St. Lawrence County Industrial Development Agency Mission Statement (Reviewed and Reaffirmed in Public Session on February 27, 2014) The mission of the St. Lawrence County Industrial Development Agency (the “SLCIDA”) 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 tax-reduction 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 – December 2013) As part of its Public Authority Law compliance program, the SLCIDA adopted a policy regarding the use of discretionary funds. Additionally, the St. Lawrence County Industrial Development Agency Local Development Corporation (the “SLCIDA-LDC”), the St. Lawrence County Industrial Development Agency Civic Development Corporation (the “SLCIDA-CDC”) and the St. Lawrence County Local Development Corporation (the “SLCLDC”) reviewed and reaffirmed policies regarding Property Disposition, 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 existing business customer locations were conducted throughout January as part of our ongoing general outreach program. 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 1,700 contacts site visits with over 400 existing and prospective firms and agencies through December 2013. The SLCIDA is working with NYS Empire State Development Corporation to detail the parameters of the SLCIDA’s $470,000 grant award through the Regional Economic Development Council (the “REDC”) 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. In September 2013 the SLCIDA awarded the bid to Tisdel Associates for $13,730. Staff continued its work with Kinney Drugs in 2013 as the Company worked to install fire protection system upgrades and make improvements to its facilities in Gouverneur. The Company’s request for reimbursement through the Community Development and Environmental Improvement (“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 extended the project’s Sales Tax Exemption status by 30 days, to July 31, 2013. Staff continued its work with Clearwater Paper as part of a $200,000 Consolidated Funding Application (“CFA”) award to repair the rail trestle for spur servicing the paper mill. The company revisited the project scope and cost estimates to determine the feasibility of moving forward with the project this year, and ultimately decided to formally decline the CFA award. The Newton Falls Rail’s $9,972,000 CFA award was modified to a two-phase project (Phase 1: $1,300,000 and Phase 2: $8,672,000). Phase 1 of the project involves preconstruction work: line clearing, permitting, rehabilitation evaluation, and specifications and bidding. While Phase 1 was not totally finished at the end of 2013, the line clearing is nearly complete and the ‘specification and bidding’ portion is being compiled for Phase 2 of the project. Once completed, Phase 2 of the project, which involves the construction and renovation of the line, will begin. New York State enacted reforms to General Municipal Law and the Public Authority Law in 2013 which affect how IDAs and Authorities provide and report on state and local sales and use tax exemption benefits. SLCIDA staff used the opportunity to create a comprehensive Sales and Use Tax Exemption benefit guide that clarifies and simplifies reporting instruction requirements of our business customers who receive the exemption benefit. 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 SLCIDA established a Fleet Management Policy and formally adopted an Employee Handbook. The life and achievements of former Chair and IDA Board Member, the late Walter V. Basmajian, were recognized by the SLCIDA in February 2013. For the third year in a row, the SLCIDA committed $25,000 in marketing funds to the FishCap project. 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 reports, along with the associated audited financial statements for 2012 were provided to the County Legislature. SLCIDA staff and board put in much time and many resources as part of its active support of the St. Lawrence Psychiatric Center Task Force: o Enacted resolutions in support of the continued operation of the Psychiatric Center. o 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. o SLCIDA Chief Executive Officer Patrick J. Kelly spoke to representatives of the State Senate and Assembly on September 17, 2013, opposing the OMH’s plan to relocate services provided at the St. Lawrence Psychiatric Center during a public hearing at Ogdensburg City Hall. o Along with fellow Task Force Members, met with Governor Cuomo and key members of his staff in Albany. o Researched, created, assembled and distributed over 100 binders and other support materials to elected officials in State and local government, NYS OMH and Governor Cuomo. 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 third year of a 3-year commitment under a January 2012 Memorandum of Understanding. The SLCIDA authorized financial assistance for High Peaks Winery, LLC in the form of a sales and use tax exemption, mortgage recording tax exemption, and Payment in Lieu of Tax agreement. The Company’s 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 robotic welder, key to the Company’s expansion. A Lease/Purchase and PILOT 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 PILOT documents were executed in March 2013. Marimac US, Inc. successfully completed the terms of the Lease and PILOT for the building within the Massena Industrial Park, and the SLCIDA has transferred ownership of the property to the Company. This property is now fully taxable. 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 was awarded funds through the USDA Rural Business Enterprise Grant Program to assist North Country Grown Cooperative, Inc. with the acquisition of cooling and refrigeration equipment. The SLCIDA will use the RBEG funds to acquire and lease the equipment to the Cooperative, which will pay at least 33% of the equipment’s value in lease payments over the life of the equipment. The SLCIDA received grant funding through the REDC’s Consolidated Funding Application, and staff have finalized the grant incentive proposal for the project to make repairs and improvements to Lots 18 and 19 within the Massena Industrial Park. These investments will enhance the marketability of the sites to new or expanding businesses. 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. As a result of the RFP process, the IDA cut its fleet in half. At the June 17, 20013 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 A. 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 Spring of 2014. At its July 2013 meeting, the SLCIDA terminated a Payment In Lieu of Taxes project with Newton Falls Fine Paper Company. The transfer was completed in early November. The REDC’s $87,500 grant award to the SLCIDA to complete a structural demolition assessment and engineering study for the former Jones & Laughlin Steel Corporation left a $87,500 funding gap. SLCIDA will continue to work with the Clifton-Fine Economic Development Corporation and DANC to secure the gap funding to meet the reimbursement requirement of the award. A revised annual financial disclosure form, based on input from the County’s Board of Ethics, was adopted for use by Board members, Officers and Employees. SLCIDA authorized a Sales and Use Tax Exemption benefit to ACCO Brands USA, LLC as part of ACCO’s project to modernize its distribution facility in Ogdensburg. The project is expected to add 30 jobs. St. Lawrence Brewing Company’s Lease Agreement was modified to incorporate certain leasehold improvements totaling slightly over $33,000. Hoosier Magnetics Inc.’s new employee and maintenance facility project received a Sales and Use Tax Exemption and a PILOT for the improved property. Potsdam Hotel Associates, LLC received a Sales and Use Tax Exemption benefit and a Mortgage Recording Tax Exemption benefit for their Potsdam Hampton Inn project. The project is expected to create 12 full time and 4 part time jobs. Additionally, the project is expected to generate $215,000 in real property taxes annually, in addition to sales tax revenue of almost $200,000. Staff familiarized itself with the just-announced Start Up New York legislation and its emerging regulations and conferred immediately with staff at SUNY Canton and SUNY Potsdam to determine how the new program could be combined with more traditional economic development t programs to develop profitable businesses in the County. One early result of the collaboration is that the SUNY schools have included SLCIDA and other properties owned by development agency partners in the list of “marquee properties” that they propose to include in their Start Up New York applications to New York State. The Merton Van Sant/Industrial Development Agency Scholarship Fund awarded scholarships to seven (7) Clarkson University students during the University’s 2013 Fiscal Year. The scholarship was established in 1992 and made possible through a donation by the IDA to assist full-time undergraduate students who reside in St. Lawrence County. The recipients hailed from Gouverneur (2), Heuvelton, Massena, Norwood, Ogdensburg, and Potsdam. The SLCIDA’s Lease/Purchase contract with the Canton-Potsdam Hospital for its building in the NATCO Research Park terminated as provided within the L/P agreement. SLCIDA relinquished title to the property to the Hospital. Board members approved its Budget for 2014, copies of which were forwarded to the Legislative Chair, County Treasurer, County Clerk, and Authorities Budget Office, and is available electronically at www.SLCIDA.com. 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 three (3) 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” 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 September 2013 EpTech, Ottawa Canadian Manufacturing Tech Show, Toronto October 2013 CenterState CEO Business Showcase, Syracuse SecureTech, Ottawa Panel Discussion, “Building the North Country’s Innovation Economy through Technology Commercialization and New Business Startups” RACER Trust Development Forum Women’s Business Bootcamp – SUNY Canton Matchmaker Event – SUNY Canton November 2013 APPrO 2013, Toronto St. Lawrence County Industrial Development Agency Additional Questions 1. Have the board members acknowledged that they have read and understood the mission of the public authority? ANS: Yes – the Board members reviewed and approved (by formal resolution) the mission statement and performance measures of the board. 2. Who has the power to appoint the management of the public authority? ANS: Management is appointed by the board members of the authority. 3. If the Board appoints management, do you have a policy you follow when appointing the management of the public authority? ANS: The board of the St. Lawrence County Industrial Development Agency appoints its Chief Executive Officer and Chief Financial Officer. The Chief Executive Officer appoints management and staff. 4. Briefly describe the role of the Board and the role of management in the implementation of the mission. ANS: The Board, with assistance of management, works to develop the authority’s mission, and evaluate the authority’s goals and performance. Management ensures that the Board’s mission and goals are carried out in a manner which achieves the intended public purpose - a process involving program evaluation, reporting, feedback and recommendation. 5. Has the Board acknowledged that they have read and understood the responses to each of these questions? ANS: The Board acknowledges its understanding of this document by formally approving the document in public session.