Loading...
HomeMy WebLinkAboutMN-IURA-2022-01-27Approved: 2/24/22 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY 8:30 A.M., Thursday, January 27, 2022 Members: Mayor Svante Myrick, Chair; Karl Graham; Chris Proulx; Tracy Farrell, Vice-Chair; Laura Lewis; Eric Rosario; Rob Gearhart, Common Council Liaison Excused: None. Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott; Lisa Nicholas Guests: Krin Flaherty, Attorney-at-Law Daniel T. Hubbell, Whiteman Osterman & Hanna, LLP I. Call to Order Chair Myrick called the meeting to order at 8:33 A.M. II. Agenda Additions/Deletions Bohn noted agenda item V. A., “Assign Lease for 240 Cherry Street,” should be removed. The acquisition of Precision Filters has been postponed, so there is no more need to assign the lease at this time. III. Public Comments None. IV. Review of Meeting Minutes: December 16, 2021 Farrell moved, seconded by Rosario, to approve the meeting minutes, with no modifications. Carried Unanimously: 5-0 V. Economic Development Committee (EDC) A. Job-Retention Financial Assistance: Finger Lakes ReUse, Inc. (FLRU) Proulx explained the Committee discussed the $150,000 financial assistance application twice, which the IURA Board also discussed at its last meeting. At its last meeting, the Committee talked more about FLRU’s budget projections and staffing issues. The IURA would require six quarters of job-reporting to ensure FLRU is retaining the jobs and making positive progress with its budget and operational viability. After considerable discussion, the Committee unanimously supported the resolution. FLRU has been very conservative in terms of how it calculates its 2022 financial growth projections, so there is a definite possibility it could create more revenue than anticipated. It has also been actively engaging in a comprehensive analysis of its staffing structure and needs to determine how to optimize staffing costs. The Committee also agreed FLRU provides a significant community benefit. IURA Minutes January 27, 2022 Page 2 of 13 Proulx moved, seconded by Rosario: Loan Assistance to Finger Lakes ReUse, Inc. (FLRU) to Carry Out Community Economic Development Project WHEREAS, on December 8, 2021, Finger Lakes ReUse, Inc. (FLRU) applied for $150,000 in loan assistance from the IURA to retain 5 jobs held by low- and moderate-income persons at their recycling and retail facility located at 214 Elmira Rd, Ithaca, NY and meet their $2.3M revenue sales target in 2022 to continue sustainability and growth of FLRU operations, and WHEREAS, FLRU requests the IURA to repurpose $75,000 of 2020 CDBG funds awarded to FLRU for job training/placement activity to a job retention forgivable loan to retain at least 2 Full-Time Equivalent (FTE) jobs at the Ithaca ReUse Center located in Ithaca, and WHEREAS, FLRU further requests an additional $75,000 in loan funds as a forgivable loan to retain three additional jobs, and WHEREAS, FLRU is a non-profit corporation employing over 75 persons whose mission is to enhance community, economy, and the environment through reuse, and WHEREAS, FLRU activities divert over 700 tons of materials from landfills through their reuse operations and retail stores, and provide job skill training and experience to under-employed, low- income persons experiencing barriers to employment, and WHEREAS, FLRU is an IURA-designated Community-Based Development Organization (CBDO), and WHEREAS, eligible CDBG activities must be both a listed eligible activity and meet a National Objective, and WHEREAS, retention of jobs held by low- and moderate-income persons meets a National Objective when job loss would occur, but for provision of CDBG assistance and impacted jobs are held by low- and moderate-income persons, and WHEREAS, CDBG economic development loan assistance to non-profit sub-recipients under 24 CFR 570.203 is limited to acquisition, construction, or rehabilitation activities, therefore FLRU’s proposed activity is not an eligible use of economic development loan funds, and WHEREAS, FLRU’s proposed use of funds is eligible as a Special Activity carried out by a Community-Based Development Organization (CBDO) authorized at 24 CFR 570.204 to implement a community economic development project, if the FLRU board continues to meet CBDO composition requirements, and WHEREAS, a type of project that “increases economic opportunity, principally for low- and moderate-income persons, or that are expected to create or retain businesses or permanent jobs within the community” qualifies as an eligible community economic development project, and IURA Minutes January 27, 2022 Page 3 of 13 WHEREAS, FLRU’s project will retain jobs essential for achieving FLRU’s goal to increase earned revenues to $2.3M in 2022 as a means to sustain and grow FLRU operations and jobs, and WHEREAS, the applicant has provided financial information and projections that reasonably documents the job positions to be retained will be terminated without financial assistance, and WHEREAS, it is prudent to use public funds for job retention activities only when jobs retained are projected to remain financially sustainable, and WHEREAS, the following jobs are projected to be retained as a result of requested financial assistance: $150,000 loan (5 jobs) • Building Materials Specialist • Assistant Manager • Warehouse Assistant (x2) • Project Coordinator WHEREAS, each of the above positions is held by low- and moderate-income persons, and WHEREAS, the proposed uses of project funds are: $218,332 Salary/Wages & Benefits $218,332 Total, and WHEREAS, the proposed sources of project funds are: $68,332 FLRU revenues $150,000 IURA $218,332 Total, and WHEREAS, the applicable CDBG public benefit standard for economic development projects requires at least one full-time equivalent (FTE) job be retained for every $35,000 of loan assistance, and WHEREAS, retention of five (5) full-time jobs resulting from $150,000 of CDBG assistance satisfies the CDBG public benefit standard, and WHEREAS, FLRU is a certified living wage employer, and WHEREAS, FLRU has secured funding from Tompkins County to complete a business operations assessment in early 2022 to improve business efficiencies, and WHEREAS, based on financial information provided, it is reasonable to conclude that but for CDBG assistance, the five job positions would not be retained, and IURA Minutes January 27, 2022 Page 4 of 13 WHEREAS, management’s financial projections indicate the retained jobs will continue throughout for at least six quarterly job reporting periods, and WHEREAS, as an economic activity not associated with new construction the activity qualifies at 58.35(b)(4) as a Categorically Excluded from the National Environmental Protection Act (NEPA), but is subject to Federal flood hazard regulations, and WHEREAS, at its December 14, 2021 and January 11, 2022 meetings, the IURA Economic Development Committee reviewed the loan application and recommends the following action; now, therefore, be it RESOLVED, that the IURA hereby approves a community economic project to be carried out by a CBDO pursuant to 24 CFR 570.204 in accordance with the loan application and supplemental submissions, subject to the following terms: Borrowers: Finger Lakes ReUse, Inc. as a Community-Based Development Organization (CBDO) Loan Amount: Up to $150,000 Source of Funds: Reprogramming $98,025.60 from the 2021 ReUse Job Training for Career Pathways project awarded to Finger Lakes ReUse, Inc. and $51,974.40 from the ED Loan Fund. Project: Carry out a community economic development project resulting in job retention of at least five (5) FTE jobs held by low- and moderate-income persons at the Ithaca ReUse Center located in the City of Ithaca to sustain and grow job opportunities. Total Project Cost: $218,332 Projected Use of IURA Funds: Wages and Salaries Interest Rate: 0.0% Term: 2 years Repayment: No repayment due and loan forgiven provided borrower complies with quarterly job reporting documenting the job retention goal is satisfied for six (6) consecutive quarters and the positions remain filled through June 2023. If the job retention goal is not achieved, then the full loan balance is due and payable at the end of the loan period. Loan Collateral: None Personal Guarantor(s): None IURA Minutes January 27, 2022 Page 5 of 13 Job Creation/Retention: Retention of at least five (5) FTE employment positions held by low- and moderate-income persons. Loan Conditions: 1. Confirmation that the FLRU Board satisfies CBDO composition requirements. 2. Common Council approval of a Substantial Amendment to the 2021 HUD Entitlement Action Plan to reallocate funds from the FLRU job training and Economic Development Loan fund activities. Reporting: 1. Quarterly of in-house income and expense report. 2. Notification of material financial changes. 3.Adopted revisions to the 2022 or 2023 operating budget. 4. Annual company Federal tax returns and annual internally prepared financial statements, including Form 990s. 5. Job retention/creation reporting. 6. Documentation of project’s Match Funding. And be it further, RESOLVED, that the IURA hereby approves a $150,000 substantial amendment to the 2021 HUD Action Plan to reprogram $98,025.60 from the ReUse Job Training for Career Pathways Project and $51,974.40 from the Economic Development Loan Fund activity to this FLRU community economic development job retention project, and RESOLVED, that the Director of Community Development for the IURA is authorized to issue a Loan Commitment Letter in accordance with this resolution, and be it further RESOLVED, that the IURA Chairperson, upon the advice of IURA legal counsel, is hereby authorized to execute all necessary and appropriate documents to implement this resolution. Carried Unanimously: 5-0 C. Committee Chairperson Report None. VI. Governance Committee (GC) A. Independent Contractors 1. 2nd Amendment to 2021 Legal Services Contract: M. Geldenhuys Rosario explained the resolution serves simply to amend the current contract for Mariette Geldenhuys, increasing it to $22,000. Geldenhuys has billed for numerous additional expenses related to CDBG-CV activities, as well as the Inlet Island and Green Street Garage development projects. The increase would not impact the IURA budget, since Levene, Gouldin, & Thompson, LLP never billed the IURA. IURA Minutes January 27, 2022 Page 6 of 13 Farrell moved, seconded by Graham: 2nd Amendment to 2021 Legal Services Contract: M. Geldenhuys WHEREAS, the IURA executed a 2021 contract for independent contractor legal services with Mariette Geldenhuys, Attorney-at-Law, at a maximum hourly rate of $230 per hour with the total amount not to exceed $12,000, and WHEREAS, the annual legal services contract runs from March 1, 2021 to February 28, 2022, and WHEREAS, legal services associated with the Green Street Garage Urban Renewal Project required increased demand for IURA legal services, which were reimbursed from the City of Ithaca, and WHEREAS, the 1st amendment to the legal services contract increased the total contract amount not to exceed $22,000, and WHEREAS, current annual legal billing from Geldenhuys totals $23,975.26 through December 31, 2021, and WHEREAS, legal services associated with the Inlet Island Urban Renewal Project and contract review of CDBG-CV funded projects increased demand for legal services, and WHEREAS, the IURA is not anticipated to incur any legal expenses from Levene Goldin & Thompson whose IURA contract authorized up to $10,000 of legal services, and WHEREAS, the IURA Governance Committee reviewed this matter at its January 21, 2022 meeting and recommended the following; now, therefore, be it RESOLVED, that the IURA hereby approves Amendment #2 to the 2021 independent contractor agreement with Mariette Geldenhuys, Attorney at Law, to increase the total contract amount not to exceed $28,000, and be it further RESOLVED, that the IURA Chair, subject to review by IURA legal counsel, is authorized to execute an amended independent contractor agreement for legal services to implement this resolution. Carried Unanimously: 5-0 2. Procure 2022 Legal Services Rosario explained that all independent services contracts will expire on February 28th. In response to its RFP, the IURA received six proposals for legal services, which staff evaluated and summarized in the following chart. IURA Minutes January 27, 2022 Page 7 of 13 Graham moved, seconded by Proulx: 2022 Procurement of Independent Legal Services WHEREAS, the contracts for existing independent legal services expires on February 28, 2022, and WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for procurement of professional services, the IURA issued a Request for Proposals (RFP) for legal services, and WHEREAS, proposals were received from the following: • Mariette Geldenhuys, Attorney and Mediator • Krin Flaherty, Attorney at Law • Whiteman Osterman & Hanna, LLP • The Law Office of Sharon M. Sulimowicz • Goldberg Segalla • West Group Law, PLLC, and WHEREAS, the 2022 IURA budget authorized a total of $25,000 for legal services, and WHEREAS, on January 21, 2022, the Governance Committee reviewed the proposals against the RFP evaluation criteria and needs of the Agency and recommended the following; now, therefore, be it RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute contract agreements for independent contractor legal services as follows: • Mariette Geldenhuys, Attorney and Mediator – up to $15,000 • The Law Office of Sharon M. Sulimowicz – up to $6,000 • Krin Flaherty – up to $4,000 And be it further IURA Minutes January 27, 2022 Page 8 of 13 RESOLVED, that should unanticipated legal issues arise beyond the expertise of the above firms, Whiteman Osterman & Hanna, LLP may be hired to perform special assignments without further competitive selection, and be it further RESOLVED, that the source of such funds for legal services shall be derived from a variety of funding sources, including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the appropriate source of funds for which the services were performed. Carried Unanimously: 5-0 3. Procure 2022 Community Development Consultant Services Rosario explained only one proposal was received, although the IURA reached out to seven companies. (The IURA’s needs are so specialized, it does not typically receive many proposals.) Rosario moved, seconded by Graham: 2022 Procurement of Independent Community Development Consulting Services WHEREAS, the contract for independent community development consulting services, including loan underwriting, expires on February 28, 2022, and WHEREAS, in accordance with IURA procurement policy and regulations contained in 2 CFR Part 200 for procurement of professional services, the IURA issued a Request for Proposals (RFP) for community development consulting services, and WHEREAS, the RFP was publicly advertised in The Ithaca Journal and sent to the following firms: • Thoma Development • H. Sicherman & Company, Inc., dba as The Harrison Studio • Young & Associates • Holtmeyer & Monson • Simpson Consulting • WFN Consulting • Highland Planning, and WHEREAS, one proposal was received from H. Sicherman & Company, Inc., and WHEREAS, hourly rates for services include: • $185/hour – Harry Sicherman • $145/hour – Michael Thomas (loan underwriting) WHEREAS, the 2022 IURA budget authorized a total of $10,000 for community development and loan underwriting services, and IURA Minutes January 27, 2022 Page 9 of 13 WHEREAS, on January 21, 2022, the Governance Committee reviewed the proposals against the RFP evaluation criteria and needs of the Agency and recommended the following; now, therefore, be it RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a contract agreement for community development consulting services with H. Sicherman & Company (dba The Harrison Studio) in an amount not to exceed $10,000, and be it further RESOLVED, that the source of such funds for community development consulting services shall be derived from a variety of funding sources, including, but not limited to, CDBG and HOME funds, and expenses shall be billed to the appropriate source of funds for which the services were performed. Carried Unanimously: 5-0 B. Pay-Out Accumulated IURA Compensatory Time Rosario explained the resolution was proposed in order to address the issue of payment for additional accrued compensatory time, associated with the IURA’s increased workload due to CDBG-CV and other recent projects. The IURA Accountant accumulated 224¼ hours of compensatory time. She works a 22-hour workweek, which made it difficult for her to complete the additional work without accruing compensatory time. The Committee unanimously approved the resolution. Graham suggested the IURA review accrued compensatory time more frequently. Bohn agreed it would be helpful to track accrued time to ensure it does not exceed the 80-hour threshold. Rosario moved, seconded by Proulx: Pay-Out of 2021 Accrued Compensatory Time — Accountant WHEREAS, compensatory time is earned when a non-management IURA employee works additional hours beyond their normal work week, and WHEREAS, IURA Human Resources Manual policy regarding compensatory time provides employees with equal hours of time off, but recognizes that in time of particularly heavy workload, compensatory time may be paid in cash rather than time off, and WHEREAS, IURA policy further states that total accumulation under usual circumstances shall not exceed 80 hours and that any accumulation in excess of 80 hours will be reported to the Agency, and WHEREAS, the balances of accumulated compensatory time for non-exempt employees as of December 31, 2021, are: • Accountant – 224.25 hours • Contracts Monitor – 18 hours • Community Development Planner – 2.5 hours, and WHEREAS, workloads were particularly heavy in 2021 to manage one-time CDBG-CV funding for 17 additional projects, and IURA Minutes January 27, 2022 Page 10 of 13 WHEREAS, at separation of employment an employee must be paid for unused compensatory time, and WHEREAS, the Accountant works a 22-hour workweek, and WHEREAS, the Accountant prefers to be paid for all compensatory time accrued as of 12/31/21, rather than take time off, and WHEREAS, pay-out of the Accountant’s accrued compensatory time includes the following projected expenses: • $7,530.24 Payroll • $576.06 FICA • $891.69 Retirement • $8,997.99 Total WHEREAS, the IURA Governance Committee discussed this issue at their October 2021 and January 2022 meetings, and recommend the following; now, therefore, be it RESOLVED, that the IURA hereby approves pay out of 224.25 hours of compensatory time accumulated by the IURA Accountant as of 12/31/21, and be it further RESOLVED, that the source of funds shall derive from IURA local funds held in the #05 Non-CDBG account (Bank Account #511044275) that had a balance of $640,129 as of 1/19/22, and RESOLVED, that the Director of Community Development is hereby authorized to take any action to implement this resolution. Carried Unanimously: 5-0 C. Committee Chairperson Report None. VII. Neighborhood Investment Committee (NIC) A. Committee Chairperson Report Graham reported that the Committee continues to search for someone to fill its recent vacancy. One community member and City resident is expected to apply to sit on the Committee, who would need to be formally appointed by the IURA Chair. VIII. Other Business A. IURA Financials: December 2021 Bohn reported all HUD Entitlement Program grant projects are generally progressing well. COVID-19 did delay some projects (e.g., job-training and placement programs), which require extensive face-to-face interaction. IURA Minutes January 27, 2022 Page 11 of 13 Bohn noted the Grant Summary now includes the IURA’s 2021 HUD Entitlement Program activities. One project, the Salvation Army’s mortgage payment assistance program, has been somewhat slow to move. The Salvation Army is new to this service area and had to initiate a number of connections with local housing organizations. It has now identified one of the five homeowners to be assisted. Bohn explained there is some concern the IURA will not be able to meet the June 1st, 2022 CDBG spend- down ratio deadline. As of today, the IURA needs to expend $279,684.29 to meet satisfy the requirement, so it is something staff will be closely monitoring. Unfortunately, CDBG-CV funds do not count towards the spend-down ratio. Proulx asked about the status of the $175,000 GIAC Youth Programming and $65,000 Community Outreach Worker projects, which have spent $0. Bohn responded those two projects are intended to be agreements between the City and IURA, to eliminate the prospect of funding cuts for the programs in the City budget. Bohn reported all loan repayments are now current, with two minor exceptions, associated with delays in billing from M&T Bank and USPS delivery delays. Bohn reported all leases are current, as of today, except for the Ithaca Farmers Market (IFM), which is one payment late. B. IURA Chairperson Report Myrick remarked he will be assuming his new role as Executive Director of People for the American Way. Lewis has agreed to be Acting Mayor and serve on the IURA Board. Myrick expressed appreciation for his years working with the IURA Board and staff. E. 2022 Annual Election of IURA Officers Myrick moved, seconded by Farrell: 2022 Annual Election of IURA Officers WHEREAS, officers of the IURA consist of a Chairperson, Vice-Chairperson, and Secretary, and WHEREAS, the current Chairperson, Svante Myrick, announced his mayoral resignation effective February 7, 2022, and WHEREAS, it is anticipated Acting Mayor Laura Lewis will be appointed to the IURA Board to replace Svante Myrick, and WHEREAS, Section 2 of Article III of the IURA by-Laws call for election of the Chairperson and Vice- Chairperson of the IURA at each annual May meeting of the IURA Board, and IURA Minutes January 27, 2022 Page 12 of 13 WHEREAS, Section 2 of Article III of the IURA by-Laws further states that the IURA Board shall appoint an Executive Director, who shall serve as Secretary to the IURA Board, and WHEREAS, by resolution dated May 22, 2008, the IURA Board appointed the Director of Planning & Development for the City of Ithaca, ex-officio, as the IURA Executive Director and IURA Secretary, and WHEREAS, per New York State enabling legislation creating the IURA, an IURA member serves at the pleasure of the Mayor and shall continue to hold office until a successor is appointed, and WHEREAS, current IURA officers are: • Svante Myrick, Chairperson • Karl Graham, Vice-Chairperson • Lisa Nicholas, Secretary (ex-officio as Acting Director of Planning & Development; now, therefore, be it RESOLVED, that the IURA hereby elects Chris Proulx as Chairperson and Karl Graham as Vice- Chairperson of the IURA, and be it further RESOLVED, that this resolution shall serve as the annual 2022 election of IURA officers. Carried Unanimously: 5-0 C. Common Council Liaison Report Lewis reported that the Ithaca Guaranteed Income program continues to move forward, including a randomized selection of 110 beneficiaries to receive $450 a month for one year. Farrell asked how many households applied. Mendizabal replied, there were 400 applications. The entire application pool was subsequently vetted for duplicates and non-City residents. Final selection and on- boarding will be taking place shortly. D. IURA Appreciation for Mayor Myrick Proulx remarked a proposed resolution was drafted, expressing appreciation for Myrick’s years of service to the IURA, which he would now like to move. Proulx moved, seconded by Farrell: IURA Appreciation for Mayor Svante Myrick WHEREAS, Svante Myrick announced plans resign as City of Ithaca Mayor in February 2022, and WHEREAS, since 2011, Svante Myrick has served as IURA Chairperson and presided at over 120 meetings, and WHEREAS, Mayor Myrick has consistently identified the lack of sufficient affordable housing as the City’s most urgent need, and IURA Minutes January 27, 2022 Page 13 of 13 WHEREAS, Mayor Myrick was committed to ensuring that downtown Ithaca was the vibrant, diverse, and economically thriving core of the City and Tompkins County and advanced policy, funding, and partnerships to realize that vision; and WHEREAS, in 2011, the IURA adopted a mission statement to “improve the social, physical, and economic characteristics of the City of Ithaca by expanding access to quality affordable housing, strengthening neighborhoods, and the local economy;” and WHEREAS, during his terms as IURA Chairperson and Mayor, Svante Myrick, worked tirelessly to implement the IURA mission statement, including the construction of over 1,000 affordable housing units in the City; now, therefore, be it RESOLVED, that the Ithaca Urban Renewal Agency hereby recognizes Svante Myrick for his enormous contributions to the Ithaca Urban Renewal Agency and long-lasting improvements to the Ithaca community. Carried Unanimously: 5-0 (Myrick departed at 9:37 a.m.) E. Staff Report Bohn reported the deadline for 2022 HUD Entitlement Program applications is Monday, January, 31, 2022. The IURA will hold a two-part Public Hearing beginning at 8:30 a.m., Thurs., Feb. 24, 2022 and continuing at 8:30 a.m., Thurs., March 3, 2022, to review the applications. IX. Adjournment The meeting was adjourned by consensus at 9:46 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.