IURA advances Inlet Island survey and brownfield review, targets mid‑2026 developer timeline

IURA staff updated the board on Inlet Island predevelopment steps and a potential timeline to ready the site for redevelopment.

Nels reported the agency received unsolicited developer interest and that survey field work to document a proposed land transfer between the state Department of Environmental Conservation and the city has been completed and is being finalized. "We ordered survey work to document the land swap proposed between DEC and the city to facilitate dredging ... That survey got stuck ... but I just talked to TJ Miller yesterday, and they said they've finished the field work. They're finalizing the survey work," he said.

Staff outlined the next steps: finalize the survey, obtain an appraisal, initiate the state property‑transfer process (which staff estimated will take about three to six months), and simultaneously undertake an environmental/brownfield assessment to define remediation needs and ballpark costs. Staff warned that the state brownfield cleanup program provides limited subsidy but important liability relief (a state indemnification), which improves lender willingness to finance redevelopment.

Nels said that, given remaining tasks and transfer timing, "by 2026, really, if you're thinking about it, summer, 2026, we could advance that at some point if a developer was willing to take on the risk of some unknowns. But that would be when we think we would have some be able to define things better." Staff also cautioned that any revenues from sale or development of Inlet Island would not be reliable to address near‑term operating deficits in 2026 and likely would not materialize until 2027 or later.

The board discussed whether the agency is required to offer the site competitively (urban‑renewal law does not require a competitive sale) and noted that significant public interest could be expected. Staff said the agency historically has used competitive processes but retains discretion to negotiate in limited circumstances.

Next steps: finalize survey and appraisal, pursue state transfer steps, complete environmental analysis, and report back to the board with findings and a procurement approach for disposal or development.