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Home My WebLink AboutMN-IURAED-2017-04-11Approved: 6/13/17 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY Economic Development Committee (EDC) 3:30 PM, Tuesday, April 11, 2017 Common Council Chambers, City Hall, Ithaca, NY Present: Doug Dylla, Leslie Ackerman, Charles Hamilton, Chris Proulx, Heather Harrick Excused: None Vacancies: 1 Staff: Nels Bohn, Charles Pyott Guests: None I. Call to Order Chair Dylla called the meeting to order at 3:30 P.M. II. Agenda Additions/Deletions None. III. Review of Meeting Minutes: December 8, 2016 Hamilton moved, seconded by Ackerman, to approve the December 8, 2016 minutes, with no modifications. Carried Unanimously 4‐0. IV. Public Comments (3‐minute maximum per person) ― None. (Harrick arrived at 3:33 p.m.) V. 2017 HUD Entitlement Grant Program 1. Review of 2017 Economic Development Funding ApplicaƟons ― Discussion Bohn presented a draft version of a proposed 2017 Action Plan spreadsheet [located at the end of this document], derived from the Neighborhood Investment Committee’s (NIC) recommendations. Ithaca Urban Renewal Agency IURA EDC Meeting Minutes April 11, 2017 Page 2 of 6 Bohn indicated the IURA Board will meet this week to review the merits of all the applications and approve a draft Action Plan. The Committee should now make its own recommendations to the IURA Board for the Economic Development applications. Since the initial presentation of the applications to the IURA Board, IURA staff followed up with several applicants regarding the extent to which they may be willing to accept a loan, rather than a grant. NIC has recommended retaining $50,000 in CDBG Program Income as a contingency fund, given the uncertainty of Federal funding appropriations. Hospitality Employment Training Program (HETP) ― Greater Ithaca Activities Center (GIAC) Bohn noted this year’s HETP application proposes to launch an entirely new training cohort focused on administrative jobs, since many hospitality jobs include large components of that kind of work. The risk with this particular application is that GIAC has yet to prove it can meet the Community‐Based Development Organization (CBDO) board composition criteria, which means it could be pushed out of the Public Services category. The IURA could be taking a significant risk, if it funded the program and it turned out GIAC were not eligible. Bohn noted the program’s strength is that it has been very effective at recruiting participants and it has shown robust job‐placement results. Proulx noted the IURA seems to ask the same question every year about the program diversifying its funding base and why it cannot get more employers to agree to fund it. There is also the question of whether the IURA’s investment in the program is actually generating as much training as it should be. Proulx wondered how many of the program’s graduates would ultimately have been trained and placed in jobs without the program. Dylla recalled the IURA communicated to the applicant that it wanted to see even more job placements. It may also be worth considering indicating to the applicant that the IURA would only fund, for example, 75% of the program’s cost in future years. Bohn responded that some employers are hiring program participants right away, without paying stipends for on‐the‐job‐training, which is one thing to consider. That could be something GIAC tracks in the future. Ackerman wondered if asking GIAC to more forcefully solicit employer funding might not end up backfiring and deter employers from buying into the program. Harrick suggested the IURA ask GIAC to more meticulously track the program’s job placement and retention rates, as well as employer contributions. IURA EDC Meeting Minutes April 11, 2017 Page 3 of 6 Ithaca ReUse Center Expansion ― Finger Lakes ReUse Bohn explained that NIC prioritized funding for this project over the other Finger Lakes ReUse other proposal (ReSET Job Training Program). He asked Finger Lakes ReUse if it would prefer a smaller grant or a larger loan from the IURA. It indicated it would prefer a smaller grant. The project would create a free‐standing commercial building, which appears to be a good strategy for the organization to expand and support its debt load. The application also greatly benefits from the inclusion of Ithaca Neighborhood Housing Services (INHS) as the site development consultant. Dylla indicated he would like to see the Finger Lakes ReUse ReSET program remain viable, since that has proven so successful. Harriet Gianellis Child Care Center ― Tompkins Community AcƟon Bohn explained the project would be an expansion of the Amici House project. Tompkins Community Action could have submitted the application under the Housing category, but chose to apply under the Economic Development category for the childcare center, since it will create jobs. The applicant has now committed to generating at least 8 FTE positions, representing a good ratio for the IURA’s $84,000 investment. The project would also satisfy an identifiable need in the community. IURA funds would only be used for land acquisition, so the project would not trigger Davis‐Bacon Act prevailing wage requirements. The applicant needs to limit its funding from bank loans and other sources to 30%. Furthermore, New York State only allows a 5% construction contingency reserve for projects it funds, but Tompkins Community Action believes it should be more than 5%; so IURA funding would effectively be used to increase the construction contingency funding, if needed. Bohn originally wanted to see if Tompkins Community Action could support a loan, which he thought it could do. The organization could not provide concise profit and loss information for the facility to warrant a grant. Bohn recommended funding the project as a loan from IURA Program Income, under its standard terms and at 3.5% interest. Work Preserve Job Training: Job Placement ― Historic Ithaca Bohn explained the program is divided into two separate components, since a number of program participants have many more barriers to employment than those enrolled in most other job‐placement programs. Historic Ithaca has been shaping the program over the years to have a significant job‐placement component. Food Entrepreneurship Program ― Cornell Cooperative Extension (CCE) Bohn explained the program would focus on assisting low‐income people who want to augment their income by providing catering and food services, by helping them overcome some of the innate obstacles involved with that process. Cornell Cooperative IURA EDC Meeting Minutes April 11, 2017 Page 4 of 6 Extension has already been operating a pilot version of the program, which it believes has been very successful; and it is now seeking to expand it. Most of the proposed funding would go towards staffing and participant stipends for licenses, permits, and insurance. The pilot program has elicited considerable local support, especially from Cornell University. NIC concluded that, although the program achieves many IURA goals, it does not seem likely to become financially self‐sustaining. It would also likely not result in many, if any, full‐time jobs. As a result, NIC only recommended partial funding for the program. Proulx suggested fully funding the program. It is a modest amount of money and it targets a different population than other programs. It is also generating genuine economic activity. Dylla agreed. Harrick remarked the applicant should at least be able to demonstrate an ability to access other sources of funding. Ackerman expressed no objection to re‐allocating $10,000 from HETP to the Food Entrepreneurship Program, since it would most likely not impact HETP significantly. Bohn indicated IURA staff could determine whether doing that would excessively impact the program. Hamilton expressed no objection to re‐allocating $10,000 from HETP to the Food Entrepreneurship Program. Proulx asked Committee members if they share his concerns with the Finger Lakes ReUse ReSET program not being funded. If so, the Committee should communicate that to the IURA Board. Dylla agreed the Committee should ask the IURA Board to consider funding the program. Bohn noted Finger Lakes ReUse indicated it would continue to operate the program if it were not funded, on a scaled‐down basis. VI. New Business A. IURA Loans, Grants, & Leases Summary Bohn reported that The State Theatre was originally past due, but recently made two payments. Diane’s Downtown Auto indicated it thought it had made a payment. The Canopy Hotel also missed a payment for the first time. IURA EDC Meeting Minutes April 11, 2017 Page 5 of 6 B. Staff Report Bohn reported that the IURA received an inquiry from a buyer for some IURA properties. It appears the buyer is moving closer to a purchase, which would require IURA approval to reassign the leases. The buyer would also pay off mortgages for land acquisition. Bohn reported the IURA just closed on its $70,000 loan to the Liquid State Brewery, which should start operating soon. Bohn reported the vacant IURA Community Development Planner position has now been filled by Anisa Mendizabal, who will be starting on May 3, 2017. VII. Adjournment The meeting was adjourned by consensus at 4:52 P.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn. Approved: 6/13/17