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HomeMy WebLinkAboutMN-IURAED-2021-06-08Approved: 8/18/21 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY ECONOMIC DEVELOPMENT COMMITTEE (EDC) 3:30 P.M., Tuesday, June 8, 2021 Present: Chris Proulx, Chair; Doug Dylla, Vice-Chair; Charlotte Hamilton Excused: Leslie Ackerman (recused) Vacancies: 2 Staff: Nels Bohn; Charles Pyott Guests: George McGonigal, Laura Lewis, Donna Fleming, Common Council; Karl Graham, Tracy Farrell, IURA Board/Neighborhood Investment Committee; Lisa Nicholas & Nicci Cerra, Planning & Development Department; Johanna Anderson, Ithaca Neighborhood Housing Services (INHS) Presenters: Strategic Elements & Waterfront Alchemy: Lincoln Morse, Ithaca Waterworks/Waterfront Alchemy, LLC Craig Modisher, STREAM Collaborative Noah Demarest, STREAM Collaborative Guy Gridley, Cambria Hotels Visum Development Group: Patrick Braga, Visum Development Group Finger Lakes Development: Steve Flash, Finger Lakes Development of Ithaca, LLC Joseph Bowes, Ithaca Neighborhood Housing Services (INHS) Steve Hugo, HOLT Architects I. Call to Order Chair Proulx called the meeting to order at 3:34 P.M. II. Agenda Additions/Deletions None. III. Review of Meeting Minutes: May 11, 2021 Dylla moved, seconded by Hamilton, to approve the minutes, with no modifications. Carried Unanimously: 3-0 IURA EDC Meeting Minutes June 8, 2021 Page 2 of 13 IV. Inlet Island Urban Renewal Project — Recommendation to IURA Regarding Conceptual Development Proposals Received A. Public Comment (3 min. max.) AARON ABB, U.S. Coast Guard Auxiliary, noted he understands the varied interests associated with the proposals, but he is not confident the full picture of waterfront integration and safety considerations has been understood. Last week, he was on a patrol where 85% of boaters on the water, who were checked, were out of compliance with the State’s motor laws. The U.S. Coast Guard Auxiliary is committed to a safe and clean marine environment. The Boy Scouts of America Sea Scouts also operate out of the present facility year-round. MARC CAMPAGNOLO, Boat Yard Grill/Ciao!, explained he has worked on Inlet Island over 20+ years with grossly insufficient parking capacity in the area. The Boat Yard Grill alone needs a minimum of 170 spaces. Developing a mammoth project, such as the ones proposed, would simply not be feasible. A comprehensive parking demand study should be conducted. JEN AUSTIN, noted as a boater in the area and having in marine services she has reservations about the proposals. She is very concerned these projects would be at the expense of the marine industry. Large vessel deep-water infrastructure is a real commodity in the area. There needs to be a safe harbor for vessels and there is a lack of dockage for large vessels. The proposed projects would be far better situated closer to Stewart Park. Finally, more attention should be paid to the need for more winter storage for boats. DAVID CORNELIUS, U.S. Coast Guard Auxiliary, expressed concerns with those proposals that include multi- family housing, since young children would most likely live in the apartments. He wondered if any consideration had been given to drowning dangers and possible safety measures (e.g., fencing). For example, he has not seen anything that would keep children from wandering out of the playground and falling off the cement wall into the Inlet. He asked if anyone has actually been in communication with the State about if they are willing to give up the parcel where the Coast Guard Auxiliary facility is. JOHN HANEY, Finger Lakes Boating Center (FLBC), remarked he has heard all the concerns and agrees about the significant pressure for parking on the island. The Strategic Elements/Waterfront Alchemy proposal discussed the issue of business impact and that FLBC should be looking for alternative boat storage and a launch facility. FLBC has an agreement with New York State Parks Department to store approximately 115 boats at Robert H. Treman State Park in the Winter, with the remainder stored in the FLBC boathouse and property it leases from the City. This is probably the best FLBC can do with the land available to it. FLBC does no know where else to go. FLBC also happens to be the last haul facility on the southern end of Cayuga Lake. Boating would cease to exist for large boats, under the current proposals. He noted the Finger Lakes Development team is the only group that has come to us and asked us how we could help preserve boating in Ithaca. IURA EDC Meeting Minutes June 8, 2021 Page 3 of 13 B. Committee Response to Public Comment None. C. Review of Existing City Agreements/Easements Bohn walked through the following summary: (continued on next page) IURA EDC Meeting Minutes June 8, 2021 Page 4 of 13 D. Review of Sponsor Responses to IURA EDC Follow-Up Questions (None.) IURA EDC Meeting Minutes June 8, 2021 Page 5 of 13 E. Discussion Including Q&A with Sponsors for Clarifications Dylla asked all three developers to address the parking issue, including Old Taughannock Boulevard, and suggest creative ways to limit parking and shuttle people onto the island. Finger Lakes Development (FLD) Flash replied FLD’s approach to parking is multi-faceted. To begin with, the proposed uses are projected to create less demand (e.g., the ‘hometel’, INHS affordable housing). The project design also serves to address the parking issue, with an expanded area in front of The Boat Yard Grill, another expanded area at the south end of the island serving the dock and Island Health & Fitness, and a third area in the middle of the island providing central overfill capacity. Businesses can also collaborate (as they have done in the past) to adjust parking capacity and operations in anticipation of peaks in demand (e.g., busy weekends). Strategic Elements & Waterfront Alchemy (SE/WA) Morse responded that SE/WA has been approaching its development process as an urban planning exercise, designed to address significant inefficiencies in land use on Inlet Island. Demarest explained that SE/WA recognizes the parking issue is a core concern to address. It has been trying to right-size its project accordingly, although it does not know if it has achieved the right balance. He observed all three proposals are very similar in terms of the mixed-use nature of their design (i.e., a mix of housing, retail, amenities, waterfront-related businesses), so it is just a question of determining the right fit for the site. He added that parking demand will undoubtedly change in the future; what may appear to be a problem today, may very well no longer be a problem in the future. He stressed the current SE/WA proposal is strictly a conceptual plan. A considerable amount of work remains to be done in developing it, including finalizing any agreements between the interested parties. Nothing in the proposal could not be modified, depending on how the process unfolds. SE/WA certainly has the willingness to work through the process and figure out how to right-size its project. Visum Development Group Braga responded, in terms of parking and transportation, Visum’s proposal does not envision Inlet Island’s future as serving as a surface parking lot on the water. It has positioned parking in its proposal two-fold. First, its proposal scaffolds parking within a parking garage designed as three levels, but could conceivably be more. He stressed that every component of Visum’s proposal is malleable. Visum can change, add, or remove parking, as conditions require. From an urban design perspective, the parking garage was designed to partially conceal it from the surrounding landscape, while remaining highly accessible to all the businesses on the island. Second, Visum’s proposal would expand on-street parking by being more mindful in designing Old Taughannock Boulevard not only as a street for driving and parking, but also for walking, cycling, and public transit. He explained that, as a rule of thumb, low- and moderate-income (LMI) families own cars at lower rates, than households who pay market-rate prices for housing. For example, only about ⅔ of renter households in Ithaca’s Northside neighborhood (according to 2019 American Community Survey data) own a car, so there is little reason to expect car ownership on Inlet Island would be significantly higher. IURA EDC Meeting Minutes June 8, 2021 Page 6 of 13 Hamilton observed the Committee has heard considerable feedback from the community about the proposed projects being too large and negatively impacting Inlet Island in various ways. She posed two sets of questions for the applicants: (1) (a) She asked if Finger Lakes Development (FLD) and Strategic Elements/Waterfront Alchemy (SE/WA) would be willing to move forward with their projects, if they did not include The Cambria hotel or The Stays ‘hometel’ components (i.e., so each project would primarily only include a housing component). (b) She asked if Visum, which proposes a much larger project in terms of total number of housing units, would be willing to move forward with its project with only half as many housing units. (2) The Committee’s proposal comparison spreadsheet summarizes the applicants’ responses regarding additional financial subsidies, but she did not fully understand the responses. She asked if each applicant could elucidate what its subsidies would be for and provide the Committee with an estimate of the likelihood of securing them. Strategic Elements & Waterfront Alchemy (SE/WA) Morse replied the hotel is a crucial component of the project, since it produces an economic engine and destination visitor experience for Inlet Island and the surrounding area, benefiting a wide variety of businesses and producing more impact than most other forms of investment, including housing. Finger Lakes Development (FLD) Flash responded FLD would certainly be flexible with its project design and could down-size some components, depending on the financial feasibility of doing so. His one concern is identifying how to pay for the environmental clean-up, which drove the size of the project. He added it may also be possible to place the hotel on The Agora site. Visum Development Group Braga remarked that Visum’s proposal is highly malleable, with the caveat that 9% Low-Income Housing Tax Credit (LIHTC) funding requires a minimum of 70-80 housing units (also a general rule of thumb in the affordable housing sector). Affordable housing is a major economic and social development issue in Ithaca, so the project was designed with that in mind. The project would establish more socially inclusive housing on publicly owned land near the Waterfront. IURA EDC Meeting Minutes June 8, 2021 Page 7 of 13 In terms of the subsidies question, Braga explained the project would seek funding with Low-Income Housing Tax Credits (LIHTC) and $2.7 million from the State’s Parks Grant Program (Parks, Recreation and Historic Preservation) via the Consolidated Funding Application (CFA) process. The public park funding would require public ownership in perpetuity. The parking garage would be privately constructed and publicly operated. Finally, funding for the complete streets design for Old Taughannock Boulevard has not yet been identified, but it could be paid as part of the City’s annual public works workplan, possibly funded with a bond issue. Finger Lakes Development (FLD) Bowes explained that the project’s affordable housing subsidies would comprise $200,000 from the City’s annual HUD Entitlement Program HOME Investment Partnerships Program (HOME) allocation, as well as $300,000 from the Community Housing Development Fund (CHDF). Strategic Elements & Waterfront Alchemy (SE/WA) Morse replied that SE/WA would collaborate with Ithaca Area Economic Development to obtain tax abatements for both the housing and hotel components Lewis asked what the ownership and management structure would be for the housing components, (especially the affordable housing). Finger Lakes Development (FLD) Bowes replied INHS would manage the project as an owner, in partnership with another investor. After 15 years, INHS typically takes ownership of its projects in perpetuity. Strategic Elements & Waterfront Alchemy (SE/WA) Morse responded the housing component would be owned by Strategic Elements Real Estate Development, LLC and a group of partners (all local); and it would also be managed locally. Visum Development Group Braga replied the housing would be owned and managed by Visum Development Group, LLC in collaboration with an as yet unidentified non-profit developer. (Visum has partnered with Providence Housing Development Corporation for its separate State Street Apartments project.) McGonigal remarked he believes marine uses and services are very important for Inlet Island. (1) He wondered if all the projects are trying to be too many things to too many people. In his opinion, all three proposed projects are too large. Inlet Island cannot really carry that much. (2) He is also concerned with parking and traffic issues associated with the projects (e.g., intersection of Buffalo Street and Old Taughannock Boulevard). (3) He asked if the applicants would be interested in sharing the cost of environmental clean-up with City. IURA EDC Meeting Minutes June 8, 2021 Page 8 of 13 Visum Development Group Braga replied that zoning regulations, which set the City’s expectations for the site, allow up to five stories. Visum’s proposal currently includes 121 housing units serving households between 30-100% Area Median Income (AMI), but it could conceivably be reduced to 70-80 housing units, while expanding Old Taughannock Boulevard to be more marine-oriented. There are several ways which could be explored to reduce the height and/or scale of the project. In terms of the traffic issue, Visum’s proposal includes a parking garage at the beginning of Old Taughannock Boulevard, rather than encouraging vehicles to go all the way into the cul-de-sac. In terms of clean-up costs, Visum would apply to the NYS Brownfield Cleanup Program (BCP). Strategic Elements & Waterfront Alchemy (SE/WA) Morse responded SE/WA has dedicated its efforts to create a visitor experience and economic engine. Regarding the hotel’s size, unfortunately Inlet Island is a very expensive place to build, making any project a challenge without some kind of financial anchor, like the hotel. He is also a very strong believer in boutique micro-businesses. One way or the other, however, he is confident SE/WA would arrive at the right solution. Demarest explained that given the huge demand for affordable housing throughout the County, constructing more housing within the City actually produces less traffic impact. In terms of reducing the project’s size, that would be contingent on the overall economics of the project, the cost of construction (requiring deep foundations), the cost of land, and the cost of clean-up. Finger Lakes Development (FLD) Flash responded the varied mixed-use nature of the proposal is necessary to ensure the project is not too parking-intensive. FLD’s proposal includes a considerable degree of flexibility, so it should certainly be feasible to decrease the size of one or both of the buildings. In terms of the traffic issue, FLD’s uses are less traffic-intensive than other existing or proposed uses. FLD’s proposal would also decrease pressure on the two intersections. FLD could certainly share in any environmental clean-up costs, although it is generally quicker and more efficient for a private entity to do that, rather than the City. Bohn explained that the City is not necessarily seeking significantly greater density on Inlet Island. The most important consideration is to develop the best overall project that would ultimately gain the support of both the IURA Board and Common Council. The best proposal should advance the goals and objectives of the City’s comprehensive plan and Waterfront Plan, including mixed-use development, housing opportunities for all income levels, public access to the Waterfront, better multi-modal connections, and creation of a vibrant Waterfront. Dylla asked Finger Lakes Development how many boats are stored at its facilities now and how many are expected to be stored in the future. He also wondered what the long-term prospects are for an industry serving large boats, in a time of climate change. IURA EDC Meeting Minutes June 8, 2021 Page 9 of 13 Finger Lakes Development (FLD) Flash responded the long-term prospects for the boating industry are actually very good. The industry has been doing well, not only in terms of large boats, but there has also been a trend towards smaller boats. FLD stores approximately 250-270 boats in the winter time, in three different storage areas. Dylla asked what kind of improvements would be made to the Finger Lakes Boating Center facility. Flash responded one possibility would be to install solar panels, which would essentially replace the roof and serve as a solar farm. The north end would also be opened up a little to give a more visual access. Also, the way it has been designed in relation to the boulevard would provide more freedom and space for boats to operate, without impinging on other pedestrian or vehicle traffic. Fleming asked what each proposal would offer Ithaca residents and make Inlet Island more attractive to people who already live in Ithaca. She does not personally find apartment buildings or hotels especially appealing. Strategic Elements & Waterfront Alchemy (SE/WA) Morse replied part of the proposal includes Explore Ithaca and Puddledockers Kayak Club & Rentals, providing people the opportunity to rent a variety of recreational paddle craft and bikes, access electric water taxis, or enjoy dining excursions. The rental marina really offers something for Ithacans and is very popular. Demarest added that the project will create something very similar to what has been seen with the Cayuga Waterfront Trail (CWT) and the Department of Transportation site. It will become a destination for visitors and Ithacans alike with a playground, shops, food and beverages, and serving as a family destination. Visum Development Group Braga replied the project would create a large Waterfront park and gathering space, new small retail businesses, and affordable housing for Ithaca residents, meeting an important local need. The project would also round out the side of the Cayuga Waterfront Trail (CWT) that is currently under-developed. Finger Lakes Development (FLD) Flash responded the project’s design of the Waterfront Trail will bring people around the western side of the island to the north. As the Waterfront Trail comes south around the The Boat Yard Grill, it would actually cut over to Taughannock Boulevard, head south on the sidewalk, thereby pulling people away from the marina operations and providing greater access to that trail. The project would also install a floating dock on the trail at North Point for kayaks and larger boats. FLD’s design along the trail on the western side would include space for food trucks and similar amenities. Also, the hotel would be less expensive than a conventional hotel, which could serve as a local getaway for Ithaca residents. IURA EDC Meeting Minutes June 8, 2021 Page 10 of 13 McGonigal asked how the projects intersect with the Coast Guard Auxiliary facility. Finger Lakes Development (FLD) Flash replied FLD has been speaking with the Coast Guard Auxiliary and offered to acquire the building, where the Coast Guard Auxiliary would continue to operate. Visum Development Group Braga responded that Visum would retain the Coast Guard Auxiliary facility directly on the site, whether keeping the building at its current location or incorporating the Coast Guard Auxiliary into the ground floor of one of the new buildings. Strategic Elements & Waterfront Alchemy (SE/WA) Morse replied he believes the educational component of the Coast Guard Auxiliary is very important and should be expanded. SE/WA would like to modernize the facility and bring it into one of SE/WA’s buildings. SE/WA would also like to collaborate with the Coast Guard Auxiliary to add a patrol that would be oriented to the visitor experience and expanding safety protocols. F. Scoring & Ranking RFEI Responses IURA EDC Meeting Minutes June 8, 2021 Page 11 of 13 G. EDC Recommendation to IURA Hamilton moved, seconded by Dylla: Inlet Island Urban Renewal Project — IURA Recommendation to Common Council WHEREAS, the IURA and the City of Ithaca collectively own approximately 2.5 acres of underutilized land on Inlet Island (Project Site), and WHEREAS, an Inlet Island urban renewal project proposed by Finger Lakes Development, LLC failed to gain Common Council endorsement in 2008, and WHEREAS, in 2020, the IURA received two unsolicited proposals for development at the Project Site, and WHEREAS, the IURA and Common Council rescinded the 2006 preferred developer and sponsor status of Finger Lakes Development, LLC to clarify that the IURA will use a competitive process open to all developers to propose conceptual development plans for the Project Site, and WHEREAS, in March 2021, the IURA issued a Request for Expressions of Interest (RFEI) for conceptual development proposals at the Project Site, and WHEREAS, the objective of the RFEI process is to identify if any respondent’s schematic plan and development program will gain conceptual approval from both the IURA and Common Council as the basis for a proposed urban renewal project to redevelop the Project Site, and IURA EDC Meeting Minutes June 8, 2021 Page 12 of 13 WHEREAS, the IURA seeks an urban renewal project that will improve the physical, social, and economic characteristics of the project site and surrounding area, and advance goals and objectives of the 2015 City’s comprehensive plan, and its Waterfront Plan chapter adopted in 2019, and WHEREAS, The Waterfront Plan encourages the following land use objectives:  Mixed-use development  Housing opportunities at all income levels  Public access to the waterfront  Better multi-modal connections  Vibrant waterfront, and WHEREAS, RFEI responses were received from: 1. Waterfront Alchemy, LLC/Strategic Elements 2. Finger Lakes Development, LLC 3. Visum Development Group, LLC and WHEREAS, translating a conceptual development plan to a proposed urban renewal project with defined developer and public commitments requires significant predevelopment investment by the Developer and the IURA which should only proceed upon an indication of IURA and Common Council support for the project, and WHEREAS, at its June 2021 meeting, the IURA Economic Development Committee considered public comments received, compared the proposals received against evaluation criteria contained in the RFEI, ranked the responses, and recommended the following; now, therefore, be it RESOLVED, that the Ithaca Urban Renewal Agency hereby finds the top-ranked conceptual development plan for the Inlet Island urban renewal project site was submitted by FINGER LAKES DEVELOPMENT, LLC, and be it further RESOLVED, that the IURA finds that the benefits and costs of the top-ranked project clearly warrants the public and private investment necessary to structure a proposed Inlet Island urban renewal project for consideration for Common Council endorsement, subject to the following conditions: • Commitment from the developer to share environmental clean-up costs; and • Clarification of Finger Lakes Boating Center’s commitment to make improvements, in terms of visual access and limited boat storage; and • Commitment by the developer to address the U.S. Coast Guard Auxiliary’s need to maintain its water access and continued operations; and be it further RESOLVED, that the IURA hereby requests the City of Ithaca Common Council to indicate conceptual support for the project by authorizing transfer of City-owned properties included in the top-ranked conceptual development plan to the IURA, via an option agreement, for the purpose of structuring a proposed disposition and development agreement with a preferred developer to undertake an urban renewal project subject to approval by the Common Council, and IURA EDC Meeting Minutes June 8, 2021 Page 13 of 13 RESOLVED, that should the Common Council authorize an option agreement to transfer Inlet Island properties to the IURA, the IURA hereby authorizes the IURA Chairperson to execute an Exclusive Development Agreement with the sponsor of the IURA top-ranked conceptual development plan. Carried Unanimously: 3-0 V. Other Business A. IURA Financials Review: April 2021 Bohn reported that Grants Summary shows that all CDBG and HOME projects are in good standing, in terms of expenditures and progress on those projects. The Founders Way rental housing project (at the former Immaculate Conception School site) is scheduled to close on its financing very shortly. Most loan payments are current. All lease payments are current, except Cinemapolis B. Staff Report Bohn reported the Green Street Garage project is moving forward. The financing for the Western Section (Vecino Group New York, LLC) of the project is in place and the project scheduled to commence construction in early July 2021. The Eastern Section is also moving forward. Common Council approved its parking lease agreement and a revised hotel parking agreement with the Marriott Hotel. There will be simultaneous construction on the site for approximately two years. VI. Adjournment The meeting was adjourned by consensus at 5:38 P.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.