Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
IRA recasts GreenStar loan from job‑creation to job‑retention standard, preserving $400,000 assistance
Summary
The agency approved recasting a prior $400,000 loan to GreenStar from a job‑creation requirement to a job‑retention standard, documenting at least eight retained full‑time equivalent positions so the loan complies with CDBG public‑benefit rules.
The Ithaca Redevelopment Agency voted to recast a $400,000 loan to GreenStar from a job‑creation activity to a job‑retention activity so the loan remains compliant with Community Development Block Grant (CDBG) public‑benefit requirements.
Why it matters: CDBG loan rules require documented public benefit tied to low‑ and moderate‑income persons. Because the business opened just before the COVID‑19 pandemic and subsequently reduced staff, GreenStar’s original job‑creation target is no longer achievable. Recasting the loan to document retention of at least eight full‑time equivalent positions will allow the loan to meet CDBG public‑benefit tests and remain an ongoing economic development tool.
Agency staff explained the record: GreenStar received the $400,000 loan prior to the pandemic; it created some jobs initially but then underwent layoffs and is now operating with a smaller but stabilized workforce. Staff recommended recasting the loan as a job‑retention activity that documents at least eight retained full‑time‑equivalent jobs to satisfy CDBG rules. GreenStar representatives described the loan as essential to the cooperative’s survival: “the coop literally would not be here today without that $400,000,” a speaker said.
Board members discussed precedent and regulatory compliance. Staff said recasting to job retention is an allowable use under CDBG rules and that the agency is taking a proactive approach to document public benefit rather than risking a noncompliant loan status during future audits. The motion to approve recasting the loan passed by voice vote; the transcript records the motion and a second and indicates the board voted in favor, but it does not include a roll‑call tally.
