ITHACA, N.Y. — A proposal for affordable lower-income senior housing on Inlet Island is seeking a boost from the City of Ithaca to pursue state economic development funds.
The proposal, called the “Ithaca Flatiron” is primarily the work of local businessmen and brothers Ishka Alpern and Franklin Milton, who own the triangle-shaped property at 900-912 West State Street on Inlet Island.
Although the building design has yet to be released, the plans on West State Street call for the demolition of the existing structures on-site, the removal of two 10,000 gallon underground tanks (previously mitigated), and the construction of a 29,000 square-foot, four-story building, “built in the classic ‘Flatiron’ style from the most sustainable and modern materials,” per the application to the Ithaca Urban Renewal Agency (IURA).
As planned, the first floor would consist of a masonry base with covered parking, amenity/common space and a possible 2,000 square feet of commercial office space on the ground level. The upper three levels would be a standard wood-frame structure with 24 apartments intended as lower-income housing for seniors.
“We started the [real estate] business in 2005 with the purchase of the mixed-use building at 514-516 W. State/MLK [the Westy], and purchased the 900 block in 2010,” Alpern said. “Through much trial and error, we learned the business and formed a strategy that is finally taking shape after almost 20 years.”
Until recently, the property hosted the Bottle & Can Retrieval Center and the Tompkins County OAR office.
Alpern said the brothers believe in the potential for a “revitalized” West State Street corridor stretching to Inlet Island. When the pair began renovations of one of their other properties, in the 500 block of West State Street, they watched the block’s Gimme Coffee establish itself as an anchor, Alpern said, and have seen the growth since then.
“Today, the West End has certainly established itself as one of the most vibrant walkable business districts outside the Commons,” Alpern said. “Now, the importance of connecting the West End to Inlet Island is being recognized by the City of Ithaca as a priority, and the 900 block of W. State/MLK is, I believe, the key to that connection.”
The project is estimated to cost about $7-8 million in total, and given the difficulties in obtaining conventional bank financing for the construction of lower-income housing, the developers are seeking the city’s endorsement of their plan so they can pursue a Restore NY grant valued at $1.2-$1.4 million.
Alpern listed the benefits of the site’s location, saying its proximity to both downtown and the West End, as well as mass transit and shopping options, make it a prime spot for housing — specifically, as an affordable housing option for seniors.
“During our almost 20 years of property management, we recognize that the low-income and fixed-income senior demographic struggles terribly to find safe, secure, and dignified housing in this town,” Alpern said. “We’ve experienced it with our own families, and watched it in others.”
As described by the state, the Restore New York Communities Initiative provides municipalities with financial assistance for revitalization of privately-owned commercial and residential properties. The program encourages community development and neighborhood growth through the elimination and redevelopment of blighted structures.
Cities of Ithaca’s size may submit one project in each round for a grant worth up to $2 million, and a second grant for a limited number of “special awards” disbursed from a $10 million pot earmarked for highly visible, blighted properties in Central Business Districts.
Previous grants awarded to Ithaca include $2 million for the multi-phase redevelopment of the former Emerson Power Transmission on South Hill, and $1.5 million towards residential conversion plans for two mostly-vacant office buildings at 115-121 and 123 South Cayuga Street. Both projects are active, though still in the early stages.
Applications for Restore NY’s Round 6 are due this spring so the state can review, select and notify their awardees by later this year.
The IURA received five applications for Round 6, and selected the “Ithaca Flatiron” proposal through an internal review and scoring process because it’s affordable senior housing in an underserviced area with the capacity to leverage state and federal affordable housing programs. Supporting site preparation for the expansive mixed-use Water’s Edge proposal was selected as the runner-up application.
The project was discussed last week at the IURA’s Economic Development Committee meeting, with IURA Executive Director Nels Bohn relaying the choice of the preferred applicant to the committee.
As Bohn noted, Ithaca has traditionally struggled with obtaining grants because the state scoring system prefers communities in economic distress. Ithaca is not in distress, at least in the state’s eyes in comparison to regional peers.
As for the program to be leveraged, Bohn noted that the applicants are pursuing the state’s recently launched “Small Building Participation Loan Program,” which could provide up to $115,000 per housing unit if the application is successful.
While supportive of the plans, there was some concern expressed by the IURA EDC members.
“$180,000 per unit? He’s not going to build anything,” stated EDC Member Leslie Ackerman.
“It’s a big lift to make that project feasible, so we’ll see,” Bohn said, acknowledging the challenge. “That one is going forward under the mayor’s recommendation. If it’s deemed not feasible, we’ll go with the backup project, which is the Water’s Edge project.”
EDC member and former Common Council member Donna Fleming commented that the site is not pedestrian-friendly. She further asked if the site has any historic significance, though Bohn said he had learned from city Historic Preservation Planner Bran McCracken that it does not.
Ithaca’s Common Council would have to vote to endorse whoever the chosen applicant is at a meeting in the near future. As for the Ithaca Flatiron proposal, it remains a dream for now, one with significant obstacles. But Alpern remains optimistic about making it a reality.
“It’s impossible for regular elderly folks to afford to live here, especially those who don’t own vehicles,” Alpern said. “Although Ithaca Flatiron might only provide 24 units of housing, those are folks that probably couldn’t live here otherwise, and we hope to get them back to the center of life here in Ithaca.”
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