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 27, 2015
ROLL CALL:
Blevins............................... Absent
Hall .................................... Absent
McMahon ......................... Present
Weekes .............................. Absent
Burke ............................
LaBaff ...........................
Staples ...........................
Present
Present
Present
Others Present: SLCIDA Staff (Patrick Kelly, Richard Williams, Kimberly Gilbert, Brian Norton and Natalie
Sweatland). Andrew W. Silver, Esq., Counsel.
DETERMINATION OF QUORUM and CALL TO ORDER: Chairman Staples announces that the requirements
for a quorum have been met, and calls the meeting to order at 8:30 AM at the IDA office, Ernest J. LaBaff Industrial
Building, Canton.
PUBLIC NOTICE: Public notifications sent August 19, 2015 to, at a minimum: 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 23, 2015 meeting by Mr. LaBaff, seconded by
Mr. Burke. Carried unanimously.
FINANCIAL REPORTS: Mrs. Gilbert notes that in July the IDA received its reimbursement from New York State
for the rail rehabilitation grant, along with contractual revenue from St. Lawrence County and the St. Lawrence River
Valley Redevelopment Agency. McMahon/LaBaff motion to accept the July 2015 Financial Report. Carried
unanimously.
REPORTS OF COMMITTEES: Mr. Kelly notes that the Governance Committee will need to convene in the near
future.
STAFF REPORT: Mr. Kelly reports on the following:
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Additional Meeting Materials. Two additional resolutions have been provided to Board members for their
consideration today.
Hoosier Magnetics. Mr. Kelly notes that the loan closing is nearing. Also, the Company has applied as a Priority
Project through the Regional Economic Development Council.
Curran Renewable Energy. Mr. Silver continues to work with the project’s Bond Counsel (Harris Beach) regarding
the partial mortgage release by the Bank of New York for the rail siding project in Massena.
Canton Building. IDA staff outreached 5 firms for interest in resealing and striping the Canton building parking
lot. All were St. Lawrence County firms but 1, that being T&D Blacktop & Sealing from Beaver Falls NY which
submitted the lowest bid of $4,700. Also, Mr. Kelly notes that his staff is working on a solution to the leeching
of salt from the building’s garage onto the office carpet. He has had meetings with the building’s engineer who
has made recommendations to resolve the issue.
Canton Park Road. We continue to await reimbursement from New York State of approximately $470,000 on the
expansion project. Mr. Silver reports he will outreach Village of Canton Attorney Gerry Ducharme regarding the
dedication of the park road. Mr. Williams also reports that the remaining item from July’s lightning strike
replacement of the hot water heater’s circuit board. Once complete, we will determine if filing an insurance claim
is financially advantageous.
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Newton Falls Rail. We are awaiting final documentation for Phase II of the project. The project is considered an
IDA public works project and will require prevailing wages to be paid, something the rail engineer had not
considered in their initial draft work. DANC’s involvement has proven helpful to the project, most notably, by
getting the State to agree to a monthly reimbursement schedule and to help collect and document equity
investment for the project, which we are proposing will include work being done by the EPA at the J&L site
(which is served by the rail) as well as investment at the former Newton Falls paper mill and Benson Mines
locations.
Canton-Potsdam Hospital. The Hospital requested an amendment to the existing bonds, which the IDA discussed
with the IDA Counsel on the project (Underberg & Kessler), and agreed to execute.
St. Lawrence Health System. The IDACDC has been having discussion with the SLHS on a $35 million expansion
project involving the construction of an ambulatory surgery center in Canton. The SLHS is the active parent and
co-operator of Canton-Potsdam Hospital, Gouverneur Hospital, and Canton-Potsdam Hospital Foundation, and
will lease the new facility to Canton-Potsdam Hospital. We expect an application by tomorrow (Friday August
28) and will then be able to schedule a public hearing.
Clarkson University/Union Merger. The merger project will create the Clarkson University Capital Region
Campus. Approvals required by the IDA or the IDACDC will be finalized with Bond Counsel and handled at
the September meeting.
Meat Processing Facility. The office received numerous calls from County residents suggesting that the SLCIDA
bring the proposed Watertown meat processing facility to St. Lawrence County and oftentimes had suggested
specific areas of the County that would be willing to host such a facility. Mr. Kelly reminds the board members
that there are piracy restrictions that limit the IDA in these kinds of situations. He goes on to note that United
Helpers’ project is looking at a parcel within the Canton Park for their slaughterhouse, and that United Helpers
plans to discuss a zoning change with the Village Planning Board. A discussion ensues about the issues raised in
Jefferson County and similar concerns for the United Helpers proposal, specifically smells, sounds, waste
treatment, traffic, etc. The board members, as owners of the Canton Park, are asked what message they wish to
convey. A discussion ensues regarding other sites in St. Lawrence County, at least 4 or 5, that may be more
suitable for this type of project. This project may also limit what companies may wish to locate in the park.
NEW BUSINESS:
Resolution IDA-15-08-19: (i) Authorizing the Extension of Agent Status of Affinity Potsdam Properties, LLC for a
Certain Project (as more particularly described herein) (ii) Adopting Technical Amendments to the Description of the
Project; and (iii) Authorizing the Execution and Delivery of Related Documents. Mr. Kelly reports that this resolution
is a result of earlier Board discussions regarding the Company’s request to change the original project model by
reducing the number of cottages to be constructed and replacing it with a new building. At the Board’s direction, this
resolution does not provide any new or additional financial benefit – it only modifies the project description and
provides additional time for the completion of the project. Motion to approve Resolution IDA-15-08-19 by Mr.
LaBaff, seconded by Mr. Burke. The motion is approved by unanimous vote.
Resolution IDA-15-08-20: Authorizing Amendment of Existing Industrial Building Lease for the St. Lawrence
Brewing Company, Inc. Project. Mr. Kelly notes that St. Lawrence Brewing Company is seeking relief from the rental
rate on its building lease. Motion to approve Resolution IDA-15-08-20 by Mr. LaBaff, seconded by Mr. Burke. The
motion is approved by unanimous vote.
Resolution IDA-15-08-21: (i) Accepting an Application Submitted by Beamko, LP (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 notes that the Company constructed a new
building in 2014, and now wishes to renovate the older building. Board members review the Company’s application
and cost-benefit analysis, and raise questions regarding the jobs commitment. Mr. Kelly notes that the Company has
exceeded its jobs commitment under the 2014 project. Motion to approve Resolution IDA-15-08-21 by Mr. LaBaff,
seconded by Mr. Burke. The motion is approved by unanimous vote.
Resolution IDA-15-08-22: (i) Accepting an Application Submitted by Ansen Corporation (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 Scheduling and Conducting of a Public Hearing 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; (vi) Authorizing the Execution and Delivery of an Agency Compliance Agreement and Related Documents
with Respect to the Sales and Use Tax Exemption, and (vii) Accepting and Adopting Findings with Respect to the
Project Pursuant to SEQRA. Upon review by the Board members of the application and cost-benefit analysis, a brief
history is provided by Mr. Kelly, who notes that Ansen is working to expand its business and focus on upper level
electronics assembly. Ansen’s initial focus is to expand and grow its lighting business with a key New York-state based
customer. When the customer introduced its new stadium light in the Fall of 2014, Ansen did not have sufficient
space to take on this additional business opportunity and assembly work for the product was handled by a firm in
Ohio. Ansen has been discussing with the customer the opportunity to bring these jobs back to New York from
Ohio; but, in order to do so Ansen requires an expanded physical presence, something the new facility will provide.
Ansen applied to the SLCIDA and the SLCIDA-LDC for financial assistance to purchase a 40,000 sq. ft. building
located at 830 Proctor Avenue in Ogdensburg, and to renovate and convert it for bulk storage of palletized raw
material, an open manufacturing space, and palletized storage of finished goods. Ansen will use the space to seek out
other, larger-scale project work as well. This resolution approves the Sales and Use Tax Exemption portion of the
project and authorizes the scheduling of a public hearing. This project is expected to create 30 full time jobs within
three years after completion of the project. Motion to approved Resolution IDA-15-08-22 by Mr. LaBaff, seconded
by Mr. Burke. The motion is approved by unanimous vote.
Resolution LDC-15-08-17: Authorizing a Loan Modification for St. Lawrence Brewing Company, Inc. Mr. Kelly
notes that the Company, in addition to the building lease relief, has asked for interest-only payments due through
August 2015, followed by a 6-month mortatorium on payments. Motion to approve Resolution LDC-15-08-17 by
Mr. Burke, seconded by Mr. LaBaff. The motion is approved by unanimous vote.
Resolution CDC-15-08-11: Authorizing Civic Development Fund Loan Financing to St. Lawrence County Chamber
of Commerce, Inc. Mr. Kelly reports that the Chamber will pay down the balance on their Line of Credit to $22,000,
and then convert the Line of Credit to a $22,000 loan. Motion to approved Resolution CDC-15-08-11 by Mr. Burke,
seconded by Mr. LaBaff. The motion is approved by unanimous vote.
Resolution MIC-15-08-12: Authorizing Loan Funding to Wright’s Tools Sales Rental and Service, LLC. Mr. Norton
notes that the company will occupy the former Holcomb’s building on Maple Street in Massena. The owner is
currently employed at The Home Depot and plans to continue his full-time employment there, but will hire his brother
to assist him with the operation of his company. Mr. Wright plans to incorporate service of equipment in year 3 of
operation. The loan is part of a project involving SeaComm Federal Credit Union and the Adirondack Economic
Development Corporation. Currently, our collateral is a second, co-proportional lien position with AEDC on
machinery and equipment, furniture and fixtures, inventory, accounts receivable, and general intangibles. Mr. Norton
notes the collateral coverage is weak and the owner does have a residence, but there is minimal equity. Chairman
Staples asks how much equity is in the residence, to which Mr. Norton notes it is slightly less than $20,000. Board
members agree that they should still ask for a mortgage position. Motion to amend Resolution by Mr. LaBaff,
seconded by Mr. McMahon. Motion to amend is approved by unanimous vote. Motion to approve Resolution MIC15-08-12, as amended, by Mr. LaBaff, seconded by Mr. McMahon. The motion is approved by unanimous vote.
Resolution IDA-15-08-23: Authorizing Termination of Lease with St. Lawrence Lumber. Mr. Kelly notes that this
resolution formalizes the direction of the IDA Board to terminate the lease with the company, which is no longer
operating out of the project facility. Motion to approve Resolution IDA-15-08-23 by Mr. LaBaff, seconded by Mssrs.
McMahon and Burke. The motion is approved by unanimous vote.
Resolution IDA-15-08-24: Authorizing Application for Grant Funds Through New York State Department of
Transportation Passenger and Freight Rail Assistance Program. Mr. Kelly notes that staff are working with Benson
Mines to seek assistance as the mine works to rebuild rail sidings. Mr. Williams notes that he will submit the grant
application today. Motion to approve Resolution IDA-15-08-24 by Mr. LaBaff, seconded by Mr. Burke. The motion
is approved by unanimous vote.
EXECUTIVE SESSION: LaBaff/McMahon motion for Executive Session at 9:30 AM to discuss the financial and
credit history of a particular corporation. The Board returns to Regular Session at 9:40 AM.
ADJOURNMENT: The meeting adjourns at 9:45 AM by unanimous consent.
(Mr.) Ernest J. LaBaff, Vice-Chairman