Meeting Minutes

February 1, 2018

A regular meeting of the City of Hornell Industrial Development Agency was held February 1, 2018, at 4:00 PM, at 40 Main Street, Hornell, NY.

PRESENT: Samuel Nasca, Chair
George Prete, Vice Chair
David Parmley, Asst. Treasurer, Asst. Secretary

ALSO: James Griffin, CEO, Executive Director
Shawn Hogan, Executive Consultant
Margaret Frungillo, Administrative Assistant
John Dagon, Agency Attorney
John Carbone
John Buckley
William Dugan, WLEA Reporter

Chairman Nasca called the meeting to order at 4:10 PM. Chairman Nasca reported that there was a quorum for the meeting.

Governance Committee- Chairperson Nasca advised the Board that we had to fill the vacancies created on the Board and Sub Committees by the departure of Board members Shawn Hogan and Joe Foreman.

Those vacancies are as follows:

Treasurer & Chief Financial Officer
Secretary
Assistant Treasurer
Personnel Committee Chair
Personnel Committee member
Audit Committee member
Governance Committee member

The Chair recommended these officers be filled by the following:

Treasurer/Chief Financial Officer = Dave Parmley
Secretary = John Carbone
Assistant Treasurer = John Buckley
Personnel Committee Chair = Dave Parmley
Personnel Committee member = John Carbone
Audit Committee member = John Carbone
Governance Committee member = John Buckley

Nasca stated that there were vacancies on the Committee's that also need to be filled. Nasca recommended that John Carbone fill the positions on the Personnel Committee and Audit Committee, and John Buckley fill the vacant position on the Governance Committee. A motion was made by Shawn Hogan, seconded by George Prete, to approve the actions of the Governance Committee as presented. Carried All.

Secretary Carbone presented the minutes of the December 14, 2017 meeting. A motion was made by Dave Parmley, seconded by John Buckley to approve the minutes of the 12/14/17 meeting. Carried All.

Treasurer Dave Parmley presented the financial statements for December that had been e-mailed to the Board prior to the meeting. A motion was made by George Prete, seconded by John Buckley to approve the financial report as presented. Carried All.

COMMITTEE REPORTS

Audit Committee – Chairman of the Audit committee, George Prete, reported that the Audit Committee had met on 2/1/17 and approved bills in the amount of $238,641.02 for December from the Operating account and $195,404.73 from the Escrow account. A motion was made Dave Parmley, seconded by John Carbone, to approve the actions of the Audit Committee. Carried All.

Personnel Committee – No report

EXECUTIVE DIRECTOR'S REPORT

The Residences-

Executive Director Griffin reported that the owner of The Residences has requested that the title of the 11.65 acres in Phase 1 be transferred to the company as stated in the resolutions of April 27, 2017 and September 27, 2017. Griffin stated that it is desirable to transfer the property at this time in order for the company to expedite the completion of the project. An authorizing resolution was presented authorizing the sale of the property to the Residences of Hornell LLC; The negotiation, execution and delivery of a lease agreement and an amended and reinstated lease agreement (leaseback agreement). A motion was made by John Buckley, seconded by Dave Parmley to accept the resolution as presented and move forward with the proposed project. The Motion was put to a vote on roll call, which resulted as follows:

Nasca-Aye
Parmley- Aye
Buckley- Aye
Prete- Aye
Carbone- Aye

The Resolution was duly carried.

Executive Director Griffin stated that the Company is interested in moving forward with the next 5 acres in Phase 11 of the project. Griffin reported that he would like to move forward in that direction with an agreement that if not developed in five years the property will revert back to the Agency. Griffin further reported that he will be presenting the resolution at the next Board meeting.

TTA- Executive Director Griffin stated that TTA Systems LLC is renovating the plant and is investing approximately $2 million into the project. The project will mean an increase of 30 new employees. TTA has presented an application for financial assistance in the form of sales and use tax exemption, real property tax abatement, mortgage recording tax as authorized by the laws of New York State; An authorizing resolution was presented appointing TTA Systems LLC as an Agent for the City of Hornell IDA not to exceed $100,000.00 and, therefore a public hearing is not required to be held by the agency and authorizing the Agency to negotiate, execute and deliver a license, site agreement and related documents with the project subject to compliance by the Agency of the requirements of the PAAA and the PAL. A motion was made John Buckley by, seconded by Dave Parmley to approve the resolution as presented. The motion was put to vote on roll call, which resulted as follows:

Nasca-Aye Parmley- Aye
Buckley- Aye Prete- Aye
Carbone- Aye

The Resolution was duly carried.

Executive Director Hogan stated that due to the level of employment being created and equipment requirement the project would qualify for a Community Development Block Grant (CDBG). Hogan further stated that he has been working with Kathy Dear at City Hall to form a pre-application. Kathy Dear has been working with Karen Nisbet at TTA to form a narrative for the program. The pre-application will be submitted to the Division of Housing and Community Revitalization, if asked to submit an application and approved the grant would be about $450,000.

Alstom/ Norfolk Southern- Griffin stated that Alstom is preparing to install their test track from the South end by the Depot to the North end by the Sunset. Alstom will require the entire property where the Sunset building is located. Griffin reported that the IDA will be preparing to receive bids for the asbestos removal and demolition of the building. Alstom will also be building a rail bridge to accommodate the space between the properties at a cost of approximately $2 ½ million. Alstom is also requesting permission to lease a small portion of property by the Depot owned by the IDA to allow their trucks to go through to the test track. Griffin requested a resolution to allow him to negotiate a simple lease agreement with Alstom for this property. A motion was made by Dave Parmley, seconded by George Prete to approve the resolution as presented. The motion was put to vote on roll call, which resulted as follows:

Nasca-Aye Parmley- Aye
Buckley- Aye Prete- Aye
Carbone- Aye

The Resolution was duly carried.

DEC/Horton Street- Griffin reported that the DEC is requesting that the IDA drill more holes to look for petroleum in the ground. Griffin further reported that the area where the Gas Station was located and is owned by Phil Saunders and if the taxes are not paid he would suggest that the IDA purchase the property only on the condition that the IDA will not be responsible for any existing contamination.

Trikeenan- Griffin stated that he is working with Trikeenan and the bank to try to catch up on their payments and continue to employ their 20 employees.

There being no further business the meeting was adjourned at 4:47 PM upon motion by John Buckley, seconded by Dave Parmley. Carried All.



Respectfully Submitted,

John Carbone, Secretary