Ithaca will begin seeking redevelopment proposals for the former Seneca Street Garage site while using $2.48 million in remaining capital funds to study less expensive alternatives to a new public safety building.
The Common Council actions were among a broad set of decisions Sept. 2 involving transportation planning, employee benefits, community grant funding and the city's work plan through 2027. Council also received updates on a projected $5 million to $6 million budget gap, flood mitigation, staffing, debt and overdue audits.
Public safety project shifts toward lower-cost options
Council amended the existing Public Safety Facility Capital Project so the remaining money can be used to evaluate alternatives to new construction. The project was established with $4 million to replace aging public safety infrastructure, accommodate current and future staffing and support expansion of the city's unarmed responder program.
City staff said rising construction costs and inflation have made a new facility at 401 Third St. less feasible. One option under review would expand public safety operations into the City Court space attached to the current police facility and move the court elsewhere.
The city manager and controller may now use the capital funds to hire consultants, conduct fit and feasibility studies, assess deferred maintenance, analyze relocation options and compare long-term costs. The findings are expected to guide later council decisions before the city commits to a major construction project.
Council separately accepted a $9,700 grant from the Community Foundation of Tompkins County's Today and Tomorrow Fund for Community Justice Center programming. The city controller was authorized to add the money to the budget for program supplies, allowing the work to continue without additional local tax funding.
Hiring interviews have also begun for the ROOTS Community Responder Program, with onboarding expected this fall. The Community Justice Center, CARE Team, Ithaca Police Department, city staff and community organizations are participating in the selection process.
Seneca Street site moves into redevelopment process
Council took three related steps toward redeveloping the former Seneca Street Garage property at 202 E. Seneca St., which has been closed since April because of structural deterioration.
Council designated itself the lead agency for the environmental review of a proposed transfer to the Ithaca Urban Renewal Agency, then adopted a negative declaration finding that the transfer itself would not cause significant adverse environmental effects. That review was limited to the transfer; any future development would require additional environmental and site plan reviews before construction.
An option agreement authorized by council could declare the property surplus and transfer it to the urban renewal agency. The agency would solicit development proposals and negotiate a disposition and development agreement, but any final transfer would still require council approval.
Council's objectives call for a financially feasible, taxable residential project that could include market-rate or mixed-income housing, owner-occupied homes and climate-resilient design. The plan also seeks restoration of a TCAT bus shelter on East Seneca Street and compliance with downtown active-use requirements.
City and urban renewal agency materials say redevelopment could eventually generate property and sales tax revenue. Public hearings and additional council review are required before a final agreement, with solicitation of proposals and negotiation of terms serving as the next steps.
Transportation plan receives another $252,437
The city accepted $252,437 for additional work on its Active Transportation Network Plan. The package includes $201,950 in federal funding made available through the state Department of Transportation and a $50,487 local match.
The city previously approved a $587,000 planning effort to create a block-by-block bicycle and multimodal transportation network based on earlier Bike Walk Tompkins work. The added money will support more surveying, traffic-calming analysis and more detailed conceptual designs.
Council also approved New York State Paid Family Leave participation for the city's Administrative Unit, Executive Unit and unrepresented employees. The action followed consultations directed by council in September 2025, votes by the two employee units and support from a majority of responding unrepresented workers.
The benefit, funded primarily through employee payroll deductions, covers eligible workers who need time away for qualifying family-care needs. Participation must occur across an entire employee unit, and the acting city manager was directed to execute agreements and complete the administrative work required through the human resources and payroll offices.
Work plan sets 36 major deliverables
Council adopted Ithaca's 2026-27 Executive Work Plan, which includes 36 major deliverables and 109 supporting actions. It covers housing, economic and community development, public works, finance, sustainability, human services, public safety and intergovernmental relations.
The initiatives include housing-density analysis, zoning modernization, infrastructure and flood-mitigation planning, stronger financial controls, Climate Action Plan implementation, community engagement, public safety staffing and expanded advocacy with other governments. Departments have begun setting milestones after an August senior staff retreat, and the first quarterly progress report is expected in December.
Council also approved three mayoral appointments. Christine O'Malley was nominated for reappointment to the Sustainability and Climate Justice Commission through Dec. 31, 2027; Kristen Brennan was nominated as an alternate member of the Ithaca Landmarks Preservation Commission through Dec. 31, 2028; and Karen Johnson Feltham was nominated to fill a Planning and Development Board vacancy through Dec. 31, 2027.
Budget gap, debt and audits remain in focus
Acting City Manager Dominick Recckio said departments have submitted operating and capital requests for 2027 as the city works to close an estimated $5 million to $6 million gap while staying within the state property tax cap. Departments were asked to identify spending cuts or revenue increases equal to 5% of their budgets.
Capital requests are being reviewed through a new five-year planning process, with a Capital Planning Committee preparing recommendations for council. Public budget presentations and deliberations are scheduled for October and November.
The controller reported about $51.9 million in General Fund revenue through July, or roughly 60% of the annual projection. Property tax collections were about 93% of the budgeted amount, sales tax revenue was running ahead of prior years, and some revenue had not yet been posted because of Finance Department vacancies. A significant Cornell payment received after July was not included in the totals.
General Fund spending totaled about $44 million through July, representing roughly 49% of annual appropriations. Officials cited personnel costs, overtime and employee leave payouts tied to retirements, departures and labor contracts, while retirement-system payments normally made later in the year remained outstanding.
Across all funds, Ithaca carried about $147.7 million in short- and long-term debt, including bonds and bond anticipation notes. Officials said temporary borrowing has increased as the city works through overdue audits and fronts costs for grant-funded projects before reimbursements arrive.
Staff are developing a strategy to reduce and convert debt, with a more detailed analysis expected later in September. Future reports are expected to examine reimbursement timing, debt conversion options and the effect on future budgets.
Draft 2022 financial statements have been submitted to the city's external auditors, who are expected to begin fieldwork in October. Officials said completing the audit backlog is necessary to strengthen controls, improve fund-balance reporting and support future borrowing.
Flood work, complaint tracking and hiring continue
The city is continuing work with FEMA and consulting engineers on flood maps and mitigation planning. A 24-week extension gives Ithaca until Feb. 1, 2029, to complete construction under a state grant program, and staff said additional engineering capacity could be proposed in the 2027 budget.
The Building Division's new complaint form received 69 complaints during its first five weeks. Staff said 94% were assigned to inspectors within two business days and several code violations had been issued, with more analysis planned on response times and compliance results.
Applications for the city's director of planning and development position remain open through Sept. 11. A committee of staff, council members, community representatives and human resources personnel is handling recruitment ahead of the current director's retirement.
Council is also scheduled to receive an informational discussion Sept. 9 on the proposed GIAC Red and White Cafe planned unit development. The Court Street proposal would support construction of a new facility and requires review because parts of the project do not comply with current zoning.
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