PRESENT:

___TODD RULISON, CHAIRMAN
___JOSEPH SEMIONE, VICE CHAIRMAN
___WILLIAM SULLIVAN, TREASURER
___JOE GILLIS, SECRETARY
___DIANA PUTNAM, MEMBER
___DAVE D’AMORE, MEMBER
___TIM MUNN, MEMBER
___KARA LAIS, IDA COUNSEL
___JAMES MRAZ, IDA EXECUTIVE DIRECTOR
___WILLIAM WALDRON, LIAISON
___RON PETERS, FULTON COUNTY CENTER FOR REGIONAL GROWTH
___MIKE ANICH, LEADER-HERALD

MOTION :
MADE BY :
SECONDED :
VOTE :

MOTION :
MADE BY :
SECONDED :
VOTE :

A. Nominating Committee

• No Report

B. Audit Committee:

• No report.

C. Governance Committee:

• No report.

D. Finance Committee:

•  No report.

A. Fulton County Center for Regional Growth: Ron Peters

B. Fulton County Board of Supervisors’ Economic Development Committee: Bill Waldron

• Fulton County’s Demolition Team commenced work on June 20, 2016 demolishing the cluster of six (6) buildings on the right side of the entrance to Tryon.

• Fulton County ordered 2’ x 6’ banners to hang on light poles along CR117 entering Tryon.
• Banners were installed on July 28, 2016.

A. Request for Proposal:

• At June 7, 2016 meeting, IDA authorized distributing a Request for Proposals (RFP) to commercial real estate brokers.
• Two (2) proposals were received on July 27, 2016 from:
  •  CBRE/Albany
  • Berkshire Hathaway
• Copies of proposals were e-mailed to IDA Board members on July 27, 2016.

B. Review Proposals:

• See Summary: Handout
• Does IDA Board desire to conduct interviews?

IDA DISCUSSION:
IDA ACTION:

MOTION:

MADE BY:
SECONDED:
VOTE:

A. Background:

• The IDA Board previously agreed to pursue repurposing just the “F” Wing of Building 3 into the Regional Business Training and Incubator Center.
• Fulton County Board of Supervisors agreed with this proposal.
• This proposal was presented to the Northern Borders Regional Commission (NBRC).
• The NBRC has given the okay to have its grant funds repurposed.

B. Request for Proposals:

• In response to the NRBR’s approval to repurpose their grant funds, a Request for Proposals (RFP) was distributed to engineering firms.
• The RFP asked for cost proposals to prepare an engineering evaluation on developing standalone HVAC, plumbing, electrical, water and sewer systems for the “F” Wing of Building 3.
• Proposals were received on August 3, 2016.
• The following proposals were received:

FIRM: C.T. Male
ADDRESS: Latham, NY
TOTAL FEE: $10,070

FIRM: McFarland Johnson
ADDRESS: Binghamton, NY
TOTAL FEE: $13,600

FIRM: M/E Engineering
ADDRESS: Schenectady, NY
TOTAL FEE: $14,800

FIRM: Friedman Fisher
ADDRESS: Albany, NY
TOTAL FEE: $23,800

IDA DISCUSSION:
IDA ACTION:

MOTION:

MADE BY:
SECONDED:
VOTE:

1. Background:

• IDA’s lease with the CIC expired on June 30, 2016.
• NBT has commenced a Foreclosure Proceeding against the property due to the CIC being delinquent on payments due NBT from a mortgage the CIC has on the property.
• Court has appointed Bill Keniry, Esq. from the law firm of Tabner, Ryan & Keniry in Albany, NY as the receiver to oversee operation, management and control of all aspects of 160 Enterprise Drive property.
• Kara Lais has been advised that NBT still intends to complete the foreclosure process

IDA DISCUSSION:

1. Status Report:

• Johnstown Renewables closed on the purchase of the 5.374+/- acre parcel from the IDA.
• The IDA received a payment from Johnstown Renewables (JR). All proceeds from the lot sale have been distributed.
• Johnstown Renewables started site work on July 19, 2016.

2. Financial Assistance:

• At its March 8, 2016 meeting, the IDA Board approved granting the following financial assistance to JR:
  • 485-b Real Estate Tax Exemption:
    • 50% exemption on real property taxes in year 1.
    • The exemption would decrease 5%/year.
    • The exemption would expire at the end of year 10.
  • Sales Tax Exemption:
    – Estimated $13 million of machinery and equipment would be purchased that would be subject to the Sales Tax Exemption.
  •  Mortgage Recording Tax Exemption:

3. Lease Agreement:

• Background:
  • In order to provide this financial assistance, the IDA must execute a Lease Agreement with JR.
  • The Lease would be for 10 years.
  • The structure of this Project will be a lease/leaseback.
  • Johnstown Renewable’s will lease the project facility to the IDA and the IDA will lease it back to Johnstown Renewables.
  • This structure will be used because the IDA’s interest is that of a leasehold, rather than fee ownership. There are some personal injury cases with situations during constructions where IDAs were named in lawsuits as a result of being the underlying landowner. It has become a “best practice” to now have projects structured as a lease/leaseback.
  • During the term of the Lease, JR would be responsible for all aspects of O & M on the project.

4. PILOT Agreement:

•  Background:
  • PILOT would be modeled after 485-b of the Real Property Tax Law.
  • This is the standard PILOT granted per the IDA’s Uniform Tax Exemption Policy.

5. Resolution:

• Kara Lais has prepared a resolution that would authorize the Chairman to execute the Lease, PILOT and all other documents.
• Resolution was e-mailed to IDA members on August 7, 2016

IDA DISCUSSION:
IDA ACTION:

MOTION: To adopt a Resolution authorizing the Execution and Delivery, by the Fulton County Industrial Development Agency, of a Lease Agreement and Related Documents in Connection with the Johnstown Renewables, LLC Project

MADE BY:
SECONDED:
VOTE:

Tuesday
September 13, 2016
8:00 a.m.

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