HomeMy WebLinkAboutMN-IURAED-2018-11-13Approved: 2/19/19
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, November 13, 2018
Common Council Chambers, City Hall, Ithaca, NY
Present: Chris Proulx, Chair; Doug Dylla, Vice‐Chair; Leslie Ackerman
Excused: Heather Harrick; Charles Hamilton
Vacancies: 1
Staff: Nels Bohn; Charles Pyott
Guests: Todd Fox, Visum Development Group, LLC
City Staff: Tom Knipe, Deputy Director for Economic Development
I. Call to Order
Chair Proulx called the meeting to order at 3:34 P.M.
II. Agenda Additions/Deletions
None.
III. Review of Meeting Minutes: September 14, 2018
Dylla moved, seconded by Ackerman, to approve the September 14, 2018 minutes, with no
modifications.
Carried Unanimously 3‐0.
IV. New Business
A. Restore NY4 Seneca/Corn St. Buildings RehabilitaƟon Project ― Visum Development Group
Request for Assignment of Restore NY4 Grant Funds for Modified 413‐415 W. Seneca St. Project
Bohn explained Visum Development Group (“Visum”) is requesting a modification to the original
Restore NY4 project proposed by PPM Homes, LLC to address some feasibility issues. The original
project included rehabilitation of both 109 N. Corn Street and 413‐415 W. Seneca Street. Visum
would like approval for a modified project strictly to reconstruct 413‐415 W. Seneca Street
(excluding 105 N. Corn Street entirely). Bohn noted the funding award deadline for beginning
work on the site is fast approaching (February 9, 2019), which is a concern. The project is very
similar to the original project, although the project cost is lower. It also provides more housing
than the original project.
IURA EDC Meeting Minutes
November 13, 2018
Page 2 of 6
Ackerman asked what the State’s potentially greatest concern would be with the modified project.
Bohn replied: that it no longer encompasses the two originally proposed properties; it represents
a lower total financial investment; and it does not leverage any other grants/programs.
Dylla asked if the project would include affordable housing. Bohn replied no rent structure has yet
been identified for the project. Restore NY does not impose a mandatory affordable housing
requirement.
Proulx observed it seems like a good project for the city. He believes the Committee should keep
it moving forward. He wondered if there was anything that could be done to strengthen it.
Fox replied Visum Development Group has not finished exploring potential NYSERDA (New York
State Energy Research and Development Authority) funding, since they wanted to fully understand
the project, before inserting any additional components. They are still working on finalizing the
financing model. He added they may be able to include some 2‐bedroom units.
Dylla asked if the project would include any parking. Bohn replied, no, although that has been
investigated. Zoning regulations do not require parking on the site, in this case, but he believes it
may possibly need a rear‐yard zoning variance.
Fox replied his architect led him to understand it would be entirely code‐compliant.
Bohn remarked it is a positive project: new construction on an in‐fill site, so it would definitely be
a benefit to the community. The architecture is also superior to the original project.
Dylla asked if Visum has experience with this kind of rental/commercial project. Fox replied, yes.
Visum is confident in the project’s marketability.
Dylla moved, seconded by Ackerman:
Approve Modification to Restore NY4 Project ― Seneca/Corn Street Buildings RehabilitaƟon
WHEREAS, Visum Development Group, LLC (Visum) requests to modify their Restore NY4 project
originally proposed by PPM Homes, LLC to address feasibility issues, and
WHEREAS, PPM Homes, LLC (PPM) has agreed to convey ownership of 413‐15 W. Seneca Street
to Visum, and
WHEREAS, on February 9, 2017, the Empire State Development awarded a $500,000 Restore
NY4 grant to the City of Ithaca for the Seneca/Corn Street Buildings Rehabilitation project
sponsored by PPM Homes, LLC, and
IURA EDC Meeting Minutes
November 13, 2018
Page 3 of 6
WHEREAS, Visum has secured legal site control of the Restore NY4 project sites owned by PPM,
and
WHEREAS, the funded project included rehabilitation of the existing buildings located at 109 N.
Corn Street and rehabilitation and vertical addition to the building located at 413‐415 W. Seneca
Street, and
WHEREAS, subsurface and structural investigation at 413‐415 W. Seneca Street revealed the
need for expensive structural modifications that rendered the original project economically
infeasible, and
WHEREAS, Visum requests approval for a modified Restore NY4 project for reconstruction at
413‐415 W. Seneca and exclusion of the 105 N. Corn Street building from the Restore NY4
project, and
WHEREAS, the modified project proposes to demolish the existing building at 413‐415 W.
Seneca Street and reconstruct an 10,272 sq. ft., three‐story building with 15% commercial space
and 10 residential rental units, and
WHEREAS, two ground‐floor commercial spaces of the live/work units will front on W. Seneca
Street, and
WHEREAS, the following table compares the proposed modified project to the original project:
RESTORE NY4 SCORING
CRITERIA Original Project Modified Project
Commercial Investment $4,094,000 $2,321,000
Revitalize Urban Center Rehabilitate 2 vacant
buildings
Reconstruct 1 vacant building
Improve Local Housing 6 units (12 beds) 10 units (16 beds)
Leverage PACE financing YES NO
Leverage NYSERDA YES NO
Architecturally consistent with
nearby properties
YES YES
Revitalize Urban Center YES YES
WHEREAS, the modified project achieves significant public benefits and similar Restore NY4
scoring if the project would leverage other State and Federal programs such as NYSERDA or
PACE (Property Assessed Clean Energy) financing, and
WHEREAS, a modification to the Restore NY4 project requires approval by the Common Council
and Empire State Development, and
IURA EDC Meeting Minutes
November 13, 2018
Page 4 of 6
WHEREAS, the IURA administers the Restore NY4 award on behalf of the City, and
WHEREAS, the IURA Economic Development Committee has compared the proposed modified
Restore NY4 proposal against the original proposal for Restore NY4 scoring and community
benefits, now, therefore, be it
RESOLVED, that the IURA Economic Development Committee hereby recommends that the IURA
support the modified Restore NY4 proposal submitted by Visum Development Group, LLC for
413‐415 W. Seneca Street, subject to the following conditions:
1. Submission of a site plan showing the building footprint on the parcel;
2. Basic zoning analysis documenting how the project compares to dimensional zoning
requirements;
3. Submission of a satisfactory pro forma demonstrating financial need for grant assistance;
4. Documentation of the availability of project financing; and
5. Incorporation of one or more State of Federal programs into the project (which is a Restore NY
scoring criterion) or explanation why such programs are not feasible; and
6. 3rd party confirmation of the reasonableness of the proposed hard copy construction cost at
$132/sq. ft., and be it further
RESOLVED, this resolution shall supersede any prior resolution regarding project modification of
the Restore NY4 project.
Carried Unanimously 3‐0
B. Discussion of City Economic Development Policy with Tom Knipe, Deputy Director for
Economic Development (City of Ithaca)
Bohn indicated Knipe is developing an economic development policy workplan, which he would
like to discuss with the Committee and solicit feedback/suggestions.
Knipe explained he has begun the process of drafting the City’s economic development policy
workplan, which would include reviewing model economic development strategies from other
cities, creating a steering committee, identifying stakeholders, and providing opportunities for
public input. Other elements and characteristics of the policy would likely include:
Data‐driven focus and database
Identifying and soliciting outside funding
Outreach/marketing and business retention initiatives
Needs analysis informed by various local organizations/agencies
Acting as responsive partner for local businesses and developers
Prioritization of top initiatives vs. lower‐level activities
Comprehensive ‘Start Your Own Business’ guide, covering financing, licensing, City processes, etc.
Newsletter
Contact list
IURA EDC Meeting Minutes
November 13, 2018
Page 5 of 6
Proulx noted he would be interested to see data on the city’s proportion of local vs. regional vs.
national businesses, which would help the City make its economy as locally focused and
sustainable as possible.
Ackerman suggested developing a database of local commercial spaces, perhaps even enrolling
local realtors in that process.
Knipe responded he did meet with the City’s Geographic Information Systems (GIS) director and
determined it would be feasible to crowdsource a future GIS‐based database.
Proulx remarked it would also be productive to focus on Collegetown, since commercial
development in that neighborhood has been poor. Bohn noted Collegetown would be eligible for
IURA funding.
Knipe responded he has already had some conversations about establishing a Business
Improvement District (BID) in Collegetown (e.g., determining what Collegetown needs, the BID’s
responsibilities, conducting a feasibility analysis).
V. Other Business
A. Emmy’s Organics & Cherry St. Road Extension Project ― Report
Bohn reported the initial analysis by Emmy’s Organics’ engineer suggested soil conditions may
require specialized foundations for the building, parking lot, and public roadway that could make the
project financially infeasible. The results of the analysis were surprising, since other adjacent
properties have never had issues with soil quality. As a result, the IURA Board approved procuring
engineering services from another company to conduct an independent review of existing
geotechnical and engineering reports.
B. Green St. Garage Redevelopment Project ― Report
Bohn reported there will be a special joint meeting of the IURA Board and Common Council this
evening to seek sufficient input from Common Council on the two top‐ranked proposals (Vecino
Group and Visum Development Group/Newman Development Group), so the IURA has enough
information to select the preferred developer and enter into the 90‐day Exclusive Negotiation
Agreement (ENA) process.
C. Allocation of NYS Small Cities CDBG Program Income ― Report
Bohn explained the IURA participated in the Small Cities CDBG program in 2000, 2001, and 2003.
It funded numerous programs over that Ɵme, only one of which produced Program Income ― a
$665,000 loan to the Hilton Garden Hotel, which has been steadily repaid and has accumulated
more than $500,000 in unused funds for the IURA. The IURA will either need to spend that money
by the March 31, 2019 deadline, or return it to the State. Funds would not have to be spent by
March 31, 2019, but they would need to be formally committed under contract. The IURA Board
recently voted to fund the City’s Aurora Street Sidewalk Extension Project with the Program
Income, which was approved by Common Council.
IURA EDC Meeting Minutes
November 13, 2018
Page 6 of 6
D. IURA Loan & Lease Payments Report: September 2018
Bohn reported most grant activities are progressing on schedule. All IURA loan repayments are
current, except The State Theatre and Diane’s Downtown Auto. All lease payments are current.
E. Staff Report
None.
VI. Adjournment
The meeting was adjourned by consensus at 5:00 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.