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 May 14, 2015
CALL TO ORDER: Chairman Staples called the meeting to order at 8:30 AM at the IDA office, Ernest J. LaBaff
Industrial Building, Canton.
ROLL CALL:
Blevins............................... Absent
Hall .................................... Present
McMahon ......................... Present
Weekes .............................. Present
Burke ............................
LaBaff ...........................
Staples ...........................
Present
Absent
Present
Others: SLCIDA Staff (Patrick Kelly, Thomas Plastino, and Natalie Sweatland). Andrew W. Silver, Esq., Counsel.
PUBLIC NOTICE: Public notifications sent May7, 2015 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 March 26, 2015 meeting by Mr. Weekes, seconded
by Mr. Hall. Carried unanimously.
FINANCIAL REPORTS: Mr. Plastino presents the Financial Reports for February, March and April 2015. He
reports that the SLCIDA’s operating budget shows a gain of approximately $76,000 for the first quarter of 2015. The
figure does not include monies due the SLCIDA for the rail rehab grant, but the actual operating budget is positive
due in part to the decrease in staff. SLCIDA has received approximately $386,000 of the monies owed it through the
rail rehabilitation grant’s reimbursement process, out of the $1.1 Million the SLCIDA has expended. The SLCIDA
submitted its second reimbursement request in April. In response to a question by Chairman Staples, Mr. Kelly reports
that the SLCIDA sent a letter to Lewis County supporting authorization of that county’s portion of the PILOT. Mr.
Plastino adds that the operating expenses of the SLCIDA, specifically the audit services line has exceeded our budget
figures, as all ESD reimbursements require CPA review and certification, which was not anticipated by the SLCIDA
when it created its 2015 budget. The budget line will require amendment before the end of the fiscal year.
McMahon/Burke motion to accept Mr. Plastino’s report. Carried unanimously.
REPORTS OF COMMITTEES: None
NEW BUSINESS:
NY PRIZE. Mr. McMahon notes that the Town of Massena Electric Department will be applying for assistance under
NYSERDA’s NY Prize competition. The competition assists communities in the creation of microgrids, and MED
will be applying for an award for the Massena Industrial Park. It was the consensus of the Board membership to
provide MED with a letter written in support of the project.
ANNOUNCEMENT OF DATE OF ANNUAL MEETING. The Chairman sets Thursday, June 25, 2015 at 8:30
AM for the Annual Meeting.
APPOINTMENT OF NOMINATING COMMITTEE. The Chairman appoints a Nominating Committee
consisting Mssrs. LaBaff, Hall and Weekes. He appoints Mr. LaBaff to Chair the Committee.
OLD BUSINESS: None
STAFF REPORT: Mr. Kelly reports on the following:
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Additional Resolution. Mr. Kelly notes that an additional resolution has been distributed a copy of the previouslyemailed resolution for Cives Steel Company.
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Ansen. Mr. Kelly, Ogdensburg Administrator John Pinkerton, and OBPA’s CFO Fred Morrill met with
representatives of the Ogdensburg-based Ansen Corporation, in light of Ansen’s recent announcement of its
intention to purchase property in Syracuse. We have been having discussions with Ansen for some time about
their potential expansion plans in St. Lawrence County. He notes that he was assured by Ansen that the company
is not leaving its present location in the Ogdensburg Industrial Park. Ansen has recently been awarded a contract
with a Syracuse-based lighting company (Ephesus) and the Company feels having a location nearer to Ephesus is
more beneficial. Currently, Ansen employs about 215 people at the Ogdensburg location and they are aware of
what benefits are available to them through the SLCIDA. OBPA will continue to dialogue with Ansen.
ProLine Striping. Mr. Kelly reports that he has authorized a collateral change consisting of (i) removal of a 2006
Ford Taurus, and (ii) an exchange of collateral (removal of a 2006 Chrysler Van and addition of a 2014 Dodge
Caravan).
Curran Renewable Energy. The two partial release of mortgaged premises (IDALDC and GMEDF) documents
should be ready for signature by the end of the week. Mr. Silver is outreaching the project’s Bond Counsel (Harris
Beach) regarding the release by the Bank of New York.
Collections. The SLCIDA-LDC and SLCLDC both have resolutions of declaration of uncollectible debt.
Judgments. Mr. Kelly notes that staff are working with legal counsel on compiling a database of the judgments we
have on file, to ensure they are renewed as needed.
Canton Park Road. The road is finished. Mr. Silver is working with the Village of Canton attorney on finalizing
the deed to transfer the road to the Village.
Lawn Care. Bids have been returned and agreements have been signed with the local contractors to provide lawn
care (mowing) services for SLCIDA properties in Gouverneur, Massena, Canton and Potsdam.
Newton Falls Rail. Draft, end-stage estimates for Phase 2 of the rehabilitation project have exceeded our original
plans. Rich Williams is working with the rail engineers to see if the number of rail ties slated for replacement can
be reduced, thereby reducing the cost of the rehab. In Phase 1 of the project, we were able to use the value of
the rail on the line as our 10% commitment equity. We have yet to receive a determination from ESD about
using the rail as our commitment equity on Phase 2.
J&L. SLCIDA continues to meet with the County’s Task Force regarding the J&L site.
Board of Legislature Orientation. We have completed orientations for new legislators. The sessions included
visits in Ogdensburg, Massena and Gouverneur, to visit IDA-assisted project sites.
Board Reappointments. Mr. Blevins’ reappointment to the IDA Board is in process. Mr. Weekes’ appointment
expires the end of July, and the reappointment request will be forwarded to the Board of Legislators today.
New York State Economic Development Council. The NYSEDC’s Annual Meeting is next week (May 18-20) in
Cooperstown.
McKinsey Study. Mr. Kelly reports that he and Mr. Plastino have been appointed to a newly-formed advisory
committee.
Tesla. Mr. Kelly reports that he has worked to outreach Tesla’s Elon Musk, regarding the opening of a
manufacturing facility at the former GM site. He notes that State legislative representatives have also outreached
Mr. Musk, and that he has had discussions with NYPA and ESD about outreach efforts as well.
Wine and Beer Summit. As part of the Wine Trail promotion, staff are working with NY Senator Patty Ritchie’s
office on a Wine and Beer Summit to be held in our building in September.
SLRVRA: CDEIP Awards. Members of the St. Lawrence River Valley Redevelopment Agency (SLRVRA)
continue to meet to evaluate grant and loan awards under their Community Development and Environmental
Improvement Program.
Media Accessories.com, Inc. Mr. Kelly provides a brief history on the company, noting that the company acquired
the Lot 17 Massena Industrial Park building through a Lease/Purchase Agreement. The Company borrowed the
funds for the downpayment from the GMEDF, which in turn holds a mortgage on the building. The company
has since defaulted on the agreements and vacated the premises. To obtain clear title to the building, SLCIDA
will need to pay off the mortgage. GMEDF has agreed to waive interest and penalties. Mr. Hall motions to
authorize the SLCIDA to pay off the outstanding mortgage (minus interest and penalties) owed to the GMEDF.
Motion is seconded by Mr. Weekes, and is approved by unanimous vote.
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Cost Benefit Analysis. Mr. Kelly emphasizes that it is important that Board members fully understand and discuss
the elements of the Cost Benefit Analysis on IDA projects.
NEW BUSINESS (continued):
Resolution LDC-15-05-12: Authorizing a Loan of Up to $100,000 to Hoosier Magnetics. Mr. Kelly reports that
Hoosier is investing approximately $1 Million in the Ogdensburg facility. The financing package includes a $100,000
loan from the Ogdensburg Growth Fund, $100,000 from the St. Lawrence River Valley Redevelopment Agency, and
$100,000 from the North Country Regional Economic Development Fund. This project will assist the Company to
replace a 60 year old kiln and install a dust collector to improve emissions. The Company created 3 FTE positions in
2014 in anticipation of this project and agrees to retain no fewer than 33 FTEs over the next three years. The SLCIDALDC will act as the packager on this project, meaning it will invoice, collect and distribute payments to the lenders.
Motion to approve Resolution LDC-15-05-12 by Mr. Weekes, seconded by Mr. Hall. The motion is approved by
unanimous vote.
In response to a question from Mr. McMahon regarding if this project is the first draw on the NCRED funds, Mr.
Kelly notes that it is not, but that it is the first for a project in St. Lawrence County. Mr. Kelly also notes that he
serves on the 4-person board, alongside representatives of ESD, NYPA and DANC.
Resolution LDC-15-05-13: Authorizing a Loan of up to $17,500 to Hozmerica, LLC. Mr. Kelly notes that Hozmerica,
LLC applied to the SLCIDA-LDC for SLRVRA fund loan financing for up to $17,500 to assist the company in
renovating and expanding its bait and tackle facility along the Oswegatchie River in Ogdensburg. The SLRVRA
approved the financing at its meeting on May 12. This funding package includes bank financing and a commitment
of equity from the owner, William Hosmer. The project has committed to create 1 FTE and 1 PT job over the next
three years. Motion to approve Resolution LDC-15-05-13 by Mr. Hall, seconded by Mr. Weekes. The motion is
approved by unanimous vote.
Resolution LDC-15-05-14: Declaration of Uncollectible Debt. Mr. Kelly reports that staff have repeatedly attempted
to secure payment on the loan owed by Daniel E. Kerr d/b/a DE Kerr Construction and Logging, to the St. Lawrence
County IDA Local Development Corporation. We have secured and filed a judgment against Mr. Kerr. Mr. Kerr’s
attorney has advised that the collateral (equipment) is essentially worthless. The action by the SLCIDA-LDC does
not remove the judgment or vacate the debt, it only authorizes removal of the debt from the SLCIDA-LDC’s balance
sheet. Motion to approve Resolution LDC-15-05-04 by Mr. Weekes, seconded by Mr. McMahon. The motion is
approved by unanimous vote.
Resolution LDC-15-05-12: Declaration of Uncollectible Debt. Mr. Kelly reports that attempts to secure payment on
loans owed by Thomas Schneller d/b/a AKJ Marine and Karen Rayburn d/b/a Sugar Shack Bakery & Café have
been unsuccessful. As cited in the US DOT Office of Inspector General’s website, “On July 3, 2012, Thomas
Schneller, a millwright/welder employed by the Saint Lawrence Seaway Development Corporation (SLSDC), pled
guilty to fraud regarding federal worker’s compensation benefits in U.S. District Court, Northern District of New
York. Mr. Schneller claimed an on-the-job injury in February 2004, yet continued to work in his own private welding
business (AKJ Marine - established about a week after his purported injury), while receiving federal worker’s
compensation benefits. Mr. Schneller failed to disclose his outside source of income on the annual Office of Worker’s
Compensation Program certification forms and remained in the program to the present day. As a result of his guilty
plea, Mr. Schneller agreed to make restitution to the U.S. Department of Labor (DOL) in the amount of $84,987.”
Mr. Kelly also notes that staff seized and auctioned off collateral of Karen Rayburn d/b/a Sugar Shack Bakery and
Café, and he believes that in both cases, cost-effective means of collecting on these debts have been exhausted.
SLCLDC hold judgments against both individuals. Motion to approve Resolution LDC-15-05-12 by Mr. Hall,
seconded by Mr. Weekes. The motion is approved by unanimous vote.
Resolution IDA-15-05-13: (i) Accepting an Application Submitted by Cives Steel Company, Northern Division (the
“Company”) with Respect to a Certain Project; (ii) Describing the Forms of Financial Assistance Being Contemplated
by the SLCIDA with Respect to the Project; (iii) Authorizing the Undertaking and Financial Assistance to the
Company for the Project in the Form of a Sales and Use Tax Exemption for Purchases and Rentals Related to
Undertaking the Project; (iv) Appointing the Company as SLCIDA’s Agent for Purposes of Undertaking the Project;
(v) Authorizing the Execution and Delivery of An Agent Agreement and Other Documents Related to the Financial
Assistance; (vi) Accepting and Adopting Findings with Respect to the Project Pursuant to SEQRA. Mr. Kelly and
Board Members review the project details and Cost-Benefit analysis of the application. He notes that the project
involves the purchase of an approximately $750,000 piece of equipment (robotic plasma cutting system) and additional
materials totaling approximately $50,000, for a total investment by the company of $800,000. The exemption from
sales and use tax is estimated to be $64,000. The Company currently has 130 local employees (offering
medical/dental/life and retirement benefits) with an annual payroll of approximately $5.2 Million. The Company has
7 plants in the United States and indicated it considered numerous options for investment in and placement of the
equipment outside of New York State. The assistance of the SLCIDA through a sales and use tax exemption benefit
helped secure the Company’s decision to invest in the new equipment and strengthen its 60+ year commitment to
the Gouverneur facility. Additionally, the increased productivity from the new equipment will enable the Gouverneur
facility to more effectively compete with other firms, including those outside the United States currently benefitting
from a strong US dollar, and could potentially lead to future development and expansion at Cives’ Gouverneur plant.
Mr. Hall noted that many bids require US-made steel and that Cives has facilities in other parts of the US. Their
decision to invest in New York State should be seen a positive move toward this area. Motion to approve Resolution
IDA-15-05-13 by Mr. Weekes, seconded by Mr. McMahon. Mr. Weekes discloses that he has family members
employed at Cives’ Gouverneur plant, none of whom hold any ownership in the plant. The motion is approved by
unanimous vote.
EXECUTIVE SESSION: Hall/McMahon motion for Executive Session at 9:44 AM to discuss the financial and credit
history of a particular corporation. The Board returns to Regular Session at 10:10 AM.
ADJOURNMENT: The meeting adjourns at 10:10 AM by unanimous consent.
(Mr.) Lynn Blevins, Secretary