WEBVTT 1 "" (0) 00:00:00.000 --> 00:00:01.324 I mean, do the. 2 "jspaeth@cityofutica.com" (701678592) 00:00:01.324 --> 00:00:32.580 So then go right to the bottom. Yeah, so we can get them, get them moving. Yeah, it's called meeting to order minutes 3 April 2024 2nd, ok. So move it. Next set 17 May 2024I get a motion to approve. I make a motion, 2nd. 3 "jspaeth@cityofutica.com" (701678592) 00:00:32.580 --> 00:00:52.580 All favor? Hi Jack or Bob. So again, I Bob, I kind of introduced your project just a little bit. So Bob Kelly is the executive director for, well, former MHA, now people 1st. 4 "jspaeth@cityofutica.com" (701678592) 00:00:52.580 --> 00:01:08.250 We've been doing a number of projects with them. This involves a new project that they have called AMP one and it is will be located to the Ndy Peters FX Matt and Adrian Terrace site. 5 "jspaeth@cityofutica.com" (701678592) 00:01:08.250 --> 00:01:28.250 So Bob, take it away and just kind of thank you for the opportunity. We are in a position to try to reposition our entire portfolio. Amp one consists of FX Matt, Andy Peters and Adrian Terrace located on Armor driving Overrad. 6 "jspaeth@cityofutica.com" (701678592) 00:01:28.250 --> 00:01:51.890 Immediately adjacent to the Community Health. It has 361 units. The municipal housing authority is one of the 1st six housing authorities created in this country back in 1930 7 % public housing 1937. And Adrian Terrace was built and opened in 1939. 7 "jspaeth@cityofutica.com" (701678592) 00:01:51.890 --> 00:02:10.050 So despite the fact we tried to do a pretty good job maintaining the site and the buildings, we've reached the stage of functional obsolescence with regards to all of our buildings and in particular ample one. So over the course of the last couple of years, we've been working. 8 "jspaeth@cityofutica.com" (701678592) 00:02:10.050 --> 00:02:26.130 Collaboratively with a co developer called Vicino Group, they're currently our co developer on the remodeling of chancellor apartments and the adaptive reuse of the broad Street warehouse into affordable housing to try to. 9 "jspaeth@cityofutica.com" (701678592) 00:02:26.130 --> 00:02:43.470 Position ourselves to tear down the entire complex in that one and rebuild them. We've had preliminary discussions with HCR. The numbers quite frankly are staggered, you know, you're talking about a $285000000 and. 10 "jspaeth@cityofutica.com" (701678592) 00:02:43.470 --> 00:03:00.570 Done in two funding phases, one being a 9 % funding application that will go in, in the end of this month. And, if we're awarded, we'll start construction in spring. 11 "jspaeth@cityofutica.com" (701678592) 00:03:00.570 --> 00:03:25.447 For summer of 2025 and will encompass the tearing down of three buildings at Ndy Peters and the erection of a new 65 unit building on the grounds where the demolition takes place. Phase two will be a funding application that will go in concurrently with our 9 %. 12 "jspaeth@cityofutica.com" (1829996288) 00:03:25.447 --> 00:03:39.990 And that will see the demoing units and that will hand $250000000 endeavors, so the 1st phase is $35 million. 13 "jspaeth@cityofutica.com" (1829996288) 00:03:39.990 --> 00:03:57.210 Oh, we've gotten nothing but positive reviews from the state in terms of their support for this endeavor. One of the key elements with regards to this project is the fact that it's located in a integrated community, not a segregated. 14 "jspaeth@cityofutica.com" (1829996288) 00:03:57.210 --> 00:04:14.310 Affordable community that stands by itself, it stands out like a sorehole, but it's integrated within an existing class neighborhoods so they're very, very receptive to a funding initiative. The only hiccup that we've experienced is, is that. 15 "jspaeth@cityofutica.com" (1829996288) 00:04:14.310 --> 00:04:31.739 Shippo has indicated that there's some, they believe that there's some historical significance with regards to the 1939. They were in town here on 26 July we did a tour and had discussed post tour discussions with them. 16 "jspaeth@cityofutica.com" (1829996288) 00:04:31.739 --> 00:04:48.539 They have resigned themselves to the fact that these buildings really don't have historical significance. So we're, we've retained a, a consultant to work with a Shipo to generate a memorandu memorandum of agreement. 17 "jspaeth@cityofutica.com" (1829996288) 00:04:48.539 --> 00:05:06.749 That will allow us to tear down Adrian terrifts. There's some mitigating circumstances and there's some things that we will do from the historical prosec perspective to acknowledge the significance of those buildings from 1939. 18 "jspaeth@cityofutica.com" (1829996288) 00:05:06.749 --> 00:05:26.749 We will retain some things like the windows cells which are all granted and we're gonna re utilize them in, in the new facility. Some of the the stairwell railings are unique, they will be preserved and be utilized and reconstruction. There's several other mitigation factors with historical exhibit that will be. 19 "jspaeth@cityofutica.com" (1829996288) 00:05:26.749 --> 00:05:31.199 Permanently displayed in our community center so that we can. 20 "jspaeth@cityofutica.com" (1829996288) 00:05:31.199 --> 00:05:50.009 Retain the historical significance of of the site in the buildings. But we're excited about it. We believe that we have a responsibility to enhance the quality of life with the people that we serve. Living environments are truly a a prominent. 21 "jspaeth@cityofutica.com" (1829996288) 00:05:50.009 --> 00:06:06.659 Responsibility and something that the residents take great interest in. We're asking for a deviation from your normal pilot and and I will say this with regards to the deviation. We're not a, we're not a foreprofit entity. 22 "jspaeth@cityofutica.com" (1829996288) 00:06:06.659 --> 00:06:24.449 So any and all of our net income that's derived from projects like this, go back into the project, go back into serving the needs of the residents that we have and talking about people that are vulnerable and poor and disabled in other. 23 "jspaeth@cityofutica.com" (1829996288) 00:06:24.449 --> 00:06:44.449 Or are utilized for purposes of generating pre development or paying for pre development expenses for other initiatives that we're looking to to generate within the community. So it doesn't go in anybody's pockets, it's not spent for previous meetings spent for the needs of the community, people that we serve. 24 "jspaeth@cityofutica.com" (1829996288) 00:06:44.449 --> 00:06:49.319 And for that reason we're we're we're asking for the DB. 25 "jspaeth@cityofutica.com" (1829996288) 00:06:49.319 --> 00:07:06.209 What do you do with the tenants over there when you're. That's the that's the biggest issue that we're going to experience. We have approximately a thousand residents that reside there. Phase one is only gonna displace 28 units. 26 "jspaeth@cityofutica.com" (1829996288) 00:07:06.209 --> 00:07:21.929 And so what we'll do, come late fall, we'll start taking units offline. So when units become vacant, we will not fill refill them. So we intend to utilize our existing. 27 "jspaeth@cityofutica.com" (1829996288) 00:07:21.929 --> 00:07:41.929 Inventory for purposes of the 1st phase, and then when we get to the 2nd phase, which will displace a, a, you know, hundreds of people, we're going to have to come up with a true relocation plan. We've hired an entity that we're utilizing on chance to abroadcall. 28 "jspaeth@cityofutica.com" (1829996288) 00:07:41.929 --> 00:07:43.319 Closing the homes. 29 "jspaeth@cityofutica.com" (1829996288) 00:07:43.319 --> 00:08:02.519 Out of Boston Massachusetts. They've done a wonderful job, so we're in the throes of putting together a relocation package. And one of the things that we're, we're looking at is maybe we can have some set aside units at Broadstreet, 74 units that that will be ready for occupancy. 30 "jspaeth@cityofutica.com" (1829996288) 00:08:02.519 --> 00:08:18.779 From the Q1 2025, set some of those units aside so that we can we can utilize those for purposes of relocation, but it's gonna be a challenge. Great question. Questions from anybody else? 31 "jspaeth@cityofutica.com" (1829996288) 00:08:18.779 --> 00:08:34.889 Sounds like a great project. Yeah, and we look forward to it, yeah. Oh I get it start is interesting and what's your financing doc again? So, we're the financing is a 9 % deal. 32 "jspaeth@cityofutica.com" (1829996288) 00:08:34.889 --> 00:08:53.399 From a const a construction standpoint city has provided us with a commitment letter for phase one, and they have interest obviously in phase two and Boston Financial will be the permanent financer once the construction is completed. 33 "jspaeth@cityofutica.com" (1829996288) 00:08:53.399 --> 00:09:12.899 And what's the nature of the deviation? On the pilot? Three and a half percent. Exposed to 7 %, correct? Yeah. Have we done three and a half? We have over at. 34 "jspaeth@cityofutica.com" (1829996288) 00:09:12.899 --> 00:09:32.729 Sunset. And then, HPA coming up is in that same. Yeah. I think we also did Jacket Chanceler. Oh yes, you're right. Yeah, because it was existing, it was an existing building versus building new. Yep. 35 "jspaeth@cityofutica.com" (1829996288) 00:09:33.959 --> 00:09:53.669 And we currently, we currently despite the fact that we're now exempt, we currently pay taxes, we currently pay, make payments to the city of under a cooperation. Cooperation agreement for all of themselves, so it's it's not as though we take advantage of the tax exemption, there is, and it's a formula driven of payment. 36 "jspaeth@cityofutica.com" (1829996288) 00:09:53.669 --> 00:10:09.389 So every year it changes in terms of scope and amount, but there is for all of our sites. And how does this three and a half percent compare to what you're currently paying under the cooperation agreements? Is it? It's considerably more. 37 "jspaeth@cityofutica.com" (1829996288) 00:10:09.389 --> 00:10:29.389 Okay, that's If if you allocate the payment, it's considerably more. I think the gross payment over the course of the last couple years has spent in the hundred and 50 to a hundred and $75000 range for our global portfolio, not, not just this particular but our global portfolio, so this will be. 38 "jspaeth@cityofutica.com" (1829996288) 00:10:29.389 --> 00:10:49.849 Substantially more than the day. So by the agency deviating, you'll actually be generating more revenue for the checks and jurisdictions than correct ok and people 1st amp, is going to be what type of corp. 39 "jspaeth@cityofutica.com" (1829996288) 00:10:49.849 --> 00:10:50.729 Creation. 40 "jspaeth@cityofutica.com" (1829996288) 00:10:50.729 --> 00:11:10.729 But we're gonna create an LLC, so people 1st example will be an LLC that will be the ownership entity, for, this particular site. And that will be a foreprofit. That has to be a foreign. Then you will create an you know an HDC that will, that will. 41 "jspaeth@cityofutica.com" (1829996288) 00:11:10.729 --> 00:11:27.449 Operate and manage and develop the site. That's standard. Sounds like a great project. Yeah. Much needed in that area. Yeah, I mean the the the you know despite. 42 "jspaeth@cityofutica.com" (1829996288) 00:11:27.449 --> 00:11:47.449 Concerns within the community that that we have too much affordable housing within this community. If you, if you come down to my office and you see the people that walk in on a daily basis unannounced and have NO place to go living out of their their car. 43 "jspaeth@cityofutica.com" (1829996288) 00:11:47.449 --> 00:12:03.599 Disabled vulnerable 28 % of the population in the city of Utical was under the poverty level based upon the, the last census. So that the band and the need is there, number one, number two. 44 "jspaeth@cityofutica.com" (1829996288) 00:12:03.599 --> 00:12:23.009 The fact that our four fathers put public housing in this community in areas of, of, wealth, is a credit to them because usually they segregate these types of populations and these type of projects in areas of of light and despair. 45 "jspaeth@cityofutica.com" (1829996288) 00:12:23.009 --> 00:12:38.099 So we're, we're on, we're unusual, but there's a huge demand huge demand in the, you know, we're gonna be here with the community foundation in front of you in September I hope on another project within Cornhill. 46 "jspaeth@cityofutica.com" (1829996288) 00:12:38.099 --> 00:12:53.909 Which is a unique project for any comments to it. Community Foundations is the 1st venture that they're going into being an actual owner rather than just a funder. 47 "jspaeth@cityofutica.com" (1829996288) 00:12:53.909 --> 00:13:13.909 And I, I I I'm happy with that. The fact that they chose us as a co owner and co owner, so. So Bob, your perspective tenants, is there any mix that will arguably be employees that are, you know, feeding local businesses or? Oh, absolutely. Yeah. 48 "jspaeth@cityofutica.com" (1829996288) 00:13:13.909 --> 00:13:29.969 Absolutely. I mean we have approximately 25 people that carpool every morning at 04:00 in the morning from to go to Turboni. No, perfect. 12 h shifts. Yeah. So we're gonna let that go. These these are the type of people that. 49 "jspaeth@cityofutica.com" (1829996288) 00:13:29.969 --> 00:13:49.969 Are filling them out hiring signs that we've seen since COVID within the community. So, they're, you know, the stigma is that they're just part of the entitlement work, but the vast majority of them are working. That's. That's very important for our mission is, you know, contributing to. 50 "jspaeth@cityofutica.com" (1829996288) 00:13:49.969 --> 00:13:55.529 To the economic prosperity of, you know, local employers and that type of stuff. 51 "jspaeth@cityofutica.com" (1829996288) 00:13:55.529 --> 00:14:12.899 You're checking the boxes? Probably speaking to the need of, of low income housing, what is your vacancy rate? I mean, are you pretty much full across? Yeah, I mean we're our our our occupancy rate is 98 %. 52 "jspaeth@cityofutica.com" (1829996288) 00:14:12.899 --> 00:14:28.319 And, the other 2 % of our units that, that need some renovation, otherwise it would be at a hundred percent, so they were we were told a long time ago that with all the new affordable housing that's taking place. 53 "jspaeth@cityofutica.com" (1829996288) 00:14:28.319 --> 00:14:43.589 That they would put us out of business and and very honestly the the contrary has occurred. And one of the fact that our name, our name change is a reflection of what our priority is and the priority should be the individual, not the key. 54 "jspaeth@cityofutica.com" (1829996288) 00:14:43.589 --> 00:15:00.749 Right, and that's what we prioritize the individual, not the key, and as a result of prioritizing the needs of people, and and and despite the fact that our units are the 1st one to acknowledge our old and are beyond the ability to utilize band aids, we really. 55 "jspaeth@cityofutica.com" (1829996288) 00:15:00.749 --> 00:15:16.709 Turnicates on these units and and tear them down despite that, our occupancy ranks have gone up over the course of the last five years. Our retention levels have gone up over the course of the last five years. People recognize when you, when you care about them. 56 "jspaeth@cityofutica.com" (1829996288) 00:15:16.709 --> 00:15:31.769 And you know them by their individual names that goes a long way. And so we're not driven by the bottom line. We're, we're cognizant on the bottom line but not driven by the bottom line. And, when you take care of people. 57 "jspaeth@cityofutica.com" (1829996288) 00:15:31.769 --> 00:15:51.089 The the tendency despite the fact that old units is that they want to stay. Good. Thanks for your dedication. Appreciate that. Where do we go from there Jack? So the reason Jack wanted mr. Kelly to come in and give this presentation is. 58 "jspaeth@cityofutica.com" (1829996288) 00:15:51.089 --> 00:16:11.089 The idea is not in a position right now to adopt an inducement resolution because seeker hasn't been addressed by the lead agency. As you described, there was the shippo arrangement that needed to be worked out, but Jack tells me that the planning board will look at this. We're hoping that Bob has some revised let. 59 "jspaeth@cityofutica.com" (1829996288) 00:16:11.089 --> 00:16:28.679 To be put to the before the planning board on the 15th I believe it is, and then from there in our subsequent meeting on the 21st of this month, then we would be, if we had the seeker, then be able to induce this project and then pass the. 60 "jspaeth@cityofutica.com" (1829996288) 00:16:28.679 --> 00:16:43.709 The approve the secret resolution also. I would just, just, just say this just so you can understand our timeline. The 9 % application is not something that can be submitted. 61 "jspaeth@cityofutica.com" (1829996288) 00:16:43.709 --> 00:17:00.419 On a ongoing basis. 4 % applications can be submitted anytime during the course of the year. 9 %, you have one round. You speak to the round, you have one round. Right. The deadline for submission of a 9 % application. If we do not, and I'm not. 62 "jspaeth@cityofutica.com" (1829996288) 00:17:00.419 --> 00:17:15.449 I'm not putting any pressure. I'm just giving a factual scenario. If we do not have a pilot, a final pilot by 18 September, our application is dead on. When you say final pilot, you mean. 63 "jspaeth@cityofutica.com" (1829996288) 00:17:15.449 --> 00:17:35.449 Final approval on that solution. Okay. Okay, final approval. So I know we have to have a public hearing with regards to these things, but if we don't have that, we will then our project will be delayed by a year because the the next round of the 9 % applications is next September, August or September. And what is your. 64 "jspaeth@cityofutica.com" (1829996288) 00:17:35.449 --> 00:17:55.319 Confidence, pardon me that will have that letter in time. We've asked for the planning board and we've asked for it. We have a meeting scheduled next Wednesday with shippo efficihers and our consultant here in Yuken. And so we're gonna, we're gonna try to finalize the terms of that MOA that we've referenced. Okay. 65 "jspaeth@cityofutica.com" (1829996288) 00:17:55.319 --> 00:18:15.319 Okay. So seeker 08:15 UIDA the 21st, so we would call for public hearing if it'd have to be like right after Labor Day, right? Yeah. And then your meeting would be right after that week or maybe the next week? Yeah. Yeah. 66 "jspaeth@cityofutica.com" (1829996288) 00:18:15.319 --> 00:18:35.749 Whatever it is. So yeah, inducement public hearing, and then we have to do the final resolution approving that. So the purpose of mr. Kelly coming in today to give this presentation is to make sure that if there were any questions at this time, they could be addressed. 67 "jspaeth@cityofutica.com" (1829996288) 00:18:35.749 --> 00:18:50.669 Test before he submits the final application to be considered because of this tight timeline, we just didn't want to take any chances of, you know, the board was too far down to table it at the next meeting for lack of information, so. 68 "jspaeth@cityofutica.com" (1829996288) 00:18:50.669 --> 00:19:10.669 I don't think it'll be a problem. Okay. Any questions? Thank you. Thank you for the. If you can have Rick provide me with all the rest of everything. Thank you very much. 69 "jspaeth@cityofutica.com" (1829996288) 00:19:10.669 --> 00:19:28.709 Thank you. That's a good project. Yeah, if I was old when I was playing for Adrian. I mean when I was a kid there. Right. Like Gilmore Village than Adrian Terrorist. 70 "jspaeth@cityofutica.com" (1829996288) 00:19:28.709 --> 00:19:43.979 Yeah. Okay, ok. Old business. Old business in your on your agenda, you will see that there are hotel street owners, people 1st broad in chancellor and 1400 broad. 71 "jspaeth@cityofutica.com" (1829996288) 00:19:43.979 --> 00:20:03.979 I have, at the time I had called and got a consensus for the extension of the sales tax exemptions, as well to perceive, as you know, we generally give the sales tax exemption for one year and then after that, even if someone says, well, my construction period is going to be maybe 18 months or 20. 72 "jspaeth@cityofutica.com" (1829996288) 00:20:03.979 --> 00:20:04.799 Four months. 73 "jspaeth@cityofutica.com" (1829996288) 00:20:04.799 --> 00:20:24.799 I, we still only give it in six month increments, that way we can kind of manage the project and make sure that they're moving along. We know what their numbers are et cetera. Generally, we charge a 500 h fee for any type of an extension, but as long as they're operating within the construction frame time frame that they've outlined in the app application. 74 "jspaeth@cityofutica.com" (1829996288) 00:20:24.799 --> 00:20:40.439 Then we don't charge them that, but if they needed to go beyond perhaps the 18 months, then we would, then we would charge them, still get the letter from them outlining what it is, you know, where they are with their project, how much did they do they need, how much did they spend so far et cetera. 75 "jspaeth@cityofutica.com" (1829996288) 00:20:40.439 --> 00:20:56.549 So each of these, while I have been told we don't need to ratify them, they are within the time frames of their construction periods that they have previously outlined. So it's just kind of a heads up. 76 "jspaeth@cityofutica.com" (1829996288) 00:20:56.549 --> 00:21:13.049 So we don't have to ratify. We should wait. But just do what? Just in. Can you get a motion to ratify the sales tax exemptions for the three projects? 77 "jspaeth@cityofutica.com" (1829996288) 00:21:13.049 --> 00:21:29.549 I'm leave 2nd, John. Call favor. Historical apartments. Okay, as, as I mentioned, the historical park departments came to us meeting. 78 "jspaeth@cityofutica.com" (1829996288) 00:21:29.549 --> 00:21:47.909 Previous meeting or so ago, and they were looking to finance the project with tax exempt bonds. The principal figure, you know, thought that he had good connections with the state and others, other municipalities where they could provide the allocation. 79 "jspaeth@cityofutica.com" (1829996288) 00:21:47.909 --> 00:22:07.909 They needed, I think $11 million that we, the city only gets $1 million based on size etc in previous activity, because they couldn't secure all that, that tax exempt bonding, then they decided to go with the with this the same that mr. Callie is kind of talking. 80 "jspaeth@cityofutica.com" (1829996288) 00:22:07.909 --> 00:22:11.789 About the the homes and community renewal. 81 "jspaeth@cityofutica.com" (1829996288) 00:22:11.789 --> 00:22:31.789 The housing finance administration authority. So they are coming to us now for basically a reauthorization or a reapproval of an inducement resolution. There are some changes. They are looking for a period of 35 years as opposed to. 82 "jspaeth@cityofutica.com" (1829996288) 00:22:31.789 --> 00:22:34.049 For the 30 years that we typically do? 83 "jspaeth@cityofutica.com" (1829996288) 00:22:34.049 --> 00:22:54.049 Because of the tight numbers that was suggested to them by the HCR that they pursued the 35, year pilot for this. They th the project has been paying taxes. This will, by going with the three, this is a 3 % which we approved originally. 84 "jspaeth@cityofutica.com" (1829996288) 00:22:54.049 --> 00:23:13.679 Of the effective gross income is how we generally look at, these types of low to moderate income housing projects. So as opposed to, say Trenton technologies that is based off of their assessed value, this is off of what the effective gross income is. 85 "jspaeth@cityofutica.com" (1829996288) 00:23:13.679 --> 00:23:33.679 Minus the vacancy factor. So again, the approval today and I'll read the read our little bitty here. Consider an adducement resolution relating to the HP Udica preservation LLC facility, providing preliminary approval for financial assistance in the form of a reduction in real property taxes. 86 "jspaeth@cityofutica.com" (1829996288) 00:23:33.679 --> 00:23:50.429 For a period of 35 years, value estimated at $527482, which financial assistance is a deviation from the agency's uniform tax exemption policy and authorizing the agency to conduct a public hearing. 87 "jspaeth@cityofutica.com" (1829996288) 00:23:50.429 --> 00:24:05.729 So typically with these projects also, a mortgage recording taxes is provided and also a sales tax exemption. On some of these projects depending on how it's structured, they do not need that from us at this time. 88 "jspaeth@cityofutica.com" (1829996288) 00:24:05.729 --> 00:24:24.839 So they will secure that from the state itself. Is there a financing package 35 years also? Correct. Okay. So usually we match stuff. Yeah, we match what, Yeah, they want us to be co terminous with our pilot and what they're financing. They demand that you be co terminous. Yeah. 89 "jspaeth@cityofutica.com" (1829996288) 00:24:24.839 --> 00:24:43.079 It's not optional. Good. Okay, can I get a motion? One favor, I post so moved. Anything else? That's it for me. Is that? Yeah. I'll enjoy journey. 90 "jspaeth@cityofutica.com" (1829996288) 00:24:43.079 --> 00:25:03.079 Brilliant. Oh, not that. So Jack, did you confirm the next meeting will be 21 August? Is that? That's my set date. Okay. As long as it fits within the time frame of the public hearing. Well, we already scheduled the public hearing for 19 August. Okay, so I will. 91 "jspaeth@cityofutica.com" (1829996288) 00:25:03.079 --> 00:25:19.236 Submit that for publication today. And I don't know if Jack explained, but the reason for that is this historical park project needs to close, also financing timelines.