News Tidbits 2/20/16: Looking Forward, Looking Back

20 02 2016

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1. The city of Ithaca released their 2015 Planning Board summary as part of the planning board agenda this month. Here’s some highlights –

Construction costs for projects filed in 2015 are expected to total $66.8 million. In something of a rarity, Cornell was not the big financier this year, only being attached to the $12 million Novarr/Johnson School project at 209-215 Dryden Road. The two most expensive projects are the $26.5 million Tompkins Financial Corporation HQ, and the $13.77 million 210 Hancock project.

The only other project that exceeded $2 million is the first phase of Chain Works, valued at $8.65 million for phase one, and deep in the throes of review. But for some reason, Chain Works also appears in the 2014 summary of site plan filings, so one of these reports is inaccurate. Chain Works was definitely being discussed in summer 2014, although I’m not sure when the site plan was filed.

Only 95 housing units with 155 bedrooms were approved in 2015, the majority of which were with 210 Hancock (66 units, 89 bedrooms). This is down from 129 units approved in 2014. Only 8 are owner-occupied units – the 7 owner-occupied townhomes with 210 Hancock, and 1 2-bedroom market-rate home. The other projects were the 12-unit 215-221 West Spencer Street, the 6-unit 707 E. Seneca project, 3 duplexes at 804 E. State, and the 5-unit 128 West Falls Street project.

The city pulled in $154,709 from site plan filings, down from $168,214 in 2014.

Rather uncomfortably, several projects – 416 E. State, State Street Triangle, the Herson Wagner funeral home project, a 4-unit apartment building at 525 West Green Street, and 4-story apartments at 815 South Aurora project were all withdrawn from consideration for various reasons, 5 of 16 of the site plans filed. For comparison, only 2 of the 27 filed projects were withdrawn in 2014, the cancelled boutique hotel at 339 Elmira Road, and the student housing project at 7 Ridgewood.

Although there’s less housing and the overall value of site plan filings are down, new commercial square footage is up, mostly due to Tompkins Financial’s new 110,000 SF. The increase was from 22,000 SF of retail and 3,800 SF of office space approved in 2014, to 20,563 SF of retail and 110,000 SF of office space approved in 2015.

On future projects, the city expects about 915 units of housing on the Chain Works site over 10-15 years. During 2016, the board expects that the Old Library site, the Travis Hyde proposal for Ithaca Gun, and phase III of Cornell’s Hughes Hall renovations will come up for review.

 

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2. Looks like Cornell is starting to do some long-term planning of its housing needs. Over the course of the upcoming Spring semester, the university is expected to engage with students, staff/faculty and the wider community as it starts formulating its housing master plan for the next decade. Look at it as two things – an assessment/checkpoint on how the North and West Campus systems are doing since being completed in the early 2000s and late 2000s, and a gauge for where, when and what form new housing should take.

The nine-month meeting and planning process will be led by NYC-based U3 Advisors, who are also handling implementation of Cornell’s NYC Tech Campus currently under construction. Since 2013, U3 has also a consultant for Cornell’s plans for the long-incubating redevelopment of East Hill Plaza into the new urbanist East Hill Village.

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3. Over in Dryden, Tompkins-Cortland Community College (TC3) has announced plans for a $5.5 million daycare center. Initial plans call for enough room for 80 children, and would allow the school to provide daycare for infants. Most of the children are expected to be the progeny of students, but staff and faculty would also be welcome to enroll their kids, and even members of the community if there’s still room in the new facility.

Funding to the project will come in a 50-50 split being state dollars and private donations, of which about $2 million has already been secured. A further $1 million campaign is expected to be launched by June.

The project is expected to be located on the west side of the main campus building, on undeveloped land between the classrooms and the pond. Construction is expected to begin in 2017. Approvals would have to be granted by the town of Dryden’s town board. As far as I’m aware, the Voice did not received the press release that the Times and Journal did, and no information is yet available on who the architect is, or the approximate square footage.

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4. For those hoping for something big in the Planning Board meeting next month, well, keep waiting. Kinda. The new items on the agenda have already been covered – the Maplewood Development by Cornell (the northwest corner and two of the 3 to 4 story-apartment buildings fall at least partially into Ithaca city — just draw an imaginary line straight north of Vine Street to get the visual), and the Maguire waterfront proposal. Quick reminder, the general order is: sketch plan, Declaration of Lead Agency, Public Hearing, Declaration of Environmental Significance, BZA if necessary, prelim approval, final approval. Here’s the formal rundown:

I. Agenda Review
II. Special Order of Business – Adequacy Discussion – Chain Works District
III. Privilege of the Floor
IV. Subdivision review

A. Preliminary and final approval for the revision of lot lines permitting Habitat for Humanity’s “Breaking Ground” duplex at 208-210 Third Street

B. Preliminary and final approval for the revision of lots lines at INHS’ 210 Hancock – this would divide the parcel into for-rent and for-sale portions, which is crucial for funding allocation (government funding is earmarked either for rent, or for sale housing, but not both).

V. Site Plan Review

A. Brindley Street Bridge – Declaration of Lead Agency in concurrence with the Board of Public Works
B. Hilton Canopy Hotel – Project Update, Conditions of Site Plan Approval, and Requested Changes
C. Parking spaces for the new duplex at 424 Dryden – Public Hearing, Declaration of Env. Signif, and recommendations to the BZA
D. Cornell Hughes Hall renovations – Declaration of Lead Agency and Public Hearing
E. Cornell Ag Quad renovations – Declaration of Lead Agency and Public Hearing
F. Sketch Plan – Cornell Maplewood Apartments
G. Sketch Plan – Maguire Automotive Project at Carpenter Business Park

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5. In case you missed it this week, the Washington Post wrote about a just-published California state Legislative Analyst Office study that found that communities that welcomed market-rate housing construction tended to have lower displacement of lower-income households than communities that did not add new housing.

A copy of the study can be found here. It might come off as counter-intuitive or too simple of a breakdown of supply and demand, but it appears that wealthier households tend to pursue the newest housing, and as shown with projects like the Lofts @ Six Mile Creek and Seneca Way, brand-new units do command a premium when they first hit the market. As time goes on and newer units come online, those well-off individuals tend to migrate towards the newer housing, while the aging housing moderates in price, making it affordable to downmarket income brackets.

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But, if there’s little new housing added, then the process breaks down. The moderating effect of age is much weaker, and the market encourages displacement as newcomers seek housing from the limited supply available. The California state study notes that inclusionary zoning appears to have only a small impact; even in communities with inclusionary policies in place, a lack of growth of market-rate housing resulted in greater displacement.

Note that none of this advocates for the tearing down of affordable housing, like the Elmira Savings Bank debacle. But it is a strong argument in support of the re-use of underutilized properties, like old industrial buildings, parking lots and so forth, where the cumulative effect of new supply can yield moderation in the market’s increasing costs. If affordable housing isn’t feasible for a site (for instance, the Waterfront with its high development costs), market-rate is not a bad alternative.

Looks like that editorial Jeff Stein wrote back in April holds a lot of weight.





The Future is Now? Another Look At Form-Based Zoning

9 02 2016

It looks like plans are starting to come together for the form-based zoning that is being considered for the Town of Ithaca. Form Ithaca, whom have been working pretty closely with the town on their new plan, released the results of a study on their website last month. Based on the date of the PDF (the 22nd), it looks like it went up before the neighborhood plan meeting, and the write up on that meeting will make it into the Voice at some point.

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One of the key things that the code seeks to establish is to simplify the code from the current use-based setup (called ‘Euclidean” after the Euclid, Ohio court case that established its legality) to something based on size and shape. The current setup handles mixed-use projects poorly, and PDZ and PUDs create a whole lot of paperwork and eat up time the town could spend handling other issues. Another problem is that the Euclidean zoning purposely establishes work areas away from residential zones, which encourages car-dependent, parking-heavy types of development, the kind that are more expensive to maintain, more environmentally demanding, and increasingly out of favor, especially with younger demographics.

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The above map is a rough idea of where Form Ithaca feels development would be best directed. The darker greens are either prohibited (O1, Preserved Land) or strongly discouraged (O2, Reserved Rural). Then from G1 to G3S, you have increasing levels of support for development and dense development. The only “new” neighborhoods established by the G3 zone are the South Hill Center (the 96B/King road intersection) and Cornell’s Maplewood Park east of the city. As already mentioned in the Maplewood writeup, Cornell’s pursuing a PDZ for the new urbanist project they have planned because their timing is a little quicker than Ithaca town’s – waiting for the new zoning would delay the project.

The plan also calls for retrofitting suburban areas, G3S. The 96B/South Hill Corridor,East Hill Plaza, and the city’s Southwest Corridor and Waterfront are targeted. The 96B corridor is currently undergoing a pedestrian and traffic study in part because the town wants to figure out how to protect pedestrians and encourage pedestrian-oriented development in what’s currently a suburban layout.

Recently, there have been privately-developed plans that haven’t been on board with these ideas. On the one end of the spectrum, early incarnations of the Troy Road housing development that was cancelled, which called for 200+ units in a “Restricted Growth Corridor”, a proposed type of zoning that suggests clustered development with substantial open space requirements. The project had been redesigned and reduced to fit 130 units in cluster zoning, but it was then cancelled. On the other end of the spectrum, the town is currently weighing a proposal to purchase agricultural easements on Eddy Hill Inc.’s farmland, which comprises most of the yellow on the southwest side of the town. That would prevent development in an area where development is thought to be more suitable.

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The above image is a proposed zoning setup for the South Hill center. Neighborhood Edge defines more typical single-family home development (T3), Urban Neighborhood towards a Fall creek type of density (T4, townhouses, duplexes/triplexes, closely spaced single-family homes), and Main Street would be more akin to the State Street Corridor (T5), first floor commercial or other active uses with apartment and condos on the couple floors above.

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There’s also an image regarding the Waterfront plans, but given the Maguire proposal, I’d rather wait until the dust settles and there’s a better idea of what’s going to happen.

This is all conceptual, and there are pros and cons – while it encourages less driving and establishes an activity hub in the town, it’s been noted that mixed-use can be more expensive to develop, which may be passed on to the occupants. Also, rezoning can impact current owners and create some tensions. Telling someone that density is encouraged in view of their house may not go over well, just as the landowner planning to sell to a housing developer may not be amused to find himself at odds with the town’s plans. But, given the issues facing Ithaca and Tompkins County, proposing something that attempt to address affordability, demographic and environmental issues is better than proposing nothing.

 





Cornell Finally Moving Forward on Maplewood Plan

3 02 2016

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Finally, finally, some real news. Cornell, through its Chronicle news outlet, has issued a statement regarding plans for the Maplewood Park Apartments replacement. Let’s look at the most important details.

– Cornell will be partnering with collegiate housing developer EdR. Cornell will own the land, but EdR will finance, construct and manage the development.

– Groundbreaking is expected this fall, with a summer (August) 2018 opening.

– Approximately 850 bedrooms are anticipated in the first phase, which is only for graduate and professional students. No undergrads here.

– Designs and unit mix are not yet finalized

– To quote Jeremy Thomas, Cornell’s senior director of real estate: ““Our goals for this site are to foster a close-knit neighborhood feel, while connecting this community through walkways and outdoor spaces to the university and surrounding neighborhoods, including the East Hill Plaza area where we are planning future mixed-use development.”

– EdR and Cornell will be meeting with neighborhood groups, the local landlords’ association, and since the project will contain a sizable portion of family housing, the ICSD.

Now, with all that acknowledged, let’s do a little more research. First, the developer. EdR (formerly Education Realty Trust) is a Memphis-based student housing developer following in the steps of Campus Advantage, CA-Ventures, and others who have tried and failed to make their way into the Ithaca market. The difference is, apart from EdR also being a Real Estate Investment Trust that finances its own projects (REITCampus Advantage was not, nor was Campus Acquisitions before it was bought), the company has Cornell’s blessing and the proposal is on Cornell land, which are very, very important cards in their hand. It would take a huge flaw to make local officials come out against this project, which will address a critical student housing shortage at the university.

EdR has been through upstate a few times before, though not in Ithaca. They developed and manage student housing for SUNY ESF in Syracuse (454-bed Centennial Hall), and developed two private apartment complexes adjacent to Syracuse University, the mixed-use 312-bed Campus West project, and the 423-bed University Village Apartments. They have a mix of arrangements with different schools – the SU projects are totally private, but Centennial Hall is owned by ESF and managed by EdR, an arrangement that sounds pretty similar to what Cornell will be doing.

Looking at the profile, I can’t find too much of a pattern in the choice of architects. In many cases, they’re local (the Univ. of Kentucky projects used Sherman Carter Barnhart, a Lexington firm, while University Village and Campus West used Holmes King Kallquist, a Syracuse firm), but there’s a few wild cards from outside a region – Centennial Hall used WTW Architects of Pittsburgh. In sum, it looks there might be a slight preference towards firms local to a project site, but apart from that, the chosen designers are literally and figuratively all over the map. EdR looks to have focused on mixed-use, compact and urban-friendly projects with their more recent partnerships.

As for price range, we’re talking some serious coin being tossed around. The Syracuse projects, which are half the size of Cornell’s project, cost $28-$30 million. EDR, in its own press release yesterday, estimates the project will cost about $80 million. Or course, it will be tax-exempt, but that much money translates to a lot of construction jobs, and Cornell is a strong supporter of trade unions. Local companies might get in as subcontractors, but with a project this large, one of Cornell’s preferred circle of general contractors (Welliver, Pike, LeChase) will most likely tackle the overall buildout.

Now, thinking about the project itself, if it’s 850 beds (rough assumption of one bedroom per person), that’s almost twice the capacity of Maplewood and its 394 units/480 beds. Maplewood is 109,000 SF of usable space (122,000 SF gross) and sits on 16.02 acres. So the current density is about 24.6 units/acre, or 30 beds/acre, in one-story buildings that cover the vast majority of the site.

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The 2008 Master plan, if it’s any indication, calls for 15-30 units per acre (the number of beds is left up to interpretation) and up to 400,000 SF of space in 2-4 story buildings, creating a more campus-like appearance by going vertical instead of spreading out as the current Maplewood does. While the layout in the plan was totally conjecture, the specs are not. The town of Ithaca zoning (High Density Residential) caps it at 36 feet, but Cornell could probably get a floor or two of variance without much difficulty – the town’s 2014 Comprehensive Plan recognizes Maplewood as one of the appropriate sites for “Traditional Neighborhood Development High Density“, dense mixed-use thoroughly integrated into the surrounding street fabric, 6-30 units/acre but averaging 8-16 units/acre with 10-20% open space.

There’s one last detail to mull over in all of this. According to the city, Cornell will be exercising its right to take back the Ithaca East apartments to the east and northeast of Maplewood (I spoke/emailed with Abbott about this a few days ago when the city docs were released, so…convenient timing). According to property manager Bruce Abbott, Cornell renews every June and he has two years to finish out his management of the property, so Cornell won’t take over Ithaca East until June 2018 at the earliest – which would be just in time for a second phase if Cornell desires, right as phase one is finishing up. Cornell also purchased the homes between Maplewood and Ithaca East, in 1998 and 2013. So looking further ahead, here’s an adjacent 8.2 acres that seems likely to fall under the Big Red development radar in the next couple years, not to mention future plans for East Hill Plaza. EdR is going to be very busy over these next few years.





News tidbits 1/16/2016: The Not-So-Best Laid Plans

16 01 2016

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1. It isn’t exactly a shock that Elmira Savings Bank is pursuing plans for the $1.7 million in properties it just acquired on the west 100 block of Meadow Street between West State and West Seneca Streets. That being said, sending out 30-day eviction notices wasn’t a very good idea from a public relations standpoint.

Technically, it’s all above the law – the three tenants affected were on month-to-month leases, according to Nick Reynolds over at the Journal, and one had an expired lease and was in the process of relocating. The bank wasn’t interested in renting out the properties and decided to clear them out. That is plausible, if a little brusque – even if they had put forth a proposal for something at the next Planning Board meeting, approval would take months, in which case they could eased the tenants out of the current property. But instead, they ended up with a petition that, while mostly reading like a speech from the Politburo, does make the valid point that this was conducted poorly. Then it hit the airwaves, and the bank has gone into major damage control mode, giving the tenants until the end of March and reimbursing them $1,000 for the trouble.

Looking at some of the comments on the Voice, there is a lot of outcry against gentrification, but there’s not a whole lot the city can do to prevent that – even if Elmira Savings Bank didn’t build a thing and sold the buildings to someone else, the rapidly rising property values around the city would push the renters out, albeit more subtly, and the city can’t make a law that says someone can’t move in. Plus, as seen during the 210 Hancock, Stone Quarry and Cayuga Ridge debates, there’s a lot of pushback locally against affordable housing. Arguably the best solution going forward is to work an inclusionary zoning ordinance into law so that when Elmira Savings Bank does decide to build (and it’s more of a when than an if), that a few of the units be made available to those on more modest incomes.

Just to touch on that real quick, according to the Journal, the old Pancho Villa building at 602 West State Street will become a bank branch for ESB in the short-term, and plans are being considered for a mixed-use project at some point down the line (two months, two years, who knows). The zoning is WEDZ-1a, allowing for a five story, 65′ building, but there might be tweaks to that depending on the inclusionary zoning ordinance.

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2. Keeping a focus on the west side of the city, the Planning and Economic Development Committee voted to circulate a proposal for a “Temporary Mandatory Planned Urban Development” (TM-PUD) over the waterfront. The reason for this is one part proactive, and one part reactive.

What the TM-PUD does is, for an 18-month period starting the day of Common Council approval, it gives the Common Council the right to oversee and if necessary vote down projects that it thinks will not be appropriate for the waterfront. The study area is currently a mix of zones: Waterfront (WF-1, WF-2), Southwest Mixed-Use (SW-2), Park (P-1) and Industrial (I-1). When the Comprehensive Plan was passed in 2015, it promoted a more walkable, dense, mixed-use waterfront. Therefore, some of the zones are outdated.

The city’s planning department is still in the process of drawing up specifics for how to implement the Comprehensive Plan’s walkable urban waterfront, but in the meanwhile, some of the zones don’t match up with the direction the city wishes to proceed. Take, for example, the industrial space on Cherry Street and Carpenter Circle. By zoning, residential uses aren’t allowed, although the city would like to see mixed-uses with condos and apartments in their vicinity. The planning department needs time to figure out the what and where on zoning so that those uses can be proposed without a developer spending extra months in front of the Planning Board and BZA, which can drive up costs and make construction financing more uncertain.

So that’s the proactive, benign part – the city needs time to plan out the zoning laws for the dense waterfront they want. Now comes the reactive, cynical part.

It’s a not-so-secret secret at this point that the Maguires are looking hard at Carpenter Circle for their car dealership headquarters and multiple sales outlets. Since Carpenter Business Park is zoned industrial, and Ithaca city zoning allows commercial uses in industrial space so long as they’re two floors, there’s a good chance they could build dealerships without the need of the BZA, and it would be an uncomfortable position for the planning board to have to debate a project that is totally legal but is something the city and much of the community doesn’t really want. So as a way to stall for time, the city’s pursuing this TM-PUD and giving the Common Council the authority to shoot down any unwelcome plans should they arise.

For comparison’s sake, there’s a similar scenario that is playing out in Ithaca town. The College Crossings project on South Hill was welcomed under the zoning and previous iterations had been approved, but after the town passed its 2014 Comprehensive Plan and attended the Form Ithaca charettes last summer, the planning board realized that a shopping center with a couple apartments above and in the middle of a large parking lot wasn’t something they really wanted anymore. While the project has been withdrawn, the process and debate has created a lot of discomfort, confusion and uncertainty, which is rather problematic given the area’s housing shortage. The town hopes to have some form-based zoning code ready this year.

So, looking back to the city, the occupants of 108 E. Green Street want things that are still illegal in much of the study area, but they don’t want a full-on moratorium because some spots like the Waterfront zones actually do accommodate what the city and many of its constituents want. The TM-PUD is an attempt to stave off the legal but undesirable projects until the revised West End zoning can go into effect.

Worth pointing out, at the meeting the boundary was changed to midway through the Meadow Street and Fulton Street blocks, rather than along Fulton Street. It may or may not affect Elmira Savings Bank’s parcels as mentioned above, but those long-term plans are in alignment with the city’s, so probably not.

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3. On a related note, the town is holding workshop sessions for those interested in designing a ped-friendly, mixed-use community for South Hill. The meetings are planned for 6:30 p.m. to 8 p.m. Jan. 26 to 28 at the Country Inn and Suites hotel at 1100 Danby Road in Ithaca. An open office has also been scheduled for 12 p.m. to 1 p.m. Jan. 27. Form Ithaca will be in attendance at the sessions to help formulate the form-based character code proposed for the neighborhood.

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4. A revision to the cellphone tower law has taken one step closer to becoming reality. The city’s Planning and Economic Development Committee voted 4-1 to circulate a revised law that would reduce the size of the tower’s fall zone, where construction of any structures is prohibited. A revision to the current city law, which is twice the height of a tower, could potentially allow the 87-unit 815 South Aurora apartment project to proceed with planning board reviews and other BZA variances if necessary. Developers Todd Fox and Charlie O’Connor of local company Modern Living Rentals have been pushing for a fall zone radius of 180 feet for the 170-foot tall tower, rather than the 340 feet as the current law mandates.

From the discussion, it sounds like the concern has less to do with this parcel, and more to do with the possibility of cell phone companies pursuing towers on open land in the northern part of the city where spotty reception has to be weighed against the aesthetics of the lake shore. Anyway, we’ll be hearing more about possible changes to this law in a month, but for back reading, here’s the Voice article from a few months back.

5. In quick news, CBORD’s move to the South Hill Business Campus looks like a go. A $2.45 million construction loan was extended on the 8th by Tompkins Trust Company. CBORD, a software company founded in Ithaca in 1975, will move 245 employees into 41,000 square feet of freshly renovated SHBC space from the Cornell Business Park later this year. The project, which totals $3.7 million, was granted $296,000 worth of sales tax abatements.
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6. From the city’s Project Review Agenda next Tuesday, plans for a facadectomy of the 1980s Student Agencies Building at 409 College Avenue. Student Agencies, in collaboration with Cornell, plans on dropping $183k on the facade work, as well as the $2.8 million or so for the interior renovations of the second and third floors for the new eHub business incubator space. Prolific local architecture firm STREAM Collaborative is in charge of the design work, including the 9,660 SF of interior space. The work would go from January to April (the loan is already approved and most of the work is interior).

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If I may play armchair architecture critic, which I have no credentials to do, I think the patio area is great, but I’m opposed to the brise-soleil, the wing like feature that serves as a sunscreen. I feel like that its location above the third floor throws off the rhythm of the block, by being lower than the cornices on adjacent structures. It might be fine over the glass curtain wall alone, but as is it feels a little out-of-place. Just one blogger’s opinion.

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7. House of the week. 228 West Spencer Street in the city of Ithaca. Zero energy new construction, 2-bedrooms, on a rather difficult site. In the above photos from last weekend, the house has been framed and sheathed with Huber ZIP System plywood panels, the roof has been shingled, and doors and windoes have been fitted. The blue material on the concrete basement wall is Dow Styrofoam Tongue and Groove Insulation which protects against moisture and helps keep the heat loss to a minimum. The house should blend in nicely with its neighbors.

Ed Cope of PPM Homes is the developer, and Noah Demarest of STREAM Collaborative is the architect.

 





News Tidbits 12/12/15: Money Money Money Money

12 12 2015

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1. Time to do a little rumor-killing. There’s been some confusion as to whether or not the Hilton Canopy is actually happening, since it was supposed to have started construction by this time and it hasn’t. There was also an article in the Ithaca Times that suggested that construction costs much higher than original estimates had caused the project to be cancelled.

Well, the project has definitely been delayed, but it looks like it will still be moving forward. According to a utility easement resolution at the Ithaca Urban Renewal Agency’s Economic Development Committee (IURA EDC) meeting, a project financing commitment has been secured and the developer of the Hilton (Neil Patel of Lighthouse Hotels LLC) is planning a construction start in the first quarter (Jan-Mar) of 2016, which would suggest a mid-2017 opening.

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2. Also in financial news, INHS looks to have secured grant funding that will allow it to move forward with its 210 Hancock project in the next four months, according to INHS Executive Director Paul Mazzarella. The grants were officially awarded in an announcement from the governor’s office on Tuesday. $3.6 million will come from the state’s Housing and Community Renewal program, $500,000 from the state low-income housing tax credit (LIHTC) program, and $1.03 million from the U.S. Department of Housing and Urban Development’s LIHTC program. In total, the award is valued at $5.13 million, about a quarter of the estimated $20 million development cost. The project has received about $17 million in grants and tax credits to date.

The money awarded covers only the rental units – 54 apartments in the four-story mixed-use building, and five townhouses. The seven owner-occupied townhouses remain unfunded.

The apartments, which include a 30-child low-income daycare facility and commercial office space for non-profits, will welcome their first tenants in Summer 2017. They will rent from 27% to 105% of local median household income, depending on the unit. Descriptively, it’s a mixed-income project with residents’ incomes ranging from $25,000-$60,000 per year.

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3. From the Common Council’s Planning and Economic Development Committee, there are a few things of note this week –

A. The city seems to be looking towards greater encouragement and flexibility with redevelopment of waterfront parcels by making WF-1 and WF-2 zones Planned Unit Developments (PUDs). What a PUD does is allow greater flexibility in uses and design by removing or loosening zoning constraints on site use, and being more accommodating to mixed-use projects (the Chain Works District proposal is a PUD, for example). Previously, PUDs could only be applied to industrial sites. The other stipulation, however, is that the applicant would have to work with the Common Council to determine appropriate development of the site.

The Waterfront Zoning allows up to 5 stories and 100% lot coverage. The PUD will give flexibility beyond that, dependent on what the Common Council is comfortable with for a given site and proposal.  So if Applicant X shows up with a huge apartment building or a big industrial building, it’s probably not going to get very far. But if it’s well designed and has affordable units? Maybe the council will grant a little more density or another floor. It depends on a developer showing up with something that they feel offers some kind of community benefit and fits with the Comprehensive Plan, and whether the Common Council agrees with the developer’s reasoning.

There is great potential in the waterfront – those views can fetch a premium (i.e. higher land values, and more tax dollars), it’s far enough removed from the colleges that students would be unlikely residents, and many of the properties are underutilized, with only marginal public benefit.  So potentially, if someone wants to work with the Common Council (one can count on at least 8 or 9 of the 10 being willing to cooperate), there could be some benefits in the long-term.

B. The Commons first-floor active-use zoning ordinance looks to be heading for a Common Council vote in January. More about that ordinance here, Item 5.

C. That damned backyard chickens thing again. Only this time, it might be moving forward with a pilot program involving 20 families.

D. Per the Times’ Josh Brokaw, expect incentive/inclusionary zoning to be up for PEDC review in January.

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4. Hey look, this week’s eye candy. Tompkins Financial Corporation’s proposed downtown Ithaca Headquarters at 119 East Seneca Street will be reviewed for final project approval at this month’s Planning Board meeting. As part of that, here’s the final project design, part of the final Site Plan Review submission here.

From the front, it looks like some of the window layout has changed on the top floor and southwest corner, and there are fewer sunshades above the windows. There’s a third tree in the planting plan, and there’s variation in the cladding materials on the west wall facing the DeWitt Mall.

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In fact, it’s the non-primary facades that have changed the most, with different (and generally lighter-colored) brick and aluminum panels when compared to the previous rendition. Although there’s less glass than before, the lighter colors and greater variation in materials de-emphasize the bulk from the perspective of its townhouse neighbors at the rear. The 7-story, 110,000 SF commercial office building should begin construction in early 2016 with an eye towards completion the following spring.

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5. There was quite a sale on Ithaca’s West End last Friday. Nine properties outlined in red on the map above – 106, 108, 100 and 116 North Meadow Street, 607, 609 and 611 West Seneca Street, and 602 and 604 West State Street – were sold for $1,725,000 to Elmira Savings Bank.

Now, there are a few reasons why this is worthy of attention. For one, banks don’t typically shell out almost two million dollars without some kind of plan. For two, Elmira Saving Bank has been moving forward with expansion plans in the Ithaca area in hopes of capitalizing on the growing local economy. For three, there has been a lot of development in this neighborhood as of late – the Iacovelli Apartments (2013) and Planned Parenthood (2014) are right across the street, and it’s worth noting that the 18,000 SF HQ for Alternatives Federal Credit Union (2002) is on the other side of the block.

The properties are currently home to parking lots, several older, non-historic houses (most in poor condition) and a two-story 4,500 SF commercial building previously home to the Pancho Villa Mexican restaurant. The restaurant building had been on the market for $699,900.

The zoning here is all WEDZ-1a. West End Zone 1a allows for 2 to 5 story buildings, 90% lot coverage in the case of large assemblages such as this, and no off-street parking requirement. That means these parcels have a lot of potential. The previous owner had been rumored to be planning a mixed-use building on some of the properties, but nothing official ever came forth.

Two phone calls were placed to Elmira Savings Bank’s headquarters in Elmira, and two voicemails were left, but neither received a response. But these properties are definitely something to keep a close watch on over the following months.

6. That 9100 SF store being developed on the corner of East Shore and Cayuga Vista Drives in Lansing that was mentioned last week (here, Item 4)? It’s going to be a Dollar General. Not sure if that’s better than the auto/tire store speculated last week.

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7. Lest it be forgotten, it appears Lady Luck and some state bureaucrats smiled at the Southern Tier this week, awarded the region one of the three $500 million prizes of the Upstate Revitalization Initiative, known colloquially as the Upstate “Hunger Games”. Rochester/Finger Lakes and Syracuse/Central are the other $500 million winners. Seven regions competed, and the four losers will receive $80-$100 million for their priority projects. The money will be paid out in five annual installments of $100 million. A copy of the Southern Tier’s plan is here.

I wrote about Ithaca’s plans for its share on the Voice here. The first year projects alone will have a range of impacts, ranging from job creation and training to municipal construction projects to quality of life projects like museum expansions. Potentially, it could result in hundreds of jobs in Tompkins County, financial capital for several major projects, and make the area more attractive for investment for both local and external entities. As these projects move forward, they’ll receive their due write-ups here and on the Voice.

Of course, the key things are that the community can manage this monetary award, and that someone can track and guide these projects to completion – something the Southern Tier has struggled with, when one looks at the result of previous, much smaller awards.

8. The state’s just shoveling money into Ithaca this week. The New York State Office of Community Renewal (part of the state’s HUD equivalent, the Homes and Community Renewal agency) has awarded $500,000 towards the rehabilitation of the Masonic Temple at the corner of East Seneca and North Cayuga Streets in downtown Ithaca.

The Masonic Temple was built in 1926 and designated a local historic landmark in 1994. The property is owned by Ithaca Renting Company (Jason Fane), who purchased the building from the Masons in 1993. Fane’s never been a fan of the historic designation because the ILPC can be expensive and onerous to work with, nearly everyone else hasn’t been a fan of his long-deferred maintenance of the 90-year old building (if you have ever wondered why that CIITAP rule was added about an applicant being in building code compliance with all their other properties…now you know). A few years ago, Fane had not been shy in his interest in demolishing the building.

After rejecting a purchase offer to turn the building into a community center and space for the New Roots charter school, Fane decided to go the preservation route earlier this year and apply for a grant to renovate the interior and add an elevator to the building to make it ADA-compliant. This would make the building much more marketable to commercial tenants, many of which have shunned the 17,466 SF building. Fane laid out a few different options this past summer, including one where four commercial spaces (rental, office, restaurant) would be created. Based on the grant announcement, it looks like that will be the option pursued.

The Downtown Ithaca Alliance backed the application, as did the Common Council by unanimous vote at their July meeting.

The renovation will cost at least $1 million, and according to the grant announcement, seeks to start construction in summer 2016. Expect more info when it hits the ILPC and Planning Board at a later date.

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9. House of the week. This week, INHS’s new 2-bedroom, 1150 SF single-family home underway at 203 Third Street in the city of Ithaca’s Northside neighborhood. The house is framed, roofed and sheathed. Siding (Hardie board?) and trim is being attached on the sides, and one can expect a nice gracious porch to be attached once exterior materials are installed on the front. A home of the design was previously built at 507 Cascadilla Street.

203 Third Street was a vacant that the city seized in a tax foreclosure in 2011. It was transferred to the Ithaca Urban Renewal Agency, who sold it to INHS for $17,000 in December 2014. The process is pretty similar for a lot of the home lots that INHS builds on – the non-profit buys dilapidated or vacant properties from the IURA, which they build or renovate into affordable single-family and duplex houses. In the case of 203 Third Street, INHS competed for the site, outscoring Habitat for Humanity’s submission in an IURA examination of proposals.

As with all INHS homes, this one will be sold to a buyer of modest means, which means someone making at or a little less than the county’s median household income of $53k/year (I think 80% of MHI is the low bound offhand, so about $42k/year). The houses will be a part of INHS’s Community Housing Trust, limiting the price it can be sold for and requiring that if put up for sale, it is sold to another family of modest means. It may just be one house, but it will mean a lot to one family.

Claudia Brenner is the architect, with Rick May Construction and Mike Babbitt in charge of construction (thanks to Claudia for the builder info).

 





The Swinging Pendulum of the CIITAP Program

17 11 2015

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If I had seen this before the Friday news roundup, I’d have included it there. But since I have no Monday night post scheduled this week, discussing the latest changes to CIITAP will be a fair substitute.

So, background. CIITAP stands for Community Investment Incentive Tax Abatement Program, and it’s a property tax abatement program that gives developers the opportunity to apply for abatement for a portion of their property taxes for a period of up to 7 years, or for an enhanced abatement of up to ten years if they can demonstrate financial hardship (i.e. without the abatement, there’s no way the project will be cost-effective; if it’s not cost-effective, a bank won’t offer construction loans, and the project doesn’t happen). Basically, it’s a tool designed to promote development in certain parts of the city where density is expected and/or encouraged, rather than lose tax-generating and job opportunities to the suburbs. A more substantial description can be found in a write-up for the Voice that I did back in January here.

The first version, which went into effect in 2001 as the Downtown Density Program, led to five projects being built, six if you split Cayuga Green into its garage and mixed-use components. The projects were worth about $62 million, and the earliest ones are now paying full taxes. Then the city decided it wanted more from the density incentive, and it created the CIIP Program, which was created in 2006. Over the following six years (2006-2012), that led to just one project, the $3.5 million Ital Thai renovation on the Commons. Part of it was that from 2006-2007, there was a moratorium on abatements, and another part was the recession. But another part of that was that CIIP was really lengthy and burdensome it had 48 stipulations, and a project had to meet 15 for partial assistance, and 23 for full assistance. It was so much paperwork that developers were disinterested and opted for other parts of the county.

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Onto round three, the current CIITAP – much more simplified, it initially had three stipulations – one, that it be in the density district; two, that it was a $500,000 investment in either a new building, or in the renovation of a historic building; and three, that if a new building, that it be at least three floors. A fourth was later added that said that all your other properties had to be up to code and have no outstanding violations, which arguably was a tacit response to Jason Fane’s application for 130 East Clinton while he let the Masonic Temple rot. However, in the past couple of years there have been complaints from various groups that the city wasn’t getting enough out of the bargain. You can kinda see how the pendulum swings – the political consensus is that the first version was too generous, the second version two burdensome, and the third version too generous.

The city put together a study group to examine revisions to CIITAP, chaired by a Common Council member (Ellen McCollister of the 3rd Ward), and consisting of City Planning and IURA staff, a representative from TCAD, a representative from a local labor union, a developer, and a representative from the Coalition for Sustainable Economic Development. In short, the city’s trying to get a broad spectrum of perspectives. The revised CIITAP is to presented at the PEDC meeting Tuesday night.
Here are the goals:

1. Retain the program as an effective tool to incentivize smart growth and discourage sprawl
2. Improve the program’s ability to deliver broad community benefits that may include:
*** An increased use of local labor
*** An increase in living wage job creation
*** More environmentally friendly building
*** Increased economic opportunities for people of all backgrounds

Note that given the previous versions, they’re easier said than done.

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In addition the standard 7-year and 10-year abatement, there’s also a new very stringent “enhanced” 12-year abatement option. All the 7-year and 10-year stipulations carry over, but now there’s a few more requirements on the list in four categories – “Environmental Sustainability”, “Local Construction Labor”, “Diversity and Inclusion”, and “Living Wage” .

  • In the “Environmental Sustainability” category, the new rule on the standard 7-year abatement and 10-year abatement is one of two two choices. The first choice is an annual benchmarking of energy usage during the abatement period using free software from the EPA. The report would be given to the city, IDA and made public, to prove the building is using energy at the level designed. The second choice is that they could submit paperwork indicating they’re pursuing LEED Certification, and provide proof of certification upon completion.
  • The “Local Construction Labor” category defines “local” as tompkins or any of the counties it borders (Cayuga, Seneca, Schuyler, Chemung, Tioga, and Cortland Counties — so no Syracuse, Rochester or Binghamton). In order to be eligible for a tax abatement, an applicant must commit to the City in writing and submit to the IDA proof that the general contractor has solicited bids from local sub-contractors for all major trades required for the construction project, such as HVAC, electrical, plumbing, carpentry and masonry. Secondly, they must submit a copy of their monthly payroll monthly payroll reporting of all workers on site during construction with a summary of how many employees are “local”, using the address, zip-code, and total payroll amount per employee. I’m not sure if all this will be public info – privacy advocates might push for keeping the employee address and payroll information confidential to the city and IDA.
  • In the “Diversity and Inclusion” category, the new requirement for all applicants is a company or primary tenant’s workforce demographic analysis by gender, race/ethnicity, age, disability, job class with gender, and job class with race/Hispanic ethnicity; as well as acknowledgement they have read and understood the City’s Anti-Discrimination employment ordinance; and a statement of their company’s or the major tenant’s goals for workforce diversity.
  • The program does touch on an affordable housing fund or mandate, but it’s stated that members don’t feel CIITAP can adequately address affordable housing, and the committee recommends exploring inclusionary zoning.

Under this plan, the number of stipulations for the 7-year and 10-year abatements goes from four to seven. The rest of the procedure is as before – the city holds a public meeting, then decides whether or not to endorse the project, and it goes to the county (TCIDA) for their vote, which is typically in line with the city’s recommendation.

Now, a new option is the 12-year “super-abatement”. Along with the demonstrated financial need, a project must also commit to one of the following – 40% local labor, energy usage 20% less than NYS Energy Code Requirements, or living wages for single-use entities like hotels. This is in addition to the previous stipulations for 10-year abatements.

So now’s the magic question? Will it be acceptable to the broader community? The city’s HR director wrote in an email attached to the PEDC agenda that the program doesn’t do enough for diversity, and needs to mandate rather than encourage it. Without a doubt, this whole program, as we’ve seen in the past fifteen years, is a delicate balance between encouraging density while getting community benefits. Hopefully, the abatement pendulum stops swinging and it finally comes to rest in a comfortable middle ground.





News Tidbits 11/14/15: To Plan or Not to Plan

14 11 2015

It’s another slow week. There was no PEDC meeting in Ithaca city, and no new projects hit the airwaves. But there might be some interesting things moving forward.

1. The Lansing Star has an insightful interview this week with newly elected Lansing town supervisor Ed LaVigne, who unseated incumbent Kathy Miller for the seat. From a development standpoint, it’s very interesting. From the interview, it sounds as if, given the possible loss of their biggest taxpayer, the $60 million Cayuga Power Plant, he kinda wants to throw the door open to developers in an attempt to soften the blow of its closure. In Lansing, there was a political divide when it came to planning – the Democrats wanted a full-time planner, but the Republicans wanted a part-time planner. The budget item for a full-time planner was eliminated along town board party lines, 3-2, and Lansing is currently served by part-time planner Michael Long.

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“That’s why it’s so critical to start moving some dirt, getting things built.  One of the things I’ve already told developers is that Lansing is in business.  How can we make you more prosperous?  We believe in prosperity.  And if you’re prosperous we all will benefit.  I don’t care how much money they make.  I hope they make more money than they ever dreamed of, because if they put their money in Lansing, Lansing wins.”

If I didn’t know where the quote was coming from, I wouldn’t believe it was from an elected official in Tompkins County. Most local officials are very measured in their comments on growth, if they welcome newcomers at all.

Just as a thought exercise, Lansing builds about 25 houses per year per HUD SOCDS, and a variable number of apartments, which right now is a few dozen per year thanks to the Village Solars project off Warren Road. Take about $300k per house, and $6 million for each major phase of the Village Solars, and one gets $13.5 million in new development. Not factoring in additional infrastructure or service costs or taxes from commercial/industrial construction, it would take four and a half years to make up the tax revenue lost from the closure of the power plant.

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Of course, development in Lansing is tricky – without sewer, houses have to be on at least one acre of land. After all the busted dreams with the town center proposal, the town will be more likely to stick with conventional suburban development and rural homesteads. On the one hand, Lansing has given a yes to development. On the other hand, the question of “smart” growth is still up in the air, and it’s not looking good.

By the way, the photos, which are a few weeks old, are of homes underway on Lansing’s Oakwood Drive. Cardamone Homes is the builder. The top one is for sale for $670,000.

***

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2. There’s nothing too exciting in the agenda for the Ithaca town planning board meeting next Tuesday. There’s a couple of legal clarifications required, one for a single-family home subdivision, the other to let Brookdale (formerly Clare Bridge / Sterling House) move forward with their 32-unit expansion project. The town planning board will also be reviewing some solar panels and changes to the sign law. Really, about the only noteworthy thing on the agenda is an open, informal discussion on College Crossings. After have a few months to take a deep breath, the developer, Evan Monkemeyer of Ithaca Estates Realty, would like to discuss what needs to be done in order to make the project fit with the town’s comprehensive plan, while keeping his plans economically feasible. A copy of the letter is below:

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This is potentially a major opportunity for the town to show good stewardship. Ideally, the two sides will find a common ground that meets the town’s goal for a less auto-centric, mixed-use South Hill, while allowing the developer to move forward. A tax abatement isn’t going to fly with the IDA let alone the planning board, but there are other options that can be considered – density, height, and setbacks come to mind. The town’s comprehensive plan considers the site “TND [Traditional New Development] High Density” – one of the few high density spots in the town. The plan recommends 8-16 units per acre as an average (it’s a 3.75 acre site, so picture 30-60 units), and 10-20% open space. A project in a TND-HD area should be dense, transit-oriented, porous and walkable. The door is open, not only to the town, but members of the public interested in helping find that common ground (looking at you, Form Ithaca). It should be an interesting chat.

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3. Local architecture firm STREAM Collaborative held an open house last Friday, and for those unable to attend, they shared photos online.

Look closely and you’ll find a copy of a conceptual build-out of the Chain Works District, which is still going through environmental site assessment (the ESA document is said to be tens of thousands of pages). The South Hill Business Campus is to the upper right, so the top of the image is directed south. Note that there’s nothing formal, and even the renovation of buildings 21, 24, 33 and 34 has yet to reach the boards (rumor mill says the renovations might start in 2017). But it’s great eye candy.

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4. House of the week. Since I hit this house a couple of times while it was underway, I figured I would include a couple shots of the finished 3-bedroom, 1,276 SF home at 203 Pearl Street in Ithaca’s Belle Sherman neighborhood. Oddly enough, the builders, Gil and Naama Menda of 201 Pearl, used the same exterior trim colors as on the Belle Sherman Cottages a block away.

The lot is the result of a subdivision approved by the city during the spring; 203 Pearl had previously been combined with 201 Pearl and used as an in-ground swimming pool, which was filled in at some point.





News Tidbits 10/31/15: The word of the week is “No”

31 10 2015

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1.  We’ll start off with about the only affirmative news this week, that of the city of Ithaca Planning and Development Board Meeting last Tuesday. The tweaks to the now 79-room Holiday Inn proposal at 371 Elmira Road were approved, and the project expects to have building permits in hand next week, according to the Times‘ Josh Brokaw. When I spoke to the development company’s president, he said “the project is already underway”, but it seems he meant demolition permits for the existing buildings, rather than construction permits. Expect a construction update sometime next month.

Also approved was the new north wing for the Hotel Ithaca at 222 South Cayuga Street in downtown. A tweak of the facade, glazing and balconies was enough to placate the board into approving the revisions for the $9.5 million, 90-room project, which replaces a two-story wing dating from 1972. The north wing will have the potential for another three floors, and on the other two-story wing, the long-awaited Conference Center may come to be if financing plays in developer Hart Hotels’ favor. The Buffalo-based company hopes to start construction early next year and have the new wing ready for its first guests in Fall 2016.

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Meanwhile, in the strike column is the proposed jazz bar at 416 East State Street just east of downtown. According to the Cornell Daily Sun, a decision is being deferred until updated, more thorough information is provided regarding sound attenuation of bar patrons gathering outside the building while getting their fresh air or nicotine fix. Neighbors have mounted substantial opposition to the project for being out of character and for parking concerns, but the planning board has played neutral, receptive but cautious. The project is a legal use and will not change the square footage of the one-story warehouse/office building, but will need zoning variances.

2. The county had discussion, but made no judgements on the Biggs Parcel next to Cayuga Medical Center. The county is mulling plans to sell the parcel on the open market after years-long and heavily-fought plans to sell it to affordable housing developers NRP and BHTC fell through on the discovery of extensive wetlands on-site in 2014. As written about in the Voice this week, the county wants the 25.52 acres of land (previously valued at $340k) back on the tax rolls, while the neighbors and some other West Hill residents, under the umbrella of the Indian Creek Neighborhood Association, want the county to hold it as “public woodland”. The county has countered (time and again) the land has no use for the public.

Depending on which account one chooses to follow (ICNA’s or the county’s, the two vary on the details), the county’s Government Operations Committee is giving the neighbors one month to come up with a viable alternative for the land. The ICNA wanted an RFP for land preservation, but the county’s planning commissioner, Ed Marx, says the county doesn’t have time to write-up another RFP. They also pushed for subdivision of the land, which the planning department is also discouraging. The county has wanted the ICNA, Cayuga Medical or BHTC to buy the land, but no one’s made offers.

To this semi-trained eye, the only “happy” solution would be for the ICNA or someone sharing its interests to buy the property for the re-assessed value and arrange to donate it to an organization like the Finger Lakes Land Trust. The county gets their tax money, and the neighbors get to keep the land undeveloped. Outside of that option though, either the neighbors are going to feel shorted, or the county’s tax watchdogs will be up in arms.

EDIT: And now I’ve been informed that the land would be tax-exempt if given to the land trust. So there’s no happy solution unless a private landowner buys it agrees to not develop it. Which, given the property tax, is not very likely.

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3. Farm Pond Circle is still for sale. Only now, it’s on the market for $125,000, $30,000 less than the original listing. As previously written here back in March:

“The second phase of Lansing’s 21-lot Farm Pond Circle development is up for sale. Jack Jensen, the original developer, passed away last fall. Of the ten lots in phase two, four have already been reserved; there are also two lots left in phase one. The second phase is being offered for $155,000.

The Farm Pond Circle development is fairly stringent. Current deed restrictions limit the size of each housing unit to 2600 sq ft, vinyl or aluminum siding isn’t allowed, and only very specific subsections of the lots can be developed. Buyers aren’t limited to green energy, but there is a strong push in that direction. Also, at least four of the lots are earmarked for affordable housing (single-family or duplexes, buyers muse make less than 80% of median county income of $53k)). The affordable units, at least two of which have already been built, are being developed in partnership with Jack Jensen’s non-profit, Community Building Works!.”

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4. Mayor Myrick made some thought-provoking comments (or provocative, depending on your view) in a phone interview with the Times’ Josh Brokaw about State Street Triangle. For one, the inclusionary zoning topic has come up again, something likely to make an appearance in his second term. And for two, calling for a distinctive “pillar” with fewer units, and smaller units sizes to appeal to a wider, non-student part of the market. As previously stated, the 11-story height isn’t the issue.

I wrote about inclusionary zoning as part of an interview with Community Planner Lynn Truame in the Voice – it can be done one of two ways, either saying a builder/developer can’t build anything without having units or paying into a fund, or by giving them an extra incentive, like reduced permit fees, being able to build one floor higher or a reduction in parking requirements if they include affordable housing. Most opt for the latter approach.

The pros are an integration of affordable units into market-rate developments and a supply of affordable housing. The cons are that, if handled the wrong way, it can stop all development, affordable and market-rate, and on the other end of the spectrum, if the benefits are too generous than it can reduce the supply the affordable housing by tearing down older, lower-cost buildings in favor of new higher-cost ones with a small number of affordable units. In sum, nothing in an inclusive zoning ordinance can be taken lightly.

An inclusionary zoning program requires the support of neighboring communities so that developers don’t just skip to the next town over to escape the burden, and the program must be designed to encourage developers to build while ensuring there’s plenty of affordable units on the market. For example, here’s Burlington, Vermont’s ordinance:

“The program applies to all new market-rate developments of 5 or more homes and to any converted non-residential structures that result in at least 10 homes.  The affordable housing set aside is 15 to 25% of the units, depending on the average price of the market-rate homes – with the higher percentage placed on the most expensive developments.  The ordinance does not allow fee in-lieu payments or land donations, but will allow developers to provide the affordable housing off-site at 125% of the on-site obligation.  The ordinance provides a range of incentives including fee waivers and a 15-25% density and lot coverage bonus. Affordable homes are targeted to households earning 75% or less area median income (AMI) and rented at 65% or less AMI.  Developers can sale or rent the homes for more as long as the average of affordable homes sold or rented are at or below the target household income.  Affordable homes are price controlled for 99 years.

Burlington partners with a nonprofit – the Champlain Housing Trust – in the administration of its program and is able to minimize in-house administrative staff time for the program (committing only 10% of one full time employee). However, more funds are needed to support the monitoring and enforcement of affordable homes.”

So if this were Ithaca for the sake of equivalent example, let’s say a developer downtown is thinking of a 40-unit market-rate non-luxury apartment building, that maxes out the lot area and height of a currently-existing (hypothetical) zone. They would be able to build 46 units/15% larger as a bonus, but 6 units would have to be affordable housing. They could also build 46 market-rate units on-site, and build 8 affordable units off-site at a location okayed by the city.

The affordable units would be targeted at individuals making 65% or less of AMI, which in Tompkins is 65% of about $53k, or $34,500/year. Some units could be more or less affordable, as long as they average to 65% AMI. It stays that way for 99 years. The units would be managed by an organization like INHS.

Or, the developer could build a hotel, office, or non-residential building without giving up money or space for affordable housing, but they also get no zoning bonus. Burlington’s law isn’t designed to be a barrier for development, it’s designed to be an incentive to include affordable housing in new projects. However, there are definitely opponents to inclusionary zoning even among affordable housing advocates, who say that a revised and expanded Section 8 program would be more effective.

Note that Burlington’s law is just one example. No one ordinance fits all municipalities, and each community has its own aspects to address  – in Ithaca’s case, that means tailoring the inclusionary zoning for each neighborhood, determining what size and types of projects have to pay into the fund (because Cornell will probably file a lawsuit if it affects their projects), establishing affordability guidelines that encompass both poor and middle-income families, and whether fees can be paid into a housing fund in lieu of housing. What works in Downtown probably won’t work in Belle Sherman, and what works in Fall Creek wouldn’t be effective in Collegetown. It’s going to be an intensive design process.

So, back to the original question – is Campus Advantage willing to play? It’s not one that anyone can answer just yet. The Austin-based company is still determining their next move. The Times, as well as commenters on this blog, have raised the possibility that this might be the mayor playing politics to stave off his write-in opponent and the anti-development crowd that supports many of the independent candidacies. But, barring some left-field shocker on Tuesday, expect Myrick to be sharing more of his and his staff’s zoning ideas in the next couple years.

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5. Speaking of zoning, the city is mulling over a zoning tweak to make buildings on the Commons have mandatory active street-level uses. A copy of the memo is here, Full Environmental Assessment Form (FEAF) here, county memo here,  copy of code revision here. It seems like an easy sell from both the angle of developers and the city, but the steps to codify it are only now underway.

It will be similar to inner Collegetown’s MU-2 zoning. Permitted are stores, restaurants, banks, entertainment venues, public assembly areas, libraries, fire stations, and anything approved by the Planning Board on a case-by-case basis. The last part comes into play because the Finger Lakes School of Massage proposes a student-staffed massage parlor on the first floor of the Rothschild’s Building. Not included – schools, certain office lobbies and apartment/condo lobbies. But most building owners moved to active-use on the Commons a long time ago. The public hearing will be November 19th.

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6. Looks like there are still some hang ups with the Storage Squad and 902 Dryden projects out in Dryden, according to the town’s latest meeting. For the Storage Squad project, it has to do with their concerns with a stream that showed up on a DEC map in 1940 but hasn’t appeared since (they have to prove doesn’t exist, and proving it requires DEC acknowledgement). The business owners were also concerned about spending $30k on a Stormwater Pollution Protection Plan, with the possibility that the town may have them redo it at no small price.

Now, the Dryden town board is feeling a little heat right now because there have been accusations the town isn’t doing enough to help small businesses, allegations the “rainy day” fund’s depleted, and there’s a 13% tax levy increase planned, none of which sit well with voters. Plus. lest anyone forget, elections are coming up. So it’s perhaps with those things in mind that the town board is making an effort to try and help the owners of the Storage Squad before they throw in the towel. They invited them to the town’s meeting on the 29th to discuss the SWPPP further, and we’ll find out if it was fruitful.

Also, the 13-unit, 36-bedroom (15 units/42 bedrooms if you count the existing duplex) 902 Dryden project was berated by its potential neighbors once again. There are a couple comments attacking the potential students that would live there, but most seem to be against the location and concerns about flooding. Then you have the guy who called it a cancer.

One speaker says that residential development is a tax burden on the town, but really that depends on the type of housing – infill lots and denser acreage can be cost-efficient. New, low-density “greenfield” housing requires more pipes, power lines, new roads…infill has much of that already in place, and less acreage per unit can yield greater cost efficiencies. Plus, the commercial development the speaker touts also requires police and fire, and indirectly schools for its employees’ families. Yet, he didn’t offer a single word of support for the Storage Squad proposal.

Then the talk turns to taxes, and a guy references how we took land from Native Americans, Socialism will cause our nation’s collapse, and how Muslims are trying to institute Sharia Law. Now, how does one type those town board minutes and keep a straight face?

7. One last no for the week, this one for the Phi Mu sorority from Cornell. I still have a soft spot for the histories and houses of Greek Letter Organizations (GLOs), although I’ve happily aged out of college life.

The sorority (technically a fraternity), which arrived to Cornell’s campus last year, had intended to buy the $725,000 house at 520 Wyckoff Road, but the village board shot down the change of use required. Noise, traffic and “detriment of character” were cited as reasons not to let the ca. 1924, 3,473 SF home be used for group housing.

The Ithaca Journals’ Nick Reynolds offers this passage in his write-up:

Following the decision, the board broke protocol and began a philosophical dialogue between its members and the public.

Board member Sean Cunningham suggested the village has become anti-change and anti-sorority, and was at risk of “burying their heads their heads in the sand” to the point where the village wouldn’t be able to maintain its quality of life from an unwillingness to change.

Jeff Sauer, of 107 Overlook Road, offered the residents’ stance:

“The issues brought up tonight were the right issues,” Sauer said. “It’s not that we’re opposed to change; we’re for managing change.”

Historically, the neighborhood of Cornell Heights, split between the city and the village, has been fiercely opposed to any change of uses, let alone new buildings. Cornell sued residents in the 1980s, and won, over a similar issue. The university had planned to move its 15-member “Modern Indonesia” research program and literature collection from 102 West Avenue to a house on Fall Creek Drive, but neighbors convinced the city of Ithaca that it would greatly damage the neighborhood’s character. The state supreme court disagreed.

Cornell Heights and Cayuga Heights have been used as a textbook study in Blake Gumprecht – The former, for which this blog is named after, was founded as an elite faculty and businessmans’ enclave. But after the Alpha Zeta fraternity was donated a house in 1906 (for which the developer threatened legal action to no avail), and Cornell built the all-ladies Risley Hall in 1912, the local elite turned their noses and mostly turned tail for Cayuga Heights, selling out to Greek organizations but making deed restrictions in their new community to keep them from moving in. Cayuga Heights refused annexation in Ithaca by 1954 in part because they didn’t wish to attract students, and even prohibited a restaurant from opening for fear it would attract students as well. While the village isn’t as virulent as it once was, the sorority never really stood much of a chance. One long-term problem may be that if the existing GLOs do ever sell their properties, it’ll be to Cornell and Cornell only, where the use will be maintained, but the taxes won’t.

Well ladies, better luck next time around. You could always ask Cornell about those houses on University Avenue.

9. PSA? Sure.

Vote. Local elections matter. Your vote on Tuesday could make the difference for a lot of things –  for another 210 Hancock, waterfront development plans, zoning changes, or if a future downtown project gets an abatement. It will play a role in whether Ithaca, the county and other govs make an effort on affordable housing. Tuesday’s decisions will affect the city and county’s decisions.

Polling sites here, sample ballots here.





A Long Voyage Ahead for The Waterfront

27 10 2015

The NYS DOT property is probably the next big, Old Library-type project facing the county in the upcoming couple of years. There’s a lot to consider in a possible move of the DOT to Dryden, and subsequent sale of the site to a chosen developer. For that, the county paid $78,000 to Fisher Associates to conduct a feasibility study, the results of which are shared below.

The feasibility study examined multiple angles – environmental, physical, market and financial factors. It has to, because without a through examination of the site, the county could under-price themselves, or vice-versa, there may be fewer or no offers, should buyers think the site’s a poisoned chalice.

But let’s start with the initial disclaimer – things are years out. The Old Library site issued an RFEI in November 2013, and a preferred developer was only named in August. Plus, everything is still dependent on a DOT move, which will have its own schedule if it happens. All things considered, although the county has generously offers 2017 as a construction start date, it’ll probably be the end of the decade if not the 2020s before any soil starts to turn, assuming there’s an interested developer.

So let’s start with a look at the site’s history and environmental concerns. According to Fisher Associates’ Environmental Site Assessment (ESA, link here), the property was virtually unused until the NYS DOT bought the land and starting building their facilities on it in 1958. There were petroleum tanks underground, but they were removed and the land re-mediated in 2004, and now the only tanks on-site are above ground, and in good condition. Some concerns still exist with salt brine tanks, debris in the inlet, and materials from when the DOT used a septic system, before it was hooked up to the city sewer. None of these appear to be potential deal breakers, just things worth noting.

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Perhaps surprisingly for a waterfront property, the vast majority of the site isn’t in the 100 or 500-year flood zone. Most of the site is elevated just enough to avoid flood risk.

Empire GeoServices of Cortland conducted the geotechnical report and site soil analysis. Looking at the soil conditions, being next to the water poses some limitations. Most of the lower elevations of the city suffer from poor, water-logged soils, which are soft and compressible near the top – in a few cases, shallow spread foundations, typically the cheapest option, have been damaged by excessive soil settling, so those are not recommended. Deep, pile foundations, like the ones used at the Lofts @ Six Mile Creek (micro-piles), Marriott (caissons) or some of the big box stores, are a safe option because they go down to more solid soil layers, but they’re more expensive. Shallow mat foundations can also be used in place of shallow spread foundations, but they’re also more complex and expensive, and are really only suitable for “light buildings” with less pounds for square inch. A mat foundation was used for Cornell’s new rowing center.

Long story short on the soils, it means that whatever is built will need a complex foundation, and its likely that whatever gets built will be priced at a premium. The study tacks on an extra 10% to the cost for townhouses and mixed-use buildings.

In the study, there are three plans considered – a hotel plan, a multifamily/townhouse “preferred” plan, and a maximum density plan. The site plan PDF is here, for you kids following along at home.

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The hotel plan imagines a 124-room hotel (midsize in the Ithaca market) with 6450 SF of commercial space. The plan includes 10 townhouses and 52 multi-family units in the 850-1200 SF range. There are 286 parking spaces, as required by zoning – 1 for each hotel room (124), 1 per 100 SF of commercial space (64), 2 for each townhouse (20) and 1.5 for each apartment-type unit (78). 1 Space for 100 SF commercial space is fairly generous to drivers – the ITE trip generation manual shows most commercial retail to be well below that threshold, with only service outlets like fast-food joints, coffee shops and bars exceeding the 1 space/100 SF value.

The market issues with this plan are focuses on the hotel. A hotel was envisioned for the waterfront for decades, but being off by itself with only few nearby attractions (the trail and farmer’s market, not much else), it’s not as desirable as downtown, nor is the land as cheap as the Southwest suburban corridor. The feasibility study notes the waterfront might be a draw in the summer, but the weather the rest of the year would limit its appeal. With increased interest in living in the city, the hotel idea has had less allure in recent years. Still, the option was included for the sake of comment and critique. The study says a hotel would need 120+ room to support fixed costs (taxes, maintenance), and recommends a brand not present in Ithaca, like Hyatt or Starwood (Westin/Sheraton).

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The multi-family/townhouse plan does away with the hotel and instead focuses more on residential. The plan is composed of 14,160 SF of commercial space, 46 townhouses and 84 multi-family units (130 units total). 356 parking spaces are provided.

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The maximum density plan is as it sounds – the maximum legally allowed by zoning. The plan calls for 13,950 SF of commercial space, 137 multi-family units and 378 parking spaces.

Note that all three plans have a new indoor farmer’s market building, but that’s a separate development being spearheaded by the market.

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Renderings make for great eye candy, but the emphasis is definitely not on the architecture here, because it’s a bit like predicting what new cars will look like in 2020. You know it will probably have four wheels, lights and doors, but everything else is just for show. Whoever buys it will come in with their own idea of how things should look (see Form Ithaca’s waterfront study for their take). For the sake of reference, a copy of the aerial renders of each layout is here.

Now for a financial summary (link), the feasibility in its essence. HR&A Advisors, who partnered with Fish Associates for the study, notes that development can work with a potential buyer’s bottom line, but it’s going to be expensive and the developer will seek to minimize risk as much as possible – there’s not much padding in the profit. There are few comparable products in the county to the site, which makes determining the market size, rents and level or risk somewhat more difficult than usual. The study assumes a 3-year, single-phase build-out.

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The study assumes about $2.15/SF for a residential unit – in other words, a 1,000 SF unit (like a larger 2 bedroom or smaller 3 bedroom unit) renting for $2,150/month, similar to the Lofts @ Six Mile Creek or Gateway Commons downtown, which were used as comparables. Luxury housing, without a doubt. The waterfront commands a price premium, but the disconnection to the rest of the city could hinder rentals. Some condos/owner-occupied units are possible, but rentals would be the majority. Development costs range from $165/SF for a townhouse, to $215/SF for a multi-family unit, to $287/SF for the hotel. The value of a project ranges from $39-$45 million depending on plan, and with development costs taken into count, the land could sell for something less than $1,000,000 to $2.5 million. Over time, the project may generate $13-$22 million in tax revenue over 20 years, depending on approach.

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The land itself will not sell for the price required to cover the DOT’s cost of moving, which will have to be underway before any sale takes place. The move is estimated at $14 million. This means that the city and county may have to chip in on upfront costs in order to get a good project in that will pay itself off via tax revenue. HR&A notes that an RFP should be flexible in its options, and be open to zoning variances that might improve a project’s chance of success.

 

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For what it’s worth, Fisher associates also did a conceptual layout for a new DOT facility here.

According to the county, here are the next steps in the process:

  • A financial plan for the redevelopment of the Cayuga Inlet site that reduces the risk for private developers and generates revenue to support the move of the existing NYS DOT facility.
  • An analysis of the project’s impacts on infrastructure and utilities, the natural environment, neighborhood and adjacent properties, and the surrounding road network.
  • An estimate of the land value of as well as the individual components of the plan. The result will be an order of magnitude valuation of the site to better understand the project’s ability to attract private investment, support debt, and support a purchase price and tax revenue stream that could be used to advance the NYS DOT facility’s relocation.
  • A draft Request for Proposals (RFP) to solicit developers to redevelop the site.
  • An estimate of the ongoing direct fiscal benefits to accrue to the City of Ithaca and to Tompkins County, including real property taxes, personal property taxes, school taxes, sales tax, and other applicable taxes and fees.
  • A financial strategy for moving the DOT site with some combination of revenue from sale of the site, direct funding from NY State, and, possibly, a local contribution from anticipated tax revenues.

Expect that last one to be potentially controversial. The state might move slow but could be supportive, but the city will have to explain and hope that a possible initial investment in the DOT’s move to Dryden could pay off over subsequent years. Voters don’t always like long-term plans.





News Tidbits 10/24/15: Breckneck Builds and Market Slowdowns

24 10 2015

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1. College Crossings is dead. But its passing opens up an interesting conversation.

According to Ithaca town planning board minutes uploaded earlier this week, developer Evan Monkemeyer withdrew his proposal after planning board members weren’t comfortable with approving the environmental assessment and mitigation plan for the proposal (technically called a “negative declaration” by the lead agency on the SEQR). While at least one was bothered by the 3-story, 54′ height, many board members had visions of the Form Ithaca charrette for the property, and this didn’t quite jibe with Monkemeyer’s plans for South Hill’s King Road and Route 96B/Danby Road intersection. Minutes for the July and August meetings can be found here.

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Now, I will gladly admit that I was not a fan of this project, and I too wanted something more along the lines of Form Ithaca. I’m surprised, though, that it was enough to derail approvals of the project.

Now, the problem is, the town’s new comprehensive plan embraces form-based codes and “Smart Growth”, but the zoning is auto-centric, outdated, and doesn’t mesh with the plan. If you’re a developer or builder, big or small, and what’s legal and what the town wants are two very separate things…Houston, we have a problem.

At this point, there’s two questions that come to mind – one, given that the town planning board has cancelled most of its meetings lately due to a lack of proposals, is the disconnect between plan and zoning halting projects, and two, when will revised zoning be ready. For guidance and knowledge, I reached out to town of Ithaca assistant planning director Dan Tasman, because he’s pleasant, responsive and a pretty great guy.

As for question one, here’s his quote: “Seriously, I think it’s … complicated.” His thoughts were that there’s no indication whether the recent slowdown were caused by the planning/zoning disconnect, or natural ebb and flow related to lending and planning on the ends of home-builders and developers.

As for question two, the response was summed up as, “a lot of communities face the same issue after they adopt new comp plans. On the positive side, Ithaca’s not growing that fast, and the pace of development is slow. Still, there’s a sense of urgency.”

He’s right about the town not growing that fast. The permit records show that in September, the only new home-building permit was for a duplex at 214 Pennsylvania Avenue on South Hill (the Iacovellis building more student rentals for IC, probably). The previous month online, June, had four single-family homes, filling out lots in previous-approved subdivisions.

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Traditionally, the town of Ithaca has made up a pretty sizable chunk of the new home permits in the county. But if they only issue 30-40 this year (still better than last year’s 14), then it falls on the rest of the communities to try and make up the housing deficit, at least in the short term. Ithaca city’s total, anticipated to be 247 new units to be permitted in 2015, is only about 84 units right now, because John Novarr has yet to start Collegetown Terrace’s Phase III, and Steve Flash’s 323 Taughannock on Inlet Island has yet to start either. To bring down the deficit in a decade, as well as keep up with annual economic growth, the county would need over 600 units per year; it’s not certain if the total will reach even half that in 2015.

On the one hand, the town of Ithaca is trying to be proactive and adopt a new approach to development in quick and good order. On the other hand, it’s not a great situation for trying to make a dent in the housing deficit, with its attendant affordability issues, and there’s the possibility things are going to get worse before it gets better. I don’t know if there’s a right or a wrong way of going about it, but it’s a stressful setup.

2. On the county level, officials are seeking legislature approval for launching a study into the feasibility of an airport business/industrial park in Lansing. 52 acres of vacant land along Warren and Cherry Roads are being considered for the study, which would include a conceptual site plan of potential buildings and parcels, and an assessment of the needs and characteristics of companies most likely to open in the potential business park. Utilities and green infrastructure will also be looked at in the study. The projected cost is less than $50,000, and being paid for by the Tompkins County Industrial Development Agency (TCIDA). The feasibility study would be awarded next month, with authorization and approvals on the staff level.

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For what it’s worth, folks living up there are used to business traffic – Borg Warner’s 1,300 person plant is adjacent to the study site. The Warren Road Business Park lies a minute’s drive up the road, and the Cornell Business Park is about a minute’s drive south. The land also has municipal sewer, allowing for large-scale projects. A copy of the RFP states two that the two parcels shown above are the primary analysis area, with secondary areas closer to the airport runway and the resident land to the west separate from the park. They aren’t a part of the proposed business park, but the county asks that they be examined for development potential by the study.

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3. Details, details – the Holiday Inn Express already under construction in big-box land at 371 Elmira Road will be going in front of the city planning board this month for some slight modifications. The developer, Rudra Management and Rosewood Hotels of Cheektowaga, wants to increase the number of rooms from 76 to 79, and add three parking spaces accordingly. Along with that comes the bevy of supporting docs – technical drawings here, landscape plan here, landscape schedule here, and elevation drawings here. Apart from a palette change on the exterior (the red-brown color is “Decorous Amber“, part of the new official Holiday Inn color scheme per the architects’ cover letter), there are no changes to the design, the 3 additional rooms are just an update to the interior configuration of the hotel, one more room on each of floors 2-4. Apart from tastes in color and making sure the three new parking spaces pose no issues, the board won’t have to debate much here, and the hotel is still very likely to open next summer.

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4. In small but notable builds, Modern Living Rentals (MLR) is at it again. The relatively new Ithaca-based rental and development company is planning a triplex (3 units) at 1015 Dryden Road, just east of the hamlet of Varna. According to an email from MLR co-owner Todd Fox, the units, all 2-bedrooms, will start construction in the spring, and it’s a safe wager they’re shooting for an August 2016 completion, just in time for Cornell student renters. Judging from the renders on MLR’s site, each unit will be around 930 SF, so about 2,790 SF total. MLR teamed up once again with local architecture firm STREAM Collaborative for the design.

1015 Dryden is also home to a single-family home built in 1938, and a 4-unit apartment building from about 1980. The apartment building was badly damaged in a fire in 2011, renovated, and the site was sold to MLR for $425,000 in March 2014.

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5. While on the topic of MLR, let’s throw in some eye candy. Along with the plans for 1015 Dryden, additional images for the proposed 87-unit project at 815 South Aurora Street on South Hill can be found on their website as well. I’ve included two perspective renderings and an aerial render, but more images can be found here. The 87 units will all be studio apartments. STREAM Collaborative is responsible for this design as well.

A detailed write-up of the project, including the related cell phone tower issue, can be found here.

6. Out in Lansing town, there are two attention-grabbing news pieces from Tuesday’s next planning board meeting. One is a plan for an LP gas / petroleum distribution facility on Town Barn Road (parcel address 3125 N. Triphammer Road). A 30,000 gallon storage tank and gravel drive are planned in the initial phase, with 5 15,000 gallon tanks, a garage/maintenance building, and an office planned in later phases. Now, normally a project like this is not a big deal, but there’s the outside possibility local contingents of the anti-Crestwood, anti-fossil fuel groups will go on the offensive to try and stop it. So the potential for political football is there.

The other detail isn’t up for discussion yet, but the town notes that 15 duplexes (30 units) are being planned by former Lansing town supervisor A. Scott Pinney for a site on Peruville Road (the county calls it 428 Scofield Road, but the land has frontage on both roads). The site already houses 4 duplexes built in 2011.

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7. Instead of the the usual “House of the Week”, this week is more of a shout-out/advertisement. For those with cable, The DIY Network will be running a new episode of “Breckneck Builds” tonight at 11 PM (additional showings listed here), highlighting a just-finished home on Dryden’s Hollister Road. Quoting the promo write-up:

“Jordyn is ready to leave her rental behind and buy her first home, but what is most important to Jordyn is that her new home is eco friendly, so she is turning to the modular world to build a big house with a small carbon footprint.”

The modular home assembly was the work of local builder Carina Construction, who also tackled the modular units at the Belle Sherman Cottages site. Local builder, local resident, local project, so set your DVRs or TiVo.

8. Last but not least, here’s your Planning Board agenda for next Tuesday. Nothing new at this month’s meeting, but here’s the run-down:

A. Review of changes and revised approval for the Holiday Inn Express (see above)

B. Declaration of environmental significance and BZA reccomendations for 215-221 West Spencer Street– Pocket Neighborhood, 12 units w/ 26 bedrooms, Ed Cope/PPM Homes is the developer, Noah Demarest of STREAM Collaborative is the architect.

C. Environmental Review Discussion for the bar/lounge proposed for the renovation of 416 E. State – cover letter here, description here, letters of opposition in the agenda.

D. Public hearing and re-approval, Hotel Ithaca renovations, 222 S. Cayuga – Site Plan Review drawings here, renders here and here. Not sure there’s enough of a difference from the first time around, but at least the cross-catching on the exterior is gone.

E. Herson/Wagner Funeral Home renovation, 327 Elmira – Declaration of Lead Agency and Public Hearing – I wrote about that in the Voice here. Fun fact, the original proposed title was “Funeral home hopes to being new life to Elmira Road property”. It was rejected.