BOARD OF DIRECTORS MEETING MINUTES August 17, 2022
A. Organizational Matters
I. Call meeting to order – Meeting called to order at 11:37 a.m. by L. Daily
II. Attendance –A. Church, L. Daily, A. Ivor Hall, A. Morales R. Monteverde, A. Niles; D. Potack; Absent: J. Surace; Others: E. Talbott, J. Welles; John Kolesar, Harris Beach;
III. Review & Approval of June 15, 2022 Minutes There was not a quorum of Board in July for members present to approve. A. Ivor Hall made a Motion to approve the June Financial Report. D. Potack seconded it. All approved via roll call, none opposed.
IV. Review of June 2022 DRAFT Financial Report & July review and approval— June 2022 and July 2022 Financial Reports are still in draft form due to year end close out. The reports will be revisited at the next meeting.
V. HCR land bank funding update – Executive Director J. Welles recapped that NYS approved $50M for land bank funding in the 2022-2023 state budget. NYS HCR will administer the funds and began accepting Request for Applications (July, 15, 2022) for the Land Bank Initiative to provide operating funds. The initial tranche of funds is for operating expenses, up to $200,000 per year, for land banks with the largest budgets (NCLB). The deadline for the RFA is September 15 but the plan is to submit application within the few days. Once agreement is finalized that they will likely release 25% of the funds up front and then likely provide quarterly disbursements throughout the year. HCR is still working out how they are going to make project-based funding available. A. Ivor Hall asked J. Welles what she meant by disbursements being provided throughout the year. J. Welles responded that the application allows you to request funds for three years with HCR approving the first year and then extensions the following years. The expectation is to receive $600,000 over 3 years. A. Church commented it would we wise to start putting money towards a continuity or reserve fund to provide for cushion and flexibility for the grant funds run out.
VI. Fundraising Committee report – – L. Daily reported that the committee met in the previous month asked J. Welles about the Ulster Savings Bank and M&T Bank grant. J. Welles reported that M&T would like to sponsor a ribbon cutting or a sponsor of a community walk. L. Daily asked for clarification if the walk would end with a small get together. A. Church reported that John Delk, a land bank home purchaser, agreed to host an outdoor cocktail event but could not host inside in case of rain. L. Daily asked about alternative place for the same date in case of rain. A. Church suggested using the land bank office as a backup space to host cocktail party. Rain date be same date as event. In the alternate scenario the cocktail party would be held at the land bank office, followed by a tour John’s house and then take a neighborhood walk. Board members discussed notes about date proposed. D. Potack commented that his notes indicated the event had been pushed to October. Thursday between October 6-13 before the later weeks that could have colder nights (45 degrees) due to concern that guests comfort level outdoor. L. Daily commented that the idea of this event is to bring people together who are donors or have connections to donors, explain the work we’re doing and fund raise towards our annual goal. Board members are encouraged to invite persons they know that are donors or have a connection to other donors. Board members are invited, but the goal is to cultivate donors and guests can anticipate being asked to contribute. D. Potack shared that he thought the second page of the Annual Report should go out with the invitation. It summarizes of the historical scope of the land bank, the amount of money returned to tax rolls and the amount of investment leveraged (over $70M). And the report info provides a nice concise snapshot of information that goes out to anybody we’re reaching out to give them more background on the successes of the land bank and what we’re trying to do going forward. J. Welles commented that we discussed a second event, not a fundraiser, but a community engagement event such as a walk. Too late fall 2022 weekend. D. Potack suggested making the walk a spring event if planning time is needed. L. Daily is reviewing City of Newburgh spring 2023 calendar to see what is already scheduled. J. Welles commented that the upcoming Open House at 115 & 150 Lander on Aug. 17-18 is a great opportunity for Board members to see the rehabbed homes and engage with community. The event was advertised via our social media accounts and newsletter. A. Church commented we should consider expanding board, not just for quorum issues but breadth, with two potential candidates. A. Church suggested inviting them to join the Fundraising Committee to see how they work before inviting them onto the Board. Both individuals have strong financial backgrounds and fundraising backgrounds, in addition to board experience. Board members discussed dates for next fundraising committee meeting and decided on Sept. 7 10:30am via Zoom. At the next meeting the date and details of the October fundraising event will be finalized
VII. Yearly Review Draft – – J. Welles asked Board members if they had last minute comments or changes to share. D. Potack recommended one minor change, on the second page of the pie chart, to the word ‘restrictions’ in the phrase “85% of all homes were Sold/Developed with Affordability Restrictions”, with a word more positive or neutral like considerations or parameters. R. Monteverde asked J. Welles if she was on calendar to present to the City Council this fall because it would be good to go over these numbers with the council. Without a meeting already on the calendar though it’s likely that she will not to present before November.
VIII. RFP for Legal Services-review Services – To be discussed in Executive Session
B. Property Related Matters
New development/in progress:
House to Home: 150 Lander, 115 Lander – Open Houses August 17 &18:
Open Houses at 115 & 150 Lander on August 17-18 from 6-7pm. Haven’t obtained the Certificate of Occupancy yet but final finishes are being completed. Marketing with a release date for Request for Applications on September 1 and October 10 deadline, a week before board meeting. Tentatively scheduled an info session for September 8 with Pathstone for potential buyers to review the application process. L. Daily asked about the sales price for the Lander St properties. J. Welles replied that 115 Lander (4bdrm 2.5ba owner’s triplex with 1bdrm rental unit) is going for $265,000 and 150 Lander St (2bdrm 2ba owner’s duplex with a 1bdrm rental unit) is going for $255,000. D. Potack asked if we receive the asking price of $520,000 combined will the net proceeds be restricted. J. Welles replied that the majority of the proceeds will be used to repay the balance of the construction bridge loan. Net proceeds will be about $25,000. D. Potack asked about the MLS listing price for 34 Lander and 38 Lander. J. Welles reported that 38 Lander was being sold for $95,000 while 34 Lander was going for $125,000 and that she hopes to close on in the next few weeks. There will be broker fees involved. No restrictions on project only to complete and obtain CofO. No restrictions on sales proceeds. J. Welles asked if there was any update on the letter for NYS DEC remediation work at 10 Chambers. A. Church replied there was no news.
Legacy City funding- homeownership project-update:
J. Welles reported that land bank is continuing to work with the State and CPC on the budget. Project reduced from (6) buildings to (5) due to extensive and costly scope at 44 S Miller not allowing the building to fit into the homeownership program. Getting closer to finalizing agreement as we have all the local approvals obtained. Construction documents for three of the properties (59, 63, 136 Lander) are near completion. The goal is to close on the agreement and begin construction. D. Potack asked that rounds out our building inventory. J. Welles responded we have about five more properties after those are rehabbed and sold.
Restore NY letter of intent:
J. Welles asked for update on Restore NY. A. Church replied that the Restore NY is a grant program for municipalities and provides funds for abatement, stabilization and construction. The city submitted three letters of intent, and received tentative approval although only two projects can be applied for. The program will include three buildings on Lander Street (72, 76, 78 Lander) with the idea to subgrantee to the land bank. The budget came out to over $1M per property but doesn’t include equity a developer would wbring to the project to be used to develop affordable rentals. If the Board is interested, land bank will have to write the grant. Restore NY can be combined with other programs such as the NYS HCR PLP program. The city needs to know if we are interested in adding program because a public hearing is required. D. Potack said it’s an interesting angle but that the agreement would have to be crafted carefully the organization cannot absorb debt. J. Welles mentioned she had a brief conversation with Madeline Fletcher and she had suggested pairing the PLP program because they are increasing the per unit subsidy, and potentially tax credits. No vote or motion need from the board at this time.
II. Sales/NCLB Development Projects:
27 and 43 Johnston sales- update:
J. Welles said that 27 Johnston ($260,000) and 43 Johnston ($295,000) sold in June and July with closings June 30 and July 20 in Goshen. Income from the sales, minus closing costs, were used to paid back over $200,000 to Leviticus for the construction bridge loan, and some important bills including a line of credit and overdue architect fees.
34 and 38 Lander- MLS listings-update:
J. Welles reported that 38 Lander was being sold for $95,000 while 34 Lander was going for $125,000 and that she hopes to close on in the next few weeks. There will be broker fees involved. No restrictions on project only to complete and obtain CofO. No restrictions on sales proceeds. J. Welles asked if there was any update on the letter for NYS DEC remediation work at 10 Chambers. A. Church replied there was no news.
C. Other
D. Executive Session
1. At 12:03 pm, L. Daily took a motion to close the meeting and move into Executive Session. A. Church made a motion and A. Ivor Hall seconded it. All approved via roll call, none opposed.
2. Legal Services RFP review and decision. Respondents to RFP included: Goldstein Hall, Hancock Estabrook, Daniel Weisz, Esq. and Wallace & Turner. Goldstein Hall performs a large range of activities but that there is a wide range in the hourly rate between the primary and secondary attorneys. Hancock Estabrook has a smaller range between primary and secondary attorneys but their location is far away. Dan Weisz is closer but hourly rate is higher and a one-person firm. J. Welles commented that Goldstein Hall has a lot of affordable housing experience along with D. Weisz and Hancock Estabrook but that they all offer a different menu of services and sees an advantage to retaining two firms possibly. A. Church asked if Hancock Estabrook offered more value than a typical municipal or land use law firm. Members inquired about travel costs. J. Welles worked with D. Weisz for the past 15 years and he is the attorney for Legacy Cities and closings for Johnston Street sales. D. Weisz works by retainer for each project and could do real estate closings but doesn’t have the legal counsel expertise on land bank law. A. Church commented that a firm with a breadth of experience was important because if the primary attorney doesn’t have the answers the expertise exists within the firm. D. Potack commented that we are better off with a firm that better suits our needs and has substantial experience and redundancy. The board resolved to narrow the choices to Goldstein-Hall and Hancock Estabrook. L. Daily proposed that she and J. Welles will follow up with the selected law firms to inquire about their interest and availability to attend monthly meetings, availability and interest to attend real estate closings and request a break down for travel costs. At 12:36pm a motion to end Executive Session was made.
E. Return to Public Meeting - L. Daily asked for a motion to review and approve J. Welles and herself to make the final decision on the law firms upon receiving additional information. D. Potack made the motion to approve the decision and A. Morales seconded it. All approved via roll call, none opposed.
F. Meeting Adjourned- A. Church makes a motion to adjourn the meeting and seconded it. The meeting adjourned at 12:39 p.m. Next Board Meeting: September 21, 2022, 11:30 a.m. to be held in person at 15 Chambers St.