HomeMy WebLinkAboutMN-IURAED-2018-06-14Approved: 8/21/18
108 E. Green St.
Ithaca, NY 14850
(607) 274-6565
MEETING MINUTES
ITHACA URBAN RENEWAL AGENCY
Economic Development Committee (EDC)
3:30 PM, Thursday, June 14, 2018
Common Council Chambers, City Hall, Ithaca, NY
Present: Chris Proulx, Chair; Doug Dylla, Vice‐Chair; Leslie Ackerman; Charles Hamilton
Excused: Heather Harrick
Vacancies: 1
Staff: Nels Bohn; Charles Pyott
Guests: Samantha Abrams, President, Emmy’s Organics, Inc.
Ian Gaffney, Vice‐President, Emmy’s Organics, Inc.
I. Call to Order
Chair Proulx called the meeting to order at 3:31 P.M.
II. Agenda Additions/Deletions
None.
III. Review of Meeting Minutes: April 17, 2018
Ackerman moved, seconded by Dylla, to approve the April 17, 2018 minutes, with one minor
modification.
Carried Unanimously 4‐0.
IV. Public Comment (3‐minute max. per person)
None.
V. New Business
A. Green Street Garage Redevelopment Urban Renewal Project: Review of Development Team
Qualifications
1. Newman Development Group, LLC & Visum Development Group, LLC
2. Vecino Group New York, LLC
3. L Enterprises, LLC & McGuire Development Company, LLC
Bohn explained that designating a qualified sponsor means that particular applicant will become
eligible to continue with the RFP application process; however, that does not guarantee the
applicant would ultimately be selected, or have a role in the project. It simply means the applicant
has the capacity, experience, and qualifications to implement the project.
IURA EDC Meeting Minutes
June 14, 2018
Page 2 of 19
Bohn noted all three applicants appear to be highly qualified in terms of their skill‐sets,
development teams, experience, and past projects; however, most of them did not provide very
detailed or meaningful financial information. As a result, each resolution contains a clause stating
that additional financial information will be needed by the IURA.
Dylla asked what role Ithaca Neighborhood Housing Services (INHS) would be playing in the two
applications it is included in. Bohn replied that INHS is keeping its options open. It is a little less
clear what role INHS would play in the Vecino Group New York, LLC project.
Ackerman asked if Bohn observed any elements in the applications that were particularly
deficient. Bohn replied, no. Every applicant team possesses significant experience; and has
worked successfully with New York State and the City of Ithaca Building Division.
Hamilton moved, seconded by Ackerman:
Designate Newman‐Visum as a Qualified & Eligible Sponsor for the
Green Street Garage Site Urban Renewal Project
WHEREAS, on April 26, 2018, the IURA re‐opened the RFP for the Green Street Garage Urban
Renewal Project for 90 days to receive additional proposals, and
WHEREAS, interested developers were required to submit a pre‐application including
qualifications, but not proposals, by June 1, 2018 to be considered for designation as a
Qualified and Eligible Sponsor (Sponsor) pursuant to section 508 of General Municipal Law,
also known as a preferred developer, and
WHEREAS, qualifications from three additional development teams were received by the
submission deadline, and
WHEREAS, the IURA delegated authority to the Economic Development Committee (EDC) to
determine a development team’s qualifications and capacity to successfully undertake the
urban renewal project, and
WHEREAS, IURA evaluation criteria for a Sponsor include:
Financial status and stability
Legal qualifications to operate in the State of New York and to enter into contracts with
regard to disposition, use and development of land in question
Previous experience in financing, use, development and operations of projects of a similar
nature
Reputation and proof of fair, reputable and ethical business practices and record devoid of
convictions, and
IURA EDC Meeting Minutes
June 14, 2018
Page 3 of 19
WHEREAS, multiple Sponsors may be designated by the IURA though only one Sponsor is
anticipated to be to invited to execute a 90‐day Exclusive Negotiating Agreement for the
purpose of structuring a proposed Disposition and Development Agreement for the project
site, and
WHEREAS, the Newman‐Visum development team includes the following:
Co‐Developers
‐ Newman Development Group, LLC
‐ Visum Development, LLC
Developer Team
‐ Ithaca Neighborhood Housing Services, Inc.
‐ HOLT Architects
‐ Whitham Planning and Design
‐ Carl Walker Engineering
‐ T.G. Miller
‐ Taitem Engineering
‐ Purcell Construction, and
WHEREAS, the EDC reviewed submitted qualifications and compared them to the IURA
Sponsor evaluation criteria; now, therefore, be it
RESOLVED, the IURA Economic Development Committee hereby finds that the Newman‐Visum
development group satisfies IURA sponsor criteria ― including qualifications, capacity and
experience ― to be designated a Sponsor to undertake an urban renewal project to undertake
an in‐fill, mixed‐use project at 120 E. Green Street, Ithaca, NY, subject to satisfaction of the
following condition:
Receipt of requested confidential financial information from each co‐developer and
determination by the EDC Chairperson that such information satisfactorily verifies the co‐
developers possess sufficient financial capacity, and be it further
RESOLVED, that upon satisfaction of the above condition, the IURA hereby designates the
Newman‐Visum development team as a “Qualified and Eligible Sponsor,” pursuant to section
508 of General Municipal Law, eligible to submit a full proposal by July 31, 2018 in response to
the re‐opened RFP for the Green Street Garage Urban Renewal Project.
Carried Unanimously 4‐0
IURA EDC Meeting Minutes
June 14, 2018
Page 4 of 19
Dylla moved, seconded by Ackerman:
Designate Vecino as a Qualified & Eligible Sponsor for the
Green Street Garage Site Urban Renewal Project
WHEREAS, on April 26, 2018, the IURA re‐opened the RFP for the Green Street Garage Urban
Renewal Project for 90 days to receive additional proposals, and
WHEREAS, interested developers were required to submit a pre‐application including
qualifications, but not proposals, by June 1, 2018 to be considered for designation as a
Qualified and Eligible Sponsor (Sponsor) pursuant to section 508 of General Municipal Law,
also known as a preferred developer, and
WHEREAS, qualifications from three additional development teams were received by the
submission deadline, and
WHEREAS, the IURA delegated authority to the Economic Development Committee (EDC) to
determine a development team’s qualifications and capacity to successfully undertake the
urban renewal project, and
WHEREAS, IURA evaluation criteria for a Sponsor include:
Financial status and stability
Legal qualifications to operate in the State of New York and to enter into contracts with
regard to disposition, use and development of land in question
Previous experience in financing, use, development and operations of projects of a similar
nature
Reputation and proof of fair, reputable and ethical business practices and record devoid of
convictions, and
WHEREAS, multiple Sponsors may be designated by the IURA though only one Sponsor is
anticipated to be to invited to execute a 90‐day Exclusive Negotiating Agreement for the
purpose of structuring a proposed Disposition and Development Agreement for the project
site, and
WHEREAS, the Vecino development team includes the following:
Co‐Developers
‐ Vecino Group New York, LLC
‐ Ithaca Neighborhood Housing Services, Inc.
Developer Team
‐ Vecino Design, LLC
‐ Vecino Construction, LLC
‐ INHS, property management, and
IURA EDC Meeting Minutes
June 14, 2018
Page 5 of 19
WHEREAS, the EDC reviewed submitted qualifications and compared them to the IURA
Sponsor evaluation criteria; now, therefore, be it
RESOLVED, the IURA Economic Development Committee hereby finds that the Vecino
development team satisfies IURA sponsor criteria ― including qualifications, capacity and
experience ― to be designated a Sponsor to undertake an urban renewal project to undertake
an in‐fill, mixed‐use project at 120 E. Green Street, Ithaca, NY, subject to satisfaction of the
following condition:
Receipt of requested confidential financial information from Vecino and determination by
the EDC Chairperson that such information satisfactorily verifies the co‐developers possess
sufficient financial capacity, and be it further
RESOLVED, that upon satisfaction of the above condition, the IURA hereby designates the
Vecino Group New York, LLC as a “Qualified and Eligible Sponsor,” pursuant to section 508 of
General Municipal Law, eligible to submit a full proposal by July 31, 2018 in response to the re‐
opened RFP for the Green Street Garage Urban Renewal Project
Carried Unanimously 4‐0
Ackerman moved, seconded by Hamilton:
Designate Harold’s Holdings, LLC as a Qualified & Eligible Sponsor for the
Green Street Garage Site Urban Renewal Project
WHEREAS, on April 26, 2018, the IURA re‐opened the RFP for the Green Street Garage Urban
Renewal Project for 90 days to receive additional proposals, and
WHEREAS, interested developers were required to submit a pre‐application including
qualifications, but not proposals, by June 1, 2018 to be considered for designation as a
Qualified and Eligible Sponsor (Sponsor) pursuant to section 508 of General Municipal Law,
also known as a preferred developer, and
WHEREAS, qualifications from three additional development teams were received by the
submission deadline, and
WHEREAS, the IURA delegated authority to the Economic Development Committee (EDC) to
determine a development team’s qualifications and capacity to successfully undertake the
urban renewal project, and
WHEREAS, IURA evaluation criteria for a Sponsor include:
Financial status and stability
Legal qualifications to operate in the State of New York and to enter into contracts with
regard to disposition, use and development of land in question
IURA EDC Meeting Minutes
June 14, 2018
Page 6 of 19
Previous experience in financing, use, development and operations of projects of a similar
nature
Reputation and proof of fair, reputable and ethical business practices and record devoid of
convictions, and
WHEREAS, multiple Sponsors may be designated by the IURA though only one Sponsor is
anticipated to be to invited to execute a 90‐day Exclusive Negotiating Agreement for the
purpose of structuring a proposed Disposition and Development Agreement for the project
site, and
WHEREAS, the Harold’s Holdings development team includes the following:
Co‐Developers
‐ L Enterprises, LLC
‐ McGuire Development Company, LLC
Developer Team
‐ STREAM Collaborative
‐ Taitem Engineering
‐ John Driscoll, and
WHEREAS, the EDC reviewed submitted qualifications and compared them to the IURA
Sponsor evaluation criteria; now, therefore, be it
RESOLVED, the IURA Economic Development Committee hereby finds that Harold’s Holdings,
LLC satisfies IURA sponsor criteria ― including qualifications, capacity and experience ― to be
designated a Sponsor to undertake an urban renewal project to undertake an in‐fill, mixed‐use
project at 120 E. Green Street, Ithaca, NY, subject to satisfaction of the following condition:
Receipt of requested confidential financial information from each co‐developer and
determination by the EDC Chairperson that such information satisfactorily verifies the co‐
developers possess sufficient financial capacity, and be it further
RESOLVED, that upon satisfaction of the above condition, the IURA hereby designates the
Harold’s Holdings, LLC as a “Qualified and Eligible Sponsor,” pursuant to section 508 of General
Municipal Law, eligible to submit a full proposal by July 31, 2018 in response to the re‐opened
RFP for the Green Street Garage Urban Renewal Project.
Carried Unanimously 4‐0
Dylla asked if the IURA would use a consultant to evaluate the applications. Bohn recommended
the IURA should first review the applications and then decide if it needs to hire a consultant.
IURA EDC Meeting Minutes
June 14, 2018
Page 7 of 19
Proulx remarked that the Committee will be reviewing the applications in depth at its August
meeting, including a public comment period. No formal action will be taken until the September
meeting.
B. Expansion of Cherry Street Industrial Park
1. Emmy’s Organics, Inc. ― RelocaƟon & Expansion, DesignaƟon of Qualified & Eligible Sponsor
& Authorize Disposition & Development Agreement
2. Authorize Cherry St. Road Extension & Subdivision of Land
Bohn explained the IURA acquired the parcel from the City of Ithaca and designated it for an
economic development project. The parcel has 66 feet of frontage. The IURA has explored
options for developing it, in the past, but has always been stymied by the need to construct a road
to the site (which could not be funded with CDBG funds, unless a certain number of jobs have
been created). This a good opportunity to develop the site. Bohn noted the site is constrained in
some respects (e.g., railroad tracks on one side and nearby wetlands, proximity to the Black
Diamond Trail and Flood Control Channel). The project would require Subdivision approval to
enable construction of the public road. Financing the road construction and utilities will be
expensive. The project is a good opportunity to keep a growing employer in the city. It is also
consistent with the City’s Comprehensive Plan, which does not allow residential use on the site. In
order to proceed, the IURA will need to designate it as an urban renewal project and select the
preferred developer, at which point an agreement would be generated and submitted to Common
Council for approval. The project will result in at least 5 new full‐time equivalent (FTE) jobs upon
completion.
Gaffney explained that the company currently operates on Buffalo Street, but it has been bursting
at the seams over the past year, so it needs to expand and believes the Cherry Street site is the
best option. The company would easily add 5 staff persons as a result of the project (possibly as
many as 10).
Abrams added that Emmy’s Organics is in very good financial health, with only modest bank debt.
Also, the company’s CFO has a strong financial background and commercial real estate experience.
Dylla asked if all the production would take place in the new facility. Gaffney responded that is
definitely the goal, although the company may need to maintain a blended approach (e.g.,
products that could not be made at the site or if huge orders need to be filled).
Dylla noted the IURA funds several job training/readiness programs. He asked if Emmy’s Organics
would be open to working with those programs. Gaffney replied, absolutely. Emmy’s Organics
has already worked in the past with the Youth Employment Services (YES) program.
Ackerman asked if Emmy’s Organics can project how long it would be before it outgrows the new
facility. Gaffney replied he anticipates they would most likely be able to remain in the facility
until/through 2020. They are certainly looking to maximize the use of the site.
IURA EDC Meeting Minutes
June 14, 2018
Page 8 of 19
Bohn remarked that the IURA has not yet identified the boundaries of the parcel to be sold. It
would be sold at the appraised value.
Ackerman asked how many acres Emmy’s Organics believes it would need. Gaffney replied they
would like 3 acres, since they will need a loading dock, parking, etc. They planned on spending
$300,000 on purchasing the land.
Bohn indicated the cost of 3 acres would be $285,000. If the project moves forward, the Site Plan
Review application would be submitted to the Planning and Development Board by July 15, 2018.
The Planning Board would then need to approve both the Subdivision and the Site Plan, with final
approval projected to take place in September 2018.
Hamilton asked if the IURA would impose any job‐reporting requirements on the project. Bohn
replied, yes.
Proulx asked how many of Emmy’s Organics current staff are low‐to‐moderate income. Abrams
replied, over half.
Hamilton asked if there would be a living wage requirement associated with the project. Bohn
replied, not formally, but the IURA certainly encourages it. It could also be something the IURA
chooses to negotiate with Emmy’s Organics.
Hamilton asked if the new jobs would be living wage jobs. Gaffney replied that is certainly the goal.
Emmy’s Organics’ current entry level positions are paid $12/hr. The lowest‐paid current employee
is $13, while everyone else is paid $14‐$16/hr.
Hamilton asked how many of the 5 new positions would earn the current $15.11/hr. living wage.
Gaffney replied, all of them. Hamilton asked if Emmy’s Organics would be willing to commit to
paying a living wage for at least 75% of the new positions. Gaffney replied, yes. They would be
comfortable with that figure.
Proulx noted the resolution would need to be amended to tie 3 of the 5 new jobs to the current
living wage.
Ackerman asked how the IURA would ensure Emmy’s Organics is a qualified developer, since it
does not have any experience with large projects. Bohn replied the IURA should evaluate its
qualifications based on its financial health as an operating business, and its profit and loss
statements.
IURA EDC Meeting Minutes
June 14, 2018
Page 9 of 19
Dylla moved, seconded by Ackerman:
Designate Emmy’s Organics, Inc. as a Sponsor & Approve a Disposition and Development
Agreement to Acquire IURA Land at the Cherry Street Industrial Park
WHEREAS, on May 11, 2018, Emmy’s Organics, Inc. (Emmy’s) submitted an application to be
designated as a “qualified and eligible sponsor” (Sponsor) to acquire land located at the end of
Cherry Street, part of an undeveloped six acre parcel of land owned by the IURA (tax map
#100.‐2‐1.21), and
WHEREAS, Emmy’s proposes a $1.4 million project to construct a 10,000 square foot food
manufacturing facility to produce organic/natural cookies and snacks and add an additional 5
full‐time equivalent employees, of which at least 51% will be low‐ and moderate‐income at the
time of hire, and
WHEREAS, Emmy’s started in Ithaca by selling their product at the Ithaca Farmer’s Market and
have grown to employ 19 workers at their current leased operations located at 629 W. Buffalo
Street, Ithaca, and
WHEREAS, Emmy’s seeks to begin operations at an expanded manufacturing facility in
December 2018, and
WHEREAS, Emmy’s is a woman‐owned business, who’s officers are: Samantha Abrams,
President; Ian Gaffney, Vice‐President, and Bill Kelly, Chief Executive Officer, and
WHEREAS, the IURA owns an undeveloped 6‐acre parcel at the end of Cherry Street
appropriate for development for businesses that create job opportunities, and
WHEREAS, extension of the public road into the site is necessary to make efficient use of the
IURA parcel for multiple employment‐based uses, and
WHEREAS, Emmy’s has indicated willingness to acquire 1‐3 acres of land from the IURA at
appraised value, and
WHEREAS, a 2018 appraisal of the Cherry Street Industrial Park expansion area conducted by
Landmark Appraisal Co., estimated the following fair market values at the project site:
One‐acre parcel: $110,000;
Two‐acre parcel: $200,000; and
WHEREAS, both the IURA and Emmy’s have independently contracted with T.G. Miller P.C.,
Civil Engineering & Surveying, to develop a coordinated plan to extend the public road, lay out
a subdivision, and design a 10,000 sq. ft. manufacturing facility with room for expansion, and
IURA EDC Meeting Minutes
June 14, 2018
Page 10 of 19
WHEREAS, expansion of the Cherry St. Industrial park was considered in the Generic
Environmental Impact Statement for the Southwest Master Plan for which a negative
declaration was issued on August 24, 2000 by the lead agency that such expansion would not
result in a significant adverse environmental impact, and
WHEREAS, subsequent environmental review of the subdivision and transfer of surplus land at
Cherry Street to the IURA for industrial park expansion resulted in issuance of a negative
declaration on June 6, 2012 whereby 2.25 acres of property including wetlands and
environmentally sensitive open space was retained by the City and 6.0 acres was transferred
to the IURA, and
WHEREAS, the project site is located within the Urban Renewal Project Boundary Area, and
WHEREAS, pursuant to section 508 of General Municipal Law, the IURA is authorized to
dispose of property to a specific buyer at a negotiated price if such buyer is designated as an
eligible and qualified sponsor (Sponsor), and the sale is approved by Common Council
following a public hearing, and
WHEREAS, a proposed Sponsor is evaluated in accordance with adopted IURA land disposition
procedures that seek to determine if the proposed Sponsor is qualified and capable of fulfilling
the objectives of the property for property disposition, and
WHEREAS, IURA evaluation criteria for Sponsors include:
Financial status and stability
Legal qualification to operate in the State of New York and to enter into contracts with
regard to disposition, use, and development of land in question
Previous experience in the financing, use development and operation of projects of a
similar nature
Reputation and proof of fair, reputable and ethical business practices and a record devoid
of convictions, and
WHEREAS the primary objective of the Urban Renewal Plan (Plan) is to improve the economic,
social and physical characteristics of the project neighborhood, and
WHEREAS, an objective of the Plan is “expansion and diversification of the economic base of
the community to provide the employment opportunities needed by its residents and to
strengthen the tax base,” and
WHEREAS, Emmy’s Organics has submitted confidential financial statements demonstrating
their financial capacity to complete the project and verifying their current employment level,
and
IURA EDC Meeting Minutes
June 14, 2018
Page 11 of 19
WHEREAS, Emmy’s is a certified B Corp. indicating they meet rigorous standards for social and
environmental performance, accountability and transparency, and
WHEREAS, the IURA Economic Development Committee considered this matter at their June
14, 2018 meeting and recommended the following; now, therefore, be it
RESOLVED, that the IURA hereby determines that Emmy’s has satisfactorily demonstrated its
qualifications and capacity to successfully undertake an urban renewal project to acquire land
from the IURA to construct and operate a 10,000 sq. ft. food manufacturing facility, and
therefore designates Emmy’s Organics, Inc. as a “qualified and eligible sponsor” to acquire a
parcel or parcels to be created at the end of Cherry Street (tax map #100.‐2‐1.21), and be it
further
RESOLVED, that IURA hereby finds that the submitted project proposal from Emmy’s Organics,
Inc. to construct a 10,000 sq. ft. food manufacturing facility at the Cherry Street Industrial Park
resulting in creation of at least 5 full‐time equivalent jobs will expand and diversify the
economic base of the community and provide employment opportunities, thereby furthering
the goals and objectives of the Urban Renewal Plan, and be it further
RESOLVED, that the IURA hereby authorizes the IURA Chairperson to approve a Disposition
and Development Agreement to sell property to the Sponsor to undertake an urban renewal
project, that contains the following essential terms:
Seller: Ithaca Urban Renewal Agency
Purchaser: Emmy’s Organics, Inc. (or a legal entity to be formed that is
majority owned by the Samantha Abrams and Ian Gaffney)
Urban Renewal Project: Investment of approximately $1.4 million to construct and
operate an approximately 10,000 square foot food
manufacturing facility for producing organic/natural cookies
and snacks, resulting in job creation.
Project Site: Portion of tax parcel #100.‐2‐1.21 located at the end of
Cherry Street, Ithaca, NY. Exact location, dimensions and
size of the parcel (s) shall be determined by mutual
agreement based on site engineering, subdivision and site
plan approval.
Purchase Price: Fair market value as determined by appraisal.
Job Creation: Creation of at least five (5) full‐time equivalent jobs within
IURA EDC Meeting Minutes
June 14, 2018
Page 12 of 19
two years of project completion. At least 51% of five jobs
must be filled by low‐ and moderate‐income persons
earning no more than 80% of the Area Median Income as
determined by the U.S. Department of Housing & Urban
Development.
Employment & Wage
Reporting:
Quarterly employment and wage reporting shall be
submitted to Seller until job creation goal is satisfied for
two consecutive quarters.
Living Wages: At least three (3) of the new job positions created shall be
paid a 2018 living wage of $15.11/hour (or $13.90/hour
with $2,500/year employer health care contribution) within
12 months of their hire date.
Conditions for Sale: A. Approval of a Cherry Street Expansion subdivision of tax
parcel #100.‐2‐1.21.
B. Authorization by IURA to enter into a contract to
construct the public road extension contained in the
approved subdivision plan
C. Site Plan approval – within 180 days of the date of the
purchase agreement, purchaser submission of proof of
final site plan approval.
D. Project financing – within 270 days of the date of the
purchase agreement, purchaser submission of proof of
financing and equity sufficient to construct the project.
E. Building Permit issuance – within 365 days of date of the
purchase agreement, purchaser submission of proof of
a building permit at least authorizing construction of
the full foundation for the project.
RESOLVED, that pursuant to §507 of General Municipal Law, the proposed Disposition and
Development agreement is subject to approval by the Common Council of the City of Ithaca
following a public hearing, and be it further
RESOLVED, that IURA Chairperson, subject to advice from IURA legal counsel, is hereby
authorized to execute any and all agreements and documents necessary to implement this
resolution pending endorsement by the Common Council.
Carried Unanimously 4‐0
IURA EDC Meeting Minutes
June 14, 2018
Page 13 of 19
Proulx asked Bohn what the cost of the road is estimated to be. Bohn replied an engineering
report by Novelli Engineering in 2000 estimated a 600‐linear‐foot public road with a cul‐de‐sac
would cost approximately $275,000, although this project would not need a 600‐linear‐foot road.
The City of Ithaca Fire Department would also not require a full cul‐de‐sac. The road would not be
inexpensive, so minimizing its length would be to the IURA’s benefit. The IURA could apply the
proceeds of the land sale to the cost of the road. The IURA also has access to $527,000 in Small
Cities CDBG program income, which it could use.
Bohn added the IURA also has approximately $100,000 in its Industrial Parks Fund and it could
conceivably tap into non‐CDBG funds (e.g., for interim financing until proceeds are received).
There has been some discussion about the City’s Department of Public Works contributing to
completing the road.
Hamilton, seconded by Ackerman:
Authorize Subdivision & Road Extension to Expand Cherry Street Industrial Park
WHEREAS, Emmy’s Organics, Inc. seeks to acquire a building site in the Cherry Street Industrial
Park to construct a food manufacturing facility projected to result in the creation of at least
five (5) full‐time jobs, and
WHEREAS, in 2012, the City of Ithaca transferred a 6‐acre parcel of land to the IURA for
expansion of the industrial park, and
WHEREAS, efficient utilization of this land for industrial park for multiple employers will
require subdivision of the land and extension of the public road to create street frontage for
new lots, and
WHEREAS, T.G. Miller, P.C. has been hired to provide surveying and engineering services to
prepare a subdivision plan, schematic design for extension of the road and utilities and
preparation of an opinion of probable construction costs, and further provided an option for
preparation of construction documents, bidding and construction administration to construct
the road extension, and
WHEREAS, a prior engineering report prepared by Novelli Engineering in 2000 estimated a
600‐linear‐foot public road with a cul‐de‐sac would cost approximately $275,000, and
WHEREAS, T.G. Miller has been instructed to investigate approaches to minimize project costs,
including reducing the length of the public roadway and investigating alternative turnaround
designs, and
WHEREAS, all existing lots in the Cherry Street Industrial Park are occupied, and
IURA EDC Meeting Minutes
June 14, 2018
Page 14 of 19
WHEREAS, the project site is located within the Urban Renewal Project Boundary Area, and
WHEREAS, the primary objective of the Urban Renewal Plan is to improve the economic, social
and physical characteristics of the project neighborhood, and
WHEREAS, an objective of the Urban Renewal Plan is “expansion and diversification of the
economic base of the community to provide the employment opportunities needed by its
residents and to strengthen the tax base,” and
WHEREAS, expansion of the Cherry Street Industrial Park is also supported by PlanIthaca, the
City’s Comprehensive Plan, as a means to diversify the economy and retain and grow locally‐
owned businesses, and
WHEREAS, the recent Common Council adopted Waterfront District Land Use Plan designated
the portion of the Cherry Street District located south of Cecil A. Malone Drive for light
industrial and commercial uses and prohibited residential uses, and
WHEREAS, $527,000 in Small Cities CDBG program income managed by the IURA is
administered by the NYS Office of Community Renewal (OCR) that requires all Small Cities
CDBG program income to be committed by March 31, 2019 to eligible CDBG activities or
returned to OCR, and
WHEREAS, up to $35,000 of CDBG funds per job created is eligible for infrastructure
improvements, and
WHEREAS, proceeds from the sale of land at Cherry Street is also eligible to pay for
infrastructure improvement, and
WHEREAS, the approximately $100,000 balance in the Industrial Park account is available to
pay for improvements in the industrial park, and
WHEREAS, the IURA Economic Development Committee considered this matter at their June
14, 2018 meeting and recommended the following; now, therefore, be it
RESOLVED, the IURA hereby finds that expansion of the Cherry Street Industrial Park to include
the 6‐acre undeveloped parcel owned by the IURA (tax map #100.‐2‐1.21) will activate an
underutilized parcel of land to diversify the economy and grow locally‐owned businesses
thereby increasing employment opportunities and furthering the Urban Renewal Plan, and be
further
RESOLVED, that the IURA hereby authorizes the IURA Chairperson to submit a subdivision and
road extension plan to expand the Cherry Street Industrial Park, and be it further
IURA EDC Meeting Minutes
June 14, 2018
Page 15 of 19
RESOLVED, that the IURA Chairperson is further authorized, subject to review by IURA legal
counsel, to execute contracts to design, bid and construct a road extension contained in an
approved subdivision plan, subject to execution of a Disposition and Development Agreement
with Emmy’s Organics, Inc. (or a legal entity to be formed that is majority owned by Samantha
Abrams and/or Ian Gaffney), and be it further
RESOLVED, that funding shall derive from the following sources (projected available funding in
parentheses):
Small Cities CDBG Program Income ($175,000)
Proceeds from sale of land at the Cherry St. Industrial Park ($200,000)
The Industrial Park account ($100,000)
Miscellaneous non‐CDBG funds ($50,000), and be it further
RESOLVED, that the IURA Chairperson is authorized to sign any and all documents to
implement this resolution.
Carried Unanimously 4‐0
VI. Community Loans
A. Urban Core, LLC, 108‐114 W. Green St. ― Request for Loan Subordination (CD‐RLF #42)
Bohn reported the IURA recently received a request to resubordinate the existing $200,000 IURA
loan on the property to a new $450,000 Tompkins Trust Company construction loan, which will
convert to a permanent mortgage upon completion of the Press Bay Court project.
Hamilton moved, seconded by Dylla:
1st Amendment to Loan Agreement with Urban Core, LLC (CD‐RLF #42)
WHEREAS, on May 30, 2018, Urban Core, LLC (Urban Core) submitted a request to subordinate
the existing IURA 2nd mortgage securing a $200,000 loan for the 108‐114 W. Green Street
project to a new Tompkins Trust Company construction loan in the amount of $450,000, which
will convert to a permanent mortgage upon completion of the Press Bay Court project, and
WHEREAS, on August 30, 2017, the IURA issued a $200,000 loan to Urban Core to acquire,
renovate and lease up a mixed use commercial/residential building for multiple tenants
located at 108‐114 W. Green Street (Press Bay Court), and
WHEREAS, subsequently Urban Core LLC has been awarded Main Street and Restore NY grant
funds to expand the project scope for Press Bay Alley and adjacent buildings owned by Urban
Core, and
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June 14, 2018
Page 16 of 19
WHEREAS, such grant funding is provided on a reimbursement basis following project
completion, and
WHEREAS, if the request is granted, the IURA mortgage will be subordinated to mortgages
totaling approximately $1,031,000, and
WHEREAS, standard commercial lending underwriting standards seek a minimum 1.2 Debt
Coverage Ratio (DCR) and a maximum 80% Loan‐to‐Value (LTV) ratio on the collateral, and
WHEREAS, Urban Core has submitted an updated pro forma income statement, including
updated rent rolls, and an appraisal estimating the fair market value of the property following
project completion, and
WHEREAS, these documents indicate that after incorporating the new loan financing the Debt
Coverage Ratio (net operating income/annual debt service) will be 1.34 and the Loan‐to‐Value
ratio will be 74%, thereby satisfying standard commercial loan underwriting standards, and
WHEREAS, Urban Core is current on all IURA loan payments, and
WHEREAS, environmental review for project financing has already been completed, and
WHEREAS, at their June 14, 2018 meeting, the IURA Economic Development Committee
reviewed this matter and recommends the following; now, therefore, be it
RESOLVED, that the IURA hereby approves the request to subordinate its mortgage lien on
108‐114 W. Green Street to facilitate a loan from Tompkins Trust Company not to exceed
$450,000, and be it further,
RESOLVED, that the IURA Chairperson is authorized, subject to review by IURA legal counsel,
any documents necessary to implement this resolution, and be it further
RESOLVED, that any legal costs incurred by the IURA shall be reimbursed by Urban Core, LLC.
Carried Unanimously 4‐0
B. State Theatre of Ithaca, Inc. ― Proposed Concession Expansion Project: Request to Consider
Future Loan Subordination
Bohn noted the IURA recently received a request for loan assistance for a project to expand The
State Theatre’s concessions sales by connecting the theatre with the ticket office building at 105
W. State Street and converting the ticket office to a concessions/café area.
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June 14, 2018
Page 17 of 19
The project would require a $275,000 bank loan in addition to a $100,000 IURA loan. Since the
bank indicated a new loan would require security of a 1st mortgage position on the combined
ticket office/theatre building, the State Theatre is seeking an advisory opinion from the
Committee that it would consider subordinating its 1st mortgage on the theater to the bank.
Hamilton asked what the IURA would get out of the proposal. Bohn replied, 2 new jobs, as well as
a presumably more robust and financially stable local not‐for‐profit theatre.
Hamilton remarked he is not sure what the IURA is really getting much of anything from the
proposal.
Dylla agreed with Hamilton that he would like to see more community benefit associated with the
proposal (e.g., more shows per week).
Hamilton indicated he would be open to the proposal.
Ackerman agreed, as long as the proposal can be adjusted to include more of a community
benefit.
Proulx noted the risk of the café not surviving is probably 50%. He wondered if there would be
sufficient demand in that location, although the success of The Watershed bar proves an active
use is possible.
Ackerman noted the concept for the café needs to be further developed, ideally by someone with
relevant experience.
C. Loan Pipeline Report
Bohn reported D.P. Dough is still developing its business plan and evaluating the resources it will
need relocate to the front of Green Street, into a more visible space.
Proulx remarked it would be helpful if the Committee could meet at some point with the City’s
Deputy Director for Economic Development Tom Knipe.
VI. Old/Other Business
A. Annual Selection of EDC Officers
Ackerman moved, seconded by Hamilton:
Selection of 2018 IURA Economic Development Committee Officers
WHEREAS, IURA By‐laws provide that the committee membership shall elect its own
committee Vice‐Chairperson and nominate a candidate for committee Chairperson for
consideration by the Agency, and
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June 14, 2018
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WHEREAS, per the Bylaws, an Agency member shall fill either the committee Chairperson or
committee Vice‐Chairperson position, and
WHEREAS, officers of each committee serve a one‐year term, but continue to hold office until
their successor is selected or appointed, and
WHEREAS, the current Committee Chairperson and Vice‐Chairpersons are Chris Proulx and
Doug Dylla, respectively, now, therefore be it
RESOLVED, that Chris Proulx be nominated as Chairperson of the IURA Economic Development
Committee, and be it further
RESOLVED, that Doug Dylla be elected as Vice‐Chairperson of the IURA Economic
Development Committee.
Carried Unanimously 4‐0
B. IURA Loan & Lease Payment Report: May 2018
Bohn noted all lease payments are current. All loan repayments are also all now current, except
the State Theatre. He knows it was planning on setting up automated payments. The State
Theatre also has an upcoming balloon payment scheduled for March 2019. Bohn noted the Grants
Summary shows the IURA met its CDBG spend‐down ratio requirements.
C. FY2018 HUD Entitlement Award: Use of Unanticipated CDBG Funds ― Recommendations
Bohn noted the FY2018 HUD award was higher than anticipated (by $43,000), so IURA staff will
reach out to each committee to ask for recommendations for how to use the additional funds.
The Committee may want to re‐examine the funding levels for the economic development
activities.
Hamilton asked if the IURA ever takes equity positions in return for its loans. Bohn replied, not
usually, although the e2e Materials loan did include a stock option.
Hamilton responded the IURA should consider doing something along those lines with Emmy’s
Organics.
D. Restore NY4: Seneca/Corn St. Building Rehabilitation Project ― Status Report
Bohn explained that the project owner still cannot make the project work financially, but he is
open to selling property to INHS which would implement the project as the originally proposed
Restore NY project.
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June 14, 2018
Page 19 of 19
VIII. Adjournment
The meeting was adjourned by consensus at 5:10 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.