Loading...
HomeMy WebLinkAboutMN-IURAED-2021-10-12Approved: 12/14/21 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY ECONOMIC DEVELOPMENT COMMITTEE (EDC) 3:30 P.M., Tuesday, October 12, 2021 Present: Chris Proulx, Chair; Doug Dylla, Vice-Chair; Leslie Ackerman Excused: Charlotte Hamilton Vacancies: 2 Staff: Nels Bohn; Charles Pyott Guests: Lisa Swayze, Buffalo Street Book (BSB) Amy Reading, Buffalo Street Book (BSB) I. Call to Order Chair Proulx called the meeting to order at 3:31 P.M. II. Agenda Additions/Deletions None. III. Public Comments (3-minute max. per person) None. IV. Review of Meeting Minutes: August 18, 2021 Dylla moved, seconded by Proulx, to approve the minutes, with one minor modification. Carried Unanimously:3-0 V. New Business A. Buffalo Street Books (BSB) — Discussion Bohn explained that the Committee reviewed BSB’s 2021 HUD Entitlement Program application, requesting $35,000 in CDBG funds to hire a full-time Events and Community Outreach Coordinator for the expansion of the store’s “Ithaca Is Books” literary arts program. At that time, the Committee declined to approve the application, due to concerns about the project’s compliance with the requirement that it result in genuinely permanent and sustainable job retention/creation. The Committee also believed more work should be done to strengthen the application. Bohn has since spoken with BSB, which agreed to appear before the Committee today to discuss how it could help BSB make its proposal and business plan more viable, and explore possible technical assistance. Bohn disclosed that he is a BSB member/owner. IURA EDC Meeting Minutes October 12, 2021 Page 2 of 5 Swayze remarked BSB has been finding the process of exploring various funding opportunities has been very productive. Since BSB is an independent bookstore co-op, it does not fit into a standard retail business model. Its business goals revolve around its mission to serve the community and expand access to literature; however, since it is not currently a 501(c)(3) organization, it has very limited access to additional funding. BSB also does many things that are above and beyond what a traditional bookstore does (e.g., curating; serving as a safe congregating space; collaborating with local schools and organizations to provide discounted books). Amazon’s virtual monopoly and the publishing industry’s practices, make it very difficult for even the best independent bookstores are lucky to make a 1-2% profit. BSB does have the benefit of a supportive and engaged ownership base of 900 people, although that has historically been in response to an urgent financial need. BSB is seeking to engage its membership in a more consistent way. Annual donations, for example, were always intended to be a part of BSB’s annual budget, which has not yet happened. In the immediate future, BSB would most likely transition to a hybrid non-profit model. Reading noted it has become clear to BSB that it has to do more than simply sell books in order to remain viable, given the nature of the industry. BSB is planning on applying for future CDBG funding of a full-time Events and Community Outreach Coordinator. BSB would also rent and renovate the adjacent reading room, funded with donations from owners and customers. In the first year of the initiative, BSB would apply for non-profit status and shift a certain proportion of its budget to that new organization, which the Events and Community Outreach Coordinator would head as director. This model has worked in other towns around the country. BSB has been in close discussions with other bookstores to sharing business strategies. BSB is confident there is sufficient support in Ithaca for this approach. It just conducted a survey that revealed a large appetite for this type of expanded programming. BSB will need to develop some concrete figures and deadlines for the project, so it will be requesting a technical assistance grant from the IURA to hire a consultant. Ackerman asked, since the non-profit organization is intended to be self-sustaining on a long-term basis, how would that would translate into more financial stability for the for-profit/co-op segment of the bookstore. Swayze replied part of that would be the result of the new position’s activities associated with expanding programs and events BSB is already doing, which would alleviate the need to cover payroll for those positions on the for-profit/co-op side, and also generate increased book sales. Reading added that the non-profit arm would also be able to apply for grants and other funding streams that the for-profit/co-op store is unable to apply for. Ackerman asked if BSB is confident the enthusiasm generated by additional programs and events would in fact translate to increased book sales and payroll cost-savings. Reading replied, yes. Dylla remarked in his experience it generally takes significantly longer than one year to fully develop a non-profit. In addition, sometimes the transition of a staff person to the director of a non-profit is not successful, since the two roles often require different skill-sets. He likes the idea of providing some funding for technical assistance. He suggested BSB collaborate with organizations like the Tompkins County Public Library (TCPL) book sale or Apple Harvest Festival. IURA EDC Meeting Minutes October 12, 2021 Page 3 of 5 Swayze replied BSB has been very involved with the Downtown Ithaca Alliance (DIA) in a variety of ways, although it has not worked with TCPL, which is a good idea. She appreciates Dylla’s concerns about the transition to the director of the non-profit. Proulx remarked there are a number of local literacy initiatives, so he sees potential in BSB serving as an aggregator and physical space for those activities, which could also be attractive to funders. BSB should also explore how it you collaborate with community organizations, like Greater Ithaca Activities Center, Inc. (GIAC), Ithaca Children’s Garden, and Southside Community Center (SCC). Swayze responded that BSB has worked with several of the organizations Proulx mentioned, like Southside Community Center (SCC). She noted BSB stopped paying rent on the reading room space in January 2019. It is a central location and was strongly supported in the survey, but the $12,000 annual rent was a substantial drain on its budget. Reading added it could not be funded by the store’s normal operations budget, so it would need to find other funding. Proulx asked if the members/owners make ongoing capital contributions. Reading replied, no. They made a one-time $250 contribution, but BSB is definitely exploring how to attract more donations. Proulx asked how the store is faring in terms of recovering from the COVID-19 pandemic. Swayze replied, book sales have not yet reached 2019 levels, which was a good year for the store. Sales have remained depressed, but they are not as bad as one might expect. Thanks to various pandemic funding assistance programs, it has been able to keep afloat. Reading added that BSB’s launch of its online sales platform has also helped. Proulx asked Bohn how IURA technical assistance funding would be organized. Bohn replied the IURA cannot use its CDBG loan funds for technical assistance, so it would need to either use CDBG administration funds or non-CDBG funds. He recommended using non-CDBG funds. The IURA would need a defined framework and budget, including a scope of services, for any technical assistance funding. BSB would also need to identify a consultant acceptable to the IURA. Bohn noted BSB would need to convince the IURA the project would create/retain a permanent LMI job(s) and submit successful job-reporting for two consecutive quarters. Ackerman expressed strong support for the proposal, although she too is concerned with the challenge of establishing a fully functional non-profit within one a year. Identifying the technical assistance consultant and developing a persuasive business plan within two months also seems like a tight timeframe. Proulx indicated BSB should provide a clearly articulated vision for the proposal, along with a realistic timeline and overview of other potential revenue streams it may need, so that the Committee can see a trajectory for funding and the core components of the business model. Dylla agreed with Ackerman and Proulx. Proulx observed there does appear to be some support from Committee members for providing technical assistance funding to BSB. IURA EDC Meeting Minutes October 12, 2021 Page 4 of 5 B. Inlet Island Urban Renewal Project — Procurement of Appraisal Services Bohn noted he does not believe Ackerman is required to recuse herself from this particular discussion in terms of any potential conflicts of interest, since it is strictly technical and would not impact the applicants or benefit Ithaca Neighborhood Housing Services (INHS) in any way. Bohn explained, when the IURA entered into the Exclusive Negotiation Agreement (ENA) with the developer, it agreed to obtain Fair Market Value (FMV) appraisals of the 6-parcel site, except for the affordable housing component. The proposed resolution simply authorizes Bohn to solicit proposals for appraisal services. Two different two appraisers may be hired, since one appraiser has specific experience with the U.S. Coast Guard Auxiliary property. Proulx asked if the cost would be reimbursed by the developer. Bohn replied, not up-front, but it would be incorporated into the final sale price. Dylla moved, seconded by Proulx: 2021 Procurement of Appraisal Services — Inlet Island Urban Renewal Project WHEREAS, on June 24, 2021, the IURA selected Finger Lakes Development, LLC (“FLD”) as a qualified and eligible sponsor (“Preferred Developer”) to undertake an Inlet Island urban renewal project subject to the City of Ithaca Common Council (“Common Council”) authorization to transfer City-owned lands to the IURA via a contingent option agreement, and WHEREAS, on August 4, 2021, the Common Council authorized transfer of certain City-owned lands on Inlet Island to the IURA to prepare a proposed urban renewal project, and WHEREAS, on August 28, 2021, the IURA authorized execution of an Exclusive Negotiation Agreement (“ENA”) with FLD, and WHEREAS, an ENA structures negotiations and responsibilities between the IURA and Preferred Developer to develop a proposed Disposition and Development Agreement (“DDA”) to convey real property to the Preferred Developer to undertake a specified development project, and WHEREAS, the ENA requires the IURA to complete appraisals of the 6-parcel urban renewal site, and WHEREAS, appraisal expenses are eligible for reimbursement upon conveyance of the Urban Renewal Project site, and WHEREAS, appraisal expenses are projected not to exceed $9,000, and WHEREAS, the Director of Community Development is soliciting multiple proposals for appraisal services, and IURA EDC Meeting Minutes October 12, 2021 Page 5 of 5 WHEREAS, the IURA Economic Development Committee reviewed this matter at their October 2021 meeting and recommended the following action; now, therefore, be it RESOLVED, that the IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute an independent contractor agreement, or agreements, not to exceed $9,000 to conduct appraisal of the Inlet Island Urban Renewal Project site, and be it further RESOLVED, that funding for appraisal services shall derive from non-CDBG account. Carried Unanimously: 3-0 B. City of Ithaca Proposed 2022 Budget: Economic Development Investments Bohn reported the Mayor’s proposed 2022 City budget includes $1,600,000 for 8 Economic Development projects (e.g., Retail Mini Grant Program; Workforce Re-Entry Program; Grassroots Crowdfunding Initiative; Small Business Finance Program; Small Scale Manufacturing Program). The County has also been considering similar types of projects, although on a more extended schedule than the City’s. V. Other Business A. IURA Financials Review: August & September 2021 Bohn reported the Grants Summary shows all CDBG and HOME projects are in good standing in terms of expenditures and overall progress, with the exception of a few slow moving CDBG-CV projects (e.g., Salvation Army’s homeowner mortgage payment assistance project). Most loan payments are current, except for Liquid State Brewing Company and Ithaca Downtown Associates (Canopy Hotel), due to extenuating circumstances. All lease payments are current, as of today, except Ithaca Farmers Market (IFM), which made an erroneous payment to the City instead of the IURA. (Proulx departed at 4:31 p.m.) B. Staff Report Bohn reported the bridge over the Flood Control Channel extending to the end of Cecil A. Malone Drive will be replaced, beginning in the winter. The City just submitted a $2.3 M grant application to the State to build out of the remaining portion of the Black Diamond Trail through the City. Bohn also reported the Ithaca ArtHaus apartments on 130 Cherry Street are ready to open, with 40 homeless housing set-aside units and 80 affordable housing units. VI. Adjournment The meeting was adjourned by consensus at 4:39 P.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.