News Tidbits 4/29/17: Happy Birthday Mom

29 04 2017

1. The Times’ Matt Butler has written a great summary of almost everything you wanted to know about the Ithaca development approvals process (formally called entitlements). Basically, Ithaca’s high standards and arduous review process come with pros and cons. On a positive note, the city is more likely to get a nice product, the drawback is that it scares developers off. For those who do give the city a spin, the city is a desirable investment for a number of reasons (affluent residents, steadily growing economy), but the lengthy process generates uncertainties (bad for financing) and requires more money (bad for affordability).

There’s nothing wrong with high standards, but it really helps if the city gives developers a set of guidelines for what they’re looking for in a design, rather than forcing them to rely on antiquated zoning. Design guidelines were recently approved for Downtown and Collegetown, which should help, although an overhaul of the zoning would be much welcomed. However, in a city famous for its activism, even the most well-orchestrated plans can be broadsided by NIMBY grassroots, so even with these heavily-structured guidelines, building in Ithaca is likely to have uncertainties and challenges into the foreseeable future.

2. A couple of grants worth noting – Tompkins Community Action was awarded $3.7 million by the state to go towards construction of their Amici House project at 661-701 Spencer Road in Ithaca. The funds will cover about 45% of the $8.25 million construction cost. Work is supposed to begin this summer on the mixed-use project, which includes 23 studio units for vulnerable or previously homeless youth, and a 7,010 SF daycare/early education facility.

In other news,the Alcohol & Drug Council of Tompkins County was awarded $500,000 by the Care Compass Network Innovation Fund to use towards the establishment and operation of a 20-24 bed detox facility, much needed resource as the heroin epidemic continues to grip the nation. CCN is a non-profit consortium funded by Southern Tier health centers like Guthrie, Cayuga Med and Binghamton General. ADC-TC is a non-profit that focuses on substance abuse education, prevention and outpatient treatment. No facility was named in the announcement.

On a third note, the sale of 626 West Buffalo Street was completed. Tompkins County Opportunities, Alternatives, and Resources (OAR) intends to renovate the house into five beds of transitional housing for those getting out of jail and trying to get back on their feet. The intent is to provide, safe, secure housing to better help with the transition process, which can include education, job training and mental health and/or addiction treatment. The house was purchased for $95,000, and an additional $60,000 would be spent on renovations. The county voted to provide $100,000 in a one-time allotment – the rest of the money ($55,000) comes from grants, donations and a mortgage. Ultimately, the goal is to provide decent housing that helps reduce the recidivism rate (convicted persons committing more crimes), ideally saving the county on future court and incarceration costs, as well as what they hope pans out to a lower crime rate.

3. Tiny Timbers seems to be to a good start. The fledging modular timber-frame company run by the Dolph Family has added several members to its construction crew, and they will build the frame components out their newly-adapted warehouse-mill on Hall Road in Dryden. The house in Hector is nearly complete, two more are being prepared (both big cubes), and the gravel road is being constructed for their just-approved five-lot subdivision at 1624 Ellis Hollow Road. Going off the wording of their last blog post, it looks like three of those lots are already reserved or purchased (one lot is a conservation area).

4. Let’s not beat around the bush – you’re coming here for a bit of inside information, not just a news round-up. One of the reasons Dryden and Tompkins County have each committed $1,750 to an infrastructure study of the Route 13 corridor is that there is a concept proposal on the table from INHS for a mixed-use development with retail and 250 affordable housing units, on approximately 50 acres of a 100 acre parcel – half of it is north of the rail trail and would be conserved, possibly through Finger Lakes Land Trust. At 5 units/acre, it’s below Varna’s highest densities, but it’s about the rural threshold of about 2 units/acre.

As it so happens, a quick check of the county’s property tax map shows a 100.44 acre parcel of vacant farmland across the street from 1477 Dryden Road, outlined in blue above. The back half is Fall Creek, so given buffers and general environment concerns, it’s good sense to leave it alone. The land has been owned by the Leonardo Family (the ones who ran The Palms) since 1942.

I asked Dryden Town Planning Director Ray Burger about it, and he knew only what the county said. But it’s something to keep an eye on as the town figures out whether or not to extend sewer to that parcel.

5. It seems like there’s quite the tempest going on in Lansing. Let’s review. All this comes courtesy of the Lansing Star (not for lack of trying on my part. Almost all Lansing staff and officials ignore my phone calls and emails, except zoning officer Marty Moseley. Thanks Marty.).

I. Over in the village, the “Preservation Party” lost the village election by a large margin to the incumbent Community Party by a roughly 75/25 split (240 votes vs 80 votes). This result should settle the Bomax Drive rezoning from commercial tech space to residential once and for all.

Image courtesy of the Lansing Star

II. Lansing town has inked an MOU with Cayuga Heights and Lansing village to install a sewer line up Triphammer Road to create a small sewer district. However, it’s impacts would be substantial – it would have three primary users – the 102-unit Cayuga Farms project, the 117-unit English Village project, and the RINK, which is expanding its facility. The developers want the sewer so much, they’re paying for it in what town supervisor Ed LaVigne is calling a “public/private partnership”. Properties that do not hook up would not be hit with an increased assessment, according to LaVigne and county assessor Jay Franklin.

A back of the envelope estimate suggests $50-$60 million in increased land assessment, and $1.5 million+ in property taxes. Perfect for offsetting a rapidly devaluing power plant that was once your town’s biggest taxpayer. The village boards still need to sign off on the MOU, but Lansing town is desperate to make a deal.

III. The Lansing Meadows senior housing seems to be worked out, and it includes the  small community-focused food retail component desired by developer Eric Goetzmann. The public hearing is on the 1st; if approved next month, the construction bids will be posted shortly thereafter with an intended summer start on the 20-unit mixed-use project.

IV. Just…wow. On the one hand, LaVigne et al. have a right to be upset. Their town’s biggest taxpayer is faltering, they’re trying encourage as much development as they can to offset the plunge in property taxes, and with debates like the West Dryden pipeline, they have a right to be frustrated. But to say the county’s sabotaging your town is a whole different ball game. To say “[r]ight now The County is on the sh** list as far as I’m concerned,” well…

He deserves sympathy. There’s a lot of BS mixed in with the good of Tompkins County, and his town and its schools are in a real bind. Poo pooing them isn’t helping anybody. But…he can’t magically change how people in Dryden or Ithaca think. Ask solar companies if they’d be interested in town properties, find a way to make residential heat pumps and renewables work. Hell, work with TCAD, talk with Heather McDaniel and the green groups and come up with ideas. I had a professor in grad school tell me that “you lure more flies with honey than vinegar”. LaVigne has a right to be upset, but this isn’t a good look.

6. Now that a few people at INHS and County Planning have been annoyed (sorry guys), back to the news. The Journal is reporting that the town of Ulysses has acquired three Jacksonville properties from Exxon Mobil, in what they hope is the next step in closing a disastrous chapter in the town’s history. Back in the 1970s, the former Mobil gas station at the corner of Jacksonville Road and Route 96 leaked enormous amounts of gasoline and poisoned the hamlet’s groundwater – one report says a person passed out from noxious fumes when they turned on their shower.

The state DEC became involved and ordered Exxon Mobil to clean up the mess, which was carried out from 1984 to 1988, and the multinational gas company purchased most of the affected properties and demolished them – an 1827 church was left intact. The DEC’s case file was finally closed in 2005 after the test levels had receded to more acceptable readings, but Exxon Mobil has continued to own the property, letting the church fall into disrepair.

The town is buying the church at 5020 Jacksonville Road, a 0.275 acre vacant lot at 5036 Jacksonville Road, and a 0.656 acre vacant lot at 1853 Trumansburg Road for $5,001 (the trio’s total assessed value is $84,700). The plan is to install a septic for the church at 5036, renovate the church just enough to keep it from rotting out, and once the building is stable, the plan is to resell to someone looking for a unique fixer-upper. If no buyer is found, the town plans to eventually restore the church on their own. The larger lot on Trumansburg Road is being considered for resale towards private development, or use as a TCAT park-and-ride.

7. Is the Canopy Hilton underway or isn’t it underway? Still kinda hard to tell.

8. On the other hand, it looks like the new medical office building planned for Community Corners in Cayuga Heights, is starting demo work. The stone is being stripped from the existing buildings, to be reused on other structures. The Cayuga Medical Associates plan calls for a $5.6 million medical office building at 903-909 Hanshaw Road, 2 floors and 28,000 SF (square-feet), of which 23,200 SF will be lease-able space.

9. Nothing too exciting from the planning board agendas around the county – Lansing has nothing up, Cayuga Heights has nothing of note. Over in the town of Ithaca, Cornell plans to try again with its Peterson Parking Lot replacement (after the disastrous first try last April), the 15-lot Monkemeyer subdivision on East King Road continues review, and a 2-lot modification is up for consideration. In Dryden, the advisory planning board will continue review for the Tiny Timbers Ellis Hollow subdivision mentioned earlier, and a 7-lot subdivision of the former Dryden Lake golf course; there will also be some solar panel discussion, and possibly some info on the ~20 unit Pineridge Cottages project planned for Mineah Road.

 





210 Hancock Construction Update, 4/2017

23 04 2017

There is so much going on at INHS’s 210 Hancock site, this might be the record for most photos in a single construction update. Let’s go counterclockwise from the southwest corner, since that’s the order these photos were taken.

With the apartment building string, Section “A”‘s Blueskin has been mostly bricked over with Redland Heritage Brick. Some Blueskin remains exposed in areas that will be faced with Alpolic exterior metal panels. Fingers crossed that the mustard yellow shown in the elevations looks less jarring in person. It looks like an additional layer of thermal insulation was installed above the windows to go between the Blueskin and the metal panels (mostly dark grey, a few yellow…technically they’re called Alpolic Charcoal and EYL Yellow. the armchair architect in me really wants to harp on the yellow metal panels. I remember a Noah Demarest quote about yellow being a really hard exterior color to pull off. Why not a red or an orange-brown?). The roof is finished and interior fixtures and flooring are being installed.

Then we get to the first string of three for-sale townhouses, which will have addresses for the 200 Block of Hancock (apart from 202, I’m forgetting the exact numbers). They look nothing like the elevations submitted for IURA review, and that is not a bad thing. INHS is using Certainteed clapboard siding on the exterior. The one on the west (left) is “Autumn Red”, and the one on the east (right) is “Mountain Cedar”, both of which were used on the Stone Quarry project. The shades of brown and grey are so similar it’s hard to tell what the middle one is, maybe “Hearthstone”. It looks like a mixture of sizes as well, maybe 4″ on the left and middle, and 7″ Mountain Cedar on the right. The trim pieces are Certainteed vinyl and vary slightly in color, neutral whitish or tannish shades like “Sandstone Beige”, “Natural Clay” and “Desert Tan”.

Circling around to the 400 Block of Lake Avenue highlights a construction contrast between the for-sale units and the five for-rent units further north. The for-sale units are wood-frame, plywood Huber ZIP sheathing, and exterior finishes. The for-rent units are wood-frame, standard plywood sheets, Tyvek Housewrap, and exterior finishes. The difference between the two is really a matter of preference – both are effective water-resistive barriers if installed properly. ZIP panels tend to be easier to install (lower labor cost), but more expensive as a product.

The Certainteed colors on the rentals are “Spruce”, “Sable Brown”, a split-level “Autumn Red/Hearthstone”, “Flagstone” and another “Autumn Red”. Some of these will be 4″ clapboard, others 7″ shingles – all Certainteed, all to give the impression of individual units so they play well with their older, detached neighbors. The Spruce Green unit looks a little odd with that big blank wall above the porch, and in the renders and elevation it appears to be bigger than the final product.

Apartment sections “C” and “D” are still being framed, and “B” has been fully skinned and fitted out with windows. “B” will be faced with will use Carolina Ceramics Teakwood Brick and Morin blue-grey corrugated steel with pearl, EYL yellow and charcoal Alpolic metal panels, “C” will use Redland Whitehall Brick (white brick) as well as Alpolic panels, and “D” will use the same Heritage Red brick as “A” but, with some corrugated steel on the stairwell. “C” and “D” also have a first-floor covered parking garage. The garage will be face in Barnes and Cone Masonry, but the city’s November 2015 filing makes reference to a product that doesn’t appear in their brochures.

The apartment will be ready by August 1st, and the for-sale units will be on the market by the fall. Lecesse Construction is the general contractor.





210 Hancock Construction Update, 2/2017

20 02 2017

Normally construction sites get updates every two months. But at the INHS Hancock project site, things are getting really interesting in a short time.

First, the main apartment building. In just the past month, section “A”, the southernmost wing, has been wrapped in Blueskin, roofed, and the windows have been fitted. Answering a question from a few months back, it looks like the Blueskin’s purpose is to be the water/vapor membrane under the brick. The section of “A” under the weatherproof plastic tenting is being bricked – a few loose bricks can be seen in the last photos through holes in the plastic. Not only do the workers appreciate some protection from the elements, brickwork requires temperatures to be kept above freezing so that the water in the mortar doesn’t freeze out, so not only is there plastic wrap, Lecesse has also deployed portable heaters. Section “B” will follow with the Blueskin sheathing, roofing and window-fitting, and then “C” and “D”, which host the indoor garage (hence the CMUs) and are still being framed out.

The five rental townhouses have a typical wood-frame build-out – first comes wood framing and roofing, then tar papered and shingling, housewrapping and window fitting. Interestingly, the seven for-sale townhouses (collectively referred to as “202 Hancock”) are using Huber ZIP sheathing panels, which the rentals did not. The Hancock street trio of homes have been framed but not roofed, while the Lake Avenue quartet are still being framed out, awaiting the rest of their roof trusses. The insides of the for-sale homes are still just bare stud walls at this point, while the rentals are probably far enough along that most utility rough ins have been completed, and sheetrock is being hung in the units. All in all, Lecesse Construction and their subcontractors have been moving at a very good clip over the past month or so.

A construction loan filing on January 23rd states Tompkins Trust lent INHS $1,581,796 to finance the 202 Hancock units. The total cost (hard and soft) of the seven for-sale units is estimated at $2.36 million. The five two bedroom units (1,147 SF) will be sold for about $114,000, and two three-bedroom units (1,364 SF) for $136,000, to qualified applicants making 60-80% of local AMI, or $37,000-$49,000/year.

For the sake of comparison, the apartment building and for-sale units are partially financed with a $7,790,511 loan from a Citibank fund – through an LLC, Citibank bought the low-income housing tax credits (LIHTCs) awarded to the project by New York State. The apartment building’s total cost comes to $13.8 million, with the rest financed through INHS’s money, federal tax credits, housing grants and a low-interest loan from the state’s housing division (NYSHCR).

Renters or homeowners interested in obtaining a unit can fill out an inquiry form here. The rentals will be ready for occupancy by August 1st, 2017, and the for-sale units are looking at a November 2017 completion.

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News Tidbits 2/18/17: Credits and Loans

18 02 2017

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1. Over in Lansing village, it looks like the new Arleo medical office building is starting to moving forward. A sketch plan of the project was presented at the village planning board’s meeting earlier this week. Although Lansing doesn’t upload accessory docs like site plans and elevations, this one has been floating around for the past several months in marketing material as “Cayuga Ridge”. Quoting the May 7th 2016 news roundup:

“The new one-story building, which appears to be designed by Binghamton-based Keystone Associates, would be off of Warren Road, although it looks like the building would be accessed from a driveway coming off of Uptown Road. The 2.71 acre property north of 100 Uptown Road is zoned “Human Health Services District” by the village, and borders undeveloped land owned by Cornell, and several other suburban medical office buildings built over the past few decades. The resolution on the attached site plan is too low to determine the square footage, though it looks to be in the low tens of thousands.”

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2. For those who like their cottages tiny – it looks like Schickel Construction has begun work on the spiritual successor to their 140-unit Boiceville Cottages project in Caroline. The 40-house rental development is called “La Bourgade on Seneca”, and is located in the town of Hector, in Schuyler County just outside of Burdett village. For the record, Bourgade is a French term for an unfortified village or settlement. More details can be found on the website here. There will be two cottage types available -, “The Classic”, a 2-bedroom, 900 SF plan that will rent at $1,495/month, and “The Spacious”, a 2-bedroom with a dormer loft space totaling 1,000 SF and renting at $1,695 month. The house very much like their Boiceville cousins, but with angled eaves (dunno what the correct term is and google’s not helping – if there’s an architect reading, please chime in). All units will have lake views.

Personally, I see this as a stretch for the Ithaca market, since it’s 25 miles west of the city. But it might tap into a more plebeian contingent the wine country crowd, the wealthier of whom have taken to building grand vacation or permanent homes along the Finger Lakes in recent years. The first 9 units, three clusters of three, are currently under construction, as is a community center. Delivery is expected in May 2017.

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3. It looks like Ithaca College is putting some more thought into their housing needs. The college has been meeting with planning firm U3 Advisors to explore the possibility of new off-campus student housing.

U3 Advisors is already familiar with the area, as they are also under contract with Cornell to formulate their off-campus housing plan. Unlike Cornell, however, Ithaca College has no plans to grow enrollment – the master plan expects it to stay steady around 7,000. However, many of the dorms are reaching the end of their useful lives, meaning that the college can either sink a fair sum into renovation and replacement of utility systems, or tear down and build anew. An off-campus option could either be a private entity on private land, or a deal on IC-owned land like what Cornell and EdR are doing with Maplewood. A 200-300 bedroom off-campus option could mesh with the town of Ithaca’s visions for a walkable South Hill neighborhood on the intersection of Route 96 and King Road.

It’s still just studies and meetings at this point, but as the oldest dorms hit 50 years old on South Hill, there might be something fresh in the pipeline. We’ll see what happens.

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4. Ithaca’s West End will be welcoming a new tenant in the next couple months. Courtesy of Nick Reynolds over at the Times, the USDA is shifting its regional office out of Community Corners in Cayuga Heights, and into Fulton Meadows, a commercial office building at 225 South Fulton Street. the move is being undertaken in anticipation of the construction of Tim Ciaschi’s new Cayuga Medical Associates office building, which is set to get underway at Community Corners later this year.

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5. Looks like we have an idea of the price tag for Visum Development’s 201 College Avenue. According to a construction loan filed with the county on the 15th, S&T Bank loaned Todd Fox’s company $7,870,673 to help cover the costs of the project. The breakdown in the filing says $6,841,038 for hard construction costs (materials/equipment/labor), $507,000 in soft costs (permits/legal/marketing/financing fees), $300k in contigency and $226k in interest reserves. Add in the $2.64 million for the land purchase, and the total comes to $10,514,180.

That’s something of a premium because the project is on an accelerated schedule after the big hullabaloo with Neil Golder and the city Planning Board last fall. Note that the loan doesn’t cover all the costs and that there is money from other sources, like cash equity from Visum itself.

S&T Bank is a regional bank based out of Western Pennsylvania, but they’ve been making inroads into Ithaca’s commercial lending market. S&T Bank also financed the construction of the Holiday Inn Express that recently opened on Route 13, lending $5,973,750 to the hotel developers.

Quick aside, I think this is the first time I’m seeing the square footage calculated out – 201 College will be 33,398 SF.

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6. Hopefully this runs after by INHS refinancing explainer, so it makes more sense. Quick rehash, low income housing tax credits (LIHTCs) are sold to banks and similar financial institutions so that they get the tax credit, and the affordable housing developer gets the money they need to move forward with a project. With that in mind, here’s an interesting though unfortunate tidbit from INHS’s Paul Mazzarella:

“This following may be more than you want to include in this article, but it is relevant.  The pricing of tax credits exists in a marketplace where they rise and fall in value.  In past projects completed by INHS, we’ve received from $0.91 to $1.02 of equity investment for each dollar of tax credit.  The pricing of tax credits has recently plummeted because of the recent election and the uncertainty in DC.  This is mostly due to discussions about changing the corporate tax rate.  A lower corporate tax rate will mean that companies have less profits to shield from taxes and therefore the demand for tax credits will be reduced.  Even though no changes have yet been made to the corporate tax rate, just the discussion about this has reduced the pricing of tax credits to around $0.80.  What does this mean for INHS? It means that the project that we’ve been working on for several years suddenly has a funding gap that didn’t exist a few months ago, due entirely to investor’s fear of risk due to an uncertain future..  This is true for every tax credit project in the country and has all of us struggling to make the pro formas work.”

Sigh. Politics.

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7. The Times has the first render for Habitat for Humanity’s two-family townhouse project at 208/210 Third Street on the city’s Northside. It looks to be the same architect as the 4-unit project for 402 South Cayuga – I can’t seem to find the architect offhand as a few designers have donated time and energy, but local planner George Frantz shepherded the project through the approvals process. Each unit is about 1500 SF. The plan for the $305,000 project is to break ground in April and have the move-in ceremony in Spring 2018. As with all local Habitat projects, a portion of the construction will come from volunteer labor, including 500 hours of “sweat equity”, and homeownership classes that the two recipient lower-income families (making 60% AMI or less, $32,000/year) will need to complete as part of the deal.

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8. Wrapping this up with the local agendas for next week – the town of Ithaca will be looking at a home B&B permit on Bostwick Road, a retaining wall for Ithaca College’s track, and finishes touches on the Maplewood approvals. The city’s project review meeting indicates the city plans to look at the subdivision at 109 Dearborn Place, Declaration of Lead Agency and Environmental Review for the 11-unit 107 South Albany Street plan,  and “Approval of Conditions” for City Centre, which is just making sure they’ve completed everything asked for in the final approval. In sum, nothing too exciting at the moment, but we’ll see if the city has any new projects coming up when the actual PB agenda comes out next week.

9. Quick note to wrap up – the woman behind the Rogues Harbor Inn in Lansing has purchased a prominent and historic building on Freeville’s main drag. Eileen Stout purchased 2 Main Street, a mixed-use building with restaurant space, a tile shop and three apartments, on Thursday for $132,000. The seller was Tompkins Trust and it’s well below assessment – doesn’t look like a foreclosure though. The bank bought the property for almost double the price in May 2016.





210 Hancock Construction Update, 1/2017

9 01 2017

So much to see over at the 210 Hancock site. First, the prefabricated wood wall panels of section “A”, the south wing of the apartment building, are up to the top (fourth) floor, and one gets a pretty good idea of the vertical scale of the building. For the record, roof height will be 46 feet, not counting mechanicals. The second section to the north of it, “B”, was designed by HOLT Architects to be a little closer to the street, so it looks less like one continuous wall, and helps create the impression of separate structures. The first floor of these two subsections, which is framed by metal and wood rather than wood alone, will house the daycare, rental offices and commercial space. Sections “C” and “D” will consist of apartments over the indoor garage, which is currently wrapped in plastic sheeting, and separated from the other two section by a CMU stairwell.

The rental townhouses are fully framed (210 Hancock’s website says window install is expected to start soon), and it appears that Lecesse has start construction on the seven for-sale townhouses – the foundation walls have been excavated and poured. These units have a slab (shallow) foundation, and not having to worry about excavation allows the townhouses to move along at a faster clip. The apartments and rental townhouses should be ready by August, the for-sale townhouses by November. Ithaca Neighborhood Housing Services (INHS) has a website up for rental applications here and qualified home-owners here.

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210 Hancock Construction Update, 11/2016

2 12 2016

Plenty of progress at 210 Hancock. LeCesse has the foundation completed and the apartment building is out of the ground. The northern two segments have a parking garage on the first floor, hence the paving. Rebar poking out of the CMUs will tie into the steel structure. The southern two segments are a little further along. Steelwork is underway for both, with the first floor framed out. The southernmost structure, which will house the affordable daycare space, already has interior stud walls going up, as well as plywood with rough openings for doors and windows.

The five for-rent townhouses are much further along than I had anticipated. They are fully framed and it looks like tar paper is being applied to the rooftops. Looking at the sample wall at the corner of the property, there were a couple different housewraps in display – one was standard DuPont Tyvek commercial wrap, the other was Henry BlueSkin, which I’ve never before seen in a project around Ithaca. A little research suggests BlueSkin is a newer and more expensive product, but it seems to have its proponents. With fewer staples or button caps involved, it’s less labor-intensive to install, and less fastening comes with less of a risk of the vapor barrier being torn open and compromising its waterproofing abilities.

Both are fully synthetic plastic wraps with microscopic holes that allow moisture to breathe out without letting moisture in from the outside, preventing mold and wood rot. But in order for Tyvek to work effectively, all the joints and seams have to be taped tight to keep water from seeping in at the edges. Blueskin is created with an adhesive so that it doesn’t have to be taped down. However, BlueSkin still has to be fastened at window and door openings, the application surface has to be clean and dry, and it’s more difficult to apply in temperatures less than 40 degrees F – keep in mind, we’re at the onset of a northeast winter. I’m not sure which barrier will be applied where, but we’ll find out soon.
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News Tidbits 10/15/16: Stoops and Stumbles, Growth and Gables

15 10 2016

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1. The Maguire proposal for Carpenter Business Park will be heading to the Common Council next month, but the prognosis isn’t good. The city council’s Planning Committee voted 4-0 to say that the proposal didn’t fit with the city’s Comprehensive Plan for the near-Waterfront property – the plan calls for walkable, urban mixed-uses, preferably with residential components. The discussion wasn’t unanimous in its logic – 2nd Ward Councilmen Nguyen and Murtagh were stronger adherents to the plan, while the 1st Ward’s Cynthia Brock doesn’t think housing is appropriate – but they all disagreed with the multi-brand car dealership plan as-is. Maguire has asked for a delay in vote so that the plan could be tweaked, but the Committee voted to move forward.

Because of the 18-month TMPUD in place, the Common Council has to vote to approve all projects in the waterfront area, so the resolution to decline further review of the project will be voted on at the next non-budget Council meeting. It will not be unanimous – the 3rd Ward’s Donna Fleming wrote a letter of support for the project, and the 1st Ward’s George McGonigal voiced support for the concept though not this particular plan. But the chances of approval are pretty slim at this point.

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2. Judging from the site photos John Novarr’s project team sent along, it looks like environmental remediation has already commenced at the site of his faculty townhouse project at 119-125 College Avenue in Collegetown. 121 College, in particular, is already in the early stages of remediation. It’s a pretty extensive photo documentation, one that might have to do with historic preservation aspects, like determining what can be salvaged and reused. It’s pretty clear that the properties, which were recently acquired from an Endicott-based landlord who held the properties for decades, are in rough shape. Novarr seems to have a preference for prepping sites before plans are approved (ex. 209-215 Dryden), so it’s uncertain how much time these three boarding houses have left.

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3. Courtesy of the Ithaca Urban Renewal Agency’s Neighborhood Investment Committee, we get to see a pretty thorough breakdown of the expenses and revenues of an owner-occupied affordable housing project.

The details come as part of INHS’s application for $314,125 in Federal HUD HOME funds, to be used for the 7 for-sale townhouse units included with the 210 Hancock project, collectively called 202 Hancock. The funds would be used to cover soft costs, like project management, engineering and architecture fees, legal fees, and site inspections.

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The 202 Hancock project construction cost is estimated at $1,754,860, about $344,000 per unit, or about $198/SF. That’s expensive, but not unusual – 203 Third Street was about $190/SF. The cost is high due to rapidly rising construction costs, and due to federal guidelines and lender specifications, INHS is required to hire contractors with extensive insurance. Add in soft costs and it jumps to $2,408.371.

Now let’s consider the sales. The five two-bedroom units are expected to sell for $130,052 to a household making no more than $38,046. The two three-bedrooms will sell for $164,979, to households making $42,428/year or less. Those incomes don’t meet the rule-of-thumb of 3.4x annual income, but HOME funds cover part of the cost ($24,000 for the 2-bedrooms, $36,000 for the three-bedrooms). INHS gets $960,218 in the project sales – and that’s the same amount Tompkins Trust Company is willing to cover with a construction loan. So the initial gap is $1,448,155. Now we’re starting to see why new housing can be so expensive.

INHS gets $7,000 in revenue from Energy Star rebates on appliances, and has up to $351,153 equity they can put towards the project, most of that being the value the of 202 Hancock’s land. The IURA would issue a low-interest bond for $215,875 to be paid back by INHS, and the non-profit has secured $280,000 in grants directly from the state (NYS AHC), and $280,000 in NYS CDBG funds awarded by local governments (this tactic is known as “subsidy layering“). This complicated puzzle of funding sources is why so many developers are not interested in doing affordable housing.

Side note, one of the pre-development costs is market analysis. Might seem silly, but grant reviewers want proof the housing crisis isn’t just bluster, and that these units won’t sit empty. An analysis by Randall/West determined that at a sale price of $136,000 for a 2-bedroom, and $162,000 for a 3-bedroom, qualified buyers would be found and under contract within 4.6 months. The units should be available for occupancy by June 2017.

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Secondly, thanks to a legal settlement between the state and Morgan Stanley, a $4 million affordable housing grant is available for renovations of existing INHS scattered site rentals (98 units in 44 buildings across the city). Most of these units are rented to individuals making 60% or less of the area’s median income (about or less than $32k/yr). The funds would go towards major, long-term renovations, such as new roofs, windows, siding, and energy efficiency improvements. INHS could also use the funds, disbursed via the city, to refinance its portfolio, acquiring some of the properties and paying off $1.8 million in loans on already-purchased properties.

Here’s the short of it – the goal is to buy/pay off the scattered rental sites they manage, renovate and make them energy efficient and comfortable, lock them into the Community Housing Trust so that they become permanently affordable, transfer the land to a wholly-owned Housing Development Fund Corporation, and then sell some of the buildings to an LLC while INHS continues as property manager. The funds from sales would finance new affordable housing. This is all set up as it is to take advantage of legal and tax benefits of different corporate tax structures, while minimizing the drawbacks. Potentially, the Morgan Stanley settlement money could be used to leverage an additional $15 million in tax credits and affordable housing grants from the state.

Correction, per INHS’s Scott Reynolds in the comments section: rentals aren’t in the Community Housing Trust, but affordability would be required for 50 years.

Rochester-based SWBR would be in charge of renovation design plans, and 2+4 Construction will be general contractor. Tenants may need to be relocated as renovations occur, which will be coordinated by INHS staff. The goal is to have the settlement money accepted by the city by the end of the year, financing by April 2017, and renovations completed by the end of 2018.

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4. It’s another one of those special meetings – the city Planning Board will be sitting down next Tuesday to go over comments and sort another batch of public comments regarding the Chain Works DEIS, this time on public health. Once you get past the few pages of “this will never work and don’t bother trying”, there’s actually some interesting back and forth about remediation and what that entails. Also on the agenda are revisions to the Holiday Inn Express down in Southwest Ithaca – namely, they’re trying to avoid building the stairs to Spencer Road, as well as some other landscaping issues. At the second meeting later this month, the board is expected to Declare Lead Agency, open public hearings and review parts of the FEAF for TCAction’s Amici House, 8-unit 607 South Aurora, and the 8-story City Centre project on the Trebloc site downtown.

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5. The plans for Maplewood have been modified yet again, in a change that the project team hopes will please neighbors and the town of Ithaca planning board. In revised plans submitted this past Wednesday, the 4-story apartment building planned for Mitchell Road has been replaced with a few sets of 2.5 and 3.5-story townhouses and stacked flats, and Building B to its north was extended slightly to compensate for the loss of bedrooms. Even so, the accompanying letter from Scott Whitham states that the unit and bed count have decreased slightly, from 473 units and 887 beds, to 442 units and 872 beds.

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Also modified was their appearance – stoops, porches, dormers and gable roofs were added to give them a more harmonious appearance with the rest of the neighborhood. It’s not clear if the rest of the units were aesthetically modified as well.