Meeting Minutes
February 13 2020
The Regular Meeting of the City of Hornell Industrial Development Agency was held February 13, 2020, at 5:00 PM, at 40 Main Street, Hornell, NY.
PRESENT: Samuel Nasca, Chair
Ed Flaitz. CFO, Treasurer
John Carbone, Secretary
John Buckley, Assistant Secretary
ABSENT: Dave Parmley, Vice Chairman
George Prete, Assistant Treasurer
ALSO: James Griffin, CEO, Executive Director
Shawn Hogan- Executive Consultant
Margaret Frungillo, Administrative Assistant
John Dagon, Agency Counsel
Robert Peisher, Peish Video and Production
Chris Potter, Spector/ Evening Tribune
Todd Strong, First Heritage
MINUTES
Chairman Nasca called the meeting to order at 5:10 PM. Chairman Nasca reported that there was a quorum for the meeting as required by the by-laws. Chairman Nasca noted that Peisher is live streaming the meeting.
Secretary Carbone presented the minutes of the January 9, 2020 meeting. A motion was made by John Buckley, seconded by Ed Flaitz to approve the minutes of the 1/9/20 meeting. Carried All.
Treasurer Flaitz presented the financial statements for December & January that had been e-mailed to the Board prior to the meeting. A motion was made by Ed Flaitz, seconded by John Buckley to approve the financial report as presented.
The motion was put to a vote on roll call which resulted as follows:
Samuel Nasca – Aye
Ed Flaitz – Aye
Dave Parmley – Absent
John Buckley - Aye
John Carbone – Aye
The motion was approved as presented.
COMMITTEE REPORTS
Audit Committee – Chairman of the Audit Committee, John Carbone, reported that the Audit Committee had met and approved bills for December in the amount of $35,544.68 from the Operating account and $185,164.24 from the Escrow Account. They also approved $58,800.41 from the Operating account in January. A motion was made John Buckley, seconded by Ed Flaitz, to approve the actions of the Audit Committee. The motion was put to a vote on roll call which resulted as follows:
Samuel Nasca – Aye
Ed Flaitz – Aye
Dave Parmley – Absent
John Buckley - Aye
John Carbone – Aye
The motion was approved as presented.
Personnel Committee – No report
Governance Committee- No Report. Nasca stated that he received information at the NYS Education conference and will send it to the board members via email.
NEW BUSINESS-
TTA Systems, LLC - Executive Director Griffin presented a request from TTA for an extension on their sales tax exemption, which expired 12/31/19. They are still purchasing items for the expansion project at their facility and request that the exemption be extended to 12/31/20. A copy of the Authorizing Resolution for this extension was sent out to the board prior to the meeting. Executive Griffin requested a motion to execute and deliver the documents necessary to approve the requested sales tax exemption.
A motion was made by Ed Flaitz, seconded by John Carbone to approve the resolution as presented.
The motion was put to a vote on roll call which resulted as follows:
Samuel Nasca – Aye
Ed Flaitz – Aye
Dave Parmley –Absent
John Buckley - Aye
John Carbone – Aye
The Resolution was thereupon duly adopted.
Rockland Silk Mill – Executive Director Griffin stated that they are expected to close on the property tomorrow. Griffin noted that in the attached letter from Park Grove Realty, they stated that there are a few changes;
The number of units from 23 to 22
The estimated reconstruction/renovation costs have increased to approximately $4,600,000 from $4,200,000
Estimated Bank Financing has increased up to $3,000,000 from $2,600,000
Mortgage Amount has increased from $4,750,000 to $5,000,000
Gross amount of cost of goods and services has increased to $2,500,000 from $2,100,000.
Estimated sales tax benefits has gone from $168,000 to $200,000
The City of Hornell has accommodated them with a letter approving some green space between the main parking area and the parking garage.
Executive Griffin requested a motion to approve the Final Resolution to authorizing the negotiation, execution, and delivery of a project agreement, lease agreement, leaseback agreement, PILOT agreement and related documents. The Final Resolution had been emailed to the board for their review prior to the meeting.
Chairman Nasca noted that the structure of the language of the resolution is very protective of the agency, giving the agency the right to claw back some of the tax exemption granted if for a valid reason.
Griffin noted that it has been a long process and it will be good to turn the property over to the developers.
A motion was made by John Buckley, seconded by John Carbone to approve the Final Resolution as presented.
The motion was put to a vote on roll call which resulted as follows:
Samuel Nasca – Aye
Ed Flaitz – Aye
Dave Parmley –Absent
John Buckley - Aye
John Carbone – Aye
The Resolution was thereupon duly adopted.
Alstom- Griffin stated that he and Executive Consultant Hogan have spent a lot of time working with the engineers and contractors at Alstom and it will be a continuous project.
OLD BUSINESS-
Executive Consultant Hogan gave updates on current projects.
South Yards- Hogan stated that we have replaced the building footprint and are working with some other developers for that site.
The Plaza: Hogan further stated that Flaum has signed all of the papers and the property at the north end of the Plaza has been transferred. It is now up to the developer to get started in the spring.
Federation Building: Hogan said that Krog has applied, through the DRI, for funding for façade improvement on the side of the building facing the Center St. parking lot and to complete the first-floor space for retail.
Shawmut Park: Hogan reported that he, Griffin, and Mitch Cornish met with Fagan Engineers to discuss the proposed new Alstom building at Shawmut Park.
Opportunity Zone Program: Hogan stated that he and Ed Flaitz had met with them to discuss the portal – it's an extensive and worthwhile site, posting projects and getting the areas that are ripe for development posted with a more in-depth narrative.
Railhead: Hogan further stated that there was no update – they own the facility now. They have been working with REDEC staff for financial assistance and he will follow up.
There being no further business, the meeting was adjourned at 5:58 PM upon motion from John Buckley, seconded by John Carbone. Carried All.
Respectfully Submitted,
John Carbone, Secretary
