HomeMy WebLinkAboutMN-IURAED-2021-02-09Approved: 3/9/21
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, February 9, 2021
Present: Chris Proulx, Chair; Leslie Ackerman; Charles Hamilton; Doug Dylla, Vice‐Chair
Excused: None.
Vacancies: 2
Staff: Nels Bohn; Charles Pyott
Guests: Thomas Knipe, Deputy Director for Economic Development, City of Ithaca
J.T. Stone, The Ithaca Voice
I. Call to Order
Chair Proulx called the meeting to order at 3:30 P.M.
II. Agenda Additions/Deletions
Dylla asked if the Committee could discuss potential Economic Development ideas and strategies. No
objections were raised.
III. Public Comments (3‐min. max.)
Ackerman asked Bohn if any action needs to be taken concerning the written comments submitted by
Todd Kurzweil (Sunny Days of Ithaca), expressing his concerns about the impact of the recent construction
associated with the Green Street Garage project.
Bohn replied, no, since the e‐mail essentially speaks for itself. Kurzweil has felt adversely impacted by the
adjacent urban renewal project and other nearby activities, including the visual obstruction of the
storefront. Bohn added that a recent meeting between City Planning and Development Department staff
and Deirdre Kurzweil sought to identify ways to mitigate the impacts of building/construction activities and
possible areas of improvement. Mr. Kurzweil’s e‐mail is simply recapitulating his ongoing concerns with
the situation. Bohn noted the IURA did play a significant role in mitigation efforts of the store’s relocation
and verifying that the store’s rent was in fact compensated, to defray the legal costs associated with the
legal negotiations with the developer.
IURA EDC Meeting Minutes
February 9, 2021
Page 2 of 8
IV. Review of Meeting Minutes: December 8, 2020
Dylla moved, seconded by Hamilton, to approve the minutes, with no modifications.
Carried Unanimously: 4‐0
V. Community Lending
A. Request from GreenStar Cooperative Market, Inc. (GreenStar) for Time Extension to Satisfy Job‐
Creation Goal (PB‐LF #9)
Bohn explained, even though the IURA ordinarily provides 24 months for job‐creation, when the project
was being developed GreenStar was confident it could fulfill the job‐creation requirement within 12
months. It did not anticipate the significant impact of the COVID‐19 pandemic on its business
Dylla moved, seconded by Hamilton:
1st Modification to Loan Agreement with GreenStar Cooperative Market, Inc. (PB‐LF #11)
WHEREAS, GreenStar Cooperative Market, Inc. (GreenStar) requests a one‐year extension to meet job
creation goals due to COVID‐19 pandemic impacts on their business; and
WHEREAS, on October 22, 2019, the IURA issued a $400,000 loan to GreenStar for a $7 million project
to relocate and expand their flagship store to 770 Cascadilla Street, Ithaca, NY; and
WHEREAS, GreenStar committed to create twenty‐four (24) full‐time equivalent (FTE) jobs within one
year of disbursement of loan funds, and
WHEREAS, through the third quarter of 2020, GreenStar created sixteen (16) FTE jobs, and
WHEREAS, in December 2020, GreenStar announced they were closing the deli service station, made‐to‐
order station and seating/dining area in response to COVID‐19 concerns to maintain social distancing,
and temporarily furloughing associated employees, and
WHEREAS, IURA policy allows two years to achieve job creation goals, and
WHEREAS, GreenStar committed to achieve job creation goals within one year of disbursement of loan
funds (by November 2020), and
WHEREAS, GreenStar is current on loan repayments, and
WHEREAS, at their February 9, 2021 meeting, the Economic Development Committee considered this
matter and recommended the following action; now therefore be it
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February 9, 2021
Page 3 of 8
RESOLVED, that the IURA hereby amends the loan agreement with GreenStar Cooperative Market, Inc.
to approve a time extension for the borrower to achieve job creation goals until December 31, 2021 to
create 24 FTE jobs, and be it further
RESOLVED, the IURA Director of Community Development is hereby authorized to implement this
resolution through a letter agreement to amend the loan agreement.
Carried Unanimously: 4‐0
B. Loan Write‐Off of Finger Lakes Massage Group, Inc. (PB‐LF #8)
Bohn explained since the Finger Lakes School of Massage lost its accreditation, the borrowers filed for
personal bankruptcy. Writing the loan off does not impact the IURA’s ongoing efforts to collect on the
outstanding debt, but it clarifies that the IURA do not expect the loan to be repayable and included on its
balance sheet.
Hamilton moved, seconded by Ackerman:
Write‐Off Loan to Finger Lakes Massage Group, Inc. (PB‐LF #8)
WHEREAS, on November 23, 2015, the IURA issued a $150,000 loan to the Finger Lakes Massage Group,
Inc. to relocate and expand the Finger Lakes School of Massage (FLSM) in the Rothschild Building
located at 215 E. State Street, Ithaca, NY, and
WHEREAS, the 84‐month loan carried a 3.5% interest rate and required creation of at least 3 FTE jobs of
which at least 51% must be filled by low‐ and moderate‐income persons, and
WHEREAS, the project satisfied the job creation goal in 2016, and
WHEREAS, the loan is secured by a security interest in business assets and personal guarantees of the
following individuals:
• David Denton Merwin, President
• John Patrick Robinson, Chairman, and
WHEREAS, accreditation for the FLSM was revoked by the Accrediting Council for Continuing Education
and Training (ACCET) in August 2019, and
WHEREAS, the business closed in Fall 2019, and
WHEREAS, the borrower has been delinquent on loan payments since September 2019, and
WHEREAS, the outstanding balance on the loan due is $83,081.39, and
WHEREAS, the borrower has filed for Chapter 7 bankruptcy (case #7:2020bk22275), and
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February 9, 2021
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WHEREAS, the IURA has pursued collection on the personal guarantees, and
WHEREAS, on 2/10/20, Chapter 7 bankruptcy was granted by the northern district of Georgia
bankruptcy court to David Denton Merwin (case #19‐65900‐sms) barring creditors from collecting any
discharged debts against him, and
WHEREAS, the IURA Economic Development Committee reviewed this matter at their February 9, 2021
meeting and recommends the following; now, therefore, be it
RESOLVED, that the IURA hereby writes off the outstanding principal balance of $83,081.39 due from
the Finger Lakes Massage Group, Inc., effective 12/31/20, and recognizes the debt as doubtful for
collection, and be it further
RESOLVED, that staff is directed to continue collection efforts on the remaining personal financial
guarantee securing the loan.
Carried Unanimously: 4‐0
VI. Small‐Scale Manufacturing Initiative
Knipe reported the City has been working with a consultant (Recast City) that works with communities on
how to cultivate small‐scale manufacturing businesses (e.g., coffee, handbags, food products). A number
of local businesses fit this definition, but the City has not yet determined how it could leverage its
economic development efforts accordingly, to help expand upon its base of educational, healthcare, and
hospitality industries. The consultant would help the City identify local small‐scale manufacturing
businesses and their needs. The process would also involve work on the City’s physical infrastructure, real
estate development, and zoning considerations. The plan is to look at the broader downtown area for
prospective properties, over a 12‐month timeline. Some key excerpts from the consultant’s proposal are
listed below:
Downtown Ithaca needs help:
(1) identifying Ithaca’s competitive edge with small‐scale manufacturing
(2) bringing this new business type into storefronts and connecting them to property owners in the areas
surrounding The Commons
(3) creating programming and new spaces to support these small businesses and others like them
(4) establishing Ithaca as a destination for small‐scale manufacturing businesses, its growing artisan base,
and their fans
There are three parts to make more of downtown come alive in a new way:
• Identify small‐scale manufacturing businesses from the community/region and understand their needs
and how they could operate downtown.
• Understand property owner and small business development assets and challenges.
• Develop a clear quick‐hit strategy that builds off existing investments to support a thriving downtown
Ithaca that benefits local residents and attracts people from the region.
IURA EDC Meeting Minutes
February 9, 2021
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Immediate Next Steps:
1. Bring small‐scale manufacturing businesses into the work
Find, engage, and understand small‐scale manufacturing businesses for downtown Ithaca and bring
them into storefronts, business development programming, and branding for downtown.
2. Continue to promote downtown Ithaca to people in the region
Create socially distant, safe events to attract families from the city and the surrounding region to small
outdoor events to keep the city at the center of activity during this unpredictable time.
3. Find new allies
Some policies and properties may need to be changed to best support downtown. Now is the time to
build new allies to support downtown businesses and get around old property owners who are a barrier
to success.
Bohn remarked the project would be designed to work on a remote basis, bringing together a cohort of
four other communities of similar size to Ithaca to learn from each other. The consultant is highly focused
on the real‐estate component, as well as the business development one. There are likely a number of
stressed landlords seeking to fill vacant spaces. The Committee should consider if it is a good opportunity
for the City to pursue and what level of financial support the IURA should provide.
Dylla expressed support for the project, noting it would be a good opportunity for Ithaca, in areas like the
West State Street corridor and the involvement of organizations like the from Ithaca Farmers Market and
Cornell Cooperative Extension of Tompkins County, as well as John Guttridge and Press Bay Alley. He
asked what the deliverables would be.
Bohn replied the proposal enumerates them:
Define clear outcomes for the project to understand what it means to succeed in the downtown, who
needs to benefit from the investment, and how this effort can build on projects completed in the past.
Create lists of small‐scale manufacturing business owners, property owners, civic leaders who can
connect us to a diversity of business owners, small business service providers, local elected and other
established leaders in economic and real estate development in the community.
Conduct one on one interviews with business owners in the region and downtown property owners to
understand what works about the community and having a business, what are the most important
assets and greatest challenges, and how could small‐scale manufacturing benefit their work.
Facilitate small group discussions with service providers, the economic development authority,
chamber, and other distinct audiences to get their input about what works and what is challenging to
business development and the downtown.
Analyze all the information from the interviews and small group discussions to clearly articulate the
major assets and challenges businesses and the downtown face and the most important gaps to fill
based on the outcomes set out at the start, based on the Recast City Eight Essential Criteria.
IURA EDC Meeting Minutes
February 9, 2021
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Design and write an action plan for the downtown to bring small‐scale manufacturing into economic
and real estate development projects to create a thriving place that residents (and visitors) are excited
to visit, with a focus on actions for the next 3‐12 months.
Execute the top actions from the plan with direct coaching and mentoring.
Ackerman remarked it seems an excellent strategic direction for the City/IURA to take. She noted that
while focusing on food and crafts would be good, she believes the project should focus much more broadly
than that, since it can be so difficult for food and crafts to grow significantly in the local market; they
would need to export.
Proulx noted he has difficulty understanding the business model for what types of producers would see a
justification for locating in a high‐rent place like Ithaca, although he very much likes the idea conceptually.
He also wondered what the scale the project would be.
Knipe if you look at South Hill Business Campus, no of these kinds of businesses operating there. Unique
combination of education, small manufacturing and retail. If we could find comparable spaces in City, we
could attract them.
Hamilton suggested examining local higher‐technology businesses, too, since there are a considerable
number collaborating with universities (e.g., Cornell Business & Technology Park). He recommended
reaching out to certain businesses at 95 Brown Road and Langmuir Labs. There are smaller manufacturers
that produce micro‐chip devices, for example, some of which emerged from the Rev Ithaca Startup Works
and McGovern Center incubators, as well as the new Praxis Center for Venture Development. He agreed it
sounds like a great project.
Bohn noted the IURA has approximately $70,000 remaining in its “Section 17” account (from a 1985
program to assist landlords in bringing rental apartments up‐to‐code), some of which could help fund the
project.
Proulx noted he is comfortable forwarding the resolution to the IURA Board without citing specific funding
amount, for the Board to determine. No objections were raised.
Dylla moved, seconded by Hamilton:
Support Small‐Scale Manufacturing Strategy & Action Plan
WHEREAS, the City has received a proposal from ReCast City to guide the City of Ithaca in a 12‐month
action‐oriented, inclusive process to develop a strategy and action plan to increase small‐scale
manufacturing in the City, and
WHEREAS, small‐scale manufacturing can provide economic opportunities for city residents and activate
underutilized storefronts, and
IURA EDC Meeting Minutes
February 9, 2021
Page 7 of 8
WHEREAS, the City of Ithaca Urban Renewal Plan supports diversification of the economy to include a
vibrant manufacturing sector, and
WHEREAS, the decline of bricks and mortar retail nationally and COVID‐19 pandemic impacts have
increased vacancies in the City, especially in the downtown area, and
WHEREAS, the City is in the early stages of developing a neighborhood plan for the greater downtown
area that will include an economic development strategy, and
WHEREAS, City economic development staff has expressed strong interest to work in conjunction with
ReCast City to provide lead staff support in development of the action plan, and
WHEREAS, development of an action plan is not an eligible economic development project as it does
not directly create jobs for low‐ and moderate‐income (LMI) persons, or directly assist microenterprises
owned by LMI persons, though it is anticipated to lead to job creation for LMI persons, and
WHEREAS, development of a small‐scale manufacturing action plan is an eligible use of program income
from the closed‐out Section 17 small landlord rental assistance program, which allows the funds to be
used for activities authorized at 24 CFR 570, including planning and action plan activities at 24 CFR
570.205, and
WHEREAS, as of 12/31/20, the balance in the Section 17 account was approximately $70,000, and
WHEREAS, at its February 9, 2021 meeting, the IURA Economic Development Committee reviewed and
discussed the proposal from ReCast City and supports development of a strategy and action plan to
increase small‐scale manufacturing in the City; now, therefore, be it
RESOLVED, that the IURA hereby agrees to participate in match funding for ReCast City services to
develop a strategy and action plan to increase small‐scale manufacturing in the City and urban renewal
project area, and be it further
RESOLVED, the IURA hereby commits match funding in the amount of $________ from the Section 17
account.
Carried Unanimously: 4‐0
VII. Other Business
A. Loan/Lease Report: December 2020
Bohn reported the Canopy Hotel 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.
Bohn reported the lease payments are all current.
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February 9, 2021
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B. Staff Report
Bohn reported the Inlet Island Request for Expressions of Interest (RFEI) should be released within the next
5 business days.
Bohn noted he believes Ackerman raised a question some months ago about searching for crowd‐sourced
financing opportunities of small businesses. As it turns out, Knipe has been studying the issue and if it
would make sense for the City to register with a crowd‐funding platform, like Honeycomb Credit.
Bohn remarked he plans on reaching out to the recently identified Committee member candidates to
determine their level of interest and general availability, and invite them to attend a future meeting.
C. Potential Economic Development Initiatives: Discussion
Dylla noted since much of the IURA’s traditional loan activity has been in flux, because of COVID‐19, he
thought it would be helpful to brainstorm a few potential ideas (although the earlier discussion was very
valuable). He asked if Bohn has been receiving any loan inquiries.
Bohn responded the IURA traditionally receives a considerable number of leads from Knipe and Heather
McDaniel from Ithaca Area Economic Development. He could contact them to see if they know of any
more potential applicants. He also knows Knipe has generally been very active and has been working with
the Small Enterprise Economic Development (SEED) program, which could be a source of future IURA loan
activity. CFCU Community Credit Union could also be a source of loan referrals, or perhaps Bohn could
reach out to Cornell Cooperative Extension of Tompkins County (CCE) for potential agri‐businesses or
commercial kitchens.
Ackerman remarked that supplying enough affordable space is the most obvious step that could be taken,
although there is no simple solution to the issue, partly because of some landlords’ inflexibility in terms of
the rents they charge.
VIII. Adjournment
The meeting was adjourned by consensus at 5:07 P.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.