Sometimes I wonder how anything ever gets accomplished in Ithaca.
The Process of Progress...the man behind ithaca's new $17 million hotel project, jeff rimland, speaks
By: Danielle Henbest
04/16/2008
After a long and winding process, Long Island-based developer Jeffrey Rimland finally has his land. April 2 marked an important day for Rimland and his associates. The City of Ithaca Common Council approved the sale of a parcel of land on Green Street for the construction of a 102-bed, estimated $17 million dollar branded hotel.
"We're very pleased," said Rimland of the vote. "We're very happy that the community leaders voted for the project, supported the project...and now we're anxious to move forward."
Rimland isn't the only one. Some members of the Common Council, other city officials, business owners, downtown merchants and even residents are right behind him. Downtown Ithaca Alliance Executive Director Gary Ferguson expressed his thanks and appreciation to the Council for approving the sale and hailed Rimland's patience and integrity.
"Jeff Rimland is a seasoned developer who knows how to assess an opportunity and move it successfully forward," Ferguson said. "I have been impressed with his grit and persistence, working through the process of purchasing a small but essential piece of property for the project. I am also impressed with his understanding of the community and his willingness to try to address community needs, to the extent that his project allows." Now that the project is officially underway, what exactly does this mean for Ithaca?
A familiar face
Is Rimland another big, bad developer swooping in to take over our city? Maybe not. Rimland, like some before him, merely saw an opportunity to improve the community and went for it. The difference this time is that Rimland took what Ithaca most vocal residents wanted into consideration.
A Port Jefferson, Long Island resident for 25 years, Rimland boasts about his new granddaughter, Eden Hazel. While sitting in Center Ithaca with a couple of pages of notes as reference, Rimland adjusts his glasses, smiling at his screaming cell phone.
"It's my daughter," he said. "Hold on one minute. I have to take this." After a few friendly reminders and head nods, Rimland hangs up. "I'm a grandfather you know. What's the date today?" He looks at his watch. "One month old today. My granddaughter is one month old today. Her mother wants to celebrate every week, but I think celebrating each month is better."
Rimland and his family aren't new to the Ithaca community. Of his three children, his 31-year-old daughter graduated from Ithaca College with a degree in health science. After frequent trips back and forth to Ithaca for four years, Rimland says he found a lot of charm and warmth in the community.
"I knew a lot about the city in those four years while she was here," Rimland recalled. "As a property owner, landlord and frequent visitor to the community, I recognized the need for a hotel based on the success of the Hilton. I realized we could use another hotel downtown because I had a hard time getting a room. They were always sold out."
In 1984 Rimland founded Rimland Builders, a privately owned real estate firm that owns and invests in existing and developing commercial and residential properties. The business has developed and redeveloped over a million square feet of commercial property. Online, its headquarters are listed as Medford, Long Island, and a very familiar town: Ithaca, N.Y.
Rimland purchased the Rothschild Building about five years ago. Landlord to Madeline's, Sammy's Pizzeria and Home Green Home, his first big investment in the heart of Ithaca was the Rothschild building renovation. But the developer found himself in a fix when he realized he needed to purchase an additional 2,140 square feet of land along the sidewalk on Aurora Street to enable his hotel construction. "Ironically, it's land that the Rothschild building previously owned and gave to the city," said Rimland with a grin. "When I bought the building we actually still owned the property, not realizing that someday we'd want to develop it. We ended up giving it to the city. So, it's taken me three years to get the property we originally gave to the city back."
Developing in a small town like Ithaca can be akin to going to war. For a community that prides itself on peace, trying to build here is a battlefield where people hurl opinions like grenades. At the April 2nd Common Council meeting, Center Ithaca owner and fellow developer Mack Travis explained how "Ithaca is important to Ithacans" and that Rimland is, at his core, another Ithacan. Travis originally told Rimland that if he can develop in Long Island, then Ithaca would be a cakewalk. After a few votes, Travis asked the Long Island developer how he was holding up. "Ithaca is no longer a cake walk, Jeff told me," Travis said.
Phyllisa DeSarno, deputy director for economic development for the City of Ithaca, has worked with Rimland for about two years now. DeSarno, a 20-year veteran of the developing business, is no stranger to developers trying to strike gold in Ithaca. The word "developer" carries a stigma with the community - and even some city officials, says DeSarno. But she says there are the good developers, the bad ones, and then those like Rimland.
"I met Jeff early on in a meeting," DeSarno said. "I always take people at face value, but I've been very impressed with him. He asks the right questions. He's very sincere. He's very ethical. He's not a villain."
The long road
In the beginning, this slice of land was supposed to be used as residential housing. About five years ago, Ferguson approached Rimland with a study about housing downtown. But the site's location, squeezed between a parking garage and a large building, meant any financially viable residential development would need height - the third rail of developing in a place like Ithaca.
"It's quite apparent that you can't have apartments with windows looking at a brick wall," Rimland said. "We had to build higher to make it work, so we proposed building housing on the site. The same people who were the advocates for the living wage voted down that project. I can't tell you why. They didn't want the height, but they wanted the housing. Obviously you can't have both."
So, the process of developing a hotel began in 2005. In Ithaca, city property can't be sold without the consent of Common Council. For Rimland, who now needed the same slice of city-owned land that he had sold the city a few years back, that meant undergoing 15 votes and hearings until the Board of Public Works agreed that the slice was "surplus" land.
Three years and a few headaches later, Rimland can now call the land his own. "If someone had told me in 2005 that it was going to take three years and 15 votes I probably would've said, 'I don't have the energy for that,'" admitted Rimland. "But it wasn't expressed that way."
The city encouraged Rimland that the project was going to move along as quickly as possible, he says. According to him, the city made a good faith attempt to do things productively and in a timely manner, despite a system that is designed to take such an "enormous" amount of time.
"Every step of the way is a three-part project," Rimland said. The standard process is simple. Common Council can't vote without public comment; public comment can't be held without a committee meeting. After the committee meets to discuss the proposed project and the public voices its support or opposition, only then does it come up for the first vote. When one piece of the proposal is voted and agreed upon, the plans move to the next phase of the offer.
After some fierce opposition from the public and various community leaders, some local business owners, merchants and city officials feared that Rimland would walk away, especially when the living wage debate began.
If the city approved the construction of a Wal-mart without enforcing the standard of a living wage, then why ask any new businesses to pay a living wage? This was the question asked by city resident Vicki Taylor, who came out in support of the project on the April 2 vote.
Rimland has promised to pay all housekeepers $11.18 per hour, 156 percent of the New York State minimum wage and currently the number defined as a living wage by Alternatives Federal Credit Union.
"In my experience public comments are important," Rimland said. "Unfortunately most public comment situations are people who have a negative opinion. Ithaca, however, was very unique. The first couple of hearings, we had people who stood up for the project, unsolicited. I didn't know who they were. I was taken aback by how active they were."
But not everyone was actively in favor of Rimland's hotel. Many other residents voiced concern over the living wage as well as traffic issues, environmental concerns and downtown viability. Audrey Cooper, president of the board of directors for the Greater Ithaca Activities Center, read a statement at the April 2 meeting saying that companies coming to Ithaca shouldn't "exploit opportunities" while also "exploit(ing) workers" rights.
Taylor added that much like she supports the troops in Iraq, but not the war, she supports a living wage for all workers but will not turn down a hotel project because the developer can't promise to pay all employees a living wage. This issue is something Rimland says he has never faced before. As a developer, Rimland is accustomed to building then renting to a municipality or other business that runs on its own.
"Several of the community leaders wanted and felt strongly about those issues so it had to be dealt with and we did," Rimland said. "I was disappointed that even though we went the distance, it was not a unanimous vote. It wasn't enough. Even though we offered more and did more. I guess for some enough is never enough."
Before the April 2 vote, Ferguson sat in his office, concerned over the influence of the living wage argument. "He's not asking anything of the public, but the public is asking everything of him," said Ferguson. "I would hate to see this project go up in smoke because of one issue." Looks as if the fire has been put out.
Moving forward
This isn't the first time a hotel is going in this spot. The current location of this project is on and adjacent to the site of one of Ithaca's most famous hotels, the Hotel Ithaca. The hotel was demolished during the city's period of urban renewal in 1963, to the dismay of many Ithacans.
"Change is a natural part of what happens down here," Ferguson said of downtown. "The impact of the project on the downtown economy is substantial."
After many feasibility studies in association with the Ithaca/Tompkins County Convention and Visitors Bureau, a hotel could add in excess of $2.2 million dollars in retail, food and beverage sales to the 130 nearby restaurants and shops. Ferguson adds that the hotel will provide foot traffic in the center of downtown, where most shops and restaurants are. The hope is that the hotel's proposed 102 hotel rooms will create more opportunity for meetings and conventions in the heart of the city. In the middle of the green movement, a downtown hotel could reduce the reliance on cars, promoting more pedestrians to purchase, walk and eat right outside their hotel room, explains Ferguson.
Rimland's consultants estimate the project will create $652,000 in sales and property tax revenues in 2010. Rimland is seeking no tax abatements, and building a sustainable "green" hotel is a priority as well. The hotel would be one of few green buildings in the city. Fred Bond, director of Ithaca/Tompkins County Convention and Visitors Bureau, said at the April 2 vote, "I believe a third property in the downtown core means that people will have a much greener and sustainable downtown."
While Rimland refused to talk about which flag the hotel will bear because he's still in negotiations, he did say that the brand chosen will market toward tourists, families, business people and college visitors with families. Going green is a fundamental goal. "My son is the one who's into green building. He was ahead of the curve," said Rimland. "He has been pushing me in that direction now for about five years."
With energy costs climbing, Rimland plans to build as energy-efficiently as possible, utilizing construction guidelines as created by the U.S. Green Building Council. The guidelines stipulate that both the process of building and the eventual use of the building will use a considerably less amount of energy and water, will improve air quality and reduce carbon emissions. A few key points a project must take into account include using existing structure, being located near mass transit, relying on heavy foot traffic, choosing low-energy elevators and laundry machines, installing windows that open and planting water-efficient landscaping. So far, Rimland's proposed hotel meets most of the requirements.
The city is now going to begin its architectural review. Rimland says he plans to make the city part of the design process. Rimland hired his tenants, The Thomas Group, a local architectural firm, to design and engineer the project.
"We're uncertain as to what our relationship will be with the Thomas Group moving forward because the hotel may bring in their own architectural firm, but I intend to use Thomas as my consultants throughout the entire project," he added.
Scott Whitham of the Thomas Group says that the challenge of Rimland's project is the site. A suburban site with large dimensions and no existing constrictions is easier to build on than an urban site such as Rimland's, because of the staging, the neighboring buildings, public access and traffic, Whitham said. Code and zoning issues are also more stringent.
"This developer believes that downtown is the economic, culture and social center of the community," said Whitham. "Having your project there becomes a piece of the context, keeps it connected to the community. If you're in Ohio or Nebraska, the big box looks the same wherever you are. If you build downtown there's a different obligation aesthetically to attend to the architectural context of where we are. There are certain architectural technologies on The Commons that this building will have to have to fit in."
While Rimland has already chosen not to include a restaurant in the hotel, a coffee shop is possible.
Into the future
You have to rise to the occasion when you think about doing any kind of development in Ithaca," said DeSarno. "You'll be put to the test."
Rimland and crew have nearly endured one of the toughest stretches. Now that he has the land necessary to make the hotel viable, the project must now go through the site plan review process. Pending approval, construction is scheduled to begin late this year or in early 2009. "I have an interest in downtown as a property owner and as a landlord for other property," said Rimland. "So I have a vested interest in making sure downtown is viable five to 10 years from now. I've become very fond of the city. I've made some very good friendships here as well as relationships with other business owners and people within the community."
After the ride Rimland's been on for three years, when asked when construction will begin on the site he replies with a hearty laugh and grin. "It took us three years to get here...We're hopeful that we'll be building in 2009. How's that?"
©Ithaca Times 2008