News tidbits 1/16/2016: The Not-So-Best Laid Plans

16 01 2016

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1. It isn’t exactly a shock that Elmira Savings Bank is pursuing plans for the $1.7 million in properties it just acquired on the west 100 block of Meadow Street between West State and West Seneca Streets. That being said, sending out 30-day eviction notices wasn’t a very good idea from a public relations standpoint.

Technically, it’s all above the law – the three tenants affected were on month-to-month leases, according to Nick Reynolds over at the Journal, and one had an expired lease and was in the process of relocating. The bank wasn’t interested in renting out the properties and decided to clear them out. That is plausible, if a little brusque – even if they had put forth a proposal for something at the next Planning Board meeting, approval would take months, in which case they could eased the tenants out of the current property. But instead, they ended up with a petition that, while mostly reading like a speech from the Politburo, does make the valid point that this was conducted poorly. Then it hit the airwaves, and the bank has gone into major damage control mode, giving the tenants until the end of March and reimbursing them $1,000 for the trouble.

Looking at some of the comments on the Voice, there is a lot of outcry against gentrification, but there’s not a whole lot the city can do to prevent that – even if Elmira Savings Bank didn’t build a thing and sold the buildings to someone else, the rapidly rising property values around the city would push the renters out, albeit more subtly, and the city can’t make a law that says someone can’t move in. Plus, as seen during the 210 Hancock, Stone Quarry and Cayuga Ridge debates, there’s a lot of pushback locally against affordable housing. Arguably the best solution going forward is to work an inclusionary zoning ordinance into law so that when Elmira Savings Bank does decide to build (and it’s more of a when than an if), that a few of the units be made available to those on more modest incomes.

Just to touch on that real quick, according to the Journal, the old Pancho Villa building at 602 West State Street will become a bank branch for ESB in the short-term, and plans are being considered for a mixed-use project at some point down the line (two months, two years, who knows). The zoning is WEDZ-1a, allowing for a five story, 65′ building, but there might be tweaks to that depending on the inclusionary zoning ordinance.

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2. Keeping a focus on the west side of the city, the Planning and Economic Development Committee voted to circulate a proposal for a “Temporary Mandatory Planned Urban Development” (TM-PUD) over the waterfront. The reason for this is one part proactive, and one part reactive.

What the TM-PUD does is, for an 18-month period starting the day of Common Council approval, it gives the Common Council the right to oversee and if necessary vote down projects that it thinks will not be appropriate for the waterfront. The study area is currently a mix of zones: Waterfront (WF-1, WF-2), Southwest Mixed-Use (SW-2), Park (P-1) and Industrial (I-1). When the Comprehensive Plan was passed in 2015, it promoted a more walkable, dense, mixed-use waterfront. Therefore, some of the zones are outdated.

The city’s planning department is still in the process of drawing up specifics for how to implement the Comprehensive Plan’s walkable urban waterfront, but in the meanwhile, some of the zones don’t match up with the direction the city wishes to proceed. Take, for example, the industrial space on Cherry Street and Carpenter Circle. By zoning, residential uses aren’t allowed, although the city would like to see mixed-uses with condos and apartments in their vicinity. The planning department needs time to figure out the what and where on zoning so that those uses can be proposed without a developer spending extra months in front of the Planning Board and BZA, which can drive up costs and make construction financing more uncertain.

So that’s the proactive, benign part – the city needs time to plan out the zoning laws for the dense waterfront they want. Now comes the reactive, cynical part.

It’s a not-so-secret secret at this point that the Maguires are looking hard at Carpenter Circle for their car dealership headquarters and multiple sales outlets. Since Carpenter Business Park is zoned industrial, and Ithaca city zoning allows commercial uses in industrial space so long as they’re two floors, there’s a good chance they could build dealerships without the need of the BZA, and it would be an uncomfortable position for the planning board to have to debate a project that is totally legal but is something the city and much of the community doesn’t really want. So as a way to stall for time, the city’s pursuing this TM-PUD and giving the Common Council the authority to shoot down any unwelcome plans should they arise.

For comparison’s sake, there’s a similar scenario that is playing out in Ithaca town. The College Crossings project on South Hill was welcomed under the zoning and previous iterations had been approved, but after the town passed its 2014 Comprehensive Plan and attended the Form Ithaca charettes last summer, the planning board realized that a shopping center with a couple apartments above and in the middle of a large parking lot wasn’t something they really wanted anymore. While the project has been withdrawn, the process and debate has created a lot of discomfort, confusion and uncertainty, which is rather problematic given the area’s housing shortage. The town hopes to have some form-based zoning code ready this year.

So, looking back to the city, the occupants of 108 E. Green Street want things that are still illegal in much of the study area, but they don’t want a full-on moratorium because some spots like the Waterfront zones actually do accommodate what the city and many of its constituents want. The TM-PUD is an attempt to stave off the legal but undesirable projects until the revised West End zoning can go into effect.

Worth pointing out, at the meeting the boundary was changed to midway through the Meadow Street and Fulton Street blocks, rather than along Fulton Street. It may or may not affect Elmira Savings Bank’s parcels as mentioned above, but those long-term plans are in alignment with the city’s, so probably not.

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3. On a related note, the town is holding workshop sessions for those interested in designing a ped-friendly, mixed-use community for South Hill. The meetings are planned for 6:30 p.m. to 8 p.m. Jan. 26 to 28 at the Country Inn and Suites hotel at 1100 Danby Road in Ithaca. An open office has also been scheduled for 12 p.m. to 1 p.m. Jan. 27. Form Ithaca will be in attendance at the sessions to help formulate the form-based character code proposed for the neighborhood.

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4. A revision to the cellphone tower law has taken one step closer to becoming reality. The city’s Planning and Economic Development Committee voted 4-1 to circulate a revised law that would reduce the size of the tower’s fall zone, where construction of any structures is prohibited. A revision to the current city law, which is twice the height of a tower, could potentially allow the 87-unit 815 South Aurora apartment project to proceed with planning board reviews and other BZA variances if necessary. Developers Todd Fox and Charlie O’Connor of local company Modern Living Rentals have been pushing for a fall zone radius of 180 feet for the 170-foot tall tower, rather than the 340 feet as the current law mandates.

From the discussion, it sounds like the concern has less to do with this parcel, and more to do with the possibility of cell phone companies pursuing towers on open land in the northern part of the city where spotty reception has to be weighed against the aesthetics of the lake shore. Anyway, we’ll be hearing more about possible changes to this law in a month, but for back reading, here’s the Voice article from a few months back.

5. In quick news, CBORD’s move to the South Hill Business Campus looks like a go. A $2.45 million construction loan was extended on the 8th by Tompkins Trust Company. CBORD, a software company founded in Ithaca in 1975, will move 245 employees into 41,000 square feet of freshly renovated SHBC space from the Cornell Business Park later this year. The project, which totals $3.7 million, was granted $296,000 worth of sales tax abatements.
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6. From the city’s Project Review Agenda next Tuesday, plans for a facadectomy of the 1980s Student Agencies Building at 409 College Avenue. Student Agencies, in collaboration with Cornell, plans on dropping $183k on the facade work, as well as the $2.8 million or so for the interior renovations of the second and third floors for the new eHub business incubator space. Prolific local architecture firm STREAM Collaborative is in charge of the design work, including the 9,660 SF of interior space. The work would go from January to April (the loan is already approved and most of the work is interior).

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If I may play armchair architecture critic, which I have no credentials to do, I think the patio area is great, but I’m opposed to the brise-soleil, the wing like feature that serves as a sunscreen. I feel like that its location above the third floor throws off the rhythm of the block, by being lower than the cornices on adjacent structures. It might be fine over the glass curtain wall alone, but as is it feels a little out-of-place. Just one blogger’s opinion.

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7. House of the week. 228 West Spencer Street in the city of Ithaca. Zero energy new construction, 2-bedrooms, on a rather difficult site. In the above photos from last weekend, the house has been framed and sheathed with Huber ZIP System plywood panels, the roof has been shingled, and doors and windoes have been fitted. The blue material on the concrete basement wall is Dow Styrofoam Tongue and Groove Insulation which protects against moisture and helps keep the heat loss to a minimum. The house should blend in nicely with its neighbors.

Ed Cope of PPM Homes is the developer, and Noah Demarest of STREAM Collaborative is the architect.

 





News Tidbits 12/12/15: Money Money Money Money

12 12 2015

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1. Time to do a little rumor-killing. There’s been some confusion as to whether or not the Hilton Canopy is actually happening, since it was supposed to have started construction by this time and it hasn’t. There was also an article in the Ithaca Times that suggested that construction costs much higher than original estimates had caused the project to be cancelled.

Well, the project has definitely been delayed, but it looks like it will still be moving forward. According to a utility easement resolution at the Ithaca Urban Renewal Agency’s Economic Development Committee (IURA EDC) meeting, a project financing commitment has been secured and the developer of the Hilton (Neil Patel of Lighthouse Hotels LLC) is planning a construction start in the first quarter (Jan-Mar) of 2016, which would suggest a mid-2017 opening.

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2. Also in financial news, INHS looks to have secured grant funding that will allow it to move forward with its 210 Hancock project in the next four months, according to INHS Executive Director Paul Mazzarella. The grants were officially awarded in an announcement from the governor’s office on Tuesday. $3.6 million will come from the state’s Housing and Community Renewal program, $500,000 from the state low-income housing tax credit (LIHTC) program, and $1.03 million from the U.S. Department of Housing and Urban Development’s LIHTC program. In total, the award is valued at $5.13 million, about a quarter of the estimated $20 million development cost. The project has received about $17 million in grants and tax credits to date.

The money awarded covers only the rental units – 54 apartments in the four-story mixed-use building, and five townhouses. The seven owner-occupied townhouses remain unfunded.

The apartments, which include a 30-child low-income daycare facility and commercial office space for non-profits, will welcome their first tenants in Summer 2017. They will rent from 27% to 105% of local median household income, depending on the unit. Descriptively, it’s a mixed-income project with residents’ incomes ranging from $25,000-$60,000 per year.

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3. From the Common Council’s Planning and Economic Development Committee, there are a few things of note this week –

A. The city seems to be looking towards greater encouragement and flexibility with redevelopment of waterfront parcels by making WF-1 and WF-2 zones Planned Unit Developments (PUDs). What a PUD does is allow greater flexibility in uses and design by removing or loosening zoning constraints on site use, and being more accommodating to mixed-use projects (the Chain Works District proposal is a PUD, for example). Previously, PUDs could only be applied to industrial sites. The other stipulation, however, is that the applicant would have to work with the Common Council to determine appropriate development of the site.

The Waterfront Zoning allows up to 5 stories and 100% lot coverage. The PUD will give flexibility beyond that, dependent on what the Common Council is comfortable with for a given site and proposal.  So if Applicant X shows up with a huge apartment building or a big industrial building, it’s probably not going to get very far. But if it’s well designed and has affordable units? Maybe the council will grant a little more density or another floor. It depends on a developer showing up with something that they feel offers some kind of community benefit and fits with the Comprehensive Plan, and whether the Common Council agrees with the developer’s reasoning.

There is great potential in the waterfront – those views can fetch a premium (i.e. higher land values, and more tax dollars), it’s far enough removed from the colleges that students would be unlikely residents, and many of the properties are underutilized, with only marginal public benefit.  So potentially, if someone wants to work with the Common Council (one can count on at least 8 or 9 of the 10 being willing to cooperate), there could be some benefits in the long-term.

B. The Commons first-floor active-use zoning ordinance looks to be heading for a Common Council vote in January. More about that ordinance here, Item 5.

C. That damned backyard chickens thing again. Only this time, it might be moving forward with a pilot program involving 20 families.

D. Per the Times’ Josh Brokaw, expect incentive/inclusionary zoning to be up for PEDC review in January.

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4. Hey look, this week’s eye candy. Tompkins Financial Corporation’s proposed downtown Ithaca Headquarters at 119 East Seneca Street will be reviewed for final project approval at this month’s Planning Board meeting. As part of that, here’s the final project design, part of the final Site Plan Review submission here.

From the front, it looks like some of the window layout has changed on the top floor and southwest corner, and there are fewer sunshades above the windows. There’s a third tree in the planting plan, and there’s variation in the cladding materials on the west wall facing the DeWitt Mall.

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In fact, it’s the non-primary facades that have changed the most, with different (and generally lighter-colored) brick and aluminum panels when compared to the previous rendition. Although there’s less glass than before, the lighter colors and greater variation in materials de-emphasize the bulk from the perspective of its townhouse neighbors at the rear. The 7-story, 110,000 SF commercial office building should begin construction in early 2016 with an eye towards completion the following spring.

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5. There was quite a sale on Ithaca’s West End last Friday. Nine properties outlined in red on the map above – 106, 108, 100 and 116 North Meadow Street, 607, 609 and 611 West Seneca Street, and 602 and 604 West State Street – were sold for $1,725,000 to Elmira Savings Bank.

Now, there are a few reasons why this is worthy of attention. For one, banks don’t typically shell out almost two million dollars without some kind of plan. For two, Elmira Saving Bank has been moving forward with expansion plans in the Ithaca area in hopes of capitalizing on the growing local economy. For three, there has been a lot of development in this neighborhood as of late – the Iacovelli Apartments (2013) and Planned Parenthood (2014) are right across the street, and it’s worth noting that the 18,000 SF HQ for Alternatives Federal Credit Union (2002) is on the other side of the block.

The properties are currently home to parking lots, several older, non-historic houses (most in poor condition) and a two-story 4,500 SF commercial building previously home to the Pancho Villa Mexican restaurant. The restaurant building had been on the market for $699,900.

The zoning here is all WEDZ-1a. West End Zone 1a allows for 2 to 5 story buildings, 90% lot coverage in the case of large assemblages such as this, and no off-street parking requirement. That means these parcels have a lot of potential. The previous owner had been rumored to be planning a mixed-use building on some of the properties, but nothing official ever came forth.

Two phone calls were placed to Elmira Savings Bank’s headquarters in Elmira, and two voicemails were left, but neither received a response. But these properties are definitely something to keep a close watch on over the following months.

6. That 9100 SF store being developed on the corner of East Shore and Cayuga Vista Drives in Lansing that was mentioned last week (here, Item 4)? It’s going to be a Dollar General. Not sure if that’s better than the auto/tire store speculated last week.

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7. Lest it be forgotten, it appears Lady Luck and some state bureaucrats smiled at the Southern Tier this week, awarded the region one of the three $500 million prizes of the Upstate Revitalization Initiative, known colloquially as the Upstate “Hunger Games”. Rochester/Finger Lakes and Syracuse/Central are the other $500 million winners. Seven regions competed, and the four losers will receive $80-$100 million for their priority projects. The money will be paid out in five annual installments of $100 million. A copy of the Southern Tier’s plan is here.

I wrote about Ithaca’s plans for its share on the Voice here. The first year projects alone will have a range of impacts, ranging from job creation and training to municipal construction projects to quality of life projects like museum expansions. Potentially, it could result in hundreds of jobs in Tompkins County, financial capital for several major projects, and make the area more attractive for investment for both local and external entities. As these projects move forward, they’ll receive their due write-ups here and on the Voice.

Of course, the key things are that the community can manage this monetary award, and that someone can track and guide these projects to completion – something the Southern Tier has struggled with, when one looks at the result of previous, much smaller awards.

8. The state’s just shoveling money into Ithaca this week. The New York State Office of Community Renewal (part of the state’s HUD equivalent, the Homes and Community Renewal agency) has awarded $500,000 towards the rehabilitation of the Masonic Temple at the corner of East Seneca and North Cayuga Streets in downtown Ithaca.

The Masonic Temple was built in 1926 and designated a local historic landmark in 1994. The property is owned by Ithaca Renting Company (Jason Fane), who purchased the building from the Masons in 1993. Fane’s never been a fan of the historic designation because the ILPC can be expensive and onerous to work with, nearly everyone else hasn’t been a fan of his long-deferred maintenance of the 90-year old building (if you have ever wondered why that CIITAP rule was added about an applicant being in building code compliance with all their other properties…now you know). A few years ago, Fane had not been shy in his interest in demolishing the building.

After rejecting a purchase offer to turn the building into a community center and space for the New Roots charter school, Fane decided to go the preservation route earlier this year and apply for a grant to renovate the interior and add an elevator to the building to make it ADA-compliant. This would make the building much more marketable to commercial tenants, many of which have shunned the 17,466 SF building. Fane laid out a few different options this past summer, including one where four commercial spaces (rental, office, restaurant) would be created. Based on the grant announcement, it looks like that will be the option pursued.

The Downtown Ithaca Alliance backed the application, as did the Common Council by unanimous vote at their July meeting.

The renovation will cost at least $1 million, and according to the grant announcement, seeks to start construction in summer 2016. Expect more info when it hits the ILPC and Planning Board at a later date.

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9. House of the week. This week, INHS’s new 2-bedroom, 1150 SF single-family home underway at 203 Third Street in the city of Ithaca’s Northside neighborhood. The house is framed, roofed and sheathed. Siding (Hardie board?) and trim is being attached on the sides, and one can expect a nice gracious porch to be attached once exterior materials are installed on the front. A home of the design was previously built at 507 Cascadilla Street.

203 Third Street was a vacant that the city seized in a tax foreclosure in 2011. It was transferred to the Ithaca Urban Renewal Agency, who sold it to INHS for $17,000 in December 2014. The process is pretty similar for a lot of the home lots that INHS builds on – the non-profit buys dilapidated or vacant properties from the IURA, which they build or renovate into affordable single-family and duplex houses. In the case of 203 Third Street, INHS competed for the site, outscoring Habitat for Humanity’s submission in an IURA examination of proposals.

As with all INHS homes, this one will be sold to a buyer of modest means, which means someone making at or a little less than the county’s median household income of $53k/year (I think 80% of MHI is the low bound offhand, so about $42k/year). The houses will be a part of INHS’s Community Housing Trust, limiting the price it can be sold for and requiring that if put up for sale, it is sold to another family of modest means. It may just be one house, but it will mean a lot to one family.

Claudia Brenner is the architect, with Rick May Construction and Mike Babbitt in charge of construction (thanks to Claudia for the builder info).

 





A Long Voyage Ahead for The Waterfront

27 10 2015

The NYS DOT property is probably the next big, Old Library-type project facing the county in the upcoming couple of years. There’s a lot to consider in a possible move of the DOT to Dryden, and subsequent sale of the site to a chosen developer. For that, the county paid $78,000 to Fisher Associates to conduct a feasibility study, the results of which are shared below.

The feasibility study examined multiple angles – environmental, physical, market and financial factors. It has to, because without a through examination of the site, the county could under-price themselves, or vice-versa, there may be fewer or no offers, should buyers think the site’s a poisoned chalice.

But let’s start with the initial disclaimer – things are years out. The Old Library site issued an RFEI in November 2013, and a preferred developer was only named in August. Plus, everything is still dependent on a DOT move, which will have its own schedule if it happens. All things considered, although the county has generously offers 2017 as a construction start date, it’ll probably be the end of the decade if not the 2020s before any soil starts to turn, assuming there’s an interested developer.

So let’s start with a look at the site’s history and environmental concerns. According to Fisher Associates’ Environmental Site Assessment (ESA, link here), the property was virtually unused until the NYS DOT bought the land and starting building their facilities on it in 1958. There were petroleum tanks underground, but they were removed and the land re-mediated in 2004, and now the only tanks on-site are above ground, and in good condition. Some concerns still exist with salt brine tanks, debris in the inlet, and materials from when the DOT used a septic system, before it was hooked up to the city sewer. None of these appear to be potential deal breakers, just things worth noting.

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Perhaps surprisingly for a waterfront property, the vast majority of the site isn’t in the 100 or 500-year flood zone. Most of the site is elevated just enough to avoid flood risk.

Empire GeoServices of Cortland conducted the geotechnical report and site soil analysis. Looking at the soil conditions, being next to the water poses some limitations. Most of the lower elevations of the city suffer from poor, water-logged soils, which are soft and compressible near the top – in a few cases, shallow spread foundations, typically the cheapest option, have been damaged by excessive soil settling, so those are not recommended. Deep, pile foundations, like the ones used at the Lofts @ Six Mile Creek (micro-piles), Marriott (caissons) or some of the big box stores, are a safe option because they go down to more solid soil layers, but they’re more expensive. Shallow mat foundations can also be used in place of shallow spread foundations, but they’re also more complex and expensive, and are really only suitable for “light buildings” with less pounds for square inch. A mat foundation was used for Cornell’s new rowing center.

Long story short on the soils, it means that whatever is built will need a complex foundation, and its likely that whatever gets built will be priced at a premium. The study tacks on an extra 10% to the cost for townhouses and mixed-use buildings.

In the study, there are three plans considered – a hotel plan, a multifamily/townhouse “preferred” plan, and a maximum density plan. The site plan PDF is here, for you kids following along at home.

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The hotel plan imagines a 124-room hotel (midsize in the Ithaca market) with 6450 SF of commercial space. The plan includes 10 townhouses and 52 multi-family units in the 850-1200 SF range. There are 286 parking spaces, as required by zoning – 1 for each hotel room (124), 1 per 100 SF of commercial space (64), 2 for each townhouse (20) and 1.5 for each apartment-type unit (78). 1 Space for 100 SF commercial space is fairly generous to drivers – the ITE trip generation manual shows most commercial retail to be well below that threshold, with only service outlets like fast-food joints, coffee shops and bars exceeding the 1 space/100 SF value.

The market issues with this plan are focuses on the hotel. A hotel was envisioned for the waterfront for decades, but being off by itself with only few nearby attractions (the trail and farmer’s market, not much else), it’s not as desirable as downtown, nor is the land as cheap as the Southwest suburban corridor. The feasibility study notes the waterfront might be a draw in the summer, but the weather the rest of the year would limit its appeal. With increased interest in living in the city, the hotel idea has had less allure in recent years. Still, the option was included for the sake of comment and critique. The study says a hotel would need 120+ room to support fixed costs (taxes, maintenance), and recommends a brand not present in Ithaca, like Hyatt or Starwood (Westin/Sheraton).

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The multi-family/townhouse plan does away with the hotel and instead focuses more on residential. The plan is composed of 14,160 SF of commercial space, 46 townhouses and 84 multi-family units (130 units total). 356 parking spaces are provided.

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The maximum density plan is as it sounds – the maximum legally allowed by zoning. The plan calls for 13,950 SF of commercial space, 137 multi-family units and 378 parking spaces.

Note that all three plans have a new indoor farmer’s market building, but that’s a separate development being spearheaded by the market.

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Renderings make for great eye candy, but the emphasis is definitely not on the architecture here, because it’s a bit like predicting what new cars will look like in 2020. You know it will probably have four wheels, lights and doors, but everything else is just for show. Whoever buys it will come in with their own idea of how things should look (see Form Ithaca’s waterfront study for their take). For the sake of reference, a copy of the aerial renders of each layout is here.

Now for a financial summary (link), the feasibility in its essence. HR&A Advisors, who partnered with Fish Associates for the study, notes that development can work with a potential buyer’s bottom line, but it’s going to be expensive and the developer will seek to minimize risk as much as possible – there’s not much padding in the profit. There are few comparable products in the county to the site, which makes determining the market size, rents and level or risk somewhat more difficult than usual. The study assumes a 3-year, single-phase build-out.

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The study assumes about $2.15/SF for a residential unit – in other words, a 1,000 SF unit (like a larger 2 bedroom or smaller 3 bedroom unit) renting for $2,150/month, similar to the Lofts @ Six Mile Creek or Gateway Commons downtown, which were used as comparables. Luxury housing, without a doubt. The waterfront commands a price premium, but the disconnection to the rest of the city could hinder rentals. Some condos/owner-occupied units are possible, but rentals would be the majority. Development costs range from $165/SF for a townhouse, to $215/SF for a multi-family unit, to $287/SF for the hotel. The value of a project ranges from $39-$45 million depending on plan, and with development costs taken into count, the land could sell for something less than $1,000,000 to $2.5 million. Over time, the project may generate $13-$22 million in tax revenue over 20 years, depending on approach.

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The land itself will not sell for the price required to cover the DOT’s cost of moving, which will have to be underway before any sale takes place. The move is estimated at $14 million. This means that the city and county may have to chip in on upfront costs in order to get a good project in that will pay itself off via tax revenue. HR&A notes that an RFP should be flexible in its options, and be open to zoning variances that might improve a project’s chance of success.

 

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For what it’s worth, Fisher associates also did a conceptual layout for a new DOT facility here.

According to the county, here are the next steps in the process:

  • A financial plan for the redevelopment of the Cayuga Inlet site that reduces the risk for private developers and generates revenue to support the move of the existing NYS DOT facility.
  • An analysis of the project’s impacts on infrastructure and utilities, the natural environment, neighborhood and adjacent properties, and the surrounding road network.
  • An estimate of the land value of as well as the individual components of the plan. The result will be an order of magnitude valuation of the site to better understand the project’s ability to attract private investment, support debt, and support a purchase price and tax revenue stream that could be used to advance the NYS DOT facility’s relocation.
  • A draft Request for Proposals (RFP) to solicit developers to redevelop the site.
  • An estimate of the ongoing direct fiscal benefits to accrue to the City of Ithaca and to Tompkins County, including real property taxes, personal property taxes, school taxes, sales tax, and other applicable taxes and fees.
  • A financial strategy for moving the DOT site with some combination of revenue from sale of the site, direct funding from NY State, and, possibly, a local contribution from anticipated tax revenues.

Expect that last one to be potentially controversial. The state might move slow but could be supportive, but the city will have to explain and hope that a possible initial investment in the DOT’s move to Dryden could pay off over subsequent years. Voters don’t always like long-term plans.





News Tidbits 10/17/15: Pressing the Issue

17 10 2015

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1. It looks like the Amabel housing development has another site plan. New pedestrian paths, a relocated community garden, and some substantial tweaks to the layout of the house, including a small access road for three homes near the southern termination of the loop road with Five Mile Drive (older plans here).

Marketing for the project hasn’t officially started, but New Earth Living LLC’s (Susan Cosentini’s) website does have interior renders for one of the proposed house styles, as well as an informational PDF. Plans call for Net-Zero energy efficiency homes, meaning that the amount of energy generated on site will power all the project’s energy needs. Example homes included in the PDF range from 1,184 SF to 2,083 SF – it looks like there will be four home models with alternate configuration options. Prices have yet to be announced.

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The Amabel project, proposed for 619 Five Mile Drive just southwest of the city of Ithaca’s boundary line, has been in the works for the past couple of years, a sort of grand follow-up to New Earth Living’s Aurora Street Pocket Neighborhood in Fall Creek. The project will have about 30 single-family homes at full build-out.

I know some of the more pessimistic readers here may call this suburban sprawl with a green sheen, but it’s a lot better than a cul-de-sac.

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2. The village of Lansing sent off their updated Comprehensive Plan to the county planning department this week for review and approval. Now, planning should be the village’s forte, since the village of Lansing was founded in the 1970s as a backlash against the construction of commercial and residential properties along Triphammer and Route 13, including what’s now The Shops at Ithaca Mall. The plan was last updated in 2005, and draft of the new plan can be found here.

The village seems to note with some distress that although population growth has slowed, traffic has continued to increase (due in large part to significant growth in Lansing town; many town residents pass through the village to get to employment centers in Ithaca). North Triphammer Road has already been widened, but there are concerns about the ability of infrastructure to handle further traffic increases. The village also notes a strong rise in the 55+ population, as well as the same affordable housing issues that plague Ithaca and much of the county; in Lansing’s case, the median household income can afford a $171,000 home by their estimate (2.5 x $54,721 = $136,800 qualifying mortgage, + 20% down-payment), but the average house in Lansing costs $258,000 (affordable to a household making ~$82,500; note all the numbers are 2010 values). The plan also shows that fair market rent in Lansing increased 64.1% from 2005-2015, meaning that unless a renter had an annual wage increase of 5.8%, they paid more of their income towards housing year after year.  29.4% of homeowners and 39.1% of renters pay above the HUD’s 30% of total income threshold for affordability. The village is concerned it will price aged residents right out of their homes.

In an effort to combat the growing problem, the village wants to focus new housing along main thoroughfares with easy bus access and bike infrastructure, and is aiming for smaller homes and apartments geared towards aging-in-place and senior communities. The village notes that 500 to 600 units of housing could potentially be developed over the next few decades (note Lansing averages ~10 units per year), mostly on the large, low-density home lots near the lake. These would almost certainly be geared towards the highest income brackets, but the benefit of greater supply might relieve pressure on other homes.

On the business end, the village would also like to encourage Cornell to relocate back-office and research operations to village sites. There’s also a push for senior-oriented businesses and a possible rethinking of the malls, not an uncommon thought in this age where malls are struggling and dying off.

There are arguably two senior developments planned that already fit their “want” category – the 12 senior units planned for the Lansing Meadows PDA (the ones planned next to BJ’s on Oakcrest Road), and 62 senior units for the CU Suites site on Cinema Drive (photo from last week above). Other residential growth will be fairly “organic”, with new homes built at the whim of owners and mom-and-pop builders. A new commercial medium-traffic zone along Hickory Hollow Drive might open some more business opportunities; as for Cornell, they seem to be more focused on their East Hill Village plans, but research park tenants are always a possibility.

The village plans to update its comprehensive plan again by 2025.

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3. On the topic of plans, here’s a progress report just released by the Ithaca Urban Renewal Agency regarding its five-year plan.

If you wanted another reason why housing in Ithaca is so expensive, the plan alludes to it here:

“A spike in local construction costs has delayed the start of construction on a planned four-unit first-time homebuyer project and a public facilities project that will improve a public recreational area. We anticipate these projects moving forward once they have been able to close their funding gaps.”

The four-unit homebuyer project is the townhouse project planned by INHS for 402 South Cayuga Street (shown above). INHS director Paul Mazzarella said the project was due to receive bids last month, and if they were within INHS’s budget, it would start construction. It hasn’t started.

Ithaca’s a small labor pool, so you either truck in labor from elsewhere and incur the wrath of construction unions, or you go local and pay a premium. But even then, with the relative burst in activity as of late, the local pool is getting tapped out and that’s driving prices up. Non-profits like INHS don’t have a lot of wiggle room in their budgets, and city government just won’t build if they can’t get affordable bids for infrastructure work. It also impacts programs that provide low-cost home repairs to those with low and fixed-incomes, because those low-cost repairs are no longer low-cost, and fewer people are able to be served.

One could one look at this as either a reason to limit approvals (which the construction trade unions are opposed to) or introducing more out-of-town labor to the market (which the trade unions are also opposed to). Stuck between two metaphorical rocks.

So long story short, in a region where the cost of housing is climbing dangerously fast, the city has a lot of work left to do meeting its affordability goals, with many actions/programs falling well short of annual numbers needed to meet the 5-year goal statistics. Hopefully some progress will be made in the upcoming year.

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4. The mayor has dealt State Street Triangle a serious blow by announcing his opposition to the State Street Triangle, first reported on his facebook page and picked up by every news outlet in town, Svante Myrick cited the student housing focus and massing concerns for his opposition (he explicitly stated the height, 11 stories and 116 feet, was appropriate for its location, the 300 block of East State Street in the heart of downtown Ithaca). This is a big setback because apart from his social influence, the mayor sits on the county IDA, which is the governing body that votes on tax abatements.

A couple of the outlets have reached out to Campus Advantage, which is busy trying to formulate a response. They’ve hired a PR firm for whenever they’re ready. It could be the end of the project, it could still go on, it could be drastically altered. The chips have been tossed into the air, let them fall where they may.

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5. House of the week. This week, a trip out to Maple Ridge in Dryden. Maple Ridge is a housing development within the village that had the unfortunate luck of launching right before the Great Recession. After struggling, it’s been picking up in the past couple of years with five houses built since 2013. This modular home is the “Cayuga Lake” model offered by American Homes in Dryden. The pieces have been assembled and fastened together on top of the poured foundation, and some finish work has started. The uncapped foundation section is most likely a future garage. Modular homes tend to move through construction pretty quick, and this one will likely be finished in time for the holidays.

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6. The county and city hosted a meeting discussing possible waterfront re-development plans for the NYS DOT site on Thursday night. Three plans were presented, two mixed-use commercial and residential, and a third that the Journal describes as just being “hotel”, but given the 7.66 acres on site, is probably mixed-use with a hotel component.

The third option is a little bit of a throwback because the city long-saw the waterfront as prime for a hotel. But the market has shifted towards downtown and Route 13, and with the market adding new hotels at a pretty good clip over the next few years (Marriott, Canopy, Holiday Inn Express), a hotel in that area is pretty unlikely. Local lawyer/developer Steve Flash proposed a five-story hotel on Inlet Island in 2007, but in the days before the waterfront zoning allowed five floors, the project was opposed and shelved.

An initial cost of the move is being pegged at $14 million, but it isn’t clear if a potential buyer would pay that directly, or the county/city, who then get reimbursed by a buyer. $14 million is quite an amount, but given the site’s potential, it’s feasible (but don’t expect any outside-the-box thinking; a developer will want to minimize risk since they have to make such a huge initial investment).

If anything is clear, it’s that, contrary to the opinion of at least one speaker at the meeting, most folks would like the snow plows and road salt stored somewhere else.

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6. I don’t comment on politics. I don’t comment on candidates. But I will comment on issues. And, probably no surprise to readers here, I find it worrisome when anti-development candidates come forward.

By and large, development in Ithaca isn’t happening “for the sake of development” like in the 1990s, when the local economy was mired in recession. It’s happening because the Ithaca area has added 6,000 jobs in ten years, mostly in healthcare and education. Cayuga Medical Center has added over 500 positions in 10 years, and while Cornell’s direct employment hasn’t changed much, the university has added nearly 2,500 students. That has created demand for thousands of units, but when combined with the slow pace of development within the county over the past decade, the result has been a critical housing deficit.

This is one of the major reasons behind the current affordable housing crisis – high demand, plus insufficient increases in supply, have resulted in very low vacancy rates and have made it a seller’s paradise when it comes to housing.

If you plan on selling your house or rental property and retiring to Florida in the next couple of years, you’re in for serious bank! Everyone else, whether through rents or increased tax assessments, ends up with a much greater burden. Housing costs are a big player in how Ithaca became the 8th most expensive city in the country.

If there are thousands of people coming here for work or retirement, and new housing isn’t there to absorb them, the wealthier folks moving in will simply pay a premium on what exists, and price out the existing working and middle class who can’t afford those premiums. Which some people are okay with.

Ithaca doesn’t need to “slow down” development, because that’s one of reasons why the affordability crisis is as bad as it is. What Ithaca needs is to be proactive about development, and generally it has been under Mayor Myrick. The city has actively worked to reformulate general guidelines like the Comprehensive Plan (first all-new plan since 1971!) and is starting work on part II, working on neighborhood-specific themes. Myrick’s government has also identified and maintained targeted development areas, like Collegetown’s Form Zoning and downtown density. The mayor has even come to bat for the $30k-$50k/year working class folks that “breed trouble” and need affordable housing, like with INHS’ 210 Hancock project.

Affordability is a long-term effort and a multi-pronged approach, by keeping vulnerable families in their homes, and providing new homes to accommodate the growing economy and population.

There’s still a lot of work to do, but hell, it’s a start. Sticking fingers in ones’ ears isn’t going to make the housing crisis go away.





News Tidbits 9/26/15: Trying to Keep Tabs

26 09 2015

1. It’s rare for a substantial project to go completely under the radar from start to finish. Except that’s pretty much what happened with the following building.

Tompkins Cortland Community College (TC3) recently finished renovations to two of their dorms on their Dryden campus. Along with the renovation of about 41,000 SF of existing space, the two dorms were connected by a new 3-story, 10,000 SF addition designed by Ithaca’s HOLT Architects. The existing dorms sat at a 90° angle to each other, so the addition by HOLT creates a single, L-shaped structure, with the expansion holding common space and amenities. Binghamton construction firm William H. Lane Inc. handled the build-out. The image above comes courtesy of HOLT’s website.

Technically, it did come up once on the blog, but it was misinterpreted. When William H. Lane announced it was opening an Ithaca office to handle the growth in their Ithaca/Tompkins work, one of the examples given in the Binghamton Press & Sun Bulletin was a dormitory expansion at TC3. At the time, I had done a search for the project and filed an inquiry with TC3, but there was no response, and my search only turned up renovations underway for the main classroom building. I assumed there was a miscommunication, so…oops.

2. In real estate sales, it looks like a couple of the smaller developers were in buying mode this week. Lansing’s SDM Rentals (Scott Morgan, owner of SDM Landscaping) bought a vacant 2.93 acre parcel at approximately 455 West Dryden Road in the town of Dryden for $21,000 on the 23rd. If past behavior is any indication, Morgan will probably be looking to do rentals, likely a few townhouses on the property. Currently, Morgan is planning 8 duplexes (16 units) at 543 Asbury Road in Dryden, which may or may not have a zoning issue. Morgan is also building out on Bone Plain Road in Dryden, and owns the recently-built Meadowbrook Apartments (14 units in the form of duplex townhouses) at 393 Peruville Road in Lansing.

Meanwhile over in Danby, Chris Petrillose of Petrillose Properties picked up a 2.11 acre parcel along the 400 block of Troy Road for $34,000. Given that that area has seen a lot of scattered small-scale development (1 & 2-family homes) in the past few years, and that Petrillose finished work on duplexes in Ithaca town, a couple rental units seems likely.

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3. How well was the Hotel Ithaca received? Let’s quote IJ Reporter Nick Reynolds’ Twitter:

Many sweet, way-over-my-head architecture burns thrown tonight. Let’s just say you guys aren’t getting a Hotel Ithaca update anytime soon.”

The primary complaint focus not on function but on form – according to the IJ follow-up article, materials and a dated design were dinged by board members (and comments about “LEED-certified stucco” and comparisons to the Bellagio didn’t help). NH Architecture’s portfolio tends to be the same general design, which means they’re going to have to go the extra mile on this one, or developer Hart Hotels might need to switch up their approach. Their Belhurst Castle Hotel design isn’t bad, so maybe they can channel some of that creativity into the downtown Ithaca site.

So rest assured, “Cornell PhD”, those cross-hatches aren’t making it off the drawing board anytime soon.

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4. A few years ago (spring-summer 2012), the city planning board reviewed and approved a large project for the Ithaca waterfront called “Cascadilla Landing“. The three-phase, 183 unit project called for 6 units in duplexes, 11 townhouses, and the remainder to be built in 5-story apartment buildings designed by Ithaca architect John Snyder (the same gentleman behind the Carey Building addition). The first phase called for two buildings and 92 units, Buildings “C” and “D” (“C” shown above). So the project was approved and then…nothing. Never got off the ground.

However, the impending closure of Johnson’s Boatyard on Pier Road is piquing my curiosity. Now, initially it seemed highly unlikely because I thought Cascadilla Landing had never been fully approved (in fact, it received preliminary approval in September 2012 – thanks Noah). But since it was approved, all an ambitious individual would have to do is simply re-apply for approval if there are no changes to the plan (PB approval is only good for 2 years – part of the reason why Harold’s Square was back before the board last month). It’s still unlikely that the project is moving forward soon, but not impossible. A phone call to Snyder’s office and a call to Pier Road Properties (the developer as represented by accountant Andy LaVigne on the application materials) have so far not been returned.

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5. Preliminary, but it’s nice to see work progressing on the Chapter house redevelopment. Voice article here. The key thing to stress here is that there are design studies, and they’ll be subject to the ILPC’s whims. It looks like making the fourth floor of the Chapter House habitable or not is something that’s still being debated, along with the plans for the still-standing 408 Stewart. It’s hard to believe that things will be ready in August 2016, given that there’s no formal application yet, and the languid pace projects like this go through the commission.

Also, it was extraordinarily difficult to get a hold of most of the relevant parties for the article. Neither architect responded, I couldn’t get a hold of city Historic Preservation Planner Bryan McCracken…thankfully, Jerry Dietz was happy to assist, and although I felt a little bad calling ILPC Chair Ed Finegan since he has no formal part in the project itself, he was a big help. Both were keen to stress the preliminary aspect of this project, which hopefully came through in the article.

But I’ve just about had it with responding back to commenters on the Facebook article.

 

 





News Tidbits 1/31/15: History Comes Alive

31 01 2015

With no new projects before the city planning board, and the town cof Ithaca ancelling its planning meetings twice in a row (something that happens only once every couple years), the end of January is shaping up to be a slow period. But that’s not to say there’s no news at all.

1. From the twitter account of local firm Jason K. Demarest Architecture:

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No details in the tweet, but I’m getting the impression that the Shen family, who own the Simeon’s building, hired Demarest as the architect for the reconstruction. If that’s the case ( it seems likely, given that the firm handled the expansion of Simeon’s resutaruant in 2009), and this is a preliminary design, then I can only express the greatest of joys that the south facade will be sympathetically rebuilt to its former charm and glory. Fingers crossed.

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2. Sticking with the history theme, the city ILPC (Ithaca Landmarks Preservation Council) is considering another historic district, a seven-building district in central Ithaca being called the “Titus-Wood Historic District“. I can think of two reasons for this plan:

I. A historically notable carriage house at the back of 310 W. State Street has been threatened with demolition, much to the dismay of local preservationists. If designated, demolition becomes much more difficult (an “economic hardship” clause has to be invoked and approved by the council).

II. The West State corridor is a target for development under the new Ithaca Comprehensive Plan, which could potentially put the other buildings at risk in the long term.

There’s been no major opposition to the proposal so far, so this is probably good for approval at their next meeting.

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3. Also in the same ILPC meeting, a single-family home at 421 N. Albany Street is being considered for historic designation. The house was home to a precursor of the Alpha Phi Alpha fraternity who have sought to purchase the property and restore it as a historic fraternal landmark. The African-American fraternity (the first fraternity of its kind) is also raising money to build a monument at 411 East State Street (shown above, zoning appeal application from last summer here). The 411 East State site is owned by Travis Hyde Properties, and the national fraternity appears to have negotiated use of that part of the property for its monument.

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4. Courtesy of the Ithaca Times, we now know the renovation of the furniture store at 206 Taughannock will yield seven apartments and commercial space. The Lehigh Valley House building being renovated next door (covered by Ithaca Builds previously) will host a satellite office of the IPD on its ground floor, with six condos on the upper two floors. 206 Taughannock is being developed by Mark Zaharis, and Lehigh Valley House by Tim Ciaschi.

If Ithaca has any sort of “warehouse district” like the larger cities, Inlet Island is probably the closest comparison. Traditionally, it’s been a blend of commercial and industrial uses, and low-income families whose homes were lost to the construction of the flood control channel in the mid-to-late 1960s. In recent years, with the passage of more amenable zoning and increasing interest/rising land values in Ithaca city, the island and West End have started to receive attention from developers. In the past year, the aforementioned two projects and the 21-unit 323 Taughannock have been proposed and/or started construction, and interested parties are rumored to be waiting on the sidelines, ready to propose their own projects based on the success of these pioneers. Among those interested parties are Tom[kins County and the city of Ithaca, who are busy persuading the state to sell or move out of underused properties so that they can be made available for development.The city has had a strong interest in redeveloping the island for decades.

I think the potential is here for substantial development, and so far, the projects underway are doing well; it’s not remiss to suggest there will be more in the next couple years. But the idea of development is still controversial, with concerns of traffic and loss of local character. I have no doubt it will be a spirited debate.

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5. The charitable trust of the Al-Huda Islamic Center has officially purchased the land that will hold the Ithaca area’s first stand-along mosque. The vacant parcel at 112 Graham Road in Lansing was purchased for $64,900 on January 29th. The special permit for a religious building was approved by the village back in August of last year. The cost of construction is expected to be in the range of $600,000, which is to be raised through donations. I have no idea how close they are to their goal, but the land purchase is auspicious.





News Tidbits 1/24/15: Down On the Waterfront

24 01 2015

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1. This week, the county decided to move forward with a feasibility study for moving the NYS DOT site from its current location along the inlet to a site in Dryden. The $78,000 award (of which $56,000 is covered by a state grant) was made to Rochester-based Fisher Associates, who are leading a group that includes NYC-based HR&A Advisors, local firm Trowbridge Wolf Michaels Landscape Architects, and Binghamton-based BCK/IBI Group Architects. Seven companies/consortiums vied for the study.

Readers might recall an RFP was issued back in July for the feasibility of moving the NYSDOT maintenance facility, which would make available a large and desirable property that the city would like to see redeveloped. The study is due to be completed in May, and if it looks like the move is doable (i.e. the county and city can cajole the perenially-reluctant DOT), the site could be sold to the highest bidder and begin redevelopment in early 2017.

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2. In keeping with the waterfront theme, here’s a couple interesting chunks of info from the IURA Governance Meeting agenda for the 21st. In a discussion of revenue-generating opportunities,  the IURA notes redevelopment opportunities on some of its parcels – one, 324 E. State Street, is already planned out, it’s the site of the 123-room “canopy Hotel” by Hilton.  Another is 410-426 Taughannock Boulevard (red outline in the above image), which could occur in conjunction with a state-owned neighboring parcel owned at 508 Taughannock Boulevard (orange outline), a property in the process of being purchased by the city. Though 410-426 has been noted to have environmental contamination, the interest in the waterfront and Inlet Island recently (323 Taughannock, Lehigh Valley House, 206 Taughannock) leaves the door open to a developer with the means and interest. This will be a site to keep an eye on in the long-term.

Also worth a brief mention is the planned purchase of a small vacant lot at 420 N. Plain Street. The house on that site was demolished after it was sold to NYSEG in 2011. What will most likely happen is a transfer of the property to INHS for redevelopment into a 1 or 2-family home.

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3. The first run of the December job numbers are out, and Ithaca is sitting pretty. When compared to December 2013, the Ithaca metro added 1,200 jobs, an increase of 1.7%. For the month, Ithaca’s growth in New York State was surpassed only by New York City’s 2.3%. For the whole year of 2014, preliminary figures suggest that Ithaca’s 1.8% job growth was the fourth-greatest of the 14 state metros, following NYC’s 2.7%, Kingston’s 2.2% and Albany-Schenectady-Troy’s 2.1%. Kingston is an even smaller job market than Ithaca, Albany is nearly 6x larger (and is growing thanks in large part to its tech boom), and NYC is NYC, dominating the state with nearly 100,000 more jobs year-over-year, thus solidifying control over the state, northeast, USA and perhaps in their minds, world and universe.

The federal BLS website has yet to be updated as of today, so I can’t give the breakdowns on what market sectors gained jobs.

On the one hand, the numbers are auspicious, the region is growing economically. On the other hand, when the entire county adds a couple hundred housing units per year, this is exacerbating the housing problem. At a glance, I’d suggest there are more commuters from the surrounding counties than there were in December 2013.

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4. I stumbled upon these a couple of weeks ago, but they keep slipping off the radar. The above images are samples of the work being done by local architecural firm STREAM Collaborative for the proposed 130-unit development off of Troy Road in the town of Ithaca. The project consists of apartments, townhouses and single-family homes targeted towards the “middle-income demographic”, according to the architect’s website. I don’t know how relevant these drawing are the current design (the site plan looks current), but the images make for some nice eye candy.

I think it would be really cool if the apartment buildings rotated between the four styles in the last image – one craftsman apartment building, one stick victorian, and so on. Variety is the spice of life, the old saying goes. What say you, dear readers? Any one design more preferable than the others?

5. It is a sad day – not a single new sketch plan is schedule for next week’s Planning Board meeting. That’s the first time that’s happened in several months at least. This week’s town of Ithaca Planning Board meeting was cancelled, and the town of Lansing is only reviewing 7 lots of a new lakeside housing development (Novalane). It has all the makings of a dull week ahead. A shame too, given that a developer usually has to have several meetings with the Planning Board, it would make sense to propose something now if they wanted to get started during the warmer months of 2015.

But not all is doldrums and scanning news feeds. From an IURA meeting, the Dept. of Planning, Zoning, Building and Economic Development released its annual report. There were a couple projects I was not aware of, that have yet to go under review but are nevertheless out there for analysis, and one of those will be shared here on Tuesday.

A few brief notes:

*The city noted that TJ Maxx is moving into the city, so I’m making an educated guess that the Lansing location will be shutting down once the new space next to Hobby Lobby is ready.

* The Ithaca Gun apartment proposal, while not under any formal review at the moment, is described as having 50 units.

*The department still considered 130 E. Clinton an active project – although it is approved, don’t expect much.