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 September 24, 2015
ROLL CALL:
Blevins...............................
Hall ....................................
McMahon .........................
Weekes ..............................
Absent
Present
Absent
Present
Burke ............................
LaBaff ...........................
Staples ...........................
Absent
Present
Present
Others Present: SLCIDA Staff (Patrick Kelly, Thomas Plastino, Richard Williams, Kimberly Gilbert, and Natalie
Sweatland); County Legislator Larry Denesha; Bill Wilmott and Chris Stone from the Northern Regional Council of
Carpenters.
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 8:38 AM at the IDA office, Ernest J. LaBaff Industrial
Building, Canton.
PUBLIC NOTICE: Public notifications sent September 15, 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 August 27, 2015 meeting by Mr. LaBaff, seconded
by Mr. Weekes. Carried unanimously.
FINANCIAL REPORTS: Mr. Plastino reviews the financial reports. The rail rehab expenditures to date are
approximately $1.205 million, with approximately $1.13 million received as reimbursement. LaBaff/Weekes motion
to accept the August 2015 Financial Report. Carried unanimously.
REPORTS OF COMMITTEES: Mr. Kelly notes that the Audit and Finance Committee will meet after this meeting,
and the Governance Committee will meet at 1:00 PM today.
STAFF REPORT: Mr. Kelly reports on the following:
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Assessment of the Effectiveness of Internal Controls. Mr. Kelly explains in detail each of the processes put in
place to ensure that no single individual has control of Agency or Corporation funds. He notes that in addition
to the internal controls, the finances are reviewed in detail by independent auditors. Chairman Staples notes that,
as a CPA and auditor, auditors are always interested in who has access to funds, how the funds are disbursed, how
thorough is the agency’s system of checks and balances.
Hoosier Magnetics. The Hoosier loan closing was held on Friday, September 18.
St. Lawrence Lumber. The SLCIDA has executed the documents necessary to terminate the PILOT. SLCIDA
implemented its Recapture Policy on this project, deemed to be non-performing.
Canton Park Road. We continue to await reimbursement from New York State of approximately $470,000 on the
expansion project. The Village of Canton’s Attorney Gerry Ducharme has indicated that the transfer documents
for the Park Road are awaiting signature of the Village Executive, and the SLCIDA anticipates that the transfer
of the road will be complete within the next few weeks, possibly even days. This process is part of the 5-party
MOU signed in 2007. Mr. LaBaff notes that the Canton Park Road project was a non-union job, but it paid a
prevailing wage.
Canton Park Building. We are still working on completing repairs to some of the areas damaged by the July 2015
lightning strike.
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Massena Industrial Park. The Lot 19 building currently has three (3) tenants: Trade Warehouse, with 1700 sq. ft.;
Fockler, with 9,000 sq. ft.; and Purine Pharma with 4,000 sq. ft. The Lot 18 building is available, with a small
business tenant leasing the garage behind the building.
Newton Falls Rail. The SLCIDA was awarded $234,000 in grant funds from the Northern Border Regional
Commission to install 5 rail crossings. The funds will enable us to use more of the ESD rehab monies to replace
ties on the rail line. Mr. Williams was instrumental in the NBRC application. Mr. Kelly notes that SLCIDA is in
discussion with DANC and the RVRDA regarding bridge financing for Phase 2 of the rail rehabilitation project.
SLCIDA has made a request to ESD asking for monthly reimbursements. We are also awaiting a cash flow
analysis on the project to assist in our financial planning for the rehabilitation. Mr. Kelly goes on the report that
there have been inquiries from potential rail line users, along with interest in the Newton Falls Paper Mill.
J&L Mine. A resolution is being put before the SLCIDA to authorize an agreement with DANC that will assist
in the remediation of the Mine.
Marketing. SLCIDA has attended six (6) trade shows so far this year, and continues to develop its collaboration
with the County’s colleges. SLCIDA has worked on email blasts with SUNY Potsdam and Clarkson, has
published information in the SLU’s alumni magazine on the Canton Park, and is currently working with SUNY
Potsdam, utilizing its strong ties to the music industry. SLCIDA staff are in near-constant contact with Clarkson
University staff sharing business leads. Drum Country Business, a regional marketing initiative of which St.
Lawrence County IDA is a member, has hired a firm to assist with nurturing business contacts, and has had to
date about 20 calls with high-level executives from various businesses.
CFA Process. As part of the Consolidated Funding Application, the North Country Regional Economic
Development Council has endorsed 23 regional projects for submission to New York State. Six of them are in
St. Lawrence County and 3 or 4 are regional. This shows a positive, proportional tie to St. Lawrence County in
this year’s funding process. Mr. Kelly notes that Mr. Plastino alone has spent approximately 300 man-hours on
the CFA process. Additionally, SLCIDA staff serve on subcommittees and provide project information data to
assist in the application. REDC has no paid staff, and relies on commitments from local professionals.
St. Lawrence Health Service. The project is delayed as the Hospital works through issues with the Department of
Health.
McKinsey Report. The project is winding down. SLCIDA staff are awaiting the final report. This report will also
be a central point of information to assist in the creation of St. Lawrence County’s Comprehensive Economic
Development Strategy.
Meeting Schedule. The Governance Committee will discuss this at its 1:00 PM meeting.
Maxam. Mr. Kelly reports he and Secretary Lynn Blevins attended the Open House. Maxam is a Utah-based
company and a subsidiary of a Spanish company. The SLCIDA-LDC awarded $78,000 in grant funds through
the St. Lawrence River Valley Redevelopment Agency’s CDEIP and the SLCIDA provided a sales and use tax
exemption and PILOT for the project.
County Budget. The SLCIDA’s contract with the County expires at the end of this year, and Mr. Kelly reports he
is having discussion with the Board of Legislators and County Administrator. The County is struggling, and the
impact on our contract has yet to be finalized.
Clarkson University. Board members discuss a recent letter to the editor critical of Clarkson’s plan to redevelop
two large buildings in the Downtown section of Potsdam. Mr. Kelly notes that, as in the past, any PILOT would
require the unanimous consent of the affected taxing jurisdictions, which has not been an easy process.
NEW BUSINESS:
Resolution IDA-15-09-25: Authorizing the Chief Executive Officer to Enter into a Technical Services Agreement
with DANC for Engineering and Redevelopment Planning Assistance for the J&L Facility. Mr. Hall noted that the
SLCIDA received an $87,500 grant award two years ago to assist with the demolition of buildings at the J&L site
through an engineering analysis and redevelopment plan. The contract calls upon the expertise of DANC for project
management and engineering services. Current activities at the site include oil spill remediation, asbestos abatement,
and an EPA project to tear down one building at the site. There are 15 more buildings on the site with no protocol
outlined for their demolition. Chairman Staples inquires as to where the debris is taken. Mr. Hall notes that it is
disposed of at the Rodman site, and adds that DANC has reduced the tipping fees for the EPA work, and he is sure
that would be extended to this project. Motion to approve Resolution IDA-15-09-25 by Mr. LaBaff, seconded by Mr.
Hall. The motion is approved by unanimous vote.
Resolution IDA-15-09-26: Accepting FY2016 Tentative Budget. Mr. Kelly reports that the tentative budget requires
a 20-day comment period, and a final budget must be in placed 60-90 days prior to the beginning of the fiscal year.
The SLCIDA has budgeted revenue from the County at $400,000. Staffing costs as presented include one vacant
position and one pending retirement. Chairman Staples explains that an influx of revenue from projects in one year
can still result in a deficit the following year. Mr. LaBaff notes that projects do not generate a constant revenue stream,
as the SLCIDA “works on commission.”
Mr. Kelly goes on to note that he has received an inquiry from the County regarding SLCIDA programs and the value
for recent college bond issues. Mr. Kelly advises of his response to the County’s inquiry by noting that, in response
to one question, the SLCIDA has had no college bond issuances in 3 years and it is not swimming in fee revenue. He
adds that the County is not alone in having financial concerns, but believes that a positive, cooperative relationship
will help both the SLCIDA and the County. Mr. LaBaff speaks at length about the SLCIDA’s work and its positive
impact of jobs within the County, noting that generating jobs generates revenue and helps to decrease crime and drug
use. Mr. Denesha notes he fully recognizes the IDA’s impact had and will have on the County, but, like any business,
the County needs to know its return on investment (ROI). He goes on to say that the SLCIDA can and does help
generate the economy, but the County needs data, citing that he knows this data is hard to pull together. Mr. Denesha
continues, offering whatever support he can as he recognizes the importance of the SLCIDA’s work. Much is going
on in Star Lake. Chairman Staples notes that the SLCIDA works in many different ways with many different sectors,
but IDAs have restrictions on where its money can be spent. Mr. LaBaff adds that creating jobs with good, decent
living wages is important. Mr. Kelly reports that staff are working to prepare a comprehensive report to the County
with 10 years of data. Motion to approve Resolution IDA-15-09-26 by Mr. LaBaff, seconded by Mr. Hall. The motion
is approved by unanimous vote.
Resolution IDA-15-09-27: (i) Acknowledging the Public Hearing Held with Respect to the Ansen Corporation
Expansion Project; (i) Authorizing Financial Assistance to Ansen Corporation in Excess of $100,000 in the Form of
a Partial Real Property Tax Abatement through a Payment in Lieu of Tax Agreement (PILOT); (iii) Authorizing
Execution and Delivery by SLCIDA of a Lease Agreement, Leaseback Agreement, PILOT Agreement and Related
Documents with Respect to the Project. Mr. Kelly reminds Board members that they approved a Sales and Use Tax
Exemption for this project at last month’s meeting and authorized the holding of a public hearing. The hearing was
held on Tuesday, September 15, and Board members were provided with the minutes from the hearing. The Company
currently employs 200, and the project is expected to create 30 new jobs over the next three years. In addition, this
project’s PILOT will generate tax revenue on a building that has been in the ownership of OBPA and therefore tax
exempt. Motion to approve Resolution IDA-15-09-27 by Mr. LaBaff, seconded by Mr. Weekes. The motion is
approved by unanimous vote.
Resolution IDA-15-09-28: Authorizing the Merger of Union Graduate College into Clarkson University. Mr. Kelly
reminds Board members of the discussion on this at the August meeting, and adds that the action required the
authorization of the SLCIDA. Motion to approve Resolution IDA-15-09-29 by Mr. LaBaff, seconded by Mr. Weekes.
The motion is approved by unanimous vote.
Resolution LDC-15-09-18: Authorizing a Loan of Up to $450,000 to Ansen Corporation. Mr. Kelly reports that the
Company currently has 200 FTEs. The Company was a sole manufacturer for a Syracuse-based customer until the
customer introduced a new stadium lighting. The customer moved the manufacture of the stadium lighting out of
state as Ansen did not have the capacity to manufacture the lighting. Ansen looked at facilities in St. Lawrence County,
and was going to purchase a facility in Syracuse. SLCIDA-LDC worked with OBPA and the City of Ogdensburg to
put together a financial assistance package to enable Ansen to purchase a 40,000 sq. ft. facility in the OBPA Industrial
Park to facilitate the Company’s growth the stadium lighting contract. This loan will use RVRDA funds in partnership
with the Ogdensburg Growth Fund, and will take a first mortgage on the building. Ansen is investing $650,000 in
cash/equity into the project. Ansen wishes to make the building a showpiece for the stadium lighting. Mr. LaBaff
asks what wages are offered for the 20 jobs, to which Mr. Kelly notes that the Company has indicated a wage structure
averaging $20,600 per year, which calculates to about $10 per hour and includes Medical, Dental, Vision and Life
Insurance. Mr. LaBaff asks if any of the jobs are minimum wage jobs, and, if so, for how long does the employee
earn minimum wage? He asks if the employee or the employer pays the insurance, to which Mr. Kelly responds he
believes it a contribution of both employee and employer. Mr. LaBaff reminds the Board members that it is the policy
of the SLCIDA that jobs pay at least $10.00 per hour plus benefits. He adds that St. Lawrence County is not among
the highest paid in New York State, and the SLCIDA had a history of supporting and providing incentives for higher
wage jobs. Motion to approve Resolution LDC-15-09-18 by Mr. LaBaff, seconded by Mr. Hall. The motion is
approved by unanimous vote.
Resolution LDC-15-09-19: Authorizing Funds Through the St. Lawrence River Valley Redevelopment Agency. This
resolution authorizes the contract between the St. Lawrence River Valley Redevelopment Agency and the Town of
Massena Electric Department for the provision of management of oversight and expertise in the use and distribution
of its low-cost power now available at a contract price of $48,600 per year. The contract was approved by the RVRDA
at its July 2015 meeting. Mr. Hall asks as to how much of the $16 million in RVRDA funds remain, to which Mr.
Kelly reports that $10 million remain after 5 years. $2 million has been disbursed as loan financing, $750,000 in real
estate investment and the remaining in CDEIP and operating costs. Motion to approve Resolution LDC-15-09-19
by Mr. LaBaff, seconded by Mr. Weekes. The motion is approved by unanimous vote.
Resolution LDC-15-09-20: Accepting FY2016 Tentative Budget. Mr. Kelly reports that the budget includes RVRDA
administrative revenue and Mr. Plastino’s staff cost. Motion to approved Resolution LDC-15-09-20 by Mr. LaBaff,
seconded by Mr. Hall. The motion is approved by unanimous vote.
Resolution CDC-15-09-12: Accepting FY2016 Tentative Budget. Mr. Kelly reports that the SLCIDA-CDC’s budget
is relatively small. Motion to approved Resolution CDC-15-09-12 by Mr. Weekes, seconded by Mr. LaBaff. The
motion is approved by unanimous vote.
Resolution MIC-15-09-13: Accepting FY2016 Tentative Budget. Mr. Kelly reports that the Micro Program’s budget
is also relatively small, and bears costs for audits. The SLCLDC’s dissolution will cut costs associated with ABOrequired reports. Motion to approved Resolution MIC-15-09-13 by Mr. LaBaff, seconded by Mr. Hall. The motion is
approved by unanimous vote.
EXECUTIVE SESSION: LaBaff/McMahon motion for Executive Session at 9:52 AM to discuss the financial and
credit history of a particular corporation. The Board returns to Regular Session at 10:27 AM.
ADJOURNMENT: The meeting adjourns at 10:27 AM by unanimous consent.
Mr. Ernest J. LaBaff (Vice-Chairman)
[In the absence of Secretary Blevins]