PRESENT:

MIKE FITZGERALD, CHAIRMAN
SUE COLLINS, VICE CHAIRMAN
JOSEPH GILLIS, SECRETARY
TODD RULISON, TREASURER (ZOOM)
JOSEPH SEMIONE, MEMBER
DAVID D’AMORE, MEMBER
GREG TRUCKENMILLER, MEMBER
JAMES MRAZ, EXECUTIVE DIRECTOR
KARA LAIS, FITZGERALD, MORRIS, BAKER, FIRTH PC (ZOOM)
SCOTT HENZE, PLANNING DIRECTOR
GEOFF PECK, FULTON COUNTY CENTER FOR REGIONAL GROWTH (ZOOM)
ROBERT SMULLEN, ASSEMBLYMAN

MOTION        :           Accept as presented.
MADE BY      :           Joe Semione
SECONDED  :           Dr. Greg Truckenmiller
VOTE             :           Unanimous

MOTION        :           Accept as presented.
MADE BY      :           Dave D’Amore
SECONDED  :           Sue Collins
VOTE             :           Unanimous

A. Nominating Committee

• No report.

B. Audit Committee:

• Monthly Bank Reconciliation Report:  Mike Fitzgerald

IDA DISCUSSION:  Mike Fitzgerald approved the Monthly Bank Reconciliation Reports.

C. Governance Committee:

• No report.

D. Finance Committee:

•  No report.

1. Fulton County Report:
2. FCCRG Report: (See attached.)  Geoff Peck

IDA DISCUSSION:  Geoff Peck reviewed the CRG’s monthly report that was attached to the Agenda.  Geoff Peck stated that Ron Peters had two (2) questions for the IDA.  The first one was “What is the current asking price for raw land at Tryon?”  Jim Mraz said $27,500.  The second question was “What’s the status of the IDA’s rezoning of the Crossroads Business Park.”  Jim Mraz stated the IDA is not involved with rezoning of the Crossroads Business Park.  The rezoning of the Park is solely the responsibility of the City of Gloversville Common Council.

• Nothing new to report.

• Nothing new to report.

• Backup generator has been installed.
• National Grid has turned on gas to generator.
• Koval was at the site on March 7, 2023 to train County Facilities staff. Upon opening the cabinet to the generator, Koval discovered rust and corrosion in numerous locations on the generator.
• Koval summarized that salt spray from the truck that transported the generator to the site got up underneath the generator’s enclosure and caused the rust and corrosion.
• Given this finding, the training was cancelled.
• Koval contacted its supplier who contacted Generac to discuss what to do.
• Waiting to hear back from Generac on what they plan to do to address this issue.

1. Background:

• In 2021, the IDA authorized sales tax exemptions be provided to the proposed Benjamin Moore Project:

Total Project Cost                                                 :  $17,750,000
Total Costs Subject to Sales Tax                        :  $  9,000,000
Total Sales Tax Exemptions Approved             :  $     720,000

2. Requests to Increase Total Sales Tax Exemptions:

• In 2022, the IDA approved a request from Benjamin Moore to increase the total sales tax exemptions for their Expansion Project.
• In 2023, Benjamin Moore has submitted a second request to increase the total sales tax exemptions for their Expansion Project:

Proposed                                                             Original          2022 Revision      2023 Revision

Total Costs Subject to Sales Tax : $9,000,000   $10,400,000         $13,400,000
Total Sales Tax Exemptions :         $   720,000   $     832,000         $  1,072,000

• The reason cited by Benjamin Moore for making this request is inflation continues to drive up the cost of materials.

3. Public Hearing:

• General Municipal Law requires a public hearing when benefits exceeding $100,000 are proposed to be provided.
• This request would authorize an additional $240,000 in sales tax exemptions.
• A public hearing on this request for additional sales tax exemptions was held on Monday, February 27, 2023.
• No one spoke at the hearing.

4. Resolution:

• See attached Resolution.

IDA DISCUSSION:  Joe Semione recused himself from the meeting because he has a potential conflict of interest.  Joe Semione left the meeting at 8:10 a.m.  Jim Mraz reviewed the information on the Agenda.  He reviewed the Resolution that was attached.  He asked if there were any questions.  There were none.

IDA ACTION:

MOTION:                   To adopt a Resolution approving of an increase in sales tax exemptions in connection with the Benjamin Moore & Company Project.

MADE BY:                 Joe Gillis
SECONDED:             Dr. Greg Truckenmiller
VOTE:                        6 in favor, 0 opposed, 1 abstained (Semione)

(Joe Semione returned to the meeting at 8:13 a.m.)

1. Key Finding:

• Based upon West & Company’s review of the IDA’s 2022 financial records, West & Company has issued an “unmodified opinion.”
• This is the best opinion the IDA can receive.
• The IDA has consistently received unmodified opinions on its audits.
• Draft Audit was emailed to IDA Board members on March 7, 2023.

2. Handout from West & Company:

IDA DISCUSSION:   Jim Mraz stated that, due to the rescheduling of this month’s meeting from Tuesday to Friday, the West & Company was unable to be present to present the Draft Audit to the IDA Board.  He stated Mike Rossi has prepared a summary of the Audit Report.  Copies of Mike Rossi’s Summary were distributed to all IDA members, along with a copy of the draft Audit.  The IDA Board reviewed all of the information contained in Mike Rossi’s summary.  At the end of the discussion, Jim Mraz asked if there were any questions or comments on the Draft Audit?  There were none.

IDA ACTION:

MOTION:                   To approve the 2022 Audit as submitted by the West & Company and authorize West & Company and the Executive Director to file the Audit in PARIS and with Fulton County Treasurer, Commissioner of Department of Economic Development, NYS Comptroller and to post it on the IDA’s website.

MADE BY:                 Dr. Greg Truckenmiller
SECONDED:             Mike Fitzgerald
VOTE:                        Unanimous

• IDA’s 2022 Annual Report has been prepared in accordance with the ABO’s requirements.
• Report was e-mailed to IDA Board members on March 7, 2023.

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  He asked if there were any questions or comments regarding the Annual Report?  There were none.

IDA ACTION:

MOTION:                   To approve the 2022 Annual Report and authorize and direct the Executive Director to file the Annual Report under PARIS and with the Board of Supervisors and post the report on the IDA’s website.

MADE BY:                 Dave D’Amore
SECONDED:             Joe Semione
VOTE:                        Unanimous

1. Background:

• Kara Lais stated that the IDA closed on this project in December 2021. At that time, the project involved two (2) lots.
• After the closing, Hoffman’s subdivided property creating several lots.
• Kara Lais stated that, because of the subdivision, certain lots were created that should not be part of the PILOT.
• Kara Lais stated that the PILOT should only apply to the parcel that the carwash is located on.

2. Resolution:

• Kara Lais reviewed a Resolution that she proposed that would modify the Lease and PILOT Agreements to reflect that they should only apply to the parcel of land upon which the carwash project is located on.

IDA DISCUSSION:  Jim Mraz reviewed the information on the Agenda.  He asked if there were any questions?  There were none.

IDA ACTION:

MOTION:              To approve the Resolution approving certain amendments to the Lease Agreement and Payment In Lieu of Tax Agreement relating to the HDC2 Realty Gloversville LLC (Hoffman Carwash Project).

MADE BY:            Mike Fitzgerald
SECONDED:         Dave D’Amore
VOTE:                    Unanimous

1. Public Work Enhancement Fund:

a) Background:

• NYS Department of Labor has a Public Work Enhancement Fund that was established by Chapter 511 of the Laws of 1995 (as amended by Chapter 513 of the Laws of 1997, Chapter 655 of the Laws of 1999, Chapter 376 of the Law of 2003, and Chapter 407 of the Laws of 2005).
• This Law requires each State agency or public benefit corporation (IDA’s) that enters into a public work contract to pay one tenth (0.1) of one percent (0.01) of the total cost of the contract to this Fund.

b) Notice of Agency Responsibility:

• The IDA received, on February 7, 2023, a form from the NYTS Department of Labor. (See attached.)
• The form needs to be signed by the Chairman.

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  He stated that the IDA received a form from the NYS Department of Labor asking that it be signed by the IDA to acknowledge its responsibilities regarding this Public Work Enhancement Fund.  Jim Mraz stated that a motion would need to be made to authorize the Chairman to sign this form.  In addition, the IDA entered into a Public Works contract with Koval Contracting last year for the Generator Project at Tryon.  He stated the IDA should have issued a payment to the Department of Labor for that particular Public Works project.  As such, the motion should also authorize the issuance of a payment to the Public Works Enhancement Fund regarding that project.  Jim Mraz asked if there were any questions?  There were none.

IDA ACTION:

MOTION:                To authorize the Chairman to sign the Notice of Agency/Public Benefit Corporation Responsibility Form from the NYS Department of Labor and to authorize a payment in the amount of $78.20 to the Public Work Enhancement Fund regarding the Koval contract the IDA executed in 2022.

MADE BY:                 Dr. Greg Truckenmiller
SECONDED:             Dave D’Amore
VOTE:                        Unanimous

2. Fulton County’s 2018 Housing Strategy:

a) Key Findings:

1. There is a shortage of new single-family professional and executive level housing in the County.
2. There is a current and future need for a variety of housing options for empty nesters to accommodate their increased mobility, reduce maintenance demands and encourage the turn-over of housing that would appeal to younger families.
3. There is a shortage of mixed-use neighborhoods outside of the Cities. These types of neighborhoods appeal to the nation’s largest demographic segments: baby boomers and millennials.
4. There is strong current and future demand for new senior housing to meet changing lifestyles and accessibility needs in the form of apartments and patio homes which are smaller, easier to maintain and provide a good bridge to retirement for many households.
5. There are a number of formerly productive, but currently vacant, institutional and manufacturing properties. Some can be adaptively reused but others will need to be demolished, at least in part, and redeveloped.
6. The Cities need rich amenities to attract people to live in downtown. Mixed-use places with gathering spaces, public art, open space, recreation trails, attractive streetscapes, Wi-Fi access and adequate and safe parking are needed to meet the contemporary expectations of residents and visitors.  Housing is going to occur first in those communities that have these amenities.

b) Goals and Recommendations:

• See attached.

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  Joe Semione stated that one of the recommendations in the documents attached to the Agenda was to conduct a Housing Summit.  Dave D’Amore asked if anything had been done to organize that Summit?  Jim Mraz stated not much was done in that regard.  Dave D’Amore suggested that the IDA take a role in trying to get a Housing Summit conducted in 2023.  Jim Mraz stated that he will be participating in the monthly meeting between Ron Peters, Jon Stead, Scott Henze and himself next week.  He recommended that he bring this Housing Summit up at that meeting and suggest that the three (3) entities work together to try and conduct such a Summit in 2023.  All IDA members present thought that was a good approach to take.

1. Upon a majority vote of its total membership, taken in an open meeting pursuant to a motion identifying the general area or areas of the subject or subjects to be considered, a public body may conduct an executive session for the below enumerated purposes only, provided, however, that no action by formal vote shall be taken to appropriate public moneys:

i. matters which will imperil the public safety if disclosed;
ii. any matter which may disclose the identity of a law enforcement agent or informer;
iii. information relating to current or future investigation or prosecution of a criminal offense which would imperil effective law enforcement if disclosed;
iv. discussions regarding proposed, pending or current litigation;
v. collective negotiations pursuant to article fourteen of the civil service law;
vi. the medical, financial, credit or employment history of a particular person or corporation, or matters leading to the appointment, employment, promotion, demotion, discipline, suspension, dismissal or removal of a particular person or corporation;
vii. the preparation, grading or administration of examinations;
viii. the proposed acquisition, sale or lease of real property or the proposed acquisition of securities, or sale or exchange of securities held by such public body, but only when publicity would substantially affect the value thereof.

MOTION:  To go into Executive Session to discuss the proposed acquisition, sale or lease of real property or the proposed acquisition of securities, or sale or exchange of securities held by such public body, but only when publicity would substantially affect the value thereof.

MADE BY      :           Mike Fitzgerald
SECOND        :           Joe Semione
VOTE             :           Unanimous
TIME              :           8:47 a.m.

MOTION        :           To go out of Executive Session.

MADE BY      :           Dr. Greg Truckenmiller
SECOND        :           Sue Collins
VOTE             :           Unanimous
TIME              :           9:58 a.m.

1. Background:

• A Desktop Environmental Assessment (DEA) is an engineering evaluation of a tract of land.
• IDA Board budgeted funds to conduct DEA’s in 2023.

2. Proposals:

• IDA has received two (2) proposals to conduct DEA’s:
• Environmental Design Partnership :           $24,000
• C.T. Male :           $74,800 plus reimbursables

IDA DISCUSSION:   Dave D’Amore recused himself from the meeting because of a potential conflict of interest.  He left the meeting at 9:58 a.m.  Jim Mraz reviewed the information on the Agenda.  He asked if there were any questions?  There were none.

IDA ACTION:

MOTION:                 To authorize the Chairman to execute an agreement with Environmental Design Partnership in the amount of $24,000 to conduct Desktop Environmental Assessments.

MADE BY:                 Dr. Greg Truckenmiller
SECONDED:             Joe Semione
VOTE:

Yays                :           5
Nays                :           0
Absent             :           1 (Gillis)
Abstain            :           1 (D’Amore)

(Dave D’Amore returned to the meeting at 10:01 a.m.)

Tuesday
April 18, 2023
8:00 a.m.

MOTION        :           To close the meeting.
MADE BY      :           Sue Collins
SECONDED  :           Joe Semione
VOTE             :           Unanimous

TIME              :           10:02 a.m.