HomeMy WebLinkAboutMN-IURA-2017-09-28Approved: 10/26/17
108 E. Green St.
Ithaca, NY 14850
(607) 274-6565
MINUTES
ITHACA URBAN RENEWAL AGENCY
Common Council Chambers, City Hall
8:30 A.M., Thursday, September 28, 2017
Members: Mayor Svante Myrick, Chair; Tracy Farrell, Vice‐Chair; Karl Graham; Eric Rosario;
Graham Kerslick (Common Council Liaison)
Excused: Chris Proulx
Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott
Guests: None
I. Call to Order
Vice‐Chair Farrell called the meeting to order at 8:30 A.M.
II. Agenda Additions/Deletions
No changes were made to the agenda.
III. Public Comment
None.
IV. Review of Draft Meeting Minutes: July 27, 2017
Rosario moved, seconded by Graham, to approve the July 27, 2017 meeting minutes, with one
minor modification.
Carried Unanimously 3‐0
(Myrick arrived at 8:33 a.m.)
V. Neighborhood Investment Committee (NIC) Report
A. FY2017 Action Plan ― Ithaca Neighborhood Housing Services (INHS) Community Housing
Development Organization (CHDO) Set‐Aside Project at 828 Hector Street
Graham explained that INHS submitted a proposal to purchase and renovate an existing home at 828
Hector Street for sale to a low‐to‐moderate income homebuyer, as a CHDO funding set‐aside
project.
Ithaca
Urban
Renewal
Agency
IURA Minutes
September 28, 2017
Page 2 of 7
Moved by Rosario, seconded by Graham:
INHS Community Housing Development Organizations (CHDO) Set‐Aside Project
at 828 Hector Street (FY2017 Action Plan)
WHEREAS, the Ithaca Urban Renewal Agency (IURA) has been designated by the City of Ithaca as
the Lead Agency to develop, administer and implement the HUD Entitlement grant program,
including funds received through the Home Investment Partnerships (HOME) program, and
WHEREAS, on July 12, 2017, Ithaca Neighborhood Housing Services, Inc. (INHS) submitted a
project proposal requesting a development subsidy of $41,348 for an estimated $238,041
project for acquisition, rehabilitation, and resale as an affordable home to first‐time, low‐to‐
moderate income homebuyers an existing home at 828 Hector Street, Ithaca, NY, and
WHEREAS, the HOME program requires each grantee to reserve 15% of the HOME allocation for
investment only in housing to be owned, developed or sponsored by Community Housing
Development Organizations (CHDOs), and
WHEREAS during development of the 2017 Action Plan no eligible CHDO set‐aside projects were
received in response to the public call for funding proposals, and
WHEREAS, the City of Ithaca’s adopted 2017 Action Plan established a CHDO reserve project,
equal to 15% of the HOME award, to fund a CHDO set‐aside activity, and
WHEREAS, (INHS) is the only 2017 designated CHDO in Ithaca, NY, and
WHEREAS, the 828 Hector Street project qualifies as a CHDO set‐aside activity, and
Whereas, the mandatory CHDO set‐aside reserve equals $41,348.00, and
WHEREAS, at their July 14 and August 10, 2017 meetings, the Neighborhood Investment
Committee of the IURA has reviewed this proposal for its appropriateness, and recommends the
following; now, therefore, be it
RESOLVED, that the IURA hereby allocates $41,378 from the 2017 Action Plan’s CHDO set‐aside
reserve to INHS as a development subsidy to undertake the 828 Hector Street affordable
homeownership project as a CHDO set‐aside activity.
Carried Unanimously 4‐0
B. Committee Chairperson Report
None.
IURA Minutes
September 28, 2017
Page 3 of 7
VI. Economic Development Committee (EDC) Report
A. Request from LAG Restaurant Group, LLC for 3rd Amendment to Loan Agreement (CD‐RLF 40)
Bohn explained that LAG Restaurant Group asked the IURA to release the personal guarantee
associated with the loan for Autumn Greenberg, since Ms. Greenberg is being bought out by the
other owners. IURA staff determined the business should not be negatively impacted by the change
in ownership. It has consistently shown a profit and remains current in its repayments to the IURA.
The owners also saved $5,000 to contribute to the buy‐out and are refinancing their debt to cover
the remainder ($20,000).
Moved by Rosario, seconded by Farrell:
LAG Restaurant Group, LLC, dba The Rook, Loan Modification #3 (CD‐RLF #40)
WHEREAS, on April 25, 2016, the IURA issued a six‐year $40,000 loan to LAG Restaurant Group,
LLC (LAG) to open The Rook restaurant at 404 W. State/MLK Jr. Street, and
WHEREAS, the business is jointly owned by Lila Donaruma, Gentry Morris and Autumn
Greenberg, and
WHEREAS, LAG requests the IURA release the financial guarantee of Autumn Greenberg to
facilitate a consolidation of ownership of the business, and
WHEREAS, Donaruma and Morris are in the process of buying out Greenberg’s ownership
through a combination of retained earnings and additional business debt, and
WHEREAS, the IURA loan is secured by a 1st security lien on business assets, financial guarantees
from each of the three owners and an additional financial guarantee from Francisco Donaruma,
and
WHEREAS, the outstanding balance on the loan is $33,848.53 as of June 30, 2017, and
WHEREAS, LAG is current on IURA loan repayments and satisfied their 6 FTE job creation goal,
and
WHEREAS, based on FY16 financials and YTD FY17 financials, the business is operating profitably,
and sufficient to pay debt service on an additional loan to repay initial equity invested by Ms.
Greenberg, and
WHEREAS, at their August 8, 2017 meeting the Economic Development Committee reviewed this
matter and recommended the following; now, therefore be it
IURA Minutes
September 28, 2017
Page 4 of 7
RESOLVED, that the IURA hereby approves Loan Modification #3 to approve a request to release
the personal financial guarantee of Autumn Greenberg upon submission of proof she is no
longer an owner in the LAG Restaurant Group, LLC, and be it further,
RESOLVED, that IURA Chair is authorized, subject to review by IURA legal counsel, to execute any
and all documents to implement this resolution, including but not limited to a release of
financial guarantee and subordination of the IURA’s 1st security lien on business assets to
facilitate a commercial loan to finance the ownership buyout, and be it further
RESOLVED, the borrower shall be responsible for any IURA legal costs.
Carried Unanimously 4‐0
B. Committee Chairperson Report
None.
VI. Other New/Old Business
A. Green Street Garage Urban Renewal Project
1. Approve Option Agreement to Acquire Project Site from City
Bohn explained that a developer approached the City with a proposal to acquire and redevelop the
Green Street Parking Garage into a proposed mixed‐use project. The western and central sections
of the garage are located on a City‐owned tax parcel. The City possesses air rights for the eastern
section of the garage. On September 13, 2017, the City’s Planning and Economic Development
Committee recommended that Common Council authorize the transfer of the garage to the IURA,
so the IURA can structure a proposed sale and development agreement. The City is also asking the
IURA to ensure certain programmatic components are included in the project (e.g., 25,000 square‐
foot conference center; 350 housing units, including significant number of affordable units; street‐
level active uses along Green Street; retention of Cinemapolis movie theater; inclusion of 450 public
parking spaces). The timeline for action on the proposed project will be critical, since the City will
need to take action very soon on the garage’s recently discovered structural deficiencies.
Farrell asked if the number of proposed parking spaces would be enough to serve the city’s needs,
given the recent increase in economic activity. Bohn replied that the Cayuga Street Garage is
generally at 50% capacity at mid‐day; and although the Green Street Garage has been more
occupied recently (70‐85% capacity), some of that was simply due to increased construction‐related
use. The Seneca Street Garage, on the other hand, has experienced somewhat lower occupancy in
recent years. More accurate information about parking supply and demand would be produced by
the developer and city, during the environmental review portion of the project’s Site Plan Review.
Rosario asked why the IURA should be taking action on the issue, before Common Council actually
approves the committee’s recommendation. Kerslick replied that most of Common Council was
present at the committee meeting; he would be very surprised if it did not approve the
recommendation.
IURA Minutes
September 28, 2017
Page 5 of 7
Farrell suggested it may be best to table any action on the issue today and wait until Common
Council acts. Rosario and Graham both agreed.
Kerslick remarked that any concerns or recommendations IURA members may have about the
project (e.g., amount of parking; type of housing) should be communicated to Common Council.
Farrell indicated she would like any plans for the project to be more flexible, in terms of housing,
parking, and the size and configuration of the project. Other members agreed.
Moved by Farrell, seconded by Graham, to table the proposed resolution.
Carried Unanimously 4‐0
B. Restore New York Round 5 Grant ApplicaƟon ― Call for Proposals
Bohn explained that the City of Ithaca/IURA has been soliciting project proposals for inclusion in a
Restore New York Round 5 grant funding application to the Empire State Development Corporation.
Up to $1,000,000 may be available to the City to assist in the redevelopment of abandoned,
condemned, surplus, or vacant building(s) in the urban core for residential, commercial, or mixed
use. Project applications will be reviewed by the Economic Development Committee (EDC), which
will recommend up to two projects for the City’s application.
(Myrick departed at 9:23 a.m.)
C. Assessment of Fair Housing – Status Report
Mendizabal reported that she completed her work with the last focus group and is currently
drafting the Assessment of Fair Housing report. The principal concerns raised from community
engagement and Public Hearings include overall housing affordability and the lack of protection for
people receiving Section 8 vouchers or other forms of housing assistance (i.e., source‐of‐income
discrimination). Other concerns include the lack of fair housing enforcement mechanisms and the
need to increase overall awareness of fair housing rights.
Bohn added that source‐of‐income discrimination is difficult to address. Mendizabal noted some
states have source‐of‐income protections, but not New York. There is no legal mechanism to
require landlords to accept Section 8 vouchers, so the underlying purpose of the Section 8 voucher
program is essentially being undercut.
Rosario noted it appears to be something local jurisdictions could address through legislation.
Farrell suggested landlords could be educated to understand that they are always free to screen
potential Section 8 tenants, just as they would anyone else.
IURA Minutes
September 28, 2017
Page 6 of 7
Graham remarked that, since Section 8 tenants are disproportionately likely to come from minority
populations and other protected classes, source‐of‐income discrimination is de facto discrimination
and should certainly be addressed in some way.
D. Review of IURA Financials: August 2017
Bohn reported that the Grants Summary does not yet include 2017 projects, since the IURA only
recently submitted its 2017 Action Plan for HUD’s approval and is still waiting for the funds to be
released. All projects are generally on schedule. The two major unexpended line‐items are capital
improvement projects (2016 Wading Pool Renovations, 2015 Spencer Road Sidewalks), both of
which will be put out for bid shortly, with construction scheduled for early or late Spring 2018.
On the Loan Repayments report, Bohn noted three had been delinquent at the time the report was
generated. The issue with the JG McGuire (Lot 10) loan has now been resolved: it stemmed from
miscommunication between JG McGuire and M&T Bank. The State Theatre is one month late. e2e
Materials is planning a change in ownership, which may impact its cash flow; however, it has
maintained regular communication with IURA staff about the issue.
In terms of Lease Payments, all parties are listed as current, except Southside Community Center,
which has since paid.
Farrell suggested the IURA consider lowering Southside Community Center’s rent, at some point.
Bohn replied the IURA would need Common Council approval of any change in rent. Southside
Community Center could, however, apply for an abatement of up to 50% of its monthly rent for any
costs incurred to improve the property.
E. FY2016 City Financial Audit
Bohn reported the City has met its deadline for completing its annual audit, for the first time in
many years, which is encouraging.
F. IURA Chairperson Report
None.
G. Common Council Liaison Report
None.
H. Staff report
Bohn reported that IURA staff continues to pursue the possibility of enrolling the IURA in the Greater
Tompkins County Municipal Health Insurance Consortium. There have been positive indications that
this may be feasible. The Consortium’s annual health insurance premium increases are significantly
less than the IURA’s.
IURA Minutes
September 28, 2017
Page 7 of 7
VII. Adjournment
The meeting was adjourned by consensus at 9:55 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.