Cornell and leaders of the city of Ithaca have reached conceptual agreement on a complex project that would strengthen the Ithaca Commons by bringing additional jobs and sales- and property-tax revenues to downtown Ithaca.

The proposal involves a joint venture between the city, the university and a private developer to construct a multi-story, 130,000-square-foot office-building project at an estimated cost of more than $17 million. Cornell University would be the major tenant, renting space for about 300 employees.

The proposed building would provide approximately 10,000 square feet of retail space on the first floor, 70,000 square feet of office space that Cornell would lease for 20 years, and another 50,000 square feet of office space. Although a site for the project has not been selected, the prime location under consideration is the current site of the main office of the Tompkins County Trust Company.

Cornell President Hunter Rawlings said the Trust Company site "is a prime location because it allows the project to deliver its many benefits where they are needed most, on the Ithaca Commons." It is likely that the new building would house the existing banking services currently operated at the Trust Company's main office.

To accommodate the combined office and retail project, and to provide additional parking to serve the Ithaca Commons and the downtown area, Ithaca Mayor Alan Cohen will recommend to Common Council the construction of a new 600-car parking garage.

Announcement of the proposal came this morning (September 20, 2000) during a news conference on the Ithaca Commons that included officials from the city and the university, as well as the Ithaca Downtown Partnership and Tompkins County government.

The economic development project was first proposed as a concept by Cohen and Common Council member Susan Blumenthal, chair of the city's Planning and Economic Development Committee, and then embraced by Rawlings.The project is expected to create hundreds of new jobs in the downtown area, in addition to the 300 from Cornell. Other expected benefits include new retail sales and an increase in the city's sales-tax receipts, and increased property-tax revenues.

"Cornell is committed to the economic health of the city of Ithaca and to the health and vibrancy of the Commons," Rawlings said during the news conference. "This partnership is an example of how Cornell and the city can work together for our mutual benefit and to make our community a better place in which to work and live. In the long run, a vibrant downtown will help the university remain competitive in recruiting students, faculty, and staff."

Rawlings added, "Obviously, there are many details to be worked out before the idea becomes a reality. The plan must make sense from engineering, environmental, and financial standpoints, but I am convinced that if we all work together it will be extraordinarily beneficial for our community."

Cohen said: "This project will strengthen the heart of our community. By bringing more jobs and people to the Commons, we will help maintain a healthy downtown business climate. That, in turn, will enhance the quality of life for people who live in the surrounding residential areas."

Cohen noted that one person working downtown has the same economic impact as four people visiting or shopping downtown and that one person living downtown has the same impact as eight people visiting or shopping downtown.

"We have been working to stimulate development throughout the community, and downtown has been no exception," Cohen said. "This new initiative is the latest in a series of investments in downtown that are helping to improve its health and vitality."

He cited multiple examples of recent economic, cultural and civic investments in the downtown area. Among them are the new county library, renovation of the old post office that includes the new Town of Ithaca hall, renovation of the State Theatre and expansion of the Community School of Music and Arts, the proposed hotel, recent expansions and proposed expansions by retailers, improvements to the existing parking garages, and the ongoing upgrade of the Ithaca Commons.

The tentative timetable for the project calls for university and city reviews to begin immediately. The university will reach out to developers on a local, regional and national basis and the developer will be responsible for acquiring the site, identifying tenants for the retail space, and leasing the 50,000 square feet not occupied by Cornell. Assuming the municipal approval process can be completed next year, construction would begin in 2002 and take 18 to 24 months to complete.

The Cornell offices would be relocated from existing rental spaces off campus and from some campus locations. "The addition of Cornell employees will give the university a vital presence on the Commons and significantly spotlight the success of the downtown business district," Rawlings said. Cornell will redirect existing rental expenditures to the new project as a major source of its funding.

Common Council member Blumenthal said: "In addition to the economic benefits in terms of people and jobs, we welcome Cornell University as a neighbor in our downtown community. This not only will enhance the image of downtown, but it will give new visibility to the university and make it a more integral part of the Ithaca community."

She emphasized that quality office space in downtown Ithaca is in short supply, particularly "Class A" -- modern, efficient space. "The additional space will put us in an advantageous position to meet the current and future demands of professional office-space tenants, something that has been on our wish list for a very long time."

Blumenthal added, "I am delighted the university is collaborating in the city's vision for an active, vibrant downtown, which, in turn, will benefit all residents in the county."

Mack Travis, president of the Ithaca Downtown Partnership (IDP), said the project complements IDP's 10-year strategy for downtown development. "This project alone will put us halfway to the goal of attracting 1,000 new jobs to the downtown area by the year 2010," he said.

"This will have an enormous positive effect on the downtown economy. This project not only will bring 300 Cornell employees and 200 other employees to our downtown business district, it will generate the potential for several hundred more jobs in a ripple effect. It will serve as a magnet for other private-sector investment, as well as provide a new parking garage, which will solve a major downtown need," Travis said.

Michael Lane, vice chair of the Tompkins County Board of Representatives, noting that downtown Ithaca is the center of government and commerce for the county, said: "The city is the economic engine of the county, and county government is the largest employer in downtown Ithaca. This project will mean more economic activity here, and that is something we encourage. It is good news for all of Tompkins County when the county seat is active, healthy, and vibrant."