HomeMy WebLinkAboutMN-IURA-2021-02-25Approved: 3/25/21
108 E. Green St.
Ithaca, NY 14850
(607) 274-6565
MINUTES
ITHACA URBAN RENEWAL AGENCY
8:30 A.M., Thursday, February 25, 2021
Members: Mayor Svante Myrick, Chair; Tracy Farrell; Karl Graham, Vice‐Chair; Chris Proulx; Eric
Rosario; Laura Lewis, Common Council Liaison
Excused: None
Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott
Guests: None
I. Call to Order
Chair Myrick called the meeting to order at 8:34 A.M.
II. Agenda Additions/Deletions
None.
III. PUBLIC HEARING #2: 2021 HUD EnƟtlement Grant ― Authorize $30,000 HOME Pre‐Award for 110
Auburn St. Affordable Homeownership Project
On a motion by Farrell, seconded by Rosario, and unanimously approved, Chair Myrick opened the
Public Hearing.
No public written or verbal public comments were received or presented.
On a motion by Rosario, seconded by Farrell, and unanimously approved, Chair Myrick adjourned the
Public Hearing.
Bohn explained the pre‐award was already discussed by the Planning & Economic Development
Committee (PEDC) and will be reviewed by Common Council next week.
Project Summary:
Ithaca Neighborhood Housing Services (INHS) seeks to acquire and rehabilitate for affordable
homebuyer opportunity an existing house at 110 Auburn Street in Ithaca, NY. This 3‐bedroom, 1‐bath
home, built in 1910, is 1,140 square feet is in good condition for its age, but has seen very limited
maintenance for some decades and needs a number of essential system upgrades, several substantial
repairs, and cosmetic improvements throughout. Required work includes a new furnace (with proper,
licensed removal of asbestos‐containing old furnace); electrical system overhaul; numerous plumbing
repairs; replacement roof and gutters; additional insulation; a kitchen overhaul; interior wall repair,
painting, and lead paint encapsulation; and foundation/exterior repair and painting.
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February 25, 2021
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INHS intends to rehabilitate the home in Spring and Summer 2021, making the home safe, sound,
energy‐efficient, and comfortable. The house will then be sold to a first‐time homebuyer earning
at/below 80% of Area Median Income (AMI) and will become part of INHS’ Community Housing Trust.
INHS seeks to begin rehabilitation of the home in March 2021, for sale in Fall 2021. Without a pre‐
award authorization, however, INHS would be unable to incur costs for rehabilitation work until after
adoption of the 2021 HUD Action Plan, currently scheduled for June 2021. Without the pre‐award,
the sale of the affordable home would likely to be delayed until 2022. HUD’s HOME Investment
Partnerships Program (HOME) regulations at 24 CFR 92.212 authorize pre‐award costs, subject to
compliance with certain requirements.
IV. Public Comments
None.
V. Review of Draft Meeting Minutes: January 28, 2021
Graham moved, seconded by Rosario, to approve the meeting minutes, with no modifications.
Carried Unanimously: 5‐0
VI. Economic Development Committee (EDC)
A. Community Development Lending
1. Request from GreenStar Cooperative Market, Inc. ― Time Extension to Satisfy Job‐Creation Goal
(PB‐LF #9)
Proulx explained that GreenStar requested a one‐year extension to meet its job‐creation goal, as a
result of the COVID‐19 pandemic’s negative impacts on its business earnings and job‐creation at its
new Cascadilla Street location. Ordinarily, the IURA would have allowed 2 years to meet the job‐
creation goal, but when the loan was issued GreenStar indicated it could attain it in 12 months. It is
Proulx’s understanding GreenStar’s business outlook has been gradually improving and its staff
expressed confidence in meeting the new job‐creation goal.
Graham asked if GreenStar would be permitted to request another extension, should the situation not
improve before year’s end. Bohn replied, yes. The IURA has historically granted extensions for other
borrowers.
Proulx moved, seconded by Farrell:
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
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February 25, 2021
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WHEREAS, GreenStar committed to create twenty‐four (24) 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
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: 5‐0
2. Write‐Off Loan to Finger Lakes Massage Group, Inc. (PB‐LF #8)
Proulx explained the IURA has been seeking repayment from at least one of the two borrowers who
signed Personal Unconditional and Continuing Guarantees for the loan, although one of them has
declared bankruptcy. Staff will continue to try to collect on the debt; however, to clarify the IURA’s
own financial accounting position, the loan needs to be formally written‐off.
Proulx moved, seconded by Graham:
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
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February 25, 2021
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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
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: 5‐0
B. Small‐Scale Manufacturing Strategy &Action Plan: Authorize Match Funding Support
Proulx reported the Committee had an interesting discussion with City Deputy Director for Economic
Development Tom Knipe about this proposal. The City has been working with a consultant (Recast
City) that collaborates with communities on cultivating small‐scale manufacturing businesses (e.g.,
coffee, handbags, food products). A number of local Ithaca area businesses fit the definition, but the
City has not yet determined how to leverage its economic development efforts accordingly, to help
expand and broaden its existing base of educational, healthcare, and hospitality industries.
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February 25, 2021
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Proulx noted the consultant would help the City identify local small‐scale manufacturing businesses
and their needs. The process would also include quantifying demand for the businesses, working on
the City’s physical infrastructure, real estate development, and zoning considerations. The plan is to
look at the wider downtown area for prospective properties, over a 12‐month timeline. The
consultant would charge $15,000. The IURA will not be the exclusive funder for the project, but it
does have strong underlying mission‐oriented interest in promoting diversification of the economy to
expand economic opportunities for low‐ and moderate‐income persons. Proulx noted the Committee
specifically deferred identifying the funding commitment amount to the Board.
Bohn reported Cornell University recently committed $7,500 to the project. Knipe would serve as the
lead City staff person on the project, with Cornell participating in other ways. The project would
probably involve a few additional minor costs (e.g., marketing, outreach, building code analysis). A
few more thousand dollars would help ensure the project’s success, in collaboration with Tompkins
County Industrial Development Agency (IDA) and Downtown Ithaca Alliance (DIA). The project would
not be an eligible use of CDBG funding, since no LMI beneficiaries could be directly identified. Bohn
recommended using funds from the IURA’s “Section 17” account (from a 1985 program to assist
landlords in bringing rental apartments up‐to‐code).
Farrell asked what the consultant’s track record is and how the company was selected. Bohn replied
not very many organizations engage in this particular kind of work, especially as their sole focus. The
consultant possesses considerable experience; and follows a model of bringing communities together
into a single cohort, to share information, while identifying best practices and strategies to overcome
obstacles. The consultant appears to be a good match for the Ithaca community. One potential
obstacle would be the historic lack of affordability in the downtown area, although with numerous
COVID‐19‐related vacancies, it may be an opportune time to implement a project like this.
Farrell asked if Bohn could describe examples of “small‐scale” products. Bohn replied products that
are handmade and easily reproducible (e.g., a range of food products), but not unique or one‐of‐a‐
kind products, to facilitate potential export opportunities. The Ithaca Sheepskin store on The
Commons would be a good example.
Proulx noted he is personally very interested in how to export products to other communities, as well
as how the project could create a more diverse economic base.
Farrell asked what other communities the consultant has worked with and produced measurable
results for. Bohn replied he would need to ask Knipe for that kind of information, since it is he who
has been most involved with the consultant. Bohn can follow up with him and provide answers to
Farrell and the Board.
Graham asked how successful the consultant has been in reaching out to diverse communities. Bohn
replied the project includes an equity‐oriented component to seek out opportunities for a wide
swathe of Ithacans from all backgrounds and socio‐economic circumstances, but it would be the City’s
responsibility to design and implement the engagement/outreach process. He added the Small
Enterprise Economic Development (SEED) program is also being rolled out, which Alternatives Federal
Credit Union (AFCU) is actively involved with.
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February 25, 2021
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Rosario suggested, as part of the process, the City should confer with two of the consultant’s clients
(relatively comparable to Ithaca) as reference checks to ensure they were satisfied with the results.
No objections were raised.
Bohn replied, as long as that were framed as a condition in the proposed resolution, that would not
be a problem. Ithaca would, however, need to be enrolled in a cohort by the second week of March
2021.
Proulx moved, seconded by Farrell (as amended):
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
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 $70,257.57,
and
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February 25, 2021
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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 $7,500 from the Section 17
account, and be it further
RESOLVED, that IURA funding disbursement is conditioned upon a satisfactory reference check with
at least two clients of ReCast City.
Carried Unanimously: 5‐0
C. Report from Committee Chair
None.
VII. Other Business
A. Review of IURA Financials Report ― January 2021
Bohn reported all HUD Entitlement Program projects are generally progressing well, although the
CDBG‐CV Emergency Rental Assistance Program (ERAP) has not expended its funds as quickly as
originally anticipated. There have also been some COVID‐19‐related delays for several programs. The
2019 Homeowner Rehab program has also been progressing slowly, but should be spending down its
funds far more quickly, very soon.
Bohn reported all borrowers are current, except Finger Lakes School of Massage and the Canopy Hotel
(which should soon be resolved).
Bohn reported that all lease payments are current, as of today.
B. Chairperson Report
Myrick reported the Draft Reimagining Public Safety Report has been published and is available online
at: https://www2.tompkinscountyny.gov/ctyadmin/reimaginepublicsafety. There is also an online
form for the public to submit questions and provide feedback.
C. Common Council Liaison Report
Lewis reported the February 24, 2021 Common Council (“Committee of the Whole”) meeting to
review the Draft Reimagining Public Safety Report included discussion opportunities and questions.
The report is the culmination of an extensive and impressive collaborative effort. There will be
multiple future opportunities for public comments and questions. The report is due for submission to
the Governor’s Office by April 1, 2021.
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February 25, 2021
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Lewis reported that the Anti‐Displacement Learning Network (ADLN) project has been moving
forward, under the direction of an Advisory Group, which is beginning the process of developing the
Community Outreach & Educator position. Cornell Law School will be conducting a tenants’
practicum. A tenants legal hotline will also be launched (separate from the Ithaca Tenants Union own
hotline).
Myrick asked if the Ithaca Tenants Union (ITU) was involved in the grant application process. Lewis
replied, not formally; but the working group periodically checked in with individual ITU members, who
provided input.
Graham reported that Alternatives Impact applied for and received a grant from the Park Foundation
to address displacement and business‐development issues, to help people build financial assets. The
project (“Own the Cycle: Community Development to Close the Wealth Gap”) is targeted specifically
to people of color, primarily in the City and Town. The largest component of the project is an 8:1
match savings program for down‐payments on home purchases. Project staff will be working with
other organizations: INHS, Ithaca Housing Authority (IHA), Tompkins Community Action. The project
is limited to people earning below 80% AMI. The project will also focus on business‐development
strategies, including micro‐enterprise a grant program. It is a 2‐year grant of $350,000 per year,
assisting 13 households per year and 25 businesses.
Rosario added one of a series of discussions that helped inspire and seed the grant originated from
Community Leaders of Color (CLOC).
D. Staff Report
Bohn reported the IURA expects to begin its annual audit on March 8, 2021 and issue a report by
March 31, 2021.
Bohn indicated the Marriott Hotel has continued to request amendments to its wage agreement with
the IURA, with a goal of providing a living wage to all its staff, conditioned on the IURA considering
certain modifications.
VIII. Adjournment
The meeting was adjourned at 9:36 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.