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
SCOTT HENZE, PLANNING DIRECTOR
DENIS WILSON, FULTON COUNTY CENTER FOR REGIONAL GROWTH

MOTION        :           Accept as presented.
MADE BY      :           Dr. Greg Truckenmiller
SECONDED  :           Sue Collins
VOTE             :           Unanimous

MOTION        :           Accept as presented.
MADE BY      :           Joe Semione
SECONDED  :           Dave D’Amore
VOTE             :           Unanimous

A. Nominating Committee

• No report.

B. Audit Committee:

• Monthly Bank Reconciliation Report:  Dave D’Amore

IDA DISCUSSION:  Dave D’Amore 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.)  Denis Wilson

• Nothing new to report.

1. Option Agreement:

• Option Agreement has been executed.

2. Invoice from Fitzgerald, Morris, Baker, Firth (FMBF):

• IDA received the following invoice from FMBF:
• Winstanley Enterprises Acquisitions LLC Purchase: $6,420.00
• IDA has received $7,500 from Winstanley to cover legal expenses.

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 a payment in the amount of $6,420 to Fitzgerald, Morris, Baker, Firth.

MADE BY:                 Sue Collins
SECONDED:             Joe Semione
VOTE:                        Unanimous

• Backup generator has been installed.
• National Grid has been contacted to turn on gas to generator.
• Once gas is turned on, Koval can start generator and provide training to County Facilities’ staff.
• Koval will be providing a 2-year Maintenance Agreement to the County.

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 will be scheduled for:

Monday
February 27, 2023
10:00 a.m.
Conference Room

• See attached Resolution.

IDA DISCUSSION:   Joe Semione stated that he has a conflict of interest with this Agenda item and left the meeting at 8:13 a.m.

Jim Mraz reviewed the information on the Agenda.  He then referenced the Resolution that was attached.  He asked if there were any questions.  Joe Gillis asked if there is a limit on the number of times a company can ask for an increase in the sales tax exemption?  Kara Lais stated, “No.”  Dave D’Amore asked if there was any way to ask a company to prove that it’s incurring increased costs?  Kara Lais stated that the IDA could ask a company to provide a revised project budget showing the increases in costs.  She stated this is not an unusual request and has been happening quite frequently in today’s market.  Jim Mraz stated that the company does provide proof of these increased costs in the reports it must file with the State.  Each year a company receiving sales tax exemptions must file a form with the State documenting the amount of costs they actually incurred in the previous year for which sales tax exemptions were granted.  He stated this proof is provided kind of after the fact.  Jim Mraz asked if there were any further questions.  There were none.

IDA ACTION:

MOTION:                   To adopt a resolution authorizing a public hearing with respect to the Benjamin Moore & Co. Project in connection with an increase of the authorized sales tax exemption.

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

(NOTE:  Joe Semione returned to the meeting at 8:19 a.m.)

1. Background:

• Each year, the IDA monitors all PILOT Agreements it has on projects to verify that PILOT payments are being made per the PILOT Agreements.
• Each year, the IDA sends a letter to every company it has a PILOT with asking that they fill out a PILOT Report.
• The IDA also sends a similar letter to all local taxing jurisdictions impacted by an IDA PILOT. The information from local taxing jurisdictions is used to compare against the information received from companies.
• Initial letters were sent out on November 22, 2022.
• Follow-up letters were sent out on ­December 21, ­­­­­­2022.

2. PILOT Reports were sent to the following:

a. Companies:

Vireo Health (sales tax only)
YMCA
CG Roxane
Benjamin Moore
Hoffman Carwash

b. Municipality/School Districts:

Fulton County
City of Johnstown
Town of Johnstown
Greater Johnstown School District
Fonda-Fultonville School District
Gloversville School District

3. Status Report:

• To date, the IDA has received responses from:

a. Companies:

Benjamin Moore
Hoffman Carwash
CG Roxane

b. Municipalities/School Districts:

Fulton County
Town of Johnstown
Greater Johnstown School District
Gloversville School District

• Two (2) issues were identified with PILOT payments. The local taxing jurisdictions were notified and are taking actions to address the issues.

4. As of January 1, 2023, the IDA has the following active projects:

5. As of January 1, 2023, the IDA has the following active PILOT Agreements:

NOTE:  IDA Board has approved granting a PILOT to Vireo Health of NY but the PILOT Agreement has yet to be executed.

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

1. Proposed 2023 Goals:
   

a) Identify and develop shovel-ready sites.
b) Work with the City of Gloversville to find alternate uses for the Crossroads Business Park.
c) Support the FCCRG and Fulton County’s efforts at Brownfield’s remediation.
d) Seek grant funding to perform asbestos abatement and demolition work at buildings at Tryon.
e) Hold a joint meeting between the FCCRG and IDA Boards.
f) Continue Board training.
g) IDA participate in a Countywide discussion on housing.

2. Review Strategies Contained in 2016 and 2022 Labor Market Analysis Reports:

• See attached.

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  He then reviewed the strategies contained in the two (2) Labor Market Analysis Reports that were attached to the Agenda.  There was a general discussion about housing.  It was suggested that another goal be added that the IDA participate in a Countywide discussion on housing as a goal for 2023.

IDA ACTION:

MOTION:                   To adopt these goals for 2023.

MADE BY:                 Mike Fitzgerald
SECONDED:             Sue Collins
VOTE:                        Unanimous

• Funds invested into Treasury Bills on Tuesday, August 16, 2022.
• Funds were invested in 3-month, 6-month, 9-month and 12-month T-Bills.
• Interest rates were:

3-month      :               2.37%    matures:                11/17/22
6-month      :               2.89%    matures:                2/16/23
9-month      :               2.91%    matures:                5/18/23
12-month    :               3.18%    matures:                8/10/23

• The first 3-month T-Bill was reinvested for 12 months at an interest rate of 4.540% and is set to expire on November 2, 2023.
• The second 6-month T-Bill is set to expire on February 16, 2023.
• Current interest rates as of February 8, 2023 are:

3-month      :               4.36%
6-month      :               4.67%
9-month      :               4.62%
12-month    :               4.72%

• The plan was to reinvest the second T-Bill for another 12 months.

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  He stated that the plan is to reinvest this second T-Bill for another 12 months.  He stated because of the current rates being favorable, he recommended that the IDA consider investing another $500,000 into a 6-month T-Bill.  He suggested a  6-month T-Bill because it is a shorter timeframe in the event that the IDA needed funds and the fact that the rate for the 6-month T-Bill is almost the same as the 12-month T-Bill.  After a brief discussion, it was the unanimous consensus of all members present to invest another $500,000 into a 6-month T-Bill.

IDA ACTION:

MOTION:                   Authorize the CFO to renew the existing T-Bill for 12 months and to invest another $500,000 into a 6-month T-Bill.

MADE BY:                 Joe Semione
SECONDED:             Joe Gillis
VOTE:                        Unanimous

1. ABO requires IDA’s to annually file an ST-62 Form titled “IDA Annual Compliance report State Sales Tax Recapture.”
2. The ST-62 asks if an IDA:

• Granted any new sales tax exemption in the previous calendar year.
• Amended any sales tax exemptions in the previous calendar year.
• Moved to recapture sales tax benefits given to a company in the previous calendar year.

3. In 2022, the IDA:

• Amended the amount of sales tax exemptions for the Benjamin Moore Expansion Project.
• Did not move to recapture any sales tax benefits.
• Did not approve any new sales tax exemptions.

4. IDA Chairman needs to be authorized to sign and submit this ST-62 for the fiscal year ending December 31, 2022.
5. ST-62 must be filed by March 31, 2023.

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  He referenced the ST-62 Form that was attached to the Agenda.  He asked if there were any questions.  There were none.

IDA ACTION:

MOTION:             To authorize the Chairman to sign and submit an ST-62 Form for fiscal year ending December 31, 2022.

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

1. Key Reporting Dates for 2023:

2. Three (3) new laws were signed by Governor Hochul that will impact IDA’s:

a. Chapter 766 of the Laws of 2022 – Effective January 1, 2023 – Sending Initial Resolutions and Deviation Notices to Affected Taxing Jurisdictions:

This new law requires IDA’s to send copies of the following resolutions by certified mail, return receipt requested, to the chief executive officers of each affected taxing jurisdiction (“ATJ”):

1. Initial resolutions describing proposed IDA projects.
2. Resolutions describing any proposed deviation from an IDA’s Uniform Tax Exemption Policy, or UTEP.

This new law requires IDA’s to send its “Inducement Resolution” by certified mail, return receipt requested to:

1. The chief executive officers of each ATJ.
2. Where a school district is involved, the certified mailing should be sent to both the School Board and School Superintendent. Likewise, any Deviation Notices must now be sent in the same fashion.

b. Chapter 708 of the Laws of 2022 – Effective February 14, 2023 – Sending Notices for PILOT Agreement Expirations and Terminations:

This new law will require IDA’s to send notices of expiration for all PILOT Agreements at least two (2) years prior to the contract end date, or immediately if a PILOT Agreement is otherwise terminated for any reason.

This new law requires IDA’s to send notices of expiration for PILOT Agreements to ATJ’s at least two years prior to the contact expiration date, and immediately if terminated sooner.  This notice mechanism will help IDA’s and ATJ’s better manage the process for transitioning exempt parcels from Roll Section 8 (exempt) to Roll Section 1 (taxable) when PILOT Agreement expire or are terminated.  The expiration and termination notices will allow IDA’s and ATJ’s to work cooperatively to both anticipate and budget for PILOT expirations, and to also work with local assessors to confirm the process and timing for issuance of regular tax bills.

c. Chapter 799 of the Laws of 2022 – Effective December 28, 2022 – Notice of Assessment Challenges:

This new law requires any person or entity making payments under a PILOT Agreement to provide written notification to any agency (IDA) and/or any ATJ’s receiving PILOT payments at least 45 days before filing for a change of assessment.

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      :           Dr. Greg Truckenmiller
SECOND        :           Joe Semione
VOTE             :           Unanimous

TIME              :           8:40 a.m.

MOTION        :           To go out of Executive Session.

MADE BY      :           Joe Gillis
SECOND        :           Dr. Greg Truckenmiller
VOTE             :           Unanimous

TIME              :           9:50 a.m.

Tuesday
March 14, 2023
8:00 a.m.

MOTION        :           To close the meeting.

MADE BY      :           Mike Fitzgerald
SECONDED  :           Todd Rulison
VOTE             :           Unanimous