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 October 22, 2015 ROLL CALL: Blevins............................... Absent Hall .................................... Present McMahon ......................... Present Weekes .............................. Present Burke ............................ LaBaff ........................... Staples ........................... Present Present Present Others Present: SLCIDA Staff (Patrick Kelly, Thomas Plastino, Richard Williams, and Lori Sibley); SLCIDA Attorney Andrew Silver, Mayor Ronald McDougal (Village of Gouverneur) and Bill Wilmont 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 3:06 PM at the IDA office, Ernest J. LaBaff Industrial Building, Canton. PUBLIC NOTICE: Public notifications sent October 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: Mayor McDougal expresses his concerns with the St. Lawrence County budget as it relates to cutting SLCIDA funding in half. The Mayor applauds the efforts of the SLCIDA, particularly for the assistance the IDA provides to the greater Gouverneur area. He thanks the SLCIDA for assistance provided to the former E.J. Noble Hospital and asks for the IDA’s continued support as efforts are underway to help develop and improve the new Gouverneur Hospital. APPROVAL OF MINUTES: Motion to accept the minutes of the September 24, 2015 meeting by Mr. LaBaff, seconded by Mr. Weekes. Carried unanimously. FINANCIAL REPORTS: Mr. Plastino reviews the financial reports. He adds that breakeven is expected with expenditures and revenues by year end. McMahon/Weekes motion to accept the September 2015 Financial Report. Carried unanimously. REPORTS OF COMMITTEES: Mr. Plastino notes that the Audit and Finance Committee met last month and a recommendation for Audit Services for FY 2015 – 2017 will be presented to the board during the new business portion of today’s meeting. STAFF REPORT: Mr. Kelly reports on the following: Ansen Corporation. A combined financing package in the amount of $450,000 has been approved to Ansen Corporation consisting of $300,000 in financing from the RVRDA in partnership with $150,000 from the Ogdensburg Growth Fund. Star Mountain. Discussions continue for low-cost power and financing options for the pending acquisition of the St. Lawrence Zinc mines. We will also work on a training package with the New York State Department of Labor to coordinate with the St. Lawrence County One Stop Career Center. Over 100 jobs could be created as a result of this project. Mr. Staples asks Mr. Kelly about the timeframe expected for this type of project. Mr. Kelly notes the first step involves the actual acquisition with further discussion relative to operations to follow. Mr. Kelly expects numerous hours of work will be put toward a project of this size and that it will take months to come together. Canton Park Road and Massena Buildings. We continue to await reimbursement from New York State of approximately $530,000 on the two projects. The transfer documents for the Canton Park Road have been executed. A three-year lease agreement will be signed by Fockler Industries for use of the Trade Road facility in Massena. Kent Farms. A local food co-op exchange with growers is interested in bringing produce to a location in Potsdam where there is a loading dock available for use. There is expected to be approximately 30-40 customers arriving to pick up produce on nine different occasions over the winter months. As long as the Potsdam Commerce Building is vacant, the SLCIDA offered a proposal for its building space in Potsdam on a per use basis. Newton Falls Rail. Mr. Kelly believes that ESD will approve the $8.6 million portion of phase 2 of the rail rehabilitation project in November and hold a public hearing in December. J&L Mine. At the kickoff that was held last week in Star Lake, SLCIDA staff met with the St. Lawrence County Legislators and discussed the property transfer. DANC executed a services agreement with SLCIDA for assistance in remediation of the site. Marketing. The SLCIDA co-sponsored an Expand to the U.S. event with OBPA, the U.S. Embassy and the American Chamber of Commerce in Canada (AmCham) on October 7th at the Ogdensburg Dobisky Center. Approximately 40 Canadian company representatives attended the event, proving to be one of the highest number in attendance when compared to other events of this kind. The level of interest of the attendees was very promising. County Budget. Mr. Kelly references a five-year Impact and Return on Investment Report he sent to the County Board of Legislators last weekend as a follow-up to requests made by several Legislators in June. Mr. Kelly reports that staff have put a significant amount of time in collecting this information. The SLCIDA and affiliated organizations reported 120 projects totaling $260 million in activities including the provision of IDA incentives to projects, loan financing, civic facility bond issuances, grant awards, incumbent and new worker training funding, and infrastructure and building projects. The county saw a direct increase of 428 jobs as a result of these projects. Discussion ensues around the Impact and ROI Report as Mr. Kelly references the increase in annual payroll of $22.4 million in the County, 333,571 square feet of new building space constructed throughout the County, $8.7 million in direct IDA, IDA-LDC, IDA-CDC and SLCLDC investment or loan funds provided to projects, over $2 million in grant funds administered by the IDA and its related organizations, $10.8 million in grants secured or administered, $31.1 million in grants leveraged for projects, $21.9 million in increased assessed property values, and an increase of $220,846 in annual sales tax collected by firms supported by IDA projects. Mr. Kelly adds that a copy of this report will be provided to all companies listed in the report. Mr. Hall arrives at 3:38 PM NEW BUSINESS: Resolution IDA-15-10-29: Authorizing A Three-Year Audit Services Contract. Resolution LDC-15-10-21: Authorizing A Three-Year Audit Services Contract. Resolution CDC-15-10-13: Authorizing A Three-Year Audit Services Contract. Resolution MIC-15-10-14: Authorizing A Three-Year Audit Services Contract. Mr. Hall spoke on behalf of the Audit and Finance Committee and noted that of the three bids received, the analysis shows Pinto, Mucenski, Hooper and VanHouse showed the most favorable against all the alternatives considered. While the total cost of their bid was marginally higher (approximately $1,000 over the three (3) years than the lowest bid), their per hour costs for additional work, if needed, was lower than the next lowest bid. The board reviewed and discussed the bid proposals and then motion to approve Resolutions IDA-15-10-29; LDC-15-10-21; CDC-15-10-13; MIC-15-10-14 by Mr. LaBaff, seconded by Mr. Weekes. The motion is approved by unanimous vote. Resolution IDA-15-10-30: Authorizing Revision of Travel and Miscellaneous Expense Reimbursement Policy. Mr. Kelly reports that the Governance Committee met and determined certain issues such as tips, fees, alcohol purchases and tax exempt forms need clarification. Motion to approve Resolution IDA-15-10-30 by Mr. Weekes, seconded by Mr. McMahon. The motion is approved by unanimous vote. Resolution IDA-15-10-31: Authorizing Amendments to the Bylaws of the SLCIDA. Mr. Kelly adds that in a recent meeting, the Governance Committee decided to update or revise certain provisions of the bylaws as they relate to PARIS training for board members, clarification of majority voting and quorums. Motion to approve Resolution IDA-15-10-31 by Mr. LaBaff, seconded by Mr. Burke. The motion is approved by unanimous vote. Resolution IDA-15-10-32: Authorizing Amendment of Existing Industrial Building Lease for the St. Lawrence Brewing Co. Inc. Project. Mr. Williams notes that restructuring the lease will hold at this lease rate for another year. He adds that the SLCIDA acquired the filtration system and in collaboration with the St. Lawrence Brewing Company, the IDA also acquired the canning system as collateral (a value of $55,000 which was paid for by St. Lawrence Brewing Company) as part of the building and equipment lease agreement. Motion to approve Resolution IDA-15-10-32 by Mr. McMahon, seconded by Mr. Weekes. The motion is approved by unanimous vote. Resolution LDC-15-10-22: Authorizing Amendments to the Bylaws of the SLCIDALDC. Motion to discuss the resolution by Mr. Hall, seconded by Mr. Weekes. Section 1 in Article II, the members decide to eliminate the requirement which states The SLCIDA-LDC may have up to eighteen (18) additional members, who shall be appointed by and serve solely at the pleasure of the SLCIDA-LDC. The amended Resolution LDC-15-10-22 was motioned by Mr. Hall, seconded by Mr. LaBaff. The motion is approved by unanimous vote. Resolution MIC-15-10-15. Approving and Adopting FY2016 Budget and Authorizing CEO to Make Line Item Changes. Mr. Kelly explains that the steps for the SLC LDC Microenterprise Fund to dissolve and to be absorbed by the SLCIDA-LDC by the end of FY2015 is on track, however a draft budget still needs to be approved in case there is some unforeseen circumstance that delays the process. Motion to approve Resolution MIC-15-10-15 by Mr. LaBaff, seconded by Mr. Weekes. The motion is approved by unanimous vote. Resolution CDC-15-10-14. Approving and Adopting FY2016 Budget and Authorizing CEO to Make Line Item Changes. Motion to approve Resolution IDA-15-10-14 by Mr. McMahon, seconded by Mr. Hall. The motion is approved by unanimous vote. Resolution LDC-15-10-23. Approving and Adopting FY2016 Budget and Authorizing CEO to Make Line Item Changes. Motion to approve Resolution IDA-15-10-23 by Mr. LaBaff, seconded by Mr. Weekes. The motion is approved by unanimous vote. EXECUTIVE SESSION: McMahon/Hall motion for Executive Session at 3:57 PM to discuss the financial and credit history of a particular corporation and personnel matters. A motion for the Board to return to Regular Session at 4:17 PM is made by Mr. LaBaff and seconded by Mr. Weekes. Resolution IDA-15-10-33. Approving and Adopting FY2016 Budget and Authorizing CEO to Make Line Item Changes. Modifications from the draft budget to the final budget include removal of capital expense for company vehicle, reduction of Administrative Assistant position, and reduction in revenue received from the County. Motion to approve Resolution IDA-15-10-33 by Mr. Weekes, seconded by Mr. Hall. The motion is approved by unanimous vote. Resolution IDA-15-10-34. Amending Resolution for the Corning Canton Plant Expansion Project. Motion to approve Resolution IDA-15-10-34 by Mr. LaBaff, seconded by Mr. Weekes. The motion is approved by unanimous vote. ADJOURNMENT: A motion for meeting to adjourn is made at 4:30 PM by Mr. McMahon, seconded by Mr. Hall. The motion is approved by unanimous consent. Mr. Ernest J. LaBaff (Vice President)