AGENDA ITHACA URBAN RENEWAL AGENCY Council Chambers, 3 rd Floor, City Hall 108 E. Green Street, Ithaca, NY 8:30 AM, Thursday, March 26, 2015

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1 Ithaca Urban Renewal Agency 108 East Green Street Ithaca, New York (607) AGENDA ITHACA URBAN RENEWAL AGENCY Council Chambers, 3 rd Floor, City Hall 108 E. Green Street, Ithaca, NY 8:30 AM, Thursday, March 26, 2015 I. Call to order II. III. IV. Additions to or deletions from the agenda 2015 HUD Entitlement Grant Public Hearing Project-by-project sponsor (15-minute maximum, including Q & A see attached schedule) Continuation of public hearing to 8:30 AM, Monday, March 30, 2015 Public comment (3-minute maximum per person) V. Review of draft meeting minutes: VI. VII. VIII. IX. Economic Development Committee A. Property Disposition, approval of a purchase agreement with Lighthouse Hotels, LLC for E. MLK Jr./E. State Street to facilitate an urban renewal project - resolution B. Request from The Art and Found LLC for loan modification #2 (CD-RLF #33) - resolution Neighborhood Investment Committee A designation of INHS as a CBDO resolution B. Minor Program Amendment to 2013 Action Plan at SSCC (#14, 2014) resolution C. Committee Chairperson report Governance Committee did not meet Other New/Old Business A. Consent to designation of the Planning Board as Lead Agency for the environmental review of the Lake Street Bridge Public Park (#11, 2014) - resolution B. Review of IURA financials, February 2015 (grant summary to be distributed at meeting) C. IURA Chairperson report D. Common Council liaison report E. Staff report F. Next meeting date: 8:30 AM, Monday, March 30, 2015 (continuation of Public Hearing) X. Motion to Adjourn If you have a disability and require accommodations in order to fully participate, please contact the IURA at at least 48 hours prior to the meeting.

2 March 26, 2015 Public Hearing Schedule REVISED Public Facilities/Housing Time # Applicant Project 8:30 AM 12 Affordable Health Care Visiting Nurse Service 8:45 AM 11 City of Ithaca Spencer Road Sidewalks 9:00 AM 1 Ithaca Neighorhood Housing Services 210 Hancock 9:15 AM 2 Ithaca Neighorhood Housing Services Mini Repair 9:30 AM 3 Catholic Charities Security Deposits 9:45 AM 5 Tompkins Community Action Housing First 10:00 AM 4 Learning Web Housing Scholarships 10:15 AM 6 Rescue Mission Security Deposits 10:30 AM 7 Alpern & Milton LLC The Flatiron 10:45 AM 8 Finger Lakes Independence Center Temporary Ramp Loan Progran March 30, 2015 Public Hearing Schedule REVISED Public Services/ED Time # Applicant Project 8:30 AM 20 Finger Lakes Reuse ReSET 8:45 AM 19 Youth Farm Project Job Skill sfor Life 9:00 AM 17 BJM Enrichment Program A+ Tuition 9:15 AM 14 Human Services Coalition Call Center 9:30 AM 18 Challenge Industries Career Pathways 9:45 AM 15 South Side Community Center Building for the Future 10:00 AM 13 South Side Community Center Community Drop In Center 10:15 AM 21 Learning Web Supported Employment 10:30 AM 16 Catholic Charities Immigrant Services 10:45 AM 10 Historic Ithaca Work Preserve 11:00 AM 9 Greater Ithaca Activities Center Hospitality Employment Training Prg

3 Proposals Received 2015 HUD Entitlement Program, City of Ithaca, NY Last updated 3/11/15 # Housing Hancock Street Project Funding Sponsor Request Match 2015 CDBG 2013 CDBG 2012 CDBG 2014 CDBG PI 2015 CDBG PI 2015 HOME Total Summary Description Ithaca Neighborhood Housing Services (INHS) $671,646 $37, $6, $11, $120, $368,661 $1,215,812 $457,326 $16,828,299 $0.00 Construct 11 new affordable rental housing units as part of a planned 53 unit project 2 Mini Repair Program 2015 INHS $35,000 $58,128 $0.00 Small emergency repairs for 45 low-income seniors and people with disabilities 3 Security Deposit Assistance Program Catholic Charities $36,000 $0 $ security deposits for low-income tenants 4 Housing Scholarship Program Learning Web $66,600 $55,300 $0.00 Tenant-based rental assistance for 8 homeless youths 5 Housing First TCAction $30,000 $10,922 $0.00 Security deposit, rental and utility assistance for 4 homeless households 6 Security Deposit Assistance Program Rescue Mission $20,000 $0 $0.00 Security deposit for 20 low-income tenants 7 The Flatiron Alpern & Milton LLC $250,000 $1,035,000 $0.00 Construction of 12 affordable rental units 8 Temporary Ramp Loan Program Finger Lakes Ind Ctr $10,000 $7,000 $0.00 Ramps to provide access for 3 disabled households Economic Development FUNDING AVAILABLE 9 Hospitality Employment Training Program Greater Ithaca Activities Center (GIAC) $110,417 $15,545 $0.00 Job training and paid work experience for 16 individuals with employment barriers 10 Work Preserve Job Training Program Historic Ithaca $87,500 $75,500 $0.00 Training in job readiness skillls/entry level job placements for 20 individuals Public Facilities 11 Spencer Road Sidewalks City of Ithaca $100,000 $90,000 $0.00 Provide a safe pedestrian connection from Spencer Rd to the City's network of sidewalks 12 Building Improvements Visiting Nurse Service $98,572 $0 $0.00 Increase access/awareness to healthcare services for 5019 individuals Public Services 3.1 Delivery Expenses - Security Deposit Asst. Catholic Charities $5,832 $7,500 $0.00 Project delivery for #3 13 Community Drop In Center Southside Comm Ctr $13,613 $16,600 $0.00 Playground equipment for childcare and community play space / I&R Service Human Services Coalition $20,000 $201,830 $0.00 Support for the Call Center 15 Building for the Future Southside Comm Ctr $28,292 $16,000 $0.00 Provide hardware and software for computers used in computer lab to serve 25 LMI individuals 16 Immigrant Services Catholic Charities $16,000 $21,455 $0.00 Case management for 80 immigrants to access employment, services, legal aid, etc 17 A+ Tuition Assistance BJM Enrichment Program $27,410 $131,875 $0.00 Scholarships for 10 academically vulnerable BJM students to attend Academic Plus 18 Career Pathways Challenge $38,500 $53,540 $0.00 Paid work, training and wrap-around services supports for 10 adults 19 Job Skills for Life Youth Farm Project $30,000 $39,267 $0.00 Stipends for 5 youth to gain entry level job skills 20 ReSET Job Training Expansion Finger Lakes ReUse $75,015 $154,447 $0.00 Training for 45 individuals in basic skills in technology and construction fields 21 Learning by Doing Supported Employment Learning Web $49,290 $5,500 $0.00 Job placement & support of 10 young adults in unsubsidized employment Administration 22 CDBG Admin. IURA $134, $0 $134, $134, Planning, administration and monitoring for the CDBG program 23 HOME Admin. IURA $36, $0 $36, $36, Planning, administration and monitoring for the HOME program Totals: $1,776,562 $18,823,708 $134, $36, $171, Minimum Required Set-aside of HOME funds for CHDO Activities: $55, Pub Serv Cap $100,746 CDHO Set-aside Funding (INHS 210 Hancock): $0.00 Requests $303,952 CHDO Setaside compliance: Y / N Shortfall -$203,206

4 2015 City of Ithaca HUD Entitlement Grant Action Plan Schedule Organizational Meeting Milestone Call for Funding Proposals Issued Mass mailing & Post on City website Public Information Meeting #1 Public Information Meeting #2 Date 8:30 AM on December 18, 2014 at the IURA Meeting, Council Chambers, City Hall January 7, PM, Wednesday, January 14, 2015 Council Chambers, City Hall 6-7 PM, Thursday, January 29, 2015 GIAC Funding Proposals Due Noon on Friday Neighborhood Investment Committee Meeting #1 8:30 AM on Friday, March 13, rd Floor Conference Room, City Hall Economic Development Committee Meeting # 1 3:30 PM. on Tuesday, March 10, 2015 Council Chambers, City Hall IURA Meeting #1 / Public Hearing #1 (public facilities & housing projects) 8:30 AM on Thursday, March 26, 2015 Council Chambers, City Hall IURA Meeting #1 / Public Hearing #1 con t. (public services & economic development projects) 8:30 AM on Monday, March 30, 2015 Council Chambers, City Hall Neighborhood Investment Committee Meeting #2 8:30 AM on Friday, April 3, rd Floor Conference Room, City Hall IURA Meeting #2 8:30 AM, Thursday, - April 2, 2015 Council Chambers, City Hall Economic Development Committee Meeting # 2 3:30 PM on Tuesday, April 14, 2015 Council Chambers, City Hall IURA Meeting #3 11:00 AM, Thursday, April 16, 2015 Council Chambers, City Hall IURA Meeting # 4 (if needed) Council Chambers, City Hall IURA Meeting # 5 (if needed) Council Chambers, City Hall Adoption of Draft Action Plan by the IURA April 27, 2015 Draft 2014 Action Plan Available (for 30-day comment period) Public Hearing # 2 - Planning & Economic Development Committee of Common Council Close 30-day comment period on Draft Action Plan Approval of 2015 Action Plan - Common Council No Later Than April 30 May 13, 2015, meeting begins at 6:00 PM June 1, 2015 at 12:00 noon June 3, 2015, meeting begins at 6:00 PM Latest update: 11/14 j:\community development\entitlement grants\cdbg 2015\outreach\draft schedule for 2015 action plan.doc

5 Ithaca Urban Renewal Agency Approved: XX/XX/XX 108 East Green Street Ithaca, New York (607) (607) (fax) DRAFT MINUTES ITHACA URBAN RENEWAL AGENCY Common Council Chambers, City Hall 8:30 A.M., Friday, Members: Excused: Staff: Public: Guests: Eric Rosario, Tracy Farrell, Karl Graham, Ellen McCollister (Common Council Liaison) Svante Myrick, Chris Proulx Nels Bohn, JoAnn Cornish, Lynn Truame, Charles Pyott None Joseph Bowes, Ithaca Neighborhood Housing Services (INHS) Susan Cummings, IURA Governance Committee I. Call to Order Vice Chair Farrell called the meeting to order at 8:38 A.M. II. Agenda Additions/Deletions None. III. Public comment (3 minute maximum per person) None. IV. Review of Draft Meeting Minutes: January 22, 2014 Graham moved, seconded by Rosario, to approve the January 22, 2015 meeting minutes, with no modifications. Carried Unanimously 3-0 V. INHS Report on Community Engagement Process for 210 Hancock St. Project & Preferred Schematic Plan J. Bowes Bowes briefly described the process that led to the selection of the preferred schematic plan being presented today. INHS hosted four community open house meetings, attracting a total of 250 attendees (approx. 30% from Northside and 48% from Fall Creek). Of the two design options, about 70% of attendees preferred the Street Scheme.

6 Bowes walked through some brief highlights of the proposed design: IURA Minutes Page 2 of 25 driveway would feel like a city street with landscaping and a sidewalk 12 for-sale townhouses (2-3 BR) and a large multi-family building with 53 apartments (with 3 common spaces and parking on the first floor) One community space would house an Early Head Start program, operated by Tompkins Community Action (allowing some of the project to be financed through low-income tax credits) Since the last time the IURA reviewed the project: o the multi-family building was broken up to appear as multiple buildings, with connections through upper-level bridges o a greenspace (park) was added to the main entryway into the large building o people can walk under the large building all way to Lake Avenue o Board of Public Works (BPW) expressed a willingness to agree to an easement, thereby allowing Lake Avenue to be redeveloped as a liveable, pedestrian/bike-oriented street, with a few parallel parking spaces and a playground north of walkway

7 Page 3 of 25 Farrell asked where people would enter the main building. Bowes replied there is one entrance in the center of the building, with another entrance on a plinth/raised patio space on the south. He added there would be one elevator for the four buildings, and a couple of loading spaces (possibly three). Graham asked why no 3-bedroom units are planned for the large building. Bowes replied partly because it works better in terms of the overall design, but also in response to the large waiting list for 1- and 2-BR units at the Breckenridge Apartments project (many of whom are seniors). Cummings asked if the building could be designed flexibly enough to permit 3-BR units, at some point in the future. Bowes replied, probably not, especially given the restrictions associated with the anticipated low-income tax credits. Cornish observed that the liveable street portion of Lake Avenue does not seem to have a very strong connection to the pathway that runs to Conley Park. She asked if there could be a stronger connection there. Bowes replied, possibly. Cornish suggested it would make more sense to situate the northwest leg of Lake Avenue on the other side of the playground, to unencumber it from the play area. Bowes replied he actually already asked the design team to explore that. It makes a lot of sense. Bowes went on to note the architecture of the project takes its cues from surrounding buildings, with something similar to a warehouse aesthetic for the large building. He added that because of the floodplain, all the buildings will be raised an additional five feet. Cummings suggested it would be helpful if someone could see in and out of the first-floor parking area, to make it more open and secure visually separated, but relatively open. Graham asked how many parking spaces there would be, per resident. Bowes replied there would be a total of 70 parking spaces, approximately one third of which would be concealed below the multi use building, with the remainder organized around the central street. Each townhouse would have one parking space. He noted the multi-family building requires a Zoning Variance for the on site parking deficiency. There would also be an adjacent bus stop (covered/sheltered), as well as some on-street parking spaces on Hancock Street and First Street. Given the variety of options, he believes parking availability should be sufficient. Cummings asked what the numeric parking space deficiency is. Bowes replied approximately 20% (or about 30 spaces) short of what the Zoning Code requires. The applicant considered some angled parking spaces, but those would actually have caused the project to lose parking spaces. The applicant is also discussing locating a designated Ithaca CarShare space nearby. Rosario strongly urged Bowes to pursue the Ithaca Carshare space to help alleviate some of the parking demand (two spaces would be even better).

8 Page 4 of 25 Cummings urged the applicant to ensure the project does not appear as a solid wall of development (like some other developments in the city) from the neighbors perspective. The negative impacts from the service alley (e.g., venting, noise) should also be minmized. Cummings expressed particular concern with the potential negative impacts along First Street (e.g., the large multi-family building will be taller than any other nearby buildings). She suggested the applicant explore different building configurations (e.g., one taller building, with other lower buildings) and she urged the applicant to make the building design/detailing as high-quality and interesting as possible (e.g., adding detailing around roof edges). Cummings also questioned if a single elevator would be sufficient. McCollister remarked that while height is certainly a factor to consider, it is completely secondary in importance to the overall architectural design (e.g., articulation, materials, contextuality). She is not sure having a taller building, with shorter buildings, would necessarily be the ideal solution. Farrell indicated it sounds like there is consensus that the project should have a well-articulated, beautiful design, with sensitivity to its massing, along with minimal visual and noise impacts. Cummings added that the rooftop mechanicals on the large building should have not fans. Bowes replied that each living unit would have a furnace and central air-conditioning, which would be located on the roof. The applicant is exploring ways of covering the roof with solar panels and airconditioning units, but a parapet wall would conceal them from the street. Cummings asked if any thought had been given to a roof garden. Bowes replied, no. Farrell suggested making the interior spaces in the large building as cross-functional and interconnected as possible. VI. Neighborhood Investment Committee (NIC) A. HOME Policies 1. HOME Definition of Income Policy Farrell moved, seconded by Rosario: HUD Entitlement Program HOME Definition of Income Policy WHEREAS, (c) of the 2013 HOME final rule requires participating jurisdictions (PJ) to select only one definition of income for each HOME-assisted program or rental project, and

9 Page 5 of 25 WHEREAS, pursuant to an executed agreement dated 2/14/13, the City of Ithaca authorized the IURA to act as lead agency to plan, administer, implement and monitor HUD Entitlement grant funds awarded to the City of Ithaca, and WHEREAS, IURA staff have prepared a Definition of Income Policy based upon standards and practices established by HUD, and WHEREAS, the IURA Neighborhood Investment Committee reviewed and discussed this draft policy at its February 13, 2015, meeting, and recommend the following; now, therefore be it RESOLVED, that the IURA, acting in its capacity of lead agency on behalf of the City of Ithaca hereby adopts the HOME Definition of Income Policy, dated February 13, Carried Unanimously HOME Minority & Women-Owned Business Enterprises (MWBE) and Section 3 Policy Farrell moved, seconded by Graham: HUD Entitlement Program HOME MWBE & Section 3 Policy WHEREAS, of the 2013 HOME final rule requires participating jurisdictions (PJ) to adopt policies regarding outreach to minorities and women and entities owned by minorities and women, and WHEREAS, pursuant to an executed agreement dated 2/14/13, the City of Ithaca authorized the IURA to act as lead agency to plan, administer, implement and monitor HUD Entitlement grant funds awarded to the City of Ithaca, and WHEREAS, IURA staff have developed a draft MWBE and Section 3 Policy based upon standards and practices established by HUD, and WHEREAS, the IURA Neighborhood Investment Committee reviewed and discussed this draft policy at its February 13, 2015, meeting, and recommend the following; now, therefore be it RESOLVED, that the IURA, acting in its capacity of lead agency on behalf of the City of Ithaca hereby adopts the HOME MWBE and Section 3 Policy, dated February 13, B. CHDO & CBDO Certifications Designation of INHS as CHDO Carried Unanimously 3-0

10 Page 6 of 25 Farrell moved, seconded by Graham: HUD Entitlement Grant Program 2015 Designation of INHS as CHDO WHEREAS, the Ithaca Urban Renewal Agency (IURA) has been designated by the City of Ithaca as the Lead Agency to develop, administer and implement the HUD Entitlement grant program, including funds received through the Home Investment Partnerships (HOME) program, and WHEREAS, grant recipients under the HOME program are termed Participating Jurisdictions (PJs), and WHEREAS, PJs must reserve not less than 15% of their HOME allocation for investment in housing to be developed, sponsored, or owned by Community Housing Development Organizations (CHDOs), and WHEREAS, each PJ must identify annually CHDOs that are capable of carrying out projects to address priority housing needs identified in the Consolidated Plan, and WHEREAS, a CHDO is a specific type of community-based nonprofit organization as defined in 24 CFR 92.2, and WHEREAS, a PJ may use HOME funds to provide special assistance to CHDOs, including: Project pre-development loans; Operating assistance; Use of HOME project proceeds; Capacity-building assistance; and WHEREAS, on January 31, 2015, Ithaca Neighborhood Housing Services, Inc. (INHS) submitted materials documenting their qualification and requested renewal of their designation as a CHDO and CBDO by the IURA, and WHEREAS, at their February 13, 2015 meeting, the Neighborhood Investment Committee of the Ithaca Urban Renewal Agency compared submitted materials against CHDO criteria and recommends the following; now, therefore be it RESOLVED, that the IURA, acting in its capacity as the Lead Agency for the Participating Jurisdiction of the City of Ithaca, hereby renews its designation of Ithaca Neighborhood Housing Services, Inc. as a CHDO for the 2015 Action Plan. Carried Unanimously 3-0

11 Page 7 of Designation of Historic Ithaca as CBDO Farrell moved, seconded by Graham: 2015 IURA Designation of Historic Ithaca, Inc. as Community-Based Development Organization (CBDO) WHEREAS, the Board of Historic Ithaca Inc., (Historic Ithaca) seeks designation by the Ithaca Urban Renewal Agency (IURA) as a Community-Based Development Organization (CBDO), and WHEREAS, the City of Ithaca has designated the IURA to administer the City s HUD Entitlement Program that oversees Community Development Block Grant funds awarded to the City, and WHEREAS, an eligible category of CDBG activities is a Special Activity by CBDO, that offers certain advantages, such as exemption from the 15% expenditure cap otherwise applicable to public service activities, authorization to carry out new housing construction (normally prohibited with CDBG funds), and discretion to allow income generated by a CDBG-funded activity to not be considered CDBG program income, and WHEREAS, the following four tests established at CFR Title must be met to qualify under a category of Special Activity by CBDOs: 1. The entity qualifies as a CBDO, including the 51% board membership test; 2. The CBDO will undertake an eligible project; 3. That the CBDO will carry out the funded activity directly or with an entity other than the grantee; 4. That the CBDO will not carry out a prohibited activity, and WHEREAS, a CBDO must maintain at least 51% of its governing body s membership to be made up of any combination of the following: Low- and moderate income residents of its area of operation Owners or senior officers of private establishments and other institutions located in its area of operation Representatives of low- and moderate-income neighborhood organizations located in its area of operation, and WHEREAS, a CBDO must have as its primary purpose the improvement of the physical, economic, or social environment of its geographic area of operation, with a particular emphasis on the needs of low- and moderate-income persons, and WHEREAS, the project undertaken by the CBDO must qualify as one or more of the following project types: neighborhood revitalization; community economic development; energy conservation project; and

12 Page 8 of 25 WHEREAS, at their February 13, 2015, meeting, the Neighborhood Investment Committee compared Historic Ithaca, Inc. with CBDO eligibility requirements as documented in the attached materials and staff review of bylaws and organizational documents and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that Historic Ithaca, Inc. meets the requirements for eligibility as a CBDO, and be it further RESOLVED, that the IURA hereby designates Historic Ithaca, Inc. as a Community-Based Development Organization (CBDO). Carried Unanimously Designation of Greater Ithaca Activities Center (GIAC) as CBDO Farrell noted the Committee discussed GIAC s board composition, since there were some questions about which categories some board members fell into; however, the Committee eventually concluded that the board members did fall into the appropriate categories (and there was even some thought that some board members may fall into more than one category). It was suggested that the IURA should raise the subject with GIAC and recommend adding new board members who fall into CBDO categories. Farrell moved, seconded by Rosario: 2015 IURA Designation of GIAC, Inc. as Community-Based Development Organization (CBDO) WHEREAS, the Board of Greater Ithaca Activities Center (GIAC), Inc., seeks designation by the Ithaca Urban Renewal Agency (IURA) as a Community-Based Development Organization (CBDO), and WHEREAS, the City of Ithaca has designated the IURA to administer the City s HUD Entitlement Program that oversees Community Development Block Grant funds awarded to the City, and WHEREAS, an eligible category of CDBG activities is a Special Activity by CBDO, that offers certain advantages, such as exemption from the 15% expenditure cap otherwise applicable to public service activities, authorization to carry out new housing construction (normally prohibited with CDBG funds), and discretion to allow income generated by a CDBG-funded activity to not be considered CDBG program income, and WHEREAS, the following four tests established at CFR Title must be met to qualify under a category of Special Activity by CBDOs: 1. The entity qualifies as a CBDO, including the 51% board membership test; 2. The CBDO will undertake an eligible project; 3. That the CBDO will carry out the funded activity directly or with an entity other than the grantee;

13 Page 9 of That the CBDO will not carry out a prohibited activity, and WHEREAS, a CBDO must maintain at least 51% of its governing body s membership to be made up of any combination of the following: Low- and moderate-income residents of its area of operation Owners or senior officers of private establishments and other institutions located in its area of operation Representatives of low- and moderate-income neighborhood organizations located in its area of operation, and WHEREAS, a CBDO must have as its primary purpose the improvement of the physical, economic, or social environment of its geographic area of operation, with a particular emphasis on the needs of low- and moderate-income persons, and WHEREAS, the project undertaken by the CBDO must qualify as one or more of the following project types: neighborhood revitalization; community economic development; energy conservation project; and WHEREAS, at their February 13, 2015, meeting, the Neighborhood Investment Committee compared GIAC, Inc. with CBDO eligibility requirements as documented in the attached materials and staff review of bylaws and organizational documents and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that GIAC, Inc. meets the requirements for eligibility as a CBDO, and be it further RESOLVED, that the IURA hereby designates GIAC, Inc. as a Community-Based Development Organization (CBDO). C. Committee Chairperson Report Carried Unanimously 3-0 Farrell remarked that the IURA has been funding its Hospitality Employment Training and Work Preserve Job Training programs by virtue of their CBDO status. IURA Community Development Planner Lynn Truame recently found evidence that HUD requires these kinds of job training programs to demonstrate they have an actual job placement for program participants. The IURA will therefore need to make sure it examines this issue closely in the future and determine how its job training programs are fulfilling this HUD requirement.

14 Page 10 of 25 VII. Governance Committee (GC) A. Procurement of Independent Contractors 1. Legal Services Rosario moved, seconded by Farrell: 2015 Procurement of Independent Legal Services: Geldenhuys WHEREAS, in accordance with IURA procurement policy and regulations contained in 24 CFR 85.36, the IURA issued a Request for Proposals (RFP) for legal services on January 7, 2015, and WHEREAS, the following four proposals were received: Mariette Geldenhuys; Richard Ruwsick; Sharon Sulimowicz; Pannone, Lopes, Devereau & West, LLC, and WHEREAS, the IURA currently contracts with Mariette Geldenhuys and Richard Ruswick for legal services, and WHEREAS, Mariette Geldenhuys submitted a proposal to continue providing legal services to the IURA at a maximum billing rate of $200 per hour, and WHEREAS, the IURA staff is highly satisfied with the quality of legal services provided by Geldenhuys, and WHEREAS, IURA staff reviewed the proposals against the RFP criteria and recommends selection of Mariette Geldenhuys, and WHEREAS, the 2015 IURA budget recommended a total authorized contract amount of $23,000 for general legal services, and WHEREAS, the IURA Governance Committee reviewed this matter at its February 20, 2015 meeting 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 extension for independent contractor legal services with Mariette Geldenhuys, Attorney and Mediator, at a maximum hourly rate of $200 per hour with the total amount not to exceed $18,000, and be it further

15 Page 11 of 25 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 Procurement of Independent Legal Services: Ruswick WHEREAS, in accordance with IURA procurement policy and regulations contained in 24 CFR 85.36, the IURA issued a Request for Proposals (RFP) for legal services on January 7, 2015, and WHEREAS, the following four proposals were received: Mariette Geldenhuys; Richard Ruswsick; Sharon Sulimowicz; Pannone, Lopes, Devereau & West, LLC, and WHEREAS, the IURA currently contracts with Mariette Geldenhuys and Richard Ruswick for legal services, and WHEREAS, Richard Ruswick submitted a proposal to continue providing legal services to the IURA at a maximum billing rate of $185 per hour, and WHEREAS, the IURA staff is satisfied with the quality of legal services provided by Geldenhuys, and WHEREAS, IURA staff reviewed the proposals against the RFP criteria and recommends selection of Richard Ruswick, and WHEREAS, the 2015 IURA budget recommended a total authorized contract amount of $23,000 for general legal services, and WHEREAS, the IURA Governance Committee reviewed this matter at its February 20, 2015 meeting 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 extension for independent contractor legal services with Richard Ruswick, Attorney at Law, at a maximum hourly rate of $185 per hour with the total amount not to exceed $2,000, subject to an exclusion on the cap for legal services on any low-income housing tax credit project where the borrower agrees to pay the IURA s legal costs, 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.

16 Page 12 of Procurement of Independent Legal Services: Sulimowicz WHEREAS, in accordance with IURA procurement policy and regulations contained in 24 CFR 85.36, the IURA issued a Request for Proposals (RFP) for legal services on January 7, 2015, and WHEREAS, the following four proposals were received: Mariette Geldenhuys; Richard Ruswsick; Sharon Sulimowizc; Pannone, Lopes, Devereau & West, LLC, and WHEREAS, the IURA currently contracts with Mariette Geldenhuys and Richard Ruswick for legal services, and WHEREAS, Sharon Sulimowicz submitted a proposal to continue providing legal services to the IURA at a maximum billing rate of $140 per hour, and WHEREAS, the IURA staff is interested to diversify contracted legal services, and WHEREAS, IURA staff reviewed the proposals against the RFP criteria and recommends selection of Sharon Sulimowicz, and WHEREAS, the 2015 IURA budget recommended a total authorized contract amount of $23,000 for general legal services, and WHEREAS, the IURA Governance Committee reviewed this matter at its February 20, 2015 meeting 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 for independent contractor legal services with the Law Office of Sharon M. Sulimowicz, at a maximum hourly rate of $140 per hour with the total amount not to exceed $3,000, subject to an exclusion from the cap for legal services on a low-income housing tax credit syndicated project when the borrower agrees to pay the IURA s legal costs, 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 3-0 Rosario noted that the IURA has typically only worked with two attorneys; however, IURA staff believes it would make sense to have a third attorney available, to benefit from a more diverse base of legal consulting expertise and ensure enough redundancy to avoid any potential delays.

17 Page 13 of 25 Cornish added having three attorneys would also help avoid encountering any conflicts of interest. Graham disclosed that his employer, Alternatives Federal Credit Union (AFCU), has a business relationship with the Law Office of Sharon M. Sulimowicz; however, he himself has no relationship with the company. 2. Community Development Consulting Services Rosario moved, seconded by Graham: 2015 Procurement of Independent Consultant Services: H. Sicherman & Co., Inc. WHEREAS, in accordance with IURA procurement policy and regulations contained at 24 CFR the IURA issued a Request for Proposals (RFP) for community development consulting services, including loan underwriting services, on January 9, 2015, and WHEREAS, the RFP resulted in receipt of one proposal from H. Sicherman & Co., Inc., and WHEREAS, the IURA currently contracts with H. Sicherman & Co., Inc. for community development consulting services, and WHEREAS, H. Sicherman & Co., Inc. submitted a proposal to continue providing community development consulting services at a maximum hourly rate of $164/hour, with loan underwriting services provided at $135/hour, and WHEREAS, the IURA staff is highly satisfied with the quality of services provided by H. Sicherman & Co., Inc., and WHEREAS, the 2014 IURA budget recommended a total authorized contract amount of $12,000 for community development consulting services; now, therefore, be it RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel, to execute a contract extension for independent contractor community development services with H. Sicherman & Co., Inc. at a maximum hourly rate of $164 per hour with the total amount not to exceed $12,000, 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 3-0

18 Page 14 of Minute-Taking Services Rosario moved, seconded by Graham: 2015 Procurement of Independent Minute-Taking Services: Charles Pyott WHEREAS, Mr. Charles Pyott has been providing the IURA with minute taking services to the IURA as an independent contractor since July 8, 2011, and WHEREAS, the annual contract for his services expires on February 28, 2015, and WHEREAS, Pyott has submitted a proposal to continue to provide minute-taking services at a rate of $18.35 per hour, a 1.9% increase from 2014 rates, and WHEREAS, the IURA staff is highly satisfied with Pyott s performance, and WHEREAS, the 2014 IURA budget recommends an authorized amount of $5,000 for minute taking services; now, therefore be it, and WHEREAS, at their February 20, 2015 meeting the Governance Committee considered this matter and recommended the following; now, therefore, be it RESOLVED, that the IURA Chairperson is hereby authorized, upon review of IURA legal counsel, to execute a one-year contract extension for independent contractor minute-taking services with Charles Pyott at a rate of $18.35 per hour with the total amount not to exceed $5,000, and be it further RESOLVED, that the source of such funds shall be derived from non-cdbg funds. B. HUD Entitlement Program Carried Unanimously Natural Leaders Initiative s Job Readiness Internship Program (#16, 2013) Request for Schedule Extension Rosario explained that some extenuating personal circumstances prevented the program from expending its funding in the originally alotted timeframe.

19 Page 15 of 25 Rosario moved, seconded by Graham: Amend Funding Contract for Cornell Cooperative Extension s Natural Leaders Initiative Program (2013 Project #16) WHEREAS, Cornell Cooperative Extension received funding as part of the 2013 Action Plan for an employment readiness program, and WHEREAS, the Program, as originally designed, was intended to use CDBG funds to provide training, support, and mentorship for four Natural Leaders Initiative (NLI) graduates to serve as Program Assistants and develop job readiness skills, and WHEREAS, four NLI graduates have successfully completed the Program and received the planned services, and WHEREAS, due to personal circumstances, three of the original participants completed fewer Program hours than originally anticipated, leaving a surplus of unexpended funds in the amount of $2, as of December 31, 2014, the expiration of the contract period, and WHEREAS, the staff of NLI have requested an extension to the contract to allow the spend down of these remaining funds, which will be utilized to provide services to a fifth Program participant, and WHEREAS, this request was not received in time to be formally voted on at the February 13, 2015, Neighborhood Investment Committee meeting, but was discussed by that committee and recommended for approval, and WHEREAS, the Governance Committee has reviewed the request and the NIC recommendation at their February 20, 2015 meeting and recommended the following, now, therefore be it RESOLVED, that the IURA hereby approves the request to extend the end date of the contract to August 31, 2015 with Cornell Cooperative Extension for the Natural Leaders Initiative Program (2013 project #16), and be it further RESOLVED, that the IURA has determined that this action does not constitute a Substantial Program Amendment under the Citizen Participation Plan of the City of Ithaca, and as such does not require a public hearing or approval of Common Council, and be it further RESOLVED, that the IURA Chairperson, upon advice of the IURA Attorney, is hereby authorized to execute all necessary and appropriate documents to implement this resolution. Carried Unanimously 3-0

20 Page 16 of Southside Community Center Gym Acoustics Award of Construction Contract (#4, 2013) Rosario explained that no resolution was generated for this agenda item, since IURA staff is now recommending the action be deferred. He noted the IURA sought three responses to its RFP, with a budget of $17,000; however, only one price quote of $43,000 was received. The IURA now needs to re-bid the project to comply with procurement requirements. Rosario added that any amount over $25,000 for the project cost would trigger a program amendment and require a Public Hearing, so staff is recommending simply rolling the project into the 2015 Action Plan for consideration to fund at a higher amount. Truame noted that the Southside Community Center will need to determine if the project is still something worth pursuing, balancing it against the Center s other needs. Farrell recalled a discussion, some time ago, of a study to identify Southside Community Center s infrastructure needs. Bohn replied he believes the Triad Foundation was going to fund a feasibiliy analysis, but it was not ultimately completed Funding Allocation Levels for CDBG & HOME Programs

21 Page 17 of 25

22 Page 18 of 25 C. Consent to Designation of Planning & Development Board ( Planning Board ) as Lead Agency for Environmental Review of Proposed 210 Hancock Street Project Rosario explained that the Committee discussed this subject at length while it recognizes the Planning Board is best-qualified to perform the environmental review, the Committee was concerned the IURA would not have enough input into the process. City of Ithaca Senior Planner Lisa Nicholas assured the Committee that the IURA would remain an involved agency, and would be able to review all the project materials and communicate any concerns to the Planning Board. Rosario moved, seconded by Graham: Consent to Lead Agency Designation for 210 Hancock Street Project WHEREAS, 6 NYCRR Part 617 of the State Environmental Quality Review Law and Chapter of the City Code, Environmental Quality Review, require that a lead agency be established for conducting environmental review of projects in accordance with local and state environmental law, and WHEREAS, State Law specifies that for actions governed by local environmental review, the lead agency shall be that local agency which has primary responsibility for approving and funding or carrying out the action, and WHEREAS, the City of Ithaca Planning and Development Board has one pending application for site plan approval for redevelopment of 210 Hancock Street from Ithaca Neighborhood Housing Services, Inc., and WHEREAS, the Planning Board is anticipated to seek to act as lead agency for the environmental review of a proposed site plan for the 210 Hancock St. project, and WHEREAS, the applicant is proposing to construct a mix of approximately 50 apartments, 12 forsale townhouses and 8,500 square feet of commercial lease space on a 2-acre parcel located in the B-2a zoning district, and WHEREAS, the project is a Type I Action 176-4(h)[2], (k), and (n) under the City of Ithaca Environmental Quality Review Ordinance and the State Environmental Quality Review Act and is subject to environmental review and a variances for height and parking, and WHEREAS, if the IURA consents to lead agency designation of the Planning Board the IURA will maintain the status of an Involved Agency for the environmental review of this action, and WHEREAS, it is appropriate for an Involved Agency to provide the Lead Agency with observations and concerns about the potential environmental impact of the proposed action, especially comments relating to the IURA s area of expertise, and

23 Page 19 of 25 WHEREAS, at their February 20, 2015 meeting, the IURA Governance Committee commented on the extensive and well-designed INHS community engagement process for this project and briefly discussed the resulting preferred schematic design, and WHEREAS, the IURA Governance Committee supports further refinement of the schematic plan to enhance integration of the proposed project into its surrounding neighborhood, especially regarding the 4-story buildings along First Street; now, therefore, be it RESOLVED, that the IURA hereby consents to the designation of the City of Ithaca Planning & Development Board as lead agency for the environmental review of the proposed redevelopment of 210 Hancock Street, and be it further RESOLVED, that the IURA Neighborhood Investment Committee is hereby requested to review the Full Environmental Assessment Form (FEAF) for this project and develop draft comments, if appropriate, to mitigate any potential negative environmental impacts of the proposed project for possible communication to the Lead Agency. Carried Unanimously 3-0 D. Request from Rochester s Cornerstone Group for Funding Support for Potential Downtown Affordable Housing Project (on the former Tompkins County Public Library site) Rosario moved, seconded by Graham (SUBSEQUENTLY WITHDRAWN): Funding Interest Downtown Affordable Housing Project at N. Cayuga Street WHEREAS, Rochester s Cornerstone Group, Ltd. (Cornerstone) is one of four developers invited by Tompkins County to submit a proposal to acquire and redevelop the former Tompkins County Public Library property located at N. Cayuga Street, and WHEREAS, the proposal including a financing plan is due by March 20, 2015, and WHEREAS, Cornerstone proposes to construct an approximately 70-unit affordable senior rental housing project that will possibly incorporate Lifelong into the project, and WHEREAS, Cornerstone is working in conjunction with the Cayuga Housing Development Corporation, (CHDC) who will manage the project, and WHEREAS, CHDC is an affiliate organization of the Ithaca Housing Authority, and WHEREAS, there is a severe shortage of affordable rental housing in the City of Ithaca, and WHEREAS, Cornerstone plans to submit an application in December 2015 to secure 4% by-right tax credits and tax-exempt bonds to finance the project, and

24 Page 20 of 25 WHEREAS, the applicant currently lacks site control, so a 2015 HOME application to the IURA would raise significant project feasibility concerns, and WHEREAS, 2016 HOME funds cannot be committed to a project until environmental review has been completed and a release of funds is issued by HUD, approximately September 2016, and WHEREAS, proceeds from the Housing Development Action Grant (HODAG) managed by the IURA are considered miscellaneous income and do not require HUD approval, and WHEREAS, construction and management of affordable rental housing is an eligible use for HODAG proceeds, and WHEREAS, the IURA Government Committee considered this matter at their February 20, 2015 meeting and recommended the following; now, therefore, be it RESOLVED, that the IURA Director of Community Development is hereby authorized to submit a non-binding letter of interest for possible loan funding support of up to $200,000 for an approximately 70-unit affordable senior housing project located at the site of the former Tompkins County public library. Rosario explained that Cornerstone is proposing 70 units of senior housing and has asked if the IURA would be interested in supporting the project. Cornerstone indicated that without some kind of City/IURA funding for the project, it would be very unlikely to obtain the tax credits it seeks. The Committee agreed the project would be a significant opportunity for adding low- to moderateincome housing in Ithaca. Bohn noted that Cornerstone is applying for 4% by-right low-income tax credits matched with taxexempt bond funding to finance the project; but if there is no documented local support for the project, the financing for the project would be in serious jeopardy. Bohn explained that Cornerstone is only asking for a soft letter of interest at this point, and not a binding commitment. Graham remarked that as a member of the community group that opposes the project, he has serious reservations about expressing support for it. Farrell noted that even a non-binding letter of support would necessarily place the IURA on the record as having given its support to the project, which she would prefer not to do. Rosario agreed that a letter of support would essentially constitute an IURA decision on the project. Graham announced he would abstain from consideration of the project. Farrell indicated she would not feel comfortable expressing support for the project until she has at least had the opportunity to review a fully-developed proposal.

25 Page 21 of 25 Bohn suggested one alternative approach could simply be to state in writing that if the project is selected by Tompkins County, the IURA would be interested in having it apply for funding. Farrell agreed that is a better approach. Bohn noted that IURA staff would generate a letter to that effect. Rosario moved to withdraw the resolution, seconded by Graham. E. Review of IURA Financials: January 2015 Carried Unanimously 3-0 Rosario remarked that all the grant programs are moving forward, except the Southside Community Center. Truame added that the Emergency Domestic Violence Shelter Rehab program may be delayed. New York's State Historic Preservation Office (SHPO) indicated it would not approve one element of the project; however, the contractor already performed the work. If the work is irreversible, the project sponsor will need to repay the money to the state. Rosario noted that the IURA project spend-down ratio is good. The lease payments are also in good shape. F. Committee Chairperson Report None. VII. Economic Development Committee (EDC) A. HUD Entitlement Program: Funding Request by Downtown Ithaca Alliance (DIA) for Downtown Business Boost Program Program Amendment to 2014 Action Plan Bohn explained that the DIA proposal was conceived in response to many comments and expressions of frustration by Commons businesses regarding the construction delays associated with the Commons Repair & Renovation Project. The purpose of the program would be to help businesses that are struggling primarily due to the construction. It would provide them with marketing assistance, resulting in a completed marketing project. The program would provide both a short-term and long-term benefit by working with the businesses one-on-one to identify a project they would like to pursue. The EDC believes it would be a good use of funds.

26 Page 22 of 25 Graham moved, seconded by Rosario: 2014 Action Plan Program Amendment #3: Downtown Business Boost Program WHEREAS, the Downtown Ithaca Alliance (DIA) requests $7,500 in CDBG funds to support the Downtown Business Boost program intended to upgrade social media and internet business marketing of at least 20 downtown street level businesses to retain and grow existing businesses, and WHEREAS, reconstruction of the Ithaca Commons pedestrian mall is entering its third year of construction and DIA seeks to mitigate the adverse impact of on-going construction on downtown businesses, and WHEREAS, results of January 2015 DIA survey completed by 55 businesses indicate that foot traffic and sales in 2014 declined from 2013 for most downtown businesses, and WHEREAS, approximately two-thirds of surveyed retailers reported that sales revenues were down in 2014 at a time period when overall sales tax revenue in the city increased, and WHEREAS, CDBG funds must be used to meet a national objective, such as benefit to low- and moderate-income persons, defined as a person earning no more than 80% of the area median income, adjusted for family size, and WHEREAS, direct technical assistance to micro-enterprise businesses owned by low- and moderate income (LMI) persons is an eligible CDBG activity, and WHEREAS, a microenterprise is defined as a business having five or fewer employees, one or more of whom owns the business, and WHEREAS, DIA anticipates that at least 10 of the 20 downtown business participants in the program will qualify as LMI microenterprises, and WHEREAS, the program will offer up to ten (10) hours of professional technical support services to each participant business to accomplish a discrete project to better utilize social media and/or the internet to market the business, and WHEREAS, CDBG funds will be matched by $7,500 and in-kind services valued at over $5,000, and WHEREAS, the IURA is authorized by the Citizen Participation Plan governing the HUD Entitlement Grant program to adopt non-substantive amendments to the Action Plan, and WHEREAS, a change to use of CDBG funds for a new activity that is allocated $25,000 or less is not considered a substantial amendment to the Action Plan and can be approved by the IURA, and

27 Page 23 of 25 WHEREAS, $100,000 in funds earmarked to provide partial loan guarantees to downtown businesses through the Downtown Construction Loan Program (#3, 2013) remains unobligated, and WHEREAS, as of 12/31/14, an unobligated balance of $1,011,000 is available in the Community Development Revolving Loan Fund (CD-RLF), and WHEREAS, the Economic Development Committee discussed this matter at it December 12, 2014 and February 13, 2015 meetings and recommended the following; now, therefore, be it RESOLVED, that the Ithaca Urban Renewal Agency hereby approves the following non-substantive program amendment to the 2014 Action Plan: Project name: Subrecipient: Amount: up to $7,500 Downtown Business Boost Downtown Ithaca Alliance Match funding: at least $7,500 Funding source: CDBG eligibility: National objective: Use of CDBG Funds: Outcome: Community Development Revolving Loan Fund Provide technical assistance to owners of microenterprises per (o) Low- and moderate-income (LMI) limited clientele Technical assistance to at least 10 businesses that qualify as LMI microenterprises. A LMI micro-enterprise is a business that has 5 or fewer employees, including owner(s), and where the owner(s) earn 80% or less of the area median income adjusted for family size. 20 downtown microenterprise businesses accomplish discrete projects to improve on-line business marketing of street-level downtown businesses through the internet and/or social media. B. Request for Release of Certain Collateral J.G. McGuire, Inc. Loan (PB-LF #5) Carried Unanimously 3-0 Bohn explained that the request was made by a guarantor of the Lot 10 loan, who had put up her personal vehicle as collateral and would now like to be released from the obligation. She is no longer associated with the business. Bohn noted that the Lot 10 loan is current and the business seems past any potentially risky stage in its development.

28 Page 24 of 25 Rosario moved, seconded by Graham: J.G. McGuire, Inc., dba Lot 10 Bar & Lounge Release of Certain Collateral (PB-LF #5) WHEREAS, the owner of a 2004 Toyota Matrix vehicle pledged as collateral for repayment of an $64,500 IURA loan issued to JG McGuire, Inc., dba Lot 10 Bar and Lounge (Lot 10) in 2012, requests release of the vehicle lien, and WHEREAS, the IURA loan is secured by the following collateral and financial guarantees: Collateral: 1. 2 nd lien on FF&E purchased from Wildfire Restaurant, Inc st lien on all newly acquired FF&E, inventory and other business assets 3. 1 st security lien on 2005 Dodge Dakota truck 4. 1 st security lien on 2004 Toyota Matrix Guarantors: Justin McGuire and Mathew Riis, each individually. Dan Kiely, $2,000, individual limited financial guarantee, and WHEREAS, Lot 10 has achieved their job creation goal and is current on loan repayments, and WHEREAS, the outstanding balance on the IURA loan is $40,661 as of January 31, 2015, and WHEREAS, Lot 10 has submitted financial information showing the business is profitable, and WHEREAS, the blue book value of the pledged 2004 Toyota Matrix is $3,337, and WHEREAS, at their February 17, 2015 meeting the Economic Development Committee reviewed this matter, and recommended the following; now, therefore be it RESOLVED, that the IURA hereby releases a security lien on a 2004 Toyota Matrix vehicle that was pledged as security for repayment of the IURA loan issued to JG McGuire, Inc., and be it further RESOLVED, that the IURA Chairperson is authorized, subject to review by IURA legal counsel, to execute any and all documents to implement this resolution. Carried Unanimously 3-0

29 Page 25 of 25 IX. Other New/Old Business A. IURA Chairperson Report None. B. Common Council Liaison Report None. C. Staff Report Bohn reported that the EDC is currently working on the details of the downtown Hilton Canopy Hotel property sale agreement. The project received final Site Plan Approval at the Planning and Development Board s February 2015 meeting. D. Next Meeting Dates: March 19 th & March 26 th, 2015 X. Adjournment The meeting was adjourned by consensus at 10:22 A.M. Minutes prepared by C. Pyott, edited by N. Bohn. END j:\community development\admin files\minutes\iura\2015\ iura minutes - draft nb.doc

30 Proposed Resolution Ithaca Urban Renewal Agency March 26, 2015 Property Disposition, approval of a purchase agreement with Lighthouse Hotels, LLC for E. MLK Jr./E. State Street to facilitate an urban renewal project WHEREAS, on June 26, 2014 the IURA designated Lighthouse Hotels LLC (Lighthouse) as a qualified and eligible sponsor, pursuant to 508 of General Municipal Law, to undertake an urban renewal project for an in-fill urban hotel project on the 300 block of E. MLK Jr./E. State Street, subject to certain project requirements, and WHEREAS, Lighthouse proposes to construct a $19 million, seven-story, 123-room Canopy by Hilton hotel along with an approximately 2,000 square foot commercial lease space on a project site located north of the Carey Building on parcels currently used for public and private surface parking on the 300 block of E. MLK Jr./E. State Street (Urban Renewal Project), and WHEREAS, on November 5, 2014, the Common Council for the City of Ithaca authorized transfer of real property located at E. MLK Jr./E. State St. (tax parcel # ) to the IURA for the purpose of structuring a proposed sale agreement for an Urban Renewal Project subject to approval by the Common Council following a public hearing, and WHEREAS, Lighthouse seeks to acquire property located at E. MLK Jr./E. State Street from the Ithaca Urban Renewal Agency, and WHEREAS, an appraisal conducted by Midland Appraisal Associates, Inc. concludes the fair market value of the property located at E. MLK Jr./E. State Street is $1,800,000, and WHEREAS, on January 27, 2015 the City of Ithaca Planning & Development Board, acting as Lead Agency in the environmental review, determined that the proposed Urban Renewal Project will result in no significant impact on the environment and issued a Negative Declaration in accordance the City of Ithaca Environmental Quality Review Ordinance, and WHEREAS, the project site is located within the City of Ithaca Urban Renewal Project Boundary area, and WHEREAS, the purchase agreement shall contain the following essential terms: Job Creation: Creation and maintenance of at least 33 full-time equivalent jobs Wages/Salaries: Living Wage Positions Creation and maintenance of a minimum of 16 full-time employment positions paid at least a living wage as defined by AFCU (currently $12.62/hour including employer paid health insurance benefits) and as such living wage changes from time to time. Housekeeping Staff Each employee in the housekeeping department to be paid at least 120% of the State minimum Page 1 of 4

31 Employment & Wage Reporting: Hardship Modification: Urban Design: Mitigation of loss of public parking to adjacent enterprises: Participation in IURAsponsored job training and/or job placement programs: wage, as such minimum wage changes from time to time (NYS minimum wage is currently $8.75/hour). Quarterly employment and wage reporting shall be submitted quarterly to Seller for five (5) years. If Purchaser in full compliance with employment, wage and job training commitments for three (3) consecutive years as determined by Seller, Purchaser shall be released from further employment and wage reporting. Purchaser may apply to Seller for a modification to the number of FTE jobs to be created, the number of full-time living wage jobs to be created and the job training requirements based on demonstrated economic hardship. Required minimum wages for housekeeping staff are not subject to a hardship modification. Prohibit use of the following exterior building façade materials unless approved by the Planning & Development Board: EIFS, such as Dryvit or other stucco-like finishes Concrete masonry units, including split face cement block Publicly designate three (3) 15-minute loading spaces for public use that provides an ADA accessible route to the CSMA building elevator entrance Offer the hotel as a job training site for participants in the Hospitality Employment Training Program (HETP). The hotel shall make at least one on-the-job training opportunity available per year for each of the first 5 years of operation of the hotel. Such training opportunity shall require no out-ofpocket expense to be paid by the hotel. Provide hotel job postings to the IURA of entry-level jobs available for initial hiring for the hotel prior to filling the jobs. The IURA will distribute employment postings to appropriate IURA-sponsored job training and placement programs. Conditions for Sale: Acquisition of adjacent parcel within 10 days of the date of the purchase agreement, submit proof of binding site control of the adjacent parcel # that is necessary for construction of the project. Site Plan approval within 180 days of the date of the purchase agreement, submit proof of final site plan approval. Building Permit issuance within 365 days of date of the purchase agreement, submit proof of building permit at least authorizing construction of the full foundation. Project financing within 365 days of the date of the purchase agreement, submit proof of financing and equity sufficient to construct the project. Purchase Price: $1,800,000 Deposit: $25,000, of which $10,000 is a nonrefundable deposit. Page 2 of 4

32 Purchase Financing: Loan amount: $1,375,000 Term: 255 months (20 years + 15-month construction period) Repayment: Interest-only payments for 15 months, then level monthly payments to fully amortize the loan over 240 months. No prepayment penalty for partial of full prepayment of the loan. Interest Rate: City s cost of funds plus 20 basis points (note: 3.15% as of 3/5/15) Rate Adjustment: Every 5 years during amortization period Interest Rate Index (City s cost of funds): Yield rate on a AA tax-exempt bond as reported on the Market Card published by BMO Capital Markets at The initial index rate shall be based on a 20-year AA tax-exempt yield (note: 2.95% as of 3/5/15). The applicable index at each rate adjustment shall equal the yield rate on the AA taxexempt bond for a term equal to the remaining term of the amortizing loan at the time of rate adjustment. Collateral: 2 nd mortgage lien on project property Financial Guarantors: Satisfactory unlimited personal financial guarantees from Neil H. Patel, Hitesh Patel, Vinodbhai Patel, Amit Patel and Jayesh Patel. In the event of a default after notice and a cure period, the interest rate will increase by 100 basis points until the default is remedied. WHEREAS, the primary objective of the City of Ithaca Urban Renewal Plan (Plan) is to improve the social, physical and economic characteristics of the project neighborhood, and WHEREAS, one objective of the Plan is expansion and diversification of the economic base of the community to provide employment opportunities needed by its residents and to strengthen the tax base, and WHEREAS, the IURA Economic Development Committee considered this matter at their February 13, 2015 and March 10, 2015 meetings and recommended the following; now, therefore, be it RESOLVED, that the IURA hereby finds that the submitted project proposal from Lighthouse Hotels LLC for construction of a 123-room hotel project as partially documented by their site plan submission to the City of Ithaca Planning Board, dated January 22, 2015, and further defined by the above purchase agreement terms will improve the social, physical and economic characteristics of the downtown neighborhood thereby furthering the goals and objectives of the Urban Renewal Plan, and be it further RESOLVED, that the IURA hereby authorizes sale of property located at E. MLK Jr./E. State Street (tax parcels # and # ) to Lighthouse Hotels LLC to undertake the proposed Urban Renewal Project subject to conformance with the above listed sale agreement terms, and be it further Page 3 of 4

33 RESOLVED, that pursuant to 507 of General Municipal Law, the proposed purchase agreement is subject to approval by the Common Council of the City of Ithaca following a public hearing, and be it further RESOLVED, that IURA Chairperson, subject to advice from IURA legal counsel, is hereby authorized to execute any and all agreements and documents necessary to implement this resolution pending endorsement by the Common Council. j:\community development\dispositions\324 east state street\reso iura approve p&s 324 e state to lighhouse hotels docx Page 4 of 4

34 BMO G Capital Markets BMO Capital Markets GKST Inc. 115 South LaSalle Street, 37th Floor Chicago, IL For Week Ending: GENERAL MARKET AAA YEARAAA AA..A.. Ins Market Card REPRESENTATIVE TAX-EXEMPT YIELDS REPRESENTATIVE MORTGAGE-BACKED YIELDS APPROXIMATE NEW AGENCY YIELDS* BANK CMO Mortgage-Backed QUALIFIED PACS..A.. AA Average Maturitt 2- Year 3- Year 5- Year Yield Coupon Yield Year Year Year Year Average Life BULLETS 2-YR 5-YR 10-YR YIELD CALLABLES 3 -YR/ 1-YR lx 3 -YR/ 1-YR 5 -YR/ 1-YR lx 5 -YR/ 1-YR 7 -YR/ 1-YR lx 7 -YR/ 1-YR *Representative state tax-exempt yields GOVERNMENT MARKET YIELDS MARKET INDICATORS Current Prior 12Month 12Month 30-Dal: Visible Suppll: Gold Week Week ffigb Low Day M $1, Day Bond Bu1:er Aver!!J:e Monel: Suppll: Year G.O. Rev. M Year Current Prior Year Week Week Year ll.8t N/A ear One Month 0.17 Prime Rate 3.25 Three Months Three Months 0.26 Primary Credit Rate Six Months 0.35 Six Months 0.37 Fed Funds Year 0.45 Please note: When printing this document, adjust your printer settings to "Landscape" to view entire contents. my.!

35 Proposed Resolution IURA March 26, 2015 Modification #2 to IURA Loan to The Art and Found, LLC (CD-RLF #33) Whereas, on March 1, 2015, the Art and Found submitted a request for a loan modification to reduce monthly loan repayments and extend the term of the loan, and Whereas, on August 29, 2012, the IURA issued a 5-year, $15,000 loan at 3% interest to The Art and Found, a Limited Liability Company (LLC) formed by Heidi Brown and Olivia Ashline-Royale to start-up and operate a retail clothing business at 171 The Commons, Ithaca, NY, and Whereas, the resulting monthly loan payment is $270.49, and Whereas, the IURA loan is secured by a 1 st security lien on all business assets including inventory, and personal guarantee of Olivia Ashline-Royale, and Whereas, on November 29, 2012, the IURA approved a request to modify the loan agreement to facilitate a split between the two founding members with Olivia Ashline-Royale becoming the sole member of the LLC, and Whereas, The Art and Found business has been operating since September 2012, a time period when The Commons has been under reconstruction, and Whereas, the business has not achieved financial projections contained in the initial business plan, and Whereas, The Art and Found lost its lease effective March 1, 2015 and has relocated the business to 110 N. Cayuga Street, and Whereas, The Art and Found is current on loan payments through January, 2015, but owes February and March payments, and Whereas, The Art and Found requests reducing the loan repayment to $125 per month and extending the term to amortize the debt and resuming repayments beginning April 1, 2015, and Whereas, a revised business plan projects modest profitability after making monthly IURA loan payments of $125, and Whereas, at their March 10, 2015 meeting, the IURA Economic Development Committee reviewed this matter and recommended the following; now, therefore, be it RESOLVED, that the IURA hereby approves the request from the Art and Found LLC for a 2 nd modification to the IURA loan as follows: 1. Defer loan payments due in February and March 2015; 2. Revise the loan payment due to $125/month beginning April 1, 2015; 3. Extend the term of the loan to fully amortize the debt (approximately 80 payments), and be it further RESOLVED, that the IURA Chairperson, upon the advice of IURA legal counsel, is hereby authorized to execute any and all necessary and appropriate documents to implement this resolution. j:\community development\loans\cd-rlf\33-art and found\loan modification #2\reso iura art & found loan mod # doc

36 Proposed Resolution IURA March 26, IURA Designation of Ithaca Neighborhood Housing Services as a Community-Based Development Organization WHEREAS, the Board of Ithaca Neighborhood Housing Services (INHS) seeks designation by the Ithaca Urban Renewal Agency (IURA) as a Community-Based Development Organization (CBDO), and WHEREAS, the City of Ithaca has designated the IURA to administer the City s HUD Entitlement Program that oversees Community Development Block Grant funds awarded to the City, and WHEREAS, an eligible category of CDBG activities is a Special Activity by CBDO, that offers certain advantages, such as exemption from the 15% expenditure cap otherwise applicable to public service activities, authorization to carry out new housing construction (normally prohibited with CDBG funds), and discretion to allow income generated by a CDBG-funded activity to not be considered CDBG program income, and WHEREAS, the following four tests established at CFR Title must be met to qualify under a category of Special Activity by CBDOs : 1. The entity qualifies as a CBDO, including the 51% board membership test; 2. The CBDO will undertake an eligible project; 3. That the CBDO will carry out the funded activity directly or with an entity other than the grantee; 4. That the CBDO will not carry out a prohibited activity, and WHEREAS, a CBDO must maintain at least 51% of its governing body s membership to be made up of any combination of the following: Low- and moderate income residents of its area of operation Owners or senior officers of private establishments and other institutions located in its area of operation Representatives of low- and moderate-income neighborhood organizations located in its area of operation, and WHEREAS, a CBDO must have as its primary purpose the improvement of the physical, economic, or social environment of its geographic area of operation, with a particular emphasis on the needs of low- and moderate-income persons, and WHEREAS, the project undertaken by the CBDO must qualify as one or more of the following project types: neighborhood revitalization; 1

37 community economic development; energy conservation project; and Whereas, at their February 13, 2015, meeting, the Neighborhood Investment Committee compared INHS with CBDO eligibility requirements as documented in the attached materials and staff review of bylaws and organizational documents and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that INHS meets the requirements for eligibility as a CBDO, and that the 210 Hancock Street redevelopment project qualifies as an eligible CBDO activity, and be it further RESOLVED, that the IURA hereby designates INHS as a Community-Based Development Organization (CBDO) and their 210 Hancock project as eligible for CDBG funding under the category of Special Activities by CBDOs. 2

38 108 East Green Street Ithaca, New York (607) Ithaca Urban Renewal Agency To: NI Committee Members From: Lynn Truame, Community Development Planner Re: Application to Renew Designation of INHS as a CBDO Date: March 13, 2015 The Board of Ithaca Neighborhood Housing Services ( INHS ) has applied for Community Based Development Organization (CBDO) status for the 2015 Action Plan. They intend to submit a funding application for the 210 Hancock redevelopment project for the 2015 Grant. The following table compares the requirements for CBDO status against information submitted by Historic Ithaca, Inc.: Requirement per (c)(1) Staff Analysis Organizational Purpose: YES Organized under state law to undertake Mission is to revitalize Ithaca s neighborhoods community development activities encouraging stability and diversity and to assist low- to moderate-income people in obtaining Board Composition: A. Maintain at least 51% of governing body either LMI residents of area of operation, owners or senior officers of private establishments and institutions in the service area, or representatives of LMI neighborhood organizations in the service area. B. No more than 33% of the governing body may be elected officials. Board Membership: Members of the board must be nominated and approved by membership or permanent governing body, except that up to 1/3 of the board may be appointed or be elected officials. Purpose of the Organization: Have as its primary purpose the improvement of the physical, economic, or social environment of its service area with particular emphasis on LMI persons Organizational Status: Must be either non-profit or for-profit with only incidental monetary benefit for its members. quality housing on a long-term basis. YES 8 of the 12 members (67%) meet CBDO composition requirements. YES 17% are elected officials YES By-laws, Article II, Section 2. Members elected by the Board. YES Primary purpose is the improvement of the physical environment of the service area, with a particular emphasis on the needs of LMI persons YES 501(c)(3)

39 Assets: Must not be subject to reversion of assets to the grantee upon dissolution, except for assets related to specific grants. Contracting: Must be free to contract for goods and services from vendors of its own choosing YES See paragraph 12 of Certificate of Incorporation YES INHS does not currently have a procurement policy of any kind. A draft policy was submitted, which will be considered by the Board in April CBDO Recommendation INHS appears to meet the required qualifications for designation as a CBDO. According to HUD s CDBG Desk Guide, new construction of housing is an eligible CBDO activity if there is a documented need within the community for new affordable housing that is accessible to existing or planned jobs. The 210 Hancock Street site is located on a public transit route and within easy walking distance of multiple employment opportunities.

40 Proposed Resolution Ithaca Urban Renewal Agency March 26, 2015 Minor Program Amendment, 2013 Action Grant, Project #14 WHEREAS, the Southside Community Center (SSCC) was awarded funding in the 2013 Entitlement Grant cycle for acoustic improvements to the SSCC gymnasium (2013 CDBG project #14) and WHEREAS, the amount of funding reserved for that project from the 2013 Entitlement Grant was $17,000, which was based upon the estimated cost of the acoustic improvements, and WHEREAS, when the work was put out for proposals in February 2015, a single response was received, placing the project at a cost of $43,528, and WHEREAS, rather than pursue additional funding for the project, the Southside Community Center Board and staff have requested that the unexpended balance of funds originally allocated to the acoustic improvement projects be instead allocated to the installation of a system of security cameras at the SSCC, the purpose of which is to deter nuisance crime activities around the exterior of the building, including in the adjacent park, and to increase the public confidence in the security of the facility, and WHEREAS, at their March 13, 2015 meeting, the Neighborhood Investment Committee considered this request and agreed that this would be an appropriate use of the funds, now therefore be it RESOLVED, that the IURA hereby approves the reallocation of funds for 2013 CDBG Project #14 from acoustic improvements in the Southside Community Center gymnasium, to the acquisition and installation of a system of security cameras at the exterior of the Southside Community Center, and be it further RESOLVED, that the final amount of funding allocated to the security camera project will not exceed the unexpended balance of funds originally awarded to the acoustics project, and will be established based upon a newly secured, firm, quotation for the work, which will be submitted for review and approval to Steve Nann, Building Maintenance Supervisor for the City of Ithaca, and be it further RESOLVED, that the IURA Chairperson is hereby authorized, subject to advice of IURA legal counsel, to execute any and all necessary documents to implement this resolution.

41 Proposed Resolution Ithaca Urban Renewal Agency March 26, 2015 Consent to Lead Agency in Environmental Review Lake Street Public Park Enhancement Project (project # Action Plan) WHEREAS: 6 NYCRR Part 617 of the State Environmental Quality Review Law and Chapter of the City Code, Environmental Quality Review, require that a lead agency be established for conducting environmental review of projects in accordance with local and state environmental law; and WHEREAS: State Law specifies that, for actions governed by local environmental review, the lead agency shall be that local agency which has primary responsibility for approving and funding or carrying out the action; and WHEREAS: the applicant proposes to undertake enhancements to improve the accessibility and functionality of the park. Proposed work includes adding a concrete walkway and falls overlook, installing metal guardrails behind the existing stone retaining wall, installing a movable gate for controlled access to the Ithaca Falls Natural Area, replacing the existing bike racks, adding an accessible curb ramp, improving the landscaping, and other site improvements; and WHEREAS: the City of Ithaca Planning and Development Board has a pending application for site plan approval for proposed park enhancements at Lake Street Park by the City of Ithaca, applicant and owner; and WHEREAS: The project has been awarded funding from the IURA and requires approvals from the Board of Public Works (BPW), Common Council and the Planning & Development Board; and WHEREAS: The project will undergo a separate environmental review in compliance with the National Environmental Protection Act (NEPA) as required for projects assisted with the HUD Entitlement grant funds, and WHEREAS: this is a Type I Action under the City of Ithaca Environmental Quality Review Ordinance ( CEQRO ) B.(h)[2] and [3] and the State Environmental Quality Review Act ( SEQRA) (11) and is subject to environmental review; now, therefore, be it RESOLVED: that the Ithaca Urban Renewal Agency does hereby consent to the City of Ithaca Planning & Development Board acting as Lead Agency in the local environmental review for the proposed Lake Street Public Park Enhancement Project. j:\community development\admin files\agendas\iura\2015\3 march\lake street park la concurrence resoultion for common council 3 15.docx

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