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HomeMy WebLinkAboutMN-IURA-1998 • Minutes of the Ithaca Urban Renewal Agency And Joint Meeting of the Ithaca Urban Renewal Agency and Economic Development Committee Thursday,September 10, 1998, 11 AM Third Floor Conference Room,City Hall Present: Mayor Alan Cohen,Eric Rosario,Martha Preston,Brad Nelson,Paul Mazzarella for Item VI, Matthys Van Cort,Katharine Clute,Nels Bohn,Wies Van Leuken,Doug McDonald,Susan Cummings,Eric Lindstrom, and Kat Hauger Others Present: Martin Merola of the Sutton Group and Bob Lama of Lama Real Estate for V-2 a and b. I. Call to order The meeting was called to order by the chair Alan Cohen at 11:05 AM. II. Approval of Minutes of IURA meeting of August 6, 1998 Preston noted the date included as the next Ithaca Urban Renewal Agency of September 17, 1998 is incorrect. The correct date of September 10, 1998 should replace the incorrect date. Preston moved and Nelson seconded a resolution to approve the minutes as amended. RESOLVED,that the IURA approves as amended minutes of the IURA meeting of 8/6/98. Approved unanimously. III. Staff Reports Clute reported on the Landlord Training Program schedule for September 23-26, 1998. James Barbat is in charge of developing the program. The Mayor has alerted the media that a press release is going out. Clute introduced the beginning of an internal MIS to assist in formalizing policy. Bohn reported on the finalizing of negotiations on a license agreement with the Tompkins County Task Force for Battered Women to occupy the newly purchased shelter after improvements have been completed. A review of the formal paperwork received from HUD regarding the Canal Corridor initiative grant for public improvements, such as the waterfront promenade on Inlet Island is underway. The City is awaiting word on the$350,000 BEDI grant application. Minutes IURA September 10, 1998 Bohn introduced the October 5 and 6 meetings with Harry to clarify issues,concerns and questions on the CDBG Regulations. Clute requested the presence of Community Advisory Committee members at the October 5 session. Mayor Cohen asked Bohn about the utility pole on Inlet Island and the Right-of-Way. Bohn responded that Cornell has agreed in concept to allow an easement to relocate the utility pole on their property. The exact location is being held up by the necessity of NYSEG engineering that must be completed before selecting the final easement alignment. NYSEG needs$2500 before the engineering project can begin. NYSEG's windows of opportunity are November 1998 and April 1999. April is the most workable timeframe. The utility pole is located outside the area to be remediated with BEDI grant funds. IV. Budget and Administration N-1. New Staff Member: Administrative Secretary-Resolution Mayor Cohen moved and Cummings seconded: RESOLVED,that the IURA appoints Kathy Hauger as Administrative Secretary at Step 5 of the 1998 CD Salary Range and directs and authorizes the Executive Director to sign the staff contract with Kathy Hauger,pending review by the City Attorney. Passed Unanimously. IV-2. Staff Salary Increase-Resolutions Mayor Cohen moved and Cummings seconded: WHEREAS, the CD Planner is required to deal with an increased work load of high quality, now THEREFORE BE IT RESOLVED,that the IURA approves a salary increase for CD Planner Nels Bohn,to Step 7 of the 1998 Salary Scale for CD Planner. Passed Unanimously. Mayor Cohen moved and Rosario seconded: WHEREAS, the CD Administrator is required to deal with an increased work load of high quality, now 2 Minutes IURA September 10, 1998 THEREFORE BE IT RESOLVED,that the IURA approves a salary increase for CD Administrator Katharine Clute to Step 6 of the 1998 Salary Scale for CD Administrator. Passed Unanimously. IV-3. Financial Statements July and August 1998 The Financial Statements for July and August were reviewed and entered into the minutes. There was some discussion regarding the Glyph Technologies Loan being past due. Cummings asked if a 30 day past due policy was possible. Clute responded that the Glyph Technologies situation has prompted policy making. A past due policy is being created. The CEO program is being handed over to AFCU who are also buying out the CEO past due loans. - V. Economic Development Joint Meeting of Ithaca Urban Renewal Agency and Economic Development Committee Present: Members of the Economic Development Committee present were: Eric Rosario,Martha Preston and Eric Lindstrom V-1. Call to Order: Mayor Cohen called the joint meeting of the Ithaca Urban Renewal Agency and Economic Development Committee to order at 11:22 am. Minutes: The minutes included in the Agenda mailing were intended for informational use only and not to be approved/disapproved during the joint meeting. To utilize time more efficiently, the Waterfront Entertainment District Boundaries Resolution was brought forward for discussion and action. V-3. Waterfront Entertainment District Boundaries-Resolution 3 Minutes IURA September 10, 1998 Bohn introduced a map of the proposed Waterfront Entertainment District Boundaries. There was some discussion regarding expanding the boundaries north and limiting the boundaries east. There was also clarification of the term waterfront including only water frontage, not water view. Preston moved and Rosario seconded the resolution with an amended resolve so that the resolution reads as follows: Adoption of Waterfront Entertainment District Boundary Map WHEREAS, IURA resolution#829 (1/27/97)authorized the creation of a"Waterfront Entertainment District," and WHEREAS, within this District the IURA's policy was amended to allow the use of CDBG funds for economic development purposes in support of restaurants,nightclubs, bars, and similar businesses in support of the overall revitalization goals, and according to accepted lending and underwriting standards, and • WHEREAS,this Waterfront Entertainment District was defined as "the shoreline and adjacent areas of Inlet Island, the Cayuga Inlet, and the Cayuga Lake shore" within the City, and WHEREAS, no map of the Waterfront Entertainment District was attached to the resolution and boundaries of the district are unclear, and WHEREAS, the Economic Development Committee reviewed and recommended adoption of a map, dated July 21, 1998 portraying the Waterfront Entertainment District boundaries,therefore, be it RESOLVED, that the IURA hereby adopts the boundary configuration of the Waterfront Entertainment District as described on the Waterfront Entertainment District map, dated July 21, 1998. And be it further RESOLVED, that the Economic Development Committee will consider a possible expansion of the district boundaries and report back to the Ithaca Urban Renewal Agency with its findings. Passed Unanimously as amended. V-2. Disposition Carpenter Business Park—Marketing Proposals: V-2-a. Martin Merola presented The Sutton Group's marketing proposal for the disposition of the Carpenter Business Park. 4 • Minutes IURA September 10, 1998 Mr. Merola expressed his opinion that the appraised value of the property seemed high. He noted that regarding commissions he has found that discounted commissions led to discounted service. He highlighted his firm's 95% success rate in sales. He did not think his firm's location in Syracuse would be a factor since much of real estate sales of this magnitude are done via the phone and computer. In response to questions,Mr. Merola said he believed the property could be sold within a year, less if the price was right. Mayor Cohen expressed his thanks to Mr. Merola for his presentation. Mr. Merola left the meeting. V-2-b. Bob Lama presented Lama Real Estate's marketing proposal for the disposition of the Carpenter Business Park. Mr. Lama said he believed the$1.3 million asking price was good for the location. He highlighted his knowledge of the local area and his willingness to work with other local and outside real estate agents. In response to questions, he said he is a seller's broker,not a buyer's broker. He believed a 6% commission to be workable. He said he thought the property could be under contract within a year, but hesitated to say it would be sold within 12 months. At 12:05 Mayor Cohen turned the meeting over to Martha Preston. At 12:10 Mayor Cohen returned and accepted receipt of the meeting. Mayor Cohen expressed his thanks to Mr. Lama for his presentation. Mr. Lama left the meeting. V-2-c. Cummings moved and Rosario seconded a motion to move to Executive Session. Motion carried unanimously. Mayor Cohen moved and Rosario seconded a motion to move out of executive session and adopt an amended resolution to accept Lama Real Estate as the preferred commercial real estate brokerage firm inserting a one year limit and a 6% cap on commission The resolution formally A to read as follows: due to LHiiA REAL Est, TE 'S CxPckr isE QF 711 toC4L ,SEE-1C fsi/-TL f,ARK E op r/-1E- RESOLUTION sc,e,y-E c < PA o PE.R cT . ITHACA URBAN RENEWAL AGENCY, 9/10/98 5 Minutes IURA September 10, 1998 Selection of Commercial Brokerage Firm to Market and Sell Certain Parcels in the Carpenter Business Park WHEREAS, the 10.8 acre Carpenter Business Park located on Third Street with frontage along N. Meadow Street was completed in 1990, and WHEREAS, the IURA has actively marketed the lots for lease and sale for light manufacturing industrial uses with a job creation goal of 17 jobs per acre since 1990, and WHEREAS, the IURA has been unsuccessful in securing satisfactory tenants and Carpenter Business Park has remained vacant since its completion in 1990 with the exception of the community gardens located on the 2.25-acre parcel#36-1-3.4, and WHEREAS, a 1998 appraisal of Carpenter Business Park,excluding the community gardens parcel, establishes an estimated fair market value of$1,364,000 for its highest and best use, and WHEREAS, the Common Council declared all City-owned parcels in Carpenter Business Park, except those leased to Project Growing Hope, Inc. used for community gardens, as surplus property, and WHEREAS, the Common Council authorized conveyance of City-owned surplus parcels to the Ithaca Urban Renewal Agency for disposition for no less than fair market value, subject to the following conditions: A. Property must not be used for an adult entertainment establishment use, B. Property must not be used for a warehousing or storage as a primary use for a period of 10 years from the date of conveyance from the IURA, and C. Retention of access and utility easements to parcel#36-1-3.4, currently used for community gardens, and utility easements for any other public utilities located on the property, and WHEREAS, any net proceeds from the sale of the parcels after expenses incurred by the IURA shall be returned to the City, and WHEREAS, the $755,077 cost of developing the Carpenter Business Park included grants of $150,000 from the Appalachian Regional Commission (ARC) and$151,000 from the Community Development Block Grant (CDBG), constituting 40% of the project cost, and WHEREAS, 40% of the net proceeds of the sale are restricted to use for CDBG- and ARC- eligible activities, and 6 Minutes IURA September 10, 1998 WHEREAS, the IURA directed the staff to solicit proposals from commercial real estate brokers to market and sell all IURA holdings and all City of Ithaca-declared surplus properties in the Carpenter Business Park, and WHEREAS, proposals for marketing agreements have been received and reviewed by the Economic Development Committee, and WHEREAS, the Economic Development Committee identified the Sutton Company and Lama Real Estate as the top two finalists firms to be considered by the IURA, now, be it RESOLVED,the IURA hereby selects Lama Real Estate as the preferred commercial real estate brokerage firm to market and sell certain parcels in the Carpenter Business Park for a one year period at no more than 6% commission, and be it further RESOLVED,that the Mayor, as Chair of the IURA, is hereby directed and authorized to negotiate satisfactory terms for a marketing agreement with the preferred firm and should the outcome of the negotiations not be satisfactory,the Mayor is authorized to negotiate satisfactory terms with another firm, and be it further RESOLVED, that the Mayor, upon review by the City Attorney, is hereby directed and authorized to sign any and all instruments necessary to contract for independent consulting services to market the Carpenter Business Park properties, and be it further RESOLVED,that the Mayor, upon review by the City Attorney, is hereby directed authorized to sign any and all instruments necessary to convey the Carpenter Business Park properties for fair market value subject to the deed restrictions and easements contained in the 4/1/98 Common Council resolution. Resolution passed unanimously. There was further discussion regarding the possible future use of the property. The deed restriction regarding no adult establishment use was raised and asked if it would hold in court. Van Cort replied that it would. Deed restriction is allowed if it is more strict than the zoning code. V-4. Adjournment of the joint meeting occurred at 12:45 pm. At 12:45 Mayor Cohen turned the meeting over to Susan Cummings and left the meeting. Eric Lindstrom left the meeting at the same time. 7 Minutes IURA September 10, 1998 VI. Neighborhood, Housing, and Infrastructure VI-2. Selection of the Sponsor for 119 Cleveland Avenue Resolution To utilize time more efficiently, the selection of the Sponsor for 119 Cleveland Avenue Resolution was brought forward for discussion and action. Clute reported that only one response was received from the legal advertisement for disposition of 119 Cleveland Avenue. Cummings proposed to select the sponsor of the property. Preston moved and Nelson seconded the following resolution. Resolution- Selection of Sponsor for the disposition of 119 Cleveland Avenue RESOLVED, that the IURA selects INHS as the most responsible Sponsor for the disposition of the IURA asset— 119 Cleveland Avenue. The IURA directs and authorizes the Executive Director to close with INHS for this property, pending review by the City Attorney. Motion carried with one dissenting voice. Paul Mazzarella offered to bring to the attention of the IURA additional properties similar in situation to 119 Cleveland Avenue. The offer was accepted informally. Brad Nelson left the meeting at 1:00 pm. Clute also leaves the meeting at 1:00 pm. VI-1. INHS Presentation -by Paul Mazzarella All three properties to be presented are distressed/failed developments. They were developed by private owners through CDBG money. VI-1-a. Towerview Apartments—This is a 24 unit complex on Floral Avenue INHS board agreed to accept the deed in place of foreclosure if certain conditions were met. The conditions included: 1). No pre-payment penalty and 2).Refinancing of the first mortgage. The conditions were not met. INHS did acquire the property in foreclosure. The CDBG loan will be written off. Some of it may be recouped if the property is viable. Currently 13 of the 24 apartments are rented to low or moderate income individuals. They would like to reserve the ability to rent to mixed income brackets,though the rents are so low they cater to the low and moderate income individual and family now. Clute returns to the meeting at 1:05 pm. VI-1-b. Chartwell/SRO—This is a 14 room single residence occupancy building on Meadow. Chartwell Associates defaulted on first mortgage. In mid August INHS bought the property. EOC did renew the lease for 1 year. INHS has expressed concern over owning 8 Minutes IURA September 10, 1998 and operating this type of SRO. They are discussing selling the property for other uses. The final use of the building is yet to be resolved. VI-1-C. Fairfield Crossing—This is a 14 unit apartment complex on Spencer Road. The foreclosure sale is set for September 11, 1998. This is the most difficult property of the three. There is a huge amount of debt connected to the property. The original mortgage was $500,000. The second mortgage was $275,000. The property was recently appraised at only$320,000. The INHS board has determined a maximum offer,which may not be enough. The development partners were not functioning well and grossly mismanaged the property. The rental property market has declined. The student population was considered in the original lower income housing picture. Mazzarella wished to highlight the reason he was presenting. He spoke of the INHS responsibility to HUD and the IURA for maintaining Community Development assets. The INHS takes this responsibility very seriously and is making every effort to maintain the assets. VII. Other Business Next meeting dates: IURA: Thursday,November 12, 1998, 11 AM EDC: Thursday,October 8, 1998,4 PM HNI: Thursday,October 8, 1998,9 AM B&A: Thursday,October 1, 1998, 11 AM CAC: Tuesday, September 22, 3:30 PM VIII. New Business Due to the lateness of the time,there was no new business addressed. IX. Adjournment The meeting was adjourned at 1:15 PM. Respectfully submitted, Kat Hauger, Administrative Secretary (Q:\Planning\Staff iCathy\Minutes\Min98sept.doc) I Q (I I •