PRESENT:

MIKE FITZGERALD, CHAIRMAN
SUE COLLINS, VICE CHAIRMAN
TODD RULISON, TREASURER
JOSEPH SEMIONE, MEMBER
DAVID D’AMORE, MEMBER
GREG TRUCKENMILLER, MEMBER
JAMES MRAZ, EXECUTIVE DIRECTOR
KARA LAIS, FITZGERALD, MORRIS, BAKER, FIRTH PC
SCOTT HENZE, PLANNING DIRECTOR
TIM BECKETT, FULTON COUNTY CENTER FOR REGIONAL GROWTH

MOTION        :           Accept as presented.
MADE BY      :           Dr. Greg Truckenmiller
SECONDED  :           Dave D’Amore
VOTE             :           Unanimous

MOTION        :           Accept as presented.
MADE BY      :           Mike Fitzgerald
SECONDED  :           Sue Collins
VOTE             :           Unanimous

A. Nominating Committee

• No report.

B. Audit Committee:

• Monthly Bank Reconciliation Report:  Todd Rulison

IDA DISCUSSION:  Todd Rulison 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.)  Tim Beckett

IDA DISCUSSION:  Tim Beckett reviewed the FCCRG Report that was attached to the Agenda.  Upon completion of his report, Joe Semione asked what the interest rates are for the loans that the CRG is issuing?  Tim Beckett stated they are typically what the NBT thirty (30) year mortgage rate is plus 1%.  He stated that the CRG loans are typically shorter terms in the 1 to 3 year range.

Tim Beckett stated that the FCCRG Board just completed a retreat at which time they established certain goals for their organization.

1. Request to Extend Option Period:a. Background:

• At June 14, 2022 meeting, IDA Board agreed to extend Option Term in Lease Agreement to December 31, 2022.
• At September 6, 2022 meeting, IDA Board agreed to extend Option Term in Lease Agreement to June 25, 2023.

b. Request to Extend Option Period:

• Nexus has requested that the Option Period be extended to December 31, 2023.

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  Joe Semione asked if the IDA has ever been approached by other solar companies regarding the parcel Nexus Renewables is interested in?  Jim Mraz stated, “No.”  Joe Semione asked if Nexus Renewables does not move forward with their project, could the IDA offer this parcel to other solar companies?  Jim Mraz said, “Yes.”  Todd Rulison asked what the downside would be for not granting this extension.  Jim Mraz stated it would result in a loss of annual lease revenues that the IDA is expecting from this project.

IDA ACTION:

MOTION:                   To authorize the Chairman to execute the Amendment to the Amended and Restated Solar and Energy Storage Lease Agreement with Nexus Renewables to extend the Option Period through December 31, 2023.

MADE BY:                 Joe Semione
SECONDED:             Todd Rulison
VOTE:                        Unanimous

1. Power at Tryon:

• Tryon is currently served by a 13.2 kv distribution level electric line.
• Projects requiring 2.5+/- megawatts of power, National Grid (NG) is required to provide power for those sized projects.
• However, in order to attract larger power using projects to Tryon, a 115 kv transmission line would need to be extended to Tryon.

2. Initial Steps:

• On March 29^th, Jim Mraz participated in a MS Teams meeting with Winstanley Enterprises (WE) to discuss how to move forward with contacting NG. WE was advised to call NG’s 800 number to establish a work request to bring more power to Tryon.
• WE agreed to call NG’s 800 number to initiate a work request.
• WE called the 800 number. NG advised that they required an E911 address for the property before they could issue a work request number.
• Scott Henze contacted the Sheriff’s Department to get an E911 address. The Sheriff’s Department is responsible for issuing new E911 addresses.
• An E911 address was provided to WE. WE then contacted NG. NG provided WE with a work request number.
• Efforts are now being made to identify those people from NG and WE who should be participating in the discussion of what options are available to bring more power to Tryon.

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

1. Background:

• 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.

2. Status Report:

• Generac’s supplier offered the following to address this issue:

– Clean entire engine, alternator section and repaint.
– Take apart, inspect, clean and lubricate all wiring connections to ensure proper connections.
– Replace any misc. item that is rusted (clamps, fittings, etc.).
– Add a 5-year warranty to the unit once Start-up is performed.
– Guarantees the unit to be 100% functional once repairs are completed.

• At the last meeting, IDA Board did not accept this offer. It was agreed to request that the damaged unit be replaced.  Immediately after the meeting, I emailed Koval and advised that the IDA Board did not accept that initial offer and instead wanted the following:

– Supply and install a new generator.
– Clean and put into use the damaged generator and allow it to be used until the new generator is supplied and installed.
– Maintain the damaged generator until the new one is installed.

• Several days later, Koval provided the following response:

– Stark, the supplier, will supply a new unit to replace the existing.
– EPS, Stark’s service company, will perform start-up services on the new unit once Koval has the wiring and gas connected.
– The new generator will carry the same 2-year warranty the original unit had.

• Stark was supplying another project with 2 generators of the same size as the one they shipped to Tryon. A change was made with that other project resulting in the project no longer needing these 2 generators. Stark agreed to ship one of those 2 new generators to Tryon to replace the damaged generator.
• Koval provided a submittal on this new generator. This submittal was sent to Environmental Design Partnership to review to ensure it’s the same make/model as the damaged generator. Travis Mitchell responded by saying it’s the same generator except for 2 differences:

1. The new generator has a better sound enclosure. The damaged generator has a Class I enclosure and the new one has a Class III.  The Class III enclosure is quieter.
2. The new generator has a Battery Heater Pad. The damaged generator did not.

• Travis Mitchell advised that both of these features are more expensive items.
• Koval is waiting for the new generator to be delivered.

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

1. Background:

• Any company receiving sales tax benefits is required to file an ST-340 Form with the NYS Department of Taxation and Finance.
• ST-340’s must be filed by the end of February for the previous year.
• ABO wants IDA’s to review these forms to verify that the project met or exceeded its total project cost.

2. Vireo Health Project:

• In 2021, the IDA authorized sales tax exemptions be provided to the proposed Vireo Health Project.
• Total Project Cost : $55,000,000
• Total Costs Subject to Sales Tax : $22,144,000
• Total Sales Tax Exemptions Approved : $  2,251,520
• Total Sales Tax Exemptions Claimed in 2021 : $ 1,086,510
• Total Sales Tax Exemptions Claimed in 2022 : $ 1,010,843
• Total Sales Tax Exemptions Available : $     154,167
• Original Deadline for Using Exemptions : July 31, 2022
• Revised Deadline for Using Exemptions : May 31, 2023

Note:  On August 9, 2022, IDA Board authorized increasing the total sales tax exemptions from $2,251,520 to $3,284,535 contingent upon Vireo signing a standard Lease or Agent and Equipment Least.  To date, Vireo has not signed either, so the total sales tax exemptions available to Vireo remains at $2,251,520.

3. Hoffman Carwash Project:

• In 2021, the IDA authorized sales tax exemptions be provided to the proposed Hoffman Carwash Project.
• Total Project Cost : $  6,600,000
• Total Costs Subject to Sales Tax : $  3,700,000
• Total Sales Tax Exemptions Approved : $     296,000
• Total Sales Tax Exemptions Claimed in 2021 : $    47,392.99
• Total Sales Tax Exemptions Claimed in 2022 : $ 148,356.87
• Total Sales Tax Exemptions Unused :  $    100,250.14
• Deadline for using Sales Tax Exemptions : August 31, 2022

4. Benjamin Moore Project:

• In 2020, 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
• In 2022, total costs subject to sales tax : $10,400,000
• In 2023, total costs subject to sales tax : $13,400,000
• Total Sales Tax Exemptions Approved : $     720,000
• In 2022, the total Sales Tax Exemptions Approved was increased to $832,000.
• In 2023, the total sales tax exemptions was increased to $1,072,000.
• Total Sales Tax Exemptions Claimed in 2020 : $ 00
• Total Sales Tax Exemptions Claimed in 2021 : $ 637,280
• Total Sales Tax Exemptions Claimed in 2022 : $ 359,289.45
• Total Sales Tax Exemptions still Available : $      74,450.55
• Deadline for using Sales Tax Exemptions : June 30, 2023

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda regarding the three (3) projects it receives sales tax exemptions in 2022.  He stated that Vireo Health and Benjamin Moore still have time in 2023 to take additional exemptions.  He stated the Hoffman’s project is complete and no further sales tax exemptions will be taken.

Jim Mraz stated that he sent the information shown in the Agenda to both Vireo Health and Benjamin Moore and asked that they verify that the information is correct.  Benjamin Moore responded by saying the information is correct.  He stated he has not received a response from Vireo Health.  He stated that he has made Vireo Health aware of the fact that their ability to take sales tax exemptions is set to expire at the end of May.

• A Request for Quotes (RFQ) was distributed to four (4) companies/individuals to mow lawn at the Tryon Technology Park in 2023.
• Quotes were received on April 6, 2023
• Quotes based upon performing the following work:

– Finish Mowing :               9
– Brush Hog :               3
– Brush Hog :               2

• The number of finish mowings was increased from 7 to 9.
• Following quotes were received:

• Previous Year Costs:

2014             :               $5,160                   :               Greenscapes
2015             :               $8,820                   :               Evergreen
2016             :               $7,520                   :               Greenscapes
2017             :               $8,500                   :               James Esper
2018             :               $10,700                 :               James Esper
2019             :               $8,934                   :               Evergreen
2020             :               $6,480                   :               Greenscapes
2021             :               $6,628                   :               Evergreen
2022             :               $6,340                   :               James Esper

IDA DISCUSSION:   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 sign an Agreement with James Esper Landscaping in the amount of $7,440 to provide lawn mowing services and weeding/mulching around the entrance sign at the Tryon Technology Park in 2023.

MADE BY:                 Sue Collins
SECONDED:             Dave D’Amore
VOTE:                        Unanimous

• All of the following reports were successfully filed under PARIS prior to the required filing date of March 31, 2023:

– Annual Report
– Certified Financial Audit
– Investment Report
-Procurement Report

• Distribute PARIS Report for Board members to review.

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

1. NYSEDC’s Spring IDA Academy:

• Dave, Greg and Scott attended the Conference.

IDA DISCUSSION:   Dave D’Amore stated this was the first such session that he has attended and stated that he would be attending again in the future.  He encouraged other IDA members to also attend future meetings of this type.  Greg Truckenmiller stated that the key topics discussed were housing, energy and best practices.  He stated that there is a clear push for green energy projects.  He stated IDA’s were encouraged at this session to get involved with clean energy projects.  He stated an emphasis was made that IDA’s can support green energy projects even though they may not create a lot of jobs.  The same was said for housing.  A number of comments were made that IDA’s shouldn’t worry about job creation with respect to housing because new housing projects create other types of economic benefits.  There was a discussion of how IDA’s need to have flexibility in their Uniform Tax Exemption Policies.

Dave D’Amore talked about how IDA’s are looking to move beyond being just industrial and more into community development.  There was a discussion about Mission Statements of how IDA’s should review their Mission Statements and narrow them so they are only six (6) words long.  Dave D’Amore referenced how Broome County has gotten rid of its 485-b model PILOT and is looking to evaluate projects on a case-by-case basis.  He stated there were comments made at the session about how housing projects will require 30-year PILOTS.  Kara Lais stated that the NYS statutes creating IDA’s does not specifically authorize IDA’s to be involved in housing projects.  She stated there is a case law in place that does allow IDA’s to pursue housing projects.  She stated that IDA’s per case law can be involved with both market rate and affordable type housing.

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      :           Dave D’Amore
SECOND        :           Mike Fitzgerald
VOTE             :           Unanimous
TIME              :           8:51 a.m.

MOTION        :           To go out of Executive Session.

MADE BY      :           Joe Semione
SECOND        :           Sue Collins
VOTE             :           Unanimous
TIME              :           10:02 a.m.

Tuesday
May 9, 2023
8:00 a.m.

MOTION        :           To close the meeting.

MADE BY      :           Sue Collins
SECONDED  :           Mike Fitzgerald
VOTE             :           Unanimous
TIME              :           10:02 a.m.