ST. LAWRENCE COUNTY INDUSTRIAL DEVELOPMENT AGENCY
ST. LAWRENCE COUNTY IDA LOCAL DEVELOPMENT CORPORATION
ST. LAWRENCE COUNTY IDA CIVIC DEVELOPMENT CORPORATION
ST. LAWRENCE COUNTY LOCAL DEVELOPMENT CORPORATION
~ Meeting of August 28, 2014
CALL TO ORDER: Vice-Chairman LaBaff called the meeting to order at 8:30 AM at the IDA office, Ernest
J. LaBaff Industrial Building, Canton.
ROLL CALL:
Blevins ..........................
LaBaff ...........................
Peck ..............................
Weekes .........................
Present
Present
Present
Absent
Hall ............................
McMahon .................
Staples .......................
Present
Present
Delayed*
Others: SLCIDA Staff (Patrick Kelly, Richard Williams and Natalie Sweatland); Andrew Silver, Esq., Agency
Counsel.
PUBLIC NOTICE: Public notifications sent August 21, 2014 to, at a minimum: St. Lawrence County’s
newspapers designated for the publication of local laws and other matters required by law to be published;
additional local media sources and websites.
PUBLIC COMMENT: None
APPROVAL OF MINUTES: Motion to accept the minutes of the July 24, 2014 meeting by Mr. McMahon,
seconded by Mr. Peck. Carried unanimously.
FINANCIAL REPORTS: Mr. Plastino reports that the core agencies appear to be on target with
projections. Three major capital projects, the expenditures of which are all subject to reimbursement by the
State, are responsible for much of the decline in discretionary cash accounts. The three major capital projects
are: Massena Industrial Park building improvements, Canton Industrial Park improvements and the Newton
Falls Rail Rehab. All are in various states of disbursement from ESD. However, we have no indication by
the State of when we will get reimbursement. Mr. Plastino also notes that he is working on the authorities’
2015 budgets, and draft budgets will be presented at the September meeting. Peck/Hall motion to accept
the Financial Report for July 2014. Filed for audit.
REPORTS OF COMMITTEES: None
*Mr. Staples arrives at 8:45 AM.
STAFF REPORT:
Mr. Kelly reports on the following:
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Agenda. Mr. Kelly briefly reviews the meeting’s agenda items.
Canton Industrial Building Financing. The building’s permanent financing documents should be
ready for execution in September.
GM Vendor Project. The balance due by the SLCIDA on the 2004 project loan will most likely
require payoff. Mr. Kelly added that Curran Renewable Energy, in order to provide clear transfer
for a small portion of property to CSX, is working with CSX on a land “swap” and he may need us
to pay off the debt on the loan in full.
Loan Closings. First Class Aire, LLC loan documents, and Corning and DeFelsko’s respective
PILOT documents are being finalized for closing.
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St. Lawrence Brewing Company. The Company paid down its loan to enable the processing of a
mortgage release on certain rental property used as collateral. We continue to work closely with the
Company to offer any assistance.
Newton Falls Rail Rehabilitation. The rail clearing has been completed, and Phase 2 bid documents
should be completed in November. We have submitted expenses under the NCRED grant to ESD
for reimbursement for a portion of the work completed thus far.
Mohawk Adirondack & Northern Rail. Our settlement agreement with MANRR included timing
thresholds relative to the status of the rail PILOTs in Jefferson, Lewis and St. Lawrence Counties.
Jefferson County is working on its PILOT and has asked us to meet with them on September 3 to
coordinate our efforts.
Jones & Laughlin (J&L). The SLCIDA-LDC previously authorized an allocation of up to $5,000 to
assist with costs associated with the creation of the local development corporation. Board member
Mark Hall and CEO Patrick Kelly, were both appointed to act on behalf of the SLCIDA-LDC to
coordinate discussions with St. Lawrence County and determine the corporation’s structure. Mr.
Kelly notes that he recently attended a meeting of the Clifton-Fine Economic Development Council
and was asked if this LDC could handle more than just the J&L site? Our legal counsel found no
issues with broadening the scope of the LDC. Mssrs. Kelly and Hall will meet with the County’s
J&L site team.
Canton Industrial Park. The project continues. The request for wage information under FOIL was
answered on August 21.
Corning. Mr. Kelly spoke at the groundbreaking ceremony at Corning’s Canton Plant.
September Meeting. Mr. Kelly proposes to hold the September meeting in Massena.
EXECUTIVE SESSION: Hall/LaBaff motion for Executive Session at 9:05 AM to discuss the financials
of a specific company and potential litigation with a specific company. LaBaff/McMahon motion to return
to Regular Session. The Board returns to Regular Session at 9:20 AM.
NEW BUSINESS:
Resolution IDA-14-08-20: (i) Accepting an Application Submitted by Maxam North America, Inc. with
Respect to a Certain Project (as further described below); (ii) Authorizing the Scheduling and Conduct of a
Public Hearing with Respect to the Project; (iii)Describing the Forms of Financial Assistance Being
Contemplated by the SLCIDA with Respect to the Project; (iv) Authorizing Financial Assistance to the
Company in the Form of a Sales and Use Tax Exemption for Purchases and Rentals Related to Undertaking
the Project; (v) Appointing the Company as Agent to Undertake the Project; and (vi) Authorizing the
Execution and Delivery of an Agent Compliance Agreement and Related Documents with Respect to the
Sales and Use Tax Exemption. Mr. Kelly reports that the Company has applied to the SLCIDA for assistance
in the form of a Sales and Use Tax Exemption, a Partial Real Property Tax Abatement in the form of a
Payment in Lieu of Taxes agreement, and a (possible) Mortgage Recording Tax exemption. The Company
is a US subsidiary of a Spanish company with whom SLCIDA and OBPA have been working with for
approximately the last 1 ½ years. It manufactures oxidizers used in the construction and mining markets,
and services mining and construction markets throughout North America. It is acquiring approximately 11
acres of property in OBPA’s industrial park, and will be constructing and operating a rail spur leading onto
the property, along with construction of an approximately 4,800 sf main production building, construction
of 2 silos for storage of raw materials and finished product, and acquisition and installation of several
prefabricated tanks as part of the project for holding materials to be used in the blending process. The
project will increase outbound truck shipments and inbound rail shipments. The project will create 12 full
time jobs over the next three years. A public hearing has been scheduled for Thursday, September 11 at
11:00 AM at the OBPA’s main conference room in Ogdensburg. Motion to approve Resolution IDA-1408-20 by Mr. LaBaff, seconded by Mr. Hall. The motion is carried by unanimous vote.
Resolution LDC-14-08-14: Authorizing Funds Through the St. Lawrence River Valley Redevelopment
Agency (RVRDA). Mr. Kelly reports that the Business Development Corporation for a Greater Massena
(BDC) requested the RVRDA’s assistance as it moves ahead with its rail siding project within the Massena
Industrial Park. The BDC requested that its term, bridge loan through the RVRDA’s 2011 Community
Development & Environmental Improvement Program funds (CDEIP) be converted to a revolving loan
and increased to $317,972. This will assist the BDC, now in the final development stage of the project, to
meet its revised out-of-pocket costs for engineering and construction. The RVRDA approved the
resolution unanimously at its August 26, 2014 meeting. Motion to approve Resolution LDC-14-08-14 by
Mr. McMahon, seconded by Mr. Blevins. The motion is carried by unanimous vote.
Resolution MIC-14-08-06: Authorizing Loan Funding to Hebel Welding and Machine, LLC. Mr. Kelly notes
that Mr. Hebel received loan funding in 2005 to start his machining operation, and has made all payments
as scheduled. He is expanding his business, and has reapplied for funds to purchase equipment and for
working capital. Motion to approve Resolution MIC-14-08-06 by Mr. Blevins, seconded by Mr. Hall. The
motion is carried by unanimous vote.
ADJOURNMENT: Adjourns at 9:50 AM by unanimous consent.
(Mr.) Lynn Blevins, Secretary