2010 Saratoga County
Industrial Development Agency Meeting Minutes
MEETING MINUTES
The meeting held at the
office of the Saratoga County planning department located at 50 West High
Street in the village of Ballston Spa was called to order at 8:00 a.m.
The following members,
staff and guests were present:
Members: Raymond Callanan,
Chairman; Richard Dunn, Glenn Rockwood, Michael Mooney, Arthur Johnson, Charles
Hanehan and Rod Sutton.
Staff
& Guests: Lawrence Benton, CEO; John Murray, CFO; Michael
Valentine, Assistant Administrator; Michael Toohey, Counsel; James Carminucci, Bond Counsel; James Angus, SEDC; Drew Kerr of
the Post-Star; and Stephen Williams of the Daily Gazette.
The minutes of the December
14, 2009 meeting were unanimously approved following a motion by Mr. Dunn that
was seconded by Mr. Mooney.
The Chairman stated that as today’s meeting is the first
of 2010 it serves as the annual reorganization meeting of the Agency. He stated that he saw no need to make changes
of officers or committee memberships and, therefore, asked the members to
consider the current slate to serve again as officers for the calendar year
2010 and that the existing committee memberships be considered for
re-appointment for 2010. He also requested
that Mr. Johnson continue in the position of the Agency’s Ethics Officer for
2010.
There being no further questions or comments, Mr.
Johnson moved to approve the slate of Agency officers, the membership of
committees, and an Ethics Officer for 2010.
Mr. Mooney seconded the motion.
Resolution
#1038
RESOLVED THAT for calendar year 2010 the following
members of the Board of the Saratoga County Industrial Development Agency shall
serve the office and committee as designated:
Chairman:
Vice-chairman: Richard Dunn
Treasurer: Richard Dunn
Assistant Treasurer: Glenn Rockwood
Secretary: Rod Sutton
Assistant Secretary: Glenn Rockwood
Governance Michael
Mooney
Committee: Charles Hanehan
Glenn
Rockwood
Chairman
Callanan, ex officio
Audit Committee: Richard Dunn
Rodney
Sutton
Arthur
Johnson
Chairman
Callanan, ex officio
Ethics
Officer: Arthur
Johnson
Ayes: 7
Noes: 0
Adopted: 7-0
Mr. Carminucci advised that
new state legislation calls for the creation of a Finance Committee, but Mr.
Benton asked whether the duties and responsibilities are already being met by
our Audit Committee. Following
discussion it was the Board’s consensus to create a separate Finance Committee
that would exist and operate as a committee of the whole. There being no further questions or comments,
Mr. Mooney moved to authorize the creation of a Finance Committee. Mr. Dunn seconded the motion.
Resolution
#1039
RESOLVED
THAT
for the calendar year 2010 the Saratoga County Industrial Development Agency
does hereby create and establish a Finance Committee in compliance with the
Public Authorities legislation;
BE
IT FURTHER RESOLVED THAT the Finance Committee shall act as a
Committee of the Whole and be comprised of the duly authorized Board Members
serving for calendar year 2010.
Ayes: 7
Noes: 0
Adopted: 7-0
Global
Foundries
Mr. Carminucci
distributed a resolution for which consideration was postponed from the
December meeting. He stated that there
is no borrowing involved only the requirement of Global Foundries by Empire
State Development that the Company’s performance obligations (under the grant
disbursement agreements) are secured, and that security is a mortgage on the
real estate. The IDA has been in title
to the LFTC property since July 21, 2009 and must, therefore, be a party to the
mortgage. He added that because ESDC is
an agency of NYS it is his opinion that the Company is exempt from the mortgage
recording tax at closing.
Along with the Company, the IDA is being
requested by the NYS ESDC to execute two mortgages, one in the amount of
ninety-nine million dollars and another for one million dollars. This is a requirement of the grant
distribution agreement between the Company and ESDC as is the obligation to
meet certain criteria for levels of employment.
Mr. Carminucci
noted that by January 1, 2014 Global Foundries is required to employ 1,205 and
for each of the following seven years there are to be (minimally) yearly
averages of 80% of that trigger number employed at the facility. Mr. Toohey stated that there are no financial
implications to the IDA’s execution of the mortgages and the requirements that
are part of those documents are to be met by Global Foundries.
There being no further questions or
comments, Mr. Dunn moved to authorize the execution of any and all documents
necessary and related to the Global Foundries mortgage. Mr. Sutton seconded the motion.
A roll call vote was taken on Resolution #
1040 (attached) with the following results.
Ayes:
Messrs. Mooney, Johnson, Sutton, Rockwood, Dunn, Hanehan, and Callanan.
Noes: none
Adopted:
7-0
LFTCEDC: Affirm Loan Agreement
Mr. Toohey
presented the final draft of a loan agreement resulting from several committee
meetings and Board discussion. He
explained that obligation for the $650,000 consolidated loan of 2004 with SEDC
was assumed by LFTCEDC through an agreement with the Agency on November 14,
2007. LFTCEDC (the EDC) paid interest
due on the loan through July 31, 2009 and has worked with an Agency committee
toward a renegotiated loan with new terms which were approved by the Board on
October 13, 2009 (Res. #1034). Mr.
Toohey stated that the loan, upon execution of the Loan Agreement by the
parties, will be extended for one year with an interest rate of 1.4266% per
year. The principal and accrued interest
(from Aug. 1, 2009 thru July 31, 2010) are due on July 31, 2010. To a question from Mr. Dunn, Mr. Toohey
answered that if there was no payment of principal and interest made by July
31, 2010 then the calculation of interest would revert to a rate of 5%. Mr. Sutton asked if the EDC was aware of that
provision and Mr. Toohey stated that their attorney was so aware. Mr. Dunn explained that in his conversations
with Mr. Relyea (LFTCEDC) there was the desire to
restructure the loan because the interest cost made the debt very expensive to
carry. Mr. Dunn expressed that by
authorizing the execution of a reaffirmed loan agreement the Agency is
providing the EDC the opportunity for carrying a more manageable debt to assist
the promotion of economic development and operations.
There being no
further questions or comments, Mr. Dunn moved to authorize the Chairman or an
officer to execute the loan agreement between the
Resolution
#1041
WHEREAS,
on June 25, 2004, the SCIDA and Saratoga Economic Development Company (“SEDC”)
entered into a Consolidated Loan Agreement, which consolidated three (3)
separate loans in the amount of Six Hundred Fifty Thousand and 00/100
($650,000.00) Dollars (the “Loan”) which SCIDA had loaned, with interest, to
the SEDC; and
WHEREAS, by Agreement between SCIDA and
LFTCEDC, LFTCEDC agreed to assume the responsibility and liability for the
repayment for the Loan; and
WHEREAS, LFTCEDC has paid
to the SCIDA all interest owned to SCIDA on the Loan through July 31, 2009; and
WHEREAS, LFTCEDC wishes to renegotiate
the terms of the Loan with SCIDA; and
WHEREAS, SCIDA, pursuant to Resolution
1034 passed at the SCIDA meeting on October 13, 2009 has agreed to renegotiate
the terms of the Loan with LFTCEDC.
NOW THEREFORE BE IT RESOLVED THAT upon
the covenants and conditions contained herein, the parties to the Agreement
agree as follows:
1. As of the date of this Agreement, LFTCEDC
acknowledges and reaffirms that it is indebted to SCIDA in the principal amount
of Six Hundred Fifty Thousand and 00/100 ($650,000.00) Dollars with interest
from August 1, 2009 (the “Debt”).
2. That
so as to assist LFTCEDC in continuing to promote the economic welfare,
recreational opportunities and prosperity of the people of the Saratoga County,
New York and the State of New York, the SCIDA, by Resolution 1034 of said
Agency, passed on the 13th day of October 2009 has resolved and
approved an extension of the Loan to LFTCEDC through July 31, 2010.
3. LFTCEDC
agrees to pay to SCIDA the principal indebtedness of Six Hundred Fifty Thousand
and 00/100 ($650,000.00) Dollars with interest thereon from the 1st
day of August 2009 until the 31st day of July 2010 at an interest
rate of 1.4266% per annum, with said obligation to be due on July 31, 2010 (the
“Due Date”).
4. If
the outstanding Debt, including principal and interest is not paid in full to
the SCIDA by LFTCEDC on or before July 31, 2010, then the interest due on the
outstanding Debt and accumulated interest shall increase to five (5%) percent
per annum until said obligation is paid in full or until a modification of this
Agreement is agreed to by SCIDA and LFTCEDC in writing.
Ayes: 7
Noes: 0
Adopted: 7-0
Contract Amendment: SEDC Marketing
Agreement
Mr. Benton
provided a brief history of the Board’s October 13, 2009 resolution
(#1033). Through the resolution the
Agency approved the expenditure of $200,000 as a grant to SEDC. The purpose of providing the grant is to
promote/market economic opportunities in Saratoga County, attract businesses
and assist in the development of industrial/commercial sites within the county. The term of the Promotion Agreement is from
October 13, 2009 through December 31, 2010 and after six months a written
report by SEDC is to be submitted to a committee comprised of the Chairman
(ex-officio), Mr. Dunn, Mr. Murray and Mr. Benton before being presented to the
Board. The written report will provide
information on where SEDC has expended the grant funds and form the basis of
the committee’s review and approval of the expenditures for payment by the
Agency. The Agency will get a report by
June 30, 2010, covering activity from October 13, 2009, through June 30, 2010
and then a second report by January 30, 2011, covering activity form July 1,
2010 through December 31, 2010.
Discussion was had
on a request by Mr. Brobston for approval of
expenditures by SEDC prior to the October 13th date associated with
the Board resolution. He would like to
have the issue of expenditures already made for the Semico/Europa Trade Show (incurred before October 13) addressed
prior to the execution of the formal agreement.
Mr. Johnson and Mr. Angus discussed a possible revision that would allow
for expenses incurred after October 1, 2009.
Mr. Dunn suggested that Paragraph 1 of the draft of the Promotion
Agreement being reviewed this morning should cite the allocation of reserve
funds for SEDC use at promotion events during the period of October 1, 2009 and
December 31, 2010. This paragraph, he
noted, would then address the concern related to the funding of expenditures
prior to the October 13 date of the meeting and resolution.
Mr. Mooney asked
if the Promotion Agreement falls in line with the Board’s previous discussion
of its Policy on the Use of Reserve Funds and Mr. Toohey explained that the
Promotion Agreement is so structured to specifically meet IDA legislation. Mr. Toohey noted that there may be instances
that SEDC will need to obtain front-ended written approval from the committee
for an expenditure before it is made.
Mr. Murray cited a conflict between Paragraphs 2 and 3 on the second
page of the Agreement in relation to how both reimbursements for expenditures
already made and prior-approved expenditures are going to be handled. Discussion was had on the mechanics of how
these two methods – reimbursement and prior-approval – would work. Mr. Toohey outlined the possible steps in the
process:
·
Reimbursement
for expenditures through approval by the committee,
·
SEDC
provides invoices to the committee and explains them,
·
The
committee makes a decision on what is approvable,
·
The IDA
writes a check to SEDC,
·
OR
·
As in
current Paragraph 2, a check is written by IDA from its fund balance to the
account of SEDC and SEDC draws on the account for its expenditures.
Mr. Carminucci noted that if the policy is meant to be a
reimbursement for monies already expended and then reviewed/approved by a
committee, then there is no need for a separate account. He added that the adopted policy should
declare that this Policy Agreement does not affect the current fee-split
agreement between the IDA and SEDC. Mr.
Angus stated that he always understood this to be a reimbursement policy.
Following further
discussion and comments, Mr. Hanehan moved to approve
the Promotion Agreement as presented with the recommended revisions to
Paragraph 2 of Page Two in reference to prior-approved expenditures and the
need for a separate bank account. Mr.
Dunn seconded the motion and the Chairman requested a roll call vote on
Resolution #1042 (attached).
Ayes: Mr. Mooney,
Johnson, Sutton, Rockwood, Dunn, Hanehan and Callanan
Noes: none
Adopted:
7-0
FY 2009 Annual Report
Mr. Benton
informed the Board that he has met with the auditor to begin the process of
compiling information from Companies and reviewing financial data and records
associated with operations for 2009.
Letters were sent to 38 active companies with survey forms to be
completed and returned, providing information on the number of construction
jobs at the facility during 2009, the number of Full-Time Equivalency jobs at
the facility at year-end, and the amount of sales taxes exempted during 2009.
He added that
there are seven or eight companies for which information on their bond
financing is required. More information
is being asked about those projects being newly reported about this year, he
stated.
2010 County/Local PILOT Billings
At this time each
year PILOT bills are sent out to active Companies for payment of town and
county taxes. He stated that we are now
preparing billings to 22 Companies for PILOT payments and anticipate receipt of
these payments within three to four weeks.
Fund Balance Development Program
Mr. Benton
informed Members that a check for $200,000 was released to the town of
Corinth at the end of December as the initial payment from the $300,000
loan approved by the Agency in October to assist the town in the repair and
upgrade of the town-owned rail. Mr.
Benton stated that he spoke with Mayor Winslow of the village of Corinth regarding
the request made by the village for financial assistance related to a water
treatment plant. He informed the mayor
that after much Board discussion Agency members were not comfortable with
identifying assistance to construct a municipal water system as an IDA-type
economic development and job creation project.
Further, there did not appear to be a connection with providing such
financial assistance and bringing jobs to the former International Paper
facility. Lastly, Mr. Benton informed
the Board Members that SEDC has brought a prospective client to the
subcommittee for preliminary discussion about assistance with a commercial park
in the town of Ballston. Presently
there is talking about basic issues, with more to be reported at the next
meeting.
Completed Projects
Mr. Valentine
stated that on December 17, 2009 the Agency executed the quit claim deed to
enable the transfer of title from the IDA back to SSP Development Corporation
located in the town of Ballston.
Recording of the deed in the county clerk’s office was just recently
completed. After the taxable status date
of March 1st the property will be moved from Roll Section 8 (wholly
exempt) to Roll Section 1 (fully taxable) and future tax bills will no longer
be issued by the Agency. Mr. Benton
informed the Members that there are seven other companies for which the period
of tax abatement has expired with their final PILOT payment, those being: Atlantic British, Bombay Development,
Architectural Glass & Mirror, Buffers Alley Holding Co., NKT, Inc./Yankee
One Dollar, South Glens Falls Hydro Partnership, and Dayton Hudson/Target. He explained that letters of notification
will be sent by certified mail/return receipt requested to the seven companies
along with copies of their deeds (transferring title to the IDA). In the letters he will direct the companies
to contact Agency counsel to make the necessary arrangements for executing and
filing of their respective quit claim deeds and complementing forms. Mr. Toohey asked that the Board authorize the
execution of these deeds by an officer and counsel’s administration and costs
for said reconveyances.
There being no
further questions or comments, Mr. Mooney moved to authorize the transmittal
and execution of those documents necessary for the reconveyance
of title to seven companies from the IDA.
Mr. Johnson seconded the motion.
Resolution
#1043
WHEREAS, the tax abatement period for Atlantic British Associates, Bombay
Development Corp., Architectural Glass & Mirror, Buffers Alley Holding Co.,
NKT, Inc., South Glens Falls Hydro Partnership, and Dayton Hudson Corporation
has expired; and
WHEREAS, it is the desire and intent that title to the property of said Companies
be returned from that of the IDA and that the taxable status of said properties
become fully taxable; be it
RESOLVED THAT the
Industrial Development Agency of Saratoga County does hereby authorize the
execution of and administration of any and all documents necessary for and
associated with the transfer of title from the Agency to the seven companies so
noted.
Ayes:
7
Noes: 0
Adopted: 7-0
Mr.
Benton distributed copies of the recently submitted Construction Completion
Report for the Saratoga Eagle Sales & Service facility located in the
Grande Industrial Park in Saratoga Springs.
The Report indicates that the new beverage distribution facility was
constructed using two prime contractors, 40 subcontractors, and 20
suppliers. There were 225 construction
employees involved in completion of the facility.
Adjournment
There being no
further questions or comments, Mr. Johnson moved to adjourn the meeting. Mr. Hanehan
seconded the motion, with all in favor.
Respectfully
submitted by,
Michael Valentine
Assistant Administrator
MEETING MINUTES
The meeting held at the
office of the Saratoga County planning department located at 50 West High
Street in the village of Ballston Spa was called to order at 8:00 a.m.
The following members,
staff and guests were present:
Members: Raymond Callanan,
Chairman; Richard Dunn, Arthur Johnson, Charles Hanehan
and Glenn Rockwood.
Staff
& Guests: John Murray, CFO; Michael
Valentine, Assistant Administrator; Michael Toohey, Counsel; James Carminucci, Bond Counsel; Dennis Brobston
and James Angus, SEDC; Frank and Rosemary Rossi; Thomas Savino
(CB Richard Ellis), and Stephen Williams of the Daily Gazette.
Action on the minutes of
the January 11, 2010 meeting was deferred until the March meeting.
The Chairman introduced Bill
Simcoe who is the executive director of the Saratoga County Water
Authority. In January, the Agency
received a letter from the town of
Mr. Callanan
explained that the town of
Mr. Simcoe offered to provide Members with any additional information it may need now or in the future. Mr. Callanan thanked Mr. Simcoe for taking the time to prepare and provide the presentation material for the Board.
Use
of Agency Fund Balance
Last week Mr. Benton
provided a final draft resolution following minor revisions and corrected
discrepancies as determined in numerous subcommittee meetings and Board discussions. The resolution drafted by Agency counsel as a
result of those discussions is submitted for approval today with incorporation
of comments last discussed at the December 14, 2009 Board meeting. There has been a lot of review and a lot of
give and take to get to this point.
There being no further questions or comments, Mr. Dunn moved to
authorize execution of the fund balance resolution submitted by Counsel as a
product of subcommittee and Board review and discussion. Mr. Johnson seconded the motion.
A roll call vote was taken
on Resolution #1044 (attached) with the following results.
Ayes:
Messrs.
Johnson, Dunn, Hanehan, Rockwood, and Chairman Callanan.
Noes: none
Adopted: 5-0
Fund
Balance Application: Loan, Rossi/Monaco Mixed-Use Development
The Chairman provided a briefing of previous
meetings (Dec. 4th and 10th) with the applicants and the
subcommittee of the Agency. He explained
that the property being considered for development is located in the northeast
quadrant of the Rt. 67/Rt. 50 intersection in the town of
pointed out the cost estimate of $502,000
for these soft costs that have been delineated in the Flex Park presentation
materials prepared by Mr. Savino of CB Richard Ellis
(CBRE).
Mr. Savino stated
that a PUD is required in this zoning district in the town of
Mr. Savino
presented a conceptual site plan with 15 buildings of varying size that
comprise 402,500 square feet of retail and mixed-use flex space. Sanitary sewer is at the rear of the site and
will require a boring under the existing railroad tracks. Mr. Rossi indicated that to a certain degree
he previously undertook some features of site development. He indicated that this work represents an
investment of roughly $1M and he, therefore, expects the infrastructure and
road/parking to follow that to some degree.
Mr. Johnson asked if that means Mr. Rossi will develop the
infrastructure himself and Mr. Savino stated that the
approval may be sold to others for development.
The Chairman stated that while the town is encouraged with the
possibility of the proper use and development of this location, the role of the
IDA is to create and retain employment in the county. He suggested that the number of jobs be
addressed through future presentation materials. Mr. Dunn asked if there has been any
conversation with the town considering tax abatements for future end users and
Mr. Savino stated that there has not been any such
discussion. Mr. Callanan
asked if we have a formal letter of request and Mr. Dunn asked how much of a
loan is being requested. Mr. Rossi
indicated that this has not yet been determined. Mr. Murray suggested that before the
subcommittee gets too far into this project it would be wise to have a letter
from the applicants addressing jobs and the loan amount requested along with
the defined development tasks associated with that request.
Mr. Johnson stated that the Agency recently
adopted a fund balance resolution and it should be noted that the IDA will not
fund a project in its entirety. Mr. Toohey
reiterated that the function of the IDA is to create and retain jobs and that
the Agency will not be the primary or sole source of funding. Mr. Rockwood asked about the Agency’s
involvement in a project of a retail nature and Mr. Toohey stated that IDA
legislation creates a strong limitation on the IDA becoming involved in
assisting retail projects (end users), but there is no restriction involving
the provision of a loan as assistance.
Mr. Brobston stated that NYSERDA is another
source of financial assistance. He asked
if there was any value determined for the raw land and Mr. Savino
stated that it is difficult to determine because of the wetlands. Working backwards from the conceptual square
footage (402,500) at $10-15/s.f. may provide an
estimate of the land value ($4-6M), he stated.
Mr. Callanan asked
if there were any encumbrances on the properties and Mr. Rossi replied that
there is no mortgage on his parcels while Ms. Monaco indicated that her
properties were mortgaged. The Chairman
asked if the proposed development fits into SEDC’s marketing and promotion
program and Mr. Brobston stated that indeed it does
as it is marketable in light of the scarce supply of commercial/industrial flex
space in the county. The Chairman also
asked how long it would take to get all of the necessary studies completed and
Mr. Savino expressed that it may take 12-18
months. Mr. Johnson said that he
believes the property to be a great site with a lot of potential and is worth
further consideration as long as it is increasing the town’s tax base and
creating jobs. The Chairman stated that
the project will be submitted to a subcommittee comprised of himself, Mr. Dunn,
Mr. Johnson and Mr. Benton for further discussion prior to coming back to the
full Board.
Fund Balance Application: Grant,
Saratoga Springs Preservation Foundation/Racecourse Inventory
The Saratoga
Springs Preservation Foundation has asked the Agency to consider a $10,000
grant to complement funds from other contributors in an effort to conduct an
inventory of all structures and landscape that are considered important
historical and cultural attributes of the Saratoga Race Course. The inventory
is a requirement of NYRA’s recent 25-yr. agreement as franchise operator. Conducting the inventory/survey of these
structures has been presented as being critical because of concern for the
property’s historical integrity in the face of NYRA’s upcoming capital
improvements and the desire to modernize the facility. The Chairman noted the Agency’s previous
expenditure of $60,000 for an analysis of the economic impact of the racecourse
to tourism, agriculture and general economy of Saratoga County. It was the consensus of Members that the
proposed inventory is just as important for jobs, tourism, and preservation of
the historic charm of the racecourse.
Previous Board
discussion of the grant request has focused on the provision in the Agency
resolution (on the use of its fund balance) that permits grant funding only
through municipalities. The Chairman
suggested that Mr. Benton be contacted to discuss who will administer any
grant. Mr. Dunn offered to contact the
city to determine its willingness to take on the role of petitioner for Agency
funds. The Preservation Foundation,
therefore, contacted Mayor Johnson to seek the city’s formal request to the IDA
as a means of complying with IDA policy.
Mr. Benton has been working with Geoff Bornemann,
a Foundation member, to arrange for the submission of a formal request by the
city to accept a grant from the IDA.
Contract with Agency Counsel: Legal
Services Fund Balance
At the November 9,
2009 meeting of the IDA, Resolution #1035 was approved to authorize a one-year
contractual agreement with Snyder, Kiley, Toohey, Corbet and Cox for the rendering of legal services
associated with the use of Agency fund balance applications and documents. To date, the law firm has not yet written a
contract for execution by the Chairman.
Mr. Toohey expects one to be submitted at a one of the IDA’s next
meetings.
2009 Annual Report
Last week Mr.
Benton provided by email his final draft of a narrative portion (Operations and
Accomplishments) of the Agency’s Annual Report.
Mr. Valentine distributed copies to members and asked that they review
the Report and provide either he or Mr. Benton with any questions or comments
they may have. A copy of the draft will
be attached to these minutes.
Letter of Support: Abele Grant
Application (Hlfmn)
At the end of last
month SEDC requested another letter of support from the Agency for an updated
Regional Blueprint application to submit to Empire State Development on behalf
of the Abele/Clemente Industrial Park along NYS Rt. 146 in Halfmoon. This application represents a third-round
submission for funds to develop a portion of improvements for their industrial
park. Mr. Brobston
indicated that no Saratoga County sites have been funded, but projects in
Albany, Glens Falls and Amsterdam have received approval of funding. Application points are achievable with
supportive evidence indicating that the Agency has a fund balance it may consider
using for appropriate improvements to Saratoga County sites. Mr. Valentine provided Members with the email
correspondence from SEDC and noted that based
upon similar
project support and conversation with the Chairman, Mr. Benton sent a letter of
support to ESD.
PILOT Chart: 2010 County/Local Taxes
Mr. Valentine
informed Members that 20 PILOT billings for county and local taxes were mailed
on January 19 with payments due 30 days later.
He distributed a Chart of PILOT payments received as of February 5th,
noting that six payments were then outstanding.
He noted that after 15 years of PILOT payments based upon revenues,
South Glens Falls Hydro Partnership will be making its first payment of town
and county taxes based on full value assessment.
Transfers of Title: Letters to
Companies
Mr. Valentine
provided Members with a copy of one of the seven letters sent to companies on
Friday, February 5th by return receipt requested. Letters were sent to Atlantic British
Associates, Architectural Glass and Mirror, Bombay Development, Buffers Alley
Holding Company, NKT, Inc., Target Corporation, and SGF Limited Partnership
(Hydro) advising each Company that its abatement period had expired. A copy of the initial deed that transferred
title from the Company to the IDA was enclosed and a request was made that the
Company contact Agency counsel to arrange for the provision of a quit claim
deed to reconvey title prior to the March 1, 2010
taxable status date.
Other Business
Mr. Toohey
explained that the transfer of the hydro property (South Glens Falls Limited
Partnership) will involve a bill of sale for reconveyance
of equipment and personal property rather than a quit claim deed for title
(involving a lease rather than a conveyance).
There being no further questions or comments, Mr. Dunn moved to
authorize the transmittal and execution of those documents necessary for the reconveyance. Mr. Hanehan seconded the motion.
Resolution
#1045
WHEREAS, the abatement period for South Glens Falls Limited Partnership has
expired; and
WHEREAS, it is the desire and intent that transfer of control of the property be
returned from that of the IDA to said Company; and
WHEREAS, it is also the desire of the Agency that the taxable status of said
property become fully taxable; therefore, be it
RESOLVED THAT the
Industrial Development Agency of Saratoga County does hereby authorize the
execution of and administration of any and all documents necessary for and
associated with the reconveyance of equipment and
personal property and for the transfer of the real property from Roll Section
(8), wholly exempt, to Roll Section (1), fully taxable.
Ayes:
5
Noes: 0
Adopted: 5-0
Mr.
Valentine stated that the subcommittee involved with the review of the SEDC’s
Marketing/Promotion Agreement has completed its review of the document and
the minor revisions made since the Agency’s October 13, 2009 resolution
authorizing the entering into an Agreement.
Final modifications were made by Agency counsel following the January 11
IDA meeting, its review by SEDC counsel, and followed by Member review and
comments. As there were no additional
questions or comments, Mr. Johnson moved to authorize the Chairman to sign the
Agency’s Promotion Agreement with the SEDC.
Mr. Dunn seconded the motion.
Resolution
#1046
RESOLVED THAT as favorable review by all involved parties has been
completed, the Saratoga County IDA does hereby authorize the Chairman or any
other officer to execute the Promotion Agreement between the SCIDA and SEDC
approved by Resolution #1033 on October 13, 2009.
Ayes: 5
Noes: 0
Adopted: 5-0
Mr.
Valentine informed the Board that on December 17, 2009 (prior to the recent
letters requesting the execution of quit claim deeds) title to the real
property of SSP Development of Ballston was reconveyed
from the IDA to the Company.
Mr.
Valentine distributed a January 29, 2010 letter from Saratoga Springs city
engineer Paul K. Male requesting $12,891.95 of the $75,000 Public
Infrastructure Grant made by the IDA for public improvements at the Grande
Industrial Park. It is a requirement
that approval for any use of these grant funds are approved and administered by
Quad/Graphics, Inc. Mr. Male is requesting
a grant from the IDA to pay for a change order submitted by the city’s
contractor when he replaced an 8-inch cast iron force main with a 12-inch
plastic force main. The project was budgeted at $300,000 by the city, but the
low bid came in at $341,000. The city
was unaware of the contractor’s change order and closed out the project with it
being unpaid and now unbudgeted in the new year. It was the consensus of the Board following
discussion that the work undertaken on the sewer main is normal repair and
maintenance for a municipality and does not fall within the realm or criteria
for an Agency grant to assist and encourage economic development and the
creation of new jobs. Additionally, a
bit of confusion was noted in that the city is requesting financial assistance
through two separate mechanisms – one being a request to use the $75,000 set
aside in a separate fund for public infrastructure at the industrial park and a
second source being the request for assistance from the Agency’s fund balance. The city can, of course, request Quad
Graphics’ approval of a grant from the $75,000; however, the Board did not see
the request meeting Quad’s criteria.
Additionally, financing the municipal repair of an existing sewer main
does not fulfill the purpose of the Agency’s grant assistance. Mr. Valentine will relay to Mr. Male the
Board’s determination.
At
the end of last month United STEP 1 provided staff with the Tenant
Report required to verify that the Company meets the criterion of its PILOT
Agreement relative to 50% or more of its leasable square footage being utilized
for manufacturing purposes. The Report
(attached) provides leased square footage and employment numbers for six
current tenants, noting that the 20,000+ sq.ft. to be
leased by Starfire is not yet occupied following the
latter’s bankruptcy. Mr. Valentine
informed Members that e.nfrastructure, now leasing
from Fortress Partners (Marini) in Halfmoon will soon
occupy space in the STEP building.
Mr.
Valentine explained to the Board that with the beginning of each new year he
makes a visit to three or four companies to follow-up on employment numbers
provided as part of the survey for our Annual Financial Report. This year he has contacted Saratoga Eagle in
Saratoga Springs and United STEP 1 and Global Foundries in Malta for site
visits. Once established he will review
and report on payroll/personnel data that confirms full-time equivalency
employment levels of each company as of December 31, 2009. At the end of January Mr. Benton provided Members
with Global Foundries’ year-end report on employment, noting that there
were 28 FTEs at Global’s Malta office (administration
and support). This number is expected to
increase to 285 by 2010 year-end.
Construction jobs were reported at a weekly high of 250.
Adjournment
There being no
further questions or comments, Mr. Johnson moved to adjourn the meeting. Mr. Dunn seconded the motion, with all in
favor.
Respectfully
submitted by,
Michael Valentine
Assistant Administrator
MEETING MINUTES
The meeting held at the
office of the Saratoga County planning department located at 50 West High
Street in the village of Ballston Spa was called to order at 8:00 a.m.
The following members,
staff and guests were present:
Members: Richard Dunn,
Vice-Chairman; Arthur Johnson, Charles Hanehan, Rod
Sutton, and Michael Mooney.
Staff
& Guests: John Murray, CFO; Michael
Valentine, Assistant Administrator; Michael Toohey, Counsel; James Carminucci, Bond Counsel; Dennis Brobston,
SEDC; Anita Daly, county supervisor (CP); Patti Southworth,
Mary Beth Hynes, Kimberly Ireland, and Timothy Szczepaniak
of the town of Ballston town board; and Stephen Williams of the Daily
Gazette.
The minutes of the January
11, 2010 meeting were unanimously approved following a motion by Mr. Johnson,
seconded by Mr. Hanehan.
Requests
for Use of Agency Fund Balance: Status Update & Discussion
Prior to the discussion of
the Agency fund balance and submitted requests, Supervisor Anita Daly addressed the Board. She thanked the IDA for its ongoing
participation with SEDC and the Board of Supervisors, collaborating with their
efforts for economic development in the county.
Supervisor Daly noted that the Agency’s financial assistance is valuable
to the marketing and promotion of
Mr. Dunn asked that Mr. Brobston review the briefing he prepared as supporting
information for the proposed town connection to the county water system and a request by the town of
Supervisor Southworth echoed Mr. Brobston’s
sentiments, noting a recent discussion with the owner of a 90-acre parcel once
being considered for residential housing but now being considered for
development as a mixed-use/commercial project due to the prospect of increased
water capacity. With the proposed
connection to the county’s 16-inch water main through a pump station behind the
Stewart’s Shop at Rt. 67 and East Line Road will permit connection to the
town’s 12” main, feed areas along Route 67 and west of Ballston Lake, and
provide reliable back-up to the entire system in the event of needed repair or
an emergency. She stated that connection
to the county system will also enable the town to supply the
Councilwoman Hynes
addressed her January, 2010 letter written to the Agency as a request for use
of a portion of its fund balance to assist the town develop a back-up water
supply to provide a redundancy to the system.
The proposed connection would improve fire flow pressure along the Rt.
67 corridor and in the
Mr. Dunn stated that while
the consensus of the Board is favorable to the request, in the absence of the
Chairman, the Board will not be voting today.
The IDA will need a board-adopted resolution from the town as a formal
request for grant funding to financially assist the town in its connection to
the county water system. Ms. Hynes
indicated that the resolution could be obtained at tonight’s meeting of the
town board. Supervisor Southworth indicated that SEQR has been completed and if
Mr. Valentine is unable to obtain a copy from the town engineer she will
provide a copy of the town board’s SEQR resolution.
Regarding a request for grant funding of $10,000 made by Geoff Bornemann on behalf of the Saratoga Historic Preservation Foundation, Mr. Dunn stated that it
appears the request is being made to meet an unfunded requirement of NYRA
toward the survey and inventorying of historic features at the Saratoga
Racecourse. A 15-member Local Advisory
Board (equal county, city and NYRA representation) was officially charged with
preparing the track inventory and it met on March 4th and endorsed
the work program. Mr. Johnson attended
the meeting as did Mayor Johnson of
Mr. Murray asked to whom
the grant funds will be provided and Mr. Dunn stated that they will go directly
to the city of
Mr. Mooney asked about how
Agency counsel will be worked into the process of financial requests presented
by Saratoga Springs and Ballston. He
suggested that Mr. Toohey be involved up-front with review of the municipal
resolutions. Mr. Toohey stated that in
particular the Rossi/Monaco proposal
for Ballston requires a certain process be adhered to as a partnership
agreement is necessary prior to the applicants appearing before the IDA for a
loan. Mr. Brobston
advised the Members that at the April meeting a formal proposal for financial
assistance will be presented by the applicants.
Legal
Services: Invoice #2, Payment to Counsel
Mr. Dunn stated that a
second payment ($100,000) was made to the town of Corinth in mid-March
representing the completion of the Agency’s $300,000 commitment (in the form of
a loan) to the town for improvements needed by the town for its rail line. In addition, a payment of $470 was made by
the Agency to counsel for services in accordance with Resolution #1035 of
November 9, 2009.
Cost
Recovery of Central Governmental Services: Invoice for $2,751
Mr. Dunn asked that this
agenda item be undertaken after Other Business is discussed because there is
pending litigation that should be discussed in Executive Session related to the
invoice from NYS regarding to the professed recovery of state governmental
costs.
Reform Legislation (Hoyt Bill)
Mr. Dunn reported
briefly to the Board on IDA reform legislation, which was commonly referred to
as the Hoyt Bill. He noted that from the
perspective of IDAs there has been concern with the ability to competitively assist
project companies if prevailing wages for construction and median wages for
business end-users are implemented. He
stated that if these wage requirements are mandated there won’t be a beneficial
balance to entice applications into any IDA, hampering their ability to induce
economic development. Mr. Dunn noted
that based upon the information shared in a recent conference call with Brian
McMahon of NYS Economic Development Council the reform legislation may not move
any further because of legislative infighting.
He said that many initial supporters of the legislation now find that it
is headed down a road that was never intended and are not agreeable to
continued support. As further
information becomes available he will provide it to the Board.
United STEP 1: Modification to Loan
Documents
Mr. Toohey stated
that the Company has loan documents being modified which require execution by
the Agency. There is no direct impact to
or involvement by the Agency in the loan modification being sought by United STEP
1, stated Mr. Toohey. He asked that
execution by an officer be authorized following review by counsel.
There being no
additional questions or comments, Mr. Mooney moved to authorize the Chairman or
any officer to sign any documents deemed necessary by counsel’s review. Mr. Johnson seconded the motion.
Resolution
#1047
RESOLVED
THAT the Saratoga
County Industrial Development Agency has determined that upon favorable review
by its counsel it is appropriate for execution by the Chairman or any other
officer of the modified loan documents submitted by United STEP 1, LLC.
Ayes:
5
Noes: 0
Adopted:
5-0
Bombay Development: Mortgage
Modification
Mr. Toohey
explained that title to the property of Bombay Development, LLC was just
recently reconveyed from the IDA. Prior to this transfer, however, the Company
sought modifications to its existing mortgage that would require sign-off by
the Agency. Mr. Toohey requested the
Board to authorize the execution of necessary documents today so that the
mortgage modifications can be effected.
There being no
questions or comments, Mr. Hanehan moved to authorize
the execution of necessary documents.
Mr. Sutton seconded the motion.
Resolution
# 1048
RESOLVED
THAT the Saratoga
County Industrial Development Agency does hereby authorize the Chairman or any
other officer to execute any and all documents deemed necessary by Counsel for
the mortgage modification requested by Bombay Development, LLC.
Ayes: 5
Noes: 0
Adopted: 5-0
TD Bank: Government Corp Resolution
Authorizing Signatures
Mr. Valentine
resubmitted TD Bank’s Municipal Master Signers Certificate for the signatures
of Mr. Dunn and Mr. Sutton following receipt of the certificate with Mr.
Benton’s signature. The purpose of
updating the certificate is to avoid signing a new signature card each time a
new certificate of deposit or account is opened with TD Bank. This certificate will remain in force for one
year and provide the bank with the names and signatures of Mr. Benton, Mr.
Valentine, Mr. Sutton, Mr. Dunn and the Chairman to sign instruments on behalf
of the Agency.
Public Authorities Law:
Acknowledgement of Fiduciary Duty
At the end of
February Mr. Benton provided Members with a statutory obligation of IDA members
based upon the Public Authorities Reform Act.
Members are now required to read, review and sign an Acknowledgement of
Fiduciary Duty, or fiduciary statement.
Prior to May 1, 2010 Board Members are required to sign an
“Acknowledgement of Fiduciary Duties and Responsibilities” which will be
applicable throughout the duration of their term. Mr. Dunn asked Members sign their form and
return it to Mr. Valentine for return to the Authorities Budget Office (ABO).
Public Authorities Law: Adoption of Mission
Statement and Performance Standards
The second
governance requirement issued by the Authorities Budget Office was also
provided by Mr. Benton in an email to Members at the beginning of March. The Public Authorities Reform Act requires
local authorities to develop and adopt a mission statement. Mr. Dunn noted (as copied to Members in the
meeting materials) that the Agency has an adopted Mission Statement and he sees
no real need to change it. Regarding the
set of performance standards to be used to measure each year’s performance, he
suggested that prior to the April meeting the Governance Committee (Mr. Mooney,
Mr. Hanehan, and Mr. Rockwood) review the performance
goals and questions submitted by the ABO and decide what steps the committee
wants the Board to then undertake. Mr.
Mooney will make contact with committee members and arrange a meeting.
PILOT Chart: 2010 County & Local
Taxes
As a follow-up to
last month’s discussion about the status of PILOT payments received to date,
Mr. Valentine distributed a final chart of all payments. The last four payments were received in
mid-February. He stated that Saratoga
County received $300,000 from the PILOT payments of 20 companies, Saratoga
Springs received $156,000 and the town of Moreau received just under $24,000 in
SGF Hydro’s (Boralex) first full-value tax payment as
its 15-year abatement period has expired.
Reconveyance
of Title to Companies from SCIDA
Mr. Toohey and Mr.
Valentine provided a summary of the project companies for which title was
transferred from the IDA to the Company in an effort to change their taxable
status from Roll Section 8 (wholly exempt) to Roll Section 1 (taxable) on or
before March 1, 2010. Certified letters
were mailed to SGF Limited Partnership, Architectural Glass & Mirror,
Bombay Development, Atlantic British, Buffer’s Alley, NKT/Yankee Dollar, SSP
Development, and Dayton Hudson/Target requesting that the companies initiate the
process of recording quit claim deeds and associated papers for the transfer of
title. Of the 8
companies, title
to all properties but Target were transferred.
At Mr. Johnson’s request Mr. Valentine will discuss with the town
assessor and Agency counsel any options available to effect the transfer.
Investment Update: CD Transfer
Mr. Valentine
advised the Members that on February 19th a matured certificate of
deposit held with Banknorth was bid for reinvestment
of the principal and its earned interest ($126,285.86). Following concurrence with the CEO and
treasurer, Berkshire Bank was awarded the bid with a rate of 1.0% for a term of
6 months.
AFR Status: Auditor Review
Mr. Valentine
stated that Mr. Galka has been in the office on several
days to begin the review and analysis of financial records to conduct the
Agency’s Annual Financial Report. The
only Company for which the financial survey has not been returned is Quad
Graphics and Mr. Valentine stated that he will call both the local plant and
corporate headquarters in Wisconsin to get the final reporting for Mr. Galka.
Executive Session – Pending
Litigation
In order to
discuss pending litigation involving the Saratoga County IDA, Mr. Mooney moved
to enter into Executive Session. Mr.
Sutton seconded the motion which was unanimously approved.
There being no
further discussion in Executive Session, Mr. Sutton moved to return to the
regular session of the meeting. Mr.
Johnson seconded the motion which was unanimously approved.
Following return
from Executive Session there was brief discussion about the $2,751 billing as a
cost recovery assessment of IDA’s imposed by the state. There was consensus that the billing would be
paid and further discussion of whether the IDA would fund the Economic
Development Defense Fund being established by NYS EDC for IDAs across the state
to pay for the initial stages of litigation of the IDA tax.
There being no
further questions or comments related to the payment of the assessment, Mr.
Mooney moved to release the assessed $2,751.
Mr. Sutton seconded the motion.
Resolution
# 1049
RESOLVED
THAT the Saratoga
County Industrial Development Agency does hereby authorize the payment of
$2,751 to the NYS Division of the Treasury for an assessment said by NYS to be
for the recovery of costs for services rendered in the administering of IDAs
across the state; and
BE
IT FURTHER RESOLVED that said
payment will be provided on or before March 31, 2010 accompanied by a letter of
protest to be copied to local officials.
Ayes: 5
Noes: 0
Adopted
5-0
Mr. Dunn reported as Mr. Benton’s correspondence has
noted that the Economic Development Council has sought support from agencies
across the state to form and Economic Development Defense Fund to repeal the
noted legislation. He explained that as
discussed in Executive Session the IDA has agreed to participate as a
petitioner and financial partner in proposed legal action. As there were no further questions or
comments, Mr. Hanehan moved to approve a petitioning
of the state’s assessment of IDAs and to fund the efforts of a legal challenge
to that assessment. Mr. Johnson seconded
the motion.
Resolution
#1050
RESOLVED
THAT staff complete and
submit to NYS Economic Development Council (EDC) the latter’s form attesting to
the Saratoga County IDA’s intent to participate in the Economic Development
Defense Fund in the ascribed prorated
amount of $1,000; and
BE
IT FURTHER RESOLVED that
Saratoga County IDA will be a petitioner to join in the Council’s lawsuit with
New York State and to seek said law’s negation ; and
BE
IT FURTHER RESOLVED that the
EDC affirm that the lawsuit would be completed without any additional cost to
this Agency.
Ayes: 5
Noes: 0
Adopted: 5-0
Other Business
Mr. Dunn reported that he and Mr. Valentine visited the Saratoga Eagle facility on March 1st as part of staff’s year-end review of FTE employment numbers for three or four selected project companies. A March 10th site visit was also made to the Malta offices of Global Foundries to meet with local project personnel and tax/law officials from Austin, Texas and Sunnyvale, California to review year-end employment numbers and reporting requirements of the Company for 2010.
Mr. Sutton informed the Board that the Concerned Citizens of Racing has reconvened. He stated that group will try to get its voice back out to the public regarding issues like the state not living up to its obligation regarding NYRA, that Off-Track Betting is going bankrupt, the loss of $300M from franchise fees that was in the state budget, and the impact of VLT dollars not being distributed to the racecourse in any manner. He noted that there is a sense of urgency that racing is financially jeopardized while at the same time higher purses in New Jersey are luring horse owners from Saratoga. The impact on jobs, businesses, tourism and agriculture will be spelled out at a press conference on Wednesday (17th) arranged by Senator MacDonald. There is also an effort being made to organize a bi-partisan group to emphasize the statewide problem for racing. Mr. Sutton stated that he will advise the Board of the status of the situation and these efforts at its next meeting.
Adjournment
There being no
further questions or comments, Mr. Dunn moved to adjourn the meeting. Mr. Hanehan
seconded the motion, with all in favor.
Respectfully
submitted by,
Michael Valentine
Assistant Administrator
MEETING MINUTES
The meeting held at the
office of the Saratoga County planning department located at 50 West High
Street in the village of Ballston Spa was called to order at 8:00 a.m.
The following members,
staff and guests were present:
Members: Raymond Callanan,
Chairman; Richard Dunn, Rod Sutton, and Glenn Rockwood.
Staff
& Guests: John Murray, CFO;
Lawrence Benton, CEO; Michael Valentine, Assistant Administrator;
Michael Toohey, Counsel; James Carminucci, Bond
Counsel; James Angus, SEDC; Mary Beth Hynes and Kimberly Ireland of the town of
Ballston town board; Samantha Bosshart, Executive
Director, Saratoga Springs Preservation Foundation; Frank and Rosemary Rossi
and Thomas Savino, representing an application for
Ballston property, and representatives of local press.
The minutes of the February
8 and March 15, 2010 meetings were unanimously approved following a motion by
Mr. Dunn, seconded by Mr. Sutton.
Application:
Saratoga Eagle Sales & Service
Jeff Vukelic
thanked the Agency for its consideration of the application for financial
assistance being made by his company. He
noted that it has been less than a year since the June, 2009 closing with the
IDA related to the new 107,000 sq. ft. beverage distribution facility at the
Mr. Vukelic
reviewed the site plan with the Board, explaining that the addition will be
constructed at the west end of the existing building and will primarily be a
refrigerated warehouse that doubles the size of the keg cooler and makes no
internal changes to the offices. Mr.
Sutton asked about employment numbers and Mr. Vukelic
indicated that the original application anticipated there to be 88 employed
full-time at this time. There are now,
however, ninety-seven full-time employees and that number is estimated to grow
to 131 in the first year after completion of the addition. The Chairman asked about the employment
status of those working for Ruch Distributors and Mr.
Vukelic stated that the company will provide the
opportunity for any of those employees to make the move to
Regarding construction
labor, Mr. Vukelic stated that local labor will be
employed through the same general contractor as constructed the main
building.
Mr. Benton explained that
the company’s application seeks no abatement of property taxes, but requests
financial assistance in the form of an exemption of sales tax on
construction-related expenditures and an exemption from a mortgage recording
tax if the company chooses to execute a mortgage. Mr. Toohey noted that as there will be no
abatement of property taxes there will be no PILOT Agreement associated with
the addition. Mr. Benton stated that the
PILOT Agreement for the current project specifies the payment of full property
taxes on any addition built, if the Board so requires. He added that the assessed value of the
initial facility was established by agreement among the taxing jurisdictions to
be $7,885,000 while PILOT payments for the five years of the Agreement are to
be based upon the Initial Assessed Value (land value) of $1,200,000.
There being no further
questions or comments, Mr. Dunn moved to establish that a public hearing be
held on Tuesday, May 18, 2010 at 8:00 a.m. in Saratoga Springs City Hall. Mr. Sutton seconded the motion.
Resolution #1051
RESOLVED,
THAT it has been determined that potential tax benefits of
value greater than $100,000 may result from the Agency’s provision of financial
assistance to Saratoga Eagle Sales & Service, Inc. and, therefore, a public
hearing is required; and
BE
IT FURTHER RESOLVED, THAT a date for such public hearing has been
proposed for Tuesday, May 18, 2010 at 8:00 a.m. to be held at the council
chambers of the
Ayes: 4
Noes: 0
Adopted:
4-0
Grant
Application: Town of
The Chairman noted a
January 13, 2010 letter from Mary Beth Hynes written as a member of both the
town’s water committee and the town of Ballston town board requesting IDA
assistance toward the construction of infrastructure improvements necessary for
the town’s connection to the Saratoga County water system. On March 15th Ms. Hynes and
Supervisor Southworth appeared before the Agency to
formally request assistance in the amount necessary to meet the engineering
costs (estimated at $68,400) for a water pumping station that will be located
near the intersection of East Line Road and NYS Rt. 67. At a Ballston town board meeting of the same
night unanimous approval was granted to borrow up to $586,000 for the needed
construction with the understanding that assistance coming through the IDA and
Clifton Park Water Authority ($186,000) will decrease the overall cost. Mr. Valentine reported that for purposes of
financing and construction the town board declared itself lead agency for
purposes of SEQR on February 2, 2010, issued a negative declaration on the
proposed action on February 23, 2010, and approved the action on March 15,
2010.
Mr. Toohey suggested that
the Agency’s financial assistance be identified as a reimbursement funding that
will be provided upon completion of the project. The Board agreed with that approach.
There being no further
questions or comments, Mr. Dunn moved to approve an IDA grant to the town of
Resolution
#1052
RESOLVED,
THAT the Saratoga County Industrial Development Agency does
hereby agree to the provision and execution of a municipal grant to the town of
FURTHER
RESOLVED, THAT the release of said grant funds is
contingent upon completion of the project by the town of
Ayes:
4
Noes: 0
Adopted:
4-0
Grant
Application: By City of
Last
month the Board discussed a request for grant funding of $10,000 initially made by Geoff Bornemann
on behalf of the Saratoga Historic Preservation Foundation. The request had been made to fund a survey
and inventory of historic features at the Saratoga Racecourse. The Preservation Foundation made a formal
request to the city that the latter make a request of the IDA for $10,000 in
grant funds to pay for the inventory.
On March 16, 2010 the City Council rendered a unanimous decision to
submit a funding request of $10,000 for Phase 1 of the Race Course
Inventory. Mayor Scott Johnson submitted
that formal request to the Agency in an April 2nd letter addressed
to Mr. Benton.
Samantha Bosshart, Executive Director of the Saratoga Springs
Preservation Foundation appeared before the Board and read a prepared statement
that outlined the proposal. Completion
of an inventory of the historic structures and landscape features of the
racecourse is required of the Local Advisory Board as part of the franchise agreement
between NYS and NYRA. The Preservation
Foundation, she noted, became involved in defining the scope of work and
raising money for the inventory two years ago.
Ms. Bosshart stated that the Foundation has
raised $22,000 through three other sources but because the total cost of Phase
1 of the inventory is $32,000 she sought assistance through the IDA for the
remaining $10,000. Members concurred
that this grant is an extension of the previous work funded with $60,000 from
the Agency to conduct an economic analysis of the $200-250 million in direct
impact that the Saratoga Race Course provides to the tourism, culture and
economy of the 9-county region. The
Chairman added that the Agency strongly supports the plan by the city and the
Preservation Foundation to identify and protect the historic assets of the
Saratoga Race Course, particularly as they may not only be irreplaceable but
because they are such a vital part of this racecourse’s noted economic success
within the nation’s thoroughbred industry.
Mr. Benton asked Ms. Bosshart what the timing was as far as the need for the
grant funds and she stated that they would be needed within the next two months
as the Phase 1 inventory would be completed in August of 2010. Mr. Toohey noted that the application for
grant funding is not from the Preservation
Foundation, but from the
city. The funds should go directly to
Saratoga Springs, he stated. The
Chairman stated that release of the funds should be contingent on an invoice
from Saratoga Springs that
references the
Board-adopted resolution of this meeting.
He added that the Foundation should provide the Agency with a copy of
the city’s invoice/transmittal letter and of the city’s check as it will be
needed for next year’s financial audit.
There being no further
questions or comments, Mr. Sutton moved to approve the provision of a $10,000
grant to the city of Saratoga Springs.
Mr. Dunn seconded the motion.
Resolution
#1053
WHEREAS,
the
Saratoga County Industrial Development Agency recognizes and strongly supports
the efforts of the City of Saratoga Springs and the Saratoga Springs
Preservation Foundation to identify and protect the historic assets of the
Saratoga Race Course, and
WHEREAS,
the
Saratoga County Industrial Development Agency has previously funded an economic
impact analysis of the Saratoga Race Course that documented that there is a
$200-250 million economic impact to the nine-county region that surrounds the
Race Course, and
WHEREAS,
the
Saratoga County Industrial Development Agency has determined that it is in the
best interest of the thoroughbred racing industry, the historic Saratoga Race
Course, and the economies of the city of Saratoga Springs and the county of
Saratoga to conduct an inventory of historic structures and landscape features
associated with the Race Course;
NOW,
THEREFORE, BE IT RESOLVED THAT the Saratoga County
Industrial Development Agency does hereby authorize the release of $10,000 from
its fund balance for a municipal grant to the city of Saratoga Springs to
supplement the funds already raised toward the $32,000 project costs necessary
for completion of the Phase 1 Inventory of the Saratoga Race Course to be
conducted by the Saratoga Springs Preservation Foundation, and
BE
IT FURTHER RESOLVED, THAT upon receipt of grant funds from the
City of Saratoga Springs the Saratoga Springs Preservation Foundation shall
provide the Saratoga County IDA with a copy of the city transmittal letter
along with a copy of the city-issued check.
The results of a roll call vote were as follows:
Ayes: Messrs. Dunn, Sutton,
Rockwood, and Callanan
Noes:
none
Adopted:
4-0
Loan
Application: Rossi Commerce Park, Ballston
Thomas Savino
of CBRE was present to represent Frank and Rose Marie Rossi and continue the
discussion from the Agency’s February 8th meeting. The Rossi’s intend to develop the property
they own at the northeast quadrant of the intersection of NYS routes 50 and 67,
north of the V Corners. Plans are to
develop the property as a flex park within a planned unit development district
in the town of Ballston. They are
seeking a loan from the Agency to offset soft costs associated with the
approval and design
phases of the project. Mr. Savino
explained that the Monaco’s (the adjoining property owners) have pulled out of
the development plan, changing the project acreage to 78 acres and decreasing
original costs from roughly $500,000 to $403,000.
Mr. Savino
stated that his clients would ask the IDA to consider a collateralized loan in
that amount secured by other more valuable property. Mr. Toohey suggested that the Agency utilize
a loan application with security spelled out.
Mr. Savino stated that Mr. Rossi has three other
parcels on Route
50 with no mortgage to
encumber the property, but no independent appraisals on them. In addition, he stated, Mr. Rossi has a three
and a half acre parcel worth more than a million dollars. Mr. Dunn stated that in a previous meeting with
the subcommittee it was discussed whether there was any land outside of the
project limits that was suitable for consideration as collateral and Mr. Savino indicated that Rite Aid had made an offer of $1.65M
for land by V Corners.
Mr. Rossi stated that he
has put a lot of his own money into the project site and he now needs enough
money to complete the studies necessary for approval of a PUD. He explained that in his estimation he has
too much of his own money into the project and it is necessary for him, in
order for the project to be a good one economically, to obtain the full amount
of the soft costs as a loan from the IDA.
Mr. Savino
provided an explanation of the flex park that the Rossi’s are seeking to
develop, stating that the underlying zoning is a mixed-use district and they
are seeking approval as a planned unit district to allow for the flexibility of
types, for a mix of uses. The uses and
types of buildings, he added, were favorably considered by the town in a recent
presentation. Ms. Hynes explained that
the proper development of this property and its location are important to the
town of Ballston. It is consistent with
the town’s efforts to promote and encourage economic development, as stated in
the town’s comprehensive plan. She stated
that she believes a flexible design within the guides of a planned unit
development would work at this property and as a member of the town board
expressed that the project is worthy.
Based on the initial response of town board members, there appears to be
sufficient support for a PUD, she added.
Mr. Toohey questioned the
use of land as security for a loan and noted the level of review – such as
appraisals and environmental reviews – that are going to be necessary to
provide the needed assurance to the Agency.
Mr. Benton noted that the collateral should exceed the value of the
project request and the IDA should be in a first lien position. He added that the appraisal and environmental
study for the project should not be paid from funds provided by the Agency and
Mr. Rossi agreed. The Chairman asked for
thoughts on the loan amount requested and Mr. Dunn expressed that the
subcommittee and Board were leaning toward having a partner in the financing of
the project but Mr. Rossi has indicated that he is a partner already by what he
has already spent as part of initial development. Mr. Toohey noted that the sewer improvements
on the property are dry lines that have not been utilized and are not dedicated
to the municipality. Previous discussion
regarding the structure of a loan have centered on a balloon with the loan at a
significantly reduced rate and considerably less closing costs, meeting the
immediate needs of the applicant. There
is a window of opportunity, however, for the Agency related to the use of its
money to get projects assisted in an effort to create jobs; he stated that the
Agency wants to incentivize projects, get money in and get it back out to use
again. There is not a desire to be tied
long-term to a project that isn’t going to move quickly.
Mr. Benton provided a quick
summary of the options before the Board:
1.
grant
the loan of $403,000, or
2.
set
up a draw over time as may be needed and have another level of review at the
time a draw is requested, or
3.
grant
a loan of a lower amount with the applicant to come back at a later time as
development proceeds to request additional assistance.
Mr.
Rossi stated that his needs could be met by either of the first two
options.
Mr. Dunn asked Mr. Angus if
there are any potential applicants for a project such as this and he stated
that there are none at this time. He
indicated that there is a supplier for Global Foundries looking for space but
that it is needed by the first quarter of 2011.
Discussion was had on the
concept of a partnership, of what constitutes a contribution, and the fact that
this project is being presented in an entirely new light. Mr. Toohey explained that the Agency has just
recently drafted a new policy and it states that every applicant is to have a
contribution of new money and that no
project comes to the Agency for 100% of its costs – the IDA is an assistant to
the process, he stated, not the driver.
Mr. Rockwood suggested that it may be important to see that the town
give the project conceptual approval prior to providing seed money. He expressed that the IDA needs a strong
indication of the project’s approvability before spending its money. Mr. Benton noted that the site has been
worked extensively, it is not raw land, and it has support from the town. Mr. Rossi stated that he would like to take
the idea of the “draw” concept further in discussion; he believe that it works
for both parties. Mr. Dunn stated that
as three members are not present this morning it may be prudent to hold further
discussion at the May meeting. Mr.
Sutton agreed, noting that it is now a speculative project with no approvals
and it is not in a shovel-ready condition.
We might want to be more cautious in how we contemplate spending reserve
funds.
There being no further
questions or comments, Mr. Dunn moved to table further consideration of the
Rossi application until the Agency’s meeting on May 18, 2010. Mr. Sutton seconded the motion which was
unanimously approved.
2009
Annual Report/Audit
Mr. Benton advised
that the Report is to be completed this week as he meets with the auditor to
finalize review and entries.
2010 PILOT Charts/2009 Hydro PILOT
Payments
Mr. Valentine
reported that on March 31st we received a check for $712,000 from Boralex as the combined annual PILOT payments for
operations of the South Glens Falls Hydro Partners and the Northern Electric
Power Company projects. This represents
the last of 15 PILOT payments for South Glens Falls Hydro, with one more year
remaining in the abatement period for Northern Electric. The portion of the PILOT payment attributable
to revenues from SGF Hydro was $222,000 while $490,000 was distributed to
taxing jurisdictions from Northern Electric’s payment. With this additional information
now reported he
provided members with an updated chart of PILOT payments for 2010 county and
local taxes.
Cady Hill Road Rail Crossing
Last week Mr. Brobston of SEDC forwarded to staff a request that was
submitted by CP Rail to SEDC for the IDA to provide a purchase order of
$45,000. This request is based on
one-half ($40,639) of the total estimated cost for rehab work to be done on one
of two tracks that are part of the Cady Hill Road double crossing in the Grande
Industrial Park. As the Agency has not
in the past received such requests and because the receipt was received so
close to the date of this meeting, Mr. Benton advised the Board that
he will contact CP
Rail to determine the work to be undertaken and the role/responsibility of the
Agency in that work. He will report to
the members at the next meeting.
Fiduciary Statements
Mr. Benton
reported that all Statements had been signed and returned and are on file in
Agency records.
SEDC Annual Dinner
Mr. Valentine
stated that individuals had not yet received invitations to SEDC’s Annual
Dinner but he understands that it will be held on May 5th at the
Saratoga Springs City Center. If any
member or staff would like to attend, please contact him and he will register
you for the dinner.
Marketing/Promotion Agreement:
Initial Payment to SEDC
Mr. Benton
provided a report to the members that as a subcommittee he, Mr. Dunn, Mr.
Murray and Mr. Valentine had reviewed the initial invoice of $83,698.26
submitted by SEDC under the budgeted Marketing Agreement. Following several reviews and a meeting with
Mr. Brobston and his staff accountant, payment of
$79,603.79 was authorized for payment on March 30, 2010.
Invoice #2 was
submitted on March 31st for $57,543.92 but was reduced by $1,582.45
to remove some promotional items that the subcommittee did not deem appropriate
for payment by the Agency. Mr. Benton
sought concurrence from the full Board for approval of the second payment to
SEDC in the amount of $55,961.45.
There being no
further questions or comments, Mr. Dunn moved to approve payment to SEDC in the
amount of $55,961.45. Mr. Sutton
seconded the motion.
Resolution
#1054
RESOLVED,
THAT the Saratoga
County Industrial Development Agency does hereby approve the payment of
$55,961.45 from the Agency’s 2010 Budget to SEDC based upon a subcommittee’s
review of and revision to Invoice #2 of the Marketing/Promotion Agreement.
Ayes: 4
Noes: 0
Adopted:
4-0
United STEP 1: Extension of Sales Tax
Certificate of Exemption
In late March the
Agency issued United STEP 1 an extension on the sales tax exemption certificate
associated with the 105,000 sq. ft. building constructed in the Saratoga
Technology and Energy Park in Malta.
With the loss of Starfire as a tenant the
company has been fitting up that space for occupancy as well as doing fit-ups
for expanded space taken by BPI and Global Foundries. The new expiration date
has been extended
to the end of January, 2011 to allow United STEP to complete year-end reporting
of sales tax exemptions and to complete construction fit-ups necessary for
completing tenancy.
Status of Sales Tax Reports (ST-340s)
As a follow-up to
last month’s discussion concerning the status of February 28th
filing of Reports with the state Department of Taxation and Finance, Mr.
Valentine reported that ST-340’s have now been provided to Tax and Finance by
Architectural Glass and Mirror (addition), D.A. Collins, Global Foundries, and
United STEP 1.
Other Business
Mr. Valentine
reported that on March 26th, following conversation with Agency
counsel and representatives at Dayton Hudson Corporation’s home office, Mr.
Toohey sent a letter to the company advising that a quit claim deed to be
executed on or before March 1, 2010 has not yet been executed. Seven of eight project companies whose
abatement period had expired did successfully execute quit claim deeds and
title to the property has been reconveyed from the
Agency to the company, now able to return to the Section One taxable roll. Target/Dayton Hudson (facility located
in town of Wilton) is the only one of eight companies that did not return an
executed deed for filing. Mr. Valentine
will make another call to corporate counsel to determine the status of the
deed. Mr. Johnson (supervisor for the
town of Wilton) stated that he will talk with the town’s assessor to see if
there is another course of action to take to get the property on Roll Section
1.
Mr. Benton stated
that the IDA paid the state tax that was assessed on our 2008 gross
revenues. He noted that there were other
IDAs that were much worse off than was SCIDA and that NYS EDC has initiated a
lawsuit to seek the repeal of the legislation.
The Attorney General responded to the legal action, asking the court to
have an agreement worked out and collection of the tax has been stopped until
then.
Adjournment
There being no
further questions or comments, Mr. Sutton moved to adjourn the meeting. Mr. Rockwood seconded the motion, with all in
favor.
Respectfully
submitted by,
Michael Valentine
Assistant Administrator
MEETING MINUTES
The meeting held in the
Council Chambers of the Saratoga Springs City Hall located at 374 Broadway in
the city of Saratoga Springs was called to order at 8:06 a.m. following the
close of a public hearing to consider the application for assistance presented
by Eagle Associates of Niagara Frontier, Inc.
The following members,
staff and guests were present:
Members: Raymond Callanan,
Chairman; Richard Dunn, Rod Sutton, Michael Mooney, Arthur Johnson and Glenn
Rockwood.
Staff
& Guests: John Murray, CFO;
Lawrence Benton, CEO; Michael Valentine, Assistant Administrator;
Michael Toohey, Counsel; James Carminucci, Bond
Counsel; James Angus, SEDC; E.J. Harkins and Kenneth Davis of Saratoga Eagle
Sales & Service; and Frank and Rosemarie Rossi and Thomas Savino, representing an application for Ballston property.
Action on the minutes of
the April 12, 2010 meeting was deferred until the June meeting to give members
the opportunity to review them in a timely manner.
Application:
Eagle Associates of Niagara Frontier, Inc.
The Chairman noted that the
public hearing on the application had just concluded and no public comment on
the application was provided. Mr. Carminucci directed members to the resolution provided in
their meeting materials (Res. #1055). He
explained that on May 12, 2010 the
Mr. Carminucci
stated that the company’s business growth and the recent acquisition of an
Albany-based distributor precipitated the need for a 30,000 sq. ft. addition to
the 107,000 sq. ft. office and warehouse located on a 27-acre parcel in the
Mr. Toohey stated that the
resolution is consistent with Agency policy, the information provided in the
application, and the hearing notice.
As there were no additional
questions or comments, Mr. Dunn moved to approve the inducement resolution as
prepared and presented by bond counsel.
Mr. Sutton seconded the motion.
A roll call vote was taken
on Resolution #1055 (attached) with the following results.
Ayes: Mr. Sutton, Mr. Rockwood,
Mr. Johnson, Mr. Mooney, Mr. Dunn, and Chairman Callanan.
Noes: none
Adopted: 6-0
Loan
Application: Rossi Commerce Park
Mr. Benton advised Members
that a new letter (dated May 14, 2010) had been submitted to the Chairman on
behalf of the mixed use project proposed by Frank Rossi for property at Routes
50 and 67 in the town of
Mr. Johnson noted that the
applicant’s request of funds has successively decreased from $500,000 to
$403,000 and now stands at $250,000. He
added that in previous discussion with the subcommittee there was support for
providing financial assistance. The
Chairman agreed, suggesting that the Board may need to concentrate on
establishing an approved amount for a loan with the details to be worked out
with counsel and the committee.
Mr. Mooney asked what uses
are proposed for the project and Mr. Benton answered that the land is within
the town’s mixed use zoning district and is informally being presented to town
officials as a planned development district with some retail use along with
commercial (office). Mr. Mooney asked if
there would be any conflict with the Agency’s mission and Mr. Benton stated
that the ability to make the loan is independent of consideration of the types
of uses that may or may not receive financial assistance through our Uniform
Tax Exemption Policy. Mr. Toohey
stressed that his list of items for discussion by the committee prior to a full
board review revolved around: 1) would applicants’ land be used as collateral,
2) what environmental reviews have to be undertaken/completed, 3) what uses are
proposed, 4) the purpose(s) of the loan, 5) the term of the loan. Mr. Sutton suggested that as there continue
to be items not addressed it may be advisable to hold off voting until our next
meeting. The Chairman and Mr. Dunn
voiced support for a conceptual or contingent approval on the main points of
the request with details to be worked out through the subcommittee, Mr. Toohey
and the Rossis.
The Chairman stated that the format and process of this loan application
will form the basis for consideration of future loans and that the application
will now go before the subcommittee before being brought back to the entire
Board at June’s monthly meeting.
There being no further
questions or comments, Mr. Johnson moved to grant conceptual approval to the
loan application made by Frank and Rose Marie Rossi with the conditions
enumerated within the resolution. Mr.
Dunn seconded the motion.
Resolution
#1056
RESOLVED,
THAT
the Saratoga County Industrial Development Agency does hereby grant its
conceptual approval for an initial loan of $250,000 to Frank and Rose Marie
Rossi to be utilized to effect the necessary approvals of municipal bodies and
regulatory agencies toward the eventual development of a mixed-use planned unit
development district in the town of Ballston; and, be it
FURTHER
RESOLVED, THAT the approval of said loan is conditioned
upon a positive advisory opinion for full Board approval made by the
subcommittee formed specifically for review of the Rossi project application;
and be it
FURTHER
RESOLVED, THAT prior to being considered for approval by
the IDA Board the applicant shall meet with the subcommittee and provide, as a
minimum, suitable and sufficient information on the following items for Board
review and determination: the collateral to be provided as security against
Agency funds loaned; the term/duration of the loan; the submission of a
certified appraisal attesting to the value of the property provided as collateral that supports
the value of the loan; the means, method and time of reimbursement of said
loan; and, a determination of the interest rate assessed against the loan
principal.
The results of a roll call
vote are as follows:
Ayes:
Mr. Sutton, Mr. Rockwood, Mr. Johnson, Mr.
Mooney, Mr. Dunn, and Chairman Callanan.
Noes: none
Adopted:
6-0
Reconveyance: Quad/Graphics, Inc.
Mr. Toohey stated that on
May 12th he had a telephone discussion with David Farwell, an
attorney for Quad Graphics, related to the Agency’s reconveyance
to Quad of title to project property in the
Although title will go to the Company with a transfer by quit claim deed at
this time, the property will not be on taxable roll section one until after
March 1, 2011. Mr. Toohey explained
that in February 2010 we sent letters with initial deeds to eight companies
requesting their execution of a quit claim deed for transfer of title and seven
of the eight properties were reconveyed. This request being made at this time,
therefore, is welcomed by the IDA, he stated.
Mr. Benton explained that the Company’s assessment for PILOT billing has
been very close to full value as the value for Building 10 is relatively
nominal, adding that the Agency will still bill for school taxes in September
and will most likely bill the 2011 City and County taxes under the PILOT. We will coordinate the billings with the
local tax collector and assessor.
There being no further
questions or comments, Mr. Dunn moved to authorize the Chairman and any other
officers to execute any and all documents, including a quit claim deed,
necessary for the transfer of title of all Quad Graphics properties within the
Resolution
#1057
RESOLVED,
THAT the Saratoga County Industrial Development Agency does
hereby authorize the Chairman or any other officer of the Agency to execute any
and all documents and a quit claim deed necessary for the transfer of title
from the Agency to Quad/Graphics, Inc.
Ayes: 6
Noes:
0
Adopted: 6-0
LFTCEDC:
Request for Loan Extension
Mr. Benton stated that at
the July 2009 meeting of the Agency the Board discussed options for LFTCEDC
regarding the repayment of its outstanding loan as a closing on the land
purchase appeared imminent. Following that
meeting, the LFTCEDC Board agreed that in accordance with one of the Agency’s
options it would make a payment of
$225,657.58 in accrued interest by July 31, 2009 in order for the IDA to issue
a renewed note on the $650,000 principal then outstanding. With payment of the interest being made the
Agency then had to consider what would be the basis of interest on a renewed
loan and whether interest would be assessed quarterly (as is currently done) or
annually. Based upon the Board’s
consensus, Mr. Dunn met and discussed the loan with Mr. Relyea
(of LFTCEDC) who proposed to his Board of Directors that the loan principal of
$650,000 be renewed for one year, having a term of August 1, 2009 to July 31,
2010. It was also determined that
interest would be calculated once at an annual LIBOR rate of 1.4266%. Members further suggested that the two
parties should begin to discuss any later loan renewals at ten months into the
new term and that at eleven months the new rate and terms should be determined.
On May 13, 2010 Mr. Relyea provided the Chairman with a written request (as
specified by the current loan agreement) for a one-year extension of the
existing loan to July 31, 2011, with the same loan terms and interest
rate. He stated in his letter that the
interest due from August 1, 2009 through July 31, 2010 would be paid at the
time the new loan is executed.
As there were no additional
questions or comments, Mr. Dunn moved to approve the requested one-year
extension of the Agency’s loan to LFTCEDC in accordance with the Loan Agreement
authorized on January 11, 2010. Mr.
Mooney seconded the motion.
Resolution
#1058
WHEREAS,
the
Luther Forest Technology Campus Economic Development Corporation (LFTCEDC) has
requested by letter of May 13, 2010 to the Chairman of the Saratoga County
Industrial Development Agency (the Agency) a one-year extension (to July 31,
2011) of the terms and principal balance of its current loan with the Agency,
and
WHEREAS,
the
current loan has a principal balance of $650,000 with one annual calculation of
interest at an annual rate of 1.4266% due and payable on or before July 31,
2010, and
WHEREAS,
to
facilitate the requested loan extension the Agency and LFTCEDC have agreed to
extend the covenants and conditions contained within Resolution # 1041 adopted
on January 11, 2010.
NOW
THEREFORE BE IT RESOLVED, THAT the Saratoga County
Industrial Development Agency does hereby agree to a one-year extension of the
existing $650,000 principal-balance loan with interest to be calculated annually
at a rate of 1.4266% to be paid in full by LFTCEDC on or before July 31, 2011
after which time interest shall increase to five percent (5%) per annum until
said obligation is paid in full or until a modification of the loan agreement
is agreed to by the Agency and LFTCEDC in writing.
A roll call vote was taken on the resolution with the
following results:
Ayes: Mr. Sutton, Mr. Rockwood,
Mr. Johnson, Mr. Mooney, Mr. Dunn, and Chairman Callanan.
Noes:
none
Adopted: 6-0
Annual
Financial Report/Audit (2009)
Mr. Benton informed the
Board that all of the work necessary for the Annual Financial Report has been
completed. He is waiting for the final
management letter from the auditor.
Submission of the Report is not late as there was a computer malfunction
on the state’s end that did not permit a required entry. The Management Letter and other data can not
be entered until that correction is made by the state comptroller’s office.
Disbursement
of Grant Funds: City of
Mr. Benton notified the
Board that an invoice was received from Mayor Johnson and a check for the
approved $10,000 grant funds was released to the city of
Extension
of Sales Tax Exemption: WDC/D.A. Collins
Mr. Valentine informed the
Board that a request had come in from Dan Collins for the extension of the
company’s sales tax exemption certificate that expired on May 16, 2010. He noted that the original ST-60 filed with
the Taxation and Finance Department (NYS T&F) was in the name of D.A.
Collins Construction Co., Inc. and resulted in the issuance of a sales tax
exemption certificate for the 400,000 sq. ft. facility for years 2003 –
2008. The exemption certificate and
ST-60 filed by the IDA in July 2009 for the 35,000 sq. ft. office consolidation
were in the name of WDC of Upstate New York, LLC. He spoke with the Tax and Finance department
and agreed with their staff to consolidate and use one name (WDC) and one
project number for work at this site in
There being no further discussion, Mr. Johnson moved to
approve the requested extension of the expiration date on the sales tax
exemption certificate for WDC of Upstate New York, LLC. Mr. Mooney seconded the motion.
Resolution
#1059
RESOLVED
THAT the Saratoga County Industrial Development Agency does
hereby approve the issuance and execution of a Sales Tax Exemption Certificate
with an expiration date extended to December 31, 2010 for WDC of Upstate New
York, LLC.
Ayes: 6
Noes:
0
Adopted:
6-0
Adoption
of Mission Statement/Performance Standards
At the Agency’s March 15,
2010 meeting, Mr. Benton stated, members were advised that the Public
Authorities Reform Act now requires local authorities to develop and adopt a
mission statement and a set of performance standards that are to be used to
measure each year’s performance. The
Governance Committee reviewed the performance goals and questions submitted by
the Authorities Budget Office (ABO) with the intent of submitting its
recommendations for Board adoption. Mr.
Benton distributed for review and adoption the proposed Mission Statement,
Performance Goals and acknowledgements by the Board. Each year the Board is to review the Agency’s
performance in areas of jobs, investments, and a description of its management. Mr. Rockwood asked if we should elaborate on
the types of assistance provided through the Agency and Mr. Benton stated that
what the ABO is looking for is more of a broadbrush
view of the functions and a brief description of how they are performed. Mr. Dunn noted that the Agency may not always
provide only financial assistance to company projects. Members concurred with his thought that the
Agency’s current Mission Statement should be amended to add that the IDA
provides financial assistance “and incentives” to maximize private capital investment.
As there were no further
questions or comments, Mr. Mooney moved to approve the Mission Statement and
Performance Standards as amended. Mr.
Johnson seconded the motion.
Resolution
#1060
RESOLVED,
THAT the Saratoga County Industrial Development Agency does
hereby approve the Mission Statement and Performance Standards (attached)
submitted by the Agency CEO, noting the amendment of the Mission Statement to
reflect comment from Counsel and Members relative to the Agency’s role of job
creation and retention as a primary purpose in addition to the provision of
financial assistance to the business community as a means of maximizing private
capital investment.
The results of a roll call
vote are as follows:
Ayes: Mr. Sutton, Mr. Rockwood,
Mr. Johnson, Mr. Mooney, Mr. Dunn, and Chairman Callanan.
Noes:
none
Adopted: 6-0
Rail
Crossing Improvement:
As reported last month, Mr. Brobston forwarded to the Agency a request he had received from CP Rail for payment of nearly $41,000 (estimated) of an $81,300 engineering estimate for rehab work on one of two tracks that are part of the Cady Hill Road double crossing in the Grande Industrial Park. He said that increased truck traffic from development within the industrial park and the addition of the school district’s bus garage within the Park have resulted in the condition of the rail being degraded over almost thirty years.
Mr. Benton provided a short
history of how the rail came to be at the industrial park, stating that a 1981
grant of $130,000 in federal funds administered by NYS (through DOT) was used
to bring rail behind the new Ball Manufacturing facility. The IDA is owner of the rail over which
Canadian Pacific has rights of use. Ball
Manufacturing, however, eventually realized that the rail was not going to work
for its purposes and didn’t make use of it.
He explained that in the early 1990’s Saratoga Warehouse was allowed to
relocate the rail to its current location at the side of its building located
at the corner of
Mr. Benton indicated that the needed rail repair and maintenance has been completed. He would like more information on the work completed and the associated costs. He asked whether the costs should be passed on to Saratoga Warehouse, based on the lease agreement. He stated that he had a conversation with Mr. McNeary who indicated that he was aware of the agreement and the obligation to maintain the rail. Mr. Dunn asked if this situation was suitable for the Agency’s use of the court-stipulated $75,000 set aside for public infrastructure improvements in the industrial park subject to approval by Quad/Graphics. Mr. Toohey explained that Quad/Graphics has to initiate use of the funds and the improvement has to service users in the Park. He opined that the suggestion works within the concept of the court agreement. In addition, Mr. Dunn asked whether any other facility within the Park had another use for the $75,000. Mr. Benton stated that he will make follow-up inquiries with DOT, Saratoga Warehouse, Quad and Canadian Pacific. Mr. Toohey asked if we had an invoice in the Agency’s name that it is now responsible for and Mr. Benton stated that it was not an invoice but an email estimate of costs. Mr. Toohey asked if Saratoga Warehouse knew specifically that rail maintenance according to the lease agreement had shifted to the Company and Mr. Benton affirmed that the Company knows that there is a payment issue that involves them.
Other Business
Mr. Dunn asked Mr.
Benton if there had been any further news since the April meeting regarding the
pending legal challenge to the IDA tax by IDAs across the state. Mr. Benton noted that the Attorney General’s
office agreed to suspend both collection and enforcement of the tax pending the
outcome of legal action. If the parties
can not agree to a resolution of the matter it will revert back to court by
June 11th. Mr. Benton stated
that he will contact Brian McMahon at NYS EDC to obtain an update on the status
of a potential out of court agreement.
Adjournment
There being no
further questions or comments, Mr.Dunn moved to
adjourn the meeting. Mr. Rockwood
seconded the motion, with all in favor.
Respectfully
submitted by,
Michael Valentine
Assistant Administrator