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Home My WebLink AboutMN-IURAGOV-2018-04-27Adopted on: 7/20/18 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY Governance Committee (GC) 8:30 AM, Friday, April 27, 2018 Third Floor Conference Room, City Hall, Ithaca, NY Present: Eric Rosario, Chairperson; Susan Cummings; John Gutenberger Excused: David Whitmore; Kathy Schlather, Vice‐Chairperson Vacancy: None 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: February 16, 2018 Gutenberger moved, seconded by Cummings, to approve the February 16, 2018 meeting minutes, with two minor modifications. Carried Unanimously 3‐0 V. Old Business A. Review of IURA Financials: March 2018 Bohn reported the grant summary shows all projects progressing as anticipated and spending their funds, except the GIAC Wading Pool Project and Spencer Road Sidewalk Project, which are moving forward, but not as quickly as anticipated. Unfortunately, the IURA is operating under a HUD‐ imposed June 1, 2018 deadline to spend a significant amount of its CDBG funds (including Program Income). Both the GIAC Wading Pool Project and Spencer Road Sidewalk Project have been bid out, but will likely not produce any significant IURA expenditures by the deadline. Ithaca Urban Renewal Agency IURA GC Minutes April 27, 2018 Page 2 of 5 Cummings asked if those two projects would qualify for an exemption from the spend‐down ratio requirement, due to factors beyond the IURA’s reasonable control. Bohn replied the IURA could probably make a reasonably good case, but he would much rather not be forced to take that approach, if any alternatives exist. He added another reason the IURA is behind with its spend‐ down ratio is due to its not having received its 2017 funding from HUD until November 2017, at least a month later than it should have, due to Congressional inaction on the Federal budget. Although IURA staff does have a plan in place to meet the HUD deadline, it has created significant difficulty. Bohn reported the IURA just designated its e2e Materials, Inc. loan as uncollectible, since the company never succeeded in commercializing its technology and it has now ceased operations. The company is liquidating its machinery/equipment, but the IURA does not anticipate that will produce much, if any, return for it. Cummings suggested when IURA loan recipients dispose of their assets in the future, it would be helpful if that could be advertised to local companies and organizations, so they could potentially benefit. Bohn reported all other loan repayments are current. All lease payments are also now current. Bohn then explained that the “Summary Balance Sheet” was recently created by IURA staff, to serve as a functioning balance sheet to show IURA auditors. IURA auditors have historically treated the IURA as a small part of the City and their reports did not make a great deal of sense for the IURA’s own purposes. B. CDBG Timely Expenditure Report Bohn noted the meeting agenda packet includes the HUD letter, “Community Development Block Grant (CDBG) Program Funds Expenditure Deadline.” The letter states: “A grantee is considered to be in compliance if, 60 days prior to the end of its program year, there is no more than 1.5 times its annual grant remaining in the line‐of credit adjusted for program income.” IURA staff has been tallying its pending CDBG expenditures and reallocated its administrative spending to draw from its CDBG funds. The current projection is that the IURA has reduced its deficit to $75,000. Some additional CDBG funding request vouchers may also be received over the next month. Furthermore, Bohn met with INHS about a potential Program Income loan to expand its affordable housing. INHS indicated it is working on a project involving rehabilitation of 6 affordable housing properties, which would remain affordable for 30 years. INHS has already incurred $160,000 in design‐related and other costs, which would be an eligible use of CDBG funds. C. 2018 Draft Action Plan Report Bohn reported the Draft 2018 Action Plan was adopted by the IURA yesterday. Since the 2018 Federal budget included more money than last year for both the CDBG and HOME programs, the IURA should not be receiving less money than projected this year. Adopted on: 7/20/18 Adopted on: 7/20/18 Regarding the City’s South Aurora Street Sidewalk project, Cummings suggested asking the Town of Ithaca to lower its speed limit on Aurora Street, which remains 40/mph all the way to the City of Ithaca limit. Bohn replied he could mention it to Fernando de Aragón, from the Ithaca‐Tompkins County Transportation Council (ITCTC). Cummings asked if there is any project/program in the 2018 Action Plan that IURA staff would particularly like to monitor. Bohn replied the Food Entrepreneurship Program remains somewhat of an unknown quantity. It is not yet entirely clear how successful it will be. By this time next year, that should be more apparent. VI. New Business A. NYS CDBG Program Income Policy Change ― Discussion Bohn noted the IURA recently received a letter from New York State (“Policy Change to CDBG Program Income Guidelines”). The City/IURA participated in the CDBG Small Cities Program in 2000, 2001, and 2003, after which it was designated by HUD as an entitlement community. Over that period of time, the City/IURA implemented several projects, one of which was a loan for the Hilton Garden Inn project, which has since accumulated $525,000 in principal and interest. The State wants the IURA to identify any Program Income it received from the CDBG Small Cities Program by May 31, 2018 ― and commit any unused Program Income by March 31, 2019, or return it to the State. Any subsequent Program Income of $35,000 or more would also need to be returned to the state. IURA staff has already had several discussions on how to proceed. The funds would not have to be spent by March 31, 2019, but they would need to be formally committed under contract. IURA staff will approach each IURA Committee to determine the best use of funds. One suggestion was to fund more of the Spencer Road Sidewalks Project and GIAC Wading Pool Project, which have both gone through the development process, have been spending money, and are eligible public facilities projects. The funds could also be invested in an affordable housing project in the form of a grant. Similarly, the new Aurora Street Sidewalk Project could be funded. Another suggestion was to renovate the Center Ithaca food court and atrium. The funds could be employed for any project that would otherwise be eligible under the Small Cities Program (i.e., anything except Public Services). IURA staff would also likely approach the owners of the Hilton Garden Inn to renegotiate its loan repayments to fall under the $35,000 threshold. Cummings suggested funding a local dredging project, since the Southwest Area will inevitably flood again at some point. For example, portions of Six Mile Creek (near the South‐of‐the‐Creek and Southside neighborhoods) are in dire need of dredging and other maintenance (e.g., creek walls collapsing). Bohn replied that would be worth investigating. B. 2017 Financial Audit Report Bohn reported that the annual audit was clean, with no findings or concerns. It will be referred to the Audit Committee for adoption. IURA GC Minutes April 27, 2018 Page 2 of 5 VII. Other Business A. 2018 IURA Strategic Planning Report Bohn explained IURA staff has not made much progress with this agenda item, since it has been so busy developing the 2018 Action Plan. B. IURA & Common Council Actions of Interest to Committee Report None. C. Staff Report Bohn reported that IURA voted to reopen the Green Street Garage Development RFP. The City is also actively looking at its Community Investment Incentive Tax Abatement Program (CIITAP), including expanding it to the waterfront and possibly requiring inclusion of affordable housing element in all projects. VIII. Adjournment The meeting was adjourned by consensus at 9:52 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.