News Tidbits 4/9/19

10 04 2019

1. Something to keep an eye on for potential future retail or hotel development – a pair of properties up for sale along the Elmira Street commercial corridor in the city of Ithaca. 363 Elmira Road is the former Aaron’s rent-to-own (which was a rather dubious enterprise, but I digress). After eleven years, they’ve called it quits and the site’s available for sale or lease from the Lama family of realtors. For $950,000, the buyer gets a 5,892 SF 1960s retail building and a 3,000 SF storage barn on 0.77 acres. The assessment is a more modest $525,000. This is probably too small for a hotel, but food retail or small box retail could make do here.

A little further down the road is the former Cold Stone / Tim Horton’s, which only survived a few years before the Syracuse franchisee threw in the towel on a dozen locations with hardly any notice back in November 2015. The property would later be bought by a suburban chain hotel developer out of Corning, Visions Hotels. The property for sale at 405 Elmira Road is the vacant lot next door, which is owned by the former owners of the Buttermilk Falls Plaza. For some reason, even though the plaza was sold over fifteen years ago, they held onto this 0.74 acre lot, and it was used for extra parking. The price is $465,000. The former Tim Horton’s is arguably too small for a standard chain hotel (60-80 rooms + parking), but if combined with this lot, development becomes much more plausible for Visions. Or, someone else may buy it for food-based or small box retail.

Both 363 Elmira and 405 Elmira are in Ithaca’s SW-2 zoning, which in practice is the city’s catch-all for suburban strip and auto-centric development. Residential would be unusual but legal. Zoning allows 5 floors and 60% lot coverage, though normally the development pattern is towards gobs of surface parking. Should some sales happen down this way, there will be an update.

2. We’ll stick to the real estate sales for the time being – INHS bought a small 0.11 acre vacant lot in Ithaca’s Southside neighborhood last week, and chances are, it’ll be the next standalone for-sale single-family home. The previous owners had used 511 South Plain Street as a double-lot, which came with their home next door when they purchased it in 1986. INHS paid $65,000 for the lot, which is a tidy return for a property assessed at $38,500, and above the asking price of $59,000, which is not uncommon in Ithaca’s rapidly appreciating inner residential neighborhoods. In this case, INHS is likely to do an appropriately-scaled (1100-1400 SF) home for sale to a lower middle-income family making 80-90% of area median income. Seems like a win for the neighborhood, given concerns about gentrification and appropriate development. Expect home plans to come out in the next year or two.

3. So 511 South Plain Street will likely be an example of small infill development, a development of modest scale on what’s currently a vacant lot. Small infill is a way of adding density and addressing some of the area’s housing issues in a way that is less jarring and more accessible to existing homeowners and local landlords. With that in mind, the Tompkins County Department of Planning and Sustainability will be hosting a workshop at the Tompkins County Public Library on Wednesday the 24th at 5 PM on Infill and Small-scale Development. The presentation by the Incremental Development Alliance is for those who are interested to learn about small-scale development and infill, explore ways to design laws to encourage infill with robust and easy-to-understand zoning and design codes, and give education and advice to those who might be interested in being developers of small-scale additions to the community fabric. Think less City Centre and more like 1001 North Aurora or Perdita Flats. It’s a free event, no need to RSVP, and video will be posted online afterward.

4. If you ever wanted to look at the nuts and bolts of a real estate development project, local businessman Gary Sloan has but made practically all of the financial figures available for his stalled 1061 Dryden Road project in the hamlet of Varna. The 36-unit, 84-bedroom project has been for sale for a while now, and has been reduced slightly in sale price, to $1.95 million. Based on these documents, it looks like the CAP rate is 6.25%.

CAP rate, or capitalization rate, is a measure to evaluate the potential return on investment for a real estate developer. It’s basically Net Operating Income divided by Property Asset Value (in 1061 Dryden’s case, the NOI is $824,167, and the PAV for the finished project is $13,190,000). For example, if I make $50,000 a year in net operating income on a $1 million property, my cap rate is 5%. In general terms, higher cap rates mean high potential return, but are generally seen as indices of higher risk projects as well.

However, because different markets have different risks and amounts of risks, what is an acceptable cap rate in one area may not work in another. For office space for example, a cap rate of 3-4% in Los Angeles or New York would be sufficient, but for Phoenix it’s 6%, and Memphis 8%, because the stability and growth of the market isn’t as great. Also, CAP rates for multi-family properties are generally among the lowest in asset classes because they’re often the most stable. So CAP rate is a valuable indicator, but it doesn’t tell the whole story.

The rumor mill says that some local developers have checked the plans out, but no one’s put in any offers to buy. The project comes with a Danter housing report and an analysis of Cornell University enrollment growth, clear nods towards both the potential as general market housing and student housing. But for the time being, the future of this project remains up in the air.

5. As covered previously, the city of Ithaca is looking to do a parking study to figure out how much it needs over the next ten years, and ways to mitigate some of that growth in need. The Ithaca Times’ Edwin Viera has their take, and there are a couple of details worth noting – any work on the Seneca Garage will wait until the Green Street Garage Development is complete, frankly because Downtown Ithaca cannot handle both garages being out of operation at the same time. That would mean a late 2021 or early 2022 reconstruction or redevelopment of the Seneca Street Garage at the earliest.

An RFEI to gauge redevelopment interest among private developers will go out in the next six months, and from there the process would be similar to Green Street – see what comes back after a few months, host meetings for Q&A and public input, score plans and declare a preferred developer (if any) before jumping into negotiations and any potential sales or usage agreements. We’d be well into the 2020 timeframe for any preferred developer decisions, which comes before negotiation and planning board review. There likely won’t be that much time between approvals being granted and construction because the process will take a long time to go through. Some early ideas being floated in a rebuild are a ground-level bus depot, or street-level retail to make for a more active pedestrian experience. This is a long-term project, but the RFEI could be an interesting read when it comes out later this year.

OLD RENDER

NEW RENDER

6. Ithaca Neighborhood Housing Services is considering a tweak to its plans for the Immaculate Conception school property. The biggest change would be that the two family house on the corner of West Buffalo and North Plain Streets would come down and be replaced with three townhomes – this is not set in stone, but intended to show a plausible “maximum density” option. The two single-family units on North Plain are replaced with a string of four townhomes as well. In short, the density plan creates three more affordable units, for a range is 78-83 units total. The range is because the commercial space in the school may either be 6,024 SF and 83 units, or 11,372 SF and 78 units, depending on demand. In either case, there will be 55 parking spaces internally and 37 on the street.

According to the Planned Unit Development Overlay District (PUD-OD) Application, the project would create 1.5 jobs directly in property management/maintenance, and will pursue a Payment in Lieu of Taxes (PILOT) agreement for the property, which is currently tax-exempt. A similar PILOT was used with 210 Hancock. The $25.3 million project would be complete by the end of 2021 – the rest of the filing is the same as the writeup on the Voice here.

7. It might be a bit petty to point this out, but the Common Council’s Planning and Economic Development Committee (PEDC) will be looking at giving their approval to some new murals, and as everything seems to do in Ithaca, two of the three have drawn negative attention. The Dryden Garage aikido mural received complaints that it promoted violence, while the sea life mural for the Seneca garage received complaints that the eel was off-putting, creepy and not appropriate because it wasn’t a native species. For the record, the third was an electrical box with a giraffe pattern, which a couple people called boring, but otherwise no one was upset about it.

Anyway, the PEDC is used to criticism of every flavor, and in the big picture, these are small complaints. Expect them to sign off, send to council for customary approval, and then look forward to the new art later this year.

8. The Common Council is expected to adopt the Findings Statement for the Chain Works District next month, which would be a big step towards approval of the project. A Findings Statement says that the plan is designed with reasonable mitigations acceptable to the city as representatives of public stakeholders, and it isn’t project approval, but it’s essentially an okay to begin applying for approval.

As part of the development process to obtain a PUD, Chain Works will need to submit at least one phase of firm development plans, and UnChained Properties LLC intends to submit Phase 1 of redevelopment to the Planning Board within the next month. Assuming it hasn’t changed, Phase 1 consists of the redevelopment of four existing buildings. Buildings 33 and 34 would be renovated for light industrial uses, Building 21 will be modernized for commercial office space, and Building 24 becomes a mix of office space and 70-80 apartments. Given that it’s been over five years since the project first made news, it feel a bit anti-climatic at this very late stage, but let’s be optimistic that a vacant, contaminated site may be brought back to safe, productive use.

 





News Tidbits 6/23/2018

23 06 2018

1. The Town of Dryden has rejected the Planning Board’s suggestion for a Varna moratorium. The vote was 3-1, with one absent. This means that Trinitas may continue with the project review process – it does not mean Trinitas will automatically be able to build their proposal as currently drawn up, since planning board review, town board approval (Special Use Permit) and zoning board approval are still required.

Unfortunately no members of the press were present at the meeting – I found out through reader email. Most were covering the Democratic Party NY-23 candidate forum, and the first mention of the moratorium vote online was in the uploaded board agenda that went up just a day earlier.

Image courtesy of the Lansing Star

2. When I first broke the Lansing Senior Cottages story for the Voice, there was something I was concerned would happen, but didn’t include in the write-up, because speculating gets me in trouble. But these are homes looking at middle-class seniors, placed next to $500,000-$700,000 homes. The residents of those luxury homes aren’t happy, as reported by Dan Veaner at the Lansing Star.

They’re angry, which is fair in the perspective that when the property was plated, there was no sewer available here, and the plan was to keep it all high-end 2500+ square-foot homes. But the owner/developer of the land is selling off the future phases without any of the old covenants in place, meaning it’s subject to standard village zoning. 800-1200 SF cottages for seniors, some of which may potentially be for sale, is a welcome proposal to the eyes of the county. It seems unlikely this is going to hurt their home values; this is mid-market senior housing, not college student apartments (the only beer on the front lawn you’re going to see is if developer Beer Properties puts up signage). Plus, if you’re going to poll public opinion on this one, wealthy homeowners vs. middle-class seniors is not going to engender support for the homeowners. They could try a lawsuit against the landowner, but I’m doubtful it’s much of a case unless their covenants explicitly said what the undeveloped land would be used for.

The project is currently 107 units over multiple phases, about twenty more than allowed by zoning as-of-right, so it will need to go through a PDA with the village Board of Trustees’ consent, and Planning Board approval.

3. The Crossroads Life Center planned for the 100 Block of Lansing’s Graham Road is no longer alive. The project, which called for a meeting and retreat space to be owned and maintained by the Cornell International Christian Fellowship, fell through, and the land it was proposed for is once again up for sale. The 9.35 acre property (about 3-4 acres were to have been subdivided for the project) is for sale for $239,000. A couple half-acre home lots could be easily subdivided off along Dart Drive, but further development would have to address an old family cemetery towards the rear of the property. Zoning is medium density residential. Maximum buildout without special planned development area (PDA) rules is about 20 units under the village’s Medium Density Residential zoning.

4. Speaking of land for sale in Lansing, Cornell is actively marketing the remaining vacant parcels in its Business Park. Most of the park was built out in the 1980s and 1990s, with only a few building additions in recent years. A 5-acre parcel is available between 20 and 33 Thornwood (foreground in the aerial) for $63,000, and a 22-acre parcel is available for $276,000 (it may be subdivided further), and a 6.89 acre parcel next to airport is available for $86,500.  Lansing zoning doesn’t allow housing here, and so a commercial or industrial project will need to deal with the gas moratorium. A run-of-the-mill office building might be able to make the finances work, but an industrial or lab building with high energy needs is probably is out of the question until some gas is freed up (i.e. the airport renovation), or energy alternatives become more cost efficient.  The county is working on financing a Business Energy Navigator Program to help interested businesses determine their needs and options. Should something happen up here, look for an update.

5. The town of Ithaca is looking at expanding their Public Works Facility at 106 Seven Mile Drive “to better accommodate [their] growing employee base”, and is doing a feasiblity study to see how much and what costs they can expect. The study would be conducted by HOLT Architects with several engineering and landscaping partners (the usual retinue of T. G. Miller (Civil Engineering), Elwyn Palmer (Structural Engineering), TWMLA Landscape Architects, and a mechanical/electrical engineering firm, Sack Associates), and is projected to cost about $21k for all parties. The town board will vote to authorize the study next Tuesday.

6. The good news for the county was that the state gave Milton Meadows a big grant to move forward. The bad news is, they were hoping for three grants, the others for NRP’s Ithaca Townhouses and Lakeview’s West End Heights (709-713 West Court Street). The county is trying to find other funding streams with which to get these affordable housing projects to move forward this year.

The Ithaca Townhomes would add 106 units in two phases near Cayuga Medical Center. West End Heights would add 60 units, including units for those with special mental health needs, and units for those currently experiencing homelessness.

7. Not a big city planning board agenda meeting this month, but still some interesting details. Here’s the rundown.

1. Agenda Review 6:00
2. Privilege of the Floor 6:01

3. Subdivision Review

A. Project: Minor Subdivision 6:15
Location: 508-512 Edgewood Place
Actions: PUBLIC HEARING – Potential Determination of Environmental Significance – Potential consideration of Preliminary and Final Approval

This subdivision at the end of a private street in the East Hill neighborhood would re-subdivide a double lot that had been consolidated after the original house burnt down in the late 1930s. Any news structure on the newly created .326 acre lot would be subject to Ithaca Landmarks Preservation Commission design review. No specific plans are on file.

B. Project: Minor Subdivision 6:30
Location: 101 Pier Road
Actions: PUBLIC HEARING – Determination of Environmental Significance – Potential consideration of Preliminary and Final Approval

This subdivision is to partition out the square of land Guthrie Clinic would be using for their new medical office building as part of the City Harbor development – they want to own their own building and parcel.

4. Site Plan Review

A. Project: Major Subdivision (3 Lots), Two Duplexes, One Single Family Home & Site Improvements 6:45
Location: 128 West Falls Street
Applicant: Ron Ronsvalle
Actions: PUBLIC HEARING – Consideration of Preliminary Subdivision Approval – Recommendation to BZA

This project came up earlier this month in a previous news roundup – a five-unit infill project in Fall Creek, originally approved in February 2015, and revived now that the developer has found a way to continue working after a debilitating accident. Don’t foresee any issues here.

B. Project: GreenStar Cooperative Market 7:15
Location: 750-770 Cascadilla Street
Applicant: Noah Demarest for the Guthrie Clinic (Guthrie owns the land)
Actions: Consideration of Preliminary and Final Site Plan Approval

Since the last round, plantings were added, the lighting and front entrance was revised, and the project team is in discussions with the gas station next door to add planting and landscaping there as well.

C. Project: Apartments (60 units) 7:35
Location: 232-236 Dryden Road
Applicant: STREAM Collaborative for Visum Development Group
Actions: Consideration of Approval of Revised Transportation Demand Management Plan

“The applicant has revised the site plan such that the previously proposed off-site parking is no longer included in the project and has updated the TDMP narrative to reflect this.”
D. 327 W Seneca St- Housing 7:45
The new shiny. 327 West Seneca is a B-2d-zoned property on the edge of the State Street Corridor – B-2d allows multi-family housing up to 4 floors and 40 feet with 75% lot coverage. It is currently a nondescript 3-unit apartment building, that’s been for-sale for almost a year now (asking price $264,900).
A cursory search of LLC filings finds 327 W. Seneca LLC was recently registered in Tompkins County, and the address it is registered to, is the business office of Todd Fox, CEO of Visum Development Group. This may be the project alluded to in the New York Main Street grant to be written by the Downtown Ithaca Alliance, which talks about a 12-unit project by Visum planned somewhere in the State Street Corridor. No guarantees, but this seems likely to be that project.
5. Zoning Appeals 8:10
#3099, 314 Taylor St, Special Permit
#3100, 128 Falls St., Area Variance
#3101, 437 N Aurora St, Area Variance




News Tidbits 6/10/2018

11 06 2018

1. For those of you looking out for something interesting next week, here’s your notice. In the village of Lansing Monday night, a sketch plan is set to be shown involving a cluster home development on the remaining phases of the Millcroft property, about 40 acres off of Millcroft Lane and Craft Road. According to the agenda, the proposal comes from Ithaca-based landlord/developer Beer Properties in partnership with Hunt Engineers.

The back story here is that the Millcroft subdivision was approved in the mid 2000s as a three-phase, 31-lot development for high-end ($500k+ homes). As it turns out, the market for that, absent lake views and on relatively small lots, isn’t so great. The Great Recession didn’t help either. The first phase of 14 lots is mostly built out, and the second phase was approved and shows up on town maps, but no construction has taken place. The village has been aware of a project in the works since at least February.

Unfortunately, I can’t seem to find the property listing for the land, which was on Zillow for quite a while – I recall a figure around $850-$950k. The property falls in the village’s medium density residential zone, Cluster zoning means the lots themselves are smaller to preserve natural space. However, the maximum number of units is the same as maximum allowed by regular zoning – 40 acres in sewered Lansing village MDR means up to 87 units, if I’m doing the math right. Not sure if single-family, townhome or otherwise, so keep an eye out for a follow-up.

2. For sale, 15.31 acres off of Wellsley Drive in the village of Dryden. Sewered, watered, and originally planned for 36 homes but never approved. Price of the land $149,900.

Here’s maybe the more interesting part – this borders Maple Ridge. Maple Ridge’s first phase is built out, and the developer, Paul Simonet, would like to build the roads and lay out phase two (and eventually phase three). However, the village’s issue is that there’s only one entry and exit into the development – something they’ve been hesitant to sign off on because of possible safety/access issues.

Now, this may have already been resolved – the village of Dryden has only updated their website twice since February, with legal paperwork for keeping fowl – but if not, there’s the option of buying the Wellsley Drive property and routing a road through there. Maybe $150k plus the extra road work isn’t in Simonet’s price range, but it’s at least an option.

3. The village of Trumansburg commissioned an independent study from Camoin Associates (the same folks who did the Airport Business Park study) looking at the financial impacts of 46 South (formerly Hamilton Square) on the village. I’ve been told this wasn’t public yet, but it’s on the village’s planning board webpage, so I dunno about that.

Quick refresher: 73 units. 56 affordable, 17 market-rate. 6 affordable rental townhomes, 40 apartments, 10 affordable for-sale townhomes, and 17 market-rate units, single-family and townhome style. 140 residents at full buildout in 2023, assuming one per bedroom.

Here’s the TL;DR on the finances. The net income to the village itself is -$23,757/year when fully built out. The unfortunate truth of residential development is that, frankly, people have needs. They use roads, they call police and fire, they use municipal power lines and water pipes and sewer mains. It is not offset by the village’s share of property taxes, here in this mixed-income example, or in the vast majority of cases. This is a reason to advocate housing density, because the impacts on, say, building new roads or infrastructure is often less per unit.

On the flip side, the school district, which makes up a greater share of the property taxes, sees a net increase of $97,669/year when fully built. Tax revenue more than offsets the expenditure of approximately 33 new students. Not everyone living in has a child, but everyone pays school taxes. This money not only helps the district, the incoming students help ameliorate concerns that declining enrollment may soon lead to consolidation with a neighboring district.

Economic impacts can be broken down into three components – the construction jobs, long-term operation/maintenance, and growth induced by the new residents, who will not just live locally, they will also shop, dine and spend money in the village. There will be an estimated $18.17 million spent on construction, $1.45 million will be spent within the County, creating 20 construction job-years in total (note there are multiple guys on site once, the project is expected to be fully complete within five years), and nearly $695,000 in total earnings. Operation/maintenance in perpetuity creates the equivalent of two jobs, creating $60,732 in earnings and $229,782 in sales. The households will spend nearly $1.7 million yearly within the County, which will support 20 total jobs with over $676,500 in earnings per year. In other words, $2 million spent in the county, 22 jobs and $737,500 in net new earnings from having those 140 more residents in the village.

By the way, if one was inclined to read 289 pages of public comments about 46 South, that can be found here. The project will be discussed at the village board’s meeting Monday evening.

4. Let me note this before I forget again – Park Grove’s Bomax Drive Apartments have started construction. The first two strings of 10-unit, three-bedroom townhomes are expected to be completed by Spring 2019. I’ll make a site visit soon for a longer write-up.

5. Meanwhile, the Triphammer Row townhomes are on pause until the road situation gets worked out. The village won’t sign off on using M&T Bank’s parking lot as an entry route, and the Sevanna Park condos don’t want to allow access to the 15 units through their private road. As a result, the village is seeking to have the road turned over to them, in part to encourage this for-sale plan, and in part because will ownership of the entry road to Sevanna Park will allow them to install better curb cuts and traffic control.

6. Here’s a for-sale property with some small-scale redevelopment potential, this one in the city of Ithaca. A dilapidated house is for sale at 815-17 North Aurora Street in Fall Creek. thanks to unsympathetic additions, the historic value is marginal. A buyer could restore it, or if interested, since it’s a double-lot, they could split the lot in two and do a two-family home on each property. Given other recent projects in the area such as 202 and 204 Queen Street and 128 West Falls Street, it appears to be an opportunity to do some modest densification keeping with Fall Creek’s fabric without upsetting the community too much in the process. The property is for sale for $269,000.

7 Let’s tie this up with something intriguing. Next week, the city’s Planning and Economic Development Committee is being asked to support a grant application by the Downtown Ithaca Alliance to the New York Main Street (NYMS) grant program. They are seeking $322,500 from the state to leverage work on four downtown projects – a commercial project in the Clinton House, a commercial project in the Boardman House, a “commercial and housing project” at 108 West State Street (the Ithaca Agency Building), and a 12-unit development by Visum Development in the West State Street Corridor. Any rehabbed housing units will be required to be 90% area median income for at least five years, but I dunno if either housing plan has existing units, I think the Ithaca Agency Building was all office space. STREAM Collaborative just moved into the second floor, so they would know best.

Quick postscript here – there’s nothing but an outline according to the DIA’s Gary Ferguson, so no Voice writeups for a while yet.