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IRA committee updates leave Inland Island project in limbo; INHS pursues West State Street affordable housing
Summary
The IRA committee reported the Inland Island development is in limbo after its developer questioned financial feasibility; the committee also discussed INHS’s option to pursue a 55-unit West State Street affordable housing project.
The IRA committee reviewed a portfolio of urban renewal projects and reported that the Inland Island mixed-use project is effectively in limbo while a developer weighs feasibility, and that Ithaca Neighborhood Housing Services (INHS) is pursuing a separate West State Street site for a 55-unit affordable housing project with a ground-floor Head Start-type center.
Staff member said the ED committee and a BD committee moved to terminate the exclusive developer agreement with Finger Lakes Development after the developer signaled it was unsure the project remained financially feasible given higher interest rates and construction costs. The developers later reported they were talking with a hotel operator, the Baywood Hotel Group, which may alter feasibility. Staff member said the BD committee “passed a resolution to terminate exclusive developer agreement with Finger Lakes Development,” and that the IRA tabled consideration in December for 30 days; the resolution will return to the IRA for possible approval, another tabling or other action.
On site control, staff described a mix of city and IRA-owned parcels on the island and an existing conceptual land-swap agreement with the DEC (state environmental/conservation entity) to move the Coast Guard Auxiliary’s use and provide easements. The developers cited floodplain regulations as a principal challenge affecting placement of a hotel and the overall financial model; the committee emphasized prior project goals of affordable housing, enhanced public waterfront access and preserving water-dependent uses.
Separately, the committee reported that INHS acquired an option on a former Family Medicine Associates building on West State Street and that the common council authorized conveying a city-owned 13-space parking lot to the IRA to assemble a site. Staff member said INHS would seek funding (noted as a 2025 application year) to build roughly 55 affordable units and include a ground-floor Head Start partner (TC Action was named as a potential tenant/operator). Staff member noted that site control would enable INHS to apply for funding in 2025 and that the city conveyed the parcel to the IRA to facilitate an urban renewal project.
Other project updates discussed at the meeting included the Carpenter Park development (market-rate units with some retail and structured parking and roughly 80 housing units), the North Side housing projects completed under RAD conversion, and a larger gateway student-housing proposal of roughly 340 units behind the Dean building, which is pursuing approvals but not yet committed to construction. Staff said City Harbor (a waterfront project) has permitting approvals but no firm commitment to proceed at current interest-rate levels.
Ending: The IRA will consider the BD/ED committee resolution on the Inland Island agreement at a future IRA meeting; INHS will proceed with site-control steps necessary to pursue funding for the West State Street affordable housing project.
