The Tompkins County Housing Strategy

18 05 2017

The County’s Housing Strategy draft was originally going to be in the next news roundup, but it’s large enough to do separately, and my colleague Kelsey is tackling this meeting for the Voice. For those who couldn’t attend the Housing Strategy hosted by the county last Wednesday evening, the presentation is here and the outline is here. Comments can be sent to the Planning Department here from now through the end of the month.

First, quantities. This was touched on in the news round-up a couple of weeks ago, but the county would like at least 580 units coming online each year, plus specialty student and senior housing. For comparison’s sake, the county hasn’t exceeded that value since 1994, when Kendal was permitted in Cayuga Heights, and prior to 2016, the last time it exceeded 500 units was in 2000.

In more recent years, the value bounced between 200 and 300 units in a given year; during the recession, it dropped into the mid-100s. The article linked above is older, so it lacks the 2015 values, which were 279 units countywide, consistent with 2012-2014. Then we get to 2016, which was just finalized by HUD. There were 575 units, of which 121 were single-family homes, and 454 were multi-family structures. Let’s present that by community (click on the table to expand):

Cayuga Heights and Freeville didn’t approve a single unit, while the 271 units in Ithaca city is their highest stat since 2000, and the second highest in the 35-year online record. Dryden village’s growth can be attributed to Poet’s Landing Phase II, Ithaca town’s to Cayuga Meadows, and Lansing town’s to the Village Solars.

The point of this is to illustrate that 580 units annually is a lofty figure, but it is an attainable goal.

Then we get to locations. The ideal is to focus the growth in the city of Ithaca – since these stats are non-student housing, the targeted areas in the city include Downtown, the State Street Corridor, West End/Waterfront, and anything they can displace from the big box corridor on the southwest side. If a good opportunity for infill presents itself elsewhere in the city, that’s great, but it’s not the focus.

However, not everyone wants to live in Ithaca. Land in the “nodes” is cheaper and oftentimes the approvals process is easier. The county envisions 50-100 in the villages and growing hamlets like Varna and South Lansing, were a town center concept is in the RFP review process. Rural hamlets would see a handful of units annually (30 or less), and other locations basically just refers to Lansing’s suburban sprawl between the village and South Lansing. The town is hellbent on development any which way it happens, conventional approaches are the easiest to get financed, and the county’s not going to fight them.

The county’s housing strategy is three-pronged: Information/Collaboration, New Units and Existing Units.

  • Information and Collaboration includes a virtual housing office for resources and a collaborative network to formulate and pitch housing solutions. It’s kinda vague in the notes.
  • New unit strategies include support for targeted new development, streamlining zoning and examining potential incentives through the IDA.
    • Targeted new development can include RFQs for government-owned surplus property, early community engagement regarding DFAs (Development Focus Areas) and assistance in producing “shovel-ready” sites through things such as sewer access and energy hookups.
    • Streamlining zoning is to make it easier to get an initial product that will look like the final product – less uncertainty, less money spent on revisions. Inclusionary zoning seems pretty much dead in the water, as the county doesn’t seem to know if the community will support incentives for affordable housing, or if will even be effective. Done wrong, an inclusionary ordinance could actually result in less housing, if the burden is too great for the incentives offered.
    • Additional IDA incentives could include mixed-market or all-affordable rentals being eligible for abatements, and possible an abatement for any neighborhood or community who builds in inclusionary zoning. Looking at you, Trumansburg.
  • Existing unit strategies include the encouragement of rehabs (especially from rentals to owner-occupied), code enforcement and fair housing enforcement. Airbnb is still a tricky issue, so expect some tweaks to regulations on what constitutes rentals, hotels and legal occupancy.

There’s also a strong support/monitoring component in the strategy, which basically is a tracker of all projects underway, what stages, what they consist of, and so on. Beat you to the punch guys.





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

13 03 2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

 

 





News Tidbits 2/25/17: Creating a Place to Call Home

25 02 2017

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1. It looks like the homes designed for Tiny Timbers won’t just be limited to Tiny Timbers. The company has partnered with realtor Brent Katzmann for a to-be-built house in Lansing’s Farm Pond Circle housing development touts a Tiny Timbers-based home design by STREAM Collaborative. 1.09 acres and a 2 bed, 2 bath 1,430 SF house for $219,400. The relatively low price compared to most new builds is in part due to Tiny Timbers’ modular approach – the “Big Cube” retails for $156,900 with a finished basement, and the Farm Pond parcels go for $39k-$45k, so not counting the soft costs (permits/marketing), that pretty much sums up the costs.

Farm Pond Circle is a 19-lot subdivision in Lansing town that was the brainchild of the late Jack Jensen. All homes have to exceed state energy code by 20%, cannot exceed 2600 SF, and cannot use aluminum or vinyl siding. A couple lots have been aside for affordable single-family home construction. After Jensen’s passing in 2014, another local homebuilder, Bruno Schickel (Boiceville Cottages), picked up the undeveloped lots (10 of the 19) for about $165k last February, and intends to follow through on Jensen’s plans.

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2. Speaking of Tiny Timbers, it appears the budding modular timber-frame builder is expanding their offerings into a full line of homes. Tiny Timbers now has 16 different models in five series. Prices range from a completed 600 SF model with no basement at $109,900, to a 1,950 SF model with finished basement at $197,900, land and well/septic not included.

In a blog post on their website, Caleb Dolph, builder Buzz Dolph’s son and the guy in charge of marketing, says that the first sold house is underway in Hector (if Ithaca had exurban areas, Hector would be it), at least five others are in contract, though it’s not clear if any of those are for the 15-lot Varna site. Given that they planned for ten houses in 2017, the Tiny Timbers staff might have underestimated the market, which is more a fortunate challenge than a complaint.

3. A local non-profit is looking to expand its real estate footprint a little bit. Tompkins County Opportunities, Alternatives, and Resources (OAR) is seeking to buy a run-down house at 626 West Buffalo Street and renovate it 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 county would provide $100,000 in a one-time allotment – the house is for sale for $99,999, the purchase offer is for $95,000, and a further $60,000 would be spent on renovations. 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.

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4. Staying on the topic of special needs housing, the Second Wind Cottages is looking to add another three cottages in Newfield this year. The cottages are modest, ~200 SF and costing $12-$15k each to build. As reported by the Times’ Jaime Cone, every unit provides shelter to a formerly homeless male. Rents are “pay as you can”. A small community facility provides services like a kitchenette, office, washer and dryer. Three more cottages are planned for 2018, which will round out the “campus” with 18 units. A similar facility is planned up the road, one that will house homeless women and children. Although Newfield is a ways out, both sites are on the bus line into Ithaca.

The Second Wind Cottages are a private endeavor by businessman Carmen Guidi, and paid for through grants, fundraisers, and donations (money, furniture, etc). Volunteer labor similar to that used for Habitat for Humanity is utilized and welcomed. Like with the OAR house, by providing a safe, warm space to live, these units may help reduce homelessness and the issues homelessness creates.

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5. Work has yet to start on the new two-family home planned at 123 Eddy Street in Collegetown, but it looks like developer/landlord Nick Lambrou is seeking major changes to the project. Lambrou wants to replace the approved design at top, with the one below, which is copied from a Craigslist posting. The designs are both by Jagat Sharma, but the new plan is a variant of the two-family homes that Sharma’s doing for Charlie O’Connor at the recently-approved 4-building 607 South Aurora project.

The property falls into the East Hill Historic District, which is under the ILPC’s jurisdiction. According to Bryan McCracken, the city’s Historic Preservation Planner, the design will be heading for review within the next month or two.

The design has been used before so there’s familiarity with the design and lower risk, plus there are possible cost efficiencies if using the same contractors as O’Connor, because they’ll move quicker as they’ve done it before. On the other hand, unlike 607 South Aurora, this property is in the East Hill Historic District, and full-time neighbors on Orchard Place have been watching these plans very closely – they’re wary of students, and will likely not be fans of the projecting second-floor porch, as the previous version was tucked into the building. Not sure using a slightly more decorated version of a design being deployed elsewhere will get the ILPC’s blessing, but we’ll see what happens.

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6. Why yes, Lansing town is still hopping mad about the natural gas issue. The town supervisor cites the tap-out as the cause of delay for Robert Weinstein’s 102-unit Cayuga Farms project, although the previous documentation says it’s a sewer issue – the developer has to deploy an Orenco modular sewer system, which has to be approved by the NYS DEC.

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7. Here’s a copy of Maplewood’s buildout timeline. The first Maplewood apartments should start construction in May 2017, pending no issues. Generally, the crews will be working from the outside in; buildings closer to Maple Avenue and Mitchell Street have earlier construction schedules, while those interior to Maplewood will start in the fall or early winter. Also, street names. Veteran’s Place will continue to be the main thoroughfare, but from north to south, it will intersect with “James Lane”, “East Sylvan Mews”, and “Lena Street”. James Lane wraps around to form the secondary N-S thoroughface on the east side of the parcel. James and Lena Mitchell were the original owners of the property when Ithaca was first settled in the early 1800s.

The Stormwater Property Protection Plan (SWPPP) still needs to be okayed by the town of Ithaca, but that’s about the only thing left before final approval is granted.

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8. It looks like the Planning Board meeting should be interested. Not a whole lot being decided, but some sketch plans have been submitted. For rental projects aiming for August 2018 openings, Feb-Apr is going to be the primary submission period, as they seek approvals by May or June so that construction can run on a Summer 2017 – Summer 2018 schedule.
AGENDA ITEM Approx. Start Time
1.Agenda Review 6:00

2. Privilege of the Floor 6:01

3. Subdivision Review
A. Project: Minor Subdivision 6:10
Location: 109 Dearborn Place, Tax Parcel 9.-3-11
Applicant: Lee and Elizabeth Ambrose
Actions: Declaration of Lead Agency, Public Hearing, Determination of Environmental Significance, Recommendation to BZA

4.Site Plan Review
A. Project: Apartments (11 Units) 6:30
Location: 107 S Albany Street
Applicant: Stavros Stavropoulos
Actions: Declaration of Lead Agency, Public Hearing, Determination of Environmental Significance

B. Schwartz Plaza Redesign- Sketch Plan 6:50

More on that here.

C. 238 Linden Avenue – Townhomes – Sketch Plan 7:10

238 Linden is a non-historic student rental house, and a John Novarr property in a CR-4 zone – 4 floors, no parking required. Further to that, 240 Linden to its north was taken down for staging space for the Breazzano Center, but as that will be finishing up this Spring, it leaves an MU-2 (six floors, no parking) parcel open for development. A townhomes plan suggest one or both of these parcels will host something not unlike the ikon.5-designed townhouses plan Novarr plans to build at 119-125 College Avenue.

D. 372 Elmira Road – McDonalds Rebuild – Sketch Plan 7:30

If Ithaca’s lucky, it’ll have upscale features like the one finishing up in Dryden. Otherwise, a modern update to the 1980s design is plausible. A number of older McD’s restaurants nationwide have been upgraded to the new design in the past few years.

E. 301 Eddy Street – Student Apartments 7:50

This is intriguing. 301 Eddy is a Nick Lambrou property in an MU-2 zone – a four-story, 8-unit/37 bed apartment building built in 1995, and it’s also the address for Collegetown Park’s parking lot. One possibility is replacing part of the parking lot with another apartment building – Lambrou may push to six floors, but it’s not his style. He’s described his offerings as “boutique” buildings, properties with less than 20 units and 20-50 bedrooms. Recent examples include 2015’s 116 Catherine Street, and 2012’s 309 Eddy Street. If the past is any precedent, this will be a Jagat Sharma design.

5. Zoning Appeal: #3057, Area Variance, 109 Dearborn Place 8:10

6. Old/New Business: Special Meeting Chainworks District DGEIS – Transportation 8:20

7. Reports
A. Planning Board Chair (verbal) 8:30
B. Director of Planning & Development(verbal)
C. Board of Public Works Liaison (verbal)





Poet’s Landing Phase II Construction Update, 2/2017

23 02 2017

Poet’s Landing is moving along. Framing for the first eight-unit building is underway; the slab foundation has been poured for two more. The other four buildings in the 48-unit project will come along as the weather warms up – it’s possible that LeChase may have the sites cleared forms ready for the rest of the foundation pours, but they may be buried under the snow (this was the first place I visited last Saturday morning, so the unseasonable heat had yet to do its melting magic).

According to an article published just yesterday, Boston Capital has bought the Low Income Housing Tax Credits (LIHTCs) awarded to Conifer Realty to help finance the project. The Boston-based real estate investment firm paid $7.6 million. Boston Capital can apply those credits to the taxes on its holdings, and Conifer gets the money it needs to pay for hard and soft development costs (which total $10.8 million, the rest coming from federal/state grants and equity). Boston Capital is a frequent partner of Conifer, having bought their LIHTCs many times in the past, including those awarded to the 72-unit first phase of Poet’s Landing that opened a few years ago.

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Quoting Housingfinance.com, which also had the first actual render of the project shown above:

“Located on 10 acres, Poets Landing II will feature 16 one-bedroom, 24 two-bedroom, and eight three-bedroom units in six two-story buildings. Units will include central heating and air conditioning, dishwashers, patios/balconies, and storage. Residents at Poets Landing II will have access to the community amenities at Poets Landing I, which feature a leasing office, a great room, a computer workstation, a laundry center, and a playground. The apartments will be available to families earning 60% or less of the area median income.”

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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.





News Tidbits 1/28/17: Helping You Avoid Politics For Five Minutes

28 01 2017

1. Looking at sales, it looks like there were a couple of big ones this week in the Ithaca area. The first was on Friday the 20th, where 402-04 Eddy Street was sold for $913,000. The buyer was an LLC tied to Charles and Heather Tallman, who own several properties in Collegetown. The $913k price is above the 2015 assessment of $880k, but below the 2016 $1 million assessment. The Tallman historically have not been the kind to redevelop property, and the three-story mixed-use building is part of the East Hill Historic District, so don’t expect any big changes.

The next two were on Wednesday the 25th – Parkside Gardens on the Southside at 202 Fair Street, and Lakeside (Grandview Court) on South Hill, were sold for a whopping $10,450,000 from a Long Island landlord (Arbor Hill Homes) to an LLC based out of Delaware. Parkside has 51 units and was built in the 1950s, and is assessed at $2 million. It sold for $4.2 million, about double what the $2.145 million the owner paid in 2007. Lakeside has 58 units and was built in the 1970s. It is assessed at $2.8 million, the previous owner paid $2.58 million in 2007, and just sold it for $6.25 million.

Up until 2014, they accepted housing vouchers, but according to an email from the IURA’s Nels Bohn, The Learning Web handled the vouchers and the IURA has nothing about the complexes on file after 2014. It might be a case similar to Ithaca East, where the affordable housing lease period ran out and the owner converted to market rate. The Voice tried to do a story on it in Fall 2015, but it went nowhere, and then again in January 2016, and it went nowhere. I did research but Jeff and Mike were going to be the respective writers. Here are my notes from September 21, 2015:

The two complexes were recently offered for sale, but the listing was deactivated. According to 2011 IURA minutes, the owner is kind of a sleazeball, uses them as an investment property but doesn’t do maintenance. Another company (Rochester-based Pathstone, they’ve done work with INHS) considered buying Parkside in 2011/12, but backed out when problems arose.

One could argue that the two complexes had a shady owner who just cashed out big. The buyer can be traced through its unique name to a Baltimore company called Hopkins Holding, and a LinkedIn profile of a partner in the company saying their specialty is student housing. At the high price paid for Lakeside, I could easily see a redevelopment happening, though I’m not as certain about Parkside’s future.

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2. There were also a couple of construction loans filed this week. Tompkins Trust lent Collegetown Crossing $500,000 according to a filing on the 23rd, but the type of work is unspecified in the county docs. Tompkins Trust also lent INHS $1,581,796 in a separate filing on the 23rd, to finance the seven for-sale townhouses underway at 202 Hancock Street in Northside, part of the 210 Hancock affordable housing project.

3. A few weeks ago, the pending sale of the former Phoenix Books barn at 1610 Dryden Road came up. Now we what the plans are. It appears a local businessman wants to renovate the barn and use it for automotive trailer sales. The plan requires a special use permit from the town because it’s a residential zone, and the project is seeking a landscaping outdoor area to showcase trailers for sale. It doesn’t read as if the barn itself will be greatly altered in appearance, although its structural stability is in question, so it will need its north wall shored up, and roof repaired so that rainwater stops pouring into the basement. The town will be going through the project over the next couple of months, but there don’t appear to be any big obstacles that will prevent a permit from being issued.

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4. For the sake of acknowledgement, the ILPC approved of Jason Fane’s renovation plans for the Masonic Temple. There was a little back-and-forth about window replacements, and they made sure to note that the “for rent” signage was not grandfathered and would have to come down once the three commercial spaces are rented out, and the signage would not be allowed to go back up even if the spaces were vacated at a later date. The ILPC also seems inclined towards a historic district on the north edge of Collegetown along Oak Avenue and Cascadilla Place, but that still has yet to take form.

5. Out in the towns and villages, there isn’t anything too exciting on the agenda. Cayuga Heights had a one-lot subdivision for a new home site at 1010 Triphammer for their latest meeting. The town of Dryden had a 5-lot subdivision off of 1624 Ellis Hollow Road, and a 7-lot subdivision at the former Dryden Lake Golf Course.Dryden also received the sketch plan for the 12 Megawatt solar array planned by Distributed Solar at 2150 Dryden Road (12 MW is enough for ~2400 homes). Ulysses had to review a special permit for turning a nursery business into a bakery/residence, and a 2 Megawatt array at the rear of 1574 Trumansburg Road. The town of Lansing had a meeting scheduled, but nothing was ever put online, nor was there a cancellation notice.

6. The townhouses at 902 Dryden are starting to rise up. Visum Development’s facebook page notes that the foundations for all structures are complete, and framing is underway; you can see roof trusses on the right of the photo. Looks like a typical wood frame with Huber ZIP sheathing, which has become the popular (and arguably more effective) alternative to traditional plywood and housewrap. According to the hashtag overkill, the 8-unit, 26-bed housing plan is still on track for an August 2017 occupancy.

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7. Quick wrap up, we now have addresses for the two-family homes going up on Old Elmira Road. They will be 125 Elmira Road and 129 Elmira Road. This means the end of the awkward Spencer Road/Old Elmira Road disclaimer in the next (and probably last) update in March, although for the sake of continuity the title of the post won’t change – continuity was the same reason 210 Hancock was co-tagged with neighborhood pride site for about a year. Just trying to make it easier to follow along.





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

20 01 2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

1. Agenda Review              6:00

2. Privilege of the Floor    6:01

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

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

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

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

F. 107 S Albany St – Sketch Plan 8:10

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

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

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

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

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