The Ithaca Urban Renewal Agency (IURA) Governance Committee voted 3-0 to authorize the agency chair to enter into agreements with the City of Ithaca to provide IURA staff assistance on city projects that align with the agency’s mission, the committee heard. The action responds to projected reductions in HOME program funding and flat Community Development Block Grant (CDBG) revenues.

Donna Fleming moved the resolution and George McGonigal seconded it. "The resolution is that we authorize the chair, to enter into agreements with the city to provide IURA staff assistance on city projects that align with the IURA mission statement," Fleming said prior to the discussion. The motion passed unanimously.

Nels, speaking for staff, summarized the agency's fiscal issue: the IURA historically used a portion of CDBG (20%) and HOME (10%) awards to cover planning and administrative operating expenses for roughly 3.6 full-time-equivalent positions. He told the committee those federal funds have been effectively flat for years while agency personnel costs have risen, pushing the agency toward an operating deficit. "We're diverging in terms of our revenues, our level, our expenses are going up, is the core problem," Nels said.

Nels said the agency holds about $450,000 in discretionary reserves built over 25 years that are eligible for administrative costs but that drawing those reserves down is not a sustainable long-term plan. He recommended seeking reimbursable arrangements with the city for services the IURA already provides in some cases, and said a Memorandum of Understanding (MOU) or an agreement with the city's planning division could be explored. "So the idea is to authorize me and, the chair to enter into agreements with the city, and actually, you know, seek them out essentially opportunities for where we can seek to be reimbursed for services we're providing on projects that have a lot of commonality," Nels said.

Committee members pressed staff on scope and control. McGonigal asked whether the IURA can refuse city requests; Nels said the agency retains control over staff deployment and could require that requests be routed to the full agency for approval if they become substantial. "The agency can decide how the staff is deployed," he said. "It should be a full decision of the full IRA, of course." The transcript also records discussion about overlap with a vacant economic development director position and the potential to redefine the agency’s role in economic development while seeking reimbursable services.

Nels noted possible revenue from large property sales or major urban-renewal projects but cautioned those are irregular. He also described examples of staff time that has not been reimbursed, including work on homeless encampment protocol and support for identifying sites for a potential public safety building, which draws on staff time without a clear billing mechanism. The committee directed staff to pursue discussions with the mayor, city manager, and planning director about reimbursable collaboration opportunities and to include options that could involve the town and county.

The resolution authorizes the chair to negotiate agreements; it does not obligate the agency to accept any particular terms or to begin work without IURA approval of assignments that may require billing. The vote was 3-0 in favor.