St. Lawrence County Industrial Development Agency Mission Statement (Reviewed and Reaffirmed in Public Session on January 31, 2013) The mission of the St. Lawrence County Industrial Development Agency is to promote, encourage, attract and develop job opportunities and economically sound commerce and industry in St. Lawrence County. To accomplish its mission, the IDA constructs and owns industrial sites and buildings, administers loan packaging and industrial revenue bond financing and provides a variety of taxreduction incentives. Performance Goals To create new employment opportunities for St. Lawrence County citizens through the attraction of or the creation of new businesses To create new employment opportunities for St. Lawrence County citizens through the expansion of existing businesses To retain existing employment opportunities To leverage the greatest level of private investment in St. Lawrence County businesses To educate County businesses, elected officials and community representatives regarding available economic development resources Act as a liaison with businesses and government to help coordinate economic development services and reduce bureaucracy Work cooperatively with area economic development agencies to market County assets and economic development resources to potential new or expanding businesses Ensure a transparent and accountable operation with responsibly-managed Agency assets 2013 Performance Review (January 2013 – June 2013) As part of its Public Authority Law compliance program, the SLCIDA adopted a policy regarding the use of discretionary funds. Additionally, the SLCIDA reviewed and reaffirmed policies regarding Property Disposition, and Investment, and Procurement. Performance documents for 2012 were also reviewed. The SLCIDA is providing space within the IDA’s Potsdam Commerce Park building to enable St. Lawrence County to store pallets of emergency food rations. Site visits to business customer locations were conducted throughout January as part of our annual reporting process to New York State. Additional site visits and interviews were conducted as part of our partnership and sponsorship responsibilities through the North Country Alliance Local Development Corporation. Staff have made approximately 855 site visits with over 300 existing and prospective firms and agencies through June 2013. The SLCIDA is working with NYS Empire State Development Corporation to detail the parameters of the IDA’s $470,000 grant award through the Regional Economic Development Council for the infrastructure needs of the Canton Industrial Park. On June 24, 2013, the SLCIDA released a Request for Proposals to solicit bids for design and engineering services for the extension of Commerce Lane, along with utilities infrastructure in the Park. Staff continue to work with Kinney Drugs as the Company works to install fire protection system upgrades and make improvements to its facilities in Gouverneur. The Company’s request for reimbursement through the CDEIP grant was received and processed at the beginning of 2013. The funds were originally awarded to the Village of Gouverneur and later transferred to Kinney Drugs and were being used to help offset costs associated the fire protection system upgrades project. Additionally, the SLCIDA has extended the project Sales Tax Exemption status by 30 days to July 31, 2013. Staff continue to work with Clearwater Paper as part of a $200,000 CFA award to repair the rail trestle for spur servicing the paper mill. The company is revisiting the project scope and cost estimates to determine the feasibility of moving forward with the project this year. The Newton Falls Rail’s $9,972,000 CFA award has been modified to a two-phase project (Phase 1: $1,300,000 and Phase 2: $8,672,000). Phase 1 of the project involves pre-construction work: line clearing, permitting, rehabilitation evaluation and specifications and bidding. Phase 2 of the project involves the construction and renovation of the line. New York State enacted reforms to General Municipal Law and the Public Authorities Law in 2013 which affect how IDAs and Authorities provide and report on state and local sales and use tax exemption benefits. IDA staff are updating relative agreements to reflect these changes. A mortgage modification agreement with NBT was executed for the Rushton Place project. The transaction gives Rushton Place a more affordable debt service, and thereby maximizes the Company’s resources. No additional tax assistance was requested. Staff worked with representatives of the County’s Casino Task Force to help promote the benefits of a St. Lawrence County location for one of the Governor’s proposed casinos. Shortly thereafter, Governor Cuomo and the St. Regis Mohawk Tribe reached accord regarding the Tribe’s exclusivity rights in eight northern counties (including St. Lawrence) in New York State. The New York State Small Business Development Center will receive funding of $7,500 per year for each of two years from the St. Lawrence County Local Development Corporation for the provision of business plan development and other services. The SLCIDA established a Fleet Management Policy and formally adopted an Employee Handbook The life and achievements of former Chair and IDA Board Member, Walter V. Basmajian, were recognized by the SLCIDA in February 2013. The SLCIDA’s commitment to the FishCap project was completed in 2013. The SLCIDA and the County accepted a contract amendment for the provision of economic development services to St. Lawrence County. The contract decreased the payment due for 2013 from $425,000 to $400,000, and extends the contract through 2015 at a rate of $400,000 per year. 2012 Audited Financial Statements and the 2012 Annual Reports to the NYS Authorities Budget Office were completed in March of 2013. Copies of the report, along with the associated audited financial statements for 2012 were provided to the County Legislature. During a joint meeting with the St. Lawrence River Valley Redevelopment Agency, the SLCIDA approved a resolution in support for the continued operation of the St. Lawrence Psychiatric Center. As a member of the St. Lawrence Psychiatric Center Task Force, the SLCIDA provided significant assistance with the development and production of project binders for presentation to the New York State Office of Mental Health. SLCIDA Chief Executive Officer Patrick J. Kelly and IDA Board Member, Lynn Blevins, spoke to representatives from OMH on May 15, 2013 during the OMH’s Listening Tour, held to provide an opportunity for public comment regarding OMH’s plans for providing services. IDA Board Member Mark Hall also attended the event. Also during the RVRDA/SLCIDA joint meeting, funding through the Community Development and Environmental Improvement Program was authorized for the following: o o o o o o o o o o o City of Ogdensburg: $28,750 loan award to replace 175-watt metal halide lighting, located at various locations throughout the community. St. Lawrence County Chamber of Commerce: $25,000 grant awarded as year 3 of a 3year commitment to the FishCap project. St. Lawrence County Fire Training Facility: $60,000 grant award for Phase 2 of their live fire training facility project, which includes purchase of materials and labor necessary for the construction of a 22’x14’, single-story concrete slab-on-grade structure. St. Lawrence County (Highway Department) Trails Project: $30,000 grant award for Phase 1 of the Trails Project. Specifically, for costs relating to the creation and purchase of kiosks, gates, signage, manuals and safety brochures. St. Lawrence Power & Equipment Museum: $43,342 grant award to connect the Museum’s sewer system to the Town of Madrid Wastewater Treatment Plant. St. Lawrence River Walleye Association: $20,000 grant award for purchases associated with site improvements and the initiation of a youth education program. Town of Louisville: $40,000 grant award and $16,000 loan funding for renovations to the Town’s Community Room, located within the Municipal Office Building. Town of Madrid: $50,000 grant award for the demolition and refurbishment of deteriorated concrete on dam abutments on the North end of the spillway. Town of Massena: $75,000 grant award and $75,000 loan funding for repair and restoration of the Town Hall façade and front steps. Town of Waddington: $30,000 grant award to improve accessibility and enable adaptive re-use of the historic Old Town Hall. Village of Waddington: $45,000 grant award for the 2013 Bassmaster Elite Series St. Lawrence River Showdown. The SLCIDA authorized a commitment of funds to Drum Country Business Regional Marketing Initiative. Economic development agencies from Jefferson, Lewis and St. Lawrence Counties have undertaken this collaborative, regional marketing initiative for business attraction purposes. This $5,000 commitment is the final year of a 3-year commitment under a January 2012 Memorandum of Understanding. Financial assistance was authorized for High Peaks Winery, LLC in the form of a sales and use tax exemption, mortgage recording tax exemption, PILOT and low-interest loan. The Company is expansion project involves the construction of a 2-story (3,000 sq. ft) facility to house a wine production operation. The SLCIDA authorized assistance to Fockler Industries, LLC, as the company acquires a robot welder, key to the Company’s expansion. The expansion also included the leasing of approximately 9,000 sq. ft of space within the building on Lot 19 in the Massena Industrial Park. A Lease/Purchase Agreement between the SLCIDA and OpTech Environmental Services was executed for the purchase of the building located on Lot 20 within the Massena Industrial Park. AJ Missert, Inc. received approval from the New York State Liquor Authority to execute PILOT documents for the Company’s warehouse expansion project. The documents were executed in March 2013. Civic Development Fund loan funding was authorized for the St. Lawrence County Fire Training Facility, Inc. The funding will assist with completing Phase 3 of the Facility’s project totaling about $290,000. $200,000 in grant funds have been committed by Senator Ritchie and Assemblywoman Russell through DASNY. The SLCIDA-CDC will lend $90,000 plus any unpaid capital interest on $290,000 in bridge financing. Legal action against Zero Point Technology was settled for claims relative to the Potsdam Commerce Park building. The $17,250 settlement also releases Zero Point from any future claims/actions by the SLCIDA. The SLCIDA is applying for funds through the USDA Rural Business Enterprise Grant Program to assist with the acquisition of cooling and refrigeration equipment North Country Grown Cooperative, Inc. If approved by USDA, the SLCIDA will lease the equipment to the Cooperative, who will pay at least 33% of the equipment’s value in lease payments over the life of the equipment. Staff have finalized the grant incentive proposal for repairs and improvements for Lots 18 and 19 within the Massena Industrial Park. In addition, the SLRVRA allocated $80,000 of its economic development funds for repairs and improvements to the buildings. These investments will enhance the marketability of the sites to new or expanding businesses. SLCIDA is expected to authorize execution of an agreement with Empire State Development relative to the IDA’s CFA award for the J&L project. The funds will be used toward a structural demolition assessment and engineering study. SLCIDA staff continue to actively participate in the Regional Economic Development Council process as evidenced by memberships in the REDC’s Opportunity Agenda Working Group, the Priority Project Implementation Committee, the Workforce Committee, the Transportation & Infrastructure Committee, the Canadian Connection Committee, and the Small Business/Community Development Committee. The SLCIDA released a Request for Proposals for the purchase of 1 new vehicle and disposal of 3 older vehicles. At the conclusion of the RFP process, the IDA will have cut its fleet in half. The SLCIDA held its Annual Meeting on June 17, 2013. Brian W. Staples was reelected Chairman, Ernest J. LaBaff was reelected Vice-Chairman, and Lynn Blevins was reelected Secretary. Patrick J. Kelly was reappointed as Chief Executive Officer and Thomas J. Plastino was reappointed Chief Financial Officer. The law firm of Silver & Collins was retained as Legal Counsel. Also, at its Annual Meeting, the SLCIDA named its first building within the Canton Industrial Park the “Ernest J. LaBaff Industrial Building.” A formal building dedication will be held in the Fall. The SLCIDA also continued aggressive marketing efforts, as follows: o Outreach of select Canadian businesses in Ontario and Quebec to generate interest and possible expansion into St. Lawrence County through trade shows, events, advertising and the mailing of approximately 7,000 marketing pieces. Additionally, 18,000 insert copies will be distributed in the Ontario Industrial Magazine highlighting power advantages & available site/buildings. o Focus on power advantages included continued work with Ontario power groups and Massena Electric Department to develop a power initiative to attract Canadian companies to St. Lawrence County. In February, a presentation was made to the Association of Major Power Consumers of Ontario. o Coordination of a Countywide Economic Developers’ Marketing meeting to ensure coordination of Countywide marketing efforts, strategic objectives and general operating activities of the local, county and regional developers. o Maintained memberships in Canadian trade organizations to facilitate access to events and to maintain key contacts with Canadian companies and multiplier organizations. o Advertising and media promotion pieces created and utilized, including placements in Drum Country Business, North Country This Week, Watertown Daily Times, and St. Lawrence County Newspapers o Sponsorship, coordination and/or attendance at 18 trade shows/marketing events in Northern New York and Canada: February 2013 Center for Entrepreneurship at Clarkson University – My Small Business 101 Ottawa Business Summit Ottawa Chamber of Commerce, “South of the 49th – Expanding your Business Horizon: A Comprehensive Seminar on Doing Business and Investing in the U.S.” March 2013 Center for Entrepreneurship at Clarkson University – My Small Business 101 AmCham Chamber of Commerce, “Building Strong Partnerships in U.S.– Canada Trade” FABTECH2012, Canadian Manufacturing Week SLC Municipal Roundtable (USDA) April 2013 EpTech, Montreal Women’s Business Bootcamp, SUNY Canton North Country Symposium, St. Lawrence University Advanced Manufacturing Expo(AMEXPO) - Montreal North Country Business Expo/The Really Big Show, Potsdam Canadian Environmental conference & Tradeshow (CANECT), Mississaugua International Retail and Food Service Industry Tradeshow (SIAL 2013), Toronto May 2013 PACKEX, Toronto CANSEC (Canadian Defense Security Tradeshow), Ottawa June 2013 North Country Tech Symposium & IT Expo, CITEC at Clarkson North Country Clean Energy Conference, ANCA in Lake Placid