HomeMy WebLinkAboutMN-IURAED-2018-01-09Approved: 3/27/18
108 E. Green St.
Ithaca, NY 14850
(607) 274-6565
MEETING MINUTES
ITHACA URBAN RENEWAL AGENCY
Economic Development Committee (EDC)
3:30 P.M., Tuesday, January 9, 2018
Common Council Chambers, City Hall, Ithaca, NY
Present: Chris Proulx, Chair; Doug Dylla, Vice‐Chair; Leslie Ackerman; Heather Harrick
Excused: Charles Hamilton
Vacancies: 1
Staff: Nels Bohn; Charles Pyott
Guests: Carrie Berman, Tompkins Community Action
Lynn Truame, Ithaca Neighborhood Housing Services (INHS)
I. Call to Order
Chair Proulx called the meeting to order at 3:31 P.M.
II. Agenda Additions/Deletions
None.
III. Public Comments (3‐minute maximum per person) ― None.
IV. Review of Meeting Minutes: November 7, 2017
Dylla moved, seconded by Ackerman, to approve the November 7, 2017 minutes, with one minor
modification.
Carried Unanimously 3‐0.
V. New Business
1. CD‐RLF ― Request from Tompkins Community AcƟon, Inc. (“TCAction”) for Supplemental Loan
Assistance for Harriet Giannelis Child Care Center Project at 661‐701 Spencer Rd.
Bohn explained that the IURA previously approved a loan for 2017 Project #9, “Harriet Giannelis
Child Care Center,” which required creation of at least five full‐time equivalent (FTE) positions, for
low‐ and moderate‐income persons. At that time, the IURA was not aware of the additional cost
for relocating TCAction’s offices, for which TCAction has now asked for IURA assistance. Bohn
noted the loan underwriting indicates TCAction should have enough Head Start funding to support
the loan. TCAction has only limited collateral to offer to secure the loan in the form of contents of
the building. While their initial purchase price approximates the loan amount, their collateral
value falls well short of the loan amount in a default scenario.
Ithaca
Urban
Renewal
Agency
IURA EDC Meeting Minutes
January 9, 2018
Page 2 of 9
Bohn noted that mitigating this collateral risk is the consistent history of Head Start funding to TTC
and their ability to absorb loan payments from operating expenses in the event of reduced project
income. He recommended approving the loan.
(Harrick arrived at 3:36 p.m.)
Dylla asked why the relocation cost was not anticipated. Berman replied that TCAction was led to
believe by its contractor that it would be able to remain in the building during construction. It
subsequently became apparent that only a few TCAction staff would be able to do so. Most staff,
as well as TCAction’s clients, were not able to remain in the building, due to construction noise,
activity, and environmental/safety concerns.
Dylla noted the proposed 20‐year term seems somewhat protracted for a $90,000 loan.
Berman responded that TCAction would certainly be amenable to a shorter loan term. A 10‐year
term should be feasible.
Dylla moved, seconded by Ackerman:
Loan Assistance to Tompkins Community Action, Inc. (Activity #23, 2017 Action Plan)
WHEREAS, on October 18, 2017, Tompkins Community Action, Inc. (TCA) applied for a $90,960
loan for unanticipated relocation expenses associated with construction of the $2,100,000
Harriet Giannelis Child Care Center at 661‐701 Spencer Rd., Ithaca, NY; and
WHEREAS, the HGCCC will provide five Early Head Start classrooms serving 48 low‐income
children and their families, and
WHEREAS, the primary objective of the Community Development Revolving Loan Fund (CD‐
RLF) is provision of direct financing for economic development activities that create
employment opportunities, facilitate the expansion of business activity within the City of
Ithaca and expand the commercial and industrial tax base, and
WHEREAS, approximately $145,000 in miscellaneous funds received after close‐out of projects
undertaken with Urban Development Action Grants (UDAGs) are administered by the IURA
and are eligible to be used for a wide variety of community development activities including
child care centers and relocation expenses, and
WHEREAS, a total of three (3) new jobs are projected to be created as a result of requested
financial assistance, and
WHEREAS, TCA is a certified living wage employer, and
IURA EDC Meeting Minutes
January 9, 2018
Page 3 of 9
WHEREAS, the proposed uses of project funds are:
$84,200 Property acquisition
$1,774,470 Construction
$153,530 Fees/Soft costs
$90,960 Relocation expenses
$2,103,160 Total, and
WHEREAS, the proposed sources of project funds are:
$1,325,000 NYS Community Investment Fund (CIF)
$603,000 Bank
$84,200 IURA property acquisition
$90,960 IURA relocation
$2,103,160 Total, and
WHEREAS, the applicable CDBG public benefit standard for economic development projects
requires at least one full‐time equivalent (FTE) job be created for every $35,000 of loan
assistance, and
WHEREAS, the project will generate at least three (3) additional FTE jobs, resulting in $30,320
of loan assistance per beneficiary thereby satisfying the public benefit test, and
WHEREAS, the CD‐RLF establishes the maximum amount of financing for non‐retail businesses
at $150,000 unless a project will result in extraordinary degree of public benefit, and
WHEREAS, the project satisfies all eligibility requirements of the Economic Development Policy
Guidelines and Operating Plan (ED Operating Plan) if CDBG funds are not used to fund the
economic development activity; and
WHEREAS, CDBG regulations limit eligible uses of CDBG funds for economic development loans
to nonprofit entities to the following:
acquisition,
construction,
rehabilitation,
reconstruction, or
installation of commercial or industrial buildings or structures and other related real
property equipment and improvements, and
WHEREAS, relocation assistance is a not an eligible CDBG use for economic development
activities carried out by a non‐profit, and
WHEREAS, a day care center serving low‐income children is eligible for CDBG funding as a
public facility activity, so the project may be allocated CDBG program income funds if the FY
2017 Action Plan is formally amended to establish a new activity, which amendment requires a
public hearing and Common Council approval, and
IURA EDC Meeting Minutes
January 9, 2018
Page 4 of 9
WHEREAS, as project funding for relocation assistance is classified at 24 CFR 58.35(b)(3) as a
categorically excluded activity not subject to federal laws listed at 58.5, therefore the activity
requires no further environmental review under the National Environmental Protection Act
(NEPA), and
WHEREAS, the City of Ithaca Planning and Development Board issued a negative declaration
on 11/22/16 finding that the project will not have a significant impact on the environment
pursuant to the City of Ithaca Environmental Quality Review Ordinance and therefore is not
subject to further local environmental review, and
WHEREAS, at their January 9, 2018 meeting, the IURA Economic Development Committee
reviewed the loan application, a credit analysis prepared by IURA staff and applicable
provisions of the IURA Economic Development Policy Guidelines and Operating Plan, and
recommend the following; now, therefore, be it
RESOLVED, that the IURA hereby find the requested relocation assistance a reasonable and
appropriate project expense and approves a loan in accordance with the loan application,
subject to the following terms:
Borrower: Tompkins Community Action, Inc.
Loan Amount: Up to $90,960
Project: Relocation expenses associated with the construction of
the Harriet Giannelis Day Care Center, located at 661‐701
Spencer Rd., Ithaca, NY.
Total Project Cost: $2,103,160
Projected Use of IURA
Funds:
Temporary relocation expenses for TCA operations
Term: 120 months (10 years)
Amortization Term: 120 months
Interest Rate: 2.5% annually
Repayment: Level monthly payments of principal and interest to fully
amortize the loan over 240 months (approximately
$857.50/month).
IURA EDC Meeting Minutes
January 9, 2018
Page 5 of 9
Loan Collateral: 1. Security lien on tangible personal property of the
Harriet Giannelis Day Care Center, including but not
limited to furnishings, kitchen equipment and
movable playground equipment located at 661‐701
Spencer Rd., Ithaca, NY.
Personal Guarantor(s): Not applicable
Job Creation
Requirement:
Creation of a minimum of three (3) FTE employment
positions of which at least 51% must be held by low‐ and
moderate‐income persons.
Reporting: 1. Annual submission of audited financial statements.
2. Quarterly IURA job reporting.
3. Documentation of project match funding.
And be it further,
RESOLVED, that the initial source of loan funds shall be miscellaneous income derived from
miscellaneous funds derived from closed‐out Urban Development Action Grant (UDAG)
projects, and be it further
RESOLVED, that the IURA hereby recommends to the City of Ithaca Common Council a
substantial amendment to the FY 2017 Action Plan to allocate $90,960 to the Harriet Giannelis
Early Head Start Day Care Center project, a CDBG‐eligible public facility serving 48 low‐income
children, with funds to be derived from the Community Development Revolving Loan Fund
(CD‐RLF), and be it further
RESOLVED, that upon Common Council approval of an Amendment to the FY2017 Action Plan
to establish a new funded activity for the day care facility, CDBG program income from the CD‐
RLF shall be allocated to fund the loan, and be it further
RESOLVED, that should the Action Plan amendment not be approved, UDAG funds shall serve
as the permanent funding source for the loan, and
RESOLVED, that the IURA Chairperson, upon the advice of IURA legal counsel, is hereby
authorized to execute all necessary and appropriate documents to implement this resolution.
Carried Unanimously 4‐0
2. Loan Pipeline Report
Bohn reported that IURA staff has been discussing a potential ownership transition with IURA
lessee Precision Filters, Inc., which has now been placed on hold for a while. Staff also expects
one of the Downtown Ithaca Alliance (DIA)’s “Race for the Space” participants to possibly apply for
IURA loan assistance.
IURA EDC Meeting Minutes
January 9, 2018
Page 6 of 9
Proulx remarked he would like a future agenda to include a continuation of the Committee’s
discussion of how to more effectively package and promote IURA loans.
3. Remote Meeting Participation by Committee Members ― Discussion
Proulx explained that he asked that Committee members be given the opportunity to discuss
remotely participating in meetings, if they choose, when they happen to be traveling. Bohn
replied that as a public benefit corporation the IURA is governed by New York State open meeting
laws, which appear to include very few exceptions to the requirement to have a quorum of
physically present board/committee members. He would certainly be willing to investigate the
issue further. The City Attorney’s Office may also know of legal opinions that would clarify the
exact legal requirements.
Bohn responded that another option to ensure future quorums would be to recruit more IURA
Committee members. The Mayor has the flexibility to increase the size of IURA Committees.
Seven Committee members, for example, may be a reasonable number.
VI. Other Business
1. CDBG Relocation Assistance Policy
Harrick moved, seconded by Ackerman:
CDBG Optional Relocation Assistance Policy
WHEREAS, CDBG funds may be used for relocation payments and assistance to displaced
persons, including:
Individuals;
Families;
Businesses;
Non‐profit organizations; and
Farms,
where required under section 570.606 of the regulations, and
WHEREAS, CDBG funds may be used for optional relocation payments and assistance to the
above entities displaced by an activity that is not subject to the requirements of section
570.606, which may include temporary relocation assistance or payments at levels higher than
those required, and
WHEREAS, the CDBG grantee may make such optional relocation assistance only upon the
basis of a written determination that such payments and assistance are appropriate and only if
the grantee adopts a written policy available to the public setting forth the relocation
payments and assistance it elects to provide, and
WHEREAS, the written policy must also provide for equal payments and assistance within each
class of displaces, and
IURA EDC Meeting Minutes
January 9, 2018
Page 7 of 9
WHEREAS, at their January 9, 2018 meeting, the IURA Economic Development Committee
reviewed this matter and recommends the following; now, therefore, be it
RESOLVED, that the IURA hereby adopts the CDBG Optional Relocation Assistance Policy,
dated January 9, 2017.
Carried Unanimously 4‐0
CDBG Optional Relocation Assistance Policy
Ithaca Urban Renewal Agency
§570.606 of Community Development Block Grant (CDBG) regulations require a grantee to adopt a
written policy setting forth any optional relocation payments and assistance it elects to provide
and provide for equal payments and assistance within each class of displacees. Such optional
relocation assistance does not impact required relocation assistance required under §570.606.
CDBG funds may be used for optional relocation payments and assistance to displaced “persons”
in the following classes:
Individuals,
Families,
Businesses,
non‐profit organizations, and
farms.
The IURA hereby establishes the following guidelines for providing optional relocation payments
to displaced individuals, families, businesses, non‐profit organizations, and farms displaced by a
CDBG‐eligible activity:
1. Eligible Activity – Relocation activities must comply with the national objectives of the
CDBG program by satisfying the low/moderate income persons benefit test, either based
on the re‐use of the property (the displacing project) or the income of the recipients of
relocation assistance.
2. Assistance is Discretionary – Available CDBG funds are insufficient to meet all funding
requests. The IURA reserves the right to approve or deny any request for optional
relocation assistance at its sole discretion.
3. Duration of Assistance ‐ Assistance shall be limited to temporary relocation assistance only.
Assistance shall generally be limited to no more than 18 months unless the IURA extends
the duration based on a determination that an extension is reasonable and appropriate.
IURA EDC Meeting Minutes
January 9, 2018
Page 8 of 9
4. Eligible Expenses ‐ Eligible expenses are those relocation expenses authorized under the
Uniform Relocation Act (49 CFR part 24) and further described in HUD Handbook 1378, as
amended. In general eligible relocation expenses include actual reasonable out‐of‐pocket
expenses incurred in connection with the temporary relocation. For residential
relocations, such eligible costs include the cost of moving to and from temporary quarters
and the increase in monthly rent and utility costs. For non‐residential relocations, such
eligible expenses include moving costs, reestablishment expenses, and the increase in
monthly rent and utility costs.
5. Form of Assistance – The following classes of displacees shall be eligible for grant
assistance to reimburse eligible expenses:
involuntarily displaced individuals,
Involuntarily displaced families,
Involuntarily displaced businesses owned by low/moderate income persons, and
Involuntarily displaced farms owned by low/moderate income persons.
Relocation assistance to all other classes of displacees shall be provided in the form of a
loan for projected eligible relocation expenses.
6. Each displaced person or entity within a class shall be treated equally regarding optional
relocation assistance.
7. Reasonable and appropriate – The relocation assistance provided shall be determined to
be reasonable and appropriate.
2. Restore NY Grant Application Report
Bohn announced that the City submitted its $1M Restore New York Round 5 grant application,
which includes four properties at 121‐123 W. State Street and 108‐114 W. Green Street
(collectively known as the “100s West” project); and 310 W. State Street. He also noted that
Restore New York Round 4 grant recipient, PPM Homes, recently determined it could not build the
originally proposed two stories of housing for its 413‐415 W. Seneca Street project, since the
subsurface conditions would not support an overbuild. The new proposal to reconstruct the
building should meet virtually all the original project goals.
3. Green Street Garage Redevelopment ― RFP Report
Bohn noted the deadline for submission of proposals to redevelop the Green Street Parking
Garage was extended by 30 days, to February 23, 2018, to allow developers sufficient time to
generate complete proposals.
Proulx noted the Committee agreed to use its March 13, 2018 meeting to present the proposals to
the public and solicit public comments. He suggested IURA Board members may also want to
participate in the meeting (as well as other stakeholders, like Common Council, the Downtown
Ithaca Alliance, and community groups).
IURA EDC Meeting Minutes
January 9, 2018
Page 9 of 9
4. NYS Consolidated Funding Application (CFA) Awards Report
Bohn reported that several CFA projects were funded in Tompkins County, including the Tompkins
County Heritage Cultural Visitor Center, the Cornell Engineering and Physical Sciences Incubator
Plus, the Finger Lakes Land Trust, and the Kitchen Theatre Company.
5. IURA Loans, Grants, & Leases Financial Summary: November 2017
Bohn reported all loan repayments are on schedule (except e2e Materials, as anticipated). The
State Theatre was originally past due one month, but it is now current. Diane’s Downtown Auto
was also one month late. All IURA leases are current. 2017 projects have now been added to the
Grants Summary.
6. Staff Report
Bohn encouraged Committee members to review the 2018 Action Plan Schedule.
Bohn noted the Contracts Monitor drafted an IURA loan program brochure, which can serve as a
starting point to develop more effective marketing materials for IURA loans.
Ackerman suggested making the introductory language on the brochure simpler and ‘snappier’.
Harrick proposed reducing and simplifying the brochure, so it fits onto a postcard‐sized mailer.
Dylla recommended asking the City Chamberlain’s Office to include IURA loan program
information in the tax or utility bills it mails out.
Proulx suggested asking the City’s incoming Deputy Director for Economic Development Tom
Knipe to participate in an upcoming Committee meeting. Bohn indicated he would invite him.
VIII. Adjournment
The meeting was adjourned by consensus at 4:58 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.