HomeMy WebLinkAboutMN-IURAED-2020-11-10Approved: X/X/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, November 10, 2020
Present: Chris Proulx, Chair; Leslie Ackerman; Charles Hamilton
Excused: Doug Dylla, Vice‐Chair
Vacancies: 2
Staff: Nels Bohn; Charles Pyott
Guests: Jeffrey Rimland, Ithaca Properties, LLC
James Trasher, CHA Engineering
Jared Hutter, Aptitude Development, LLC
Lincoln Morse, Ithaca Waterworks/Waterfront Alchemy, LLC
Rick Manzardo, Vecino Group New York, LLC
Bruce Adib‐Yazdi, Vecino Group New York, LLC
Craig Modisher, STREAM Collaborative Architecture + Landscape Architecture, DPC
I. Call to Order
Chair Proulx called the meeting to order at 3:30 P.M.
II. Agenda Additions/Deletions
Proulx suggested discussing potential candidates to add a Committee member. No objections were raised.
III. Public Comments (3‐min. max.)
LINCOLN MORSE, Ithaca Waterworks/Waterfront Alchemy, LLC, remarked he submitted another proposed
project for Inlet Island oriented towards leisure, tourism, waterfront public access, including a five‐story
110‐room hotel. He solicited comments from the City’s Economic Development Working Group, received
feedback, and subsequently revised the plan. He hopes he can present the plan at the next EDC meeting.
IV. Review of Meeting Minutes: September 15, 2020
Ackerman moved, seconded by Hamilton, to approve the minutes, with no modifications.
Carried Unanimously: 3‐0
IURA EDC Meeting Minutes
November 10, 2020
Page 2 of 9
V. Green Street Garage Redevelopment Urban Renewal Project
A. Western & Center Sections of Project Site: Asteri (Vecino Group NY, LLC) ― Amended Disposition &
Development Agreement (DDA)
Nels explained that the DDA was approved by the IURA last year. In response to concerns expressed by
the City of Ithaca Planning and Development Board and an adjacent property owner, the project was
revised to increase separation distances between neighboring residential towers, resulting in a decrease of
36 housing units, which has subsequently received Site Plan Approval. The change in the number of
housing units and other revisions requires an amendment to the DDA, for eventual endorsement by
Common Council. Vecino’s November 4, 2020 letter to the IURA enumerates the revisions in detail.
Adib‐Yazdi noted the reduction in the number of units is the most significant change to the project.
Ackerman noted the original DDA listed 217 units with the conference center. The amended version lists
181 units with the conference center, but still lists 273 units without the conference center.
Manzardo responded it would be approximately 225‐235 units without the conference center. Adib‐Yazdi
added he will calculate the exact number of units and provide it to Bohn.
Proulx observed the following section, which states “if a conference center financing plan to be not viable by
1/23/20 as mutually agreed by IURA and Vecino,” should also probably be changed.
Proulx suggested changing the language to: “if a conference center financing plan ultimately proves to not be
viable and mutually agreed by IURA and Vecino.” No objections were raised.
Ackerman asked why the number of parking spaces has decreased, while the fees have increased. Bohn
replied the number of parking spaces decreased only slightly, compared to the original rough projection. The
cost issue is driven by the fact that the cast‐in‐place concrete is more expensive than pre‐cast concrete.
Proulx observed the mix of unit types has changed. Bohn replied it did change a little, because of the smaller
size of the building, as well as the results of a market study and financing negotiations with New York State.
Hamilton moved, seconded by Ackerman:
Amended Disposition & Development Agreement ―
West & Center Sections of Green Street Garage Mixed‐Use Urban Renewal Project
WHEREAS, on August 29, 2019, the IURA conditionally approved a Disposition and Development
Agreement (DDA) with the Vecino Group New York, LLC (Developer) for the West and Center
Sections of the Green Street Garage Mixed‐Use Urban Renewal Project, subject to Environmental
Review and Common Council approval, and
IURA EDC Meeting Minutes
November 10, 2020
Page 3 of 9
WHEREAS, on April 11, 2019, the Ithaca Urban Renewal Agency and the Developer entered into an
Exclusive Negotiation Agreement (ENA) to define a mutually agreed upon urban renewal project and
resolve feasibility issues to implement the project, including a time line for gaining Common Council
approval of the DDA, and
WHEREAS, in response to concerns expressed by the City of Ithaca Planning and Development Board
and an adjacent property owner, the project was revised to increase separation distances between
neighboring residential towers resulting in a decrease of 36 housing units, which has subsequently
received site plan approval, and
WHEREAS, a change in the number of housing units in the project, and other clarifications, requires
an amendment to the DDA, and WHEREAS, the ENA established a 45‐day period from the date from
completion of environmental review for the project to gain Common Council approval, and
WHEREAS, the project completed environmental review on September 22, 2020 thereby requiring
Common Council approval by November 5, 2020, and
WHEREAS, the IURA Economic Development Committee considered these matters at their November
10, 2020 meeting and recommend the following actions; now, therefore, be it
RESOLVED, that the IURA hereby approves an amended Disposition and Development Agreement
(Agreement) with Vecino Group New York, LLC for the West and Center Sections of the Green Street
Garage Mixed‐Use Urban Renewal Project, dated November 5, 2020, subject to Common Council
approval, and be it further
RESOLVED, that the IURA hereby approves an amendment to the Exclusive Negotiation Agreement
with Vecino Group New York, LLC to extend the date to gain Common Council approval of the DDA to
February 6, 2020, and be it further
RESOLVED, that the IURA hereby authorizes and directs the IURA Director of Community
Development, subject to review by IURA legal counsel, to submit the amended agreements to the
Vecino Group of New York, LLC for their execution, and be it further
RESOLVED, the agreement shall be amended to incorporate recommendations of IURA legal counsel
or any amendments requested by Developer’s legal counsel that are acceptable to IURA legal
counsel.
Carried Unanimously: 3‐0
IURA EDC Meeting Minutes
November 10, 2020
Page 4 of 9
B. Eastern SecƟon of Project Site: Rothschild Building (Ithaca ProperƟes, LLC) ― Amended Disposition &
Development Agreement (DDA)
Bohn explained the framework for the DDA is very similar to the prior one. There have been a number of
conversations between the IURA and the developers. It is Bohn’s understanding this version is acceptable
to them. One clause in the resolution has not been incorporated into the DDA, clarifying that the living
wage requirement does not apply to existing or future tenants on the project site, like commercial retail
tenants.
Hutter confirmed the development team is in agreement with the substance of the DDA.
Hamilton moved, seconded by Ackerman:
Amended Disposition & Development Agreement ―
East Section of Green Street Garage Mixed‐Use Urban Renewal Project
WHEREAS, on June 27, 2019, the Ithaca Urban Renewal Agency designated Ithaca Properties, LLC
(Ithaca Properties) as the preferred developer, and qualified and eligible sponsor pursuant to
Section 507 of General Municipal Law, to potentially acquire the eastern portion of Tax Parcel #70.‐
4‐5.2, located at 120 E. Green Street, Ithaca, NY, for the purpose of undertaking an urban renewal
project to develop an in‐fill, mixed‐use project, and
WHEREAS, Developer proposes to purchase an approximately 192’ x 119’ property at the eastern
section of the Green Street parking garage site located at 120 East Green Street, Ithaca, NY
(“Project Site”) to undertake an urban renewal project, subject to Common Council approval, and
WHEREAS, on December 23, 2019, the IURA endorsed the Developer’s proposed urban renewal
project program that includes reconstruction of two public parking decks and nine to ten levels of
rental housing of which at least 10% of the units shall be occupied and affordable to households
earning up to 80% of Area Median Income; and
WHEREAS, on June 25, 2020, the IURA conditionally approved a Disposition and Development
Agreement (DDA), dated June 16, 2020, with Ithaca Properties, LLC for the East section of the
Green Street Garage Mixed‐Use Urban Renewal Project subject to the following contingencies:
• Completion of legal review by IURA legal counsel
• Execution of the agreement by Ithaca Properties, LLC or submission of a counteroffer
• Completion of environmental review
• Approval of the DDA by Common Council, and
WHEREAS, Ithaca Properties, LLC requested several changes to the agreement and a time extension
to provide for consultation with the Tompkins County Industrial Development Agency regarding
their recently adopted workforce housing policy, and
WHEREAS, the project has completed environmental review, and
WHEREAS, IURA legal counsel completed legal review of the agreement, and
IURA EDC Meeting Minutes
November 10, 2020
Page 5 of 9
WHEREAS, an amended DDA, dated August 10, 2020, was prepared by IURA staff to address issues
raised by Ithaca Properties, LLC and IURA legal counsel, and
WHEREAS, Ithaca Properties, LLC has confirmed its intent to provide 10% of the housing units in the
project to be leased at Below Market Rates, and
WHEREAS, Ithaca Properties, LLC has reviewed the proposed amended DDA, dated August 10,
2020, and indicated conceptual acceptance of the major terms, and
WHEREAS, at their November 10, 2020 meeting, the IURA Economic Development Council
reviewed this matter and recommends the following action; now, therefore, be it
RESOLVED, that the IURA hereby conditionally approves the amended Disposition and
Development Agreement (DDA) with Ithaca Properties, LLC for the East section of the Green Street
Garage Mixed‐Use Urban Renewal Project, dated August 10, 2020, subject to Common Council
approval, and be it further
RESOLVED, that the DDA be further amended to clarify that the living wage requirement applies to
workers at the project site employed by Ithaca Properties LLC or a contractors hired by Ithaca
Properties, LLC, such as a residential property management firm, and does not apply to existing or
future tenants at the project site such as commercial retail tenants, and be it further
RESOLVED, that the IURA hereby authorizes and directs the IURA Director of Community
Development, subject to review by IURA legal counsel, to submit the Agreement to Ithaca
Properties, LLC for their execution or counteroffer, and be it further
RESOLVED, should Developer’s counteroffer consist of amendments that do not materially alter the
IURA‐approved DDA in the opinion of the IURA Chair, such requested amendments or similar
amendments shall be incorporated into the DDA, and be it further
RESOLVED, should Developer’s counteroffer consist of amendments that materially alter the IURA‐
approved DDA in the opinion of the IURA Chair, the IURA shall consider and vote on requested
amendments, and be it further,
RESOLVED, the DDA shall be amended to incorporate recommendations of IURA legal counsel or
any amendments requested by Developer’s legal counsel that are acceptable to IURA legal counsel,
and be it further
RESOLVED, that the IURA Chair, subject to Common Council approval and IURA legal counsel
review, is authorized to execute the Disposition and Development Agreement upon satisfaction of
all conditions.
Carried Unanimously: 3‐0
IURA EDC Meeting Minutes
November 10, 2020
Page 6 of 9
VI. Inlet Island Urban Renewal Project: Concept Plan for Urban Renewal Project │ Finger Lakes
Development, LLC
Nels explained the IURA designated Finger Lakes Development, LLC in 2007 as the project sponsor. A DDA
was developed, which Common Council ultimately chose not to endorse. At the time, the developer
indicated it would submit a revised project proposal; however, the Great Recession halted that effort. The
developer has now proposed a new project and is seeking feedback from the Committee. No formal
action is needed at this time.
Proulx stressed it would be ideal if the IURA and the developer consulted with Common Council in
advance, before the project moves too far forward, to increase the likelihood of the project’s success.
Trasher presented a brief overview of the proposed project:
mixed‐use project would complement existing restaurant, marina, and residential uses on Inlet Island
current site is existing parking lot and residual vacant land
project would acquire approximately 109,000 square feet of land from IURA/City and 9,000 square feet
from NYS DEC
project would seek City abandonment of Old Taughannock Blvd.
portions of site include contamination from prior uses, requiring remediation
project would include approximately 90 new apartment units (studio, 1‐ & 2‐bedrooms)
20% of housing units would be leased to households earning up to 80% Area Median Income (AMI)
deed restrictions would maintain at least 80 parking spaces for use by customers of other businesses
on Inlet Island
IURA EDC Meeting Minutes
November 10, 2020
Page 7 of 9
IURA EDC Meeting Minutes
November 10, 2020
Page 8 of 9
Trasher indicated the developer is seeking to be re‐anointed as the preferred developer to facilitate
further negotiations and appraisals, before the developer spends a significant amount of money on project
design and architecture.
Flash noted the major change since the original 2007 proposal is the recent development of the City
Harbor project and the elimination of Johnson Boatyard and Marina, which the developer has had to adapt
itself to, in order to continue operating a functioning marina/boatyard.
Proulx observed a lot of land appears to be dedicated to boat storage. He wondered how the project
would impact the developer’s ability to continue operating the boatyard at full capacity. Flash replied they
designed the proposal to accommodate those operations. Haul‐out operations would take place in
Building A, which is where most of that type of activity would take place, with the business and public‐
facing activities in Building F. Building G would house boat storage beneath it.
Flash asked if the IURA could re‐affirm the developer’s preferred developer status, to enable it to develop
easements with other properties.
Bohn cautioned it would be premature to re‐affirm the developer’s preferred developer status without
further consideration of all the potential issues associated with the project, including recently enacted
waterfront zoning regulations. Flash indicated he sees no reason that needs to be done today.
Hamilton observed it would be wonderful to have additional housing, but public access to the site would
also be very important and would likely be raised by members of the public.
Flash responded that public access would include pedestrian access on the flood control channel side.
There would also be access for boat customers. There is, however, no immediately identifiable access for
things like kayaks.
Hamilton asked if the developer considered including a grocery or convenience store on the site. Flash
replied Wegmans is reasonably close, as well as the new GreenStar store. The developer would like to
focus on creating a green/sustainability‐oriented retail store.
Proulx asked about the heights of Buildings B and C. Trasher replied the buildings would comprise four
levels with 9‐10 foot ceilings, for a maximum height of 60 feet (roughly the same height as the Island Health
& Fitness building).
Proulx inquired about current parking utilization, underlying demand, and vehicular flow, in proximity to
the site. Trasher replied there is not much surplus parking, except for at the boatyard. In calculating the
proposed parking capacity, the developer started by using a standard 1½ parking spaces per housing unit;
however, no formal parking study has been conducted.
IURA EDC Meeting Minutes
November 10, 2020
Page 9 of 9
VII. Other Business
A. IURA Financials Report: October 2020
Bohn reported all HUD Entitlement Program projects are generally progressing well. HUD CDBG‐CV funds
have been approved/disbursed and appear on the Grants Summary Report, as well as 2020 Action Plan
projects, including significant funding for the Economic Development Loan Fund (ED‐LF). All borrowers are
current (including a number of COVID‐19‐related payment deferrals), except the Finger Lakes School of
Massage, as previously reported. Bohn has asked the IURA attorney to identify ways to recoup at least a
portion of that outstanding debt.
Bohn reported all lease payments are current, as of today, including a number of COVID‐19‐related rental
discounts/deferrals (e.g., Cinemapolis).
B. Staff Report
Bohn reported the Home Cooking loan closing should be taking place soon and a handful of potential loan
applications may be on the horizon.
C. New Committee Member Candidate Search
Proulx asked Committee members to refer any potential Committee candidates to Bohn for the Mayor’s
eventual consideration. (There is no City residency requirement.)
Hamilton recalled, over the Summer, he proposed Associate Professor Shaianne Osterreich (Ithaca College)
as a candidate. She appeared to be interested.
Ackerman suggested Kathleen Clark, Business Development Manager at Alternatives Federal Credit Union
(AFCU), as well as Gladys Brangman, who has partnered with AFCU.
VIII. Adjournment
The meeting was adjourned by consensus at 5:00 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.