HomeMy WebLinkAboutMN-IURAED-2021-03-09Approved: 4/13/21
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, March 9, 2021
Present: Chris Proulx, Chair; Leslie Ackerman; Doug Dylla, Vice‐Chair
Excused: Charlie Hamilton
Vacancies: 2
Staff: Nels Bohn; Charles Pyott; Anisa Mendizabal
Guests: None
I. Call to Order
Chair Proulx called the meeting to order at 3:30 P.M.
II. Agenda Additions/Deletions
None.
III. Public Comments (3‐min. max.)
None.
IV. Review of Meeting Minutes: February 9, 2021
Ackerman moved, seconded by Dylla, to approve the minutes, with no modifications.
Carried Unanimously: 3‐0
V. HUD Entitlement Program
A. Review of 2021 Economic Development Funding Applications Received
Bohn explained the IURA has a total of approximately $1.2M available in HOME Investment Partnerships
Program (HOME) and Community Development Block Grant (CDBG) Program funds to award for projects,
with $1.7M in funding requests, representing approx. 30% more in requests than funding available (and
roughly $100,000 less than could realistically be fully awarded to Economic Development projects).
# Project Title Project Sponsor Request
7 ReUse Job Training for Career Pathways Finger Lakes ReUse, Inc. (FLRU) $106,937.02
8 Work Preserve Job Training: Job Placements Historic Ithaca, Inc. $67,500
9 Hospitality Employment Training Program (HETP) Greater Ithaca Activities Center, Inc. (GIAC) $110,000
10 Ithaca Is Books Buffalo Street Books (BSB) $35,000
[#] Economic Development Loan Fund IURA $90,000
IURA EDC Meeting Minutes
March 9, 2021
Page 2 of 7
Ithaca Is Books ― Buffalo Street Books (BSB)
Proulx noted one issue the Committee should consider is to ensure BSB can meet CDBG requirements for
job‐creation/job‐retention, as well as the larger issue of BSB’s financial outlook and organizational
capacity.
Bohn agreed. He noted, while BSB proposes to create one new position, it does not appear to justify it
with an increased revenue model to support the position after 12 months, once IURA funds have been
exhausted.
Ackerman added that BSB budgeted 4% to cover standard payroll expenses (e.g., Medicare, Social
Security), which is not nearly enough. It should probably be closer to 15%.
Proulx noted, in addition to the question of how much revenue could be directly generated by the
program (e.g., fees), there is little in the application about the program’s ability to generate more book
sales revenue.
Mendizabal noted BSB did examine information it gathered from other independent bookstores, so it is
possible it has more information from that research, which was not included in the application. It is a
question the Committee may want to ask BSB.
Proulx observed the application may not be quite as fully developed as it should be. It does not
completely describe what a sustainable business model for the store would look like. Such a significant
shift in its business strategy should have been more fully articulated in the application.
Dylla agreed with Proulx. He thought BSB would have been moving towards organizing a large annual
book festival and outreach event of some kind to attract people downtown, rather than smaller kinds of
events and programs. BSB could collaborate with the Downtown Ithaca Alliance (DIA) and the Ithaca‐
Tompkins County Convention and Visitors Bureau.
Ackerman wondered if BSB could apply for Visitors Bureau funding.
Bohn noted he does not believe that BSB, as a for‐profit organization, is eligible for many grant funding
sources (e.g. Visitors Bureau, Community Arts Partnership), but that is something the IURA could follow up
with.
Proulx remarked his general sense from the discussion is that, even if the Committee’s questions were all
answered, there would likely not be sufficient support for funding the application. On the other hand, he
could envision BSB being eligible for a forgivable IURA loan.
Dylla suggested BSB explore converting into a non‐profit, like Cinemapolis. Bohn added it could even
encapsulate a non‐profit entity into the larger for‐profit organization.
IURA EDC Meeting Minutes
March 9, 2021
Page 3 of 7
Dylla wondered if the IURA could offer the services of Harry Sicherman as an economic advisor to develop
a broader financial plan for BSB. Bohn replied, if the Committee believed it a priority, the IURA could
allocate funding for technical assistance. Dylla supported the idea.
Proulx replied that may well be worth pursuing, especially since the IURA does not receive many
applications for genuinely economic development activities that create new businesses/jobs or otherwise
transform the local economic landscape. The community could benefit from more targeted technical
assistance for HUD Entitlement Program applicants.
Bohn noted the IURA could encourage future applicants, like BSB, to enter into a ‘pre‐application’ process,
including meeting with the Committee earlier in the application process.
Ackerman asked if the IURA has any discretion with its Economic Development Loan Fund to provide
funding as grants, or whether it would effectively be a grant, if it is designated a forgivable loan.
Bohn replied, yes. That is how the COVID‐19 Small Business Resiliency Fund (SBRF) program was
structured.
Proulx asked if a small pool of technical assistance funding could be incorporated into the Economic
Development Loan Fund, which the IURA could then disburse in small increments (e.g., $2,500, $5,000).
Bohn replied the only problem is the IURA would still be obligated to demonstrate low‐to‐moderate
income (LMI) benefit and job‐creation/retention. Technical assistance is, however, an eligible use under
CDBG’s Micro‐Enterprise Assistance category for LMI owners of businesses with five or fewer employees
including the owner. As a cooperative, BSB does not qualify as an LMI microenterprise.
Mendizabal noted, if the Committee chooses to implement a pre‐application process, it should dedicate a
specific month for that purpose, so she can plan on reaching out to potential applicants. It may be helpful
to organize a roundtable‐like meeting with several different potential applicants, who could then also
learn from one another.
Proulx replied the Committee could also simply dedicate 20‐30 minutes for that purpose during many of its
regular meetings throughout the year. It may be helpful for the Committee to work with staff to create
some kind of written guidance to provide potential applicants in advance, so meeting discussions can be
more structured and organized.
ReUse Job Training for Career Pathways ― Finger Lakes ReUse, Inc. (FLRU)
Bohn noted it is not clear from the application exactly how the new Green Energy track would fit into the
existing Technology and Retail & Customer Service tracks.
Ackerman remarked the application seemed unusually vague in terms of where some of the anticipated‐
unsecured funding streams would be coming from.
IURA EDC Meeting Minutes
March 9, 2021
Page 4 of 7
Bohn noted one question to ask FLRU is whether the $131,817.00 listed in its budget as merchandise sales
is a reliable figure.
Proulx noted he was curious about the “Rent/Lease” budget line‐item. Bohn replied it is probably simply
an allocation of overall rent overhead. FLRU is not requesting CDBG funds for it.
Bohn remarked one very large component of the funding request is the stipend category, especially for Re‐
Entry participants. In the past, the IURA has discussed stipends as a useful metric for scaling‐up/scaling‐
down funded projects.
Ackerman noted she supports the concept of providing more robust stipends, especially for Re‐Entry
participants.
Work Preserve Job Training: Job Placements ― Historic Ithaca, Inc.
Ackerman noted she was impressed by the secured funding Historic Ithaca was able to obtain. It seems to
have made considerable progress in shoring up support for the program.
Bohn remarked Historic Ithaca has not increased its funding request in many years.
Dylla observed the program does not seem to have met its job placement goal in 2019‐20. Bohn
responded the program has probably been the most severely impacted by COVID‐19, compared to the
other programs, as it tends to be the most hands‐on and time‐intensive.
Mendizabal added Historic Ithaca also works with younger and marginally housed/homeless participants in
unstable circumstances, which affects its ability to place people.
Hospitality Employment Training Program (HETP) ― Greater Ithaca Activities Center, Inc. (GIAC)
Proulx commented that GIAC makes a case in the application that the funding is especially important,
given that the hospitality industry is poised for a significant rebound, after the pandemic; but PY2021‐22
participants would not be completing the program at the height of the rebound.
Mendizabal noted that GIAC contacted her to see if it could use its remaining funds to launch a special
Summer 2021 cohort, which would position those graduates for the forthcoming rebound.
Bohn added GIAC does offer one‐on‐one consulting with past graduates, some of whom probably lost their
jobs as a result of COVID‐19 and would re‐placed in employment.
Proulx remarked all three applications are generally making the same funding requests as prior years.
There is not enough funding to fully fund all three applications. He wondered about the likelihood that
GIAC’s New Gym Renovation application would be fully funded at $400,000.00. Bohn replied, it would
most likely be reduced to some extent.
IURA EDC Meeting Minutes
March 9, 2021
Page 5 of 7
IURA EDC Meeting Minutes
March 9, 2021
Page 6 of 7
Bohn noted, since there is not much currently available in the loan fund, he would not recommend
reducing that allocation to make up for the shortfalls. The Committee will also have another opportunity
to make its final recommendation prior to the IURA Board’s decision‐making meeting.
Proulx favored awarding the applicants as much funding as possible to give the organizations sufficient
resources to help place the most marginalized persons in jobs, while the economy recovers, and keep the
programs as intact as possible over the next 18 months.
Ackerman asked what the impact of partial funding would be on the programs. Mendizabal replied the
Neighborhood Investment Committee (NIC) asked her to reach out to the applicants about partial funding.
Bohn noted the FLRU program would probably scale based on the number of paid apprenticeships offered.
Proulx suggested today’s discussion be conveyed to NIC, before the Committee makes its final
recommendations on April 7, 2021.
VI. Other/Old Business
A. Loan/Lease Report: January 2021
Bohn reported The State Theatre’s loan payment is past due, but this was the result of a technicality
regarding the amount of interest owed and confusion on M&T Bank’s part. All other loan payments are
current. All lease payments are current.
B. Staff Report
Bohn reported the Inlet Island Request for Expressions of Interest (RFEI) was issued. The Committee can
discuss how it wants to approach the application review process at its April 13, 2021 meeting.
(Dylla departed at 4:52 p.m.)
Proulx suggested the Committee create its scoring methodology and review process at its next meeting.
C. Other Business
Bohn reported the ReCast City small‐scale manufacturing consulting services project received partial
funding from Cornell University and will be moving forward, beginning in mid‐March.
Bohn reported the Office of Management and Budget (OMB) recently proposed redefining urban metro
area metropolitan (MSA) and micropolitan statistical area standards. The proposal would reclassify 144
existing MSAs with urbanized areas under 100,000 residents as Micropolitan Statistical Areas, which would
have an adverse impact on the City’s HUD Entitlement Program funding.
IURA EDC Meeting Minutes
March 9, 2021
Page 7 of 7
VII. Adjournment
The meeting was adjourned by consensus at 5:05 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.