HomeMy WebLinkAboutMN-IURAGOV-2017-08-18Approved: 12/15/17
108 E. Green St.
Ithaca, NY 14850
(607) 274-6565
MINUTES
ITHACA URBAN RENEWAL AGENCY
Governance Committee (GC)
8:30 AM, Friday, August 19, 2017
Third Floor Conference Room, City Hall, Ithaca, NY
Present: Eric Rosario, David Whitmore, Kathy Schlather
Excused: Susan Cummings
Vacancy: 1
Staff: Nels Bohn, Charles Pyott
Guests: None
I. Call to Order
Chairperson Rosario called the meeting to order at 8:51 A.M.
II. Agenda Additions/Deletions
None.
III. Public Comments (3‐minute maximum per person) ― None.
IV. Review of Meeting Minutes: April 20, 2017
Schlather moved, seconded by Rosario, to approve the April 20, 2017 meeting minutes,
with no modifications. Carried Unanimously 3‐0
Bohn reported on the following Action Items listed in the April 20, 2017 minutes:
In terms of the IURA’s potential $1M in bond assets from the City of Ithaca, that
money was definitely approved many years ago, so that issuance authority remains
in effect (assuming the City agrees to proceed with it). IURA staff will discuss the
issue of reflecting that amount in its next audit, in the notes section.
In terms of inviting the City Controller to a Committee meeting, Bohn spoke to him
about the IURA’s eligibility for the Greater Tompkins County Municipal Health
Insurance Consortium; and the City Controller referred Bohn to someone he could
speak to about that. Bohn also broached the subject of the timeliness of City audits;
and the Controller indicated the auditors completed their field work a month ago,
which is a significant improvement over prior years (although they will most likely
need to consult back and forth with the City). The City Controller indicated he would
be willing to participate in a Committee meeting, assuming there is something
further to discuss.
Ithaca
Urban
Renewal
Agency
IURA GC Minutes
August 18, 2017
Page 2 of 5
Regarding the situation in the ‘Jungle’, Bohn spoke to Assistant Superintendent of
Public Works Ray Benjamin about re‐establishing the no trespassing signage in that
area.
V. New Business
A. Performance Review: IURA Accountant
Bohn recommended the Committee open an Executive Session to discuss the details of
the performance review. No objections were raised.
― EXECUTIVE SESSION ―
Whitmore moved, Schlather seconded to open the Executive Session at 9:02 a.m.
Whitmore moved, Schlather seconded to adjourn the Executive Session at 9:32 a.m.
No action was taken during the Executive Session.
B. Revised FY2017 IURA Action Plan
Bohn reviewed the revised Action Plan with Committee members. He explained that
the original approved version of the Action Plan was based on the assumption the
City/IURA would be level‐funded, compared to last year’s HUD allocaƟon ― however,
the City/IURA was actually awarded funds representing a 16% decline in its HOME
award and a 2.6% decline in its CDBG award, compared to the prior year’s award.
Bohn explained that part of the reason for the reduction is that the pool of HUD
entitlement communities continues to expand on an annual basis, leaving proportionally
less funding for individual communities. Another reason may be that other
communities around the country are ‘catching up’ to Ithaca in terms of lower vacancy
rates and higher housing costs. When the IURA adopted the original Action Plan
resolution in April 2017, it included a contingency plan to pro rate the funding
allocations to address a potential funding reduction.
The largest reduction by far was in HOME funding, but since the Lakeview Ithaca project
declined its IURA funding, that provided $42,000 in funds to help make up some of the
shortfall. The revised Action Plan now awaits Common Council approval in September
2017.
Approved: 12/15/17 FY2017 ACTION PLAN ― HUD EnƟtlement Program, City of Ithaca, NY [REVISED]
Approved: 12/15/17
Bohn reported that the IURA is required to reserve 15% of its HOME award in its Action
Plan to Community Housing Development Organization (CHDO) activities, which need to
be devoted to affordable housing and which only INHS has the capacity to undertake.
INHS recently proposed a project at 828 Hector Street, which was originally scheduled
for foreclosure. INHS offered to pay off the loan and renovate the property as an
affordable housing unit. The Neighborhood Investment Committee (NIC) examined the
proposal and concluded it seemed like a promising project.
VI. Other Business
A. Review of IURA Financials Report: July 2017
Bohn explained that IURA grants are generally good in good shape and are moving
forward, with the exception of the Spencer Road Sidewalk Project and the GIAC Wading
Pool Project, both of which have gone through an extensive review process and are
slated for Spring 2018 construction.
Bohn added that the IURA recently received a letter from HUD, notifying the IURA that it
cannot hold more than 150% of its grant ward as unexpended funds, which the IURA has
now been informed includes it Revolving Loan Fund (RLF) balance. The result is the IURA
now needs to spend $251,000 by June 1, 2018. It does have a pending $200,000 loan,
which will help in that regard; but IURA staff is also trying to ensure the major public
facilities projects will have spent their funds by that time. The IURA and Economic
Development Committee (EDC) are also examining the IURA’s loan policies and
developing strategies to expedite loans.
Bohn remarked that e2e has now become current since the report was generated, but it
is in process of changing ownership, which will mean a temporary cash‐flow shortage
for several months. The State Theatre had originally been running one month behind,
and then two months behind, but it is now current. In addition, it has indicated it will
set up automated payments to the IURA in the future.
In terms of lease payments, Evaporated Metal Films (EMF) was late, but has since paid.
The Southside Community Center was similarly late, but has since paid.
B. IURA Strategic Planning Update ― FY2018 Federal Budget
Bohn reported that the FY2018 Congressional budget contains cuts to both the HOME
and CDBG programs. The IURA will need to base its 2018 budget, based on the funding
it received this year.
C. FY2018 IURA Budget: Health Insurance Report
Bohn reported that New York State regulates health insurance rates every year and it
has approved a statewide increase of 8.9% for Excellus, which is a relatively modest
increase compared to some years. Bohn called IURA’s insurance provider to ask if that
rate increase would be representative of what the IURA could anticipate. She
responded that is not necessarily the case.
IURA GC Minutes
August 18, 2017
Page 2 of 5
D. IURA & Common Council Actions of Interest to Committee
Bohn reported that the new Waterfront zoning regulations were adopted by Common
Council. The IURA owns two properties in the zone, on Inlet Island and at the end of
Cherry Street. The new zoning regulations do not permit residential uses on Cherry
Street. Now that the zoning regulations have passed, the IURA will likely place its Cherry
Street property out for bid. .
E. Staff Report
None.
VII. Adjournment
The meeting was adjourned by consensus at 10:12 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.