HomeMy WebLinkAboutMN-IURANI-2017-01-13Approved: 3/10/17
108 E. Green St.
Ithaca, NY 14850
(607) 274-6565
MEETING MINUTES
ITHACA URBAN RENEWAL AGENCY (IURA)
Neighborhood Investment Committee (NIC)
8:30 AM, Friday, January 13, 2017
Third Floor Conference Room, City Hall, Ithaca, NY
Present: Karl Graham, Chair; Tracy Farrell; Vice‐Chair; Paulette Manos; Teresa Halpert; Nels Bohn
(staff); Charles Pyott (staff)
Excused: Fernando de Aragón
Guests: None
I. Call to Order
Chair Graham called the meeting to order at 8:36 a.m.
II. Public comment
None.
III. Review of Minutes – December 9, 2016
Moved by Farrell, seconded by Manos. Unanimously approved as written. Carried
Unanimously 4‐0.
IV. New Business
1. Designation of Habitat for Humanity of Tompkins & Cortland Counties (“Habitat”) as
Sponsor to Undertake Urban Renewal Project at 402 S. Cayuga St.
Bohn explained that the IURA Board reviewed the conceptual plans for the affordable
owner‐occupied homes at 402 S. Cayuga Street and indicated it would support inviting Habitat
to apply to become a Sponsor for an urban renewal project to develop for‐sale housing at 402
S. Cayuga Street (thereby making them eligible to acquire the site from the IURA at a
negotiated price). Habitat does not yet have updated financial projections for the project,
although Bohn reviewed an earlier version, which appeared solid.
Farrell asked if Bohn ever discussed the subject of price with Habitat. Bohn replied, yes. The
revised $32,000 sales price for the property reflects the IURA’s projected sunk costs up to
conveyance. If Habitat indicates at some point that is not a price it would be able to pay, then
that could possibly be revisited. Habitat has not yet established the purchase price for the
homes, although it did indicate the projected incomes of the homebuyers would be 30%‐60%
AMI. The property is located on a constrained site and the current proposal would likely
involve obtaining one or two Zoning Variances.
Ithaca
Urban
Renewal
Agency
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Manos asked if all the dwelling units would be completed in 18‐24 months. Bohn replied that
still needs to be determined. If Habitat has all the funding in place it needs for the project,
then it would complete the project all at once, which is their preferred approach.
Alternatively, they may seek to phase the project.
Farrell asked if Habitat is absolutely certain it can complete at least 2 of the dwelling units.
Bohn replied, the IURA would not convey ownership of the property until it has that
assurance.
Moved by Manos, seconded by Farrell:
Designation of Habitat as Sponsor to Undertake an Urban Renewal Project
at 402 S. Cayuga St. ― Property Disposition
WHEREAS, the Ithaca Urban Renewal Agency (IURA) is the owner of vacant real property
located at 402 South Cayuga Street (tax parcel # 93.‐6‐7), and
WHEREAS, a prior sales agreement with Ithaca Neighborhood Housing Services, Inc. (INHS)
expired because the project to construct four units of for‐sale, affordable housing was
deemed financially infeasible by INHS, and
WHEREAS, the IURA continues to seek redevelopment of the vacant property for owner‐
occupied, affordable housing in a manner supportive of surrounding neighborhood, and
WHEREAS, Habitat For Humanity of Tompkins and Cortland Counties, Inc. (Habitat) has
indicated interest to develop a project to develop new owner‐occupied town homes at
402 South Cayuga Street which will be affordable to low‐income homebuyers, and
WHEREAS, on December 15, 2016, the IURA reviewed a preliminary concept plan by
Habitat to develop up to four townhouses at the project site and invited Habitat to submit
an IURA Sponsor Application for such a project, and
WHEREAS, on January 9, 2017, Habitat submitted an IURA Sponsor Application to acquire
402 S. Cayuga Street, and
WHEREAS, the project site is located within the Urban Renewal Project Boundary area,
and
WHEREAS, the Ithaca Urban Renewal Agency (IURA) is only authorized to dispose of
property to a specific buyer at a negotiated price if such buyer is designated as an eligible
and qualified sponsor (Sponsor) to carry out an urban renewal project per section 508 of
General Municipal Law and the sale is approved by Common Council, and
WHEREAS, a proposed Sponsor is evaluated in accordance with adopted IURA land
disposition procedures that seek to determine if the proposed Sponsor is qualified and
capable of fulfilling the objectives of the project for property disposition, and
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WHEREAS, IURA evaluation criteria for Sponsors include:
Financial status and stability
Legal qualification to operate in the State of New York and to enter into contracts with
regard to the disposition, use, and development of land in questions
Previous experience in the financing, use, development and operation of projects of a
similar nature
Reputation and proof of fair, reputable and ethical business practices and a record
devoid of convictions
WHEREAS, the primary objective of the Urban Renewal Plan is to provide a mechanism for
improving the social and physical characteristics of the project neighborhood, and
WHEREAS, one objective of the Urban Renewal Plan (Plan) is improvement of the
residential environment through redevelopment, rehabilitation, conservation, and new
construction to assure every family in Ithaca a decent home within its economic means,
and
WHEREAS, the Habitat development model incorporates volunteer labor and donated
professional services and construction materials to reduce the construction cost per unit,
thereby increasing financial feasibility, and
WHEREAS, Habitat has successfully completed construction of 24 affordable homes in
Tompkins and Cortland Counties, and
WHEREAS, Habitat employs a full‐time Executive Director, a part‐time Development
Associate, a part‐time Family Services Coordinator and projects hiring a full‐time
construction manager in 2017; and
WHEREAS, the IURA Neighborhood Investment Committee considered this matter at their
January 13, 2017 meeting and recommended the following; now, therefore, be it
RESOLVED, that the IURA hereby determines that Habitat For Humanity of Tompkins and
Cortland Counties, Inc. has satisfactorily demonstrated its qualifications and capacity to
successfully undertake a project to develop owner‐occupied, affordable housing at 402
South Cayuga Street, and therefore designates Habitat as the “qualified and eligible
sponsor” eligible to acquire tax parcels # 93.‐6‐7 (402 S. Cayuga St.) for the purpose of
undertaking an urban renewal project, and be it further
RESOLVED, that the IURA further determines that redevelopment of the vacant parcel at
402 S. Cayuga Street for construction of 2‐4 owner‐occupied, affordable homes will
advance the objectives of the Urban Renewal Plan, and
RESOLVED, the IURA hereby approves entering into a sales agreement for 402 S. Cayuga
Street property subject Common Council approval and the following terms and conditions:
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Seller: Ithaca Urban Renewal Agency
Purchaser: Habitat for Humanity of Tompkins and Cortland Counties, Inc.
Sales price: $32,000.00
Outcome: Development of at least 2 new owner‐occupied residences to be
sold to households earning no more than 80% of area median
income
Contingencies: (1) Approval of floor plans and exterior design plans to ensure
compatibility with the neighborhood and reasonably maximize
accessible design, and
(2) Documentation of project feasibility, including financing, site
plan approval, and issuance of a building permit, and be it further
RESOLVED, that the IURA Chairperson, subject to advice of IURA legal counsel, is
authorized to execute agreements to implement this resolution, including but not limited
to purchase and sales agreements.
Carried Unanimously 4‐0
2. 2015 Annual Community Assessment (ACA) of City of Ithaca HUD Entitlement Program
(Reporting Period: August 1, 2015‐July 31, 2016)
Bohn reported that HUD conducts an annual desk‐monitoring report. In the most recent ACA,
HUD indicated it has no significant problems with the IURA’s entitlement program, except for
the City of Ithaca’s late audit report. Bohn added that the City just adopted its 2015 audit
report at the last Common Council meeting (a four‐month improvement over last year). In
theory, HUD could withhold funding in response to the late City audit. In practice, the only
likely repercussion is that the IURA may be monitored more frequently by HUD. On its part,
the IURA completes all its auditing and financial reporting obligations on a timely basis. Ithaca
is not the only community to submit late audit reports.
Graham asked about the meaning of the reference on p. 4 to “separate monitoring by HUD's
Regional Environmental Officer during the same program year resulted in four findings.”
Bohn replied that those four findings were corrected and the staff has attended specialized
training and been submitting draft environmental reviews to HUD’s regional economic officer
for review prior to finalization. HUD did find that the IURA’s environmental review process
was not following National Environmental Policy Act (NEPA) requirements. He noted the
review occurred prior to HUD making available much information from Federal agencies on‐
line, which greatly improves the ease of accessing data, such a noise from railroads and
highways, endangered species, and how to assess risk of above‐ground bulk fuel storage
tanks. Bohn added that the IURA will need to conduct a Phase One environmental assessment
for all its projects (which would include 402 S. Cayuga St.), performed by a third party. One
other HUD finding was that the IURA had not been detailed enough in its project descriptions.
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V. Old Business
1. IURA 12/16/17 Grant Summary Report
Bohn reported that IURA staff has historically brought this report before the Governance
Committee and IURA Board, but it decided to begin bringing it to this Committee as well. The
report is a summary of funded projects in recent years and it illustrates whether funds are
being spent on a timely basis (spend‐down ratio), which HUD requires. The spend‐down ratio
not exceed 1.5 of the current CDBG grant award. One project currently behind schedule is the
Building for the Future program, operated by Southside Community Center, which has
suffered from considerable staff and leadership turn‐over over the past year. While it has
spent most of the IURA funds allocated to the program, it has not been able to document the
25 beneficiaries the program was supposed to produce. IURA staff asked it to provide that
information, as soon as possible, which it indicated it believed it could provide. Nydia Blas is
serving as its Acting Executive Director.
2. Project Updates
Bohn reported that Finger Lakes ReUse and Tompkins Community Action are collaborating
with Ithaca Neighborhood Housing Services (INHS) on a potential housing application for a
project on the Finger Lakes ReUse site on Old Elmira Rd. It would comprise 22 units dedicated
to homeless housing with 24‐hour on‐site staffing, along with an expansion of Finger Lakes
ReUse’s retail space underneath.
Bohn reported that the Community Housing Development Fund recently selected the
following projects for funding: expansion of Second Wind Cottages; the INHS scattered‐site
rental housing preservation project; and an Ithaca Townhomes tax‐credit project on Route 89.
Bohn announced that the County’s annual point‐in‐time homeless population count will occur
in two weeks. Last year saw an increase in the count, to 16, but that may simply be a
reflection of increased effort and attention on the part of the organizers to enumerate all
homeless persons.
VI. Motion to Adjourn
The meeting was adjourned by consensus at 9:40 a.m.
Prepared by C. Pyott, edited by N. Bohn.