News Tidbits 3/12/17: Affordable Housing Week 2017

13 03 2017

It’s been a busy week. Let’s start by reviewing some of the entrants for the city’s affordable housing funds.

The Ithaca Urban Renewal Agency will be holding public hearings on March 16th and 23rd as part of the process to determine who will receive money from the Housing and Urban Development (HUD) grants awarded to the city. The 25 applicants, same number as last year, range from jobs training to community services to the development of affordable housing. All summed up, there’s $1.982 million requested, and $1.149 million available; that’s up from $1.85 million requested in 2016, with $1.54 million available (about $273,900 of that came from the returned funding for INHS’s cancelled project at 402 South Cayuga Street). In fact, the amount of money available is the lowest it’s been in a few years – in 2015, $1.78 million was requested out of $1.215 million available, just a little over two-thirds of the total. With the increasing requests, the chances for funding have gone down this year.

Without discounting the value of the other applications, the focus here will be on the real estate development projects. For the record, writing about a project is neither an endorsement or opposition from this blog.

1. The big new proposal coming out this year appears to be Lakeview Health Service’s plan for the corner of North Meadow and West Court Streets on the city’s West End. I expanded on the basics in a Voice article here, but for the blog’s sake, we’ll take a look at the finances.

In terms of leverage, it’s a pretty big project – a request of $250,000 towards a $20,081,186 project. However, keep in mind this project is only eligible for HOME funds and not CDBG (Federal Community Development Block Grants), and the city only has $295,245 in HOME funds to work with after overhead is taken into account – this is a pretty substantial request for something still in the conceptual stages.

The project fills a substantial by providing 50 units of affordable rental housing, all 1-bedroom units, in a 5-story building. Not only that, but half of those units would be set aside for those living with psychiatric disabilities. Ten of the general housing units would be available to those making 50-60% of area median income (AMI, about $27-$32k), with the other 40 going for less than or equal to 50% AMI. Those units will be interspersed with the general affordable housing. The special needs residents will be considered case-by-case; it’s for those who are generally independent, but may need assistance in stressful or difficult times. Lakeview will maintain an office on the first floor that will be staffed 24/7.

Some retail space will also be available on the first floor, which helps to cover the operational expenses, and meets the city’s goal of a more dense and vibrant West End. 17 parking spaces will be provided, so it’s expected the residents will utilize bikes and mass transit. The design will be slab-on-grade, with a deep foundation – soil in this part of the city is poor due to the high water table, so projects either have to be one or two floors with slab foundations, or they have to build enough floors to accommodate the costs of driving piles into the ground, in this case 80 feet down. This is something to keep in mind with the waterfront rezoning, as the soils are pretty similar.

The pro-forma assumes $730,300 in income in the first year after vacancies are noted, and about $313,500 in expenses, leaving a little over $416,800 for debt service. Everything goes up a little bit each subsequent year for inflation. The debt service is scheduled to last for 50 years.

Rochester’s PLAN Architectural Studios is the architect, so expect a modern design not unlike the cancelled concept plan for the Elmira Savings Bank site on West State and Meadow. The preliminary floor plan suggests the retail will face West Court Street rather than the Meadow/13 corridor.

As with many affordable projects, this one has a rather extended schedule due to the need to compete for public grants in tandem with private loans – funding applications are being submitted this year with loan awards during 2018, including the IURA’s. Construction would be from October 2018 to April 2020, with rent-up shortly thereafter. It’s odd to think this likely won’t even show up in the 2020 census, but we’re starting to get that far into the decade.

2. Meanwhile, Habitat for Humanity is continuing to move forward with their 4-unit townhouse plan at 402 South Cayuga. The non-profit has agreed to purchase the land from the city for $32,000, a below-market price that the city is fine with accepting, given Habitat’s plans for 4 owner-occupied affordable townhomes for those making 30-60% area median income (AMI). They are requesting $80,000 towards the $270,000 cost. It appears that Habitat’s splitting it into two phases, two units in each – given the small size of their organization, it’s a sensible approach. $540,000 for ~5200 SF of units is also quite a deal, at about $104/SF, about half the cost of an INHS project. Habitat does have volunteer labor that it can utilize.

Habitat is hoping to parlay the Morris Avenue two-family they’re doing later this year into sustained interest and funding for Cayuga Street – attracting donors with one city project, who might be interested in donating time and dollars to the next one. Like with Lakeview, construction is likely on a 2018-2020 timeframe. They’re also only eligible for HOME funds, so either Lakeview or Habitat will not be getting their full request, possibly both.

3. On the economic development side, TCAction is requesting $84,200 towards their $8.25 million childcare center at 661-665 Spencer Road. The project is part of the Amici House plan and was approved by the city concurrently, but technically separate from the 23 units of vulnerable youth housing being provided next door.

Named for a late, long-time TCAction employee Harriet Giannelis, the project helps fund the site acquisition – one of the land parcels is owned by the county, and TCAction has a $184,000 purchase lease-back agreement (the county bought the land from a private owner, and they’re currently leasing it to TCAction), which will be paid off partly with the IURA funds. The new 7,010 SF childcare center will provide daycare and early-education programs (Head Start) to 40 low-income children. Although promising three new jobs in the application, TCAction expects 21 Full-time equivalent positions to be created. It’s easier to provide an employee’s lifetime income documentation for 3 staff vs. 21. Welliver will be the project contractor, so expect local union labor.

Most of the other funds come from county, state and federal grants – another $500,000 comes from a loan with M&T Bank.

4. Also on the economic side is Finger Lakes Re-Use’s expansion plan at 214 Old Elmira Road. the non-profit has refined their plans for a new mixed-use expansion, and plans to start the city’s formal project review process later this month. Some of the numbers have been tweaked a little bit, but the basic components are the same – Finger Lakes ReUse would work with Tompkins Community Action (TCAction) to bring a new 4-story, 26,100 square-foot (SF) building to FLR’s property at 214 Old Elmira Road. The first floor would expand FLR’s retail operation, while the upper floors would provide office space for FLR, and 22 units of transitional housing for formerly homeless individuals. Plans also call for an 8,100 SF warehouse for salvaged lumber/wood, and a 600 SF pavilion. 79 parking spaces are included in the project.

As with TCAction’s Giannelis Center, 9 FTE jobs are expected to be created by the $10 million project, but FLR promises to provide previous income documentation for 3. The monetary request from the CDBG funds is $100,000, and they will also be using Welliver. Welliver seems to be the safe choice when a developer wants subcontracted or direct local union labor.

The application states the $100k is going towards site acquisition, which I’m not fully following since they own the property and it doesn’t appear any new property is to be acquired. Perhaps the site has legal stipulations that have to be bought away? It’s not totally clear.

If I can be an architecture critic for a moment, I like the warm colors, but that largely blank east stairwell is kinda bleak. Maybe use those orange panels on that as well? Or another warm color?

Anyway, we’ll find what the IURA thinks; funding will be determined by the end of April, and formally awarded in June after the city’s Planning Committee signs off on the disbursement.

 

 

 





News Tidbits 1/20/17: A Week Late and A Day Early

20 01 2017

1. In the town of Ulysses, work continues on a rezoning and reimagining of the hamlet of Jacksonville. The town held a meeting for public feedback this past Thursday. For those who are unfamiliar, Jacksonville is a cluster of a few dozen houses and a few small businesses about two-thirds of the way up Route 96 from Ithaca to Trumansburg. The town is working with local urban planning firm Randall + West to redevelop the hamlet, which has been plagued in recent decades with not just the standard rural upstate flight, but total disinvestment in some parts as a result of a massive gas spill in the late 1970s that poisoned the wells of neighboring properties, which Exxon bought and left in a state of low, sporadic maintenance.

However, some areas are served by municipal water systems, and the town is looking at expanding the hamlet zone, and creating a hamlet center zone in the hopes that they can give the hamlet “quality growth” and a Trumansburg-like flavor – small shops and density at the core, and somewhat walkable for basic errands, with sidewalks and interconnected streets. It’s a bit reminiscent the old “nodes” concept pushed by the county about a decade ago, but with more emphasis on walkability. The zoning brief shows participants have expressed a preference towards small-lot houses and 2-4 floor mixed use. With the latest public meeting completed, the plan is to have a zoning draft ready by March.

For the record, Ulysses permited 11 new homes in 2016, so even if the revised Jacksonville hamlet zoning becomes more accommodating, don’t expect a boomtown.

402_s_cayuga_habitat_2 402_s_cayuga_habitat_3

2. From the IURA Neighborhood Investment Committee agenda, a few more details about Habitat for Humanity’s plans for 402 South Cayuga Street. Four units, $720,000 construction cost, about $799,500 with soft costs. Savings from volunteer labor reduce the cost to $709,500. Funding comes from $100k in cash equity attained by the sale of the Morris Avenue townhouses, $300k in grants and $120k in HUD funding. Private donors and grants are expected to contribute about $189k. The initial design and land purchases expenses are being covered with funds from the $50,000 sale of a 32-acre parcel in Trumansburg for public green space. With multiple transactions required before anything can move forward, the plan is to break ground in June 2018 with construction lasting from 18-24 months.

The units will be sold to families making 30-60% of local AMI (i.e. $16-$32k/year) who put in the requisite sweat labor and take approved home-ownership and finance courses. The units will be solar-capable, though they’re still debating if the panels will be installed by Habitat or the responsibility of owners. By the way, the bright colors of the units are intentional.

The committee has said this project pretty much checks off every box on their want list, and Habitat for Humanity has been named preferred developer; contingent on approvals, the IURA will sell the property to the non-profit for $32,000.

amici_v3_1

3. For those that might have missed it, the Times’ new journo, Matt Butler, did a nice piece on TCAction’s Amici House development. The 23-unit project will be up for prelim approval at this month’s Planning Board meeting. In the piece, TCAction Director Lee Dillon notes that it’s not strictly for drug rehab, it’s for homeless youth regardless of the presence of addiction. The project also provides a low-cost childcare center with five HeadStart classrooms able to support 40-45 kids. Apart from a couple of concerns and complaint, reactions have been generally receptive to the plan, which will be located at 701 Spencer Road on the southern edge of the city.

As a former Head Start student, I never knew it was geared towards low-income families until I was in high school. There’s a lot of real, tangible value to Head Start as an early education program, especially in a community like Ithaca where the school district the kids enter into is capable and well-regarded. I applaud the Amici House project and look forward to its construction.

tiny_tims_7 unnamed

4. Tiny Timbers is getting quite creative. In addition to the five existing designs, Buzz Dolph’s team, working with architect Noah Demarest, have rolled out two new designs. The first is a one-story, two-bedroom house which looks to be in the 630 SF range, with the option of deleting the second bedroom available. The second design is called “big cube”, with a 21′ x 21′ footprint (two stories, 882 SF), slightly larger than the 18′ x 18′ regular cube. The website seems to be down for an update at the moment, but the 3D panorama still works.

The town of Dryden has granted approval to the Varna site, so at this point marketing and sales of the home sites should be getting underway soon. If successful, Tiny Timbers could be a solution to meeting an underserved and difficult-to-serve segment of the Ithaca market – new, modestly-priced homes.

20161119_145216

5. Here’s the funding application for the first stages of the Tompkins County Heritage Center. The request is for $35,500 from the legislature. That would cover community presentations, legal fees for partnership agreements, a retail space plan, branding language and design, concept overview, website, floor plans, exhibit design and the launch of a capital campaign later this year (May for the silent campaign, October for the public campaign). Along with the capital campaign, primary funding may come in part from the $500 million URI fund that the state awarded to the Southern Tier back in 2015. The History Center and its partners are exploring some of the way they can reuse the 18,000 SF space currently occupied by Tompkins Trust; for example, multimedia presentations in the former bank vaults. STREAM Collaborative is in charge of the new floor plans, STREAM will work with St. John Design Group to do the branding, and Todd Zwigard Architects will handle exhibit design. The Solstice Group will be providing guidance in assembling and running the capital campaign.

To be frank, I’m still not sold on the idea of the Heritage Center being a driver of tourism itself, but I could see it being an enhancement to downtown Ithaca’s other offerings, as well as a gateway for visitors staying at the new hotels near or soon to be open within a couple blocks of the site: “Come for the colleges, wineries and gorges, but check this out while you’re here, you just might find other things you want to do and see”.

20170107_124807

6. The initial December 2016 jobs reading of 73,800 rounds out the 2016 jobs reports. Tallying up the average, the initial estimate for the Ithaca metro for 2016 is 71,600, an increase of 1.7% from last year’s average of 70,400. As always, take the initial estimates with a grain of salt, since they’re liable to be adjusted a fair amount in the big March revision. However, should they hold up, it gives Ithaca the highest percent growth of any New York State metro in the past year (although for the record, NYC added 1.1%, or 109,000 jobs in the past 12 months, basically an Ithaca and a half). For reference, the 2011 jobs average was 66,200, and the 2006 estimate was 62,600.

With the exception of those neighborhoods closest to the universities, the biggest driver of the housing affordability crisis is not student population growth, which was about 196 over the past year (+285 Cornell, -89 IC). It’s the people relocating to/near Ithaca for work. That doesn’t capture the imagination and emotion as much as saying the city’s being overrun by obnoxious 20-year olds.

20161209_121807

7. Not everything recorded in an interview makes it into Voice articles due to space constraints. Here are some transcribed notes from the “State of the State Theatre” piece that didn’t make the final cut:

Q: Where do you see things going in the next 15 years? What will the State Theatre of 2030 be like?

Doug Levine: We’d be fresh off celebrating our hundred year anniversary! They don’t build theaters like this anymore, we’ve made a lot of improvements to the building, we’ve completely renovated the restrooms. Technologically, we’ll be a lot more advanced, paperless ticketing will be a seamless transaction. We want to maintain the building charm, it’s just a grand palace, but behind the scenes, we’re getting more efficient and innovative, we’ve upgraded to LEDs, and the stage sound and lights will be a lot more cutting-edge, and we’d like to be more energy efficient. I would like to see more flexible seating in 15 years. We’d stay with DSP [Dan Smalls Presents] long-term, that’s worked out really well for us. We’re going in a good direction and I want to keep building on that success.

Q: Dovetailing off that, Ithaca is one of the few growing areas of upstate, and it’s increasingly seen as a tourism and leisure destination. Do you see ways for the State to tap into that? What other opportunities do you see (I noticed something called Ticketfly)?

DL: Conferences are a growing opportunity, the growing economy has led to a spike in conferences from all over the state wanting to come here, and those thinking creatively reach out to us, we had 2-3 last year and [we have] more planned, they’ll use us and Cinemapolis, it’s never going to be a big component but it’s nice to have those groups coming in. We average over 50,000 a year through our doors, 40% from beyond Tompkins County – New York, Philadelphia, Canada.

20151108_154139

8. It looks like the town of Ithaca wants to extend their two-family home moratorium beyond the initial 9 months. 9 months was explicitly chosen after considerable concern from developers and homebuilders last Spring stemming from the initially-proposed 12 months, which would have impacted two construction seasons. The town doesn’t even provide a new timeline, it leaves a blank next to 2017. Really burning through the goodwill here.

 

college_townhouses_v2_1

8. Looks like a rather luckluster agenda for the planning board next Tuesday. A bunch of projects up for preliminary and/or final approval. These meetings could start becoming very light on substance if there isn’t more in the pipeline. Here’s the schedule:

1. Agenda Review              6:00

2. Privilege of the Floor    6:01

3. Site Plan Review
A. Project:  Amici House & Childcare Center                               6:10
Location: 661-701 Spencer Rd.
Applicant: Tom Schickel for Tompkins Community Action (TC Action)
Actions: Consideration of Preliminary & Final Approval
B. Project: City Centre — Mixed Use Project (Housing & Retail)       6:30
Location: 301 E. State/M.L.K., Jr. St.
Applicant: Jeff Smetana for Newman Development Group, LLC
Actions: Public Hearing, Potential Consideration of Preliminary Approval

C. Project: College Townhouse Project 7:00
Location: 119, 121, & 125 College Ave.
Applicant: Kathryn Wolf, Trowbridge Wolf Michaels Landscape Architects, LLP
Actions: Approval of Trans. Demand Management Plan, Consideration of Preliminary & Final Approval

D. Project: Apartments (5 Units) 7:30
Location: 126 College Ave
Applicant: Visum Development Group
Actions: Public Hearing, Approval of Trans. Demand Management Plan, Consideration of Preliminary
& Final Approval

E. Project: Apartments (9 Units) 7:50
Location:210 Linden Ave
Applicant: Visum Development Group
Actions: Public Hearing, Approval of Trans. Demand Management Plan, Consideration of Preliminary
& Final Approval

F. 107 S Albany St – Sketch Plan 8:10

Presumably, the Stavropouloses are heading back for some type of major revision to their 6-unit, 9-bedroom proposal. The previous plan was an addition onto the back of the existing century-old property. We’ll see what is changed, and by how much. Zoning is CBD-60 – five floors, no parking.
G. 821 Cliff Street – Parking for Business in a Residential Zone 8:30

Parking for the medical office building at 821 Cliff Street; perhaps an expansion to help market it, as I see postings for its space scattered throughout commercial listings. Nearby properties are vacant land.

4. Zoning Appeal: 8:50
#3056, Area Variance, 301 E State St.

5.Old/New Business:
A. Sidewalk on Worth Street -Planning Board Resolution to Board of Public Works
B. 2017 Planning Division Work Plan – Planning Board Comments
C. Update — Joint Planning Board/ILPC Meeting (DeWitt House)

Regarding 5B., Apparently the city is still having discussions with Fane regarding a development of 330 College Avenue, the former Green Cafe on the SW corner of College Avenue and Dryden Road in inner Collegetown. I write “a” redevelopment because the previous 12-story proposal didn’t look like it was going to make friends and influence people. Also on the long-term agenda are the Maguire plans for the Carpenter Business Park, Ithaca Gun, and Chain Works, which is still undergoing environmental review. Those are going to be long slogs, so don’t worry about missing anything.





News Tidbits 5/28/16: A Battle Between Neighbors

28 05 2016

201_college_v2_3

1. It seems the Planning Board had something of a philosophical crisis at their meeting, per the Times’ Josh Brokaw. The cause of the crisis is Neil Golder, Todd Fox and 201 College Avenue. Here’s the backstory.

201 College is a 2.5 story, 12-bedroom house on the corner of College and Bool. Local developer Todd Fox has a proposal on the boards for a 5-story apartment building (shown above). Neil Golder lives next door at 203. He moved into 203 in 1972 when he was a grad student at Cornell, bought the place in the early ’90s, lived there with his partner Kathy until she passed a couple of years ago. He still lives there, and rents out spare bedrooms.

201 and 203 were rezoned as part of the 2014 Collegetown rezoning to MU-1. This came only after years of debate, and Neil was one of the residents who pushed to have the properties rezoned in 2009 with a payment in lieu of parking scheme that upset a lot of the landlords, who mounted a significant legal challenge that prevented the rezoning from happening – more about that can be found in this Voice explainer.

For the record, Golder has never been much of a fan of development in Collegetown. His two big things have been that density is bad (but he seems to have mellowed on this issue since the parking push in 2009), and that Collegetown needed a grocery store. He was supportive of Collegetown Crossing because the developer (the Lowers) live next door at 205 and Greenstar will be opening a grocery store on the ground floor.

So, back to the zoning. There are nine MU-1 properties. The four between Catherine and Cook belong to Novarr – he has not expressed any intent to redevelop them. The other five are 215, 209, 205, 203 and 201 College Avenue. Novarr has expressed intent to redevelop 215 starting in late 2017. 209 is Grandview House, a historic landmark, and pretty much untouchable. 205 is Lower’s house, 203 is Golder, and then you have 201.

201 is the southernmost of the nine, and therefore most likely to stand out. The thing is, zoning consistent, when development happens organically, it means the parcel most likely to stand out isn’t necessarily the last one to get developed, nor will it necessarily be the smallest. In this case, the physical transition is from 2.5-3.5 story houses, to 5-story apartment, to 2.5 story house, and then a 3.5 story house and 5-story boarding house.

As of right, Todd Fox can build up to 5 floors and 70 feet tall as an average height. The site slopes slightly, so the building is shorter on the north side than the south side. The design fits the zoning – but it has to go to the BZA for a couple of minor area variances, one for entrances off of Bool, and the other, the board requested the project incorporate – the building was moved northward slightly to allow for street trees and a wider sidewalk on College Avenue. The May agenda noted that the Board had no concerns with either variance.

Golder has sent letters to the Times and the Voice (directly to my colleagues Mike and Jolene but not to me, interestingly), he has been stopping people on the street to sign his petition, he’s tried the ILPC, Planning Board, Historic Ithaca, friends in city government, even the city forester, everything and everyone he can to try and halt the current plans, but there has yet to be a compelling, objective counter-argument.

Countering some of the claims in his many letters, the individual pine trees at the front are not historic landmarks or city-owned, the city has to review and approve of construction plans anyway, and the traffic issue had already been discussed back during the rezoning. The developer has agreed to push the building back, which will give more visibility to Golder’s driveway, and a curb bump-out at the corner is proposed as part of the project. So that leaves the aesthetic argument of “I don’t like it”, which puts the Planning Board in a really difficult spot because as long as the form districts say the design is fine, that argument won’t stand up to a legal challenge.

There is a strong argument with his solar panels, which have been a part of broader discussion within the city. 201’s height would marginalize Golder’s solar panels, so in that case the project causes non-subjective hardship; this could be mitigated if 201 has solar panels (they are being considered) and shares electric, or by other compensation. Although, it might depend on when the panels went in, before or after rezoning. If people start rushing to put up solar panels as a back-door method to thwart development, the city’s going to step in.

So here’s the essence of the issue – after years of fighting over zoning, and finally settling on a compromise in 2014, the city is faced with a development that is legal, but it’s vehemently opposed by a venerable and high-profile neighbor, where the objections can be effectively mitigated, but not necessarily the way he wants them to be. A planning board member has to find the balance between allowing everyone to have their say, and acknowledging valid issues that should be addressed, without letting individuals exert too much control over their neighbors and infringing on property rights.

waterfront_foreclosure_parcels_0516

2. Okay, onto other things. The city might be acquiring a couple of sizable West End/Waterfront parcels from the county. The properties, which consist of a pier/boardwalk, informal parking and vacant land, are located at the end of West Court and Cascadilla Streets, and are being seized as a tax foreclosure. The county is looking at selling them to the city in exchange for the $42,844 in back taxes. The larger one is 2 acres, the smaller 0.6 acres, and in total they’re valued at $630,000. The owner, an LLC, picked them up for $156,625 in 1999.

If the city picks them up, they’ll be filed into the IURA’s holdings for potential sale down the line. As it is, the parcels have issues – the railway, accessibility, and soils down here are known for being difficult to build on. But in the long term, there’s potential for water-focused amenities, private development, or a combo of the two. It looks like a good investment given the city’s still-in-the-works plan to encourage redevelopment of the West End and Waterfront, so this is worth keeping an eye on as things move forward.

402_s_cayuga_st_boggsfernandez

3. The IURA reviewed funding proposals for affordable housing earlier this Spring, and the minutes are now online. the duplex at 622 West Clinton, and the affordable unit with the 4-unit 402 South Cayuga project were not funded. The IURA is encouraging 622’s applicant to re-submit for next year, and the minutes note that 402 is likely to still go forward, but without the affordable unit.

It’s also been noted that there is some discontent with INHS because the cost of their projects are coming in high, and that they would like more diversity in applying entities. However, the seven townhomes at 202 Hector and the single-family house at 304 Gector (all for-sale housing) are fully funded. The Habitat for Humanity duplex on the 200 Block of Third Street is also fully funded.

rumble_seat_1

4. Another piece of news from the IURA – the new occupant for the Rumble Seat Music building. It appears to be a drink bar called “Watershed Union“, serving coffee and juice by day and adult beverages by night. Five or six living wage jobs would be created. There might be some grumbling over the moral evils of alcohol, but the business plan has the support of neighboring businesses and the Downtown Ithaca Alliance.

Also, the Canopy Hilton is still moving forward. But are doing a minor LLC ownership change to allow another Patel family member to be a part of the ownership team.

5. Hitting the market this week, for all those big-potato investors out there – the Belmont Townhouses at 324 Spencer Road. The listing from local realtor Brent Katzmann has the price set at $2,595,000, for a 14-unit complex that opened in 1995. The posting mentions the possibility of a 1031 Exchange, which allows an individual to sell a currently-owned investment property, and buy a new investment property of equal or greater value while avoiding capital gains taxes – continuity of investment locks up the profit gained from sale.

20160522_160150 20160522_160211
6. House of the week. This house is on the 100 Block of Campbell Avenue on Ithaca city’s portion of West Hill. This home is being built by Carina Construction, an Ithaca-based modular home specialist. The foundation and garage were poured and the pieces were probably craned on and locked together sometime in the past few weeks – a little bit of siding has started to show up on the front. The process is a lot like the one Carina used to assemble the Belle Sherman Cottages across town.

Color me impressed, the design is unique, and once exterior details like the porch and second-level deck go on, I imagine it’ll look really nice. Tompkins Trust lent $280,000 back in April, and the construction permits were issued not long thereafter (the total project cost is in the $320k range, per the permit filing). The land was created in a lot subdivision last year, and sold for $35,000 last August.





Affordable Housing Week 2016

8 03 2016

Expanding on last year’s theme, it’s affordable housing week. The Ithaca Urban Renewal Agency will be holding public hearings on March 24th and 28th as part of the process to determine who will receive money from the Housing and Urban Development (HUD) grants awarded to the city. The 25 applicants (up from 21 last year) range from jobs training to community services to the development of affordable housing. All summed up, there’s $1.85 million requested, and $1.56 million available, so that means an 84% chance of funding, all parameters being equal. For comparison, in 2015, $1.78 million was requested out of $1.215 million available, just a little over two-thirds of the total. The chances for funding have gone up this year.

Part of the reason for the better chances this year is unfortunate – the return of $273,869 in 2014 HOME funding meant for INHS’s 402 South Cayuga project that has not come to fruition. Although HOME funds can be awarded for rental projects, the funding was awarded by the city specifically for owner-occupied housing, so the money comes back into play. There’s also about $26,300 left over from last year that went unallocated.

Without discounting the value of the other applications, the focus here will be on the real estate development projects. For the record, writing about a project is neither an endorsement or opposition from this blog.

202_hancock_1

202_hancock_2

1. Last year, INHS applied for and received almost $458k for 210 Hancock, for which site prep is currently underway. This year, they’re applying for funding for two projects – seven owner-occupied units at 202 Hancock (new tax parcel), and the single-family home planned for 304 Hector Street.

The 202 Hancock townhouses are requesting $567,000 towards a total project cost of $2,359,013. This is a high figure, but it also seems like it would address the recent, very major issue of rapidly rising construction costs derailing multiple affordable housing projects. INHS will be putting up $550,000 of its own money, and already has received a $280,000 city/county/Cornell grant (Community Housing Development Fund) towards the project. The rest comes from bonds, the state, land equity and the buyers themselves.

202_hancock_3

Doing the math ($1,438,640 construction cost, 8,463 SF total), the construction cost budgeted is $170/SF, a little less than the $190/SF they paid for 203 Third Street, but not impossible. Perhaps a larger project of townhouses can utilize cost efficiencies to keep the price down a bit.

The two-story wood frame townhouses would be LEED Certified. Five two bedroom units (1,147 SF) would be sold for about $114,000, and the two three-bedroom units (1,364 SF) for $136,000, available to those making 60-80% of local AMI, or $37,000-$49,000/year. The townhouses would be a part of the Community Housing Trust (CHT), keeping them affordable even as they are sold to others in later years. the anticipated construction period is November 2016 – June 2017. HOLT Architects of Ithaca is designing the townhomes.

Design wise, they look halfway between the first iteration of the rental townhouses, and the approved version.

304_hector_inhs

2. Also from INHS, the 304 Hector application. The amount requested is $100,000 towards a $369,294 project. This seems remarkably high. In the application, INHS notes the construction costs of $262,000 are from actual bids received from Rick May Construction (who is also doing 203 Third Street) and subcontractors. The math comes out to about $191.50/SF. One of the reasons for the very high cost is that INHS is required to hire contractors with enough liability insurance to cover any major accidents, and a lot of smaller builders don’t have enough insurance. $40,000 has already been granted towards the project from the CHDF.

The house would sell for $142,000 to a family making $37,000-$49,000/year (60-80% AMI), the same parameters as the 202 Hancock townhouses. The house would also be a part of the CHT. An April 2017 – January 2018 construction is planned. Local company STREAM Collaborative is the house’s architect.

402_s_cayuga_st_boggsfernandez

3. Meanwhile, at the 402 South Cayuga Street site, developer/architect Zac Boggs and Isabel Fernandez are requesting $105,000 towards their 4-unit townhouse project, priced out at $1,020,000, of which $820,000 is for construction. Of the 4 units, one two-bedroom unit will be available to a family making 80% AMI or less (i.e. $49,000/year or less), selling at $150,000. The other three units, 2 2-bedroom and 1 3-bedroom, would be rented out for 2-5 years, and then sold on the “lower-end of market-rate”, which is estimated in the mid to upper $200s. The units would follow LEED standards, and the affordable unit would be put into the CHT.

Precision Builders of Ithaca would construct the project. A May 2016 – June 2017 build-out is planned, though it doesn’t appear to factor in the planning board approval process.

Aside from the grant, most of the funds for the project will come from a bank loan, with $120,000 of their own money and $40,000 in county bond funds. Assuming these are the same size as the 2 and 3-bedroom INHS townhouses, the construction cost comes out to about $170/SF.

One thing that comes to mind in the context of the inclusionary zoning debate is that this might be the only way to really go in the long-term. If INHS gets priced out of feasibility in the city, trying to cover the cost of affordable units with substantially more expensive market units might be the only option, which is a rather uncomfortable thought. One of the issues with inclusionary zoning is that it prices out the middle; developers have to make up the cost somewhere, and the market-rate units are the scapegoats. Communities end up with a small portion of affordable housing, but mostly expensive housing. With this project, part of the money is being recuperated by renting the other units for at least a few years, which some may scoff at, but costs are, what they are.

habitat_2

4. Habitat for Humanity is requesting $75,000 towards their $305,500 duplex project at 101-107 Morris Street (to be redesignated 202-204 Third Street) on the Northside. Each unit will sell to a familiar making less than 60% AMI ($36,750/year), and the families will have to put in “sweat equity”, helping to build the houses (350 hours of labor). To keep costs down, labor is volunteer-based and materials are donated – as a result, the project only has a $180,000 construction cost, a little over $60/SF.

The units will be two-story, have porches and designed to fit into the neighborhood. The state has given the project a $70,000 grant already, and the city/county/Cornell CHDF has given $80,000. the rest is covered by corporate grants (Cargill, Lowe’s, M&T Bank) and individual donations. A timeline of April 2017 – April 2018 is anticipated.

No renders, but the above site plan was included in the application.

622_w_clinton

5. Last, the only truly new project for this post. 622 West Clinton Street in the South Side neighborhood. The applicant, Jerame Hawkins, proposes deconstructing a decaying barn at the rear of the property and replacing it with an affordable owner-occupied duplex. Hawkins, who runs the county’s Youth Advocate Program, would make each unit available to a family making 60% AMI or less ($36,750/year or less), in particular Section 8. The duplex would be modular, 3-beds and 1,561 SF each, with Carina Construction and Finger Lakes ReUse working with Hawkins on the project. The construction cost of $292k works out to about $93/SF.

The house at the front of the property, which dates from the late 1800s, would be renovated and retained as affordable housing. Hawkins is requesting a grant of $135,000 towards the $364,634 project. A project timeline of October 2016 – January 2017 is given in the application.

The one potential red flag I’m seeing is a line in the app that says “retaining for a minimal [sic] of 1 year”. Either that gets clarified and extended, or the IURA won’t be interested this proposal on account of it not being affordable for long enough a period of time.





News Tidbits 2/13/16: A Week of Uncomfortable Prospects

13 02 2016

lansing_cmt
1. We’ll start off this week with some zoning and land-use discussion. the village of Lansing, which tends to have a very tight grip on their zoning, modified their code for a new addition, called “Commercial Medium Traffic” (CMT). The zone, which has taken about two years to get to this point, will override what is currently zoned a Commercial Low Traffic (CLT) area. As a result of the rezoning, some previously-okayed uses in their CLT zone – clinics, group homes, construction storage, sit-down restaurants – have been removed, but adds cafeterias and assisted living facilities. Splitting hairs, one supposes. Looking at the use guidelines, about the only big use the CMT allows that CLT doesn’t is “small-scale sales” like boutique shops, and “low-traffic food and beverage”, which covers bars and sit-down restaurants.

The reason for this change comes from a couple of angles – the village has a number of vacant or underutilized parcels in the affected area, which they feel is detracting. Developers have approached the board about building retail/restaurant space on some of the land, but that would have required rezoning to commercial high traffic. But the high traffic zone also allows “hotels and big boxes”, so the village needed an in-between. Now it’s finally in place.

ithaca_eddy_land

2. Now for another land use debate. The town of Ithaca has authorized doing an analysis on what a fair bid would be for the development rights of 33 acres of land off of Seven Mile Drive and Route 13. These parcels are currently farmed by the Eddy family, and a mini-golf facility was previously proposed on one of the properties. Before that, they were to be included in the 2014 Maguire development before the Maguires pulled their project, partially because the town said the dealership and headquarters proposal wasn’t in line with their new Comprehensive Plan.

The problem is, neither is this. The town would buy this with the intent on keeping all of it farm fields. The comprehensive plan called for TND Medium Residential (townhouses, elder cottages, small apartment buildings and compact single family) and the “Inlet Valley Gateway” (quoting the plan, “intended to be a setting for a mix of office, small-scale retail, hospitality, and tourism and agritourism uses, with low-impact light industrial, artisanal industrial, and skilled trade uses”). The concern is, if the town starts displacing development from the areas recommended, developers will start looking at areas where it’s not recommended.

For the record, the 22.38 acre parcel is for sale for $425,000, and the 10.59 acre parcel is for sale at $325,000. The assessed value is only $188,800 total. The development rights will probably fall somewhere between. This definitely isn’t as cut-and-dry as the 62 acres the town picked up for $160k in December. The town will have an idea of the cost for the rights later this year.

simeons_v2_2

3. A few notes from this week’s TCIDA agenda. The Hotel Ithaca project is up for final approval of its tax abatement, which given that the public meeting drew not a single commenter, shouldn’t have any issues going forward. 210 Hancock also has some slight tweaks to its agreement, and Simeon’s is applying for a sales tax exemption on construction materials and refurbishment. The $660,000 project’s exemption would be worth $27,079 by their calculation. Simeon’s estimates 27 jobs at opening, and 14 new positions over 3 years, about half of which appear to be living wage. The tax exemption amount is small enough that it seems like a non-issue, but we’ll see what happens if the application is accepted and a public hearing scheduled.

tmpud_waterfront_1
4. From the city Planning and Economic Development Committee – the Commons street-level active-use ordinance and the waterfront Temporary Mandatory Planned Unit Development (TM-PUD) were moved to go ahead to the Common Council next month. More on the Commons ordinance here, and the TM-PUD here.

Committee members were favorable to an amendment to the cell phone tower fall-zone law, though perhaps not in the most ideal way for Modern Living Rentals’ 87-unit 815 South Aurora proposal. On the bright side, a draft law for circulation could be ready by April. On the not so bright side, the city’s going with the 120% value used by other municipalities – that would give the 170 ft. tower near the project site a 204 ft. no-build fall zone instead of the current 340 ft. (200%), but it’s still greater than the 180 ft. MLR requested. This means the project would probably need to be revised somewhat if that’s the version of the law that moves forward. But, something would be better than nothing.

Oh, and the chicken law was voted for circulation, which opens the possibility of a council vote in April, for 20 test subjects in a pilot program.

402_s_cayuga_st_rev2_1

5. The Ithaca Urban Renewal Agency is in a bit of a dilemma. INHS’s 402 South Cayuga project, which has 4 units of affordable owner-occupied housing, is stalled. The construction costs are rapidly rising out of the range of feasibility. The only way it moves forward is if it’s a rental project, which is easier to finance.

402_s_cayuga_st_boggsfernandez

Ostensibly, the IURA would like owner-occupied housing. And a rival proposal has been offered by local architect Zac Boggs and his partner, former Planning Board member Isabel Fernández. It would offer four rentals for 2 to 5 years, and then go up for sale – in the $180-$230k range, which is somewhat more than the $110-$130k range typically offered by INHS. So what do you do? Sacrifice some affordability for some home ownership, or vice-versa? The IURA needs to figure that out. Additional renders and cover letter here.

hilton_canopy_v9_1

6. I think this is the ninth iteration of the Canopy hotel; quite possibly the most version of a single project I have on file. What’s changed since last time? Well, the inset panels in the northwest wall are back. Some cast stone was added to the base,  the second floor rood deck was tweaked, a cornice element was added to the mechanical screen, and the trellis and driveway pavers were revised. It looks like an improvement, and hopefully one that Baywood Hotels can bring to reality after being stuck in finance limbo for so long. Additional imagery here, cover letter from local architectural consultant Catherine de Almeida here.

varna_plan

7. The Times’ Michael Nocella ran a really nice piece this week looking at the past, present and future of development in Varna. According to the article, Modern Living Rentals (my sympathies to Charlie O’Connor and Todd Fox, since all of their projects seem to be wrapped up in one debate or another) needs a unanimous vote of approval for the 8-unit, 26-bed addition to 902 Dryden Road to be able to move forward (a 6-bed duplex already exists on the property). In Dryden, the five-member town board does the vote, and the current Dryden town supervisor helped close the sale of the parcel to MLR, so he must recuse himself. Shooting it down at this point, after the project’s cut its size by 40% from 18,000 SF to 11,000 SF, would be very unfortunate, and create an uncomfortable disconnect between the Varna Master Plan designed with community input, and what the board thinks Varna should have.

5_Freese_2013

As mentioned in the article, the northeast corner of Rt. 366 and Freese Road is one of those parcels where the town and Varna residents think development should happen, but really isn’t feasible. I remember when Todd Fox shared his proposal (STREAM Collaborative’s drawing above) with the town for that corner, and the reception was very positive, much more so than the owner’s earlier plan for 20 modular townhomes. Then not long after, everything ground to a halt. MLR decided not to buy the parcel after it turned out the land was incredibly unstable (there used to be a huge pile of material on the site, dubbed “Mount Varna”; the story of which gets written about extensively on the Living in Dryden blog, since Simon St. Laurent and the owners had quite the feud going). The chances of anything but grass growing on that corner is pretty low.

So, with the former “Mount Varna” land in mind, a master plan is not an exact thing; if it shows for three sets of five townhouses on a parcel, that’s not what may necessarily may happen. It just indicates the kind of density and scale of development the plan deems appropriate. 902 Dryden isn’t drawn on the master plan, but the plan welcomes the idea of townhouses on Forest Home Drive, which 902 abuts. So a vote in favor of the 8 new townhouses is, indirectly, a vote of support in the Varna Master Plan.

20151108_154139

8. The town of Ithaca’s Planning Committee will be looking into writing up and establishing a moratorium on all 2-unit residential buildings at its meeting next week. Doesn’t specify location, or rental vs. owner-occupied; just a ban on buildings with two units.

On the one hand, this is probably an attempt to curb student housing being built near IC; the town’s Planning Committee chair is someone with a long history of fighting development, and is seeking greater input on the Planning Board’s discussions. Students and student-amenable housing are just his favorite topics as of late. But the agenda doesn’t specify the type of unit or location, and that is very concerning. From a number of reasons, a broad-brush moratorium, without regard to neighborhood or owner occupancy, doesn’t seem like a good idea.

1) If the goal is to limit student housing, only a small geographic subset of the town is really necessary. IC students, which seem the primary cause of concern, congregate only in the neighborhood adjacent to campus.
2) The moratorium could harm affordable home-ownership. In a number of cases, one unit is occupied by the owner, and the other is rented out as a source of income.
3) Limiting new supply keeps housing costs high and pressures them to rise higher, since demand will not be altered by the moratorium.
4) The town only permits a small number of units each year. In 2014, it was 10 single-family and 2 2-unit properties (so, 14 units total). In 2013, it was 25 single-family, 10 2-unit. The preliminary 2015 numbers are 21 single-family, and 3 2-unit. There were no permits for structures with 3 units or more.

I asked Ithaca town planner Dan Tasman, and while his email notes that it’s targeted at student rentals, it doesn’t assuage my concerns of being too broad of an execution.

“The Town’s zoning code allows accessory apartments in some zones.  The intent is to let a resident have a close family member or friend live with them, or a tenant to help pay the mortgage, in a space that’s more private.  Basically, an in-law apartment.  However, a few builders are taking advantage of the privilege.  They’ll build a house with an accessory apartment, and rent out both units, with student tenants in mind.

There’s also concern about a growing number of “student specials” — very utilitarian duplexes, purpose-built for student rental.  There’s quite a few of them on Pennsylvania Avenue and Kendall Avenue, near Ithaca College.  Their design and siting can often seem institutional, and out of place with the neighborhood’s residential character.”

I’m not a proponent of moratoriums at all, but I’m hopeful this proposal isn’t as broad as it looks. If the net is cast too wide, this is going to do a lot more harm than good.