ST. LAWRENCE COUNTY INDUSTRIAL DEVELOPMENT AGENCY
MINUTES OF MEETING
August 12, 2009
CALL TO ORDER: Chairman Brian W. Staples called to order a meeting of the St. Lawrence County
Industrial Development Agency at 8:04 AM at the Best Western, Canton.
ROLL CALL:
Blevins
LaBaff
Morrill
Weekes
Absent
Absent
Present
Present
Greenwood
McMahon
Staples
Present
Present
Present
Others Present: IDA Staff Raymond Fountain Kimberly Gilbert, Richard Williams and Natalie
Sweatland; William R. Small., Esq.
MINUTES: Morrill/Greenwood move to accept the minutes of the June 17, 2009 meeting.
PUBLIC NOTICE: Public notifications sent July 24, 2009 to, at a minimum: St. Lawrence County’s
additional local media sources and websites.
PUBLIC COMMENT: None
FINANCIAL REPORT: Reports ending May 2009 and June 2009 are filed for audit without comment.
Ms. Gilbert reports briefly on those borrowers behind in their repayments.
COMMITTEE REPORT: Jon Greenwood reported that the Audit Committee met August 6 to review
bids for audit services. One entity did not meet the standards set forth in the RFP. The Committee
recommends Hooper & VanHouse.
STAFF REPORT: Ray Fountain reports on the following:
ƒ General Motors: Articles from the Detroit Free Press are presented to the membership. Chairman
Staples questions whether the Agency should tour the property. Mr. Morrill suggests that a tour
of the J&L property should also be arranged. Mr. Fountain will handle. Mr. McMahon noted
that, in response to a letter sent by the GM Task Force to the EPA, the EPA has in turn asked
about the intended use(s) of the plant. He noted that the EPA appears motivated, but it wants to
know what the community wants to do with it. There is emphasis on a need to determine a vision
for the plant’s future: e.g. Harbor? Commercial? Multi-unit industrial?
ƒ Newton Falls Railroad: The application for American Recovery and Reinvestment Act (ARRA)
funding for the rehabilitation of the Newton Falls rail has been declined. The State cited
“insufficient resources” as their reason for turning down the application. The Agency has
forwarded the DOT’s letter to the State representatives, asking for their continued
assistance/guidance with the project. Staff are working on drafting a lease agreement with the
Mohawk, Adirondack & Northern Rail Road (MANRR), the entity that formerly operated the rail
line. Mr. Fountain noted that MANRR still owes a significant amount in back taxes
(approximately $300,000) to the local jurisdictions and the Agency would require some type of
guarantee that this issue is resolved.
ƒ J&L Mine: Harris Beach attorney Justin Miller has provided a memorandum regarding the
creation of an entity to address the environmental issues at the mine. Mr. Miller and Gary
Bowitch (attorney retained by the County) agree that the proposed actions may be appropriate.
Mr. Fountain will share the memo with other community members (citing Clifton-Fine Economic
Development Corporation).
ƒ River Valley Redevelopment: A brief on the uses of the RVRDA funds is in the works. Mr.
McMahon noted that once the documents are in place and in a structure that NYPA is
comfortable with, the MOU will be presented to NYPA’s Trustees (probably September 2009) for
their approval. Mr. Morrill noted that the Operations Committee, at its August 10 meeting, asked
Bob McNeil to update the Legislature on the status of the project. He [Morrill] asks that someone
contact Bob to give him an update.
ƒ
PAAA Training: Mrs. Sweatland reminded the members that the annual PAAA continuous
training session is scheduled for October 20th. Justin Miller of Harris Beach will be presenting
the training.
OLD BUSINESS: None
NEW BUSINESS:
ƒ Resolution “Authorizing a Three-Year Audit Services Contract” Greenwood/Weekes move to
accept the recommendation of the Audit Committee and accept the bid of Hooper & VanHouse,
CPA. Mr. Morrill inquires as to how long Hooper & VanHouse have been the IDA’s auditors
and the affect of the service time as it pertains to the Public Authorities Accountability Act
(PAAA). Staff are unable to provide a definite answer as to the time Hooper & VanHouse have
been the IDA’s auditor. Mrs. Sweatland notes that the auditing entity may remain the same, but
the lead auditor must change every five (5) years. Resolution passes unanimously.
ƒ Resolution “Finding that the Purchase of 6182 US Highway 11, Canton NY by Frazer
Computing, Inc will Not Have a Significant Effect on the Environment” Greenwood/McMahon.
Mr. Staples abstains from discussion and voting, citing that Mr. Frazer is a client of his CPA firm.
Mr. Williams provides a brief history, noting that the company had asked for a letter in support of
its application for funds that the State’s Upstate Regional Blueprint Fund. The company is asking
for no financial assistance at this time. The project is expected to create additional jobs. In
response to a question from Mr. Morrill, Mr. Williams reports that the jobs are all in St. Lawrence
County. The resolution passes with four (4) “aye” votes (Morrill, McMahon, Weekes,
Greenwood) and one (1) abstention (Staples).
ƒ Resolution “Accepting the Application of Rushton Place, LLC with Respect to a Certain Project
(as Described); Authorizing a Public Hearing with Respect to the Project; Adopting Findings
Pursuant to SEQRA in Relation to the Project; Describing the Forms of Financial Assistance
Being Contemplated by the Agency with Respect to the Project” Morrill/Weekes. Mr. Fountain
explains that this is not a manufacturing project and therefore does not fit the PILOT guidelines
adopted by the Agency. In this case, the affected taxing jurisdictions (ATJs) must each approve
the project in order for it to be eligible for PILOT benefits. The ATJs and the developer met with
the Agency last week and all appear to be favor of the project. Environmentally, the case is
considered “closed dirty” by the State. Closed Dirty property can be reused for commercial
property or a parking lot, but it cannot be residential. The developers plan on making offices on
the first floor and condos on the second floor. Once a condominium is sold, the PILOT benefits
conferred upon that condo will terminate. Mr. Staples notes that the Agency is starting down a
different path than it has taken in the past, and it needs to know what its doing. It is beneficial to
the community. Mr. Fountain notes that the project will put an eyesore back into productive use.
The new owners inherit the “closed dirty” status. Resolution passes unanimously.
ƒ Resolution “Supporting Newton Falls Fine Paper Co., LLC Application for Funding”
Weekes/Greenwood. Mr. Morrill abstains from discussion and voting, citing his employment by
Newton Falls Fine Paper Co., LLC. Mr. Fountain explains that the application is through the
State’s Upstate Regional Blueprint Fund. Empire State Development has reviewed the
company’s application and said an application through the business model track may not be the
best avenue to take, as the company has not been in business that long and it has yet to make a
profit. Empire State Development recommends that the IDA submit the application under the
Infrastructure track if the business model track is not feasible. The project involves using wood
chips for fuel, thereby eliminating fuel oil consumption. The resolution passes with four (4) aye
votes (McMahon, Weekes, Greenwood, Staples) and one (1) abstention (Morrill).
EXECUTIVE SESSION: Weekes/Morrill motion for Executive Session at 9:00 AM to discuss litigation
issues with two separate companies. Return to Regular Session at 9:20 AM (Morrill/Weekes).
Mr. Fountain reports that Patrick Kelly has accepted the offer authorized by the Agency and will start on
August 24. Mr. Morrill asks about how the Agency’s plan may affect the County’s Office of Economic
Development budget for 2010. Mr. Fountain noted he has a budget meeting with Karen St. Hilaire at
10:30 AM today. Ms. St. Hilaire has indicated she wants to see the Agency’s plan. Mr. Fountain noted
that he believes Mr. Blevins recommended to her previously that representatives of both the Legislature
and the Agency meet to discuss. He [Ray] will reaffirm this at the next Board meeting.
ADJOURNMENT:
consent.
Morrill/Greenwood motion to adjourn at 9:25 AM.
Adjourned by unanimous
(Mr.) Lynn Blevins, Secretary