IURA approves loan changes for GreenStar and $100,000 loan for Ithaca Coffee Company; board amends Cinemapolis lease tax responsibility

The Ithaca Urban Renewal Agency on Wednesday approved several community-lending and lease-amendment items, including a change in loan purpose for GreenStar and a $100,000 loan to Ithaca Coffee Company to convert space at 702 Hancock Street into a retail espresso bar.

At an Economic Development Committee meeting, members supported amending the Cinemapolis lease so the theater would no longer carry the property-tax obligation; staff said the intent is to transfer that responsibility to the parking/owner structure so the county Industrial Development Agency can implement a PILOT (payment in lieu of taxes) agreement. The board approved the amendment by voice vote.

On lending, staff described GreenStar’s original loan as intended for job creation but said COVID-era business changes led the farm-to-table operator to document job retention instead. Committee members said changing the loan to a job-retention loan was administratively straightforward and recommended approval; the board adopted the recommendation.

The board also approved a $100,000 loan to Ithaca Coffee Company to renovate 702 Hancock Street for a retail espresso bar and move retail operations from the Triphammer (Trofhammer) location. Staff said the loan is consistent with recent retail loans (typically $75,000–$150,000) and that the agency applies a public-benefit test of approximately $35,000 per job created or retained. Staff said the project is expected to support about 3 full‑time equivalent (FTE) jobs. The loan's interest rate was described as 75% of the prime rate, quoted as 5.6% at the time of the meeting, with an eight-year term.

The approvals took place during the committee reports portion of the meeting. Staff noted that many recent retail loans fall in the same loan-size range and that the Ithaca Coffee Company’s renovation includes construction and equipment purchase.