HomeMy WebLinkAboutMN-IURA-2017-01-26Approved: 3/23/17
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, January 26, 2017
Members: Mayor Svante Myrick, Chair; Tracy Farrell; Karl Graham; Chris Proulx; Eric Rosario;
Graham Kerslick (Common Council Liaison)
Excused: None
Staff: Nels Bohn; Charles Pyott
Guests: Stephen Smith, Common Council; Shannon MacCarrick, Habitat for Humanity of
Tompkins & Cortland Counties, Executive Director
I. Call to Order
Chair Myrick called the meeting to order at 8:33 A.M.
II. Agenda Additions/Deletions
No changes were made to the agenda.
III. Public Comment
None.
IV. Review of Draft Meeting Minutes: December 15, 2016
Farrell moved, seconded by Rosario, to approve the December 15, 2016 meeting minutes, with
no modifications.
Carried Unanimously 5‐0
V. Governance Committee (GC) Report
A. Public Authorities Accountability Act Compliance
1. Reaffirmation of IURA Investment Guidelines
Rosario indicated the investment guidelines were generated in order to comply with New York
State’s Public Authorities Accountability Act requirements (e.g., maximizing earned interest on
IURA‐managed funds; annually remitting all interest earned on HUD funds to U.S. Treasury
Department).
Ithaca
Urban
Renewal
Agency
IURA Minutes
January 26, 2017
Page 2 of 8
Rosario noted the Committee discussed the possibility of identifying other potential restrictions to
IURA investments, which the IURA may be interested in instituting (e.g., socially responsible
investing practices, like divestment from fossil fuel‐producing companies), and which would be
consistent with the IURA’s mission and the populations it serves.
Farrell cautioned that the list of potential restrictions could conceivably become very long and
would probably generate considerable discussion. Graham suggested avoiding excessive discussion
by simply restricting investment to local financial institutions, since that would address most of the
kinds of concerns being raised.
Myrick indicated he would not object to some form of the proposal. He agreed with Farrell it may
be best to avoid creating a very long list of potential issues.
Rosario suggested the IURA ask Graham to draft an initial written proposal, which the IURA could
then review. There were no objections. Graham agreed to do so.
Moved by Rosario, seconded by Farrell:
Reaffirm IURA Investment Guidelines
WHEREAS, on March 25, 2011, the IURA adopted investment guidelines regarding the investing,
monitoring and reporting of funds of the IURA, and
WHEREAS, the Public Authorities Law requires each public benefit corporation to adopt and
annually review and approve such guidelines, and
WHEREAS, the IURA periodically reviews the investment guidelines, and
WHEREAS, at its January 20, 2017 meeting, the IURA Governance Committee reviewed its
investment guidelines and compliance with the guidelines, and recommends the following; now,
therefore, be it
RESOLVED, that the IURA hereby reaffirms the IURA investment guidelines, dated March 25,
2011.
Carried Unanimously 5‐0
IURA Minutes
January 26, 2017
Page 3 of 8
2. Reaffirmation of IURA Mission Statement
Moved by Rosario, seconded by Farrell:
Reaffirm IURA Mission Statement
WHEREAS, on March 25, 2011, the IURA adopted the following IURA mission statement:
The Ithaca Urban Renewal Agency secures and manages resources to improve the social,
physical and economic characteristics of the City of Ithaca by expanding access to quality
affordable housing, strengthening neighborhoods and the local economy, and supporting
other community development activities.
WHEREAS, the Public Authorities Law requires each public benefit corporation to adopt and
annually review its mission statement, and
WHEREAS, the IURA periodically reviews its mission statement, and
WHEREAS, at its January 20, 2017 meeting, the IURA Governance Committee reviewed this
matter and recommends the following; now, therefore, be it
RESOLVED, that the IURA hereby reaffirms the IURA mission statement, dated March 25, 2011.
Carried Unanimously 5‐0
3. Annual Self‐Evaluation of IURA Board Performance
Rosario indicated the self‐evaluation form remains virtually unchanged from prior years. The
Committee did ask Bohn to make one change to the form: adding a comments box, so any free‐form
comments and suggestions could be captured. While past survey results have invariably been fairly
positive, they provided no opportunity for Board members to elaborate on a particular area, or
bring up issues not covered in the criteria listed.
B. HUD Annual Community Assessment (8/1/15‐7/31/16) Review
Rosario explained the assessment is a desk‐monitoring exercise that HUD conducts, based on what
the IURA reports to HUD and what it enters in HUD’s IDIS database. This particular assessment was
by‐and‐large excellent. It identified no major shortcomings, other than the City of Ithaca’s own late
audit. Bohn added that the report’s reference to timely cash‐reporting (“ensure that program
income recorded in the Federal Cash Transactions Reports is receipted into IDIS in a timely manner”)
refers to the delay between when the IURA tracks Program Income in its monthly in‐house
accounting system and when it reports that information in IDIS, which it has been doing on a
quarterly basis. IURA staff will now be changing this practice in 2017 to report Program Income on a
monthly basis in IDIS (although there may be occasions when that is not possible, due to heightened
staff‐time demands associated with audits, reports, and other staff‐time constraints).
IURA Minutes
January 26, 2017
Page 4 of 8
Rosario noted that the IURA has less control over the City’s audit schedule (although at least it has
been completed earlier every year, for the past few years). He indicated there was some funding for
a staff member approved by Common Council in 2016.
Myrick responded, that is correct. It was intended to fund a part‐time position. The City Controller
will actually contract out some work with an accountant, in addition to the part‐time staff member.
C. IURA Financials Review: December 2016
Rosario reported the financial report is very good, with the exception of Southside Community Center’s
Building for the Future computer laboratory program, likely a result of Southside’s considerable
turn‐over in its board membership and staffing, over the past year.
Bohn added that IURA staff will be meeting with the organization’s board president in February to
discuss both the Building for the Future program and the RIBS program, which is delinquent on its
lease payments. There have been a significant shortfall in the reported number of LMI beneficiaries
with the Building for the Future program. It was originally projected to generate 25 beneficiaries.
While the computer laboratory itself was successfully set up, the IURA only received documentation
of 4 beneficiaries.
Rosario reported that IURA loan payments are all currently in good standing. (Madeline’s Restaurant
made a recent payment.)
VI. Neighborhood Investment Committee (NIC) Report
A. Designation of Habitat for Humanity of Tompkins & Cortland Counties, Inc. as Sponsor to
Acquire 402 S. Cayuga Street to Undertake Urban Renewal Project
Graham reported the Committee reviewed the proposal for purchase and development of the
property. In order for the project to move forward, the IURA needs to designate Habitat as the
sponsor. The project accomplishes everything the Committee had been hoping to achieve on the site.
Bohn added the resolution refers to the project’s constructing at least 2 owner‐occupied homes. If any
aspect of the project does not go according to plan, the IURA could revisit the issue. The IURA would
not actually convey ownership of the site, until Habitat demonstrates the feasibility of the project and
successfully goes through the IURA funding application process.
Moved by Graham, seconded by Farrell:
Designation of Habitat as Sponsor to Undertake an Urban Renewal Project
at 402 S. Cayuga St. ― Property DisposiƟon
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
IURA Minutes
January 26, 2017
Page 5 of 8
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
WHEREAS, IURA evaluation criteria for Sponsors include:
1. Financial status and stability
2. 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
3. Previous experience in the financing, use, development and operation of projects of a similar
nature
4. 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
IURA Minutes
January 26, 2017
Page 6 of 8
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:
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
IURA Minutes
January 26, 2017
Page 7 of 8
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 5‐0
D. Committee Chairperson Report
Graham reported the Committee recently discussed the proposed Finger Lakes ReUse’s expansion
project, which would include 22 units of supportive homeless housing.
Graham noted the Community Development Housing Fund recently approved funding for the INHS
Scattered Site Rental Housing Preservation Project, a Second Wind Cottages expansion of 4 units,
and a low‐income tax credit project.
VII. Economic Development Committee (EDC) Report [DID NOT MEET]
VIII. Other/New/Old Business
A. IURA Chairperson Report
Myrick announced that Common Council recently approved an amendment to Chapter 215 of the City
of Ithaca Municipal Code, formally recognizing “the importance of fostering a city that is welcoming
and inclusive for all individuals, regardless of nationality or citizenship status” and ensuring “to the
greatest extent permitted by law, that immigration enforcement is a function of the federal
government and not the City of Ithaca.” Myrick added that the City’s legal research suggests the
legislation should not impact HUD funding to the IURA and should not significantly impact the City’s
own Federal funding.
B. Common Council Liaison Report
Kerslick reported that Common Council continues to be concerned with immigration and the need to
make a strong statement on the issue, as other communities have been doing.
C. Staff Report
Bohn reported that the search committee for the vacant Community Development Planner position
continues to meet to review the candidates.
Bohn reported the 2017 IURA funding application process is well underway. He has personally spoken
with 20 different potential applicants. He anticipates a robust set of applications this year; however,
the IURA will also have less available funding than in prior years, which will complicate the decision‐
making process.
IURA Minutes
January 26, 2017
Page 8 of 8
IX. Adjournment
The meeting was adjourned by consensus at 9:22 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.