommends to the Common Council of the City of Ithaca that
the purchase offer of September 10, 1999 from Building Links, Inc. be accepted with changes as
stated.
CARRIED,unanimously —
III OTHER BUSINESS
There was no other business addressed or reported.
IV ADJOURNMENT
Meeting was adjourned at 6:10 PM.
end 09/23/99 ksh
l
144
Minutes of the Ithaca Urban Renewal Agency e '�
4:00 PM, Thursday, September 30, 1999
Second Floor Conference Room, City Hall
PRESENT: IURA Members Alan Cohen, Susan Cummings,
Martha Preston, Eric Rosario,
Jill Burlington (through V-3)
Staff Katharine Clute, Doug McDonald,
Wies van Leuken, Kat Hauger,
Nels Bohn
Others Cynthia Yahn
I. CALL TO ORDER
Meeting was called to order at 4:08 PM by Chair Alan Cohen
II-1. APPROVAL OF MINUTES, IURA MEETING, AUGUST 23, 1999
Rosario moved, Cohen seconded that the minutes from August 23, 1999 be
approved with the following amendment:
Page 2, IV-1, Carpenter Business Park Disposition- Resolution, 4th WHEREAS,
3rd line should read, "submitted or updates..." (Change indicated in bold type.)
CARRIED unanimously.
II-2. APPROVAL OF MINUTES, SPECIAL IURA MEETINGS,
(AUGUST 31, 1999, SEPTEMBER 13, 1999 AND SEPTEMBER 20,1999)
Preston moved, Cummings seconded the minutes of the Special IURA meetings
from August 31, 1999, September 13, 1999 and September 20, 1999 be approved
as distributed.
CARRIED unanimously.
III. STAFF REPORTS
III-1 SPECIAL CDBG ENTITLEMENT LEGISLATION - DISCUSSION
Bohn reported on the possibility of an optional Special Entitlement Program for
cities with 25,000-50,000 populations. Bohn was not currently clear on where the
bill is located in the congressional process. Bohn gave a few pros, cons, and
concerns to accepting the Entitlement Position.
IURA Minutes, 9-=0-99
Pros: Could enable planning of future expenditures
Rating would no longer be an issue for deciding types of projects included in
the application
Staff could spend less time on the application process
20% of funding can be used for administration and planning
Cons: The figure suggested is low compared to recent grant awards ($645,000)
Concerns: 1) CCI applications, would a special entitlement city still be eligible?
Bohn reported that his contact, Alan Joles, from HUD, Washington, DC, said
a special entitlement city would not be eligible for competitive rounds,
whether CCI or CDBG.
2) Security on 108 loans for MRI and ILA, how would existing agreements be
addressed? Future entitlement funds would secure existing Section 108 loans.
3) The formula used to determine the amount of funding for special
entitlement cities. The formula used the CDBG entitlement criteria except for
the growth lag factor in relation to average US cities.
Bohn reported he had been contacted because HUD was looking for input from
possible special entitlement communities as to whether or not the communities would
be supportive of such a move.
Clute gave additional concerns. The amount suggested ($640,000-675,000) would
reduce the scope of work doneby the Community Development Office. The amount
suggested a trade off between risk and stability. Clute asked Mayor Cohen if he knew
whether or not the figure was set in stone or if it was negotiable. Clute wanted to
know when the legislation was due to come out of committee, whether or not the
IURA would have time to look at the ramifications of a decision for or against
accepting special entitlement status. Clute asked how the IURA would be
transformed if special entitlement status were accepted, giving a few options such as
moving to a Local Development Corporation (LDC), disbanding, etc. Clute asked
about personnel ramifications of these possible actions. Would they be moved into
the City employee base, become contractors, remain paid staff, etc? Clute suggested
workload would become an issue.
Cohen asked that Clute put her questions and concerns into a written form for him.
Clute responded that it was forthcoming to the IURA.
Cummings asked if the legislation was written or still being formulated. Bohn
reported that it had not yet been introduced but was being discussed as part of the FY
2,000 HUD appropriations legislation. Bohn clarified that each eligible community
would have an option to opt in, to opt out, or to defer a decision for at least a year.
Cohen suggested the whole entitlement issue is rather political and partisan. Cohen
has been keeping the Common Council informed. Cohen confirmed that it will be up
to the Agency and Common Council to determine future action regarding Entitlement
Status once the options are definite, but he would like the City to have the option to
2
IURA Minutes, 9-30-99
have guaranteed funding.
III-2 COMMUNITY OUTREACH PARTNERSHIP CENTER (COPC)
GRANT APPROVAL—DISCUSSION
Clute reported that Cornell University has received notice that they have been
awarded the grant. The question remains as to whether the IURA really wishes to
participate in the COPC grant. The IURA was to work with Cornell in a housing
area analysis. Clute asked the Agency to determine whether or not the COPC
grant would be beneficial to the IURA, and if not, if the IURA really wanted to
participate. Cummings urged the rest of the Agency members to look at the
COPC grant request very carefully. Cummings stated she was concerned with the
wording, the clarity of intent and purpose, especially the Brownfield section.
Clute explained that through this grant Cornell is stating it wants to work with the
City. Through previous discussions during late Spring, the IURA was included as
a participant in the grant application, but Clute stressed it's up to the IURA to
decide if it wants to remain involved or drop out of the program. No participation
agreements have been signed.
Cummings expressed concerns that the IURA might not have been included in the
development of this new program and needs to be active in and knowledgeable of
their development.
Rosario asked specifically for staff suggestions of how much work is anticipated
to fully participate in the COPC grant before making a decision and voicing his
opinion on whether or not to participate. Cohen remarked that the City/Cornell
political relationship was important to Common Council.
Cummings asked for written recommendations from the staff regarding
participating in the COPC grant. Cummings also asked if staff found the anything
directly helpful to the IURA in the grant proposal. Clute responded the benefits
are all indirectly related and suggested there were other non-profits willing to pick
up what the IURA drops.
Cohen stated that Common Council will need to determine how they want to
develop the City/Cornell relationship, vis-à-vis the COPC. The Agency is
awaiting further information from Mayor Cohen on the Common Council
discussion and Clute will pursue transferring the COPC grant projects to local
non-profits.
III-3 COLA 2000—REFERRAL TO COMMITTEE
Clute reported that it was time to begin thinking of the year 2000 Cost Of Living
Allowance (COLA), especially since we are still awaiting a decision on the 1999
COLA. Cohen suggested that traditionally the IURA waited for the City's
decision and followed the City's lead. Cummings thanked staff for the reminder.
IURA Minutes, 9-30-99
1II-4 CONTRACT LEGAL SERVICES — REFERRAL TO COMMITTEE
Clute noted that receiving legal opinions takes a long time. The B&A committee
has asked the staff to investigate outside counsel costs. Cummings reported
former City Attorneys were suggested. Some of whom include Nash, Gutman,
and Shapiro. Cohen suggested a few more names: John Barney, Randy Marcus,
and Mariette Geldenhuys. Clute reported that after a meeting last spring with the
City Attorney, staff discovered that IURA business was taking up approximately
40% of the City Attorney's time (8 hours per week). Geldenhuys gave an
estimated cost of time to be $22,000 per year. Preston stated that she was favor of
the IURA seeking outside counsel. Cummings stated she leaned in favor of
contracting out legal services, as well. Cummings asked to have the suggestion
put into resolution form for Agency vote.
IV. ECONOMIC DEVELOPMENT
IV-1 CCI—RELOCATION TO TRANSMISSION POLE, INLET ISLAND
INDEBT AND PLEDGE IURA ASSETS FOR NYSEG LETTER OF
CREDIT - RESOLUTION
Bohn presented the resolution naming McDonald as signatory because he was
available during the time required for the signing and time was of the essence.
Cohen moved, Preston seconded the resolution for the NYSEG Letter of Credit
(97 CCI).
WHEREAS, HUD approved the City's 1997 Canal Corridor application, including
$100,000 in funding to be matched by approximately$50,000 from
NYSEG to relocate an electric transmission pole on Inlet Island, and
WHEREAS, a letter agreement between NYSEG and the IURA, dated 2/28/97, and
included in the CCI application, specified that the IURA is responsible to
provide NYSEG with an irrevocable letter of credit to assure project
completion, and
WHEREAS, Tompkins County Trust Company has informed staff that before it can
issue a Letter of Credit, the agency must provide documentation
authorizing an individual to both indebt the agency and pledge the
agency's assets as collateral for the Letter of Credit, now, therefore, be it
RESOLVED, the IURA hereby authorizes Douglas McDonald, Acting Executive
Director, to indebt the Agency and pledge the Agency's assets as collateral
for a one-year letter of Credit in the amount of$30,000 in favor of NYSEG, and
be it further,
RESOLVED,that Douglas McDonald is authorized to execute all necessary and
appropriate documents to effect issuance of this letter of credit.
CARRIED unanimously.
4
IURA Minutes, 9-30-99
AGENDA ORDER CHANGE: V-3 WAS BROUGHT FORWARD AT THIS POINT
After much discussion and clarification of intent Preston moved and Cohen
seconded a resolution electing a Vice Chair for the IURA. Jill Burlington left
prior to the vote on the resolution.
WHEREAS, the bylaws of the IURA call for a membership to consist of five (5)
members, including the Mayor of the City of Ithaca, and
WHEREAS, the bylaws further specify that officers of the Agency shall consist of a
Chair, Vice Chair, and Secretary to be elected at each annual meeting of
the Agency, and
WHEREAS, in the absence of the Chair, the Vice Chair shall perform the duties of the
Chair, and
WHEREAS, the IURA has not elected a Chair nor a Vice Chair for several years, and
the Mayor has acted as Chair in the interim, and
WHEREAS, in the absence of the Chair, the lack of an elected Vice Chair could
hamper the ability of the IURA to schedule and hold meetings, and sign
leases, contracts or other instruments critical to community development
initiatives. Now, therefore be it
RESOLVED, that the Ithaca Urban Renewal Agency has scheduled an immediate
election for Vice Chair of the IURA, and be it further
RESOLVED,that the Ithaca Urban Renewal Agency has elected Susan Cummings as
Vice Chair of the IURA.
CARRIED unanimously.
It was noted that a full discussion of the By-laws was still desired by the Agency.
REGULAR AGENDA ORDER WAS RESUMED.
IV-2 CARPENTER BUSINESS PARK DISPOSION - REPORT
Bohn reported negotiations are in acceptable form, however as of the IURA
meeting date, there was no signed purchase offer received. The brokerage fees
issue is still holding up the signing. Bohn confirmed that the other two issues
were satisfactorily addressed. The Agency offered Yahn the opportunity to speak
to the issue on the floor. Yahn explained that at the end of the last Special IURA
meeting of September 20, 1999, she had not been in agreement with the decision
reached with regard to the brokerage fees. Yahn explained that she took the
decision to mean she needed to be in communication with the two brokers
involved. Yahn described her discussions with the brokers and asked Cohen, in
his role as Mayor, to work with the Selling broker in discussing fee breakdowns.
5
[URA Minutes, 9-30-99
V. BUDGET AND ADMINISTRATION
V-1 AUGUST FINANCIAL STATEMENTS
There was a question asked about the $0 principle noted in two of the outstanding
loans. It was explained that those two loans, Da'Spot and EMF-Phase II, were
structured as interest only for the first year.
V-2 PERSONNEL CONTRACTS
i. Create New Position, Administrative Coordinator—Resolution
Staff confirmed that the new position would encompass the old
Administrative Secretary position in addition to new duties and
responsibilities. Cummings moved and Preston seconded the resolution
creating the new position and hiring Kat Hauger to fill the position.
WHEREAS The IURA's Budget and Administration Sub-Committee has reviewed
and approved the Administrator's request to change the name and duties
of the current Administrative Secretary to that of Administrative
Coordinator to more accurately reflect the position's responsibilities,
and
WHEREAS this change of duties include all the duties of the Administrative
Secretary, as well as additional duties as delineated in Appendix A, and
WHEREAS the Administrative Coordinator will fill a necessary function that has
developed and grown over the recent grant years, and
WHEREAS this position will enable the IURA and the City to fulfill requirements
for receiving funding from our granting organizations and maintain our
reputation as an efficient organization worthy of future funding, and
WHEREAS the salary level for the position will be at Step 1 for the Administrative
Coordinator position, and
WHEREAS as with all current and future personnel of IURA, all positions are
subject to a one year duration, or until project funding is expended, and
WHEREAS the Budget and Administration Committee of the IURA recommends
that the IURA approve the creation of the position of Administrative
Coordinator, and
WHEREAS the Budget and Administration Committee recommends that the IURA
approve Kathy Hauger be promoted from Administrative Secretary to
Administrative Coordinator beginning at STEP 1 ($25,449) of the
salary scale of the Administrative Coordinator, so, therefore, be it
6
IURA Minutes, 9-30-99
RESOLVED that IURA approves the change in position and function for our present
Administrative Secretary to Administrative Coordinator to be effective
September 1, 1999 beginning at STEP 1 ($25,449), and be it further
RESOLVED that the IURA hereby authorizes the Mayor to sign the contract
accepting Kathy Hauger as the new Community Development
Administrative Coordinator, pending review by the City Attorney and
the Executive Director of the IURA.
CARRIED unanimously.
ii. Bookkeeper Contract Renewal—Resolution
Preston moved and Cummings seconded the resolution renewing the
contract of Pam Solomon, the bookkeeper.
WHEREAS, the Ithaca Urban Renewal Agency has need of the services of a qualified
bookkeeper, and
WHEREAS, the Budget and Administration Committee has reviewed the current
bookkeeper's work and recommends that the full IURA renew the
Bookkeeper's contract until 8/1/2000, be it
RESOLVED, that the Ithaca Urban Renewal Agency renews the Bookkeeper's contract
until 8/1/2000 and hereby authorizes the Mayor to sign the contract
accepting Pamela Solomon's Bookkeeping Consultant Services, pending
review by the City Attorney and the Executive Director of the IURA.
CARRIED unanimously.
iii. Personnel Contracts—Report
Cummings reported that Van Cort had further research to do before the
contracts could go forward.
V-3 ELECTION OF IURA VICE CHAIR—RESOLUTION
AGENDA ORDER CHANGE: V-3 WAS MOVED TO FOLLOW IV-1.
V-4 CREDIT CARD CANCELLATION - RESOLUTION
Cummings moved and Cohen seconded a resolution rescinding a previous
resolution (#867) authorizing credit cards for Community Development staff.
WHEREAS, the Ithaca Urban Renewal Agency had previously passed a resolution
#867 authorizing use of credit cards for permanent IURA staff, and
IURA Minutes,9-30-99
•
WHEREAS, there have been directives from the Mayor to the city staff and
subsequently from the IURA Executive Director to the Community
Development Staff to cease utilizing credit cards, and therefore be it
RESOLVED, that the Ithaca Urban Renewal Agency hereby rescinds IURA Resolution
#867 of May 21, 1998, pending review by the City Attorney and the
Executive Director of the IURA, and be it further
RESOLVED, that staff is hereby directed to cancel all existing credit card accounts for
IURA staff.
After discussion and explanation of the City situation, the resolution motion
CARRIED unanimously.
VI. HOUSING, NEIGHBORHOODS,AND INFRASTRUCTURE
No reports
VII. OLD BUSINESS
No reports
VIII. NEW BUSINESS
VIII-1 NEXT MEETING DATE
The next meeting date was confirmed as (Monday) October 25, 1999, 4 PM.
VIII-2 PAR PREPARATION AND AVAILABLE FOR PUBLIC REVIEW
Van Leuken reported that the IURA's Annual Performance Assessment Report
(PAR) is being prepared and will be available for public review and comment
November 16, 1999 through November 19, 1999 accessible in the Community
Development Office.
IX. ADJOURNMENT
The meeting was adjourned at 6:00 PM.
end 10/13/1999 KSH
q:\planning\staft\kathy\minutes\990930iura.doc
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1LR:\ Minutes. II-22-99. 4
i ri\1'
Minutes of the Ithaca Urban Renewal Agency %i f �`` 01;
4:00 PM, Monday, November 22, 1999 rk z y ���
Common Council Chambers,City Hall �� i'
}
PRESENT: IURA Members Jill Burlington, Alan Cohen (from V2),
Susan Cummings, Martha Preston. Eric
Rosario
Staff Nels Bohn, Doug McDonalds (from III4),
Wies van Leuken, Kat Hauger, Matthys Van
Cort, Ellen Morris-Knower, Adam Smith
Others Mike Cannon
CALL TO ORDER
Meeting was called to order at 4:04 pm by Preston.
II. PREVIOUS MINUTES
Preston/Burlington moved/seconded that the minutes from September 30, 1999 be
approved with the following change:
Page 5, disposion to disposition,
CARRIED unanimously.
III. STAFF REPORTS
III-1 DISPOSITION OF PARCEL 127-1-1 - REPORT
Bohn explained that Parcel 127-1-1 was originally a portion of the substitute park
land, but was not needed for that purpose. Parcel 127-1-1 is now in the process of
being approved by the Common Council for sale to the Widewaters Group for
future retail use.
Cummings asked for more information on the probable use of the parcel and
stated that she would like the Board to have specific information about likely
uses of future land sold by the IURA.
1II-2 TIME AND BILLING REPORTING-(BETA TESTING) - DISCUSSION
Hanger explained the use and benefits of the current time and billing reporting
system, including its role in the payroll process and a potential future role in
tracking employee hours by project and calculating indirect costs.
IC RA Minutes. I 1-22-99, 2
III-3 RESPONSE TO RFP SEEKING LEGAL COUNSEL SERVICES- REPORT
Bohn stated that the IURA, of seven letters sent, received five responses from:
Mariette Geldenhuys, Martin. Shapiro, Ralph Nash, Chuck Guttman, and Susan
Branch. Discussion ensued regarding the process by which the attorney(s) for the
IURA would be chosen as well as to what use an external attorney would be put.
AGENDA ORDER CHANGE:V-3 WAS BROUGHT FORWARD AT THIS POINT
V-3 CONTRACTING LEGAL SERVICES - RESOLUTION
Preston/Rosario moved/seconded a resolution to secure temporary private legal
counsel to assist with IURA matters. Discussion occurred concerning the role of
an external attorney for the IURA as compared with the City Attorney, and the
resolution was amended to read as follows:
WHEREAS, the need to legal advice and decisions had increased proportionately with
increases in CDBG-funded projects, land disposition actions, IURA
organization assistance, and new program contracts, and
WHEREAS, this increased workload cannot be met in a timely manner by the City
Attorney's office, and
•
WHEREAS, the IURA legal workload is placed in an increasingly long queue within
the attorney's office, and
art
WHEREAS, IURA projects Arfbeing delayed, and
WHEREAS, IURA staff projects temporary legal assistance workload to be limited to
time-sensitive issues with no more than 200 hours allocated for FY 2000,
and therefore be it
RESOLVED,that the IURA directs staff to develop a list of attorneys currently
practicing or who have practiced municipal and corporate law, with
attached billing rates, to present to the IURA for further discussion, and be
it further
RESOLVED, that the IURA will determined the best candidate(s) from this list, and be it
further
RESOLVED,that at the December meeting of the IURA, the Mayor and/or Thys Van
Cort will come back to the full agency with decisions on candidates, and
be it further
RESOLVED,that the Mayor, as chair of the IURA, and/or Thys Van Cort, as Executive
Director of the IURA, are hereby authorized to sign a personal services
contract with the selected individual(s).
•
CARRIED unanimously.
I
ILft.v vI inutcs, 11-22-09, 3
REGULAR AGENDA ORDER WAS RESUMED.
1II-4 WEST STATE ST/WEST END RENTAL HOUSING REHAB LOAN
PROGRAM (96 YR 3, ACTIVITY 1.3)
Bohn reported there was one accepted application for a 7 unit building on Geneva
Street.
III-5 DISPOSITION OF "AGWAY" PROPERTY ON INLET ISLAND- REPORT
Bohn reported that the .5 acre property would likely be subdivided by Common
Council from the Cass Park parcel and turned over to the IURA to be sold. Due to
significant sub-surface, petroleum soil contamination, the development sponsor
would be required to clean the land prior to developing it. Any future
development would be required to conform to area zoning requirements, and
building guidelines, specifically that it must be a 2 or 3 story building. Bohn
stated that Marina Realty of Ithaca, LLC (MRI) had expressed interest in the
property and was considering retail/office use for the property, likely to include
an art gallery.
Bohn mentioned additional disposition of Southwest Park property, but that the
EIS was needed before any action could be taken.
IV. ECONOMIC DEVELOPMENT
IV-1 ACCUFAB-MODIFICATION OF LEASE AGREEMENT-RESOLUTION
Bohn explained the circumstances surrounding Accufab's expansion and Gary
Wojcik's need for either an assignment of his lease to M&T Bank or an option to
buy out his lease at this time.
Cannon gave further information regarding the bank's position and suggested that
simply adding the future payments for the property to determine a lease buyout
cost would result in an unfair price. Van Cort agreed with Cannon, stating that the
cost should be discounted by 5.2%. Preston expressed concern about discounting
the buyout, as future value could not be concretely determined at this time.
Preston inquired as to the manner in which the original lease and property cost
was determined when the lease was begun. Cummings stated that it was through
political compromise and Van Cort explained the process further.
Rosario/Burlington moved/seconded the resolution, approving the early sale of
the property as the preferred method of action, but allowing assignment of the
lease to the bank as a second course of action. Discussion followed, and the
resolution was amended to read as follows:
WHEREAS, the Ithaca Urban Renewal Agency (IURA) previously entered into a
1CRA Minutes, l 1-_22-`)9, 4
9/10/S5 Lease Agreement with Gary and Alexandra Wojcik for property
located at 232 Cherry Street in the Cherry Street Industrial Park, and
WHEREAS, the 'URA approved a 6/24/93 agreement transferring all of Alexandra
Wojcik's rights, obligations, and responsibilities under the lease
agreement to Gary Wojcik, and
WHEREAS, Gary Wojcik is now seeking financing from M&T Bank for a 4,800 sq. ft.
building addition at the property and the lender seeks a first position on
this property to secure the loan, and
WHEREAS, Gary Wojcik's company, Accufab, currently employs 19 full-time
employees and projects adding 4-5 full-time employees, and
WHEREAS, the terms of the 99-year lease provide for annual rent of S1,104 per year
for the first 20 years of the term of the lease and $1 per year thereafter
with an option to the lessee to purchase the premises any time after the
twentieth year for a sum of$12,420, and
WHEREAS, paragraph 10 of the lease states that "Lessee shall not assign this lease or
any interest therein to any party without approval of the IURA; such
approval will not be unreasonably withheld", and
WHEREAS, per 11/16/99 correspondence, Gary Wojcik requests the [URA to either(1)
provide M&T Bank assignment of the lease to subordinate to the new
debt, or (2) accept an $11,000 offer to purchase the parcel, and amount
equal to the present value of the stream of lease payments through 2005
and the buyout price calculated at 9.5% discount rate, and
WHEREAS, the Economic Development Committee discussed the request at their
11/17/99 meeting preferring the buyout option, albeit at a higher price than
offered, and also recommend approving assignment of the lease to M&T
Bank as an alternative accommodation, now, therefore, be it
RESOLVED, that the IURA hereby approves amending the lease agreement with Gary
Wojcik authorizing the Lessee to exercise an option to purchase the
premises upon payment of$14,000 total, and be it further,
RESOLVED, that, if necessary, the IURA further approves amending the lease
agreement with Gary Wojcik to authorize the Lessee to assign Lessee's
interest to the Lessee's lender, M&T Bank, it's successors or assigns, and
be it further
RESOLVED, that the Chair of the IURA, upon review by the IURA Attorney, is
authorized to sign any and all instruments required to execute the
Modification to Lease Agreement.
CARRIED unanimously.
IURA \1WUtes, I i
IV-2 LOAN RESTRUCTURE - K. NAVARRO, D/B/A ONE BODY/ONE
PLANET - RESOLUTION
Preston explained the background of Navarro's situation and the resulting
resolution that had come from the Economic Development Committee.
Preston/Rosario moved/seconded the following resolution.
WHEREAS, on June 13, 1996, the [URA approved a $5,000 loan to Kimberly Navarro,
d/b/a One Body/One Planet, from the Community Development
Revolving Loan Fund at 8% interest to be paid off over 24 months
beginning July 1, 1996 in equal monthly installments of$226, and
WHEREAS, on June 12, 1997 the IURA amended the repayment agreement with
Kimberly Navarro to $50 per month for six months, or until her financial
situation improves to accommodate an increased amount, whichever
comes first, at which time the account will be reviewed and the remainder
of principal and interest be recalculated in a payment schedule, and
WHEREAS, the remaining principal balance of the loan to Ms. Navarro is $1,539, and
WHEREAS, Ms. Navarro proposes increasing payments to $75/month beginning
January 1, 2000 and $100/month beginning June 1, 2000 until the balance
is paid in her 9/23/99 correspondence, and
WHEREAS, the Economic Development Committee reviewed Ms. Navarro's loan at
their November 17, 1999 meeting and recommends the following action,
now therefore, be it
RESOLVED, that the IURA hereby approves amending the loan agreement with
Kimberly Navarro, d/b/a One Body/One Planet to increase the $50/month
payment to $75/month beginning January 1, 2000 and to $100/month
beginning June 1, 2000 until the balance is paid, and be it further
RESOLVED, that, subject to review by the IURA Attorney, the Executive Director of
the IURA is authorized to sign any and all documents necessary to
implement this resolution.
CARRIED unanimously.
IV-3 LOAN CHARGE OFF - LYNNE SEEGERS, D/B/A WHITE TIGER
PRUNING- RESOLUTION
Preston outlined the history of the loan and explained the ED Committee's
recommendation to charge off the loan to Seegers.
IURA Minutes, 1 1-22.-99, 6
Preston/Burlington moved seconded the following resolution:
WHEREAS, classifying a delinquent loan that is deemed to be unrecoverable as a
"charge-off' assures the IURA is recognizing, and adjusting for, non-
performing assets in the loan portfolio and allows closure to loan servicing
and monitoring activities, and
WHEREAS, on June 25. 1996, the IURA approved a CEO loan of$4,430 at an interest
rate of 6°0 to be repaid within 4 years to financially assist in the micro-
enterprise business start-up of White Tiger Pruning, a landscape and
tree/shrub pruning business, and
WHEREAS, the loan is now over 30 months delinquent with the last payment received
in March 1997 and the principal balance on the loan is $3,700.64, and
WHEREAS, the loan is secured by a lien on the 1988 Nissan pickup truck and personal
guarantee of the borrower, and
WHEREAS, the Kelley Blue Book Co. lists the trade-in value of the collateral truck at
$925 to a dealer if the truck is still in safe running condition, and
WHEREAS, the borrower certified that the truck is not currently registered or in safe
running condition, and
WHEREAS, on May 17, 1999, the IURA previously authorized staff to (1) "charge-off'
the loan and (2) seek to liquidate the collateral pledged to secure the loan
provided the cost/benefit of such collection action warrants liquidation,
and
WHEREAS, the borrower was ordered by their landlord to remove the truck from the
borrower's premises, and
WHEREAS, the borrower subsequently advertised the vehicle for sale and sold the
collateral for $350, using the proceeds to purchase clothing for her
children, and
WHEREAS, the Economic Development Committee has reviewed the circumstances of
this loan and determined that the borrower did not intentionally liquidate
collateral without the lender's approval and does not have financial
resources to repay either the loan or the proceeds from liquidation of the
collateral, now, therefore, be it,
RESOLVED,that the [URA hereby "charges-off' the full balance of the CEO loan to
Lynne Seegers, d/b/a White Tiger Pruning as a loan loss with no further
action, and be it further
I 'IZ;A NI m utes, 1I-2j-99, 7
RESOLVED, that the [URA will not pro-actively report this loan default and charge-off
to credit agencies.
CARRIED. Yea: Burlington, Preston, Rosario
Nay: Cummings
V. BUDGET AND ADMINISTRATION
V-1 SEPTEMBER AND OCTOBER FINANCIAL STATEMENTS
Bohn stated that all loans are current.
V-2 COMMUNITY OUTREACH PARTNERSHIP CENTER(COPC)
GRANT- RESOLUTION
AGENDA ORDER CHANGE: VII-1 WAS BROUGHT FORWARD AT THIS POINT
Both V-2 and VII-1 were addressed together at this time. Cohen explained the
historical and financial background of the grant and mentioned that he would be
attending a meeting in Washington DC to gather more information. The draft
resolution was disregarded. The Agency agreed that the staff should not put any
time into this project until further notice.
REGULAR AGENDA ORDER WAS RESUMED.
V-3 CONTRACTING LEGAL SERVICES - RESOLUTION
Discussed under III-3. See above, page 2.
V-4 CDBG 2000 PREPARATION-DISCUSSION
Bohn began an introductory discussion to determine IURA priorities concerning a
single-use NOFA for the year 2000, but also warned that the Federal Government
had no money to back up this NOFA. It was suggested that Housing and
Economic Development projects be given priority.
V-5 CAC - DISCUSSION
Van Cort stated that since a CAC needed to be convened for the CDBG 2000 and
that the present format for CAC use was undesirable, the IURA Staff needs to
create a recommendation regarding the formation and use of CACs and possible
alterations to the present policy to be brought to Van Cort and the Mayor for
discussion.
VI. HOUSING, NEIGHBORHOODS, AND INFRASTRUCTURE
No reports or action taken.
IURA Minutes, 11-22-99,8
VII. OLD BUSINESS
VH-1 UPDATE ON COPC DELEGATION ACTIONS-REPORT BY MAYOR
Discussion on this topic was carried out in V-2. See above, page 7.
VII-2 1999COLA
Tabled and sent to the B&A committee for discussion and recommendation.
VIII. NEW BUSINESS
VIII-1 STATE ADMINISTRATION OF CDBG
Cohen stated that New York State has not completed the necessary paperwork to
take over the administration of CDBG funds, and therefore Notices of Funding
Availability(NOFAs) for CDBG grants would be unlikely to be issued in a timely
fashion.
VIII-2 SETTING FUTURE MEETING DATES-PROPOSAL
Hauger introduced the meeting schedule proposal, standardizing IURA meetings
to specific days of the week for each month. Members stated that the proposal
was acceptable with minor modifications. The B&A committee will meet at 9am,
the lst Tuesday of each month. For the month of December, the B&A committee
will meet at 11 am on December 7, rather than 9am. The finalized schedule will
be as follows:
Full agency 3`d Tuesday, 4pm
EDC 2nd Tuesday,4pm
B&A 1st Tuesday, 9am
HNI 1st Friday,9am
VIII-3 NEXT MEETING DATE: (TUESDAY)DECEMBER 21, 1999,4PM
Date accepted.
IX. EXECUTIVE SESSION
Executive Session to discuss attorneys for IURA counsel began at 4:40 pm and
ended at 4:54 pm.
X. ADJOURNMENT
The meeting was adjourned at 5:47 PM.
end 11/29/1999 ARS/ars/ksh
Cn/f/t-e-Arj4"-fazrr,"2240:::P (007
TURA Minutes,12-21-99, 1
Minutes of the Ithaca Urban Renewal Agency AppnowEvi
4:00 PM,Tuesday,December 21, 1999
Common Council Chambers, City Hall
PRESENT: IURA Members Jill Burlington, Alan Cohen,
Susan Cummings, Martha Preston
Staff Nels Bohn, Doug McDonald,
Wies van Leuken, Kat Hauger,
Matthys Van Cort, Kat Clute
CALL TO ORDER
Meeting was called to order at 4:05 pm by Cohen.
II. PREVIOUS MINUTES
Burlington/Cohen moved/seconded that the minutes from November 22, 1999 be
approved with the following change:
Page 2, fourth WHEREAS should read, "TURA projects are being delayed, and"
CARRIED unanimously.
M. STAFF REPORTS
III-1 DISPOSITION OF PARCEL 127-1-1 -REPORT
Bohn explained that Parcel 127-1-1 item was taken up at last Common Council
meeting and approved, authorizing the IURA to sell said Parcel to the Widewaters
Group's LLC in exchange for 12 acres of land and $80,000. Staff is now working
to close on the transaction.
III-2 ALTERNATIVE SOURCES OF FUNDING-DISCUSSION
A five page report was distributed, detailing alternative sources of funding aside
from HUD, compiled by Morris-Knower. All organizations listed in the report
have funding available for the IURA, even without 501(c)3 status.
III-3 CONTRACTORS AND PART TIME STAFF LEAVING-REPORT
Clute stated that many contractors and part-time staff had left the IURA in the
month of December. While they did exemplary work, Clute stated that their
departure would ease financial strain for the LURA, given that the FY 99 CDBG
funding was lower than expected and availability of FY 2000 CDBG funding was
uncertain.
NRA Minutes,12-21-99,2
III-4 FY CDBG 2000 APPLICATION-REPORT
Clute reported that she and Bohn had attended a meeting in Auburn on Tuesday,
December 14, 1999 to discuss the State takeover of the Small Cities Community
Development Block Grant program funding. The meeting was hosted by
representatives from the Empire State Development Corp and the Department of
Housing and Community Renewal with participants including communities
eligible for assistance through the Small Cities Community Development Block
Grant program. As a result of information gleaned from that meeting, Clute asked
that the Agency reconsider the necessity of a CAC for future CDBG Notices Of
Funding Available (NOFA). Clute suggested the CAC process slows the
application preparation beyond the 60 day period that the state indicates it will
provide between notification and the deadline.
Cohen asked for a resolution to be developed, dissolving the IURA's
requirements for a CAC, while affirming the IURA's commitment to following
the legal requirements for future applications.
III-5 LEGAL SERVICES FOR 1997 CCI-REPORT
Agenda change V-6 BUDGET FORECAST FY 2000—REPORT moved here.
Clute stated that the Budget and Administration Committee requested a financial
review and forecast of funds that fund staff salaries. A packet was distributed,
containing the financial reports including information on Housing Development
Grant (HODAG), Urban Development Action Grant (UDAG), Community
Development Block Grant (CDBG), and Community Development Revolving
Loan Fund (CD-RLF). Agency members requested clarification of the term
`project delivery'. Clute explained how staff salaries were paid based on the time
billing system employed by the staff, differentiating between project delivery and
project administration. Clute stated that the IURA had enough funding to
continue, but that alternative salary funding methods (as described in the packet)
needed to be explored in order to cover shortfalls in the administration funding
without using unrestricted UDAG funds.
Clute suggested, to limit the funding shortfall to less than $5000.00,
reprogramming the remaining funds from completed activities to the
administrative line.
Cohen requested a summary of the sources for HODAG and UDAG funding as
well as their restrictions, and a projection of FY 2001 and 2002 in three scenarios:
with a single-purpose CDBG in both years, in only one year, and without an
award.
Clute further recommended that the IURA reconsider the organizational structure
of the LURA, given the funding issues at the moment.
IURA Minutes,12-21-99,3
IV. ECONOMIC DEVELOPMENT
IV-1 SALE OF 232 CHERRY ST. TO G.WOJCIK(ACCUFAB)-RESOLUTION
Bohn explained that this issue came back to the full Agency in order to confirm
that the IURA has the authority to sell the property and the intent to do so.
Preston/Burlington moved/seconded the resolution.
At Cohen's request, Bohn detailed the ED Committee's discussion of the terms of
the sale Van Cort further explained the reason for the discounting of the buyout
cost. Cohen also indicated that he wanted to begin discussion about sales of
property for future transactions.
WHEREAS, At their 11/22/99 meeting, the Ithaca Urban Renewal Agency (LURA)
approved amending the lease agreement with Gary Wojcik authorizing the
Lessee to exercise an option to purchase the tax parcel # 96.-2-1.4 located
at 232 Cherry Street upon payment of$14,000, and
WHEREAS, The Lessee, Gary Wojcik, has submitted correspondence indicating his
intent to exercise the option to purchase the parcel in accordance with the
above terms, therefore, be it
RESOLVED, That the IURA is hereby authorized to convey title of tax parcel #96.-2-1.4
located at 232 Cherry Street, Ithaca, NY to Gary Wojcik in accordance
with the terms of the amended lease agreement to exercise the option to
purchase the property, and be it further
RESOLVED,That the IURA hereby authorizes the Chair to execute and deliver any
necessary or appropriate documents to effect the conveyance including,
but not limited to, the deed.
CARRIED unanimously.
IV-2 W. STATE ST. COMMERCIAL LOAN PROGRAM,JJH INC. D/B/A
PEDAL-AWAY-RESOLUTION
Preston reviewed the ED Committee's recommendations, in summary, stating that
the loan should be denied. Bohn discussed the pros and cons of the loan, including
Joseph Higgins' financial statements and the social impact of the business's
presence in the neighborhood. Members expressed regret that they could not
support the loan, but were concerned that a loan would only further compound
Higgins' debt and lack of prospects for future success.
Preston/Burlington moved/seconded the resolution.
IURA Minutes,12-21-99,4
WHEREAS, The objective of the West State Street Commercial Loan program is the
physical and economic revitalization of the West State Street
neighborhood through investments to strengthen existing businesses,
attract new employers and improve the physical appearance and safety of
the area, with special priority assigned to addressing vacant and
underutilized buildings, and
WHEREAS, The loan application requests $40,000 for working capital to retain two
existing jobs at Pedal-Away, a retail bicycle and repair shop, located at
333 W. State Street, and
WHEREAS, At their December 14, 1999 meeting, the Economic Development
Committee reviewed staff's underwriting analysis and the Committee
concluded the likelihood, of repayment was extremely doubtful and
security and collateral was inadequate to repay the loan without pledging
of additional resources, now, therefore,be it
RESOLVED,That the TURA hereby denies the loan application from JJH Inc. for
$40,000.
CARRIED unanimously.
IV-3 CD-RLF,MARINA REALTY OF ITHACA, INC. - RESOLUTION
Preston outlined the history of the project and the ED Committee's
recommendation to proceed with the funding of MRI, Inc. at an amount of
$100,000. Bohn further explained the reasoning behind the funding, divided
between a CD-RLF loan ($50,000) and a deferred loan ($50,000), not required to
be repaid if certain conditions were fulfilled (MRI, Inc. constructs and maintains a
public parking lot for use by both restaurant patrons and the general public).
Cohen, Burlington, and Preston supported the resolution so long as MRI, Inc.
maintains all parking on the site as public parking.
Preston/Burlington moved/seconded the following resolution:
WHEREAS, Marina Realty of Ithaca, LLC (MRI) proposed to undertake a
redevelopment project on Inlet Island expected to create 90 full-time
equivalent jobs through the construction of a restaurant and other
commercial activities, and
WHEREAS, The City of Ithaca has secured a commitment for a $800,000 Section 108
loan guarantee for the project from the U.S. Department of Housing and
Urban Development (HUD) through the FY 1997 Canal Condor Initiative
(CCI)program, and
IURA Minutes,12-21-99, 5
WHEREAS, The City of Ithaca has further secured Section 108 grant commitments
through the CCI program totaling $700,000 for various eligible activities
associated with redeveloping the Cayuga Inlet waterfront, including a
waterfront promenade along Inlet Island, and
WHEREAS, Upon receipt of initial construction bids, MRI calculated a project funding
gap of approximately$650,000 existed, and
WHEREAS, After instituting cost-cutting measures, MRI repors a $400,000 funding
gap remains, and
WHEREAS, MRI proposes to fill the funding gap from the following sources:
• additional equity: $200,000
• increased bank loan: $100,000
• City-IURA financial assistance: $100,000, and
WHEREAS, Staff met with MRI on December 3, 1999 and reviewed financial aspects
of the project and concluded it will be difficult for the project to support
additional private debt due to cash flow and collateral issues; and
WHEREAS, Completion of the MRI project will serve as a catalyst for the physical and
economic revitalization on Inlet Island in accordance with the Inlet Island
Urban Design Plan, and
WHEREAS, Completion of the MRI project will result in the creation of expansion of
the local tax base and creation of 90 jobs, and
WHEREAS, Creation of 90 jobs associated with the MRI project, the majority of which
will be available to low- and moderate-income persons, makes the
construction of the public waterfront promenade an eligible use with
Section 108 grant funds, and
WHEREAS, Completion of the MRI project will result in improvement of public land
within the Taughannock Blvd. right-of-way for public parking, thereby
benefiting the community, and
WHEREAS, In consideration of the public benefits accruing from project completion,
the staff recommends that the IURA participate in closing the funding gap
through provision of a loan of$50,000 from the CD-RLF; and
WHEREAS, The Economic Development COmmittee recommended approval of the
loan at their December 14, 1999 meeting,now, therefore, be it
RESOLVED,That the IURA hereby approves a loan from the Community Development
Revolving Loan Fund (CD-RLF) to Marina Realty of Ithaca, LLC to help
close the funding gap for the FY 1997 CCI restaurant marina project per
the following terms:
IURA Minutes,12-21-99,6
maximum loan amount: $50,000
use of funds: eligible non-construction costs
term: 84 months
interest rate: 3%
repayment: interest-only for the first 24 months, thereafter
level monthly payments over the remaining 60
months to amortize the loan fully
security: unlimited personal guarantees of Stephen B.
Flash, Chris B. Purdy, and Mark Campagnolo,
and be it further
RESOLVED,That the IURA Chair, upon the advice of the Executive Director and City
Attorney, is hereby authorized to execute all necessary and appropriate
documents to implement this resolution.
CARRIED unanimously.
IV-4 1997 CCI SECTION 108 GRANT,DEFERRED LOAN TO MRI,INC.-
RESOLUTION
Discussion of this resolution occurred simultaneously with the discussion of IV-3.
Preston/Burlington moved/seconded the resolution.
WHEREAS, Marina Realty of Ithaca, LLC (MRI) proposed to undertake a
redevelopment project on Inlet Island expected to create 90 full-time
equivalent jobs through the construction of a restaurant and other
commercial activities, and
WHEREAS, The City of Ithaca has secured a commitment for a $800,000 Section 108
loan guarantee for the project from the U.S. Department of Housing and
Urban Development(HUD) through the FY 1997 Canal Corridor Initiative
(CCI)program, and
WHEREAS, The City of Ithaca has further secured Section 108 grant commitments
through the CCI program totaling $700,000 for various eligible activities
associated with redeveloping the Cayuga Inlet waterfront, including a
waterfront promenade along Inlet Island, and
WHEREAS, Upon receipt of initial construction bids, MRI calculated a project funding
gap of approximately$650,000 existed, and
WHEREAS, After instituting cost-cutting measures, MRI reports a $400,000 funding
gap remains, and
WHEREAS, MRI proposes to fill the funding gap from the following sources:
• additional equity: $200,000
• increased bank loan: $100,000
IURA Minutes,12-21-99, 7
• City-IURA financial assistance: $100,000, and
WHEREAS, Staff met with MRI on December 3, 1999 and reviewed financial aspects
of the project and concluded it will be difficult for the project to support
additional private debt due to cash flow and collateral issues; and
WHEREAS, Completion of the MRI project will serve as a catalyst for the physical and
economic revitalization on Inlet Island in accordance with the Inlet Island
Urban Design Plan, and
WHEREAS, Completion of the MRI project will result in the creation of expansion of
the local tax base and creation of 90 jobs, and
WHEREAS, Creation of 90 jobs associated with the MRI project, the majority of which
will be available to low- and moderate-income persons, makes the
construction of the public waterfront promenade an eligible use with
Section 108 grant funds, and
WHEREAS, Completion of the MRI project will result in improvement of public land
within the Taughannock Blvd. right-of-way for public parking, thereby
benefiting the community, and
WHEREAS, In consideration of the public benefits accruing from project completion,
the staff recommends that the LURA participate in closing the funding gap
through provision of financial assistance from the FY 1997 CCI Section
108 grant funds in an amount not to exceed $50,000 as a deferred loan that
will require no repayment if the borrowed meets and complies with
mutually agreed operational requirements that include MRI maintenance
of the public parking area and public access for vehicles to turn around in
the restaurant's parking lot, and
WHEREAS, The Economic Development Committee recommended approval of
financial assistance to MRI from the Section 108 grant funds at their
December 14, 1999 meeting, now, therefore,be it
RESOLVED,That the IURA hereby approves a loan from the Community Development
Revolving Loan Fund (CD-RLF) to Marina Realty of Ithaca, LLC to help
close the $400,000 funding gap for the FY 1997 CCI restaurant marina
project per the following terms:
maximum loan amount: $50,000
use of funds: eligible non-construction costs
term: 60 months
interest rate: 0%
repayment: deferred, providing compliance with project
requirements, principal balance to remain due
and payable upon sale
security: unlimited personal guarantees of Stephen B.
IURA Minutes,1 2-2 1-99, 8
Flash, Chris B. Purdy, and Mark Campagnolo,
and be it further
RESOLVED,That the deferred loan agreement include provisions obligating MRI to
maintain public parking located within the Taughannock Blvd. ROW,
allow City vehicles to turn around on MRI property on the entire site, and
indemnify and hold harmless the City regarding public parking maintained
by MRI, and be it further,
RESOLVED, That upon approval of the Common Council, the LURA Chair, upon the
advice of the Executive Director and City Attorney, is hereby authorized
to execute all necessary and appropriate documents to implement this
resolution.
CARRIED unanimously.
V. BUDGET AND ADMINISTRATION
V-1 NOVEMBER 1999 FINANCIAL STATEMENTS
The Small Cities Grants Summary and Status of Loan Repayments for November
1999 were distributed and entered into the minutes.
V-2 YEAR 2000 COST OF LIVING ALLOWANCE-RESOLUTION
The Agency moved into Executive Session to discuss staff contracts and the 1999
and 2000 COLAs. Executive Session began at 5:10 pm and ended at 5:15 pm.
Discussed in Executive Session and approved as written, with the additional
caveat that the increase will be reviewed after the CSEA agreement is made, and,
if the CSEA increase is larger than the increase granted to the employees of the
IURA, the IURA staff COLA will be increased commensurate with the CSEA.
Preston/Burlington moved/seconded the resolution.
WHEREAS, The IURA's Budget and Administration Sub-Committee had approved a
Cost of Living Adjustment of 4.5% of employees' current base salary (as
of December, 1999) for the year 2000 to be effective January 1, 2000, and
WHEREAS, The Budget and Administration Sub-Committee of the LURA recommends
that the IURA approve the Cost of Living Adjustment of 4.5% of
employees' current base salary (as of December, 1999) to be effective,
January 1, 2000, therefore, be it
RESOLVED, That the LURA approves a Cost of Living Adjustment of 4.5% of
employees' current base salary (as of December, 1999) to be effective
January 1, 2000.
CARRIED unanimously.
IURA Minutes,12-21-99,9
V-3 YEAR 1999 COST OF LIVING ALLOWANCE-RESOLUTION
See above Section V-2. Discussed in Executive Session and approved as written.
Preston/Burlington moved/seconded the resolution.
WHEREAS, the IURA's Budget and Administration Sub-Committee has approved a
lump sum Cost of Living Adjustment of 2.5% of employees' current base
salary (as of December, 1999) for the past year of 1999 (1/1/99-12/31/99)
to be effective immediately, and
WHEREAS, the Budget and Administration Sub-Committee of the TURA recommends
that the IURA approve the lump sum Cost of Living Adjustment of 2.5%
of employees' current base salary (as of December, 1999) for the year
1999 to be effective immediately, therefore be it
RESOLVED, that the Ithaca Urban Renewal Agency approves a lump sum 1999 Cost of
Living Adjustment of 2.5% of employees' current base salary, as of
December 1, 1999 to be effective immediately.
CARRIED unanimously.
V-4 STAFF CONTRACT EXTENSIONS -RESOLUTION
See above Section V-2. Discussed in Executive Session and approved as written.
Preston/Burlington moved/seconded the following resolution.
WHEREAS, the IURA's Budget and Administration Sub-Committee has reviewed and
approved the extensions of the 1998-1999 contracts of the CD
Administrator, CD Planner, and Contract Monitor through January 31,
2000, and
WHEREAS, the Budget and Administration Sub-Committee of the IURA recommends
that the TURA approve the extensions of the 1998-1999 contracts of the
CD Administrator, Katharine Clute; CD Planner, Nels Bohn; and Contract
Monitor, Wies van Leuken through January 31, 2000, therefore, be it
RESOLVED,that the IURA approves the extensions of the 1998-1999 contracts of the
CD Administrator, Katharine Clute; CD Planner, Nels Bohn; and Contract
Monitor, Wies van Leuken through January 31, 2000.
CARRIED unanimously.
Clute explained that the contract for Aaron Arnold needed to be officially
extended through December 17, 1999, which was also Arnold's last day of
IURA Minutes,12-21-99, 10
employment with the LURA.
After discussion to clarify the status of Arnold's employment, Preston/Burlington
moved/seconded the following resolution.
WHEREAS, the IURA's Budget and Administration Sub-Committee has reviewed and
approved the extension of the 1999 contract of the Community
Development Planning Specialist, Aaron Arnold, through December 17,
1999, and •
WHEREAS, the Budget and Administration Sub-Committee of the TURA recommends
that the IURA approve the extension of the 1999 contract of the
Community Development Planning Specialist, Aaron Arnold, through
January 31, 2000, therefore, be it
RESOLVED,that the LURA approves the extension of the 1999 contract of the
Community Development Planning Specialist, Aaron Arnold, through
December 17, 1999.
CARRIED unanimously.
V-5 CONTRACTING LEGAL SERVICES FOR 1997 CCI - RESOLUTION
Bohn stated that there was no new resolution provided, as the previous resolution
gave either the Mayor or the Executive Director authorization to sign contracts
with outside legal counsel, once chosen by the IURA.
Clute suggested that additional discussion needed to revolve around legal work
for land disposition and also for commercial loans. After discussion, the Agency
members determined that Mariette Geldenhuys and Ralph Nash would be
employed for legal business on an alternating, as-needed, as-available basis.
V-6 BUDGET FORECAST FY 2000 -REPORT
Discussed under III-5 (Staff Reports).
VI. HOUSING,NEIGHBORHOODS, AND INFRASTRUCTURE
No reports or action taken.
VII. OLD BUSINESS
VII-1 ACCUFAB - CHERRY STREET EXTENSION
McDonald suggested that disposition monies from the Accufab sale be
reprogrammed for investigative and engineering work for Cherry II's future use.
IURA Minutes,12-21-99, 11
Preston/Cohen moved/seconded the recommendation.
WHEREAS, the IURA has approved the sale of tax parcel #96.-2-1.4 located at 232
Cherry Street, Ithaca, NY to Gary Wojcik in accordance with the terms of
the amended lease agreement to exercise the option to purchase the
property, and
WHEREAS, there is a need for capital to fund the investigative and engineering work
for the Cherry Street Extension's future use (a.k.a. Cherry II), therefore be
it
RESOLVED, that the IURA chair upon the advice of the executive director and the city
attorney is hereby authorized to approve a contract for the investigative
and engineering work for the Cherry Street Extension work for an amount
not to exceed $8600.00 from the proceeds of the sale of tax parcel # 96.-2-
1.4, located at 232 Cherry Street, Ithaca NY 14850 to Gary Wojcik.
CARRIED unanimously.
VIII. NEW BUSINESS
VIII-1 NEXT MEETING DATE: (TUESDAY) JANUARY 18,2000,4PM
Date accepted.
X. ADJOURNMENT
The meeting was adjourned at 5:50 PM.
end 1/4/2000 ARS/ars/ksh