BROOME COUNTY INDUSTRIAL DEVELOPMENT AGENCY
BOARD MEETING
185 Court Street
Binghamton, New York 13901
Friday, February 13, 2015, 12:00 pm
SYNOPSIS OF MEETING
PRESENT:
J. Baumgartner, J. Bernardo, J. Davis, W. Howard, T. Kane, R. Nielsen Jr., J. Smith and J.
Stevens
ABSENT:
J. Rounds
GUESTS:
Debbie Preston, Broome County Executive
Jerry Marinich, Broome County Legislature
Aaron Martin, Broome County Legislature
Mark Whalen, Broome County Legislature
Emmanuel Priest, Office of Senator Libous
John Bertoni, Mayor of Village of Endicott
Monarco DiFrancesco, American Horizons Group, LLC
Anthony Paniccia, Delta Engineers, Architects & Land Surveyors
Michael Keenan, Good Shepherd Village
James Franz, Hinman, Howard & Kattell
Robert Aikens, IYOE Local 158
Chris Bushnell, Laborers Local 785
Scott Colton, Carpenters 277
Dan Richardson, Roofers Local 203
Tom Spicer, Electricians 325
Tom Augostini, Town of Union
John Solak, Broome County Resident
Jon Harris, Press & Sun Bulletin
Jeff Platsky, Press & Sun Bulletin
STAFF:
K. McLaughlin, S. Duncan, T. Gray, C. Campon, Z. Pehel, N. Schwartz
COUNSEL:
J. Meagher
PRESIDING:
T. Kane
Mr. Kane called the meeting to order at 12:00 p.m.
ITEM #1. APPROVE MINUTES FOR THE JANUARY 9, BOARD MEETING: Mr. Kane requested approval of
the minutes for the January 9, 2015 Board Meeting
MOTION: To approve the January 9, 2015 Board Meeting minutes. On a MOTION by Mr. Davis, seconded
by Mr. Howard, the MOTION CARRIED UNANMIOUSLY.
ITEM #2. PUBLIC COMMENT: Mr. John Solak said he attended the BCIDA Governance Committee on
Wednesday and he enjoyed the presentation from American Horizons Group. He reminded the Board
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that if anyone is a member of Visions Federal Credit Union, they are an owner of the credit union and
since that institution is providing financing for the proposed American Horizons Project, any Visions
members should abstain from voting. At the Governance Committee meeting, Mr. Monarco DiFrancesco,
from American Horizons Group, said the project is 90% ADA compliant. Mr. Solak said that in accordance
with Title IX, it should be 100%. He said the proposed project would take $16,000 of existing rents out of
the tax revenue by granting it a PILOT. Mr. Solak recommended granting the PILOT in phases. He
reminded the Board that banks have foreclosure power, and he asked how a foreclosure would affect a
PILOT. Mr. Tom Spicer, Electricians 325, said most of the jobs that would be created by the American
Horizons project would be in constructing the prefabricated units in Pennsylvania. Mayor John Bertoni,
Village of Endicott, said the last group to attempt to develop this tract of land in Endicott was only able to
build one unit before the project went astray and was left unfinished. When Mr. DiFransesco, a local real
estate developer, came with his local architect and local lawyer to see Mr. Bertoni, the neighbors in that
area were frustrated with previous attempts to develop there. The developers have since addressed their
frustrations and the neighbors actually look forward to the project now. Mr. Bertoni said this tract of land
is the last developable land in Endicott and the Village Board was very thorough in vetting the project.
They have a sincere belief in it. Mr. Chris Bushnell, Laborers Local 785, said the project is a nice idea, but
he wishes it would be built locally instead of with prefab units built out of state. He said the project gives
local workers no opportunity for work. For that reason he is opposed. Mr. Mark Whalen, Broome County
Legislature, said his concerns are not with this particular project but with the Agency’s lack of a PILOT
policy. Mr. Whalen said the previous IDA Executive Director’s policy was that the IDA has PILOTS available
and if projects qualify, they are granted. Mr. Whalen believes there should be a stricter policy based on
an economic impact study. Mr. McLaughlin said the Agency would be open to considering a more detailed
policy. He encouraged the Board to discuss having a plan for residential projects (student housing,
nursing, etc.). Mr. Scott Colton, Carpenters 277, emphasized that the majority of the jobs that would be
created by this project will be in constructing the prefab units out of state. Mr. Dan Richardson, Roofers
Local 203, stated that with the construction taking place outside of the state, the supplies will also most
likely be purchased out of town/state. Mr. Tom Augostini said the previous developer of that tract in
Endicott should not have been trusted, but Mr. DiFrancesco is someone to trust. He said Mr. DiFransesco
has the integrity and financial resources to get the job done. Mr. Marinich said he feels it’s a great project,
but local contractors aren’t being given the opportunity to work. He encouraged the Board to review the
local labor policy and table to decision until next month.
MOTION: No motion necessary.
ITEM #6. EXECUTIVE DIRECTOR’S REPORT: Mr. McLaughlin said he, Mr. Gray and Ms. Campon attended
the NYSEDC conference last month that focused on comptroller compliance. While in Albany on that trip,
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Mr. McLaughlin was also able to attend the Governor’s State of the State address. Regarding the internal
financial statement, Mr. Nielsen asked about the new investment account. Mr. McLaughlin said the
money is being invested in the most aggressive accounts as allowed by State and Federal regulations,
varying between short and long term. Mr. Nielsen requested that interest rates be provided for the
investment account going forward.
MOTION: No motion necessary.
ITEM #7. LOAN FUNDS AVAILABILITY AS OF DECEMBER 31, 2014: Mr. Gray presented the Loan Funds
Availability report to the Board. The balances available to lend are $164,788.34 (STEED) and $114,163.75
(BDF).
MOTION: No motion necessary.
ITEM #8. COMMUNICATIONS STRATEGY UPDATE: Ms. Duncan said she will put together a quarterly
update on the communications strategy going forward. She has been working with Mr. Davis and Mr.
Stevens based on the strategic plan. Ms. Duncan plans to have the new printed collateral available for
the full board by next month, before the IDA’s annual breakfast. She is currently reviewing where the
marketing budget is being spent and future options to maximize return on investment. Ms. Duncan
introduced the two new interns working with the Agency: Nate Schwartz and Zach Pehel.
MOTION: No motion necessary.
ITEM #9. RESOLUTION TO EXTEND SALES TAX EXEMPT STATUS FOR SHEEDY ROAD LLC/JUNEBERRY
ROAD LLC: Mr. Meagher stated that because construction is ongoing for the skilled nursing facility in
Johnson City, the company has requested an extension on their sales tax exempt status. He recommends
extending their status for one year. Mr. Nielsen said he would be voting no as he wasn’t on the Board
when the project was initially approved, but he would have opposed it then.
MOTION: Resolution to extend sales tax exempt status for Sheedy Road/Junberry Road. On a MOTION
by Mr. Stevens, seconded by Mr. Davis, the MOTION CARRIED. Mr. Baumgartner and Mr. Smith abstained
as they were not on the Board when the initial project was approved. Mr. Nielsen opposed.
ITEM #10. RESOLUTION AUTHORIZING THE FINAL INDUCEMENT FOR THE AMERICAN HORIZONS,
LLC SALE LEASEBACK TRANSACTION TO FACILITATE THE FINANCING OF THE CONSTRUCTION AND
EQUIPPING OF A 56-UNIT, SINGLE LEVEL, 55 AND OLDER, RESIDENTIAL RENTAL COMMUNITY LOCATED
AT EAST FRANKLIN STREET, VILLAGE OF ENDICOTT, BROOME COUNTY, NEW YORK, ENTERING INTO A
PILOT AGREEMENT DEVIATING FROM THE AGENCY’S UNIFORM TAX EXEMPTION POLICY AND
GRANTING A SALES AND MORTGAGE TAX EXEMPTIONS CONSISTENT WITH THE AGENCY’S POLICIES: Mr.
McLaughlin said the developers presented at the Governance Committee meeting on Wednesday and will
present again today. Mr. DiFransesco said he was born and raised locally and grew up half a block from
the site that he intends to develop. When the site went up for sale it had been vacant for years with only
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one house ever built on it. The land was scarred and the vegetation had been removed. Mr. DiFransesco
said he listened to the concerns of the neighbors and incorporated those concerns into his plans. He said
when developing senior housing, it’s important to develop the community and curb blight. Mr.
DiFransesco said he appreciates what the contractors are saying with regard to the opportunity to work.
He considered stick build, but it would add 25% more to the cost of building and another construction
season. In regards to Mr. Solak’s comment during public comment about the ADA compliance, Mr.
DiFransesco said 90% compliant is adequate because this is 55-plus residences rather than a nursing
facility or hospital. Mr. DiFransesco explained the necessity of a PILOT agreement because he said the
potential rent income is less than the taxes alone before maintenance and insurance costs are factored
in. He said the project is not feasible without the help of the IDA. Mr. DiFransesco said the project is
important to him, as his first residential project, because he wants to give back to his community. He
emphasized that almost 70% of construction will still remain after the prefab units. Mr. DiFransesco said
neighbors attended the last Village meeting and expressed that they look forward to having this project
in their neighborhood. Mr. DiFransesco said the project will bring in 110 55-plus age residents with
income; not subsidized housing. Mr. Paniccia said Mr. DiFransesco has used all local labor and supplies in
the past, and he plans to continue. He said Lackawanna County, where the prefab units are manufactured,
is only 37 miles away, which meets the criteria of the Agency’s local labor policy. Mr. Nielsen said this
decision is not about the honor of the developer or the difficulty of developing this site or the project’s
worthiness, but the Board needs to decide if it should grant a $2 million subsidy to a project that will be
constructed in another state. He said he opposes the project because the Agency’s labor policy says 90%
of the project should be local, not just 70%. Mr. Davis asked if the Agency should develop a policy that
will never allow the use of prefab units. Mr. Nielsen said yes, the Board should always be against
manufactured housing from out of state. Mr. Davis asked if there is anyone in a 50 mile radius who
manufactures modular units. Mr. Paniccia said the closest company is in Oneida, NY, about an hour and
a half away. Mr. Davis asked if American Horizons already has a contract with Simplex, the Lackawanna
County company. Mr. Paniccia said no. Mr. Stevens said Endicott needs to see something positive
happen, and this is the opportunity. He said this is the first time since he’s been on the board- five yearsthat a developer is interested in Endicott. Mr. Bernardo said Mr. Nielsen’s point is well taken but the
discussion about the local labor policy needs to take place in a future Governance Committee meeting.
He said he doesn’t necessarily love granting PILOTs to residential projects, but this project is similar to
others that the IDA has done. There is a huge demand for this type of housing in the community and a
huge demand for development in Endicott, speaking as a resident of the Village. Multiple consultants
have pointed out the area’s desperate need for housing for the aging population. Mr. Howard said he is
concerned about foreclosure or sale of the project. He asked if the Board should table the decision until
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next month. Mr. Davis said the Governance Committee has requested that the following conditions be
included in the resolution, addressing Mr. Howard’s concerns: The development is to be exclusively used
as a 55 and older residential rental community. The IDA Board reserves the right to rehear and
discontinue, if necessary, the PILOT program in this project if the project fails to rent to persons 55 and
older only; if there is a change in majority ownership of the project, or in the ownership of American
Horizon Group, LLC; and/or if there is a substantive change in the build out schedule/construction
completion schedule. Mr. Meagher said if it is proposed as an amendment to the resolution and the
resolution is passed, the language will be included. Mr. DiFransesco agreed the project should come back
before the Board if any of those conditions change, but he said if someone is to buy it and keep the
business otherwise unchanged, it should not require further Board approval. Mr. Meagher added that if
there is any change in use, the Agency can rescind the PILOT, per the standard PILOT language. Mr. Nielsen
suggested the project go back to the Governance Committee and the Committee should provide an
amended resolution to the Board before making a final decision. Mr. Howard moved to table the item
until next month, Mr. Stevens seconded. Mr. Kane said the Governance Committee will meet, followed
by a special Board meeting to address this before next month. He also stated that he received 101 letters
from local labor union members with concerns about labor.
MOTION: To table the item. On a MOTION by Mr. Howard, seconded by Mr. Stevens, the item was tabled.
ITEM #11. ADJOURNMENT: Mr. Kane requested a motion for adjournment.
MOTION: To adjourn the meeting. On a MOTION by Mr. Stevens, seconded by Mr. Bernardo, the MOTION
CARRIED UNANIMOUSLY, and the meeting was adjourned at 1:22 p.m.
The next meeting of the BCIDA Board of Directors will be decided by the Chairman after the Governance
Committee meets.