Loading...
HomeMy WebLinkAboutMN-IURA-2016-12-15Approved:1/26/17 108 East Green Street Ithaca, New York 14850 (607) 274-6565 (607) 274-6558 (fax) MINUTES ITHACA URBAN RENEWAL AGENCY Common Council Chambers,City Hall 8:30 A.M.,Thursday,December 15,2016 Members:Mayor Svante Myrick,Karl Graham,Tracy Farrell Excused:Chris Proulx,Eric Rosario,Stephen Smith (Common Council Liaison) Staff:Nels Bohn,Charles Pyott Guests:None I.Call to Order Chair Myrick called the meeting to order at 8:35A.M. II.Agenda Additions/Deletions No changes were made to the agenda. III.Public Comment None. IV.Review of Draft Meeting Minutes:October 27,2016 Farrell moved,seconded by Graham,to approve the October 27,2016 meeting minutes,with no modifications. Carried Unanimously 3 0 V.Economic Development Committee (EDC)Report A.Request from LAG Restaurant Group,LLC (DBA The Rook Restaurant)for Loan Modification #1 (CD RLF #40) Bohn reported the IURA received a request from LAG Restaurant,LLC to reset the job creation goal for the project.Although it has not yet met the original goal of 8.00 FTEs,it has achieved a stable threshold of 6.75 FTEs (not including the three owners).Should the IURA approve the request,the project would still conform to the HUD requirement for creating/retaining at least one FTE permanent job per $35,000 of CDBG funds used. Ithaca Urban Renewal Agency IURA Minutes December 15,2016 Page 2 of 8 Moved by Farrell,seconded by Graham: LAG Restaurant Group,LLC,dba The Rook,Loan Modification #1 (CD RLF #40) WHEREAS,the LAG Restaurant Group,LLC (LAG)requests a loan modification to reduce the job creation goal to 6 FTE jobs from 8 FTE jobs and to be released from further job reporting;and WHEREAS,on April 25,2015,the IURA issued a $40,000 loan of CDBG funds to LAG to open The Rook restaurant at 404 W.State/MLK Jr.Street,and WHEREAS,LAG projected creation of at least 8 FTE jobs,and WHEREAS,quarterly job reporting has stabilized at approximately 6.75 FTE jobs,which excludes the three owners who work at the restaurant full time but are not considered employees for CDBG reporting purposes,and WHEREAS,sales have not fully met initial projections,but the business is operating profitably and is current on IURA loan payments,and WHEREAS,management reports that the current staffing level is appropriate for the volume of guests and to remain profitable,and WHEREAS,the IURA loan agreement requires the borrower to submit quarterly job reporting until the job goal is met for at least two consecutive quarters,and WHEREAS,the job count has stabilized at a little over six (6)FTE jobs for three consecutive quarters,and WHEREAS,IURA staff agree that employment levels at the Rook restaurant have stabilized at approximately 6.75 FTE employment positions and that further job reporting will not yield substantial new information,and WHEREAS,6 FTE jobs created results in a ratio of $6,667 of IURA loan assistance per job created, well below the CDBG public benefit test requiring at least one job created for every $35,000 of loan assistance,and WHEREAS,at their December 8,2016 meeting the Economic Development Committee reviewed this matter and the YTD profit/loss statement and Balance Sheet for the business and recommended the following;now,therefore be it IURA Minutes December 15,2016 Page 3 of 8 RESOLVED,that the IURA hereby approves a modification to the loan agreement with LAG Restaurant Group LLC to modify the job creation goal to 6 FTE jobs from 8 FTE jobs and release LAG Restaurant Group LLC from further job reporting;and be it further RESOLVED,that the IURA Director of Community Development is authorized,subject to review by IURA legal counsel,to execute a letter amendment to the loan agreement to implement this resolution. Carried Unanimously 3 0 B.The State Theatre of Ithaca,Inc.(STI)—Report Bohn reported that Doug Levine,Executive Director of STI appeared before the Economic Development Committee to provide an update on its operations and income,since it is one of the IURA’s largest borrowers,but is often late with its repayments.He reported that income in the most recent fiscal year exceeded budget projections and STI is now current on its IURA loan.The theater hosted 60 shows that attracted 47,000 attendees downtown,continuing their pattern of heavy fall,winter and spring programming. Levine reported that the theatre experienced a few recent challenges (e.g.,losing one its major tenants,New Roots Charter School),although the theatre now has two new tenants:Willow boutique and Escape Ithaca.Another challenge has been the lack of air conditioning,which prohibits most kinds of programming during the warmest months.The theatre has installed a new digital projector, allowing it to show movies (300 400 people/showing).One major concern has been the emergence of two new casinos in the region,within 60 90 miles of Ithaca,possibly taking some shows/performers away from the theatre.The theatre has joined with other regional theatres as part of the Upstate Theater Coalition For A Fair Game,to try to address those concerns and enter into agreements with the casinos to mitigate the potential negative financial impact.In terms of the longer term forecast,Levine indicated the theatre has “turned a corner”financially and stabilized its finances.Its best opportunity for growth is probably increasing its concessions sales,through some form of expansion.The theatre is considering approaching the IURA to extend the current loan that has a balloon payment due in 2018. C.Committee Vice Chairperson Report None. VI.Neighborhood Investment Committee (NIC)Report A.Conceptual Plans for Affordable Owner Occupied Homes at 402 S.Cayuga St.,Habitat for Humanity of Tompkins &Cortland Counties Graham reported the Committee reviewed some conceptual drawings for the project,as presented below: IURA Minutes December 15,2016 Page 4 of 8 IURA Minutes December 15,2016 Page 5 of 8 The bold red line depicted on the site study of existing conditions represents the set back line.In addition,a storm sewer pipe on the western portion of the property constrains what can be done on the site.The ideal situation would be to move the 12 foot access easement.The current four townhouse option,includes the following details: Bold,different colored siding for each townhouse 9½foot drop from front of Cayuga Street sidewalk to ground level on the west side Roof line would probably include solar panels (or at least configured as solar ready) Habitat for Humanity does not build full height subterranean basements,so a rear wall is proposed for the basement level;the future owners would be able decide if they would like to improve that space Potential ADA accessibility Each unit would have a short driveway (assuming easement can be renegotiated) The change in grade poses some challenges for the project and it would most likely cost more than a typical project. Graham noted the Committee was excited to learn about the proposal,since it features most of the Committee’s original wish list of elements it had long been seeking for the site (e.g.,owner occupied,benefits low to moderate income families,environmentally conscious). Bohn added that,although the IURA owns the land,it does not have any agreements in place on how to dispose of it (e.g.,open solicitation vs.negotiation with Habitat for Humanity as the preferred sponsor),so it will need to determine the best approach.Assuming the applicants seek to begin construction in 2018,they will need to submit their application in time for the 2017 funding cycle. Agency members invited staff to invite Habitat to submit a formal proposal to acquire the property for construction of owner occupied,affordable housing. B.Ithaca Neighborhood Housing Services (INHS)Scattered Site Rental Housing Preservation Project Graham indicated the INHS Scattered Site Housing Preservation Project is a complicated undertaking,comprising the following major components (excerpted from its proposal): improve the quality of life for 98 low and moderate income families restrict the units as affordable housing for 50 years improve the energy efficiency of the portfolio to reduce greenhouse gases and cost of utilities improve the curb appeal of the buildings and,as a result,the blocks and neighborhoods where they are located capitalize reserves to mitigate ongoing maintenance and operating risk invest equity from the sale of the portfolio into the development of new affordable housing IURA Minutes December 15,2016 Page 6 of 8 The total renovation budget would be over $6,000,000,part of a total development budget of over $19,000,000.INHS will be asking the City to exempt the properties from taxes.Instead,INHS would make annual payments based on 12%of the properties’Net Operating Income (NOI)for a period of 30 years.(Net operating income is the amount of income equal to gross rents received,less operating costs.) Bohn added that the proposal was discussed at the Planning and Economic Development Committee of Common Council,which voiced support for the PILOT agreement. C.Tompkins County Housing Summit Bohn reported that among the issues discussed at the well attended summit were:accessibility; affordability;perspectives from both large and small developers,the Ithaca Board of Realtors, Tompkins Financial Corporation;and personal accounts of individual experiences with housing in the area.Tompkins County’s Planning Commissioner Edward Marx also presented the findings from the 2016 Tompkins County Housing Needs Assessment and the recent Downtown Ithaca Alliance (DIA)housing study results.Other subjects of discussion included: Instances of employers studying the local market and deciding not to locate here,once they examined housing availability Cornell University’s plan for a new 500 bed dormitory on its North Campus in five years brainstorming session of strategies for improving housing affordability/availability (e.g.,launch local movement to prohibit source of income information as a means of denying housing) More information on the summit and future activity can be found on the official web site: www.housingtompkins.com. Bohn added that Tompkins County recently adopted a $50,000 three year budget commitment for addressing homeless housing needs. D.Committee Chairperson Report Graham reported that both the City and County adopted recent State legislation permitting partial tax exemptions of for sale,owner occupied,resale restricted housing,to address the problem of tax assessors valuing these kinds of properties at more than the resale restricted rate.The Ithaca City School District (ICSD)has not been approached yet.The legislation will allow organizations like INHS to keep new for sale affordable housing projects financially viable and maintain the affordability of Ithaca’s existing housing stock. Graham reported that HUD instituted a new Assessment of Fair Housing for Grantees requirement for HOME/CDBG grantees (in addition to the IURA’s own Analysis of Impediments to Fair Housing conducted in 2015).The purpose of the new requirement is for grantees to examine different mechanisms for addressing fair housing (e.g.,online tools,extensive public participation).The ultimate goal is to identify concentrations of poverty and racial/ethnic minorities in a given geographic area,and help grantees identify steps for enhancing local housing choices.The assessment will require an extensive public outreach process. IURA Minutes December 15,2016 Page 7 of 8 VII.Governance Committee (GC)Report (DID NOT MEET) VIII.Other/New/Old Business A.2017 HUD Entitlement Program Funding Cycle:Organizational Meeting Bohn announced that today’s meeting represents the official organizational planning meeting for the 2017 HUD Entitlement Program Funding Cycle.A draft version of the meeting schedule has been prepared and distributed,which should be finalized over the coming weeks.Assuming the IURA is level funded by Congress in 2017,there should be approximately $900,000 in available CDBG and HOME funding available;however,there will be no roll over funds or bond funds available so the IURA will be seeing its lowest funding level since 2004.The proposed deadline for funding applications is February 28,2017. B.IURA Financials:November 2016 Bohn reported only one project is experiencing problems:Building for the Future (Southside Community Center).The organization has undergone significant staff and board turn over.The IURA does not have sufficient documentation on the nature and number of the program’s beneficiaries,so he is working with the new Executive Director to obtain all that information.All other IURA activities are on schedule and the spend down ratio is good. In terms of IURA loans,there were initially a couple of past due accounts,which are now current since the report was generated.In terms of the lease report,Cayuga Green is now current,although Southside Community Center remains delinquent.The IURA received a letter from Southside Community Center,indicating its strategic planning process for the future of the Recycle Ithaca Bicycles program (RIBs)had not been robust as hoped.The organization believes the current site for its RIBs program is too expensive and isolated,so it is considering relocating it.Bohn added that Southside Community Center ultimately decided against subsuming its operations into the City’s Greater Ithaca Activities Center (GIAC)and remains independent for the time being. C.IURA Chairperson Report None. D.Common Council Liaison Report None. E.Staff Report Bohn remarked briefly on the recent Community Outreach Worker Program report,which presented some good outcomes.The Community Outreach Coordinator appears to have been highly adept at steering local people in need and homeless people to appropriate local organizations and resources. IURA Minutes December 15,2016 Page 8 of 8 Bohn reported the IURA’s new Housing for School Success program (operated in collaboration with the Beverly J.Martin Elementary School)is beginning to enroll homeless families.The Ithaca Housing Authority is scheduled to take over the program in 2017,as part of its Section 8 housing program. IX.Adjournment The meeting was adjourned by consensus at 9:47 A.M. —END — Minutes prepared by C.Pyott,edited by N.Bohn.