HomeMy WebLinkAboutMN-IURA-2021-04-22Approved: 5/27/21
108 E. Green St.
Ithaca, NY 14850
(607) 274-6565
MINUTES
ITHACA URBAN RENEWAL AGENCY
8:30 A.M., Thursday, April 22, 2021
Members: Mayor Svante Myrick, Chair; Karl Graham; Chris Proulx; Eric Rosario; Laura Lewis, Common
Council Liaison; Tracy Farrell, Vice‐Chair
Excused: None.
Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott
Guests: None.
I. Call to Order
Chair Myrick called the meeting to order at 8:55 A.M.
II. Agenda Additions/Deletions
None.
III. Public Comments
Bohn reported that a written public comment was received recently and will be discussed later in the
meeting.
IV. Review of Meeting Minutes: April 15, 2021
Rosario moved, seconded by Farrell, to approve the meeting minutes, with no modifications.
Carried Unanimously: 5‐0
V. Audit Committee (GC)
A. Election of Vice‐Chairperson & Nomination of Chairperson
Proulx moved, seconded by Farrell:
Appointment of IURA Audit Committee Chairperson
WHEREAS, the IURA By‐laws provide that the committee membership shall elect its own committee
Vice‐Chairperson and nominate to the Agency a member to serve as Chairperson of the Audit
Committee, and
IURA Minutes
April 22, 2021
Page 2 of 7
WHEREAS, officers of each committee serve a one‐year term, but continue to hold office until their
successor is selected or appointed, and
WHEREAS, the current committee officers are:
Chairperson: Eric Rosario
Vice‐Chairperson: Karl Graham, and
WHEREAS, at its April 22, 2021 meeting, the IURA Audit Committee called for nominations for Vice‐
Chair and Chair of the IURA Audit Committee, and
WHEREAS, the IURA Audit Committee elected Karl Graham as Committee Vice‐Chairperson and
nominated Eric Rosario as Committee Chairperson; now, therefore, be it
RESOLVED, that the IURA hereby appoints Eric Rosario as Chairperson of the IURA Audit Committee.
Carried Unanimously: 5‐0
V. Governance Committee (GC)
A. 2020 IURA Financial Audit
Rosario explained the FY2020 Financial Audit Report raised no issues, findings, recommendations, or concerns.
Since the IURA is considered a component of the City of Ithaca, this audit only represents a small proportion of
the City audit. The audit is required to be conducted within 90 days of the end of each fiscal year.
Rosario moved, seconded by Farrell:
Approve Audited 2020 IURA Financial Report
WHEREAS, the Ithaca Urban Renewal Agency (IURA) derives the majority of its finances from grants
awarded to the City of Ithaca, and
WHEREAS, for financial reporting purposes, the IURA is a blended component unit of the City of Ithaca,
whose financial activity is reported in the Special Grant Fund, a governmental fund of the City of Ithaca
financial statements, and
WHEREAS, the IURA contracts separately from the City to have its finances audited within 90 days of the
end of its fiscal year to comply with the NYS Public Authorities Accountability Act, and
WHEREAS, the IURA received an audited 2020 IURA Financial Report on March 27, 2021, and
WHEREAS, at its April 2021 meeting, the IURA Governance Committee conducted preliminary review of
the financial report, and
IURA Minutes
April 22, 2021
Page 3 of 7
WHEREAS, at its April 2021 meeting, the IURA Audit Committee reviewed the financial report with
auditor correspondence and recommends the following; now, therefore, be it
RESOLVED, that the Financial Report of the Ithaca Urban Renewal Agency for the period January 1, 2020
through December 31, 2020, prepared by the accounting firm, Insero & Company, LLP, be approved.
Carried Unanimously: 5‐0
B. Annual Investment Policy & Report
Rosario explained the IURA’s investment practices have not changed in any material way. It continues to
invest cash‐on‐hand with an insured financial institution, Tompkins Trust Company (TTC), up to the FDIC‐
insured amount. TTC also provides additional security for IURA funds, over the FDIC‐insured amount.
Rosario moved, seconded by Graham:
Reaffirm IURA Investment Guidelines
WHEREAS, pursuant to the Public Authorities Accountability Act, as amended, the IURA is required on
an annual basis to review its investment guidelines and report, and
WHEREAS, the IURA originally adopted Investment Guidelines on March 25, 2011, and
WHEREAS, the Director of Community Development prepared an annual 2020 IURA Investment
Report, and
WHEREAS, at their April 16, 2021 meeting, the IURA Governance Committee reviewed the IURA
Investment Guidelines and the 2020 Investment Report and recommend the following action; now,
therefore, be it
RESOLVED, that the IURA hereby reaffirms its approval of the IURA Investment Guidelines.
Carried Unanimously: 5‐0
C. Annual NYS Public Authorities Reporting
Rosario explained all the reports listed in the resolution and contained in the meeting materials have been
posted to the IURA web site.
Rosario moved, seconded by Graham:
Approval of Reports Submitted to NYS Authorities Budget Office
WHEREAS, pursuant to the Public Authorities Accountability Act, as amended, the IURA is required on
an annual basis to submit reports to the New York State Authorities Budget Office (ABO), and
IURA Minutes
April 22, 2021
Page 4 of 7
WHEREAS, the IURA Director of Community Development is designated to certify accuracy of the
reporting, and
WHEREAS, the reporting is due to be submitted within 90 days of the end of the fiscal year, and
WHEREAS, due to the continuing COVID‐19 pandemic, the 2021 reporting date has been extended 60
additional days, and
WHEREAS, it is appropriate that IURA members exercise oversight over the staff reporting to the ABO,
and
WHEREAS, at its meeting of April 16, 2021, the IURA Governance Committee reviewed the reporting
and recommends the following action; now, therefore, be it
RESOLVED, that the IURA hereby approves FY2020 IURA public authority reports submitted to the
New York State Authorities Budget Office, including the following:
Budget report
Annual report
Procurement report
Investment report
Certified financial audit report
Carried Unanimously: 5‐0
D. Annual Financial Cash Position Report – Review
Bohn explained the IURA annually reviews its financial position, as measured by its bank account balances
(listed on the next page). The Community Development Revolving Loan Fund (CD‐RLF) balance is lower
than in past years, but should be more fully funded this year. The NYS Governor’s Office of Small Cities
(GOSC) account dates from 2003 and had been accruing a significant balance. The State then
communicated its intent to recapture any unexpended funds, so the IURA invested all remaining funds in
two projects: the purchase of the former Immaculate Conception School site and the extension of S.
Aurora Street sidewalks. The Section 17 account balance has remained very stable over the last 20 years
and serves as an insurance policy, should the IURA ever experience a significant reduction in funding. The
Non‐CDBG account can essentially be considered the IURA’s own funds and is relatively unrestricted.
(continued on next page)
IURA Minutes
April 22, 2021
Page 5 of 7
E. Referral of Public Comment Received – Discussion
Rosario reported a public comment was received by the Governance Committee (GC) from Sunny Days of
New York, LLC, expressing its concerns with the impact the Green Street Garage project (Eastern Section)
has had on its business. The Committee ultimately agreed it would be best to refer it to the IURA Board.
The issues raised by Sunny Days go beyond the Committee’s scope, since the IURA Code of Ethics primarily
addresses conflicts of interest. In addition to Sunny Days’ comments to the IURA, it has also participated in
discussions with City staff, who have committed to improve communications associated with construction
projects, although the primary issue in this case appears to be poor communication between the landlord
and the tenants.
Bohn explained the original project was entirely to be built on the parking garage component of the
project. It was then revised and brought out to The Commons side of the landlord’s property, with two
stories of upper‐story development above the Sunny Days store. As a result, the IURA included a
mitigation plan for addressing the project’s impact on the tenants in its Disposition and Development
Agreement (DDA) with the developer. The developer conducted negotiations with the three tenants,
including legal representation, but since the parties could not arrive at a mutually agreeable resolution,
the developer reverted to the original project proposal. The tenants’ legal costs were required to be
reimbursed, which the developer did (in the form of rent reductions equal to the cost of legal expenses).
But the Sunny Days comments being reviewed today clearly convey that it has suffered other impacts,
which it believes the IURA should have addressed.
IURA Minutes
April 22, 2021
Page 6 of 7
Rosario observed that underlying Sunny Days’ comments and its reference to the IURA Code of Ethics is
the contention that the IURA is responsible for fully mitigating these kinds of impacts on an individual
business; although the IURA’s primary charge is to maximize public benefit, mitigating impacts where
appropriate/practicable.
Bohn noted the Sunny Days e‐mail included an attached legal complaint against the landlord for breach of
contract, which did not include the IURA as a Defendant. Although one of Sunny Days’ comments included
a statement that the IURA has a fiduciary responsibility in situations like this, it is not in fact a part of the
IURA’s charge to protect a single business on a fiduciary basis.
Graham remarked the comment includes a specific request for the IURA to mitigate future impacts on
other businesses that find themselves in similar situations. The IURA could consider if that is possible to
do, when it negotiates with developers in the future.
Bohn responded many of the issues described by Sunny Days are not directly related to the urban renewal
project. The City’s role, on the other hand, is more clearly relevant in terms of Building Permits, oversight
of construction activity, coordination between the Planning Division and Building Division, management of
The Commons, and poor communication by City staff; and these kinds of issues have now been examined
more closely.
Proulx agreed that the current disruption is not related to the urban renewal project. Another issue to
consider is that the IURA issued a loan to Sunny Days, so it conceivably has loan funds at risk in the
business. He wondered how the IURA should proceed in a situation like this, with a business that has an
IURA loan and another urban renewal project developer.
Rosario replied, since the IURA issued a loan to Sunny Days, there would seem to be a compelling interest
on the IURA’s part to address negative impacts to its business.
Bohn noted the Sunny Days loan was fully repaid in 2020.
Graham noted this kind of situation also risks the IURA’s own reputation, fair or not, since it has been
linked to the construction adjacent to the urban renewal project.
Myrick noted there are always legal remedies available to businesses in these circumstances. It is not clear
to him how the IURA could adjust its policies to address issues like this.
Rosario noted he is open to exploring the issue with the Governance Committee (GC).
Proulx indicated he does not believe it to a policy issue, but it serves as a good reminder that these large
urban renewal projects inject a significant amount of capital from various sources, thereby creating
disproportional relationships between developers and tenants/small businesses.
Rosario remarked that, rather than formulate a new policy, the IURA could formalize a certain set of values
and expectations it could communicate to developers.
IURA Minutes
April 22, 2021
Page 7 of 7
Proulx noted the Economic Development Committee (EDC) should probably also examine the issue, since it
is frequently the first IURA decision‐making body to interact with developers.
Graham agreed with Proulx and Rosario. The IURA has an obligation to ensure that any power imbalance,
like landlord vs. tenant, does not lead to a misuse of power.
F. Committee Chairperson Report
None.
VI. Economic Development Committee (EDC)
Proulx reported the Committee has been seeking conceptual proposals to redevelop land on Inlet Island.
It received three proposals from Finger Lakes Development, Visum Development Group, and Waterfront
Alchemy, which it will review in May and make a recommendation in June to the IURA Board.
VII. Neighborhood Investment Committee (NIC)
None.
VIII. Other Business
A. IURA Financials: February & March 2021 ― Review
Bohn reported there are a few delinquent loans, like Liquid State Brewing Company, LLC, but those are
likely due to miscommunication or confusion associated with COVID‐19‐related deferred payments. All
HUD Entitlement Program grant projects are progressing well.
B. IURA Chairperson Report
None.
C. Common Council Liaison Report
Lewis reported that the Ithaca Energy Code Supplement (IECS), code requirements for new buildings and
major renovations that will substantially reduce greenhouse gas emissions, should be adopted by Common
Council in May.
D. Staff Report
Bohn reported that the Planning & Economic Development Committee (PEDC) reviewed plans to exchange
property with Ithaca Community Gardens.
VI. Adjournment
The meeting was adjourned by consensus at 9:46 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.