News Tidbits 1/20/18: Here We Go Again

20 01 2018

1. It looks like Cayuga Orchard will be moving forward this spring. At the moment, the 102-unit apartment project is going up for a few tweaks to the town of Lansing planning board, mainly just to get approvals for a pair of monument signs. Whitham Planning and Design is handling those last details. The project already went out for construction bids, and with a cost estimated at $25 million, which will surely help Lansing’s bottom line. With no tax abatements, and about $26.50/$1,000 assessed, the back-of-the-envelope suggests about $660,000 in taxes (however, using the hard costs alone is likely low-balling the tax assessment). The project is able to move forward thanks to a plan to pay for a sewer line extension to meet the needs of residents; the plans had long been held up by issues and red tape regarding a modular on-site sewer treatment system.

On the site plan, from left to right, are three roads – to be named “Harvest Drive”, “Blossom Road” and “Liberty Lane”. Positive connotations as most are, except one case I know – here’s a story of a downstate project where the Staten Island borough president used his right to rename roads to give a project names meaning deceit and greed. Liberty Lane is designed to be extended for whenever local developer Jack Young decides to go ahead with his 117-unit “English Village” single-family home and townhouse project on the 100-acre property to the west of Cayuga Orchards. Right now, Young’s focus is on a few home lots he’s subdividing on East Shore Circle.

The housing is intended to be rentals in the upper-middle (premium) market, and the 26 1-bedroom and 76 2-bedroom units are welcome in a community with a tight housing supply. As for the design…meh. It’s not terrible, but the dispersed home strings and front-facing garages over-emphasize suburban aesthetics (nothing against Stampfl Associates, they actually have some neat projects). Look for the first units to come onto the market in Spring 2019.

2. For sale, another chunk of Ithaca’s near-waterfront. 798 Cascadilla is a 18,271 SF one-story flexible office space building that was renovated in the 2000s, and is home to Palisade Corporation, a software firm specializing in decision making/risk analysis tools. Palisade is doing just fine, but this is a case where they might be sniffing out an opportunity.

Consider the location. It’s next to Carpenter Business Park, which was just picked up by a team of businesses led by Cayuga Medical Center and Park Grove Realty, ultimately expected to be a large mixed-use development. That purchase was $10 million on a property that had sold for just $2.7 million less than two years earlier; a bidding war drove the purchase sky high. Next door, Guthrie Clinic picked up Palisade’s neighbors, a storage facility and a former printing press/warehouse of Cornell University, for $2.85 million, $150,000 over asking price. Paying at full or above asking price is pretty rare for commercial real estate in Ithaca. Guthrie has recently been in talks with Greenstar Co-Op to convert the storage facility into a new grocery store and cafe. In the City Harbor plans, where Guthrie and Greenstar are involved, there have been some site plan concerns note around issues like parking, that a purchase here could help solve.

Zoning on the site is newly-minted “Market District”. Hotels, restaurants, retail, housing, healthcare facilities, food production facilities, and housing. Up to five floors/63 feet, 100% lot coverage. But honestly, given the recent PUD-OD proposal, zoning regulations are not the end-all, be-all; if someone wants to try for an additional floor by throwing in a few affordable housing units, they could. Not saying that’s a great idea, but they could.

If I had to take a guess, Palisade is feeling out the market and seeing what kind of deal they can get for their building. It was an unusual choice of locations when they bought it in 2004, but they might make a tidy sum for being in the right place at the right time. Maybe.

The asking price for 798 Cascadilla is $2.7 million. The tax assessment is for $2 million. Pyramid’s David Huckle is the sales agent in charge.

3. A long time ago, back in 2009, a West Hill property was talked of as a potential development site. Now that property has exchanged hands. For the moment, its future is still fairly murky.

Kaderli Trade, a Panamanian business with Swiss ownership has owned a 68.5 parcel of land just west of Warren Place since 1977. The property is vacant, and assessed at $320,000. It just sold on Thursday to the Rancich Family for $360,000, a modest gain, and a pretty good price for vacant land.

The Ranciches are probably best known for being the original planners of the Enfield Wind Farm, and for Carrowmoor, a mixed-use project that would have had retail space, office space and up to 400 units in clustered housing on a 158-acre parcel just northwest of Kaderli’s parcel. The motif was a traditional English village. Buildings would have aesthetic half-timbers and gable roofs. It would have used alternative energy (heat pumps were practically unheard of at the time) and been priced mid-market for for-sale units. However, this was 2008-09, the recession was biting hard, and Carrowmoor never moved beyond the drawing board. Most of the renders have disappeared, but I still have one from 2009, before I knew how to crop screenshots. Less known but still important, the Ranciches also played a role in the development of the Conifer Linderman Creek affordable housing.

If someone were to ask what the development likelihood were based on the above information, it would get a shrug from me. The Ranciches haven’t had much success, but this purchase suggests they have some sort of interest, and the location is one the town has noted for potential development – existing zoning is Medium Density Residential, and the 2014 Comprehensive Plan plans traditional/new urban design medium density. That’s T3-T5 for the New Urban transect buffs, averaging 5-8 units/acre by the town’s count. It’s close enough to the municipal water that new pump stations and tanks wouldn’t necessarily be needed. In sum, the town would be open to something substantial. But who knows.

4. 46 South Street, this Claudia Brenner/INHS mixed-income mixed-use project in Trumansburg (Hamilton Square is no longer the official name) continues to go through the boards. My Voice colleague Kelsey O’Connor covered the Planning Board meeting on Thursday, where about ten people spoke for an against the proposal. It’s probably better that she cover 46 South, because I would find it hard to maintain impartiality.

On the one hand, there is the opposition. The “Trumansburg Neighbors Alliance (TBNA)” turned in a Change.org petition with 492 signatures, along with paper petitions they say brings the number up to 669. They say 432 are in Trumansburg, Ulysses, or the Trumansburg school district, which includes large sections of Schuyler County and Seneca County. From their Facebook page, they don’t have accurate numbers.

At this time, there are actively trying to re-impose a village-wide moratorium after the previous decade-long moratorium expired. The zoning was revised in 2012 and re-analyzed in 2016. The South Street housing fits its zoning.

There are plenty of others who have already spoken in favor of this proposal – the Lansing Star has had a harsh word for the opposition, and some residents in Trumansburg are speaking out in favor of the South Street housing.

Let’s go through some of the fallacies with the opposition’s issues:

Too many rental units, not home ownership, out of balance and character with the neighborhood .

46 of the 73 units are affordable (LMI) rentals – most (40 of 46) are in the two story building in the middle of the property. Here’s the thing with lower-moderate income families; a lot of folks are getting by paycheck-to-paycheck. They don’t have the money for a 15% or 20% down payment on a house, for which the median sales price in Trumansburg in 2017 was $255,000, up 38% from the $184,500 in 2012. Thankfully, groups like INHS will work to cover the down payment and sell homes to LMI buyers well below market-rate, like the townhouses on Hancock going in the $110-$145k range, about half of the market rate for a new townhouse in Ithaca.

However, funding for purchasable units is much more difficult to get. A bank isn’t going to fund a plan that doesn’t generate a good profit, so they have to turn to state and federal funds. The government is more likely to disburse a grant if it knows there are buyers waiting in the wings. And for low and moderate-income households, far more are capable of renting versus buying. In short, this argument boils down to ‘these people are too poor to live in our village’.

Does not fit ‘village character’ and 2008 Village Comprehensive Plan priorities

Character is always a bad argument to give a planning board; it overly relies on demographic perceptions, which include details like age, income and race. The 2008 Comp Plan notes historic buildings, non cookie-cutter design, and tree-lined streets. Homes are 1-3 floors. Well-designed multi-family buildings that fit the village fabric, especially those with design features friendly to seniors, were encouraged. Affordable housing is strongly encouraged.

Below are some of the building elevations, pulled from the submission here. Let’s gauge based off the Comp Plan statements – there are no historic buildings on site, it’s vacant land surrounded by housing of varying ages. Designs incorporate porches, gables, bracketed eaves, dormers and other features of Trumansburg’s older housing stock. They are generally two floors. There will be several townhouse and single-family home designs interspersed throughout the site.

At 40 units, the apartment building is not unlike the existing Juniper Manor; as with other INHS projects like Breckenridge Place and 210 Hancock, many of these units are expected to rent to seniors – about 60% of Breckenridge is seniors, and although I don’t have stats for 210, I’d say it’s a generous percentage. The project is 72 units, 140 residents, over a 19.12 acre parcel. That is 3.77 units/acre, 7.3 residents/acre. That is less dense than the older part of the village.  Even the Tamarack/Larchmont housing, which is one of the areas of strongest opposition, has about 2.5 units and 7-9 residents per acre.

So density’s in line, it has affordability within a mixed-income layout, the apartments are senior-friendly and designed to blend in; it meets the goals of the Comprehensive Plan.

The developers did not ask residents how best to fulfill Village needs…they just decided!

No, they didn’t. Remember the community meetings to get ideas and feedback last July? The August listening sessions? The major plan revisions in response to community concerns? They’ve been listening.

Now that we have that covered, let’s take a look at some of the comments from the folks who are opposed:

From the petition:

“…we do not have the police to keep track of this ridiculous project.”

Ithaca problems must remain in Ithaca and not be spread to us

“These kind of “developments” only bring low income, low quality people.”

From the TBNA facebook page:

there is enough drug dealing on the other end of town probably not a good idea to add to it”.

“Turning trumansburg in to [sic] ithaca have fun with that will have a lot of crime”

I’ve not hidden the fact that I grew up in affordable housing. So these comments that say its occupants are drug addicts, criminals, problems and burdens is very hurtful. I can appreciate TBNA’s attempts on their page to celebrate when housing is announced in Ithaca, but honestly in this context it just reads as a selfish desire that those less well-off will go elsewhere and stay out of the village. For a community that prides itself on its social progressiveness, it’s very disappointing.





News Tidbits 12/2/17: The Changing Calculus

3 12 2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 





News Tidbits 11/11/17: It’s Back

12 11 2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 





News Tidbits 9/9/17: Shopping for Sales

9 09 2017

1. As Dan Veaner at the Lansing Star reports, the new owners of the Shoppes at Ithaca Mall (aka Pyramid Mall) are planning to roll out new tactics to counter the ongoing, nationwide retail apocalypse currently underway. Instead of leasing locations, the mall owner would like to subdivide retail spaces within the mall under a Planned Development Area (DIY zoning, in essence) so that tenants could potentially own their spaces instead of renting them, under the hope that when they own a store location, they are less likely to close it and will opt for closing rented spaces elsewhere. Because customary use-based (Euclidean) zoning is not suited for this unusual arrangement, a PDA has been suggested, and the village of Lansing seems amenable to the idea.

On a related note, another subdivision of the mall properties would open up a portion of the parking lot behind the Ramada Inn for the development of an extended-stay hotel. This would probably play out over a few years, given the time to design a project, secure a brand and ask for village review/approvals. Market-wise, it’s not implausible, since the other hotels planned, like the Canopy downtown or the Sleep Inn at 635 Elmira Road in Ithaca town, are geared towards the overnight crowd, and the overall market is growing at a sustainable pace. As long as the local economy continues its modest but steady growth, a medium-sized specialty property that opens in two or three years would probably be absorbed by the local hospitality market without too much fuss.

2. Meanwhile, over in the the town of Lansing, a couple of minor notes and some name changes. From the town of Lansing Planning Board agenda, it appears the 102-unit Cayuga Farms development is now going by the name “Cayuga Orchard”. The project, which has been stuck in red tape due to the stringent review of modular sewage treatment systems, is seeking modifications to their plans, which was summarized in the Voice here. The short story is that the project has the same number of units, but the impermeable area has been decreased and the number of bedrooms is down from about 220 to 178. That should help reduce stormwater runoff, and if the town sewer isn’t through yet, it could make the modular system more feasible.

Secondly, Cornerstone’s Lansing Commons Apartments are being rebranded as the “Lansing Trails Apartments”, which makes sense since there aren’t any “Commons” in the town, but the town center property is traversed by numerous recreational foot trails. The town has endorsed Cornerstone’s two-phase, 128-unit development plan for affordable rental housing, though the planning board did express concerns with the impact of dozens of additional school children on a property with 581a property tax breaks, which may result in a 4% increase in school taxes in the default scenario. The number could vary given the number of kids that actually live there – the board ballparked 80 for their back-of-the-envelope analysis, which given 128 units and roughly 208 bedrooms in the project, isn’t unreasonable.

3. On that note, it appears Cornerstone and NRP have applied to the county’s affordable housing funding grant for a bit of financial assistance towards their respective projects. Cornerstone is seeking funds for qualified units within the 72-unit first phase of its Lansing Trails project, and NRP is seeking funding for qualifying units within the 66-unit first phase of its Ithaca Townhomes project on West Hill. Each organization would receive $256,975, mostly in Cornell-donated funds, if approved by the county legislature. The money may be leveraged and with less needed from traditional affordable housing funds, it may make each project more appealing from a federal or state grant perspective, with demonstrated municipal interest and more “bang for the buck” on the grantor’s end.

4. The two-building apartment complex planned at 232-236 Dryden Road is one step closer to construction. According to Tompkins County records, Visum Development bought the two properties on which the project was proposed (114 Summit Avenue and 232-238 Dryden Road) for $7.65 million on Monday the 5th. The properties are only assessed at $2.55 million, but sellers tend to enjoy a hefty premium when developers have intent for their parcels.

The following day, the building loan agreement was filed. The loan, for $16,354,628, was granted by S&T Bank, a regional bank based in Pennsylvania that has no retail banking presence in Ithaca, but has served as the financier for several projects, including the Holiday Inn Express that recently opened on Elmira Road, and Visum’s just-opened 201 College Avenue project.

A breakdown of the costs shows the total project cost is $22,780,334. There’s $13,020,010 in hard costs (materials/labor), $7.65 million for the purchase, $475,000 in soft costs (architect/engineering/legal), $250,000 for the demolition, and the rest is for taxes during construction, interest reserve (interest on the construction loan during construction). $650,000 (5% of the hard cost) is set aside as contingency funds just in case the expenses clock in higher than expected.

Along with the loan, Visum and its investor appear to be putting up $6.325 million in equity. With these hefty sums, one has to be pretty certain of their investment. In Collegetown, they often are.

Visum CEO Todd Fox has previously stated construction is expected to start this month on the 191-bed apartment property, with an eye towards an August 2018 completion.

5. The Old Library property sale is official, on an 11-3 vote. Legislators Kiefer, Chock and McBean-Claiborne voted no, none of which are an big surprise since, as members of the Old Library Committee, they found something to dislike with every proposal back in 2014. If anything, the surprise might have been legislator Kelles, who while not a fan, supported the mixed-use project. Travis Hyde Properties will bring 58 senior apartments, community space administered by Lifelong senior services, and a small amount of commercial space when the building opens in 2019.

6. So this is interesting. Josh Brokaw is reporting over at Truthsayers that Cayuga Medical Center wants to move the Community Gardens off the land. That is a story being covered further by my colleagues at the Voice, but notable to this blog’s purview are two nuggets of information.

One, Guthrie and CMC had *a bidding war* for the property, which explains a couple of things. It explains why CMC paid $10 million for a property the Maguires only paid $2.75 million for, and it offers a clue as to why Guthrie purchased the neighboring Cornell warehouses. They both have had plans for that area, and working together isn’t a part of them.

Two, Park Grove Realty is involved with CMC. They’re a young Rochester-based company generating lots of news in Lansing with a lawsuit-laden 140-unit townhouse project, and they purchased the Chateau Claire apartments and renovated them into the upmarket Triphammer Apartments, which generated its own share of controversy.

Anyway, it makes the commotion down by Carpenter Business Park that much more interesting. Nothing has come public yet, but keep an eye on it.

7. On a related note, it’s not much of a physical change, but Maguire is using some of that cash windfall to officially acquire the former Bill Cooke Chevy-Olds-Caddy dealership on Lansing’s Cinema Drive. The franchise rights were transferred over ten years ago, but the property itself was still under the ownership of the Cooke family. Thursday’s sale was for $2,015,000. The 4 acres and 19,857 SF building was assesses at $1.8 million, so it appears the sale price was a fair deal for both sides.

I would be remiss not to point out that the buyer was “Maguire Family Limited Partnsership”. No LLCs cloaking this purchase like with Carpenter Business Park.

7. Now that the state has okayed the Cargill expansion, the above-ground portion of the project has to go before the Lansing planning board. The surface facilities, expected to cost $6.8 million, consist of a 10,000 SF administration building, a 2,100 SF maintenance building, a 2,600 SF hoist house, parking, landscaping and signage. A hoist house is essentially an industrial-strength engine room for operating the lift that brings people and equipment up and down from the shaft. It’s likely the primary cost contributor in the surface portion of the project.

As seen in the renders above, it’s designed for functionality rather than aesthetics, though Cargill did attempt to make the shaft building barn-like to blend in better with the farms. Construction on the above-ground structures is expected to start next year and run for about 18 months (the mine is being built from the bottom up). Although not shown in the renders, trees will be planted around the developed area to provide a green screen and help dampen noise.





News Tidbits 5/6/17: Starting Small and Dreaming Big

6 05 2017

1. The Evergreen Townhouses in Varna was hotly debated at the last town board meeting, per the Times’ Cassie Negley. Linda Lavine, one of the town board members, was particularly fierce in her criticism, calling the solar panels “useless”, and others in attendance expressed concern about appropriate room for amenities.

However, it also seems one of the phrases bandied about was that it wasn’t “family-friendly”. If you’re reading this and one of those folks, do yourself a favor and stop using that term. It’s an enormously baited phrase, historically used to fight affordable housing as a racist/classist euphemism, because people of a certain class or color were apparently less appropriate for families to be around. For an unfortunate example, it was a phrase used with the INHS 210 Hancock affordable housing plan in Ithaca. Think of it as the equivalent of a religious group claiming a TV show isn’t “family-friendly” because it has a same-sex couple, or feminists.

Although this project is market-rate, deciding whether or not something is “family-friendly” is subjective and potentially baited. It gives others the wrong idea on how to discuss the pros and cons of a project, which should be about features, or lack thereof. TL;DR, find a different phrase.

Oh, and on another note – Planning Board member Don Scutt. For someone claiming Dryden is getting an anti-business reputation, your work fighting the solar panels isn’t doing the town any favors. I don’t always (often?) agree with your mirror opposite and board colleague Joe Wilson, but at least I can say he’s consistent in his views.

Anyway, off soapbox. It looks like the public hearing was left open as the project may potentially pursue a modified plan of some form, so we’ll just have to see what happens.

2. The Trebloc property, future home of City Centre, has exchanged hands. 301 East State Street sold for $6,800,000 on April 28th. The seller was “Trebloc Development Company”, the company of developer Rob Colbert. The buyer was “City Centre Associates LLC”, a limited-liability entity created Newman Development. This brings the 8-story, 218,211 SF mixed-use project one step closer to getting underway.

3. A couple of news notes from the Tompkins County PEDEEQ (planning/dev catch-all) Committee meeting:

I. OAR’s transitional housing at 626 West Buffalo Street will be called “Endeavor House”.

II. The county is set to start work on its draft housing strategy. The annual goal figures through 2025 include:

–580 “workforce units” per year, of which 280 are rentals going for 50-100% area median income, and 300 would be for-sale, with 80 of those condos.

–student beds, either dorms or student housing developers, commensurate with enrollment growth

–special needs beds to those making 50% or less of AMI. No quantitative descriptor is given.

–350 units in the urban core, 50-100 in “emerging and established nodes”, 30 in rural centers and 100-150 in “other areas”, which includes suburban Lansing.

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4. 607 South Aurora Street is officially underway. Modern Living Rentals posted an update to their facebook page showing site prep for their infill residential project in the city of Ithaca’s South Hill neighborhood. The four new buildings will be two-family units with three-beds each (24 total), similar to those recently completed at 125 and 139 Old Elmira Road. If the statistics are correct, the existing house will be renovated into a two family house – the banner suggests a 4-bed unit and a 2-bed unit to bring the total to 30 beds. This project will get a full write-up later this month, and its progress will be tracked as it heads for an August completion.

5. Looking at the city of Ithaca’s projects memo, it doesn’t look like anything brand new will be coming up. The formal review process is set to begin on Visum Development’s 232-236 Dryden Road project. I’m kinda confused on STREAM’s project description because it references both 191 bedrooms and 206 bedrooms, and some of the numbers don’t match the parenthetical figures -for example, thirty-seven (42) bike spaces. Going off the FEAF, it looks like the number of beds has in fact been increased to 206. The construction timeframe is August 2017 – August 2018, and it looks like both buildings will comprise one phase. Deep foundation, so apologies in advance to the neighbors who may be hearing a a pile driver this fall. The developer is exploring net-zero energy options.

Also of note, 323 Taughannock received some visual tweaks. Gone are the cute sprial staircases leading to the waterfront, and in their place are more standard treatments. The group of five will now have their balconies on the third floor instead of the second floor. The changes on the front are more subtle, with the window fenestration now centered on each unit, and the front doors rearranged (old version here). Overall, the design is still roughly the same, it’s just a revision of a lot of details. Worth noting, given the crap soils on Inlet Island these will be on a timber pile foundation designed by Taitem Engineering. 238 Linden Avenue, 118 College Avenue and Benderson’s 7,313 SF retail addition are up for final approval this month.

6. Meanwhile, from the ILPC, it looks like there are a couple of density-expanding projects planned in the city’s historic districts. The first will renovate a garage at 339 South Geneva Street in the Henry St. John Historic District (part of Southside) into a one-bedroom carriage house. It’s infill, the garage is non-contributing and the design is an improvement, and it looks like a good if small project.

The other is a renovation of a classic Cornell Heights Mansion at 111 The Knoll into group housing for “Sophia House”, a Cornell Christian organization for women. The men’s equivalent, “Chesterton House”, is next door. The plan calls for renovating the five-bedroom, legal for eight-persons house into a 15-bed home. Part of that would entail demolishing the 1950s garage, which is connected by a breezeway to the ca. 1910 house, and replacing the garage with a four-bed addition, still connected through the breezeway.

Both designs are by STREAM Collaborative, as are 232-236 Dryden and 323 Taughannock. Can’t fault STREAM for being good at what they do – if a developer wants modern like 201 College, they get modern. If one wants traditional like the above examples, Noah Demarest and his team can do that too. They know the market and what works in terms of design. Unlike many local architecture firms, STREAM’s business is almost completely in Tompkins County – they did some concept design work in Rome and Utica, and some of the Tiny Timbers kits have been sold outside the county, but otherwise everything else is in or close to Ithaca. Business is good.

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7. Admittedly, this is beating a dead horse, but Harold’s Square will eventually get underway. It appears the problem right now is that the tax abatement approved by the county is insufficient because of the increase in project costs (up 12% to $42.9 million), so the project team is heading back to the IDA to get the abatement revised (the Hilton Canopy did the same thing a few months ago). The project was previously approved for a 7-year abatement, but this time around they are seeking the 10-year abatement. Combined property, sales and mortgage tax abatement would come out to $5.089 million. New property taxes generated over the 10-year period would be $3.4 million (note that is on top of what’s already paid; IDA abatements use the current taxes as the baseline).

The office space and retail space look higher than previously stated (33k vs 25k, and 16k vs 12k), but it looks like that’s because the Sage Building renovations are included in the IDA numbers. The apartment count remains the same (108), although it looks like one 1-bedroom unit has been replaced with a 2-bedroom unit.

Two reasons are cited for the delay- issues with getting the office and retail space occupied, and a premium price on construction workers as a result of the increased local activity. The pre-development costs are clocking in around $800,000, so if it fails to get approval from the IDA’s board, that will be a pretty big cost to swallow.

Should it be approved, the construction timeline is stated as June 2017 through Q1 2019.

8. Just throwing this in for the sake of throwing this in – mark your calendars for May 17th, when Cornell hosts a forum about the new East Hill Village neighborhood from 5:30-7:30 PM at the East Hill Office Building at 395 Pine Tree Rd. The project website notes that it will start with a 30-minute presentation, followed by breakout groups to brainstorm what people do and don’t want included in the building plans – certain retail uses, housing components, general visions for the site. There will be more meetings over the next several months – the goal is an Autumn 2017 exhibition for the preliminary plans.





News Tidbits 4/15/17: Good and Bad Decisions

15 04 2017

1. It looks like the Lansing Meadows issue is being resolved. Village mayor Don Hartill has issued a sort of mea culpa for not sending the project to the Planning Board before inviting it to the Village board of Trustees, saying the Planning Board was caught off guard and it was his and the village attorney’s fault. So the project will visit the Planning Board with Hartill and developer Eric Gortzmann on hand to answer any questions the planning board might have. A workable solution is possible – the planning board isn’t necessarily opposed, they would prefer more housing but could be willing to hear out a commercial component so long as it’s set back from the road and screened from the homes by foliage. Optimistically, the cafe/diner and twenty senior housing units might be good to go within a month.

2. The Biggs Parcel is up in the air. There have been no offers since going on sale last July, and the contract with realtor CJ DelVecchio has expired. The county has decided not to renew while they weigh options. Options being weighed for the three-month hold include a smaller housing development on eight of the acres on the corner of Indian Creek and Harris B Dates Drive, and/or a solar farm, which may split neighbors between a low-intensity, eco-friendly project, and losing a portion of the woods so that the solar panels could operate. There is no plan for another Cayuga Trails-type project like what NRP proposed before the discovery of more extensive wetlands convinced them to cancell the project in September 2014.

3. The town of Ithaca has selected its firm of choice to conduct the economic development study and strategic plan for its Inlet Valey corridor southwest of the cityConsultEcon, Inc. of Cambridge, in partnership with Behan Planning and Design of Saratoga, was selected from six applications. Behan has previous experience in the area; in fact, they won an award for their work on the 2012 Varna Master Plan over in Dryden. The town will pay $30,000, and the state will pay $30,000 through its Empire State Development division. Although not state in the town agenda, I believe the time frame to perform and submit the study is six months.

According to Ithaca town’s 2014 Comprehensive Plan, the goal is to turn Inlet Valley from an auto-centric hodge-podge with no overarching character, to a semi-rural neighborhood with an agribusiness, “artisanal industrial”, and tourism focus, capitalizing on Ithaca Beer and the existing and proposed lodging. The Sleep Inn proposal submitted a potential rustic streetscape that gives an idea of the aesthetic the town seems to be going for.

4. From the PEDC, the Southside housing plan is ongoing, and the IURA has hired their new planner after Lynn Truame left for INHS. There was considerable discussion over the Waterfront rezoning, with general conceptual support, although the First Ward councilors are not fans of mixing housing with light industrial areas, or forcing businesses to compete with housing developers for waterfront sites. Councilwoman Brock (D-1st) was opposed to housing in the Cherry Street Corridor. The proposal was granted by vote the permission to circulate for review and comment, so there’s still time for thoughts and opinions to be contemplated and discussed.

5. On another note, many of the speakers at the PEDC meeting were there to speak out against the City Centre project at 301 East State Street, not because they didn’t like the building (well, most of them), but because it didn’t have affordable units, which they felt should be a requirement for abatements.

I support that to a degree, but I’m also aware that, all other things equal, the revenue loss from the affordable units has to be made up for somewhere, usually by passing the costs on to the other tenants. In that case, the city ends up with a lack of units for those with middle incomes. I like the idea of modestly more generous zoning as a tradeoff to the inclusionary housing component, but as a proposal, that didn’t go over so well – developers didn’t like it (because to build more they need bigger loans, so it hurts smaller developers), anti-development folks didn’t like it (because affordable or not, it’s more of what they don’t like), and there was significant uncertainty on whether it’d be effective.

The county IDA had its vote for the sales/mortgage/property tax abatements the following day, and they decided to grant the abatements 5-1, with legislator Will Burbank opposed. The 192-unit mixed-use project is expected to begin construction with the next couple of months, for an early 2019 completion.

6. Once in a while, you get a project so despised by neighbors, they decide to run for office as single-issue candidates – namely, to stop the project. That’s what happening in Lansing village. Mayor Donald Hartill and two incumbent trustees, Ronny Hardaway and Patricia O’Rourke, are being challenged in the May election by mayoral candidate Lisa Bonniwell and two trustee candidates, Gregory Eells and John LaVine. Their goal is to overturn the rezoning of the Park Grove property on Bomax Drive, which rezoned commercial/tech office space to multi-family, enabling a 140-unit apartment project to move forward with planning board review.

This is not the first time something like this has happened in Lansing. When the Lansing Reserve affordable housing project was proposed in 2011, two residents opposed to the project, Yasamin Miller and Brian Goodell, ran against incumbent trustees on a single-issue platform of stopping the project. They lost by 2:1 margins, but Lansing Reserve never moved forward, and since then the land has been bought by the village for park space.

Although in a Voice capacity I can’t formally take sides, I have big issues with the challenger’s platform. I’m not a big fan of the Park Grove as a project, but the rezoning makes sense. As the county’s airport business park study demonstrated, the demand for new commercial and industrial space is very limited, while from the Denter study, it is clear the demand for housing is quite strong (5,000 units in the next decade). It amazes me that the challengers are saying the project will lower property values in a village with substantial price appreciation and major affordability issues (but as noted by the Star, Bonniwell’s family developed the expensive and still incomplete Heights of Lansing project nearby, so she has a vested interest in limiting housing).

Not only that, in the interview with the Lansing Star, challenger LaVine suggests the village should look at eventually merging with the town of Lansing, which is completely contrary to the village’s formation in 1974 as a reaction to the mall, when residents demanded for stricter zoning that the town didn’t want to accommodate. The town has much looser zoning than the village. If voters think for one moment that the town wouldn’t seek to change zoning in the village to build up the tax base and cope with the likely loss of the power plant, they’re in for a rude surprise.

7. On the agendas, nothing too exciting this week. The town has a couple of telecom towers and a 600,000 gallon water tank for Hungerford Hill Road. Over in the city, it’s project review week, but zoning variances suggest another nicely-detailed garage from STREAM Collaborative (STREAM does really nice garages), a couple of home additions, and a new 1,695 SF house at 412 Worth Street in Belle Sherman designed by Jason Demarest. The property is a flag lot that straddles the city-town line, so it would be neigh impossible to do anything without a variance. Ulysses will just be discussing zoning, and the other towns and village will be doing their regular meetings later in the month.

 





The Cherry Artspace Construction Update, 11/2016

28 11 2016

I don’t mind doing these summary posts – I just wish that several projects didn’t start in the same two month span.

The Cherry Artspace, to be located at 102 Cherry Street in Ithaca city, is a multidisciplinary theatre and arts venue planned by The Cherry Arts, a performing arts non-profit led by Artistic Director Sam Buggeln (Bug-ellen). The building is intended to not only house performances by The Cherry Arts, but other local and traveling theater groups, concerts, poetry and jam sessions, and just about anything else in the name of creative arts and artistic expression. The building will join Ithaca’s active and productive performing arts scene, including venues such as The Hangar Theatre and the State Theatre. College towns like Ithaca love their arts, be they visual, spoken or both.

The plan is for a one-story, 1,900 SF space designed by local architect Claudia Brenner to blend in with the industrial architecture that comprises the Cherry Street corridor. To do this, the building is basically the big brother to the former Renovus Energy building next door – similar colors, similar materials, and a shed roof, which Renovus put on to make the 1,154 SF building more amenable to solar panels. The space on which it is being built previously housed parking spaces and a utility shed, since moved. Buggeln purchased the building and lot in August 2015 for $240,000, and the construction and furnishing costs for the Artspace are estimated at $375,000. The Cherry, which can host up to 180 patrons during performances, has a parking agreement with the business next door to use their parking spaces, and it works out since the two organizations will be busiest at different times of the day.

The approval process was a bit lengthy, all things considered. The city created its TM-PUD zone as a way to legally deter the Maguire car dealership proposal for the waterfront, but the Cherry Artspace fell into the waterfront zoning overlay as well, so it not only had to go through the Planning Board, but the Common Council. The Artspace held its public information meetings at the end of March and mid-April. It enjoyed fairly broad public support, but two of the eight voting councilmen still voted against its construction at the May meeting. One was concerned about noise, the other was kinda out of the blue. The project also had to apply for several zoning variances from the Board of Zoning Appeals.

Construction on the Artspace officially began November 7th. This was a few months later than originally anticipated, and according to Buggeln it was due to contractor delays. I a rather unusual setup, that’s a slab foundation going in, but it’s made of styrofoam blocks – given the waterfront location and high water table, the relatively light building will “float” on top of the blocks.

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News Tidbits 11/5/16: Condemnation and Praise

5 11 2016

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1. The Maguire waterfront plan has been rejected. By an 8-2 vote, the Ithaca city Common Council voted to discontinue consideration of the state-of-the-art Ford/Lincoln/Nissan dealership, with most citing concerns about the project’s marginal or poor fit with the city’s comprehensive plan, which calls for an urban mixed-use form of development in the Carpenter Circle area where this dealership is proposed. The votes in favor of the proposal, from the third ward’s Donna Fleming and first ward’s George McGonigal, cited ways it could be conceived as fitting with the plan (greener alternative, local business expansion), and challenges the site offers to the city’s urban plan (poor soils, trains, chemical storage, power lines).

Although this shuts down the current proposal, this may not be the last we hear from the Maguires or the Carpenter Business Park site. At the meeting, company President Phil Maguire offered a teaser, saying they may partially liquidate their land holdings to bring in mixed-use development that would share the CBP space with the dealership. Given the heavy alterations that would need to occur, the council decided to vote down the existing proposal and send a message that it doesn’t fit the city’s goals. However, the council said they and the planning department would expedite review of an amended proposal, should it come forth.

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2. If you’ve ever wanted some explicit discussion of the challenges of doing affordable housing in Tompkins County, here’s a great summary courtesy of the the town of Ithaca. Back in August, the town’s Planning Committee (of town board members, similar to the city’s PEDC Committee) met with Ithaca Neighborhood Housing Services Director Paul Mazzarella for a Q&A. The town is considering regulations for inclusionary housing, and after INHS’s Greenways project fell through, they would like guidance and input on to make an effective code that promotes affordable housing without killing all residential development. Here are some of the highlights:

– Ithaca is a market of smaller builders. Local developers aren’t able or interested in doing huge projects, and most outsiders don’t see Tompkins County as a big enough or profitable enough market to tap into. So that leaves it to smaller builders who don’t have scale efficiencies, and are inclined to build luxury housing because the return on investment is more likely (i.e. less risky). The strong local economy also means that the local construction labor pool is largely tapped out, and additional crews have to be imported.

– Mandated affordable housing tends to work best in expensive, hot markets where the Return on Investment (ROI) for the market-rate units is more likely – your Seattles, San Franciscos and New Yorks. Even there, it is often paired with incentives such as height or square footage. Mazzarella noted he doesn’t think the city’s voluntary program will work very well. One thing to note with mixed-income projects is that the market-rate units will often be higher priced to cover the cost of lower-priced units. Simplified example – say you’re building ten houses for a sale price of $250,000. To meet an affordable mandate you sell two at $200,000, but to still obtain adequate ROI, that $100,000 is going to spread among the other eight – so you have two for sale at at $200,000, and eight at $262,500.

– We talk about modular homes as lower-cost alternatives, and for rural locations they often are, due to materials and labor costs. However, INHS found that in their experience for sites in the city and town, the cost is comparable to stick-built, although at larger scales, cost efficiencies may be achieved (ex. the Belle Sherman Cottages).

Another interesting read is the committee’s September meeting with city historic preservation planner Bryan McCracken and Historic Ithaca’s Christine O’Malley about protecting historical resources. As it turns out, the city cannot designate an individual landmark without the owner’s permission, and historic districts require the approval of 60% of affected property owners.

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3. Seems like Tiny Timbers had a well-attended open house. On their blog, the Dolphs have shared a cross-sectional diagram of an exterior wall – beneath the hemlock siding and copper trim will be ZIP sheathing and polyiso (thermoset plastic foam) insulation. ZIP is everywhere in residential construction, polyiso less common – locally, it was used extensively with the Boiceville Cottages in Caroline. On the inside, one has sheetrock and bamboo flooring. Exposed hemlock posts and ceilings will complement the sheetrock.

Also being rolled out is a fifth home design, a larger two-bedroom, two-bath home with a hipped roof. Variety is the space of life, as the saying goes.

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4. It was exciting to finally see the release of renderings for John Novarr’s College Townhouses project at 119-125 College Avenue. Links to the Site Plan Review document, historical documentation and drawings can be found in the Voice write-up here. There have yet to be images released for the garden apartment building to be built at the rear of the property, but look for the same general design features as the rowhouses. As expected from ikon.5 Architects, the design is modern and glassy, and given the Facebook comments and a couple of emails that came in, some neighbors are less than happy about that. However, this isn’t a historic district, so long as it meets zoning regulations, Novarr is free to hire whoever he darn well pleases. As mentioned in previous write-ups, he had ikon.5 design his guest house, so this isn’t strictly a cost thing, he genuinely likes their work. It was a bit surprising but interesting to see the well-researched history of the three 19th century boarding houses currently on the property, and it makes me wonder if that was a requirement. Novarr’s proven to be accommodating in the past, perhaps he’ll deconstruct rather than demolish, and the salvageable parts can be reused.

The project team will meet with members of the Planning Board on Tuesday afternoon for Design Review – about the only thing that stands out at initial glance is the lack of windows or visual interest with the north face, barely noticeable in the rendering. That probably won’t fly with the board, but we’ll see if it gets changed up as it goes through review. City Centre, the 8-story Trebloc site redevelopment, will also undergo further design review at the meeting.

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5. The Chapter House is going to the Ithaca Landmarks Preservation Commission (ILPC) yet again. The changes are subtle and few, but the rules are the rules. A service door will be added to the west (rear) wall, the inset vestibule is being reconfigured a bit, and the third-floor dormer windows are being changed from double-hung to casement – meaning that instead of sliding up and down, they’ll open with a crank. The ILPC will vote on the changes in November, which will probably sail through without much debate, and hopefully, just maybe, quite possibly, the Chapter House project can get underway.

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6. A couple quick updates from the town of Ithaca Planning Board minutes – after some discussion and a bit of praise for the redesign effort, the board opted for timber-trimmed Design “A” for the Sleep Inn proposal on Elmira Road. The minutes from Maplewood’s EIS meeting were also uploaded, and it is rare to see this much positivity in discussion of a project – not to say there weren’t dissenters, but the alternative energy source and efficiency initiative, use of local labor, and softening of the design on Mitchell Street won most of the speaking audience over. Public comment closed on Halloween, and now the project team must respond to all the reasonable comments received as part of the review process.





News Tidbits 10/15/16: Stoops and Stumbles, Growth and Gables

15 10 2016

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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





News Tidbits 9/17/16: Point By Point

17 09 2016

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1. Starting this week off with the Maguires again. Although there was significant vocal opposition from planning committee members to the proposal, they decided to postpone the decision for another month. It would have been more merciful and understanding if they had just declined to continue, but the committee voted 4-1 against making a decision at their Wednesday night meeting, citing to need to process public comment. Most of the comments in favor of the proposal mostly spoke highly of the Maguires as employers and economic drivers (and even some of the opposition did as well), most of the opposition focused on the plan not meshing with visions for what they want the neighborhood to become. The board will consider a resolution against the project next month, but it sounds like the decision has already been made.

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2. This will be something of an unusual month. Along with the typical retinue of meetings, the Planning Board will have a special meeting next week to weigh in on the next round of Chain Works District EIS public comments, approve some slight revisions to 210 Hancock, and zoning determination for 201 College Avenue.

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The changes to 210 Hancock are noticeable but minor. On the landscaping side, the concrete curb around the playground is proposed to be removed as a cost-saving measure, a fence separating the for-sale and for-rent townhouses will be removed and a fire lane put in, and the Lake Avenue paving will be changed up to match the waterfront trail. For the buildings, the 54-unit apartment building would have some windows tweaked or removed to standardize sizes (reduce cost) and fire safety concerns, and some of the yellow metal panels would be replaced with brick for cost and ease of installation. No changes are proposed to the townhouses.

As for 201 College, City Zoning Director Phyllis Radke issued a determination that 201 College is compliant and permitted by MU-1 zoning. She also states a number of concerns with the Planning Board’s handling of the review. Among the reasons cited are:

  • Pre-site plan review in November 2015 by zoning and planning concluded the project met CAFD guidelines.
  • Facade isn’t defined in the CAFD document. Building length and facade length can be interpreted as two separate measurements.
  • Facade length did not come up as a concern until July, four months after meetings began, after design review by the board, and after prelim site approval had been granted.
  • The building meets the conceptual guidelines provided in the zoning. While there are concerns about (yet unwritten) design standards and activation of both street facades, there’s nothing in the code for MU-1 that explicitly limits facade length on any side other than the primary face. There is, however, in MU-2. So secondary street facade length was stated in the code for one zone, but in no others. Even though it’s been argued as an ambiguity, the board did not consider secondary street facade length in its review of a CR-2 zoned duplex at 319 Oak Avenue in early 2015. The activation requirements apply only to the primary face for non MU-2 structures. If the board decided it was still ambiguous, Hess Realty Corp. vs. Town of Rotterdam (1993) says that ambiguities must be resolved in the favor of the property owner.
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  • The 2009 vision guidelines that people keep citing, and Neil uses on the “Save our Soul” facebook page – not only do they suggest taking down Neil’s house, they also have building lengths running the entirety of Bool Street.

With all that noted, even if it’s decided the project is in fact legal and doesn’t need a trip to the BZA, it likely won’t be moving forward this year, if at all. Visum couldn’t start in time for the desired August 2017 completion, and the project and site are for sale. For a potential buyer, though, it would be of significant benefit to have the zoning debate resolved before any sale occurs.

3. Out in the towns, there’s not a whole lot of development discussion in next week’s agendas. The town of Ithaca will continue its review of Maplewood Park (running behind schedule at this point) and issue a couple of lot subdivisions, neither of which are expected to be a big debate.  The town of Dryden received plans for a 10,500 SF self-storage facility for the vacant northeast corner of Freeville Road and Enterprise Drive. The 70′ x 150′ warehouse will house 121 units, and about 7,500 SF will be climate-controlled. The project will cost about $350,000. There also plans for an Open Development Area (ODA) on Dryden’s Scofield Road. ODA means an ROW or easement is required for building permits, and the town has to review the plans – nothing’s been filed yet.

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4. A pair of construction loan agreements worth noting this week. The first is Storage Squad’s facility going up at 1401 Dryden Road east of Varna. According to a filing on the 12th, the company received a construction loan of $1.4 million from Tompkins Trust. That money will be used to finance the build-out of their 79,600 SF storage facility already underway. The second is the Dollar General being built at the corner of Route 34/East Shore Drive and Cayuga Vista Drive in Lansing. Primax Properties (under the name Sea Mountain Ventures II LLC) received a $956,000 loan to build the 9,100 SF retail store, which is also under construction. that loan was also filed on the 12th. The lending institution is BB&T, a major regional bank in the Southeast. Primax is headquartered in Charlotte, and BB&T is headquartered just 90 minutes up the road in Winston-Salem, so in this case, it’s less about a bank being interested in Ithaca, and more about two major companies located near each other and having an established business relationship.

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5. So the Ithaca Urban Renewal Agency’s Economic Development Committee selected the $3.7 million Seneca/Corn proposal to submit to the state for the Restore NY 4 grant. And I feel a bit embarrassed because the Voice story, comparing the Seneca/Corn proposal and the State Street rehabs, ran after the decision was made, so it comes off as a bit clueless thanks to timing. Anyway, the application will be looked at by the Planning Committee, and submitted in early October. If all goes well, funding could be granted by the beginning of next year, with the renovated Wyllie’s and the Ithaca Glass overbuild ready for tenants by early 2018. Ed Cope is the developer, STREAM Collaborative the architect.

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6. For sale this week, and for the budding entrepreneur – 2,310 SF neighborhood commercial retail at 402-04 West Court Street in the Washington Park neighborhood. Talk about a change. When I started at Cornell ten years ago, this was “The Corner Store”, and it was severely run down. I don’t remember the florist sign, but everything else in the assessment photo below fits my memories from the mid 2000s.

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During the past ten years, the bump-out was renovated, then the building was repainted, and The Corner Store became the “Red and White Cafe“, a highly-regarded neighborhood fish fry and seafood restaurant. According to the listing, the major renovations came about three years ago. County records indicate the property last exchanged hands in 1988. Along with the retail space comes 432 SF of storage.

The listing is asking for $975,000, but that would be for building and business – the building and lot are valued at $120,000, so any potential buyer is going to be much more interested in the cafe than the building.