News Tidbits 1/18/2019

19 01 2019

It’s been a while. Let’s start with the bad news first; projects that have been cancelled over the past month, or are on the ropes.

1. Heading over to Lansing, the Lansing Senior Cottages is dead. The project, which was developed by Beer Properties in conjunction with Hunt Engineers, had been reduced in size from the initial proposal, from 108 units to 97 units, in 84 buildings (71 single-family, 13 two-family) on about 40 acres. In order to move forward as a pocket-neighborhood housing development (houses closer together than permitted under a medium-density residential zone in the village), it would have needed a Planned Development (PDA) designation from the village of Lansing.

The Planning Board has eight criteria to establish a PDA, and felt that the project didn’t meet four of the criteria (maximum choice in ownership types and occupancy tenure, convenience in location of non-residential facilities, efficient use of land, and desirable change in environment), and was therefore insufficient to merit a PDA. Their vote to deny the PDA also killed the project, since the design isn’t possible in Lansing’s medium-density zone. The density is the legal, albeit at the maximum allowed, which in sewered areas is 20,000 SF (0.46 acres) per single-family, and 25,000 SF (0.57 acres) per two-family. But the law states they have to be on their own, non-clustered lots, with setbacks, minimum road frontage and so forth. In other words, a conventional suburban subdivision.

The site was originally approved for just such a project, the high-end, three-phase, 31-lot Millcroft development, of which only the first phase was ever platted and prepped before the Great Recession kicked in and the market for very large, very expensive homes shrank. The Bush family limited homes to 2,500 SF or greater, and with half-acre lots selling for $80,000, it was clearly geared toward high-end homes, but they lack the combination of acreage or lake views that are the usual prerequisites of Lansing’s $500k+ home sales. Well over a decade later, and the thirteen home lots still have yet to be fully built out, and interest has never been strong. Three of the four recent home sales here sold under assessment, which is a rarity in Tompkins; last year, it was less than ~6% of properties.

Meanwhile, the rest of the Millcroft land went up for sale in 2017. When the Bush family sold a purchase option to the Beers, it was taken about as well as a stick to the eye, and Millcroft Lane residents strongly opposed the 800-1,200 SF senior cottages. In theory, the remaining eighteen lots in the subdivision are still an option, or another layout could be submitted; but a developer is not legally obligated to build houses as big or expensive as the first phase if the Bush family agrees to remove the covenants, which the Beer cottages proposal shows they very are open to.

As for the Beers, it’s a shame the plan won’t move forward, as senior rentals (and senior for-sale, more crucially) are an underserved market in Tompkins County. Potentially, other locations in Lansing or elsewhere might be suitable and more open to cluster-style senior cottages, but after sinking tens of thousands into this proposal, the Beers are unlikely to submit something else in the near future.

2. A little further north in the town of Lansing, a pair of projects are struggling. The 102-unit Cayuga Orchard Apartments project is up for sale from WB Property Group of New York City, as is a 28-lot subdivision, Cayuga Way, which was intended for high-end homes. Cayuga Orchard is asking $3.1 million for the 30.5 acres and plans, though the seller has stated interest in a Joint Venture partnership if a potential buyer is interested and willing to negotiate. The ad briefly states:

“30.5 acres, now approved for 102 units, approved to tap into municipal sewer. Open to JV or to sell outright Located in prestigious town of lansing, best in class schools, 15 min from Cornell University Extremely long approval process for multifamily.”

To be fair, the town of Lansing is one of the easier municipal approval processes in Tompkins County, though an uncertain and red-tape-filled process has been cited as both a barrier to affordable housing and housing development within the county.

The Cayuga Way ad, also from WB Property Group, is for either all 28 lots or by the lot:

“All approved for 28 lot subdivision, roads/improvements are in. Best piece of land remaining in the prestigious Lansing area on “the hill.” All wooded lots. 15 minutes from Cornell University, Downtown Ithaca, and Ithaca and Lansing High Schools.”

Price on request, also called price on application (POA) can be done for several reasons – market fluctuations, a fear of influencing other properties if higher or lower than expected, and more questionably, a chance to size up buyers to see how much they can afford. Presumably, a buyer seeking 1500 SF homes here wouldn’t want to pay as much as someone thinking 3000 SF. Joint ventures are also being considered for this project.

For a town hoping to develop its way out of the continued decrease and likely loss of what was once its largest taxpayer, this isn’t good news. But we’ll see if a partner or buyer comes along.

3. This one was a bit surprising. The Dryden town Zoning Board of Appeals shot down a 3-lot subdivision at 1932 Slaterville Road. The plan was for Habitat for Humanity to buy the property, create two more lots and renovate the existing dilapidated 150 year-old farm house, all three of which would have been sold to qualified low-income families who put in the “sweat equity” to help build and renovate.The variance was needed for a flag lot, because with the land acquisition and renovation costs, the project only penned out financially with two more lots.

On paper, that actually seems like a slam dunk. I thought it would be smooth sailing after Dryden’s Planning Board, which is advisory but tends to be less pro-development than Dryden’s other board, had recommended the variance be approved; in fact, David Weinstein, one of the planning board’s most stringent members, was very supportive, citing the desperate need for affordable housing and feeling its 1-acre per lot density was appropriate for the area. But then the Zoning Board of Appeals runs out with this:

It’s like they’re talking about two totally different proposals. I’d also like to point out that describing affordable owner-occupied housing as “there would be an undesirable change of the neighborhood, which is not in the character of the neighborhood, and could possibly have detriment to the neighborhood” is a really tasteless and poor choice of words.

With the denial of the variance, the project is dead. That’s unfortunate for Habitat, who due to logistical difficulties had to cancel their previous project for four townhomes at 402 South Cayuga Street. As for the $40,000 they were due to receive from the joint Cornell-city-count Community Housing Development Fund, it will go unused.

 

4. Emmy’s Organics is not moving forward with their Cherry Street project. The plan ran into trouble when initial geotechnical studies found that the soils may be in such poor shape on the site that they’re unable to reasonably support the concrete slab for a single-story industrial building, and not even stable enough to support a parking lot. The IURA hired a second geotechnical engineering firm (John P. Stopen Engineering) for $5,000, which found that it would be possible to build, but only if the top three feet of soil were removed, which would raise the project cost. The IURA was willing to consider a larger loan, but Emmy’s decided the project, which was on a tight timeline, was simply no longer feasible. The owners are now looking to build elsewhere, so not only is the $1.4 million project and its 5-10 new jobs are lost, it’s not clear where the firm will move and what’s going to happen with their existing 19 mostly living-wage jobs. It also puts the IURA in a spot because the undeveloped remainder of Cherry Street just became a lot less desirable for smaller light industrial projects like this one.

The project was to use $175,000 in NYS-administered Community Block Development Grant Funds (CDGF) for job creation for low and moderate-income households. These funds have to be allocated by the city by March 31st, or they have to be returned to the state. In a rush to use them before they lose them, the IURA is proposed to shift $49,000 towards lighting improvements in Titus Park, and $126,000 towards $290,000 in acquisition costs to buy the 9,100 SF Immaculate Conception gymnasium from the Catholic Diocese, for use in indoor recreation and presumably as part of the sale of the rest of the property to INHS. The IURA is not totally sure if either use qualifies for the funds, but they’re in a rush to find alternatives before the state takes the money back.





Village Solars Construction Update, 3/2018

24 03 2018

It looks like 102 Village Place is just about complete from the outside, with only some minor finishing work like trim boards remaining on the to-do list. Its peer, 116 Village Circle, is a little further behind, with rough-ins, insulation and drywall in place inside, and exterior facade work underway. The air-source heat pumps have been installed, but not fully hooked up yet. The 42 units in these two (24 and 18 respectively) should be ready for occupancy by the end of the spring.

I never caught it before, but the project docs say the developer, Lifestyles Properties (the Lucente family), will plant over 500 cherry trees on the property as phases concludes and the land is no longer disturbed. Perhaps a few of the saplings below are included in that figure.

According to the phasing plan, the next phase is to replace 2 Village Circle and 22 Village Circle with a pair of 18-unit buildings. Those would be twelve studios and six two-bedrooms each, replacing two ten one-bedroom unit buildings (net gain of 28 residents, for those keeping in track). These would likely start later this year for a 2019 completion.

After that time, Phase 3b, a 20-unit, 20-bedroom mixed-use community building (building “F”, all-new), would also start construction, with the start of phase 4, the 24-unit replacement of 36 Village Circle, to follow in the 2019-2020 timeframe. 3b has to start before Phase 4 if even just one day sooner, as that was added as a stipulation by the town planning board before any new phases commence (presumably, it would also have to be completed in reasonable time). Lifestyle Properties says the two buildings per year phase-in works well for Tompkins Trust Company as lender (its market segment and location can comfortably absorb another 42 or so units every year), and for the in-house construction team and preferred subcontractors. Spring 2022 is the practical conclusion, but there are plans for additional buildings east of the current site, which could add a few hundred more units throughout the 2020s.

Just as a subjective observation, there has definitely been a change in Lansing’s development pattern. It’s still fairly suburban, but the numerous 3,000 SF Cardamone homes that seemed to be ever-underway on cul-de-sacs in the mid 2000s have now been reduced to a trickle – I never see more than 2 or 3 underway at any one time these days, and driving through Cayuga Way, Woodland Park and Whispering Pines is often a waste of gas. However, multi-family is taking off in areas with sewer access, like here at the Village Solars, and with the English Village / Cayuga Orchard properties between East Shore Drive and Triphammer Road. Likewise, the village is getting plenty of infill on its vacant parcels, from large projects like the Bomax Drive Apartments and Cayuga View Senior Living, to smaller ones like Triphammer Row.

There’s some evidence to back that up – according to the federal HUD Building Permits Database, from 2003-2006, Lansing town and village approved 187 single-family homes and not a single multi-family unit. From 2013-2016 (the latest available), the two approved 92 single-family homes and 148 multi-family units.





News Tidbits 12/9/17: Not Enough Time in the World

9 12 2017

1. The good news is, Maplewood is progressing. The bad news is, it is not progressing fast enough. A combination of bad weather (rain-outs), and staffing issues. The weather delays had been so bad (with rain 2.5x monthly normals in October) that some subcontractors walked away to take other jobs – while the ~200 Maplewood construction jobs are quality union labor, it’s been difficult to get a full week’s work in. It’s a Monday-Friday job; with a rain-out, they lose a day in the week. That means they also lose out on a day’s pay. Over the past year, 37 days have been partially or fully rained out. A provision in the subcontractors’ contracts allows them to leave for other jobs id the issue becomes too severe, so some have done just that. Not hard feelings, just a tough situation for everyone.

Now about 25 days behind a very tight schedule, EdR and LeChase are asking to be allowed to regularly work 8 AM – 4 PM Saturdays. The town is open to this, but wants more documentation before signing off. So, expect a six-day workweek during the winter and spring. The goal is still to deliver the $80 million, 872-bed project by July.

2. The Seneca Street Garage is “showing its age”. As the garage is now about 45 years old and is designed to last about 50 years, some components are starting to deteriorate. The city has constructed some shoring posts to keep the concrete pillars relatively stable. They are not at risk of collapse, but the tension cables, which are used in combination with rebar to provide for a heavy-duty concrete structure with fewer columns, are starting to wear out. Decades of salt, water and corrosion will do that.

The city will lose about 20 parking spaces from the life-extension measures. The Times is reporting that the city hopes to get another ten to fifteen years out of the garage, and hope to have a plan for replacement parking in place within ten years. That could be a demo and rebuild of the garage, or it could be something more substantial, like the Green Street Garage project. It’s something to mull over now, but there are no big decisions planned anytime soon. Perhaps a Seneca Street rebuild with mixed uses ends up being one of the big urban developments of the late 2020s.

3. A development site on West Hill has exchanged hands. As covered previously, Bella Vista was a planned 44-unit condominium project on Cliff Street that was approved in 2007, and never came to fruition. The site it was proposed for, an 11.71 acre property at 901-999 Cliff Street, was put up for sale in December 2015 for $395,000. Finally, it has been sold.

The developer, Mauro Marinelli as Primary Developers Inc., sold the land to American Blue Sky Holdings LLC for $330,000 on the 5th. The LLC is owned by local businessman Greg Mezey, who previously bought the 12,000 SF medical office building next door at 821 Cliff Street for $945,000 in February 2015. Since then, he and realtor Ryan Mitchell have undertaken some modest building and site improvements. As Red Door Rentals, they own and manage a few apartment houses with a total of about 25 bedrooms.

So what does that portend here? Good question. Watch and wait, for now. The Bella Vista project could still be built, but it must be re-approved by the city of Ithaca, since project approval is only good for two years. Zoning is R-3a, primarily residential uses with up to 4 floors and 35% lot coverage. Parkin is one space per unit or three bedrooms (whichever produces more), and small-scale commercial is allowed with a special permit. The site’s topography is a challenge, but the size of it and its proximity to downtown and the West End make it an interesting opportunity.

4. It looks like the first phase of Dryden’s Maple Ridge subdivision has just about filled out. For owner/developer Paul Simonet, it’s been a long time coming – the development launched right before the recession in 2008, and development didn’t really take off until the economy recovered. In 2013, there were three houses. By November 2014, only four houses had been built, with a duplex underway. Now, there are ten homes, and just about all one of the home lots have been sold. Some of the lots in phase one were combined by buyers.

Interesting, many of the homes built in Maple Ridge are modulars – I half-jokingly suggest that Carina Construction take prospective buyers through here to show them the variety of options one can pursue with modulars. It looks like this latest build on Applewood Lane will also be a modular – the foundation is built (note the dark Bituthene membrane for moisture protection), and the pieces will be trucked over and craned and assembled shortly, if they haven’t been already.

Ultimately, Maple Ridge is supposed to be three phases and 50 lots, and phase two will have about 29 lots, and since these are larger, they’re less likely to consolidated as phase one’s were. Given the need for a new road and infrastructure, sales seem unlikely until well into next year. The village minutes (the few they upload) does show that Simonet is actively pursuing the second phase.

It also answers a question from last week – the Elm Street office/warehouse complex will be the new home of the Ithaca Ice company, after some modest renovations.

5. The Lakeview affordable housing plan for the 700 Block of West Court Street, now called “West End Heights” was selected to receive a $100,000 grant from the inter-municipal and Cornell affordable housing fund (CHDF), but the funds will be delayed a little bit because they need to be moved into the 2018 budget, as the check will be going out in 2018.

6. The latest phase of the Village Solars (the reconstruction of 102 and 116 Village Circle) is being built with a $6 million construction loan from Tompkins Trust Company. The agreement was uploaded to the county’s records on the 7th. The contractor is “Actual Contractors LLC” with an address at Stephen Lucente’s home on the lake – it’s their in-house construction crew. Albanese Plumbing will be rigging sprinklers, heating and water pipes, T.U. Electric will be doing electrical and fan installations, and Bomak Contractors of Pennsylvania is the subcontractor for excavation, bedding and foundation work. Apparently Larry Fabbroni, the consulting architect, charges $90/hour for design work, while engineering/surveying is $107.50/hour.

102 and 116 comprise 42 units (24 and 18 units respectively), but if you’ve been reading the construction updates for the project, then you already knew that. The loan says both buildings have to be completed by August 15th, 2018.

7. Not a whole lot going on at the moment. Lansing town will be hosting a Planning Board to look at a telecommunications tower, and three new 1-acre home lots to be carved from a larger lot off East Shore Circle. The city’s project review meeting is so slim, they didn’t need to attach any files – just the old business with the Sophia House addition on the Knoll, and that’s it. The city Board of Public Works will be looking at plans for a new inclusive playground at Stewart Park.