It’s been a busy week. Let’s start by reviewing some of the entrants for the city’s affordable housing funds.
The Ithaca Urban Renewal Agency will be holding public hearings on March 16th and 23rd as part of the process to determine who will receive money from the Housing and Urban Development (HUD) grants awarded to the city. The 25 applicants, same number as last year, range from jobs training to community services to the development of affordable housing. All summed up, there’s $1.982 million requested, and $1.149 million available; that’s up from $1.85 million requested in 2016, with $1.54 million available (about $273,900 of that came from the returned funding for INHS’s cancelled project at 402 South Cayuga Street). In fact, the amount of money available is the lowest it’s been in a few years – in 2015, $1.78 million was requested out of $1.215 million available, just a little over two-thirds of the total. With the increasing requests, the chances for funding have gone down this year.
Without discounting the value of the other applications, the focus here will be on the real estate development projects. For the record, writing about a project is neither an endorsement or opposition from this blog.
1. The big new proposal coming out this year appears to be Lakeview Health Service’s plan for the corner of North Meadow and West Court Streets on the city’s West End. I expanded on the basics in a Voice article here, but for the blog’s sake, we’ll take a look at the finances.
In terms of leverage, it’s a pretty big project – a request of $250,000 towards a $20,081,186 project. However, keep in mind this project is only eligible for HOME funds and not CDBG (Federal Community Development Block Grants), and the city only has $295,245 in HOME funds to work with after overhead is taken into account – this is a pretty substantial request for something still in the conceptual stages.
The project fills a substantial by providing 50 units of affordable rental housing, all 1-bedroom units, in a 5-story building. Not only that, but half of those units would be set aside for those living with psychiatric disabilities. Ten of the general housing units would be available to those making 50-60% of area median income (AMI, about $27-$32k), with the other 40 going for less than or equal to 50% AMI. Those units will be interspersed with the general affordable housing. The special needs residents will be considered case-by-case; it’s for those who are generally independent, but may need assistance in stressful or difficult times. Lakeview will maintain an office on the first floor that will be staffed 24/7.
Some retail space will also be available on the first floor, which helps to cover the operational expenses, and meets the city’s goal of a more dense and vibrant West End. 17 parking spaces will be provided, so it’s expected the residents will utilize bikes and mass transit. The design will be slab-on-grade, with a deep foundation – soil in this part of the city is poor due to the high water table, so projects either have to be one or two floors with slab foundations, or they have to build enough floors to accommodate the costs of driving piles into the ground, in this case 80 feet down. This is something to keep in mind with the waterfront rezoning, as the soils are pretty similar.
The pro-forma assumes $730,300 in income in the first year after vacancies are noted, and about $313,500 in expenses, leaving a little over $416,800 for debt service. Everything goes up a little bit each subsequent year for inflation. The debt service is scheduled to last for 50 years.
Rochester’s PLAN Architectural Studios is the architect, so expect a modern design not unlike the cancelled concept plan for the Elmira Savings Bank site on West State and Meadow. The preliminary floor plan suggests the retail will face West Court Street rather than the Meadow/13 corridor.
As with many affordable projects, this one has a rather extended schedule due to the need to compete for public grants in tandem with private loans – funding applications are being submitted this year with loan awards during 2018, including the IURA’s. Construction would be from October 2018 to April 2020, with rent-up shortly thereafter. It’s odd to think this likely won’t even show up in the 2020 census, but we’re starting to get that far into the decade.
2. Meanwhile, Habitat for Humanity is continuing to move forward with their 4-unit townhouse plan at 402 South Cayuga. The non-profit has agreed to purchase the land from the city for $32,000, a below-market price that the city is fine with accepting, given Habitat’s plans for 4 owner-occupied affordable townhomes for those making 30-60% area median income (AMI). They are requesting $80,000 towards the $270,000 cost. It appears that Habitat’s splitting it into two phases, two units in each – given the small size of their organization, it’s a sensible approach. $540,000 for ~5200 SF of units is also quite a deal, at about $104/SF, about half the cost of an INHS project. Habitat does have volunteer labor that it can utilize.
Habitat is hoping to parlay the Morris Avenue two-family they’re doing later this year into sustained interest and funding for Cayuga Street – attracting donors with one city project, who might be interested in donating time and dollars to the next one. Like with Lakeview, construction is likely on a 2018-2020 timeframe. They’re also only eligible for HOME funds, so either Lakeview or Habitat will not be getting their full request, possibly both.
3. On the economic development side, TCAction is requesting $84,200 towards their $8.25 million childcare center at 661-665 Spencer Road. The project is part of the Amici House plan and was approved by the city concurrently, but technically separate from the 23 units of vulnerable youth housing being provided next door.
Named for a late, long-time TCAction employee Harriet Giannelis, the project helps fund the site acquisition – one of the land parcels is owned by the county, and TCAction has a $184,000 purchase lease-back agreement (the county bought the land from a private owner, and they’re currently leasing it to TCAction), which will be paid off partly with the IURA funds. The new 7,010 SF childcare center will provide daycare and early-education programs (Head Start) to 40 low-income children. Although promising three new jobs in the application, TCAction expects 21 Full-time equivalent positions to be created. It’s easier to provide an employee’s lifetime income documentation for 3 staff vs. 21. Welliver will be the project contractor, so expect local union labor.
Most of the other funds come from county, state and federal grants – another $500,000 comes from a loan with M&T Bank.
4. Also on the economic side is Finger Lakes Re-Use’s expansion plan at 214 Old Elmira Road. the non-profit has refined their plans for a new mixed-use expansion, and plans to start the city’s formal project review process later this month. Some of the numbers have been tweaked a little bit, but the basic components are the same – Finger Lakes ReUse would work with Tompkins Community Action (TCAction) to bring a new 4-story, 26,100 square-foot (SF) building to FLR’s property at 214 Old Elmira Road. The first floor would expand FLR’s retail operation, while the upper floors would provide office space for FLR, and 22 units of transitional housing for formerly homeless individuals. Plans also call for an 8,100 SF warehouse for salvaged lumber/wood, and a 600 SF pavilion. 79 parking spaces are included in the project.
As with TCAction’s Giannelis Center, 9 FTE jobs are expected to be created by the $10 million project, but FLR promises to provide previous income documentation for 3. The monetary request from the CDBG funds is $100,000, and they will also be using Welliver. Welliver seems to be the safe choice when a developer wants subcontracted or direct local union labor.
The application states the $100k is going towards site acquisition, which I’m not fully following since they own the property and it doesn’t appear any new property is to be acquired. Perhaps the site has legal stipulations that have to be bought away? It’s not totally clear.
If I can be an architecture critic for a moment, I like the warm colors, but that largely blank east stairwell is kinda bleak. Maybe use those orange panels on that as well? Or another warm color?
Anyway, we’ll find what the IURA thinks; funding will be determined by the end of April, and formally awarded in June after the city’s Planning Committee signs off on the disbursement.