BOARD OF DIRECTORS MEETING MINUTES April 17, 2024
A. Organizational Matters
I. L. Daily called the meeting to order at 4:05p
II. Attendance: L. Daily (Chair), A. Church (Vice-Chair), R. Monteverde, A. Niles (Secretary) –New members: Carson Carter, Dion Duncan (4:15p), Sabrina Sargent (4:22p), and Jeffrey Werner (via Zoom 4:10p) Others Present: J. Welles (Executive Director) E. Talbott (Project Director) John Sidd (Legal Counsel) Absent: J. Surace, T. Venning,
III. Review & Approval of March 2024 Minutes. No comments or changes proposed to minutes.
A. Church made motion to accept as presented. A. Niles seconded. All members approved via ayes, none opposed.
IV. Review of March 2024 Financial Reports review and approval: J. Welles reported operating deficit for March. During the period expenses included general operating, project rehab costs. Invoicing LBI Phase 2 as expenses incurred. Grant disbursements are not reflected as income yet. Next sales are not anticipated until at least June. However quarterly disbursement of $50,000 in operating funds requested in April from LBI Phase 1. A line of credit is used as a bridge loan for expenses until additional income is received. Expenses exceed operating support provided by NYS. Insurance is significant cost and has gone up over 30% in recent years. A. Church made a motion to accept March 2024 Financial Reports as presented. R. Monteverde seconded it. All members approved with ayes, none opposed.
V. Board member disclosures. Board members are required to fill out a conflict of interest, acknowledgement of fiduciary duty, City of Newburgh annual disclosure and complete ABO training.
VI. Hudson Valley Gives, May 15, 2024. J. Welles commented that NCLB has registered for this year’s with HV Gives Day. Board members and individuals can link to website and fundraiser page for ‘peer to peer fundraiser’ events off of our profile. Board members discussed the possibility of collaborating with partner organizations to co-promote missions for expanding donor base. This is a big fundraiser for some organizations and important to avoid perception of competing for donor base. L. Daily commented that HGV offers an annual training on the event that is a good resource. The HGV event allows donors to give to charities they support on a centralized site. Other ideas generated included connecting with larger donor for matching funds program. In addition, promoting and advertising with partner organizations such as Habitat for Humanity of Greater Newburgh. Email announcement will be sent out via Mailchimp subscriber newsletter and social media accounts.
B. Property Related Matters
I. New development/in progress:
1. Legacy Cities: A. Construction update - J. Welles provided an overview of Legacy Cities program to new board members. Project includes (4) full scale renovations for 2-and 3-family homes sold to owner occupants with income restrictions, but also provide income generating rentals. The project is being co-developed with our general contractor Carlos Carbonero Sr, that will be sharing sales proceeds. 59 Lander & 63 Lander are nearly done. Identified two purchasers that are Newburgh residents currently living in the neighborhood. Finish fixtures, finish electric, finish plumbing, finish sprinkler, Certificate of Completion and Certificate of Occupancy remain to complete. 136 Lander and 39 S Miller are 25% complete. A lot of main issues have been addressed, or unknowns that would impact budget have been discovered. The rough framing inspection passed (April 3). Goal for 2024 is to complete stabilization at 44 S Miller, 128 Dubois and 140 Chambers (some buildings have local approvals in place) to lower obstacles to full-scale renovation, and potentially apply for a second round of Legacy Cities Access Program funding through NYS HCR. A. Church asked has marketing began for 136 Lander St and 39 S Miller St. J. Welles replied that the plan is to start marketing at 75% completion in August or September 2024, depending on construction progress. Don’t want to begin too early because the applicants have to reapply for mortgage. Anticipate buildings being complete by the end of the 2024. L. Daily/J. Welles introduce Sabrina Sargent and board member make brief introductions
2. Land Bank Initiative – update on projects J. Welles commented that not all funds from Phase 2 (project funding) have been utilized ($1,800,000) but we are planning to commit and expend as much as possible before the grant period ends. Environmental review has taken time. We are getting ducks in a row to stabilize buildings. Reimbursement Agreement with Habitat of Humanity of Greater Newburgh has been executed. NCLB to use LBI Phase 2 funds to reimburse for asbestos abatement and lead remediation activities at 223-225-227 Third Street. Other updates (3) lots have been purchased from Holy Deliverance 35-37-39 Lander St. We have license agreements for (2) contiguous City-owned lots, 41 Lander & 43 Lander, for a total assembly of 5 lots. Open Structure was hired to complete a precedent study and other site analysis including massing, to determine housing types possible. Ideas include condos and coops. Early in the process of developing project. Need to find co-developer and determine financing sources. BJH indicated that they would be bringing more equity into the 143 Washington St project. NCLB committed $300,000 from Phase 2 funds that will close financing gap, they can move forward. All planning board and ARC approvals have been secured. Project includes 14 units total; 5 studios will be designated for adults in Osbourne Society’s reentry program and funded through Empire State Supportive Housing Initiative.
3. Acquisitions update- A. Restore NY project 72-76-78 Lander St. A. Church provided an update that Asst. Corporate Counsel spoke to program staff at Restore NY and that if funds haven’t been committed in 2 years that an update on status would be sufficient to keep award active. Next steps include the city crafting a subrecipient agreement coupled with a Site Development Agreement. Transfer would be conditioned on meeting terms of agreement. Counsel to bring the proposal to the City Council for discussion and approval. Phase 2 funds are allocated for environmental testing, abatement, structural stabilization and predevelopment costs. NYS has indicated openness to extend grant term and availability of funds if progress is ongoing.
And that additional funds will be available in future rounds offered through the Land Bank Initiative. A. Church commented that the city can use the land bank as partner for a new area outside of the original target area, from Dubois to Van Ness, Carpenter to Carter, west of traditional target neighborhood. New acquisitions due to targeted enforcements. Some demolitions are needed in the area. More land is being acquired than buildings in the past. Is there interest in a collaborative project with Habitat working in this neighborhood. J. Welles replied that the land bank is not married to the original target areas, and is interested in expanding to new neighborhood.
B. 238 First St- donation from NJ Community Capital- (resolution approved at March 20 meeting) New Jersey Community Capital (NJCC) expressed interest in donating property to NCLB for disposition as an owner-occupied home. Current use is 2-family home with accessory garage that contains 2 units. It is challenging property with nuisance tenancy.
II. Sales/NCLB Development Projects:
1. 143 Washington- update: see above property related matters. Expect update on sales timeline in next few months as project moves forward.
2. 104 Washington – A. Church commented that Mistral has two parallel funding tracks, one with ESD, and another with a private bank. But they want to wait until a decision is made on ESD Momentum funding before proceeding. However, ESD has not indicated timeline for decision.
3. 10 Chambers - Board members commented that we need a member to reach out NYS State Senator Rob Rollison to advocate for NYSDEC easement. R. Monteverde expressed interest in making contact. A. Church drafted a letter. Lisa Daily to send letter.
4. 146 South St. – retained legal counsel and sent notice to current owner. No response. The
legal counsel indicated that he would begin default proceedings. Board members inquired
about if the owner performed work or owed taxes on the property but it is unclear.
5. New board member vote. New members asked if they are interested in serving. All indicated yes. A. Church made the motion to appoint. C. Carter, D. Duncan, S. Sargent and Jefferey Warner. A. Niles seconded it. All approved with ayes, none opposed. City of Newburgh Annual Disclosure, Acknowledgement of Fiduciary duty, and Conflict of Interest forms are required to be completed for all new members, a State form was sent out, but the City form preferred.
A. Executive Session – no session
B. Meeting adjourned at 5:17p. Motion made by A. Niles, R. Monteverde seconded it. All approved with ayes.
C. Next Meeting: May 15, 2024 at 4p