News Tidbits 12/2/17: The Changing Calculus

3 12 2017

1. Perhaps the big news of the week is that Visum Development Group’s project for 311 College Avenue (the Nines restaurant and Bar) was revived after negotiations with the seller moved in a favorable direction. This time around, it appears that Visum is bringing something close to an “A” game proposal; Jagat Sharma is still the architect of record, but Visum’s VP for New Market Development, Patrick Braga, had a heavy hand in the design work and historical research. The designs produced are more historically inspired and embrace some of the elements that make the old fire station attractive to the public – the first floor doors will pull up like garage bays or slide open to create a sort of open-air loggia on warm days, and a cornice element is retained. Floor to roof will be about 66 feet according to the Times’ Matt Butler, and still contain about 50 1-bedroom and studio apartments as well as 750 SF of retail. For the record, he and I did a bit of collaboration on describing the architectural features before we ran our respective stories.

The sketch plan had a kinder reception from the Planning Board this time around, if still cautious. Even though John Schroeder made it clear he would never accept any plan for The Nines, he said something to the effect of, if this design were proposed for any other MU-2 in Collegetown, he would have no problems with it whatsoever. The rest of the board did a quick poll to see if the other members would at least entertain a proposal, and no one else said no, so the project is considered active.

Now, things can get a little awkward from here. The city planning director, JoAnn Cornish, made it clear that they could move forward with design if they want, but there’s a risk that the property may get landmarked before they get approval. Speaking with the city historic preservation director Bryan McCracken the day after the article, he said that a decision on whether or not to move forward with the landmarking process would be on the agenda for the ILPC’s December meeting. If they move forward, it still has to go to Common Council. I had previously heard through the grapevine that the council was favorable to landmarking in the case of the Nines, but that was before Visum brought forward a new plan. The truth is, things are fairly unpredictable at the moment, and it’s a matter of waiting and watching how different stakeholders act and react.

2. I like Matt Butler, he has time to do the stories that I can’t. This time, a look into the plans for a centralized government facility at the site of the Central Fire Station on the 300 Block of West Green Street. That study is still active, under the guidance of Kingsbury Architecture and TWMLA, as is the second study for a combined Public Works facility. The appraisal process and estimates of cost are also still underway.

It’s kinda a given that this would have tremendous impacts, as noted in the Voice. A lucrative Collegetown site and other redevelopment sites would be on the market, and hundreds of workers and daily visitors would extend Ithaca’s core down State Street, which the city wants, considering it to be one of the few directions downtown can expand towards without compromising too much of Ithaca’s existing urban fabric. The ILPC would need to sign off on plans due to the fire station’s proximity to the “Downtown West” historic district (it actually contains the IFD’s parking lot for the sake of contiguous parcels), so “super-edgy hypermodern” probably isn’t on the table design-wise. The city also has to make a decision relatively soon – the current city hall (former NYSEG HQ, built 1939) and “Hall of Justice” (1920s, renovated/expanded 1964-66) are in need of major renovations.

3. Also on the visionary end of discussion are future plans (2020 onward) for Collegetown’s transit network. Here, it is often a delicate case of balance; it’s a dense, lucrative secondary core of the city, but parking and traffic are problems, as is the lack of infrastructure for pedestrians and bicyclists. One option being explored is a new bike lane up College Avenue that would eliminate 35 parking spaces (and was not well received), and the other is a more modest plan that largely keeps College Avenue as is, which many didn’t like either.

Perhaps the most interesting note from the article is that the city is examining the feasibility of expanding the Dryden Road garage by adding additional floors to the 1980s structure. The Dryden Road garage has the highest parking rates and a high occupancy, and is the most lucrative of the city’s four garages. The city is also looking at incentives for on-site parking, which to be honest, probably isn’t going to work in Collegetown for a number of planning and financial reasons (i.e. a developer will make a lot more from a rentable unit per SF, than from a parking space per SF).

4. Nothing much of note from the town of Ithaca Planning Board agenda. The owners of a former convenience store at 614 Elmira Road are seeking to perform minor renovations to the building for a bottle and can return (to be called IthaCAN & Bottle Return), and Maplewood is asking the town planning board permission to work on Saturdays in a mad dash to have the 872-bed complex ready for occupancy before August. Normally, renovations don’t need to visit the board, but the zoning for the Elmira Road requires a visit for each change of occupancy/use.

The city of Ithaca’s Planning Board memo is short as well, just the long-brewing plans for a garage-replacing addition to 115 The Knoll in Cornell Heights. The 1950s garage will be replaced with a 4-bed, 2-bath addition for Chesterton House, an all-male Christian interest group Sophia House, an all-female Christian group.  It appears the design has changed very little if at all since the plan first became public in May. The $349,900 addition, designed by STREAM Collaborative, would be built in the Spring and Summer of 2018 for an August opening. (Correction: Chesterton House is next door and owned by the same group. The project is for Sophia House. Thanks to Lyn for catching that.)

5. Local developers Steve Flash and Anne Chernish (d/b/a Rampart Real LLC) will be taking on a partner in the 323 Taughannock project. The couple sold a $203,000 stake in the 8-townhouse plan to Arnot Realty of Elmira (d/b/a 323T LLC) on the 22nd. For Flash and Chernish, it gives them a much bigger partner with experience and connections to contractors; for Arnot, it gives them a toehold in the buregoning Ithaca market, their first step into the city. The deed explicitly states this is a joint venture.

6. So this is interesting. On Friday 12/1, an LLC purchased an industrial/office building at 37-40 Elm Street in Dryden for $260,000. The property was built in the late 1980s and is about 25,000 SF, with a warehouse, manufacturing space, office space and three apartments.

The buyer was an LLC, but the LLC filing address traces back to 312 Fourth Street in Ithaca, a 13,800 SF complex of buildings and warehouses home to the All Stone & Tile Company, Ithaca Ice and Strawbridge & Jahn Construction. So either someone is growing out of space and the others are staying, or they are all moving. If they are all moving, that could be an opportunity. Zoning is B-4,  which allows a very wide variety of business and residential uses. Zoning is 4 floors/40 feet maximum height, 50% lot coverage, but being on the tip of the Waterfront/West End corridor, my suspicion is that the city could be a bit flexible with zoning variances for density and/or affordable housing. The only places one finds B-4 zones are the fringes of downtown, so it’s not well-suited for big projects, but there’s room to explore options. Of course, the electrical substation next door isn’t ideal, and the property isn’t even up for sale, but this is worth keeping an eye on.

7. So, there’s no real avoiding it this week – the tax bill in Congress. It really hurts Tompkins County. I did my one and only tweetstorm to cover some of the issues, and most of it still holds. Two last-minute changes softened the blow between then and now. One was the inclusion of the Collins amendment to reinstate a $10,000 cap on SALT (State and Local property tax) deductions, since the original Senate bill had no deduction. The other was raising the endowment from colleges with an endowment of $250,000/student, to those with $500,000/student. Cornell’s is about $310,000/student (6.8 billion/22,300 students). For the record, it wasn’t done to protect Cornell, it was done to protect conservative Hillsdale College after an amendment to give it an exclusive exemption failed. At least 30 schools were still hit, and this detail has to reconciled with the House Bill’s $250,000/student figure.

So apart from the SALT and college impacts I had already noted, one thing that got missed was that the bills allow prohibit schools from taxing out tax-exempt bonds to fund construction. For Cornell’s plan to add 2,000 beds, this is a problem.

So let’s just overview this real quick – a bond is a fixed-income investment in which an investor loans money to an entity, which borrows at a fixed or variable interest rate for a fixed period of time. When you buy a bond, you hold the debt for that entity. Most investors typically have some proportion of bonds in their portfolio – they typically are more stable investments than stocks, though the returns are typically less. Their relative safety is why financial planners recommend a higher proportion of bonds as one gets closer to retirement. The riskiness of a debtor not paying back is given by their bond rating. Cornell’s long-term debt rating is AA, which is very good, high-quality investment grade.

Now, in the case of non-profit schools, typically the tax-exempt bonds are issued with the approval of local and state authorities. The project to be financed by the bonds is determined by the school. The school does its internal approval of the project and bond plan, and the project it goes up to the community for planning board/environmental review. Once approved, the school chooses an approved issuer of bonds, often a state or local development authority (ex. The Dormitory Authority of NYS). A working group is put together to establish a timetable and structure for the bonds, and once the bond structure is settled and reviewed for issues, a public hearing is held on the bond issue, so that any issues or concerns are made clear before issuance. Barring no problems, the government signs off on the tax-exemption for the bond issue, a closing date is established and the bonds are marketed and sold, mostly to banks and big investment firms. The received funds are disbursed to pay for the project.

That’s getting taken away by this tax bill. That means any future bonds will be taxable, and have a much higher interest rate. Borrowing just became more expensive. A 30-year AA tax-exempt bond might be 2.76%, and a taxable bond 3.37%. That might seem a small difference, but a 2,000 bed project is on the order of $200 million (recall Maplewood is 872 beds and $80 million). So we’re talking millions of dollars more that Cornell will now have to pay to make those dorms happen. It opens up a distinct possibility that the project could be scaled back and/or delayed, which impacts the overall housing market. Probably the federal SALT tax cap is going to hurt much more.

Really, this bill was practically designed to decimate real and perceived enemies of politically conservative groups as much as it was designed to help billionaire donors and corporations. Poorly conceived, ignoring multiple non-partisan analyses and relying on overly optimistic projections, hastily put together and shoved through, blowing the debt trillions higher and immediately or eventually raising taxes on tens of millions. This is every cartoonish stereotype of Republicans amplified in one piece of legislation.

I don’t like to get political, but I’m a registered Republican, and have been my whole life. As a pragmatic never-Trump moderate, I joke that I’m a New York Republican and a Texas Democrat. When one writes about government red tape, the Cargill Mine, and Ithaca’s progressives attacking affordable housing, it tends to reaffirm beliefs.

But hell, this tax bill is throwing every principle out the window with this bill, causes a ton of damage to a place I care about, and with a morally deficient and unstable president at the helm, I can’t do it anymore. I mailed off the form today to become an independent. After this, I just can’t see myself voting Republican again, not for a long time.

 





News Tidbits 11/25/17: Not Going to Plan

27 11 2017

1. It looks like the Lambrous have started work on the new duplex they’ve long planned at 123 Eddy Street in Collegetown. Foundation work is underway for the two-unit, six-bedroom home, which utilized Superior Foundation Walls and modular units. The building sits on the edge of the East Hill Historic District, so to make the building compliant with the ILPC’s wishes, it features Hardie Board siding, simulated shakes, scuplted brackets and an attic vent, and detailed railings and porches. The design went through a couple iterations, with the first being historically appropriate but expensive stick-built design, and the second a modular scheme that was non-compliant with the ILPC. The Lambrous plan to have the new three-bedroom units available for rent by August.

2. Lansing’s Milton Meadows affordable housing project is up for final approval next Monday, and it looks like the first 72-unit phase will be the only phase. According to documentation filed with the town, the presence of poorer soils and more wetlands than anticipated means that Cornerstone will not be undertaking a second phase. It does raise further questions regarding adjacent parcels and the amount of money the town of Lansing can reasonable gain since this sounds like a recent discovery. The final site plans here show no indication of Cornerstone Development Group buying the remaining 8.9 acres that were intended for phase two.

There are no huge obstacles to prevent approval, although some town officials are unhappy that they didn’t apply a stronger hand to the town center development plan (i.e. laying the roads and infrastructure as they wanted, and charging a higher price for the parcels). While most of the darts have been levied towards Cornerstone (some perhaps unfairly due to it being affordable housing), the town planning chair has also targeted Tiny Timbers for using Conlon Road as its primary ingress/egress in their sketch plan. But with sales already negotiated and approved, the town’s legal options are limited, and since they already dropped the ball on the town center once, the optics aren’t pretty. Any work Cornerstone does is dependent on state and federal grants that are highly competitive and awarded only a few times per year, so don’t expect much for at least a year or two after approval.

3. It looks like the land for the proposed extension of South Meadow Square has been fenced off. A query to the folks in PetSmart next door didn’t turn up much, although they said there had been some water and sewer work to prep for the new 7,315 SF addition approved earlier this year. I did not see what the current conditions are for the approved 14,744 SF addition on the south end.

4. The county and the city have competing views of the NYS DOT’s future in Tompkins County. The county has reiterated its hope that the DOT relocates to a location next to the county airport. The city would prefer a location in Southwest Park behind Wal-Mart and the proposed Maguire dealership campus. The request for state grant dollars depends on the airport proposal, and the DOT has stated preference for a site near the airport.

However, if grants are not awarded, the airport is still considering a plan to build a $1-2 million customs facility that would allow to become an international airport, servicing passenger jets from Canadian hubs (Toronto, Montreal). In the short-term, work is underway to add service to Chicago, which has an on-time percentage comparable to Detroit (80%), and better than Newark (60%) and Philadelphia (70%). Cornell is actively assisting, trying to persuade airlines as part of its “Global Cornell” initiative.

5. So here’s the city of Ithaca’s parks master plan. There’s a few interesting things of note in terms of acquisitions and de-classifications (sale).

First, a quick note – the city is legally required to replace any park land it sells off with newly acquired park land. So with that in mind, the city looked at its parks and found five that are “vastly underutilized” – Columbia Street Park (0.25 acres), Dryden Road Park (0.08 acres), Hillview Park (0.74 acres), Maple Grove Park (0.47 acres), and Strawberry Fields (9.16 acres).

The city would like to sell off the first four on that list, and replace them with a new acquisition somewhere in the city that has at least 1.54 acres, but the city is looking for up to 12 acres. Proximity to population centers, arterial roads, pedestrian access and minimal site prep are some of the big deciding factors in that acquisition process. Meanwhile, Strawberry Fields would be held for either designation as a “school park” to be managed in conjunction with the ICSD, or as a “teaching preserve” for practice field research and instruction.

If the city did opt to sell those four parks, well, there’s some development potential, though they wouldn’t be prime. Maple Grove is a Belle Sherman cul-de-sac surrounded by single-family homes. Dryden Road Park is a small triangle next to the parking garage, and while technically an MU-2 zone for six floors, it’s just as likely Cornell would pick it up amd add it to its tax-exempt rolls since it’s next to Cascadilla Hall. Hillview and Columbia Street on South Hill (R-2a zone) could potentially become a few home lots or a small apartment complex, but the land’s sale would be a political challenge.The city procedure would be an advertised sale offering through the IURA, followed by a grading system of applicants that meet the city’s specified price, as they did with foreclosed lots that became the Ithaka Terraces and 203 Third Street.

Not too keen to get in the weeds on this, since this would be controversial with neighborhood groups, but it’s really just a thought exercise at this point – any potential land sale would be on a long-term, 5 year+ time scale, and the city would need to have new land ready to be acquired for recreational uses. Even thatcould cause problems when neighbors complain that an untouched property becomes a public park that attracts people (this has been an issue with proposed extensions of the South Hill Rec Trail). There is plenty of time to debate the merits and drawbacks of long-term property assets. Right now, the focus is repair and renovating existing facilities in city parks.

6. Looking at the city’s planning board agenda for next week, it’s a short one. The duplex at 601 South Aurora and the Brindley Street Bridge are up for final approval, and a pair of new sketch plans will be reviewed – one is likely to be small, and the other a revision, potentially a downsizing. I’ve heard through the grapevine that several rental developers are holding off or even cancelling plans because they’re concerned about the impacts of Cornell’s 2,000 new beds for their North Campus – although right now there’s nothing formal apart from a statement of intent. Ideally, Cornell puts some concept forth soon, with plans not long thereafter; otherwise, there’s the risk that the local housing situation gets worse. Perhaps the reasonable worst case scenario is that, with recent federal attacks on higher education, Cornell is forced to trim its budget and cancels the housing plans, while still adding students to compensate for financial losses – basically, a sudden large growth in demand without growth in supply.

First, 209 Hudson. This was previously mentioned in a Voice article, it’s potentially a small-scale infill project by frequent infill developer Stavros Stavropoulos. The early plan for two of three rental buildings was shelved due to the South Hill overlay, and its possible that, given the relatively large lot, Stavropoulos may be planning a subdivision to build an additional two-family rental unit. Dunno if he can legally pull off more than that, however. R-2a with overlay allows a 1-2 family structure as a primary, with an accessory apartment in a secondary structure.

The second is 119-123 College Avenue. This is unusual in that this was the site for John Novarr’s College Townhouses project, a 67-unit, multi-building plan for rentals geared towards visiting Cornell faculty and staff. However, the recent NYSEG power line issue has proven problematic, and the last I checked, the project team was supposed to go before a state building codes board in Syracuse this month to get a variance to allow construction, on the basis that the power lines will soon be buried. The minutes are not online, so it’s not clear what the ruling was. While CR-4 zoning allows 45 feet as the plan is currently designed, a variance denial by the state would limit structural height to 30 feet, and would substantially impact the project’s feasibility in pricey Collegetown, as well as alter the design. For the record, 119-123 does not imply a smaller project; 123 College Avenue never existed, the three homes removed for this project were 119, 121 and 125. We’ll see what the revised plans look like next week.

1. Agenda Review 6:00
2. Privilege of the floor (3-minute maximum per person) 6:05
3. Site Plan Review

A. Project: Duplex 6:15
Location: 601 S Aurora Street
Applicant: David Putnam
Actions: Public Hearing, Consideration of Preliminary and Final Site Plan Approval
Project Description:
The applicant is proposing to construct a duplex on the .186 acre (8,114 SF) vacant lot. Site development includes parking for two cars, walkways, landscaping, a continuous sidewalk along the property frontage, drainage improvements and a trash enclosure. The applicant has designed curbing and on-street parking on Hillview Place in cooperation with the City Engineering Division. The project is in the R-2a Zoning district. This is a Type II Action under the City of Ithaca Environmental Quality Review Ordinance (“CEQRO”) §176-5. (C.)(8) and the State Environmental Quality Review Act (“SEQRA”) § 617.5 (c)(9) and is not subject to environmental review.

B. Project: Brindley Street Bridge Rebuild and Relocation 6:35
Location: Intersection of W State Street and Taughannock Blvd
Applicant: Addisu Gebre for the City of Ithaca
Actions: Consideration of Preliminary & Final Approval
Project Description:
The project will relocate current Brindley Street Bridge to align with W. State St./Taughannock
Blvd. intersection through the construction of a new single span extending Taughannock Blvd. over
the Cayuga Inlet to Taber Street. The project will retain existing Brindley Street Bridge and south approach road for pedestrian and bike use. This is a Type I Action under the City of Ithaca Environmental Quality Review Ordinance (“CEQRO”) §176-4 B.(1)(k) and the State Environmental Quality Review Act (“SEQRA”) § 617.4 (b)(11) for which the Board of Public Works, acting as Lead Agency made a Negative Determination of Environmental Significance in 2016.

C. 209 Hudson Street – Subdivision & Site Plan Review – Sketch Plan 7:05

D. 119-123 College Avenue – Sketch Plan 7:35

4. Old/New Business 8:00
A. Collegetown Design Guidelines – Megan Wilson
B. Parks Master Plan – Megan Wilson

5. Reports 8:40
A. Planning Board Chair (verbal)
B. Director of Planning & Development (verbal)
C. Board of Public Works Liaison (verbal)





News Tidbits 11/11/17: It’s Back

12 11 2017

1. One of the reasons for the lull in weekly round-ups has been the lack of smaller news items to fill it with. A few larger items made it into Voice articles, but there wasn’t much of a middle ground between “expand into article” and “not newsworthy”. I’m happy to take comments here about Voice articles, although the blog is intended to cover topics that may not be ready for a full write-up.

As noted in the Voice, there isn’t much before the city of Ithaca at the moment. A sketch plan for infill rental housing at 209 Hudson Street is likely dead in the water as a result of the new South Hill Overlay, and a modest infill plan calls for a duplex at 601 South Aurora on the corner with Hillview Place, which can only be an improvement from the informal parking lot currently there. The modular unit design is thoughtful (varied materials, plenty of windows) if unexciting, and the sidewalks are a plus. The units are physically structured as townhouses, but technically they aren’t, since townhouses are defined by International Building Code as strings of units of three or more.

Meanwhile, things are so slow in the town at the moment that they cancelled their last Planning Board meeting. Before that, the only notable item on the agenda was the Cayuga Ridge renovation, which is primarily internal. Their October Building and Codes Department report indicates a single two-family home was approved, in the Cleveland Estates housing subdivision; virtually all of those duplexes have been intended as student housing.

2. If there is one town that is rather busy next week, it would have to be Lansing. The surface facilities for the new Cargill mine shaft are up for final approval at the Planning Board meeting next Tuesday, more discussion is expected about the Milton Meadows affordable housing plan at the town center, and a couple of minor projects (communications tower, illuminated free-standing sign) are up for review and vote. Neither Cargill not Milton Meadows appear to have changed significantly since their last presentations.

Also scheduled is review of public comments regarding the Comprehensive Plan, which cover several topics, with the most frequent being the Bell Station zoning (park vs. lakeshore low density) and some individuals unhappy with the potential for mixed-use or residential development near their homes or farms. Joe Wetmore has a pretty thorough critique, ranging from unrealistic expectations to discomfort with what he calls “segregated housing” based on income and age. Going political for a moment, I suspect if it weren’t for many progressive town and village boards rushing to join the Article 78 on Cargill, with less than careful thought and discussion of Cargill’s blue-collar workers and their family/friends, Wetmore would be an incoming town councilman (and to be fair, he may end up winning when the absentee ballots are counted and tallied next week).

3. Over in Dryden, just about everything is good to go with Modern Living Rentals’ 42-unit rental complex planned for 802 Dryden Road, next to the Cornell arboretum. The November tweaks were for lighting, landscaping and sidewalk details. The designs of the townhouse strings were reworked in October to include three different designs, to be used twice each (six buildings, seven units each, 42 units/108 bedrooms total). While the materials remain the same, the designs differ substantially in roof lines, architectural detailing and fenestration pattern. At this point, no one would mistake for a recycling of 902 Dryden as they started off as; John Snyder and his team have had the chance to express themselves, and the designs are contemporary and visually interesting. It looks like final approval will be coming potentially soon, which will permit a Spring 2018 – Summer 2019 construction time-frame.

Other than that, the town is reviewing another Tiny Timbers subdivision, this one for 1540 Ellis Hollow Drive. Similar to its counterpart just down the street at 1624 Ellis Hollow Drive, the long, narrow lot would be serviced with an internal driveway for five homes with a little over an acre each, and the rear (northern) 5 acres would be granted a conservation easement, to remain natural space and help protect the Fall Creek watershed. The original plan was a deed restriction, but the town’s conservation board is pushing the easement so that future owners of the land can’t just lift the restriction. They also requested an S-shaped driveway because they feel the slope is greater than Dolph states; an S-shape would also throw the plans out of whack, so let’s see what happens.

On a final brief note, review and discussion is ongoing for a pair of solar arrays off of 2243 Dryden Road, one of 1.3 MW and one of 2 MW.

4. Looking at what’s on the market this week, here’s something for the deep-pocketed investor/landlord who wants to start with an all-new, low-maintenance building. 6-unit 707 East Seneca Street is on the market for $2,999,000. The 6,469 SF apartment building was built just two years ago, after developer Todd Fox bought city surplus land that was once a playground for the closed East Hill Elementary, deeded to the city in 1982 and promptly forgotten for decades until potential liability risks convinced the city to put it up for sale. Each unit is three bedrooms, and according to the advertisement, it generates over $220k in revenue each year, which is not shabby.The property is assessed at $1 million.

It’s a bit surprising that Fox would want to part with a nearly-new building with solid rental potential, and it makes me curious if the funds would be used to fund other Visum projects planned or approved. While Fox did take a financial hit from the cancelled 311 College Avenue project, the amount invested was far less than the sale price for 707 here.

5. Also worth noting, though it’s not good news – The Computing Center’s plans to build a new 4,600 SF headquarters appear to be over. The building site and the approved building plans at Lansing’s 987 Warren Road are up for sale. $499,000 gets you 1.57 acres, the plans, and a single-family home on the eastern end of the property that generates $2,000/month. The project had received an $85,084 tax abatement for the $1.394 million project, which was expected to create six new jobs. For the record, any buyer would need to re-apply for an abatement; the one granted will go unused. At least offhand, it looks like they may have added the jobs (retain 14, add 6, and the website shows nineteen plus the retired founder, and two job postings), but it’s uncertain – they acquired a competitor (Sherpa Technologies) in September, which increased staff to 22. Based off the time of the listing, with the acquisition of Sherpa they may have just led TCC to go a different direction with a new headquarters. What will be, will be.

6. According to construction loan documents filed with Tompkins County, the new 11,180 SF Rite Aid being built at 79 North Street carried with it a $2.71 million price tag. Chemung Canal Trust Company, an Elmira-based bank with branches in Tompkins County, is providing the loan to Dryden Group LLC/Ellicott Development. Ellicott, a major developer out in Buffalo, will be using an in-house contractor team to build out the retail space.

A couple of emails came in asking if this would be a Walgreen’s. On paper, that’s a no – everything filed and documented says Rite Aid, and this was confirmed with the town planning staff. However, Walgreen’s is in the process of acquiring 1,932 Rite Aid stores (leaving Rite Aid with 2,600), and closing several hundred stores that are within close proximity to existing Walgreen’s. It’s possible that the existing Dryden Rite Aid is one of those to be “shut down as part of the sale” as the new Rite Aid-turned-Walgreen’s is being built on the north end of the village. Keep an eye on it.

7. Quick little side note – Ithaca Associates LLC, the development team behind the $110 million Green Street Garage project, is apparently in talks with INHS to manage its affordable housing component. That’s according to Ithaca Urban Renewal Agency (IURA) meeting minutes. So they are serious about meeting the city’s demand for affordable housing with some undetermined percentage of the 365 units. Heck, 60 or 70 units would be a sizable contribution, should it pan out, and it would make the project more palatable since it would clearly have a mixed-income aspect to go with its mixed uses.

8. The Ithaca Landmarks Preservation Commission will be taking up discussion again on the Nines, though they are less than pleased with the recent 5-5 tie vote the Common Council had on the Chacona block, broken by the mayor’s vote against historic designation. For me, the fascinating part was having someone like Cynthia Brock, typically opposed to greater density, speak in favor, while pro-development councilors like Ducson Nguyen and Seph Murtagh voted in favor of historic designation. So, it was an unusual breakdown of votes that I would not have predicted, although I had heard before the meeting that it would likely be a close vote.

There is no doubt that anything Student Agencies submits will be scrutinized extra closely, especially if they try to maximize square footage or incorporate design features that don’t mesh with neighboring structures. It’s fair to say that while they lucked out with being allowed to redevelop, the resentment already stirred up means anything proposed will be starting behind the proverbial eight ball, and they would be wise to really put their best foot forward and not rush plans.

Interestingly, it looks like someone, likely but not confirmed to be the Reach Project social service group, plans to submit concept designs for the carriage house that once stood behind the house at 310 West State Street. This is a historic district, so any designs for the drug treatment and potential safe heroin injection “harm reduction” site would need to be approved by the ILPC.

It’s been amusing and a bit excruciating to see some of the comments on the Voice – some people are all about historic buildings; but it tortures them to see these venerable structures used for what they see as a less-enlightened cause than a high-end B&B or boutique office. If zoning laws (and higher authorities, in this case) okay it, so be it. Many historic buildings have humdrum or low-brow histories as factories, home businesses or tenements, and to say they can’t be used for something permitted just because it seems icky is not only illegal, it denies part of the historical element.

7. Intriguing, though I have questions – the city is looking at expanding the use of PUDs from beyond the few industrial zones to city-wide so long as properties are 2 acres. They’re also looking at expanding CIITAP to allow 1-story industrial and waterfront projects, as well as an affordable housing component of 20% on all residential or mixed-use projects with residential components of 10 units or more.

The PUD plan comes on the heels of the new Waterfront zones, which allow residential uses on a greater number of parcels, and is in fact the recommendation of the Waterfront Working Group (WWG), a 17-member group of staff and public who reviewed planned zoning changes to the Waterfront. The city planning staff are amenable, though they suggest a minimum acreage of 2 acres.

With the proposed CIITAP change, the reasoning makes sense, although its effectiveness is questionable. Industrial construction is locally limited and is usually build-to-suit for a specific client. There’s also a strong preference to less dense areas with easy access with lower land values, like Lansing or Dryden. More power to the city I guess, I just don’t see it being utilized. As for the housing component, the intent is good, but the issue always ends up being an issue of “moreness”. Developers often have to build bigger to re-balance expenses and revenue within mixed-income structures. This can make it tougher for them to get financing since it’s a larger, more costly build-out (a bigger financial risk, all other things being equal). Residents in turn balk at a bigger project with the traffic, aesthetic changes and other impacts it creates, not to mention some still instinctively sneer at affordable housing, mixed-income or not. It’s not an outright deal-breaker, but it is something to keep in mind.

The PUD can be troublesome since it’s a sort of “DIY zoning”, which would make existing rules pointless and a lot of upset voters if allowed without some big stipulations. 2 acres would limit many projects in the core of the city, but if you happen to be, say, a major landowner along the Waterfront or in the vicinity, like Guthrie or Cayuga Medical Center, it’s basically a red carpet invitation, as it allows them to set the bounds for a project. Notably, neither of those two fall within CIITAP’s boundaries, so while they wouldn’t be eligible for the tax abatement, they also don’t have to worry about the affordable housing component if they choose to do something with housing in the mix.

 





The Lux (232-236 Dryden Road) Construction Update, 10/2017

23 10 2017

Continuing yesterday’s theme, here’s another one of Collegetown’s development opportunities playing out, though perhaps it was less obvious as the Linden Avenue properties – coming soon to Ithaca, 60 units with 191 beds of student housing at 232-236 Dryden Road, just east of Collegetown’s core and part of the eastern transition to the Belle Sherman neighborhood.

Once again, this is a case of Visum Development Group scouting potential opportunities at the right time and place to make something happen. Along with a large surface parking lot, the previous building on this site was a 30-unit apartment building and the former dormitory for the historic Cascadilla School, a private school with a 140-year history on the corner of Oak and Summit Avenues in Collegetown. The 4-story building once housed dorms, a dining hall and a gymnasium, but after its sale to private ownership after World War I, it was remodeled again and again, each seemingly more unsympathetic than the last. By the late 20th century, it was a grim, awkward-looking box, stripped of ornamentation and of its historic value. The previous owner, the proprietor of the Hillside Inn, had owned the property for several decades; Visum paid about triple the tax assessment ($7.65 million vs. $2.55 million) to buy the property in September.

There are two buildings to be built, totaling 84,700 SF – 232 Dryden (The Lux South) and 236 Dryden (The Lux North). This allows for different plane grades, meaning they’re different elevations. That makes it easier to blend in with the neighbors, and creates less ambiguity with height limits, something that bedeviled Visum with its 201 College Avenue project. As with 210 Linden, zoning is CR-4 – four floors, 45 feet from average grade, no parking required with a city-approved transportation demand management plan (TDMP). Usually, that means free bus passes or Carshare registrations, ample bike storage, and explaining how students can easily commute to campus by walking.

The project was proposed in March 2017 and approved by August. Overall, the changes were fairly modest. No zoning variances and little public opposition helped to create a smooth review process. The biggest change came during the design review process, and affected the Dryden Road facade – revised fenestration and the addition of shingle-style balconies. STREAM Collaborative’s intent is to give the south building a little more historical sensitivity, and the balconies are throwbacks to the Cascadilla dormitory’s long-gone shingle-style balconies.

However, given that this building will date open in 2018 and not 1898, instead of wood shingle, the balconies will use Allura “Redwood” fiber cement shinglewood pulp mixed with sand and cement, shaped for a wood-like appearance, but with the durability of concrete. Fiber cement is also more expensive to buy and install vs. materials like vinyl, which is why only more expensive or visible structures tend to use it. Other planned materials include Endicott manganese ironspot velour brick veneer, fiber cement panels with LP smart trim painted in Sherwin-Williams Pure White and Anonymous (that is the actual name), lap siding in SW Pure White and Marigold, granite grey stucco (real stucco, not DryVit), a metal canopy and Andersen windows.

The loan, for $16,354,628, was granted by S&T Bank, a regional bank based in Pennsylvania that has no retail banking presence in Ithaca, but has served as the financier for several projects, including the Holiday Inn Express that recently opened on Elmira Road, and Visum’s just-opened 201 College Avenue project. A breakdown of the costs shows the total project cost is $22,780,334. There’s $13,020,010 in hard costs (materials/labor), $7.65 million for property acquisition, $475,000 in soft costs (architect/engineering/legal), $250,000 for the demolition, and the rest is for taxes during construction and interest reserve (interest on the construction loan during construction). $650,000 (5% of the hard cost) is set aside as contingency funds just in case the expenses clock in higher than expected.

Despite the rather pretentious name and logo, it’s hard to argue the amenities don’t live up to the premise – according to the marketing website, tenants of The Lux and other Visum properties have access to a media lounge, study room, hot tub, sauna, full-service gym, game room and outdoor terrace. Tenants will have trash removal, stainless steel appliances, in-unit washer and dryer, and bike storage. I feel poor just typing this stuff out. Units are 1-5 bedrooms, with the smallest being 1 bed, 1 bath and 435 SF, and the largest being a 1693 SF, five-bedroom, five-bath. Rents will be $1200-$1300/month. Visum is running an offer that if all tenants on a lease (presumably a larger unit) can show they’re members of a registered student org, they get 10% off the first month and a $150 check will be given to their organization. Many larger Collegetown units are legacy properties among student groups (fraternity annexes, bandies, club and NCAA sports), passed down from year to year by members of the org. This may be a clever move to make next years’ renting a bit easier on Visum, whose CEO noted softening in the market this year.

A trip to the site shows caisson (steel pipe) piles have already been laid for The Lux South, and demolition is ongoing of the old apartment building on the site of The Lux North. The pipes extend down to the solid shale bedrock 46 feet below grade, according to local engineering firm Elwyn & Palmer. A deep foundation by any measure. A benefit to building in Collegetown is that the ground is much more amenable to deep foundations than the weak, water-logged soils of the West End.

 





210 Linden Construction Update, 10/2017

21 10 2017

Technically, 210 Linden Avenue has been stopped for the time being, but just for the sake of having it, here’s the project description post for future reference.

One of the intents of the Collegetown Form Districts was to encourage redevelopment in portions of Collegetown that the city saw as less desirable – the really stereotypically poor-quality housing that Cornell just called out in its state of the university address. These properties are generally unsuitable for families since most of them were purpose-built boarding houses, often with haphazard additions and renovations over the years to make the bare minimum of city building and fire code. With a captive market in Cornell students, many landlords didn’t see the need for quality because the prevailing logic was that it decreased profitability. Only during the first luxury developments of the 1980s (Fane’s Collegetown Court in 1985, Mack Travis’s Eddygate in 1986) did that really start to change, and even then, many older landlords clung to the old ideas, hesitant to change from a time-tested if ethically questionable formula.

Since then, it’s been something of a development see-saw; developers see greater profit potential, but typically they need to build big to ensure a good return on investment (balancing soft construction costs, hard construction costs, interest on construction loans and current/future taxes against the revenue from renters). A large project comes along and drives discontent from East Hill and Belle Sherman, who have long clashed with the different lifestyles of students, as well as a longstanding sense of wariness from the old-style landlords who would try to buy homes and turn them into student slums. The city places a moratorium, tweaks the zoning, process starts anew. From a municipal perspective, it’s always been a delicate balance between the substantial taxes generated from Collegetown, and quality of life issues (traffic, rowdiness).

In general, the 2014 form-hybrid zoning, which removed some parking regulations and put the focus on Collegetown’s core, has had favorable outcomes; the only real debate has been 201 College Avenue, which was a rather unique situation. 210 Linden Avenue is a textbook example of a shared goal between city and developer – the 200 block of Linden has many properties in poor condition, and the city would like redevelopment mixed among the better-maintained older houses. With that in mind, zoning is generally CR-4 – 4 floors, and no parking required as long as a Transportation Demand Management (TDM) plan is received and approved by city staff. New buildings wouldn’t be large or oppressive since most buildings are 2.5-4 floors on this block, and with planning board input, high quality designs would enhance the walkable environment, build the tax base, and add some housing to reduce pressure on adjacent streets. Developers in turn would have more flexibility, and removing the parking rules really opens up the possibility for new builds on Linden’s small lots.

Previously, 210 Linden was a rather ramshackle 12-bedroom apartment house. Visum Development Group (VDG), led by local businessman Todd Fox, saw a potential opportunity for a new build and established a purchase option with the then-owners, a pair of small local landlords. The redevelopment is not an especially large project, medium-sized by Collegetown standards. It is 14,400 SF with 9 units, all of which are 4-bedroom, 2-bath, for a total of 36 bedrooms. Each floor has two units, except for the partially-above grade basement, which has one unit and space for the bike room, trash room and mechanicals. The project will use electric air-source heat pumps, and be net-zero energy capable with the use of an off-site renewable energy source.

210 Linden was first proposed in November 2016. With basically no opposition, and a design that the planning board found perfectly appropriate, it sailed through the review process, and approval was granted in January 2017. In something of a rarity for city projects, no zoning variance was required. 210 Linden fits the maximum length, width and building lot coverage allowed under the Collegetown Area Form District’s CR-4 zoning, and comes in at or just under the 45-foot height maximum – the sites are sloped, and the 45′ height is defined as the average above grade plane. Exterior finishes includes stucco at basement level, a couple shades of grey fiber cement lap siding above, red doors, metal balconies and natural wood trim.

There were virtually no design changes from beginning to end – the only noticeable change was that the doors were moved from the left side of the balcony/terrace to the right. The project was a fraternal twin to another infill development Visum has planned, 126 College Avenue. One has to give credit to the architect, Noah Demarest of STREAM Collaborative, for being able to provide cost-efficient and well-received designs.

A frequent partner of VDG, William H. Lane Inc. of Binghamton, is the general contractor. Right now, only the demolition and foundation excavation have been completed. Once the power lines have been buried out front by NYSEG, construction of the building can begin. The intent is to have the building completed in time for Cornell’s 2018-19 academic year, which starts in late August. Elmira Savings Bank gave VDG a $3.15 million construction loan in July to complete the project.

As one might expect with new units less than two blocks from Collegetown’s core, the cost per room is not cheap. Advertisements online say $5,000/month, or $1,250 per month per bedroom. Units come with 9′ ceilings, air conditioning, internet/cable, stainless steel appliances, quartz countertops, washer/dryer in-unit, balconies, and a security system, among other bullet points and exclamation points. A fitness room and other luxury amenities will be accessible to tenants at another Visum project, 232-236 Dryden Road.





400-404 & 406 Stewart Avenue Construction Update, 10/2017

18 10 2017

Framing is up to the top floor of the former Chapter House property at 400-404 Stewart Avenue. The plywood ZIP Panels appear to switch from the roofing variety to standard walls on the top floor and for the recessed entrance on the ground floor, and this probably has to do with the finishing materials. The ZIP panels have slightly different thicknesses. The thinner ones in green are used with fiber cement, and wood or asphalt shingle finishes. The top floor of the Chapter House is supposed to finished with asphalt shingles, according to planning docs. The lower two floors with the red ZIP panels will be faced with brick (Redland Heritage, the same brick used with 210 Hancock’s commercial building). The north wall has already been coated in waterproof spray foam, which will protect the frame from the porous brick veneer. It looks like some interior framing and roughs-ins are underway on the lower floors. Next door, the slab foundation for the new apartment building at 406 Stewart Avenue has been poured and cured, and framing work appears to be starting on the above-ground levels.

Along with local firms Taitem Engineering (overall civil and structural engineering, with emphasis on energy efficiency) and Elwyn & Palmer (civil and structural engineering with emphasis on geotechnical work and foundations), a New Hampshire company called “Overlook Construction Consultants” identifies itself as a project partner, but their online presence is nearly nothing. Jason K. Demarest is the architect for both buildings.

Project description and background here.





News Tidbits 10/7/17: Opportunities Come and Go

7 10 2017

1. The Inn at Taughannock expansion is no longer. The project, which called for a 2-story addition containing dining facilities, five guest rooms and facilities to support a 200-person capacity event center, was opposed by neighbors in Ulysses for being too large, the potential for noise, traffic, and for being out of character with the area. The strong disapproval played a big role in the town of Ulysses Zoning Board of Appeals’ decision to reject two of three building variances sought for the project, the exception being a cupola on the existing building. The board also permitted four of the six proposed signs.

With denials noted, the plan at this point is mostly landscaping – clean fill (soil) to level out the south lawn for gatherings, construction of a stone fence wall and retaining wall, re-configuring a stairway and patio area, lawn seeding and stormwater facilities.

2. One door is closed, another potentially opens. For sale, a trio of parcels – 526 West Seneca Street, 528 West Seneca Street, and 209 North Meadow Street – are up for sale on the city’s West End. The listing from Pyramid Brokerage’s August Monkemeyer is short and to the point:

“Rare opportunity on prime signalized intersection in Ithaca’s commercial corridor. Corner location with excellent exposure, road frontage and heavy traffic 32,000 plus ADDT. Redevelopment site for multiple commercial uses.”

For the record, ADDT is a typo. It’s AADT – “Average Annual Daily Traffic”. The brochure is a little more in-depth, and says 39,000 AADT. The listing price for the collection is $1.5 million.

528 West Seneca is a recently renovated early 1900s 4-unit apartment house purchased by current owner Shawn Gillespie in 2003 and it has an assessed value of $200,000. 528 West Seneca is an early 1900s house converted into an office building. It was renovated in the 2000s, purchased by Gillespie in 2012 and is assessed at $220,000. 209 North Meadow, an 1880s single-family home, has seen better days. It was co-purchased by Gillespie in 2015 and is assessed at $50,000 due to its poor condition. All of the buildings are designed in the older vernacular style common to the Ithaca area (“urban farmhouses”), so they’re old, but the designs were cookie cutter for their time, and their overall historic value is limited.

Zoning is a mixed bag. The two with frontage on Meadow are WEDZ-1b, while 526 West Seneca is R-3b. R-3b allows 4-story buildings with up to 40% lot coverage, has parking requirements that vary depending on the type of residence, and is geared towards small apartment buildings. WEDZ-1b is one of the city rarer codes, general retail and office uses that allows 100% lot coverage on parcel with less than 50 feet frontage (209 Meadow in this case), and 90% otherwise. However, the maximum floor height is only two floors, and one story buildings have to have pitched roofs. Unlike its WEDZ-1a counterpart across the street, parking is required. Looking at the code, it seems like a recipe for suburban box retail in the heart of the West End, with the R-3b a possible site for additional parking. That doesn’t seem to mesh with the urban mixed-use direction the city’s been moving towards. Should it sell, and it looks noteworthy, there will be a follow-up.

3. The construction loan for Nick Stavropoulos’ 107 South Albany Street project has been filed. Tompkins Trust will be able to watch their latest loan agreement from just a few blocks away. The total loan amount is $1,110,346.75. A small local company, Northeast Renovation Inc., will be the general contractor for the 11-unit apartment building.

Subcontractors on file include Frank Belentsof of Bestway Lumber (Excavation), Brian Kehoe of Kehoe’s Concrete Concepts for foundation work, Albanese Plumbing LLC for plumbing/HVAC/sprinklers, Weydman Electric, Goodale Sprayfoam for insulation, Joe Alpert of Drywall Interiors for sheetrock hanging. Fabbroni Engineers is doing the structural engineering in partnership with architect Daniel R. Hirtler.

4. The city of Ithaca Planning and Development Board was less than enthused about 311 College Avenue, aka Visum Development’s mixed-use Nines replacement. From the sound of it, the board’s John Schroeder was liable to go apoplectic. At the least, it seems the board wants a feasibility study for the cost of moving the firehouse-turned-restaurant to another site. From a design perspective, the board would like for either the design to pay homage to the Nines, or to reuse some of its building materials.

In contrast, it was fairly smooth sailing for the other projects under review. The duplex at 217 Columbia and Lakeview’s 60-unit supportive/affordable housing project were approved, and INHS’s 13-unit affordable housing proposal for the 200 Block of Elm Street progressed despite West Hill neighborhood opposition.

5. To touch on that topic a little more, the Times’ Nick Reynolds did an in-depth piece looking at the “crisis point” in Collegetown. It’s worth a read. I don’t agree with some of the insinuations (Student Agencies’ renovation of ca. 1985 409 College Avenue is not an aesthetic threat to the block), but it’s worth a read.

The document that Schroeder and Tomlan wrote of buildings they wanted preserved was uploaded as a PDF, but it is no longer online. The only copy of the list is from this blog, in a post eight years ago, and an article from the June 16, 2009 Ithaca Journal. The list and the response highlighted in the Journal shows there was a real disconnection, and I doubt most readers agreed completely with either Tomlan or the property owners. Since the PDF was published and reviewed by city staff and board appointees, two of 31 structures, the Snaith House (140 College) and Grandview House (209 College), were historically designated, and rightfully so, as exemplary architecture of their period. The Larkin was just designated as well, and the Chacona Block (Student Agencies) will be before the end of the year. Both of them are attractive older structures that provide a positive aesthetic complement to the neighborhood.

The Palms dive bar was not high design or even mediocre design, nor was it much of a desired neighborhood attribute, at least to permanent residents; nostalgic perhaps, but not historic. Pushing a structure on nostalgia alone will likely not clear the Planning Committee, as Steve Smith and Cynthia Brock nearly demonstrated with the Larkin Building. Mary Tomlan wanted to preserve a bar when the owner wanted to retire and sell it to whoever would give him the most. Sounds familiar.

However, the difference between the Palms and the Nines is that the Nines has a more substantial history, the structure has historic significance as the original home of Fire Station No .9. With its outdoor patio, it adds an aesthetic quality by being setback from the street yet maintaining active use frontage. That is not economically feasible in Collegetown and hasn’t been for decades, but it made sense for a fire station that served the community for generations. If there’s a balance between giving way to the new and preserving the old, the Nines and Palms fall on different sides.

The Times article references a “stopgap” measure that is basically an indefinite moratorium. That’s not the answer either. Most Collegetown structures offer little historic value. The Nines is a rare case otherwise. Without protective regulations, it was always a potential development target. Or rather, it was more like a landmine waiting to be triggered.

6. Courtesy of STREAM Collaborative’s biannual newsletter, the Varna Tiny Timbers project has a name and website. “The Cottages at Fall Creek Crossing”, as the 15-unit single-family development will be known, has website at http://www.cottagesatfallcreek.com. It’s bare bones at the moment and the lots have not yet begun marketing and sales. The pocket neighborhood of for-sale 2-bedroom and 3-bedroom homes will be built on the corner of Freese and Dryden Roads, the potential walkable, mixed-use center of the hamlet should a traditionally-designed Varna ever come to fruition. According to the newsletter, STREAM collaborated with Tiny Timber owner Buzz Dolph on the branding, logo and website, as well as on the design of the buildings and landscape.

7. It pains me a bit to admit this, but the Times is killing it in local meeting coverage. Even worse, the Voice has been short-staffed this week due to illness. At the Common Council meeting last night, members voted to give the IURA the necessary permission to handle the Green Street redevelopment project, including the RFP and submission review, sales terms and environmental review. Vicki Taylor Brous, public relations representative for developer Dave Lubin and his Harold’s Square project next door, spoke against the plans and said the project may be illegal, but until proven as such, review and discussion of the Ithaca Associates plan and any other submissions will move forward.

On another note, landmarking of the Larkin Building at 403 College Avenue was approved 8-2, with Cynthia Brock (D-1st) and Steve Smith (D-4th) opposed. Also, in what can only help Lansing Republicans, the city voted to join in on the Article 78 to halt the Cargill project until an Environment Impact Statement is conducted. The DEC deemed it unncecessary, and the lawsuit argues Cargill got special treatment. The dicey part is that a long, expensive study puts 200 blue-collar jobs at risk, and the debate has become a successful rallying cry for local conservatives.

I’m not a political consultant, but I think if outspoken Legislator Mike Sigler (R-Lansing) loses next month, it’ll be because of the national environment and the ability of progressive groups to tap into that at the local level. And if he wins, it’ll be because he channeled and won over the blue-collar Cargill households and their supporters who feel overlooked or kicked around in this debate.

8. One of the the perks of development – the latest Ithaca city budget calls for no tax increase for the 95% of homeowners whose assessment did not go up this year (not because of the market, but because the assessment office cycles through different parts of the county on 2-3 year intervals). The city will bring in an extra $621,508 (2.8%) through property taxes, mostly from new development “closing” on assessments as they’re completed and occupied. From 2012 to 2016, the budget increased 5.2%, while taxes, notoriously high thanks to the large percentage of tax-exempt property, fell 1%. In his budget presentation (copy on the Times webpage here), Myrick stated that without the $131 million in development since 2011, taxes would be 6.9% higher.

One thing that is not made clear in the article is that Collegetown Terrace, one of those big contributors, doesn’t have a tax abatement or PILOT. That’s taxed at 100% value. According to assessor Jay Franklin, assessments for a given year are calculated for the state of a property on March 1st, and in Terrace’s case, Building 7 wasn’t finished. Now that it is, it can be assessed at full value for 2018, which will be an additional $20-$25 million in taxable property (using $22.5 million, it equates to $270,900 in city taxes, given $12.04 per $1,000 assessed).

That might be the biggest addition, but other recent completions are not inconsequential. Back of the envelope estimates here, but when the Breazzano Center and INHS 210 Hancock PILOTs first show up in 2018, they will generate an additional $52,000. Even with its abatement, the Hotel Ithaca will add about $21,600 in year one if its $15 million price tag is close to assessment, and that will increase to $216,000/year after seven years (the downtown Business Improvement District tax rate is $14.40/$1,000). Several other recently-completed downtown projects will also pay more as their abatements taper towards full property value. For example, just the 10% increase for the Marriott in 2018 equates to about $29,000. Smaller projects like 607 South Aurora, 1001 North Aurora, 602 West State, 215-221 West Spencer and 123-129 Elmira stand to add another $70,000 or so in tax revenue. So all these projects not only make a dent in the housing deficit or provide jobs, they also provide a buffer to challenging times with declining state assistance. While development does increase demand for services, projects that are close to municipal services and able to easily tap into existing infrastructure generally provide a net positive financial benefit to the community.

Meanwhile, the town of Ithaca is looking at a miniscule tax increase this year of 0.21 percent (1.57 cents per $1,000), and will benefit from the Maplewood project, which at $80 million and $6.66/1,000, will pay in the ballpark of $532,000 towards the town, its highway department and the inter-municipal fire department (the city also gets a small share, only 1-2%).

9. A couple of sales of note. A 28.07 parcel of land along Oakcrest Road in Lansing, which was touted for potential suburban housing development, was sold for $610,000 to a well-known Cornell professor and his wife. The price was a little over 90% of ask, not bad for land. From a close mutual friend, real estate development is not one of the buyer’s interests. So, less likely to be a development, but maybe a grand estate.

Meanwhile, south of the Shannon Park development, and on the southern edge of the image above, an LLC paid $480,000, slightly below assessment, for 731 Cayuga Heights Road, a well-maintained 1820 farmhouse on 12.55 acres. The LLC’s address is the same as the Pyramid Companies, owners (or recent sellers?) of the Shoppes at Ithaca Mall, which the land abuts to its east. Something to keep an eye on, for sure.

 

10. Looking like a slow week and month ahead. The city of Ithaca Landmarks Preservation Commission is reviewing a roofing project. Nothing new in the city project’s memo, though some supplemental documents were added for Bridges Cornell Heights’ 16-bedroom mansion proposed at 105 Dearborn Place. It and INHS’s 203-209 Elm Street plan are up for final approval at the end of the month, potentially leaving no projects for review before the city (311 College will be discussed, but not reviewed this month, and its future progress is uncertain). The town’s planning board meeting was cancelled.