BOARD OF DIRECTORS MEETING MINUTES. January 17, 2024
A. Organizational Matters
I. L. Daily called the meeting to order at 4:00p
II. Attendance: L. Daily (Chair), A. Church (Vice-Chair), A. Niles (Secretary), J. Surace
Others Present: J. Welles (Executive Director) E. Talbott (Project Director) Ashawna Abbott, Melzina Cannigan-Izzard Absent: R. Monteverde, A. Morales, T. Venning,
III. Review & Approval of November 2023 Minutes No comments or changes proposed to minutes.
A. Church made motion to accept as presented. A. Niles seconded. All members approved by hand raise, none opposed.
IV. Review of December 2023 Financial Reports review and approval: Received $50,000 from LBI Phase I and $71,341.28 from LBI Phase II associated with acquisition of Lander Street lots (35-37-39 Lander). Currently negative net operating income, however, grant funds receivable awarded specifically LBI Phase I and LBI Phase II are not fully expended. Received $10,000 from Ulster Savings Bank for Newburgh Legacy Cities, and received $25,000 grant from Dyson Foundation in the last quarter of 2023 (2 years; $25,000 per year) for Newburgh Legacy Cities. J. Surace made a motion to accept December 2023 Financial Reports as presented. A. Niles seconded it. All members approved with ayes, none opposed.
V. Board member recruitment. J. Welles added a Google form to website that includes Board of Directors duties and responsibilities, link to by-laws and set of questions to fill out. A. Church commented that it would be helpful to include criteria for specific skill sets (i.e. finance, communications, real estate, fundraising, etc.). Currently 7 of 11 positions are filled. Four seats are open. Board members will reach out to their collective network of contacts to identify potential candidates to recruit. L. Daily commented that members may have better results by reaching directly potential board candidates by phone.
B. Property Related Matters
I. New development/in progress:
1. Legacy Cities: A. Construction update - 59 Lander & 63 Lander are in progress, at more than 60% completion. J. Welles commented that drywall is underway. Firestopping and insulation are complete. Permits for 136 Lander and 39 S Miller were obtained. Demolition started at 136 Lander. Next phase at 59/63 Lander includes finish carpentry, finish electric, finish plumbing and the exterior.
B. Marketing update – Marketing for first two Legacy Cities homes is complete. Direct mailer was sent to targeted mail routes in December to further promote the opportunity. Program funding prioritizes households at 80% AMI and first time homebuyers. Working with PathStone for the HUD certified homebuyer education counselor services, it was decided that the selection process of applicants would be on a first-come first-serve basis. Applicant comparison chart was provided to the Board of Directors for review. Three applicants including Malachy Cleary, Ashawna Abbott, Zenzi Watumi submitted applications for 59 Lander St, as their first choice. Malachy was the first to submit, followed by A. Abbott and Z. Watumi. Members reviewed the scoring on the applicant comparison chart. Board members discussed how each applicant was proposing to use the new home (i.e. household size, unit selection). A. Church asked to A. Abbott (in attendance) if she was intending to live in 1-bedroom and rent out the 2 bedroom apartment, and if that was reflected in her proposal. A. Abbott confirmed that was her plan. A. Church recommended that the homes should be first offered to the two city residents that scored highest based on evaluation criteria. J. Surace and A. Niles verbally agreed. Both city resident applicants are first time homebuyer. Applicants receive additional points in scoring criteria for city residency as part of NCLB’s mission. J. Welles commented that A. Abbott’s application was received before Z. Watumi and that she should get the first offer for 59 Lander. A. Church made the motion to offer 59 Lander for sale to A. Abbott pending successful execution of Purchase and Sale agreement. A. Niles seconded it, and all members approved ayes. A. Church made motion to offer 63 Lander St to Z. Watumi, pending successful execution of Purchase and Sale agreement. A. Niles seconded it, and all approved via ayes. J. Welles commented that at this point we can only offer selected applicants letters of commitment until we have entered into a contract. If there are any changes to the applications between now and execution of the Purchase and Sale of Agreement, then applicant selection will need to be reevaluated.
2. Land Bank Initiative: a. RFP Environmental Services- On 12/04 staff received applicant responses to the RFP for Environmental Services seeking qualified environmental consultants to provide Phase I ESAs and Asbestos surveys and limited lead-based paint screenings. E. Talbott commented that 3 firms were solicited including ESD certified MWBE firms, and that 6 firms submitted responses. The proposals varied in cost, with the most competitively priced being from Quality Environmental Solutions and Technology (QuES&T) at $16,000, the second lowest firm was CNS $18,680. J. Surace made a motion to select QuES&T as winning bidder and to enter into an agreement to perform requested environmental services. A. Church seconded it. All approved via ayes. B. 44 S Miller stabilization update- J. Welles commented that architect provided updated construction plans and scaffold drawings are in progress. The plan is to submit for rough framing permit application and scaffolding permit to reconstruct roof and floor systems to stabilize the structure. Applications are being compiled for alteration permit and scaffolding permit. Scaffolding installation (plus exterior c-channel) will provide pedestrian protection and stabilize building facades during the initial construction phase. C. Habitat Third Street properties- agreement resolution – D. Weisz began drafting reimbursement agreement with Habitat for funds to perform asbestos abatement and lead remediation at 223-225-227 Third Street. Habitat has provided a SHPO letter, Asbestos and Lead reports, and is working on Phase I ESAs testing. In the meantime, we will continue to work with the Habitat on the NYS HCR site specific environmental review.
3. Acquisitions from the City of Newburgh
A. Lander St. lots: 35-37-39 (from church). 41-43 (from City) – City provided a license agreement for the feasibility and site analysis of the adjacent properties they own. Open Structure LLC (fka YSDM Studios) has begun the studies.
B. Restore NY project: 72-76-78 Lander. Awaiting approval of Site Development Agreement with City of Newburgh to be finalized and executed. A. Church commented that she would check in with Jeremy Kaufman, Corporation Counsel, about the agreement. She believes that Counsel has proposed a license agreement in lieu of an SDA for the Restore NY properties. A. Church said that the overarching issue is that the City has not fully developed its real property disposition policy for not-for-profits. Stay tuned.
II. Sales/NCLB Development Projects:
1. 143 Washington- update: J. Welles had conversation with M. Meola who seemed optimistic that value engineering, and potentially falling interest rates may help them close the gap. Update to be provided next month
2. 10 Chambers - still awaiting environmental easement to be issued by NYS DEC for this property (as part of the remediation done at 151 Liberty). Board members had commented that we should reach out to Jonathan Jacobson, NYS Assembly member to advocate for NYSDEC easement. R. Monteverde had previously expressed interest in making contact at prior meeting (not present today). A. Church offered to draft a letter but cannot send correspondence to elected officials due to conflict of interest.
C. 104 Washington- Mistral applied for NYS ESD MidHudson Momentum Fund grant to cover financing gap. Program requires minimum threshold of 50% commercial spaces. Update on ESD Momentum funding anticipated in the end of 2024. Another lender that wants to participate in the Federal infrastructure bill, and needs to make CRA investments, has agreed to lend gap finance funds to Mistral should the ESD Momentum funding fall through.
D. Executive Session – no session
E. Meeting adjourned at 4:43p. Motion made by A. Church, all approved with ayes via roll call.
F. Next Meeting: February 21 2024 at 4p