ST. LAWRENCE COUNTY INDUSTRIAL DEVELOPMENT AGENCY
MINUTES OF MEETING
April 6, 2010
CALL TO ORDER: Chairman Brian Staples called to order a meeting of the St. Lawrence County
Industrial Development Agency at 8:00 AM at the University Inn / Best Western, Canton.
ROLL CALL:
Blevins
Present
Hall
Present
LaBaff
Present
McMahon
Present
Morrill
Present
Staples
Present,
9:45am
Weekes
Present
excused
at
Others: IDA Staff Ray Fountain, Patrick Kelly, Rich Williams, Brian Norton, & Natalie Sweatland;
Agency Counsel William R. Small, Esq.
MINUTES: LaBaff/Weekes move to accept the minutes of the February 23, 2010 meeting.
PUBLIC NOTICE: Public notifications sent March 22, 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: None
FINANCIAL REPORT: (December 2009; January & February 2010) Mr. Fountain reports that
adjustments made to the December report were done at the recommendation of the auditors. The January
and February reports are unremarkable. Morrill/Ernie move to accept. Filed for audit.
COMMITTEE REPORT: None
STAFF REPORT: Mr. Fountain reports on the following:
Adirondack Rail Project – Mr. Fountain reports that they received an opinion from Edmund J.
Russell, III, Esq., of Underberg & Kessler that a entering into a contract with Attorney Bernard
Melewski to seek grant funding for the rail line is not lobbying. Mr. Russell, did, however suggest an
indemnification clause be inserted into the contract that if, for any reason, Mr. Melewski acted
outside the contract, the IDA would be held harmless. Mr. Melewski did not want that clause inserted
in the contract and we have responded to Mr. Melewski that, upon the recommendation of our
attorney, we would like the see the clause
Kinney Drugs – Kinney Drugs’ continues to experience difficulties with attaining/maintaining water
pressure at its warehouse in Gouverneur, at a rate suitable for the company’s insurer. The problem
stems from an older system with no standard diameter lines. The lines may start out 8” diameter but
varies in diameter along the way, preventing acceptable water pressure levels. We had, in the past,
asked the nearby State prison to allow a water feed from their system, but they refused. The
insurance company has again threatened to deny insurance effective July 1. Rich Williams will work
with an engineer to determine the cost of a plan to remediate. Mr. Blevins asks Rich to get him the
flow rate information, noting that NYS has standards for flow rate. Mr. Staples notes that 300 jobs at
stake is a problem and we [IDA] need to be deliberate about it, not casual. Mr. Weekes notes that the
Village of Gouverneur at one time was thinking about running a new line as they were planning their
road upgrade project there
WiseBuys: Mr. Fountain reports that Kim Gilbert was in contact with Mr. Scozzafava. We have not
received the personal financial statements.
St. Lawrence Lumber: Mr. Kelly reports that this project was the subject of significant discussion at a
recent GADC meeting. He provided a brief history of the project, noting that there were a number of
people who opposed the pilot. Patrick Kelly and Rich Williams visited the site, noting that they had
received reports that the equipment was being moved. The IDA-financed equipment remains on site.
(Photos distributed to membership). The loan is current. Mr. Morrill noted that either Rich or Ray
had told him that a trailer located on the site had to be moved per the DEC by either October 2008 or
2009 and the trailer is still there. He went on to note that he has been providing this information to
citizens who have inquired about the trailer. Rich responded that he may have asked Greg [Hoppel]
about it, but he doesn’t believe it was the DEC’s regulation. Mr. Weekes notes that historically,
industry had made up the majority of Fowler’s tax base, but as the local industries [e.g. mines] have
closed, the citizens have had to pick up the burden. In response to Mr. McMahon’s question about
the job creation, Mr. Kelly reported that the original plan was to retain 6 jobs and create 4. The
company, he added, had not met these goals. The tree clearing business was provided Mr. Hoppel
more work than the mill and he was just trying to stay afloat. Mr. Morrill noted that another local
business cited a concern that it didn’t receive the same consideration (tax benefts) that this project
did. Mr. Fountain noted that the other, local business’s original facility was funded through CDBG
and did, in fact, have a pilot. The status of the trailer in question was discussed and staff believe the
issue was not a DEC issue, but a code enforcement issue. Staff will talk to Mr. Hoppel.
IDA Assessment: Staff remitted payment “under protest” on March 31, 2010. The IDA has entered
into a class action lawsuit with the NYSEDC and 40 other IDA’s across the State. Our cost was
$1,000. Mr. Fountain noted he received permission to pursue from Vice-Chairman LaBaff, as
Chairman Staples was out of town. State legislators have a bill pending to rescind the tax. The
IDA’s options were to pay the bill under protest or not pay the bill and accept a fine. In response to a
question from Mr. McMahon, Mr. Fountain noted that some IDA’s paid the bill, some IDA’s didn’t.
We chose to pay the bill.
United Helpers: The company is working to refinance the bond issued as part of the Partridge Knoll
Facility project. Mr. Kelly has advised that historically, the IDA has charged a 1% fee, with half
donated back to the company. Mr. Small noted that Harris Beach has been retained as bond counsel,
noting that originally the company didn’t provide for bond counsel but Mr. Small felt it was essential.
The project would result in the issue of a new letter of credit, not a bond reissue. Company is hoping
to have the closing by the end of April. We will need to schedule a meeting to approve the project.
Mayors and Municipalities Automotive Coalition: Mr. Fountain received a request from Massena
BDC’s Jason Clark to finance ½ of a membership fee to this coalition. The coalition calls to provide
emergency funding for US automakers, rebuilt idled automotive communities and transform to clean
and green vehicles. Mr. Kelly notes that the website appears to be a lobbying coalition and talks about
assisting communities with shuttered facilities. Mr. LaBaff notes that if the coalition is calling to
retool existing plants, it is too late for the Massena plant. It is suggested that Mr. Fountain or Mr.
Kelly could be more information at Thursday’s GM Task Force meeting. LaBaff/Morrill move to
table the discussion. Mr. McMahon notes that the funding request would be more appropriate coming
from the GM Task Force.
Creation of an LDC – The County Legislature approved the resolution creating the LDC. We will
need to provide a certified resolution to Edmund Russell, III. In addition we will need to give the
entity a name and he can file the certificate of incorporation. This entity will enable us the assist
colleges and hospitals.
PAAA/PARA-required Filings – Mrs. Sweatland has advised those members who have yet to have all
their filings in place.
NYSEDC Annual Meeting: Scheduled for May 26 through 28, 2010. Notify Mrs. Sweatland of your
availability/willingness to attend by April 14.
OLD BUSINESS: None
NEW BUSINESS:
Resolution: Amending Resolution No. 09-02-06: Adoption of Certain Policies, Standards and Procedures
to Include Provisions of the Public Authority Reform Act of 2009 – LaBaff/Hall. Mr. Fountain notes that
the amendments should address the Public Authority Reform Act of 2009. Unanimous.
Appointments to Finance Committee – Mr. Fountain reports that the Public Authority Reform Act of
2009 creates an additional committee (Finance Committee) and that a number of IDAs are combining the
Finance Committee and Audit Committee. Mr. Staples agree with the concept and appoints current Audit
Committee members (Hall, McMahon and Weekes) to a Finance and Audit Committee. Mr. Fountain
will present a committee charter at an upcoming meeting.
Resolution: Modifying 2009 IDA Budget – Morrill/LaBaff. Mr. Fountain reviews each of the
modifications, noting these are end of year adjustments as recommended by the auditors. Unanimous.
Resolution: Modifying 2010 IDA Budget - LaBaff/Hall & Blevins. Mr. Fountain reported that the
Highway Department’s Bill Dashnaw and Rich Williams looked at the project. This is good timing for
the Highway Department as the crews are in between plowing and road maintenance. It was determined
that the Highway Department could do the work. This project is considered an emergency under the
IDA’s procurement policy due to the threat the public’s safety. Mr. Livingston had communicated
directly with Mr. Dashnaw and inferred that the IDA was liable for all costs. Mr. Small advised Mr.
Livingston that that IDA was going to cooperate but not to that extent. Mr. Staples inquires if the
Highway Department has provided a good price and if the Department is qualified to do this type of work,
to which Mr. Williams replied yes to both questions. Mr. Hall noted that the IDA needs to get this done
and it is much less costly than he originally anticipated. Unanimous.
Weekes/Blevins motion to recess at 8:46 AM.
Return from recess at 8:55 AM.
EXECUTIVE SESSION: LaBaff/Hall motion for Executive Session at 8:55 AM to discuss negotiations.
Mr. Staples is excused at 9:45 AM.
Morrill/Weekes motion to return to regular session at 9:47 AM.
Resolution: Suspending Administrative and Staffing Options Discussions with St. Lawrence County:
Morrill/Weekes. Passes with 6 “aye” votes.
ADJOURNMENT: LaBaff/Morrill motion to adjourn at 10:10 AM. Adjourned by unanimous consent.
(Mr.) Lynn Blevins, Secretary