ST. LAWRENCE COUNTY INDUSTRIAL DEVELOPMENT AGENCY
MINUTES OF MEETING
September 3, 2009
CALL TO ORDER: Vice-Chairman Ernest LaBaff called to order a meeting of the St. Lawrence County
Industrial Development Agency at 9:06 AM at the Wanakena Ranger School, Wanakena, NY.
ROLL CALL:
Blevins
LaBaff
Morrill
Weekes
Present
Present
Present
Present
Greenwood
McMahon
Staples
Present
Present
Absent
Others Present: IDA Staff Raymond Fountain, Patrick Kelly, Richard Williams and Natalie Sweatland;
Timothy Frateschi (Harris Beach, LLC); Donald Peck (St. Lawrence County Legislature); Chris
Westbrook (Ranger School [meeting host] / Clifton Fine Economic Development Corporation [CFEDC];
Phil Bryant (Star Lake); Robert Meredith (CFEDC); Bob Snider (Town of Clifton); Elizabeth Cooper
(Town of Fine); Mark Glendenning (Wanakena); Bill Jesmore (DEC); Levi Durham (CFEDC).
Roundtable introductions made at the request of the Vice-Chairman.
MINUTES: Weekes/Blevins and Weekes/Morrill move to accept the minutes of the July 29, 2009 and
August 12, 2009 meetings, respectively.
PUBLIC NOTICE: Public notifications sent August 25, 2009 to, at a minimum: St. Lawrence County’s
additional local media sources and websites.
PUBLIC COMMENT: None
FINANCIAL REPORT: Report ending July 2009 is filed for audit without comment.
COMMITTEE REPORT: None
STAFF REPORT: Ray Fountain reports on the following:
ƒ General Motors: The firm hired to dispose of “Old” GM’s assets cancelled their meeting with
local representatives. No reschedule date has yet been set. There are no employees at the plant.
St. Lawrence Food: The IDA was notified that its recent request to be included in the company’s
bankruptcy proceedings (The IDA had not been notified about the original proceedings.) had been
accepted. The law firm of Harris Beach is working with Toobro to accept the GMEDF’s lien and
make payments. Litigation is ongoing and Counsel has recommended that it would be cheaper
and more efficient to watch everything from the sidelines at this point.
ƒ River Valley Redevelopment Agency: Mr. Kelly reported on recent meetings with Mr.
McMahon and Attorney Eric Gustafson, and on conference calls with NYPA. The goal of the
discussions is to formalize the MOU for NYPA’s review. While possible, it is unlikely that the
document will be ready for formal action at the October NYPA Board of Trustees meeting. A
draft document should be available today. Once reconciled it will be forwarded to NYPA for
their review. The IDA’s next step is to review the draft document.
ƒ Newton Falls Fine Paper Co., LLC: Mr. Fountain and Mr. Williams attended a meeting in
Watertown yesterday. Newton Falls detailed their plan for future profitability, especially through
the cutting of energy costs. Federal programs that could assist the mill require a 51% US
ownership. Program representatives are investigating the ownership issue.
ƒ Administrative/Staffing Options: Mr. Fountain referred members to the letter in the handout
packet, written by Chairman Staples requesting a formal meeting with the County to discuss the
issue. Also included in the packet is a document Mr. Morrill forwarded to the Legislators,
reflecting his ideas on the separation issue. Mr. Morrill noted he is hoping to get the discussion
moving. Meeting attendee Donald Peck (St. Lawrence County Legislature) noted that a date
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scheduled by the County Administrator had later been unscheduled. He will work to finalize a
time and day for a meeting. Mr. Greenwood motions for the Vice-Chairman to appoint a
committee to meet with the County. Weekes seconds. The Vice-Chairman appoints himself, Mr.
Staples and Mr. Blevins, along with CEO Fountain, to serve on this Committee. Unanimous.
Canton Light Industrial Park: Mr. Fountain refers to the correspondence from Empire State
Development, denying the IDA’s request for funding for the Canton Light Industrial Park. This
request, along with the request for funds to assist in the Newton Falls Rail rehabilitation, has been
denied. No word has yet to be received on the IDA’s request for assistance with the Gouverneur
Industrial Park. Mr. Fountain noted that, as with the rail denial, he will outreach State
representatives for their support of the Canton Industrial Park project.
Jones & Laughlin Mine: Mr. Fountain notes that Mr. Mark Hall (Supervisor, Town of Fine) will
host a tour of the mine after the meeting. Mr. Morrill invites attendees to a tour of Newton Falls
Fine Paper Co., LLC. Mr. Fountain then introduces Timothy Frateschi, Esq. of the law firm of
Harris Beach, PLLC.
Mr. Frateschi provides a brief explanation of local development corporations (LDC’s). LDCs are
authorized for the purpose of economic development on behalf of a municipality or county to
relieve the municipality or county of certain burdens. This keeps government one step removed.
Municipalities/counties cannot directly give gifts to private companies – that is why Empire State
Development, IDAs, LDCs, etc. were created. Additionally, an LDC can accept and receive
property/interest in property from a municipality/county. A municipality that does not want to
hold property can transfer it to an entity for development to limit the responsibility/liability for
environmental concerns. Formation of an LDC is relatively simple. Mr. Fountain notes that the
IDA has previously authorized the creation of an LDC (hereinafter “X-LDC”) when the time is
appropriate for such action. The process to create an LDC is about 10 days and it would cost
between $3,000 and $4,000. The LDC could have a small board (between 5 and 7 members)
consisting of representatives of the IDA, the County and the community.
Bill Jesmore (NYSDEC) provides a brief explanation of the State’s Environmental Restoration
Program (ERP). The State’s Oil Spill Program fund (OSP) is funded through the tax on
petroleum. The Comptroller spends and recovers the funds. The DEC cleans the spill, regardless
of the cost. The Comptroller then forwards the invoices to the offices of the Attorney General
(AG), which then tries to recover 100% of the cost. The AG would most likely not attempt to
collect from a municipality/county. LTV paid $1MM toward the J&L recovery. Some of that
money may still be available (Comptroller has actual figure). The AG could go after a remote
entity (e.g. X-LDC) whose only asset is the property, but it would not get any money as there is
no money to get.
As far as liability with future owners, the ERP gives absolution. A technical compliance letter is
provided after the record of decision (ROD) is issued, absolving the owner of liability. Those that
take ownership of the parcel(s) must ensure that the ROD is enforced.
Mr. Jesmore then provided an overview of the status of the contamination at the site. What
remains is approximately 1 acre (300,000 gal) of fuel oil from the spill; one small, PCBcontaminated area, and the mercury switches. The fuel oil is what remains of the original spill of
millions of gallons of fuel oil onto the site. Further remediation of the oil spill is still required
under the OSP. The DEC must maintain a presence unless funds are available from another
program. In addition, the issue of asbestos and lead remains. The IDA previously paid for
asbestos abatement. The building is in decay and the asbestos is now “friable,” which increases
costs due to remediation and transportation.
X-LDC would be a not-for-profit. It would not be considered a public authority, but would be
subject to reporting requirements, record keeping requirements and requirements of the Public
Authorities Accountability Act. Mr. Morrill noted that the advantage of creating X-LDC is that it
does not have deep pockets and it puts control of the issue into local hands. In response to a
question from Mr. McMahon, the IDA’s membership on this X-LDC would not be a liability
issue.
X-LDC would have bylaws. (Mr. Frateschi notes that he could provide draft bylaws for review.).
Members serving on the X-LDC’s board would not be personally liable for the environmental
issues, but Mr. Frateschi suggests that the entity should get some type of Directors/Officers
insurance. Anyone can create an LDC. If the purpose of X-LDC is to hold the land, it would
make sense for the County to create the entity.
The State has reversed its original policy on subdividing contaminated property. The State now
encourages subdivision.
The next step is to form the LDC. Harris Beach will await direction from Mr. Bowitch, the
County and the IDA.
OLD BUSINESS: None
NEW BUSINESS:
ƒ Resolution “Authorizing a Contract for Siding Replacement at Potsdam Commerce Park
Building, Lot 6, and Establishing a Budget Line Item.” Blevins/Morrill. Mr. Fountain reported
that the Request for Proposals yielded one bid. No further comments/questions. Resolution
passes unanimously.
ƒ Resolution “Curran Renewable Energy, LLC, Additional Deferral Agreement and Amendment to
Indenture.” Morrill/Weekes. Mr. Fountain explains that this resolution extends the project
deadlines and defers payments to the bondholders. In response to his question Mr. McMahon is
advised that no one is adversely impacted by this action. Passes unanimously.
ƒ Resolution “Electing to Participate in the New York State and Local Retirement System.”
Blevins/Weekes. Mr. Kelly reports that this resolution is part of a process required as part of the
IDA’s participation in the retirement system. This document, along with a roster of impacted
employees, must be submitted as part of the application. Unanimous.
EXECUTIVE SESSION: None
ADJOURNMENT: Weekes/Blevins motion to adjourn at 10:21 AM. Adjourned by unanimous consent.
(Mr.) Lynn Blevins, Secretary