ST LAWRENCE CO IDA LOCAL DEVELOPMENT CORPORATION (IDALDC)
AND
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY (SLRVRA)
MINUTES OF JOINT MEETING – October 27, 2011
CALL TO ORDER: IDALDC Vice-Chairman Ernest LaBaff and SLRVRA Chairman Robert McNeil called to
order a joint meeting of the St. Lawrence County Industrial Development Agency Local Development
Corporation and the St. Lawrence River Valley Redevelopment Agency at 8:30 AM at the Best Western,
Canton.
ROLL CALL:
For the IDALDC – A quorum is recognized with the following members:
Blevins ........................... Present
Hall .............................
LaBaff ............................ Present
McMahon....................
Peck................................ Present
Staples.........................
Weekes........................... Present
For the SLRVRA – A quorum is recognized with the following members:
Burns.............................. Absent
Carroll .........................
McNeil ........................... Present
Murphy .......................
Strait............................... Present
Present
Present
Absent
Present
Present
Peck/Blevins motion to approve the agenda. Approved.
Others: Staff Raymond Fountain; Patrick Kelly; Kimberly Gilbert; Natalie Sweatland; Richard Williams; Eric
Gustafson, Esq., SLRVRA Counsel; Andrew Silver, Esq., IDALDC Counsel; Mssrs. Mark Dzwonczyk and J.
Thomas McCarty of Slic Network Solutions, Inc.; Mr. Ron McDougall of Central Trades Council; Mr. James
Lawton of St. Lawrence Newspapers.
PUBLIC NOTICE: Public notifications sent October 12, 2011 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.
STAFF REPORT: Mr. Kelly familiarizes attendees with the sequence of the agenda, noting this is the first
meeting of this type.
PUBLIC COMMENT: Mr. Kelly introduces Mr. Mark Dzwonczyk, who provides a brief history of Slic
Network Solutions and the company’s current project. He notes that the company, in late 2010, received
funding through the Rural Utilities Service’s Broadband Initiative Program to build out fiber-based rural
broadband in St. Lawrence County and Franklin County. The funding consisted of $33 Million in funding
($26 Million grant funding and $7 Million loan financing (80%/20%)). As a result of the build out project, the
company has been installing an average of 40 new residences each week (32 cited this week). Mr. Dzwonczyk
provided a brief history of his involvement with Slic, noting that he originally spent time in the Adirondacks
through his wife’s family’s property and found it necessary to install broadband near the property so he could
continue to oversee his California-based businesses while he was visiting this area. His involvement with Slic
and Clarkson soon followed, and he was asked to serve on Slic’s Board of Directors when the company
decided to expand its board. He accepted the CEO post at Slic and will continue to serve as its CEO at least
until April 2012. Mr. Dzwonczyk notes this project is a good opportunity for the community. He is working
to take lessons from his high-growth companies and apply them to Slic, enacting fundamental changes in the
company to ensure Slic’s long-term growth. In May 2011 the company employed 27 – it now employs 40 as a
result of this project.
The Federal (RUS) funds are received on a cost-reimbursement basis. As they incur costs from the build out,
it takes between 60 and 90 days to receive reimbursement. They have worked out “paid as paid” agreements
with a number of vendors, but note that smaller vendors cannot wait as long.
Slic is requesting a loan to bridge cash flow.
In response to question from Mr. Strait, Mr. Dzwonczyk notes his commitment as CEO is contractual, in 6month increments.
EXECUTIVE SESSION: Peck/Weekes motion for Executive Session at 8:45 AM to discuss the credit and
financial histories of two specific companies, and the proposed sale or lease of real property as publicity would
substantially affect the value thereof. Hall/Blevins motion to return to Regular Session at 9:52 AM.
NEW BUSINESS:
NYPA Contract: Mr. McNeil appoints himself and Mr. Strait to serve on a committee formed to continue
discussions with NYPA regarding the approval of contracts submitted to NYPA for approval. Both entities
suggest Mr. McMahon, as he is both an IDALDC Board Member and the SLRVRA’s agent regarding the
power contract. Mr. LaBaff appoints Mssrs. Staples and Blevins to the committee. Mr. McNeil will act as the
committee’s spokesman.
Resolution of the St. Lawrence River Valley Redevelopment Agency “Authorizing a Loan of $825,000 to Slic
Network Solutions, Inc.” McNeil/Strait motion to accept. Mr. McNeil notes he is voting to support this
resolution as he feels it is a worthwhile project, it is a needed-service, and the information provided by Slic
went a long way to answer his questions. It is an important project. Resolution approved by unanimous vote.
Resolution of the St. Lawrence County IDA Local Development Corporation “Authorizing Funds through the
St. Lawrence River Valley Redevelopment Agency for Loan Financing to Slic Network Solutions, Inc.
Hall/Peck motion to accept. Mr. McMahon notes that while the intent of the SLRVRA is to leverage funds for
the development of the community and although this project is not ‘river centric’ it will go a long way to
develop un-served and underserved areas, and will create jobs both in the short term and the long term.
Resolution approved by unanimous vote.
Resolution of the St. Lawrence River Valley Redevelopment Agency “Authorizing a Loan of $150,000 to
Structural Wood Corporation” Strait/Murphy motion to accept. Mr. Strait noted this project is critical to the
development of the North Country, and the Town and Village of Waddington. This company is an excellent
employer and its expansion plans are admirable. Resolution approved by unanimous vote.
Resolution of the St. Lawrence County IDA Local Development Corporation “Authorizing Funds through the
St. Lawrence River Valley Redevelopment Agency for Loan Funding to Structural Wood Corporation.
Blevins/McMahon motion to accept. Resolution approved by unanimous vote.
Mr. McNeil notes he has been impressed by the work of the staff, and he is grateful for their work and
perseverance on these projects.
ADJOURNMENT: Hall/Strait motion to adjourn at 9:58 AM. Adjourned by unanimous consent.