News Tidbits 4/8/17: Please Don’t Document-Dump on Fridays

8 04 2017

1. Let’s start off with some bad news. The town of Dryden planning board did not take too kindly to the Evergreen Townhouses proposal at 1061 Dryden Road outside Varna. The board denied recommendation for approval unless some stipulations are met first; some might be easier, like a vegetative buffer with the neighbors and a shared driveway. Others will be trickier – the board recommended removing all the solar panels and replacing them with electric heat pumps, and board members strongly encouraged reducing the number of units.

Not to downplay the value of heat pumps since they’ve become the preferred sustainable feature for projects going before local boards these days, but there is a substantial initial cost involved for their installation, and it takes a few decades for the energy savings to pay off. Some of the cost for the pumps can be balanced out through density of units, because some flat development costs (for example, the cost of land acquisition) can be distributed out; but fewer units with a more expensive feature is the classic “do more with less money” conundrum.

Let’s take a look at some numbers. Disclaimer, these are ballpark figures and every project has its nuances or other factors to consider, like tax rates, contractor bids and logistical costs.

The Village Solars heat pumps are a $50,000-$60,000 cost, $4,000-$5,000 per unit. Phase 1 didn’t have the heat pumps, but the later phases do, and those later phases are about $2 million-$3 million per 15,000-20,000 square-foot building, with 12-22 units depending on configuration. In the case of 1061 Dryden, each 6-unit string is about 10,800 SF (1800 SF per unit, no common areas), and given the $4.5 million total cost, we’re talking a ballpark estimate of around $750,000 per townhome string. If one assumes proportional costs for the heat pumps based off square footage, that’s $30,000-$40,000 per 6-unit string. So it is a higher incremental cost per string, and more of a burden per tenant. The Village Solars rent for $1600-$1650 for a three-bedroom, and the going rate for new units in Varna is about $1950 for a 3-bedroom, if the new townhomes at 902 Dryden is any indicator. The rent increase for the Village Solars was about $50/unit, but those units are smaller, so you’re probably looking at a larger amount, conservatively $75/unit, for the Evergreen units.

Going off those numbers, it looks like heat pumps are possible, although the units will likely be somewhat less affordable as a result. It isn’t clear if that disables the proposal, because it depends on imputed vacancy rates at different income levels, and whatever the required income is to make the necessary Return on Investment. However, the project would become less feasible if there are substantially fewer units and the construction cost per unit shoots up – because of the combination of flat vs. incremental expenses, taking away six units won’t drop the cost $750,000, it’ll be less. The cost of the solar panels is also an unknown, as are the costs of doing these revisions to please the board. The development team was not at the meeting, which is unfortunate; we’ll have to wait and see how this moves forward.

2. Speaking of the Village Solars, according to the latest minutes from the Lansing Town Board, Lifestyle Properties is exploring taking down some of the old Village Circle Apartments, and replacing them with new buildings. These older, 8,000-12,000 SF structures date from the early 1970s through the early 1980s, and have 8-10 units per building. Since the newer buildings are about 15,000-20,000 SF and tend to have 18-22 units, that could explain where the 423 units statistic came from last month – some of it comes from buildings on new sites, some are replacement buildings for existing structures.

3. The city Common Council held their monthly meeting, and signed off on the IURA sale of 402 South Cayuga to Habitat for Humanity with little debate, and while the TM-PUD for 323 Taughannock was a bit problematic due to some confusion with the minutes from the public hearing, the approval was carried unanimously. The project is now free to go before the Planning Board for State/City Envrionmental Quality Review, and the Design Review is considered complete.

Side note, the city’s four fire stations were renumbered. The old numbers hailed from the days before the stations consolidated in the 1960s and 1980s, and were confusing for many. Fire Station No. 9 (309 College Avenue in Collegetown) is now No. 2, insert joke here. Central Station (310 West Green Street) becomes Station 1- Central, Station 5 (965 Danby Road) becomes Station 3- South Hill, and Station 6 (1240 Trumansburg Road) becomes Station 4- West Hill.

4. Bucket list objective achieved – an interview with Jagat Sharma. Some will be in the Voice, maybe Friday afternoon of Monday morning; but rather than leave the excess on the proverbial cutting room floor, here were some portions left out of the piece for the sake of brevity, or because they’re too technical for the general audience:

Q: So, what’s your thought process when designing a building? Apart from necessities like zoning and client requirements, do you take cue from surrounding buildings, the environment…what are you thinking about as you sketch the first concepts of a new building?

JS: For infill projects, the sites are very narrow. My project at 409 Eddy, if I recall correctly, is a very narrow site. My clients had never hired an architect before, and it was a challenge to convince them. Most of them, they think how many rooms they can rent, so you give them a number, and you work it out, and you figure out the design from the surrounding context, how the buildings line up, how the window patterns line up, symmetry, scale. You lay out a plan for how the windows would fall, how would it match with the existing window lines on surrounding buildings. Frankly, back then (409 Eddy was built in the mid-1980s) there was not much context, many buildings were in poor condition, you had some brick buildings, but otherwise not much. You try to relate it to what you’ve done before, the streetscape, you try to change up things with color, bay windows, you play with that, organize everything in a symmetrical way. Later on, my later buildings in the past 10-12 years, I’ve begun to take more liberty, play with them [the designs] more, 3-D effects, projections, penthouses, balconies, corner windows and more glass. And at the street level, they’re more urban, they have colonnades, like 309 Eddy, it looks very nice. But all of them…if you’re the only actor on the stage, you’re playing your own thing. If you look at Collegetown, Eddy Street and up, 309, 303, 301, some are angled, they’re different materials – if you’re in the middle of those, you feel like you’re in a hill town, it’s a good feeling.

Q: And how would you describe your experience with working with the city and its various interests?

JS: You earn respect from them by being honest and sincere. I deliver what I say I do, we don’t change things at the last minute. The city is happy with that. I have a good relationship with the Planning Board, what they are looking for, they want good materials, detailing. The building department wants to make sure you meet the codes; we sit down and meet if we have different interpretations on how the code reads – but you have to work on it from day one. It takes time, building inspectors, commissioners come and go and you have to earn their respect each time by doing the right thing, don’t hide anything.

5. According to Matt Butler over at the Times, Lakeview Ithaca might be a little larger than initially anticipated. In a report on homelessness, he mentions a meeting attended by Lakeview’s CEO, who said the new building would have 56 affordable units (vs. the 50 previously reported in the IURA application), with 28 reserved for those with mental disability. A time frame of fall 2018 – fall 2019 is given for construction, somewhat slower than the April 2018 start reported in the IURA application.

6. A couple of interesting things to note from the ILPC Agenda for next Tuesday, apart from the usual stairs, porches and windows. One, 123 Eddy got a revamp in accordance with the commission’s design guidance – gone is the porch, and more detail was strongly encouraged. I still prefer the previously-approved design, but this is an improvement from the Craigslist ad.

Meanwhile, downstate businessman Fei Qi is finally heading back to the board with a plan for the historically significant but structurally deficient 310 West State/MLK Street. Previously, he wanted to do 3,800 SF of office space in a renovation partially financed by state tax credits, but it wasn’t funded and the office market is a bit lackluster in Ithaca anyway. At the time, residential was ruled out due to fire safety issues.

However, this new plan is a residential project. It’s a proposed 12-bedroom “co-op” living arrangement (Co-op? SRO [Single Room Occupancy]? Neither one is a terrible idea, although SROs have negative connotations). JSC Architects of suburban NYC (Fresh Meadows) would remove a rear chimney, put in new shingles, add a wheelchair ramp and skylights, along with the to-the-studs internal renovation. It’s an interesting plan, though the ILPC might be iffy on some of the details. We’ll see how it goes over.

7. If you all could pardon me on this, the city document-dumped Friday morning, and I don’t have the time at the moment for a full write-up. But the projects memo is one of the busiest I’ve ever seen. Here’s the brief summary:

A. McDonald’s would replace their existing 4,800 SF restaurant at 372 Elmira Road with a new 4,400 SF building.

B. Benderson Development wishes to renew approvals for a 14,744 SF addition to their shopping plaza at 744 South Meadow Street (this would be on the south end next to Hobby Lobby, where KMart’s garden center was years ago), and build a new 7,313 SF addition at the north end of the strip. Apparently, Ithaca’s a safe harbor in the ongoing “retail apocalypse”.

C. 323 Taughannock as noted above

D. DeWitt House is moving forward. With ILPC Design Approval (Certificate of Appropriateness) in hand, envrionmental review still needs to be conducted. Site plan review docs note it’s a $17 million project with a December 2017 – March 2019 construction timeframe.

E. Novarr/Proujansky’s 24-unit 238 Linden apartment project

F. 118 College Avenue, carried over from the previous month, and

G. Finger Lakes Re-Use, carried over from the previous month.

 

 





Hotel Ithaca Construction Update, 8/2016

30 08 2016

In case you missed it, I did an interview with owner/developer David Hart of Hart Hotels, which can be found on the Voice here. Here’s some of the material that didn’t make the final cut.

Q: So, let’s start with a little about you. Hart Hotels is family operation, yes?

DH: My dad was the founder of our company, my sisters and I have followed him as principals. But we have non-family members who have been with us for a long time that have been a driving force. This is our 30th year in business.

Q: This is actually the second phase, right? There was a modernization and renovation already completed in the lobby and hotel area, if my notes are right.

DH: The 61 rooms in the hotel tower, we renovated down to the studs. The main building above the lobby has another 19 rooms, original 1970s guestrooms, we renovated to the studs as well, a little over a year ago. Now we’re into phase 2, which is new construction, and some more renovations.

Q: I believe plans filed with this plan have a third phase, right? One that considers the possibility of a three-story hotel addition on the wing going up now, and a conference center?

DH: Nothing planned or approved right now.

Q: Further on that topic, some folks have expressed concerns that [the hotel boom] is not economically sustainable. A sort of fear of a hotel bust to follow the hotel boom. What would you say to address those concerns?

DH: One of the things that we’re lacking is a large format meeting space, a type of conference center. It’s unusual for a city the size of Ithaca to not have its own meeting space, so part of our overall market preference is inhibited by not having that space. On the other hand, it’s not uncommon for demand to outstrip supply on many weekends in Tompkins County or downtown Ithaca, so I don’t see the problem of oversupply on most Fridays and Saturdays throughout the year. So Sunday-Thursday business is where the boat needs to be lifted a little bit, especially with all the new rooms. Our meeting space will help that a little bit.

Q: As a major hotel operator, what would you say are the biggest advantages to being in Ithaca and specifically, downtown Ithaca, and what are the biggest challenges? What opportunities do you see over the next years? Where do see the Hotel Ithaca, in say, five years from now?

DH: Some of the hurdles are the seasonality, the winter vs. summer. The Finger Lakes are a popular destination, but the seasonality is harsher when the schools are out of session, we’re reliant on the interest the schools and colleges generate. Cornell and Ithaca College bring a lot of business to us. Sports, scholastic events, meetings, they drive a lot of demand from the routine list of activities in the school calendar. This is a strong region for hospitality, we’ve been in the Ithaca area for a while, the region continues to grow in popularity with the wineries, the cheesemakers, the distillers and craft beer-makers, those are all part of the things we have to sell and market and promote. And lake activity and recreation is also a part of our overall marketing and selling of the region. That translates to hotel room demand.

…In terms of expansions, sites in downtown are hard to come by and expensive, so I don’t know how much more new supply there will be downtown. If you look at 13, there have been new hotels, they’re fringe, limited-service, so we might see some growth out there, but there are a fair number of rooms and brands there so I don’t know how much more they can grow….

We want to be ready for graduation, have the building closed up by winter. The frame is being assembled offsite.

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