Loading...
HomeMy WebLinkAboutMN-LEG-2009-05-18APPROVED BY THE LEGISLATIVE COMMITTEE ON JULY 27, 2009   1 City of Ithaca Legislative Committee Minutes Monday, May 18, 2009 MEMBERS PRESENT: Alderpersons (5) J.R. Clairborne Chair; Mary Tomlan Vice Chair; Jennifer Dotson; Maria Coles; Robin Korherr OTHERS PRESENT: Mayor Carolyn Peterson Daniel L. Hoffman - City Attorney Donna Este-Green - Asst. City Attorney (for Bicycle Registration legislation) Ryan Mayo – Ithaca Police Dept. (for Bicycle Registration legislation) Jim Miller - Attorney for the Hangar Theatre Joel Zumoff – Common Council Jody Andrew – Exec. Assistant Chair Clairborne called the meeting to order at 7:10 p.m. Modifications to the Agenda Item 7b, Outdoor Smoking Regulations update, will be discussed before item 7a, Proposed legislation, re: Bicycle Registration. Public Comment Ted Schiele, Groton, spoke to the Committee regarding the Smoke-Free Ithaca/Tobacco- Free Tompkins County programs. He shared a poster created by a 10 year old member of the community entitled “Smoking” urging people to see the dangers of smoking. Announcements from the Chair Laws, Ordinances & Resolutions Workshop Chair asked members if they would be available for this workshop on Tuesday, June 9th (5:00 pm to 8:30 pm.) as the June 2nd date poses a conflict for some members. Clairborne stated he would like the matter of Posthumous Honors to be discussed at a future meeting in the hope of creating and implementing written guidelines for the City to use when someone of note in City government has passed. Approval of Minutes On a motion by Coles, seconded by Dotson, the April 27, 2009 meeting minutes were approved. APPROVED BY THE LEGISLATIVE COMMITTEE ON JULY 27, 2009   2 Outdoor Smoking Regulations Clairborne stated the Outdoor Smoking Regulations subcommittee will be reconvening in the next several weeks. In regards to the Outdoor Smoking Committee progress, Coles asked to receive an update of the last meeting. Dotson will share with the committee comments and concerns she has received from the community regarding the list of topics for future meetings. On the same note, Tomlan stated she will also share with members concerns re: outdoor dining and mobile vending changes that she would like to see addressed. Mayor Peterson mentioned the need to revise the environmental assessment forms and future discussions will have to decide which committee it will fall upon. Korherr arrived at 7:26 p.m. Old Business Proposed legislation, re: Bicycle Registration Este-Green informed the Committee of a typographical error in the Severability clause, Section 2, where it refers to “Part III.” it should read “Part II.”. Mayo reiterated the main reason they wanted to implement this was because they have hundreds of bikes every year that are auctioned off. In the absence of a sticker, the bike cannot be returned to the owner. It is a free service and it is meant to benefit the public. There is no intention of harassing the public in any way. This offers another chance for positive contact between the police and the public. Dotson stated she is happy to see the nominal fine imposed for not registering a bicycle. She feels the updated legislation could provide useful information such as how many bicycles are out there. It will provide an opportunity to reach bicycle owners and provide education for safety, maintenance, rules of the road, etc. Dotson moved the ordinance to amend Chapter 137 of the Code entitled Bicycles including the revision handed out at this meeting, seconded by Korherr. Korherr stated that this version is very well done and she supports it. The question was raised of non-residents riding or purchasing a bicycle within the City. This legislation would not apply to them; however, the dealer would most likely offer the opportunity to register the bicycle at the time of purchase. Mayor Peterson questioned that 137-2 and 137-8 seem inconsistent with each other with regard to the ages and type of tires described. Hoffman stated they are dealing with two different issues; one being a safety issue and the other being what types of bicycles APPROVED BY THE LEGISLATIVE COMMITTEE ON JULY 27, 2009   3 have to be registered. If it has solid tires it doesn’t have to be registered. Anything with air tires should be registered but would still be allowed on the sidewalk. Este-Green confirmed that the age of 10 years or under for riding on the sidewalk is from the State. This legislation is consistent with what other municipalities have implemented. Clairborne commented that this legislation does not address the use of helmets. Este- Green stated that we comply with all State and Federal laws pertaining to traffic and bicycle safety. Dotson recommended getting feedback from the Bicycle Pedestrian Advisory Council regarding this issue. Tomlan asked about introductory “whereas’s” to present to Common Council. She will coordinate this with Este-Green and Mayo. Carried Unanimously New Business Hangar Theatre – Process for Approval of New Lease Jim Miller, attorney for the Hangar Theatre organization, introduced himself to the Committee. Hoffman stated the City and the Hangar have negotiated proposed terms for the new lease. To meet their timeline, there would have to be a Common Council vote at the July 1, 2009 meeting. As there is a 30 day notice requirement for the proposed leasing of City property, that notice would have to be published prior to the June Council meeting. Therefore, the only voting opportunity is this meeting. Hoffman provided a proposed resolution of recommendation to the Mayor to continue the process by publishing the legal notice of the proposed leasing of City property so that Common Council will be in a position to act on July 1st. Hoffman advised the Chair that it would be permissible for the committee to go into Executive Session to discuss the resolution. Miller stated that currently the Hangar Theatre pays $1 per year for rent for a building that does not meet their needs. The building is unheated, it floods every spring, the rooms are substandard. They are putting $3 million dollars into a City-owned building. The feeling is it should be in lieu of rent. The Hangar would continue to be responsible for the structure, along with taxes. Coles stated that the negotiating team worked very hard to meet the deadlines of the timeline. She continues to be impressed by what an incredible role the Hangar Theatre has played in this community. Miller stated he was remiss in not thanking everybody involved in keeping to the time schedule and actually compressing it. APPROVED BY THE LEGISLATIVE COMMITTEE ON JULY 27, 2009   4 Mayor Peterson stated that a grant opportunity was discovered that could help this project. Korherr moved they enter into Executive Session, seconded by Dotson, Carried Unanimously at 8:16 p.m. Clairborne declared the end of executive session and the open meeting resumed at 9:18 p.m. Hoffman went over the suggested changes to the resolution discussed in Executive Session. Mayor Peterson stated that usually recommendations are given from Council as a whole. Dotson asked if the Mayor would feel more comfortable receiving a recommendation from the Planning & Economic Committee as well. Hoffman stated that Council cannot vote on accepting the lease terms until July 1st at the earliest. Coles asked if it would be helpful to include language stating this rare circumstance. Coles moved to allow the Mayor and the City attorney to work out language, seconded by Korherr. Hoffman stated the changes the Mayor recommended. As read by the City Attorney, passed unanimously. Whole motion passed unanimously (See attached Appendices A) Korherr left at 9:41 p.m. Common Council Rules of Procedure – Initial Discussion Clairborne stated the hope to include this in the City Code. Hoffman urged members to review the current set of rules and think about what changes they might wish to make. Clairborne asked members to review and send thoughts to Hoffman and Clairborne to prepare for the next meeting. Next Meeting Monday, June 22, 2009 at 7:00 p.m. Adjournment Chair Clairborne adjourned the meeting at 9:49 p.m.         APPROVED BY THE LEGISLATIVE COMMITTEE ON JULY 27, 2009   5 Appendices A    As approved (5‐0) by Legislative Committee of Common Council, on 5/13/09    Resolution  Recommendation that Notice of Proposed New Lease for Hangar Theater  Be Published, So That Common Council Can Act on July 1st    (1)  WHEREAS, for at least 40 years, the City of Ithaca (hereinafter “City”) has leased land  and buildings to the Center for the Arts at Ithaca, Inc. (hereinafter “CAI”), a not‐for‐profit  organization that operates a performing arts program and theater commonly known as the  Hangar Theatre, and    (2)  WHEREAS, the current, 20‐year lease (as extended) for CAI’s premises, at 801  Taughannock Boulevard, expires on or about December 31, 2009, and    (3)  WHEREAS, CAI wishes to enter into a new, long‐term lease with the City for the  premises it has occupied, and to undertake substantial improvements to the site and the  buildings on it, at a total cost estimated at more than $3,000,000, all at CAI’s expense  (unless otherwise agreed by the City) and pursuant to such new, long‐term lease, and    (4)  WHEREAS, the continued presence of CAI in the City enriches the social, cultural and  educational environment, and provides multiple benefits to the community, and     (5)  WHEREAS, the improvements proposed by CAI are sorely needed, and will enhance  CAI’s own operations and the safety and comfort of its patrons, performers and staff, as  well as the usefulness and long‐term viability of the City‐owned facilities, and    (6)  WHEREAS, the proposed improvements have been subject to environmental review  and site plan review, with the City’s Planning and Development Board acting as lead agency  and resulting in a negative determination of environmental impact and preliminary and  final site plan approval, and    (7)  WHEREAS, on May 6, 2009, CAI received the Board of Public Works’ consent to make  the proposed improvements to the site and its buildings (subject to certain conditions),  which approval is necessary according to the current lease, and    (8)  WHEREAS, the City Attorney has advised that the Hangar Theatre site (formerly a part  of the Ithaca City Airport) has, since the decommissioning of the airport in the 1960s,  generally been treated as distinct from neighboring park land (Cass Park and Allan H.  Treman State Marine Park) and apparently was never designated as park land, meaning  that any State prohibitions on the long‐term leasing of park land, or any requirement of its  alienation for this purpose, are not applicable to this site, and    APPROVED BY THE LEGISLATIVE COMMITTEE ON JULY 27, 2009   6 (9)  WHEREAS, pursuant to Section C‐36.A (40) of the City of Ithaca Municipal Code, the  leasing of City‐owned land must be for full value, and requires the approval of Common  Council (by a ¾ majority), which vote must be preceded by newspaper publication of a  notice of the proposed lease of City property (commencing at least 30 days prior to the  vote), and     (10)  WHEREAS, the Mayor appointed a team of negotiators, including members of  Common Council, the Board of Public Works and City staff, to meet with representatives of  CAI to discuss and negotiate proposed terms of a new, long‐term lease between the parties,  and    (11)  WHEREAS, following several negotiation sessions, City and CAI representatives have  agreed upon most proposed terms of a new lease, and any other, essential terms on which  negotiators had not yet reached agreement have been recommended by the Mayor, and    (12)  WHEREAS, a professional appraisal of the leased premises was performed in April  2009 (by Clay Burruss, of Landmark Appraisal Company), which appraisal determined that  the fair rental value of the property (as a theater, and in its “as is” condition) is  $4,000/month, and    (13)  WHEREAS, since the leased buildings are currently unheated, they cannot be used for  performances for more than 4 months/year, and have a lesser value (e.g., as unheated  storage space), for the other 8 months/year, and    (14)  WHEREAS, the proposed new lease arrangement would ensure that the City receives  full value, by (a) establishing an initial annual rental fee based on the appraised value  ($4,000/month) for 4 months/year, plus $1,750/month for the remaining months, (b)  increasing the rent by 15% every 5 years, to take into account the effect of projected  inflation, (c) including in the lease a promise by CAI to make certain improvements (by  2010) at its expense, (d) crediting the amount actually spent by CAI for such improvements  toward the rental fee, and (e) requiring that any shortfall in this credit (for the latter part of  the lease term) be covered either by actual rental payments (at the then‐applicable rate) or  by the value of additional, mutually‐agreeable improvements previously made or to be  made to the premises by CAI, and     (15)  WHEREAS, CAI wishes to undertake and complete the currently‐proposed  improvements prior to its 2010 performance season, which would require the finalization  of a new lease by July 2009; now therefore be it    RESOLVED, that the Legislative Committee hereby endorses the proposed new lease terms  as outlined below, and recommends that all necessary processes be effectuated, such that  the Common Council will be able to vote on whether to authorize such a lease, at its regular  meeting on July 1, 2009 (or thereafter, if necessary).      DRAFT COPY – NOT YET APPROVED BY MEMBERS OF THE LEGISLATIVE COMMITTEE  7 Summary of Proposed Terms of New Lease Between City of Ithaca and  Center for the Arts at Ithaca, Inc. (The Hangar Theatre)      1.  PARTIES:  City of Ithaca & Center for the Arts at Ithaca, Inc.     2.  LEASED PREMISES:  801 Taughannock Boulevard, in the City of Ithaca.  (Same as in 1987  Lease ‐ Schedule A, namely, former airport hangar building, newer props & costume shop, and  adjacent parking, circulation and yard areas.)  See Schedule A to be appended to this Lease.    3.  PERMITTED USES:  Same as in 1987 lease (Art 3 (a)) – “for performing arts and promotion   and stimulation of interest & learning in theater…and other appropriate uses such as…”  Add  that incidental, short‐term rental of part or all of leased premises, including sale of  refreshments to theater patrons, by CAI, is permitted (subject to conditions set forth herein),  and CAI may keep the proceeds of such rental.  Any such rental to a profit‐making entity must  be at market rate, and the profit‐making entity may not use the premises for an income‐ generating purpose.  [No continuation of right to wintertime use of premises by City.]    4.  TERM:  Initial = 25 years (2009‐33), plus Hangar option to renew for 25 additional years  (2034‐58).  Option to be exercised by delivery of written notice to City, at least 24 months prior  to end of initial term.  Parties agree to meet, at least 36 months prior to end of initial term, to  review lease arrangements for possible updating, for any renewal period.     5.  EARLY TERMINATION:  a. By CAI:  Permitted, but on at least 3 years written notice to City.  b. By City:  Only if CAI is in default and has failed to remedy the default within the  required time period, or if CAI is adjudicated a bankrupt or subjected to assignment  of its rights or interest due to foreclosure (same as 1987 Lease).    *6.  RENT/APPRAISAL:  Consideration will include a cash rental amount (or the equivalent  value, in the form of capital improvements to the premises), together with CAI’s commitment to  provide the artistic services described herein, which represent a significant public benefit.  Also  taken into account in establishing the rental amount is the fact that CAI is responsible for under  this lease for essentially all maintenance required for the premises, which responsibility  exceeds that of a typical commercial tenant.  Initially, rent will be $30,000/year, based on fair  rental value, as determined by appraisal (“Fair Market Rental Analysis of Performing Arts  Theater Located at:  701 [sic] Taughannock Blvd, Ithaca, New York, as of April 10, 2009,”  prepared by Landmark Appraisal Co., LLC, C. Clay Burruss, NYS Certified General Appraiser ‐  copy appended hereto as Schedule B), as well as the other benefits and factors cited herein,  which rate consists of $4,000/month for maximum time (4 months/year) premises can now be  used as a theater (due to absence of heating system), plus $1,750/month for remaining time (8  months/year), during which it can be used only for limited purposes such as unheated storage.   Rate to be increased every 5 years, by 15% (projected, average rate of inflation).  All actual,  documented expenditures by CAI for the improvements referenced in Paragraph 7.a, below,  including “soft costs” for the assessment of building condition and the design of improvement,  shall be credited toward the total rental fee, except that such credited value shall not include  any improvement items to be retained by CAI, or any costs that do not directly contribute to the  value of the premises (such as legal fees).  In the event that the total credit is not sufficient to  cover rent for the entire lease term, the uncovered difference shall be paid by CAI either in the  DRAFT COPY – NOT YET APPROVED BY MEMBERS OF THE LEGISLATIVE COMMITTEE  8 form of annual payments (at the then‐applicable rate), or per the value of further improvements  to the premises carried out by CAI pursuant to Paragraph 7.c, below.  It is agreed that CAI shall  be solely responsible for the cost of the above‐referenced appraisal.          7. IMPROVEMENTS:  a. To discharge its rental obligations hereunder, CAI promises to plan and implement  certain improvements to the leased premises.  Said improvements shall include  certain core items identified as such by agreement of the parties.  Attached as  Schedule C is a full list and description of the planned improvements, with core  items and other credited items so identified.  CAI to procure and pay for all  necessary permits.  CAI to select, contract with, direct, supervise and compensate all  contractors, in compliance with all applicable laws, rules and regulations.  CAI to  inform City of all contractor bids, and City reserves the right to veto any contractor  deemed unqualified in City’s sole discretion.  All items on this list to be completed in  a workerlike manner, and by 6/30/10 (except for any items so listed with a later  completion date).  Upon notice from CAI of completion, City to inspect work for  compliance with terms of this Paragraph, and either to certify satisfactory  completion for purposes of this Lease, or to specify in writing any unsatisfactory  items, which CAI shall remedy within 45 days of receiving such notice.  b. By vote of BPW on 5/6/09, City has consented to allow CAI to undertake the  improvements listed in Schedule C, subject to CAI’s securing any necessary permits  for such work and to certain other conditions as set forth in the resolution.    c. Any further, proposed improvements to the buildings or the grounds that are part of  the leased premises, by CAI, shall require the prior approval, by resolution, of the  BPW, and, if to be credited toward rent, of the Common Council (for that purpose).   Any additional building shall be used for the purposes set forth in Paragraph 3,  above.    8.  RIGHT OF FIRST REFUSAL:  In the event that City elects to sell the leased premises, City shall  notify CAI in writing of such decision at least 12 months prior to any solicitation of offers or  bids.  City shall provide CAI with a notice and a copy of any bona fide, full‐value purchase offer it  receives.  CAI shall have the right to purchase said premises by matching the terms of the  highest such offer so noticed, within 60 days of notification of said offer.    9.  LESSEE’S RESPONSIBILITIES   a. CAI to maintain its status & good standing as not‐for‐profit, tax exempt corporation.  b. CAI shall offer to the public a program of performing arts entertainment and  education, including:  i. At least 32 performances per year that are open to the public (and for which  admission may be charged),  ii. Ongoing performing arts instruction and experience for children, each year  (for which a fee may be charged), and  iii. A strategy (reduced to writing, for the City’s periodic review) for making the  performing arts experience accessible and affordable for adults and children  of limited financial means.  c. CAI solely responsible for keeping leased premises in good repair, and in a clean,  safe, tenantable condition.  DRAFT COPY – NOT YET APPROVED BY MEMBERS OF THE LEGISLATIVE COMMITTEE  9 d. CAI solely responsible for ensuring that premises is in compliance at all times with  all applicable laws, codes and regulations (including but not limited to Americans  with Disabilities Act, and Fire & Building Code as enforced by City), and has all  required permits.  e. CAI solely responsible for all maintenance, repair and – as necessary – replacement  of components of the leased buildings and grounds, including but not limited to:  i. Roof, Walls, Floor, Doors, Windows (which shall be fully secured against  leaks or entry by birds or other animal intrusions, & protected from damage  by vines).    ii. Heating and Cooling Systems  iii. Plumbing  iv. Electrical  v. Fire protection systems (e.g., fire alarms and sprinklers)  vi. Parking Areas (incl. striping on hard surfaces, and resurfacing, as needed)  vii. Landscape (including mowing, pruning, snow removal, litter clean‐up,  graffiti removal, etc)    f. Insurance & Indemnification  i. CAI to maintain liability insurance coverage upon the leased premises, in the  initial, minimum amount of $1,000,000 per occurrence and $5 million as  umbrella coverage, and shall ensure that the City of Ithaca is named as a co‐ insured on such policy.  The minimum amount of required coverage shall be  subject to reasonable, periodic adjustment by the City, upon prior written  notice to CAI of at least 6 months.  ii. CAI to maintain insurance coverage against property loss (including damage  to fixtures, personalty or equipment used in conjunction with operation of  theater) by fire or other hazards, in the initial, minimum amount of  $5,000,000, and shall ensure that the City of Ithaca is named as a co‐insured  on such policy.  The minimum amount of required coverage shall be subject  to reasonable, periodic adjustment by the City, upon prior written notice to  CAI of at least 6 months.  iii. CAI to provide written documentation to City that required coverage is in  place, at least annually by January 31st, or at other times upon request.  iv. Any proceeds received through the hazards coverage shall be used as a trust  fund toward repair or reconstruction of damaged buildings, on the premises.  v. CAI to indemnify and hold City harmless (same as in Art. 3(b) of 1987 lease –  but including coverage for any CAI negligence in making improvements to  site).    10.  UTILITIES:  CAI responsible for all utilities (including water/sewer).    11.  PARKING:  CAI to provide adequate parking for its permitted use, on the leased premises,  and to instruct its patrons not to park on off‐site lawn areas.    12.  RIGHT TO INSPECT:  City shall have right to inspect any part of the premises, upon at least  48 hours notice (except that City may inspect on shorter notice when a life safety issue is  involved).    13.  DEFAULT:  DRAFT COPY – NOT YET APPROVED BY MEMBERS OF THE LEGISLATIVE COMMITTEE  10 a. Shall consist of:  i. Failure to make improvements as set forth in Paragraph 7.A and listed in  Schedule C (i.e., including all items designated as core items).   ii. Failure to maintain required insurance.  iii. Failure to maintain performing arts operations as described in Paragraph  9.B, for a period of more than one year.  iv. Failure to maintain the premises in good repair and in a safe, clean  condition, and in compliance with applicable laws, codes or regulations.    b. Procedure  i. City to provide CAI with written notice of defect and order to remedy within  45 days, except that City may impose shorter period for life safety matters.  ii. Failure to remedy within required time shall entitle City to terminate Lease,  on 60 days’ written notice.            14.  SURRENDER OF PREMISES, INCLUDING PERMANENTLY FIXED   IMPROVEMENTS:  Same as in 1987 Lease (Art 8), but extend definition of “permanently fixed  improvements” that CAI cannot remove, to include any lighting or seats listed as credited items  on Schedule C (except:  CAI can remove straight‐line, declining portion of such lighting or seats  if it surrenders premises in fewer than 10 years; and CAI can replace credited items in the  normal course of business, due to normal wear and tear).      15.  CHANGE IN TAXABLE STATUS:  If Tompkins County changes current tax exempt status of  leased premises, CAI shall reimburse City for the amount of any taxes incurred as a result,  within 60 days of receipt of documentation of the levy and amount of each such tax bill.  CAI  shall have the right to challenge such change, regardless of whether City chooses to do so.    16.  CONSTRUCTION OF LEASE TERMS & DISPUTE RESOLUTION:  In the event of dispute over  terms of Lease, parties agree to participate in efforts at voluntary dispute resolution, using the  services of Community Dispute Resolution Center (of Ithaca), or a similar organization if CDRC  does not exist.  If no voluntary agreement is reached within 60 days of the commencement of  such effort,  parties agree to submit the matter to binding arbitration [using standard  procedure].    17.  SMOKING:  Smoking (except permissible stage smoking) prohibited on any part of leased   Premises, including outdoor areas – except within a designated outdoor area at least 50 feet  distant from any entrance/exit to any building that has been so approved by the City.  CAI shall  post No Smoking signs in outdoor areas of leased premises and instruct its patrons as to such  regulation.  CAI agrees that if City enacts restrictions on outdoor smoking in recreational areas,  City may impose such restrictions on these leased premises, consistent with the terms of this  lease.    18.  WAIVERS OF LIEN:  Same as in 1987 Lease (Art 7).    19.  ASSIGNMENT:  Same as in 1987 Lease (Art 9), with CAI able to assign “ground lease” to  secure payment (provided such assignment does not entitle assignee to select new lessee  without City’s consent).    20.  SUBLEASING:  Same as in 1987 Lease (Art 13), except add that sublessee must be tax   DRAFT COPY – NOT YET APPROVED BY MEMBERS OF THE LEGISLATIVE COMMITTEE  11 exempt, and specify that “subleasing” is not intended to refer to short‐term, incidental rental to  others as described in Paragraph 3.      21.  CONDEMNATION:  Same as in 1987 Lease (Art 11), but clarify that City can’t condemn &   refuse to compensate CAI.  In event of condemnation, CAI shall be entitled to a declining,  proportional amount of any compensation due or paid for lost value of buildings (but not land),  based on how many years of the lease term are remaining at the time of such condemnation.   (Such proportion shall decline on a straight‐line basis, such that 98% will be due if 49 years  remain, 50% if 25 years remain, 20% if 10 years remain, etc.)  In any case, if, following such  condemnation, CAI fails to relocate to another theater site within the City of Ithaca and within  36 months, the rate of compensation due to CAI shall be reduced by 25% of the total award for  lost value of buildings (as adjusted for lease term years remaining).    22.  NON‐DISCRIMINATION:  Add sexual orientation, etc, per current City practice.    23.  NOTICES:  Allow both parties to notify of new addresses.    24.  SEVERABILITY:  Same as in 1987 Lease (Art 20), with insertion of missing words.    Lease to be binding upon parties and their successors.