News Tidbits 9/11/18

12 09 2018

1. The first phase of the airport expansion has been awarded. As reported by my Voice colleague/boss Kelsey O’Connor, Streeter Associates of Elmira placed a construction bid for $7,638,000 to complete the first of three phases. The initial phase will be covered with a state grant, and the airport has applied for federal funding as well – about two-thirds of the $24 million total cost is covered by grants, and the airport is looking for ways to close the gap. The bid was the lowest received, with Murnane Contractors offering a more expensive construction bid of $8,483,000 for the first phase, and LeChase Construction coming in with a bid at $8,996,000. Phase one entails renovating and expanding the terminal, updating the airline offices, moving screening equipment behind the counter areas, utilities upgrades and improvements to the lobby area for better flow. Streeter has a long track record in Tompkins County, with projects including the expansion of Ives Hall on Cornell’s campus, and the Africana Studies and Research Center.

Also discussed at the meeting was an agreement to sell 15 acres of airport-owned land along Warren Road to the NYS DOT for $840,000. This vote was not without some contention, with residents of Hillcrest Road complaining about the relocation to a location near their properties, and the final vote to approve the sale was a 9-4 split. Note that this is just the sale of land, a site plan and environmental analysis have yet to be performed, but a new facility on Warren Road would allow the DOT to move from the inlet location that the city and county have sought to redevelop into mixed commercial and residential uses. The primary complaint seems to be that the sale was too sudden; and to be fair, it was short notice. I wasn’t even aware until reading the meeting agenda a week earlier. However, the intent to move to Warren Road has been stated on multiple occasions, and it’s been in the planning stages for about two years, since they decided the property they bought in Dryden wasn’t going to work out.

2. A couple of interesting little notes from the Journal’s article examining the City Centre project on the 300 Block of East State Street in Downtown Ithaca. The Ale House restaurant’s move and expansion into the ground level will create about twenty additional jobs, and the build-out of the new restaurant space will take place from January – June 2019. Secondly, the developer, Newman Development Group, says a tenant has signed up for one of the two remaining retail spaces, but a confidentiality agreement prevents them from naming the business. Talks are also underway for filling the third retail space. I don’t have revised numbers for the retails spaces (after initial approval, the ground floor retail was consolidated from four spaces to three), but the Ale House is filling the largest space (5,700 SF), and the remaining two are approximately a few thousand square feet each.

3. The city of Ithaca Common Council decided to be proactive at their last meeting and name preferences that they would place strong emphasis on when considering a PUD for the Immaculate Conception site on the 300 Block of West Buffalo Street. As reported by my new Voice colleague Devon Magliozzi, the site sits in the city’s recently-approved Planned Unit Development Overlay District (PUD-OD). Within PUD-ODs, projects that don’t fit with existing zoning may be allowed if they offer community benefits. The Common Council and Planning Board both need to approve PUD-OD proposals.

A preference isn’t a stipulation, but since the Council votes on PUDs, it’s a strong clue to what they’ll expect in return for granting a variance. One is the inclusion of affordable housing, and the second is retaining the gymnasium for use as a publicly-accessible indoor recreation space, noting that the Greater Ithaca Activities Center is headquartered next door and would benefit from the facility.

In theory, a buyer could buy the property and do a straight-up renovation without needing to invoke the PUD-OD (the site is R-2a residential, but the building itself would give the benefit of pre-existing variances), but given the Rochester Diocese’s marketing of the PUD in advertisements, it’s a strong possibility a buyer will want to utilize the PUD.

Proposals for the site are due to the diocese by October 5th. Once a developer is selected and a plan submitted for review, then the process of PUD negotiation with the city can begin in earnest.

4. Here’s a look at Emmy’s Organics application for a tax abatement from the IDA. The organic cookie maker is planning a 14,650 SF facility on the 200 Block of Cherry Street in Ithaca’s West End, with a potential 20,000 SF on top of that in 2-3 years time if business continues to grow as it has.

With land acquisition, soft and hard construction costs, and new equipment, the project investment for phase one is $2,292,000, and would retain 28 jobs in Ithaca as well as support the creation of 19 new jobs. The time frame on this is quite fast – due to contracts that can’t be fulfilled in the existing premises, Emmy’s wants to start construction this fall and have the building opened by Spring 2019. Rowlee Construction of Fulton (Oswego County) has been retained as the general contractor.

According to the documentation, Emmy’s is seeking the standard 7-year abatement plus an energy incentive that enhances the 7-year abatement (the incentive tweaks the tax rate for those seven years and saves Emmy’s an extra $73,820), as well as mortgage recording and sales tax exemption on equipment and construction materials purchases. The abatement plus energy incentive would save $215,142, the sales tax exemption $97,600, and the mortgage tax exemption $4,298, for total savings of $317,040. New taxes in the first seven years would total $70,889 in revenue to the county, city and ICSD.

Although the application says 19 new jobs, that might be for both phases – only seven jobs are listed in the application, four production positions ($13-$15/hour), a $20/hour clerical positive and two $45/hour administrative positions. They state they are willing to pay a living wage, so it seems the IDA could make that part of the conversation. The meeting will be Thursday the 13th.

 


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News Tidbits 8/11/18

11 08 2018

News Tidbits 8/11/18

1. It looks like the Mettler-Toledo facility has a buyer. Ongweoweh Corporation bought the 27,000 SF property at 5 Barr Road in Dryden for $3.24 million on August 3rd. Readers may remember that Mettler-Toledo decided to consolidate the Hi-Speed Dryden plant with a new facility in the Tampa Bay metro, taking 185 jobs with it. Founded in 1978 in Spencer, Ongweoweh Corporation is a Native American-owned pallet management company providing pallet & packaging procurement and design services, recycling services and supply chain optimization programs. The firm had only recently bought its existing 17,577 SF headquarters at 767 Warren Road in Lansing, for $2 million in September 2016 – as Ongweoweh moves to the larger space, it’s putting 767 Warren up for sale for $2.3 million. It’s not clear if this physical expansion will add jobs, and a request for comment was not returned. The company employs a little over 100 people according to a third-party profile, and 58 are based in the Ithaca area.

2. Let’s talk about another business expansion – Emmy’s Organics. The organic cookie producer’s new warehouse and HQ came one step closer to reality this week when the city’s Planning Committee gave its approval to let the full Common Council vote on the sale of 2.601 acres of IURA land to Emmy’s for $242,000. The land is towards the south end of Cherry Street, it’ll be the terminus of the extended Cherry Street, which will be lengthened 400 feet and create two new one-acre lots to sell to business that contribute to the IURA’s goals of job creation for LMI individuals. Examples include drilling tech firm Vector Magnetics, lab electronics manufacturer Precision Filters and the Crossfit Pallas gym. A fourth lot on the west side of the newly extended road would be deeded to the city as a natural buffer between development and the waterfront/Black Diamond Trail.

The initial phase of the $1.25 million development includes 4,000 SF of office/breakroom/entrance area, a 4,500 SF production area, and a 5,500 SF warehouse (14,000 SF total). If growth continues as it has, the plan is to implement a second phase in 2-3 years for a 20,000 SF expansion. The new facility will create at least five new jobs (total staff 24), and the potential expansion would likely add at least another twenty given that phase two called for the parking lot to grow from 22 to 41 spaces.

The rendering of the new HQ above, which is a STREAM Collaborative design, shows both phases. The section in the foreground is phase one, the shed roof structure at back is phase two. The section of parking lot towards the left is a phase two addition as well. No zoning variances are required. Whitham Planning and Design is leading the project through the city review process.

3. Let’s linger on Whitham for a moment. From their website is likely one of the runner-up proposals for the North Campus Residential Expansion over at Cornell. They were partnered with Ann Beha Architects and Baltimore-based Design Collective for a competing design that was ultimately not selected. Cornell interviewed four development teams before going with their final choice, Integreated Acquisition and Development, a firm associated with John Novarr and Phil Proujansky who did the Breazzano in Collegetown. Although owned and operated by Cornell, there is a developer’s fee IAD will earn for developing the NRCE project on behalf of Cornell. That fee varies per project and is usually confidential, but 3-6% is common in commercial builds, and by that yardstick, for a $175 million project IAD stands to make several million dollars.

With nothing more than a site plan, I’d be willing to guess that given the team members, the plan would have been a contemporary design, though perhaps more conservative than ikon.5 – Ann Beha designed the elegant if subdued first phase of the Cornell Law School addition.

4. The Hotel Ithaca is moving forward with the next phase of plans for its South Cayuga Street property. The next project is to tear down the vacated south wing, a 2-story structure built in the 1970s, and replace it with a surface parking lot. At a glance, this is not at all a welcome proposal for a downtown street corner. However, it comes with some promise of a hotel addition down the line. A development pad will be created for a “future market-driven addition”, meaning that if business grows and they decide to expand the hotel, they’ll have a level, stable, shovel-ready site. Until then, it’s seventeen fewer parking spaces the hotel will need in the Cayuga Street parking garage. The $550,000 project would be carried out from August to November, and NH Architecture is handling the landscaping, refinishing of the tower wall and overall application on behalf of owner Hart Hotels.

5. Visum’s not wasting any time on its affordable housing proposal for 327 West Seneca Street. The three-story, 12-unit building is planned for an October start and an April 2019 finish, and will be going before the planning board this month Declaration of Lead Agency and review of Parts 2 and 3 of the Environmental Assessment Form.

The project is an interesting little case study of how maximum height isn’t necessarily optimal. The zoning allows four floors; they want to serve 70-80% area median income, which requires 18 bedrooms for economic feasibility at this site. But to have four floors, the materials need to be fire-rated, and the units would need either emergency exit stairs, or an elevator. Since it’s a small building lot, an elevator would eat into the square footage of units, about a bedroom per floor, so there’s no net gain in rentable space with a fourth floor, but there would be an increased project cost. One could save costs by putting in the stairs vs. the elevator, but the fourth floor units would be harder to fill because they would pose greater access difficulties – ask around and see how many people want to walk up four flights everyday. This is actually one of the major reasons why the Village Solars in Lansing are also three floors, the expense of elevators would have driven their budget higher than the mid-market segment Lifestyle Properties wanted to serve.

Net-zero energy use is being explored (electric heat pumps powered by off-site renewables), and yard and setback variances are being sought after the city seemed receptive to a variant sketch plan with a few more square feet in the units for the sake of livability. STREAM penned a traditional design fitting with the block, and the revisions added a few more windows into the sides of the structure.

Also in the projects memo for this month are final approval for Benderson’s 3,200 SF addition at 744 South Meadow Street and the Declaration of Lead Agency for Cornell’s new north campus dorms. The Benderson project’s landscaping plan was modified slightly, and a new rear exit door and front awning are being considered.

6. Out in the towns there’s not much going on next week. A special meeting of the Town of Ithaca’s Planning Board will decide whether or not to defer to the city as lead agency in the environmental review of Cornell’s north campus expansion. The town of Lansing will be holding public hearings for a one-lot subdivision and a four-lot subdivision for single-family homes.

7. The Lansing Village Cottages plan has its work cut out for it. The design has been tweaked such that the first two home clusters were combined, and the road connecting to Craft Road was realigned. The Millcroft Way connection will have a vegetative buffer and the road would be for emergency vehicle only. However, Millcroft Way residents are still seething – they have $500,000-$700,000, 2,500 SF+ homes locked under a covenant, while the same person who sold their lots is now selling to a developer planning 800-1200 SF cottages. Concerns include traffic, home values, density, and too many senior housing developments, which is a bit of an odd one. Logan’s Run isn’t just a street in Dryden.

The village is pretty hesitant to support this – the Board of Trustees sent the proposal back over to the Planning Board, hoping that they could make some recommendation as to whether it meets the goals of the village. On the one hand, that would seem an easy yes at a glance, it’s senior housing close to urban areas in an affordable price range. However, after shelling out close to $50,000 for lawyers to fight Lisa Bonniwell over her lawsuit to stop the East Pointe Apartments, money that won’t be paid back (perhaps indirectly in property taxes in a few years), the village is afraid of another Article 78 lawsuit, and the residents of Millcroft are very deep-pocketed and willing to go to court. This is vaguely reminiscent of a study that shows wealthier areas are much more adept at stopping density and new housing in general because they have more leverage – one of those being that a fear of costly litigation is a strong municipal deterrent.

8. We’ll end on a positive note – after eight years of back and forth, it appears site prep has begun on the 20 senior housing units planned as part of the Lansing Meadows project. Since developer Eric Goetzmann had until July 31st or else face significant legal action (Goetzmann applied for and received a tax abatement for the BJ’s that was contingent on the housing, and it was at risk of being clawed back), I had dropped by August 3rd. After looking around, it did not seem to be under construction; a bit of upturned dirt and a bulldozer on site. The village decided it was, if barely, according to the Lansing Star:

Yes, he scratched the earth. Yes, he does have the soil fencing in,” {Village Code Enforcement Officer Adam} Robbs said. “He has hired a dedicated contractor at this time to do the site work. He has a culvert permit and approval to install a temporary culvert for construction use. I do have a preliminary set of plans. I am hesitant to say he has begun a significant amount of work… but he has begun work.”

>We’ll see if it merits an update in October.


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News Tidbits 9/16/17: The Big Surprise

16 09 2017

1. Ostensibly, the biggest newsmaker of the past week was the announcement of the Green Street redevelopment in Ithaca’s downtown core. To be frank, I was freaking out at my desk. Even more astounding was that the city slipped it out so casually, embedding it in a monthly PEDC meeting file that typically focuses on more mundane legal and planning concerns.

All photos that follow are from Jolene – pardon the marginal quality, we were both in note-taking mode, and these presentation papers weren’t given out to the public. North is towards the top of the floor plan images.

While the documents have yet to be uploaded to the city’s website, some basic details were released during the meeting – the number of parking spaces for the whole complex is 525. There would be two towers with residential units, a U-shaped west tower and a boxy east tower with projecting corners. 15 floors apiece. 350 units, “designed to appeal to a broad demographic”. Abatement likely, with the details to be ironed out as the percentage of affordable units is determined. The middle portion will also have residential units on top of the existing garage. 30,000 SF of conference space is planned under the eastern tower, if my notes are right.

The first floor appears to have at least two retail spaces, a lobby area, and an office, probably for management of the complex. The middle section will retain access to Cinemapolis and the garage. On levels two and three would be rebuilt garage sections (note the center section was rebuilt ten years ago and unlike the ends, is in good shape). Another floor of parking will be added.

Cooper Carry is the architect, and the initial design looks fairly safe, attractive if not particularly inspired. After the Marriott, it’s good to be wary of potential value engineering. It appears to use brick veneer, Nichiha-like metal panels and maybe fiber cement. Also, with Harold’s Square and City Centre off to the left, this would arguably create a broad-shouldered if stubby skyline for downtown Ithaca, more impressive than many communities Ithaca’s size.

My notes are that Marriott co-developer Jeff Rimland had non-public information about the Green Street garage because he owns the ground facilities under the garage’s eastern deck, and would be impacted by renovations. He was made aware of city looking at their options and put something together. The city only learned about the plan four weeks ago, and mayor Myrick wanted to make sure it was brought forward for public discussion and to determine if it was a wise choice to move froward. Ostensibly, if this came out as a surprise, a hornet’s nest of opposition would be stinging. Being transparent now helps later.

It seems the intent is an RFP for the garage for the sake of fairness, but I dunno how effective that will be. Rimland has a big advantage as owner of a portion of the parcel, since any other developer would need to arrange legal agreements with him in order to carry out a project. It was suggested by Brock, who has never been a fan of development, and I cynically wonder if this was an attempt to ensnare or at least stall the proposal. An RFP does put the city in a more legally comfortable position, perhaps. On the flip side, I cringe at the thought of another Old Library-like mess.

On a final note, there’s also a name, seen in the lower right of the rendering – “Village on the Green”. Very punny guys.


2. The other big news item of the week was 311 College Avenue, more commonly referred to as “The Nines replacement”. The Nines is a much-loved restaurant and bar that has long been a part of Collegetown’s drinking and musical scene – in the late 2000s, if I had to describe Collegetown bars, where Johnny O’s was the “fratty frat” bar and Chapter House the erudite tweed-clothed crowd, The Nines was the laidback, indie band geek-turned-rocker. Add in its location in a ca. 1908 fire station, and one of the few sizable outdoor patios in Collegetown, and one can understand that a project on this site was never going to be warmly received.

Granted, I’ve been raked over the coals a couple of times for the article, whose first headline said The Nines was being kicked out. It was an honest copy-editing mistake. For breaking news I publish ASAP, like with the Green Street development. However, that’s discouraged because the business pieces are useful for filling slow periods during the day, or to give time for others to prep articles during the early morning. Many of my articles are written in the late evening, submitted to the schedule, and skimmed through before hitting the website. In this case, I submitted Sunday night, my editor Jolene read through it early Monday morning, she thought the opening lines implied an eviction and changed the title (the original was a generic “Apartments Proposed for The Nines”). Sometimes title get changed for clarity or Search Engine Optimization (SEO), but this particular time it created a false statement. I didn’t see it until I was at work on Monday, and uncomfortable conversations ensued. Sorry all. The next article won’t wax poetic.

Anyway, with that error noted, it makes this next opinion segment more uncomfortable. I’m not a developer. But if I were one, and heard the property was being put up for sale, I’d probably have steered clear. With all due respect to Todd Fox, my gut feeling is that the cons outweigh the pros.

Ithaca is not an easy city to do a project in. A developer has to pick and choose their battles. In this case, the battle is taking a building with some degree of historic value, but more importantly a lot of local sentiment attached, and proposing to replace it with, frankly, a mediocre design with high-end student units. I understand the economics of the site, the market, and the unfortunate though economically necessary impacts building flush to lot lines has on the ability to install windows on the sides. My concern is external impacts, by creating an emblem for opposition to organize around, because it wraps several perceptibly negative impacts into one proposal. That may make future projects that much more difficult. I worry that whenever a controversial plan is brought forth in years ahead, it will be pejoratively described by NIMBY types as “just like that Nines replacement”.

It has taken years for Ithacans to become slowly more amenable to density and development. Proposals that inadequately address community concerns threaten that progress. Consider the case of Jason Fane. He toyed with the city plenty of times. Eventually it caught up to him and he got burned. The sad part is, 130 East Clinton was a solid project, and to this day I believe that had it been another developer, those apartments would have been built.

Anyway, the ILPC would like to preserve it as-is, which draws the question why the discussion never moved forward 18 months ago when they had the chance. I don’t think that’s likely at this stage, and an overbuild probably wouldn’t work due to development costs (foundation shoring, elevator if 4+ floors) with respect to developable area – the big front yard setback is an impediment to that. I heard that an offer was floated to Neil Golder to move his house at one point during the 201 debate, so maybe moving all or at least the front (1908 wing) of the old station No. 9 is possible, but the expense would be great. As for the new building’s design, maybe modest fixed windows in the north/south brick faces, or glass block features like on Sharma’s 307 design, or even something as minor as a mural on the CMU blocks would help.

But, all that might be grasping at straws. This was always going to be controversial. I won’t fault someone for seeing an opportunity, even if it’s not a plan I’d advocate. It all depends on one’s appetite for development opportunities, and sensitivity to potential blowback.

3. For sale: 405 Elmira Road. 0.74 acres of parking lot next to Buttermilk Falls Plaza. List price: $465,000, courtesy of Pyrmaid Brokerage. Also noting – the chain hotelier who bought the former Tim Horton’s next door from the same seller for $640k in January 2016. Timmy Ho’s 0.75 acres is a little small for a hotel on its own, but combined with this lot, suddenly plans start to look quite viable for a mid-sized chain in the city’s suburban-friendly SW-2 zoning. Someone else may come along and buy it, but let’s see what happens.

4. It appears the 24-unit Pineridge Cottages project is off the table. The project, planned for the corner of Mineah and Dryden Roads in Dryden town, was greatly scaled back by developer Ryzward Wawak after water tests led to concerns about having enough to supply all the units. At this time, the plan is for four cottages, each a two-bedroom unit.

5. The Times’ Matt Butler has a nice summary and brief interview with Lakeview Health CEO Harry Merriman regarding the 60-unit affordable housing plan for 709-713 West Court Street. Some of the obstacles the project faced wouldn’t be a surprise to readers of this blog – the soils require a more expensive deep (pile) foundation, and land acquisition costs are climbing, which increases the overall costs involved with bringing a proposal into reality, let alone a plan that focuses on affordable housing. The increase in units from 50 to 60 was driven by the need to balance out revenue with expenditures and make the affordable housing economically feasible. Incremental cost increases per unit are significantly less than overall structural costs, so the per-unit expense for 60 units is less than 50, making the project more appealing in competitive grant processes.

Of the 22 units to be set aside for formerly homeless individuals, six will be reserved for HIV-positive clients of STAP, the Southern Tier Aids Programs. Those infected with HIV tends to experience much higher homelessness rates than the general population, with at least 81 homeless HIV-positive individuals in Tompkins County alone. This makes it hard to do things like refrigerate medication. These six units are a small number perhaps, but for those six folks it will make a huge difference.

6. Another feather in the cap of the local STEM sector of the economy. Biotech startup Jan Biotech Inc., based out of the Cornell Business Park by the airport, has received a $3 million grant from the National Institute of Health (NIH) that will be used in the research and production of an HIV diagnostic for detection and quantification of latent HIV-infected reservoirs in patients –  cells that have the virus but aren’t actively producing HIV, which current anti-retroviral therapies struggle with. Potentially, the diagnostic could help test new medicines for their ability to target those cells, and lead to a true cure for the virus before AIDS can occur.

Along with new equipment and renovated facilities, the grant is expect to result in the hiring of another 5 to 10 scientists and engineers for the four-person firm. Which is great, but truly, it’s their work to try and improve our treatment and medicine of a deadly virus that’s more important. The very best of luck to them.

7.  A bit of news from the Cornell Daily Sun regarding the additional 2,000 beds Cornell would like to build on its North Campus, as part of its freshman expansion and “Sophmore Village” plan. The university would like to begin construction on the first dorms in 2018, and start increasing student enrollment by 2020. For that to happen, the plans pretty much need to come forward for formal planning board review within the next few months. Presumably, they’d like to have the dorms ready by August 2019 – these will be used as flex space initially, so that existing dorms like Balch and Clara Dickson can start renovation. At a bare minimum, it takes three months to go through the city planning board. Given this project’s proximity to Cayuga Heights, the local patricians will want to have their say as well, even if it is just outside village lines. With the size of the project and a minor amount of inter-municipal complexity, four months from sketch plan to approval seems realistic. Considering the need to request and award contract bids, it would seem plausible that Cornell puts the dorms forward this fall for review, with approval expected by late winter. Bids would be requested and awarded during the Spring, and construction would start by June. Whatever the case, the first construction plans are likely not far off.


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