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Home My WebLink AboutMN-IURAED-2020-08-18Approved: 9/15/20 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY Economic Development Committee (EDC) 3:30 P.M., Tuesday, August 18, 2020 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 Engineering Jared Hutter, Aptitude Development, LLC I. Call to Order Chair Proulx called the meeting to order at 3:32 P.M. II. Agenda Additions/Deletions None. III. Review of Any Public Comments Received None. IV. Review of Meeting Minutes: June 16, 2020 Dylla moved, seconded by Ackerman, to approve the minutes, with no modifications. Carried: 3‐0 Abstained: Hamilton V. Green Street Garage Redevelopment Urban Renewal Project A. Eastern Section of Project Site: Rothschild Building (Ithaca Properties, LLC) ― │ Revision #1 to IURA‐ Approved Disposition & Development Agreement (DDA) Bohn explained that at its last meeting the Committee recommended adoption of the DDA, which the IURA Board subsequently endorsed. Since that time, the developer submitted its own comments and suggested changes to the DDA, primarily regarding the “XII. Prevailing Wages on Parking Construction” section. After the IURA attorney reviewed the proposed changes, Bohn developed a revised redlined version of the document, addressing the developer’s concerns. (The IURA attorney also suggested a few changes to clarify the language in the document.) IURA EDC Meeting Minutes August 18, 2020 Page 2 of 7 Bohn added the developer also recently initiated discussions with the Industrial Development Agency (IDA) about obtaining financial incentives for the project. The IDA’s newly adopted Workforce Housing Policy for multi‐family rental housing projects requires its applicants to either: (1) make a one‐time payment (“payment‐in‐lieu”) to the Tompkins County Community Housing Development Fund (CHDF) of $5,000 multiplied by the total number of units; or (2) commit to a 20% minimum set‐aside of housing units reserved for households earning ≤80% of Area Median Income. For a project of this size (200 units), the payment‐in‐lieu would amount to $1M. The developer has already committed to setting aside 10% of the units in the project for affordable housing, but the new IDA requirement would essentially obligate the developer to pay another $500,000 to the CHDF, if it chooses not to set aside a total 20% of the units. Proulx suggested the Committee discuss the substantive issues associated with the DDA, beginning with the distribution of housing units, and then review the redlined version of the document. No objections were raised. Hutter remarked the distribution of units is not an unresolvable issue from the developer’s perspective. On the other hand, the developer does have significant concerns with the additional required payment to the CHDF, especially since it emerged so late in the process. The developer recognizes that the original ideal set‐aside goal was 20%, but the additional required payment is excessive and could potentially stall the project. Given that there will be 200+ affordable housing units next door in the Vecino project, the developer does not understand how ±10 additional affordable housing units in the downtown area should be a critical issue. The developer would like the IURA to reconsider the issue. Bohn asked what the developer’s proposal is, as it relates to the percentage of affordable housing units. Hutter replied the developer committed to 10%, which satisfies the original minimum threshold established by the IURA, distributed evenly throughout the project. Proulx observed the developer’s concerns really stem from the IDA’s separate new requirement, which is not something the IURA has the authority to alter. Hutter replied it would nonetheless be helpful, if the IURA expressed support for the developer’s position. Bohn noted once the developer applies to the IDA, the application would then go through a brief City review process to endorse the project. The City’s standards for endorsing a project are minimal (e.g., height, density, valuation). The City does not negotiate incentive packages with the IDA and has no decision‐making ability to waive an IDA requirement. Rimland remarked he spoke with Tompkins County Legislator Martha Robertson, who indicated the IDA makes its decisions on case‐by‐case basis, by evaluating the merits and components of a given project (e.g., public benefits). The fact that the developers would be constructing a parking garage, for example, could conceivably be viewed by the IDA as enough of a public benefit to justify waiving the additional requirement. The developers would like additional support from the City/IURA in order to make its case. IURA EDC Meeting Minutes August 18, 2020 Page 3 of 7 Proulx noted the public benefit from the construction of the parking garage is already clear from the DDA; all the project components are incorporated within it. Rimland responded the IDA should hear that from public officials, rather than merely read it in the DDA. At this time, the developer is not certain it could construct the parking garage, as well as include both the enhanced energy‐efficiency and affordable housing components, if it is required to pay the additional $500,000. He suggested tabling the issue for several weeks, so the developer can further negotiate with the IDA. Ackerman suggested the developer consult with the IDA about other possible changes to the project’s requirements, which could financially compensate the developer for the IDA’s new Workforce Housing Policy requirement. Proulx agreed with Ackerman’s proposal. Rimland replied he cannot necessarily identify what that would entail, but he certainly agrees in principle to that approach. Bohn observed there is no immediate need for the Committee to approve the revised DDA at this meeting. B. Western & Center SecƟons of Project Site: Asteri (Vecino Group NY, LLC) ― Update Bohn reported the project has been making good progress in its review by the Planning and Development Board. The recent lawsuit against the City by the Harold’s Square developer, asking for more separation between the two projects’ residential towers, will need to be resolved. Both developers are currently negotiating about a potential settlement to the lawsuit. VI. Other/New/Old Business A. IURA Grants, Loans, & Lease Payment Report: July 2020 Bohn reported all HUD Entitlement Program grants are progressing well. All loan repayments are current, except the Finger Lakes School of Massage, as previously reported. Bohn reported all lease payments are current, as of today. He received an inquiry from the Ithaca Farmers Market about a possible discount or waiver on its rent, since it has suffered from reduced income and retail traffic. (continued on next page) IURA EDC Meeting Minutes August 18, 2020 Page 4 of 7 B. Staff Report Bohn reported on the following items: Summary Report of IURA Response to COVID‐19 Breathe Ithaca, LLC & 15 Steps │ Kitchen Store Loan Application  The Committee should expect to review a new ~$80,000 loan application for a project that would acquire the 15 Steps business in Center Ithaca and establish a new housewares/cooking store (Home Cooking Ithaca, LLC), retaining 2 full‐time equivalent (FTE) jobs and creating 1 FTE position. IURA EDC Meeting Minutes August 18, 2020 Page 5 of 7 Public Auction of NYS DOT Waterfront Site Anchor Storefront Recovery Loan Program (https://www.ithacanhs.org/anchorstorefront)  The program provides low‐cost economic development loans of between $8,000 and $50,000 to key commercial storefront businesses in the City, including restaurants and retail businesses, to assist with recovery from the impacts of the COVID‐19 crisis. It is a collaborative effort of economic development agencies in Ithaca and Tompkins County, including the City of Ithaca, DIA, Tompkins Chamber, and New York Small Business Development Center. The Community Foundation of Tompkins County facilitated private financial support, while INHS is servicing the loans. IURA EDC Meeting Minutes August 18, 2020 Page 6 of 7 SEEDing Economic Development in Tompkins County Business Assistance Program  A collaboration of Alternatives Federal Credit Union (AFCU) and NYS Small Business Development Center, the program provides loans to micro‐ and mid‐sized businesses, paired with intensive training and technical assistance, targeted to entrepreneurs from under‐represented communities in the financial sector. Industrial Development Agency (IDA) Workforce Housing Policy IURA EDC Meeting Minutes August 18, 2020 Page 7 of 7 Inlet Island Urban Renewal Project Site (new interested developer)  A new developer has expressed interest in acquiring/developing the site. The original preferred developer was designated in 2006 and still retains that designation, but never submitted a proposed project for consideration that was approved. Restore NY  New York State Empire State Development (ESD) finally approved the Grant Disbursement Agreement for the $1,000,000 Downtown West Revitalization grant for two projects on State Street and Green Street. VII. Adjournment The meeting was adjourned by consensus at 4:41 P.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.