Ithaca Urban Renewal Agency 108 East Green Street Ithaca, New York 14850 (607) 274-6559 (607) 274-6558 (fax) AGENDA IURA EconomicDevelopmentCommittee 3:30PM,Tuesday,February9,2016 CouncilChambers,CityHall,Ithaca,NY I. Calltoorder II. Additionstoordeletionsfromtheagenda–introductionofnewmember III. Publiccomment(3minutemaximumperperson) IV. Reviewofmeetingminutes:December2,2015 V. NewBusiness A. RequestfromLAGRestaurant,LLCforloanassistanceforastartͲuprestaurantat404W. State/W.MLKJr.(CDͲRLF#40)Ͳresolution B. RequestfromSunnyDaysofIthaca,LLCforaloanmodification(CDͲRLF#37)Ͳresolution C. RequestfromSouthsideCommunityCenterInc.foratemporary6Ͳmonthsuspensionoflease obligationsat530W.BuffaloStreet–discussion VI. OldBusiness A. CommunityInvestmentTaxAbatementProgram(CIITAP)Ͳupdate B. HUDEntitlementGrant,FY2016processͲupdate VII. Reports A. IURAloanandleaserepaymentreport,December2015–review B. Loanpipeline C. Staffreport VIII. Adjournment(nextmeetingdate:3:30PM,Tuesday,March8,2016) If you have a disability and require accommodations in order to fully participate please contact the Ithaca Urban Renewal Agency at 274-6550, at least 48 hours prior to the meeting. Ithaca Approved:X/X/15 Urban Renewal Agency 108 E. Green Street Ithaca, New York 14850 (607) 274-6559 NOTE: Minutes were generated using an audio-recording only, so all attributions (607) 274-6558 (fax) may not be accurate. DRAFTMINUTES ITHACAURBANRENEWALAGENCY EconomicDevelopmentCommittee(EDC) 3:30PM,Wednesday,December2,2015 CommonCouncilChambers,CityHall,Ithaca,NY Present: DougDylla,HeatherHarrick,JenniferTegan,LeslieAckerman,ChristineLam Excused: ChrisProulx Staff: NelsBohn Guests: None I. CalltoOrder ChairDyllacalledthemeetingtoorderat3:31P.M. II. AgendaAdditions/Deletions None. III. PublicComments(3Ͳminutemaximumperperson)͸None. IV. ReviewofMeetingMinutes:July21,2015 Ackermanmoved,secondedbyTegan,toapprovetheJuly21,2015minutes,withno modifications.CarriedUnanimously5Ͳ0. V. NewBusiness A. RequestfromCareyBuildingAssociates,LLCforNonͲExclusiveUtilityEasement Across320Ͳ324E.StateStreet(ProposedHiltonCanopyHotelSite) BohnannouncedtheIURAreceivedarequestfromCareyBuildingAssociates,LLCforan easementtobringutilitiesfromSenecaWayintotheCareyBuilding.CareyBuilding Associates,LLCiscoordinatingitseffortswithLighthouseHotels,whichhasconsented totheeasement;andtheeasementhasbeenlaidoutinawaythatmeetstheneedsof bothparties.Itwouldprohibitconstructionabovetheundergroundeasementarea, whichwillhaveareasonablysignificantimpactonfuturedevelopmentpotentialand landusefortheproperty.Theproposedeasementwouldnotobstructordelaythe HiltonCanopyHotelprojectinanyway. IURAEDCMinutes December2,2015 Page2of10 BohnnotedtheIURAcurrentlyhasapurchaseandsaleagreementinplacewiththe HiltonCanopyHotel(LighthouseHotels),sohisonlyconcernwouldbetheimpactthe easementwouldhaveiftheIURAdidnotcloseonthatagreement,withalarge easementcuttingthroughbothproperties.BohnaskedLighthouseHotelsforanupdate onwheretheHiltonCanopyHotelprojectcurrentlystandswithfinancingand construction.Hereceivedverbalconfirmationthatfinancingat80%ofprojectcostis nowinplaceandtheprojecthasbeenthoroughlypricedout.Constructioncostsended upbeingsignificantlyhigherthananticipated,soLighthouseHotelsspentseveral monthsofvalueͲengineeringtoreducethem.Theprojectisexpectedtoclosein January2016. BohnnotedthereissomerisktotheIURA,shouldthehotelprojectnotmoveforward. TheeasementisbeinggrantedtoNYSEGanditwouldbepossibletorelocateit,if necessary—butatthecostofrelocationexpenses.Oneoftheeasement’sbenefitsis thatitwouldremoveoverheadwiresandplacethemunderground,whichwouldbea definiteenhancementforthedowntownarea.Itwouldalsoincludeanelectricalservice upgrade. Bohnrecommendedapprovingtheeasementrequest,subjecttocertainconditions: preservationofundergroundstormwaterdrainagefacilities;commitmenttoremovalof overheadwires;terminationofanyotherexistingeasements;assurancethatthe CommunitySchoolofMusicandArts(CSMA)willnotbenegativelyimpactedbythe easement;andwrittenconfirmationofLighthouseHotels’expectationtoclose. Dyllaaskediftheeasementwouldallowotherutilitiestousetheundergroundutility space.BohnrepliedthatitwouldbeopentoNYSEG,Verizon,TimeWarnerCable,and theFingerLakesTechnologiesGroup. BohnaddedthatheaskedCareyBuildingAssociates,LLCwhytwoseparateeasements crossingintothepropertyareneeded,andiftheycouldbeconsolidatedintoasingle easement.Thatremainsanoutstandingquestion. MovedbyHarrick,secondedbyLam: ApproveaUtilityEasementAcrossPropertyLocatedat 320Ͳ324E.StateStreettoRelocateUtilitiesUnderground WHEREAS,CareyBuildingAssociates,LLC,ownerofpropertylocatedat314Ͳ320E. State Street, requests the IURA to grant an underground utility easement to New YorkStateElectricandGas(NYSEG),Verizon,TimeWarnerCable,andFingerLakes Technologies Group across property located at 320Ͳ324 E. State Street to provide electricandcommunicationutilitiestoservetheCareyBuilding,theproposedHilton Canopyhotelproject,andanyotherpropertyadjoiningtheeasement,and IURAEDCMinutes December2,2015 Page3of10 WHEREAS, the route of the proposed underground easement will follow the approximaterouteofexistingoverheadelectriclines,and WHEREAS, on July 2, 2015, the IURA executed an agreement to convey title to propertylocatedat320Ͳ324E.StateStreettoLighthouseHotels,LLCtoundertakean approvedurbanrenewalprojecttoconstructasevenstoryHiltonCanopyhotel,and WHEREAS, conveyance of the parcel from the IURA to Lighthouse Hotels, LLC is subjecttosatisfactionofthefollowingconditions: 1. Acquisitionofadjacentproperty(taxparcel#69.Ͳ1Ͳ8); 2. Proofofprojectfinancing; 3. Issuanceofabuildingpermit,and WHEREAS,theutilityeasementwillprohibitstructurestobebuiltwithinthelimitsof theeasement,whichcouldimpairthevalueofthepropertyifLighthouseHotels,LLC doesnotacquiretheproperty,and WHEREAS, Lighthouse Hotels, LLC has provided a verbal project status report that construction cost has been finalized, a project financing commitment has been secured,andacquisitionoftheadjacentpropertyandissuanceofabuildingpermitis scheduledtooccurinthe1stquarterof2016,and WHEREAS, Lighthouse Hotels, LLC has provided written consent for the proposed easements;and WHEREAS,relocationofutilitiesundergroundimprovesthephysicalcharacteristicsof theurbanrenewalarea;and WHEREAS, at their December 2, 2015 meeting, the Economic Development Committeeconsideredthismatterandrecommendedthefollowing;now,therefore, beit RESOLVED, that the IURA Chairperson is hereby authorized, subject to review by IURA legal counsel, to execute an easement agreement to grant a nonexclusive easement to NYSEG, Verizon, Time Warner Cable, and Finger Lakes Technologies Groupforundergroundutilitiesacrosspropertylocatedat320Ͳ324E.GreenStreet (tax parcels #69.Ͳ1Ͳ1.3 and #69.Ͳ1Ͳ6.2) subject to satisfaction of the following conditions: 1. Provisionforcontinuedrightstomaintainanyexistingmunicipalwaterandsewer facilitieswhichcrosstheeasementarea; 2. Commitmentthatexistingutilitiesandtelecommunicationoverheadwiresat320Ͳ 324E.Statewillberelocatedunderground; IURAEDCMinutes December2,2015 Page4of10 3. TerminateanyportionofanyexistingNYSEGeasementat320Ͳ324E.StateStreet foroverheadutilitiesandremovaloftheexistingutilitypole; 4. ConfirmationfromCareyBuildingAssociates,LLCthattheCommunitySchoolof Music and Arts (CSMA), as an adjoining property owner to the easement who currently receives utility service from the overhead wires to be removed, will have rights to access underground electric and communication utilities in the easement at no cost to CSMA, and provided that any reasonable cost of such relocationbepaidbyCareyBuildingAssociates,LLC; 5. SubmissionfromLighthouseHotels,LLCofaCanopyhotelprojectstatusreport confirmingsatisfactoryprogresstowardsatisfyingtheconditionscontainedinthe saleagreementtoacquirepropertylocatedat320Ͳ324E.StateStreetfromthe IURA,andbeitfurther RESOLVED,thatIURAlegalcostsassociatedwiththisrequestshallbepaidbyCarey BuildingAssociates,LLC. CarriedUnanimously5Ͳ0 B. RequestfromCayugaGreen,LLCforVariousApprovalstoFacilitateRefinancingof CayugaGreenPlace,Locatedat131Ͳ135E.GreenSt.(CayugaGreen—PhaseII) BohnnotedtheIURAapprovedasimilarresolutioninJuly2015;however,theinitial lenderdidnotultimatelycloseonthatagreement.CayugaGreen,LLCsubsequently identifiedanewlender,FirstNiagaraBank,whichisaskingforfirstlienontheproperty (UrbanOutfitters)theIURAsoldtoCayugaGreen,LLC.ItisalsoaskingtheIURAtoallow CayugaGreen,LLCtograntleaseholdmortgagestoFirstNiagaraBankforthelease interestinthegroundfloorofCayugaStreetGarage(Coltivare,MerrillLynch)and Cinemapolis.BohnindicatedhedoesnotbelievethereisariskfortheIURAtograntthe leasesascollateral.ThetransactionwouldalsoenabletheIURA’sUrbanOutfittersloan tobepaidoff.CayugaGreen,LLChassatisfiedthegoalsoftheprojectandmetallits obligations.IthasalsoremainedcurrentonallitsIURAdebtthroughoutthelifeofthe loan. MovedbyTegan,secondedbyHarrick: CayugaGreenPhaseII—RequestfromCayugaGreen,LLCforVariousIURA ApprovalstoFacilitateProjectRefinancing(Parcels‘E’) WHEREAS,CayugaGreen,LLC,seekstorefinanceprojectdebtontheCayugaGreen Placeprojectlocatedat131Ͳ135E.GreenStreet(Property),alsoknownasParcelEof theCayugaGreenproject,andseeksIURAapprovaltosubordinateanIURAloanto newfinancing,and IURAEDCMinutes December2,2015 Page5of10 WHEREAS,proposed project refinancing in July through Rialto Mortgage Financing, LLCdidnotproceedtoclosing,and WHEREASCayugaGreen,LLChasnowsecuredaloancommitmentfromFirstNiagara Banktorefinanceprojectdebt,and WHEREAS, the IURA sold the Property to Cayuga Green, LLC in 2007 and issued a $760,000loanforaportionofthepurchaseprice,whichloanissecuredbya5thlien