ST. LAWRENCE COUNTY INDUSTRIAL DEVELOPMENT AGENCY
MINUTES OF MEETING
February 23, 2010
CALL TO ORDER: Chairman Brian Staples called to order a meeting of the St. Lawrence County
Industrial Development Agency at 8:10 AM at the University Inn / Best Western, Canton.
ROLL CALL:
Blevins
LaBaff
Morrill
Weekes
Present
Present
Present
Present
Hall
McMahon
Staples
Present
Absent
Present
Others: IDA Staff Ray Fountain, Pat Kelly, Rich Williams, Brian Norton, Kim Gilbert, & Natalie
Sweatland; Agency Counsel William R. Small, Esq., Clifford Donaldson, NYSDOL; Patrick Green,
citizen.
MINUTES: LaBaff/Weekes move to accept the minutes of the January 7, 2010 meeting.
PUBLIC NOTICE: Public notifications sent February 9, 2010 to, at a minimum: St. Lawrence County’s
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:


Clifford Donaldson – Briefly discussed the Governor’s budget, noting that it could be considerably
different at adoption as to what it was when presented. Advised that the NYSDOL still has 2 labor
programs: (i) Shared Work Program whereby a company facing layoff can change its employees’
statuses (e.g. work 3 days, layoff 2 days) while maintaining employee benefits; and (ii) On-The-Job
Training Program whereby a company can receive reimbursement for training time of a new
employee’s wage. DOL is also considering extension of UI and COBRA. He will forward fact sheets
to Mr. Fountain and Mr. Kelly.
Patrick Green – Asked for information regarding the IDA, its projects and the jobs it has created since
its inception. Mr. Fountain noted that a lot of the information Mr. Green may be seeking may be
found on the IDA’s website. Mr. Green expressed concern about the loss of tax base from the co-gen
project in Ogdensburg. Chairman Staples explained that the IDA, when it determined in 2007 that the
Company had not met its employment goals, returned the Company’s property to the tax rolls, and
issues regarding assessment of the property should be addressed to the municipality. When asked by
Mr. Green if he needed to FOIL other questions, Chairman Staples suggested he make an
appointment with an IDA staff member, and the staff member will answer whatever
questions/provide guidance he/she can (and recommend a FOIL request for those questions that
he/she is unable to answer during the appointment). Mr. Norton provided Mr. Green with his contact
information.
FINANCIAL REPORT: None
COMMITTEE REPORT: Mr. Weekes reports that the IDA audit went well. There were no findings
issued, but the Auditor has recommended a change to the way the IDA staff submit their timesheets. The
Audit Committee recommends acceptance of the 2009 IDA Audit.
Motion by Mr. LaBaff and second by Mr. Blevins, to accept the recommendation of the Audit
Committee. The resolution passes with 5 “aye” votes (Blevins, Hall, LaBaff, Staples, Weekes) and 1
abstention. Mr. Morrill, citing he would have preferred more time to review the documents, abstained.
STAFF REPORT: Mr. Fountain reports on the following:
 Dockside Village of the 1000 Islands – Mr. Newby has indicated that he has received the needed
financing for the project.
 Adirondack Rail Project – Agency members are provided with a proposal from Bernard C. Melewski,
which outlines proposed activities intended to assist in securing grant funding and other sources of
financial backing to renovate the rail line. Members express concern that the activities outlined in the
proposal could be construed as “lobbying” efforts. Mr. Kelly notes that Edmund J. Russell, III, Esq.,
of Underberg & Kessler has advised that the act of “seeking of grant funding” is not geared toward
altering legislation and would not be considered lobbying. If the activities should change to
“influencing” then the activities could be considered “lobbying.” The funding would be shared
equally among the IDA, Newton Falls Fine Paper Co., and Benson Mines. Attorney Small notes that
he believes Mr. Russell to be more versed in the area of lobbying and would recommend following
his [Russell] advice. Mr. LaBaff is concerned that the interpretation is “a stretch.” Mr. Morrill notes
that the project will not move forward if no funds are available. The attorney [Russell] says it’s not
lobbying and we [IDA] are losing track of the real issue. Mr. LaBaff will support this proposal if Mr.
Russell puts his opinion in writing. Mr. LaBaff motions, Mr. Hall seconds a tentative approval of this
proposal, subject to the attorney’s written approval that the proposal, in concept, is not lobbying. The
motion passes with 5 “aye” votes (Blevins, Hall, LaBaff, Staples, Weekes) and 1 abstention. Mr.
Morrill, citing his employment with the Newton Falls Fine Paper Co., abstains.
 Creation of an LDC – A draft resolution prepared by Underberg & Kessler for consideration by the
County Legislature is distributed for review. Mr. Fountain notes that Underberg & Kessler Attorney
Edmund J. Russell, III has been working with the County’s attorney. The County resolution, drafted
to address the IDA’s inability to issue tax exempt bonds for non-profits, would authorize the IDA to
create an LDC to enable the County to issue bonds, etc. for the benefit of not-for-profit entities. The
County would appoint the IDA as the initial sole member of the LDC and the members of the IDA as
the initial directors of the LDC. The LDC would cease to exist if/when the State reauthorizes Civic
Facilities Legislation. Mr. LaBaff notes that this resolution could provide immediate assistance to
Canton Potsdam Hospital and EJ Noble Hospital. Colleges and universities would provide assistance
by speaking to the County Legislature on the importance of this LDC. There are concerns expressed
that the County may not want to give up this authority. Chairman Staples notes that once this LDC is
created, it may take on a life of its own. Mr. Morrill notes that the process needs to get moving and
we [IDA} need to do whatever we have to do, and be confident that the County will do the right
thing.
 Newton Falls Fine Paper Co., LLC – Mr. Kelly is working with the Company preparing applications
for funding for renewable energy projects. Mr. Kelly notes that the applicant is actually the
IDALDC, to try to avoid the State’s newly-enacted assessment on IDAs.
OLD BUSINESS: None
NEW BUSINESS:
Appointments to Finance Committee – Deferred by the Chairman until a future meeting.
Membership Designation to North Country Transportation Group: Mr. Fountain refers to the bylaws
provided by this Group’s Chairman, Jason Clark noting that the group has asked for the IDA to officially
designate a member. Mr. LaBaff notes that he headed a similar committee, but has since let this group
handle the issue. He notes concern that the group has become political, when it wasn’t supposed to be
originally. He [LaBaff] volunteers as the group’s official designee, and is appointed by Chairman
Staples.
Resolution: Disposition of Real Property - Annual Review: Morrill/Weekes. Mrs. Sweatland notes that
this review is required annually as part of the Public Authorities Accountability Act, and changes to the
policy have been made pursuant to Public Authority Reform of 2009. Unanimous.
Resolution: Support for Continued Operation of Ogdensburg Correctional Facility – LaBaff/Morrill &
Blevins. No questions or comments. Unanimous.
Resolution: Opposing NYS Division of Budget Cost Recovery Charge – Blevins/Hall, Labaff, Morrill,
Staples and Weekes. No questions or comments. Unanimous.
Resolution: Authorizing the Financing of a Down Payment Associated with the Sale of an Industrial
Building – MorrillWeekes. Mr. Fountain notes that the original agreement for the sale of the building
required a $60,000 down payment. The company has paid $15,000 and is asking to cover the remaining
$45,000 over a 12-month period. Unanimous.
Resolution: Modifying 2010 IDA Budget (Newton Falls Rail Washout Project) – Morrill/Hall. Attendees
are provided a history on the rail washout. Mr. Fountain noted that approximately $1,500 was emergency
spending to stabilize the rail line. The IDA will end up paying approximately $40,000 to return this
portion of the rail to standard, the remaining funds to be paid by Chuck Livingston, who owns the
property on both sides of the rail near the washout. The washout initiated on Mr. Livingston’s property.
The $40,000 would pay for culvert, fill and engineering. The Agency has received input/assistance from
both the DEC and the APA. Mr. Livingston filed a claim against the IDA. Mr. Morrill asked how the
contractor was selected to attend to the emergency situation, as a complaint was received at a meeting of
the Town of Fine. Mr. Williams explained that he started making phone calls, and the contractor chosen
was the first one to respond to his outreach efforts. Mr. Fountain reiterated that the Agency’s
procurement policy addresses emergency situations. Mr. Williams notes that the barricade currently in
place will remain, even after the washout issue is completed. Unanimous.
EXECUTIVE SESSION: LaBaff/Morrill motion for Executive Session at 9:17 AM to discuss current
litigation with a specific company.
Blevins/Morrill motion to return to regular session at 9:28 AM
ADJOURNMENT: LaBaff/Morrill motion to adjourn at 9:28 AM. Adjourned by unanimous consent.
(Mr.) Lynn Blevins, Secretary