HomeMy WebLinkAboutMN-IURAED-2019-12-17 Approved: 2/11/20
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, December 17, 2019
Common Council Chambers, City Hall, Ithaca, NY
Present: Chris Proulx, Chair; Doug Dylla, Vice‐Chair; Leslie Ackerman; Charles Hamilton
Excused: None
Vacancies: 2
Staff: Nels Bohn; Charles Pyott
Guests: Jeffrey Rimland, Ithaca Properties, LLC
James Trasher, CHA Design/Construction Solutions
I. Call to Order
Chair Proulx called the meeting to order at 3:30 P.M.
II. Agenda Additions/Deletions
None.
III. Review of Meeting Minutes: October 15, 2019
Dylla moved, seconded by Hamilton, to approve the October 15, 2019 minutes, with no modifications.
Carried Unanimously: 4‐0
IV. Green Street Garage Redevelopment Urban Renewal Project
A. Western & Center Sections of Project Site: Asteri (Vecino Group of New York, LLC) ― Project Update
VERSION 1 ― ORIGINAL CONCEPT: 11 stories, 218 affordable units, 2‐story 49,000 SF conference center,
350 parking spaces (excludes east section of garage)
VERSION 2.1 ― EXCLUDES CONFERENCE CENTER: 8 stories, 173 affordable units, 1‐story 9,000 SF
commercial (light‐gauge steel construction like City Centre)
VERSION 2.2 ― EXCLUDES CONFERENCE CENTER: 12 stories, 273 affordable units, 1‐story 9,000 SF
commercial (structural steel construction like Harold’s Square)
Bohn explained the project proposal was brought before the Board of Public Works (BPW) to determine if
it was acceptable to it. BPW recommended it to Common Council, with the caveat that a dedicated fund
be established for maintenance and repair of the parking garage. Common Council subsequently voted
unanimously in favor of approving the Disposition and Development Agreement (DDA), as part of a
preliminary non‐binding determination.
IURA EDC Meeting Minutes
December 17, 2019
Bohn noted the majority of Common Council members approved of the ‘City Hall Plaza’ concept described
at the last Committee meeting. The project will eventually return to Common Council for a Public Hearing
and a final decision, after Environmental Review and Site Plan Review.
Bohn explained the developer will now submit its proposal to the Planning & Development Board in
January 2020. Construction is expected to begin in May 2021, if approved. One remaining question is
whether the conference center would be part of the project, which will depend on its financial feasibility,
including New York State funding and a financial commitment from the hospitality sector. Bohn expects
the hospitality sector could fund the conference center at $1.8M/year, while a New York State grant of $5‐
7M will be necessary to close the remaining financial gap. The IURA may know as soon as December 19,
2019 about the status of some of the State’s funding. Bohn added both the City and County would also
need to provide some level of financial guarantee for the conference center, in the event of any shortfalls.
Bohn noted the following Housing Profile for the two proposed projects was included in the meeting
materials:
IURA EDC Meeting Minutes
December 17, 2019
B. Eastern Section of Project Site: Rothschild Building (Ithaca Properties, LLC) ― Determination of
Project Acceptability
Bohn indicated the Committee needs to formally determine if the proposed project is acceptable, in terms of
all the major elements.
Trasher walked through an overhead presentation of the proposed project, including the images/plans
below.
(continued on next page)
IURA EDC Meeting Minutes December 17, 2019
IURA EDC Meeting Minutes December 17, 2019
IURA EDC Meeting Minutes December 17, 2019
Trasher briefly described some of the project components itemized in his December 10, 2019 letter:
13‐story mixed‐use building with frontage along The Commons and East Green Street
approximately 260 apartments, including studio and 1‐ & 2‐bedroom configurations
179 parking spaces
10% of proposed housing units would be affordable at 80% Area Median Income (AMI), depending on
Community Investment Incentive Tax Abatement Program (CIITAP) financing
ground floor of existing Rothschild Building would be renovated to include amenity spaces (e.g., club
room, community spaces, fitness center).
interior pedestrian connection from new building lobby at East Green Street to The Commons (serving
as the building’s front entrance)
Bohn noted the Industrial Development Agency (IDA) indicated it does not fully support the approach
being used to increase affordable housing, since: (1) IDA lacks the resources and expertise to monitor and
enforce a 30‐year affordability term; and (2) IDA does not believe the amount of local subsidy, exceeding
$200,000/unit over 30 years, is a cost‐effective means to expand the affordable housing supply.
Proulx asked which retail businesses would be displaced during construction and what kind of financing
would be available to assist them. Trasher replied he would need to consult with Jared Hutter, Aptitude
Development, LLC, in terms of the financing question, but the two displaced businesses would be Sunny
Days and Home Green Home.
Dylla expressed significant concern with the 13‐story height, which seems particularly tall for downtown
Ithaca. Trasher replied that height meets Zoning Code requirements. Rimland added there would only be
10 stories of actual housing units.
Proulx remarked the project proposal has certainly improved since the last time the Committee saw it.
While he appreciates Dylla’s concerns about building height, the project would undoubtedly attract many
more people downtown and generate a significant economic impact.
Ackerman noted that one item in the proposed resolution indicates the number of affordable units would
only be distributed between efficiencies and 1‐bedroom units. She would much prefer to see them
distributed across a wider range of unit sizes.
Rimland replied the amount of financial support the IDA would need to provide to make the larger units
affordable would be substantially more than currently proposed or anticipated, although he could
certainly explore that as a goal, subject to securing additional financial incentives.
Hamilton moved, seconded by Ackerman:
IURA Endorsement of Project Definition of Urban Renewal Project
at Eastern Section of Green Street Garage Project Site
WHEREAS, on June 27, 2019, the IURA designated Ithaca Properties, LLC as a “qualified and eligible
sponsor” to potentially acquire air rights at the eastern section of the Green Street Garage site at 120
E. Green Street, Ithaca, NY, to undertake an urban renewal project, and
IURA EDC Meeting Minutes
December 17, 2019
WHEREAS, the IURA seeks urban renewal projects that improve the social, physical and economic
social characteristics of the project site and expand access to quality affordable housing, and
WHEREAS, upon review of the conceptual plans for the proposed urban renewal project, the IURA
identified the following issues to be satisfactorily addressed prior to approving an urban renewal
project:
A. Sales price of project site (air rights);
B. Proposed lease terms to City for rebuilt parking decks;
C. Preliminary project schedule;
D. Projected net increase in property tax revenues generated by the project;
E. Compliance with Tompkins County Industrial Development Agency (IDA) implementation of the
City Community Investment Incentive Tax Abatement Program (CIITAP) affordable housing policy
if CIITAP incentives are sought for the project (20% affordable units at 75% AMI required if
sufficient incentives are provided to retain financial feasibility of the project);
F. Compliance with street‐level active use requirement;
G. Coordination with Marriott Hotel ownership regarding interim parking until newly constructed
eastern decks are available for public parking;
H. Approach by Marriott Hotel ownership to waive/exercise their option to purchase the site if the
City conveys or decommissions the eastern parking decks; and
WHEREAS, the 12/10/19 revised project plans and on‐going negotiation with the City and other
stakeholders satisfactorily address all the above issues, except the Sponsor’s proposed workforce
housing commitment has yet to be reviewed by the IURA, and
WHEREAS, the IDA has not adopted a revised CIITAP policy to implement the City’s recommended
CIITAP affordable housing policy, leaving the Sponsor in an uncertain position regarding IDA incentives
available to support inclusion of below‐market rate housing, and
WHEREAS, the IDA has raised the following concerns with the City’s CIITAP recommendation:
the IDA lacks resources and expertise to monitor and enforce a 30‐year affordability term; and
the amount of local subsidy exceeding $200,000/unit over 30 years is not a cost‐effective means to
expand the supply of affordable housing, and
WHEREAS, the Sponsor proposes to provide a minimum of 10% of the housing units to be leased at
rents affordable to a household earning 80% of Area Median Income (AMI), provided such workforce
units are distributed pro rata among efficiency and one‐bedroom units, and
WHEREAS, the Sponsor further conceptually agrees to include additional below‐market rate housing
affordable to households earning 80% AMI in the project, up to but not to exceed 20% of the total
housing units, provided the project remains financially feasible, and
IURA EDC Meeting Minutes
December 17, 2019
WHEREAS, the Sponsor has indicated that its primary metrics to determine financial feasibility are
satisfying the lender’s required debt service coverage ratio and the cash‐on‐cash return to investors;
and
WHEREAS, the Sponsor has prepared a draft pro forma based on provision of 10% below‐market rate
units at 80% AMI and receipt of projected IDA incentives, and
WHEREAS, the Sponsor has indicated the draft pro forma for the project (with 10% workforce
housing) is financially feasible at an average annual cash‐on‐cash return of 8.0% over the first 8 years
of occupancy, and
WHEREAS, the IURA Economic Development Committee reviewed this matter and recommend the
following; now, therefore, be it
RESOLVED, that the IURA endorses Ithaca Properties, LLC’s proposed $90 million urban renewal
project for the eastern section of the Green Street Garage Urban Renewal Project site as generally
described in the 12/10/19 submission subject to the following clarifications and conditions:
Project Program: Below grade private parking spaces (47+/‐ spaces)
Reconstruction of public parking decks (137+/‐ spaces)
Street level actives uses (retail, commercial, lobby)
9‐10 upper levels of rental housing (230‐260+/‐ units of rental
housing)
Workforce Housing Goal: 20% of total housing units shall be occupied and affordable to
households earning up to 80% of AMI, subject to sufficient IDA
and other incentives to retain overall project financial
feasibility with an average cash‐on‐cash return of at least 8%.
Workforce housing units shall be distributed pro rata across all
unit sizes
Workforce housing units shall be similar in size to market rate
units
Workforce housing units shall share the lobby with market rate
units
Regulatory period: 30 years.
Minimum Workforce Housing
Commitment:
10% of total housing units shall be occupied and affordable to
households earning up to 80% of AMI.
Workforce housing units may be distributed pro rata to
efficiencies and one‐bedroom unit categories.
Workforce housing units shall be similar in size to market rate
units
Workforce housing units shall share the lobby with market rate
IURA EDC Meeting Minutes
December 17, 2019
units
Regulatory period: 30 years.
Construction Impact
Mitigation
Sponsor shall submit a plan satisfactory to the IURA to address any
business involuntarily displaced by the project.
And be it further,
RESOLVED, the IURA shall prepare a proposed Disposition and Development Agreement (DDA) upon
completion of negotiations between the Sponsor and the City/IURA regarding the purchase
agreement aspects of the DDA, including but not limited to terms for City lease of reconstructed
public parking, and be it further
RESOLVED, the IURA agrees to monitor and enforce required workforce housing in the project
subject to receipt of an annual fee from the Sponsor to cover costs incurred.
Carried: 3‐1
Opposed: Dylla
V. New Business
A. Cayuga Green Urban Renewal Project: Request for Various Assignments & Consents to Facilitate Sale
of The Lofts on Six Mile Creek & Cayuga Place Projects
Bohn explained the current owner is seeking to sell The Lofts and Cayuga Place. It has asked the IURA and
the City to assign the parking connector between The Lofts and the parking garage, as well as agree to
some other assignments and corrective legal instruments. IURA loans would be repaid in full at the time of
sale. Bohn does not see any substantive reasons to deny the request.
Hamilton moved, seconded by Dylla:
Cayuga Green Urban Renewal Project ― Conveyance of Various Private Sector Components
WHEREAS, the Cayuga Green public‐private project includes the following major components:
235 S. Cayuga Street – a 679 public parking garage with 23,000 sq. ft. of ground floor
commercial space;
131‐135 E. Green Street – Cayuga Place with 68 apartments and 20,000 square feet of
commercial space;
120 E. Green Street – an 11,000 sq. ft. 5‐screen cinema (Cinemapolis);
217 S. Cayuga Street – The Lofts at Six Mile Creek, a 46 unit residential building with pedestrian
connector to the Cayuga garage;
The 600 linear foot public Six Mile Creek Walk; and
IURA EDC Meeting Minutes
December 17, 2019
WHEREAS, the IURA’s private sector partners, Cayuga Green Apartments, LLC, successor‐in‐interest to
Cayuga Green, LLC, and The Lofts on Six Mile Creek, LLC, have entered into purchase and sale
agreements to convey 131‐135 E. Green Street (Cayuga Place) and 217 S. Cayuga Street (The Lofts on
Six Mile Creek) to HH Cayuga Place Property, LLC and HH Cayuga Lofts Property, LLC, respectively, and
WHEREAS, the IURA received requests for various consents, assignments, corrective instruments and
approvals to facilitate the proposed conveyance, and
WHEREAS, outstanding IURA loan balances totaling approximately $880,000 issued to The Lofts on Six
Mile Creek, LLC and Cayuga Green, LLC will be paid in full upon conveyance, and
WHEREAS, the proposed conveyance will not impact operation or ownership the Cayuga public
parking garage, the Six Mile Creek Walkway, Cinemapolis, or the ground floor tenants at the Cayuga
Garage, and
WHEREAS, the Economic Development Committee reviewed this matter at their December 17, 2019
meeting and recommend the following; now, therefore, be it
RESOLVED, the Ithaca Urban Renewal Agency hereby approves the consents, assignments, corrective
instruments and agreements requested by Cayuga Green Apartments, LLC, successor‐in‐interest to
Cayuga Green, LLC, and The Lofts on Six Mile Creek, LLC, necessary to facilitate conveyance of the
Lofts on Six Mile Creek and Cayuga Place projects, including but not limited to the following:
RE: Lofts on Six Mile Creek, 217 S. Cayuga Street
1. Consent to the assignment and applicable estoppel agreement of the Walkway Agreement from
The Lofts on Six Mile Creek, LLC to HH Cayuga Lofts Property, LLC;
2. Consent to the assignment and applicable estoppel agreement of the Parking Agreement from The
Lofts on Six Mile Creek, LLC to HH Cayuga Lofts Property, LLC;
3. Consent to the assignment of the Payment in Lieu of Tax Agreement from The Lofts on Six Mile
Creek, LLC to HH Cayuga Lofts Property, LLC;
RE: Cayuga Place, 131‐135 E. Green Street
4. Consent to the assignment of the Payment in Lieu of Tax Agreement from Cayuga Green
Apartments, LLC successor‐in‐interest to Cayuga Green, LLC, to HH Cayuga Place Property, LLC;
5. Amendments, filings, releases, and conveyances to exclude Parcel F of the Cayuga Green project
(the small parcel containing the former helix entrance/exit to the Green Street parking garage)
from various deeds and/or lease, sublease, leasehold mortgage and assignment of rents
agreements associated with 2003 Cayuga Green tax‐exempt revenue bond financing, and be it
further
RESOLVED, the IURA Chairperson is hereby authorized, subject to advice of IURA legal counsel, to
execute any and all necessary documents to implement this resolution.
Carried Unanimously: 4‐0
IURA EDC Meeting Minutes
December 17, 2019
B. Cherry Street Industrial Park: Release Deed Restrictions
Bohn explained, originally, in the 1980s, no Site Plan Review, Environmental Review, or Stormwater
Management standards were in place; and Zoning Requirements for the Cherry Street Industrial Park were
significantly different than exist today. At that time, the IURA established certain lease covenants to
ensure a minimal degree of quality for the properties it owned. Today, however, Site Plan Review,
Environmental Review, and Stormwater Management standards are all well‐established, and the City
recently rezoned the Waterfront district, so the lease covenants are no longer necessary.
Dylla moved, seconded by Hamilton:
Release of IURA Cherry Street Industrial Park Deed Restrictions
WHEREAS, the IURA imposed certain lease and deed restrictions on all parcels in the Cherry Street
Industrial Park to regulate certain architectural, dimensional and site plan standards to ensure a
minimum quality of development in the industrial park, and
WHEREAS, the industrial park was developed in the 1980s prior to adoption of site plan review and
waterfront design guidelines currently in place, and
WHEREAS, the deed restrictions reinforce various zoning requirements in effect in 1980, and
WHEREAS, in 2017, the City adopted revised zoning for the waterfront zone, including the Cherry
Street Industrial Park, that differ significantly from prior zoning, and
WHEREAS, the deed restrictions restrict Cherry Street Industrial Park properties from taking
advantage of revised land use regulations governing the waterfront area, and
WHEREAS, the City now has a robust site plan review process in place to manage the issues
contained in the deed restrictions, and
WHEREAS, the lease and deed restrictions apply to parcels located at the following addresses:
230 Cherry St. (tax parcel #96.‐2‐1.5)
232 Cherry St. (tax parcel #96.‐2‐1.4)
233 Cherry St. (tax parcel #96.‐2‐1.8)
236 Cherry St. (tax parcel #96.‐2‐1.3)
239 Cherry St. (tax parcel #96.‐2‐1.9)
240 Cherry St. (tax parcel #96.‐2‐1.1)
241 Cherry St. (tax parcel #96.‐2‐1.22)
245 Cherry St. (tax parcel #96.‐2‐1.21)
247 Cherry St. (tax parcel #96.‐2‐1.23), and
IURA EDC Meeting Minutes
December 17, 2019
WHEREAS, the IURA Economic Development Committee reviewed this matter at its December 17,
2019 meeting and recommends the following action; now, therefore, be it
RESOLVED, that the IURA release the Development Restrictions, Conditions, and Covenants for all
parcels in the Cherry Street Industrial Park; and be it further
RESOLVED, that the IURA Chairperson is hereby authorized, subject to review by IURA legal counsel,
to execute any and all documents to implement this resolution, including but not limited to a Release
which will be recorded in the Tompkins County Clerk’s Office and cross‐referenced to all parcels
subject to the Restrictions.
Carried Unanimously: 4‐0
VI. Old/Other Business
A. IURA Loan & Lease Payment Report: November 2019
Bohn reported virtually all HUD Entitlement Program projects are progressing well.
Bohn reported all loan repayments are current, except for Finger Lakes School of Massage, due to the
school’s recent bankruptcy and management crisis. One of the two principals recently declared
bankruptcy, but the IURA is pursuing the other principal (who is actually more likely to repay).
Bohn reported all lease payments are current.
B. Loan Pipeline Report
Bohn reported a kitchen‐supply and home‐goods store remains interested in applying for an IURA loan,
but postponed its opening to Spring 2020. The IURA should expect to receive an application relatively
shortly.
C. Staff Report
Bohn reported the IURA is beginning its annual HUD Entitlement Program Action Plan process, so the
Committee should expect to review and evaluate several economic development proposals in March 2020.
Bohn noted he continues to work on identifying candidates to serve on the Committee.
VII. Adjournment
The meeting was adjourned by consensus at 5:00 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.