PRESENT:

JOSEPH SEMIONE, CHAIRMAN
JANE KELLEY, VICE CHAIRMAN
MIKE FITZGERALD, TREASURER
TODD RULISON, MEMBER
DAVID D’AMORE, MEMBER
JAMES MRAZ, EXECUTIVE DIRECTOR
KARA LAIS, FITZGERALD, MORRIS, BAKER, FIRTH PC
SCOTT HENZE, PLANNING DIRECTOR
KENT KIRCH, FULTON COUNTY CENTER FOR REGIONAL GROWTH
BETSY EMERY, EMERY DESIGNS

Aye         Nay         Abstain           Absent

Joe Semione                   X           ___         ___               ___
Jane Kelley                   X           ___         ___               ___
Mike Fitzgerald               X           ___         ___               ___
Joseph Gillis                 ___         ___         ___               X
Todd Rulison                        X           ___         ___               ___
Dave D’Amore                        X           ___         ___               ___

MOTION        :           Accept as presented.
MADE BY      :           Dave D’Amore
SECONDED   :           Mike Fitzgerald
ROLL CALL VOTE               :
Aye         Nay         Abstain           Absent

Joe Semione                   X           ___         ___               ___
Jane Kelley                   X           ___         ___               ___
Mike Fitzgerald               X           ___         ___               ___
Joseph Gillis                 ___         ___         ___               X
Todd Rulison                        X           ___         ___               ___
Dave D’Amore                        X           ___         ___               ___

NOTE:  A transcript of the February 9, 2021 meeting has been prepared and posted on the IDA’s website in compliance with Governor Cuomo’s Executive Order suspending the Open Meetings Law.

MOTION        :           Accept as presented.
MADE BY      :
SECONDED   :
ROLL CALL VOTE               :
Aye         Nay         Abstain           Absent

Joe Semione                   X           ___         ___               ___
Jane Kelley                   X           ___         ___               ___
Mike Fitzgerald               X           ___         ___               ___
Joseph Gillis                 ___         ___         ___               X
Todd Rulison                        X           ___         ___               ___
Dave D’Amore                        X           ___         ___               ___

A. Nominating Committee

• No report.

B. Audit Committee:

• Monthly Bank Reconciliation Report: Joseph Semione

IDA DISCUSSION:  Joe Semione 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.)  Kent Kirch

IDA DISCUSSION:  Kent Kirch reviewed the FCCRG’s monthly report that was attached to the Agenda.  He stated that the CRG is marketing a site at Tryon to a perspective company.  He stated two (2) of the main initiatives ongoing with the CRG is the Microenterprise Grant Program and Workforce Development.  He stated the CRG is adding a job listing component to its website.  This was done in response to meetings with local businesses who indicated they are having difficulty selling jobs.

Kent Kirch stated that the CRG has applied for funds from the Mohawk Valley Economic Development District to conduct a Site Assessment Study.  This Study will identify potential new sites for development.  He stated the money is coming from a grant from the Mohawk Valley Economic Development District and National Grid.  This Study may also include identifying a megasite.  He stated proposals are due to MVED tomorrow.  He stated the CRG plans to reach out to the IDA to assist in this project.  He stated more should be known on this effort by the end of this week.  Joe Semione asked what the Study would consist of.  Kent Kirch stated he was not sure of the details other than it would be identifying potential new sites for development within Fulton County.  Jim Mraz asked who was receiving proposals for this Study?  Kent Kirch stated the Mohawk Valley Economic Development District.  Jim Mraz asked if the funds being received by MVED were to be used in all six (6) counties of the Mohawk Valley Development District or just Fulton County?  Kent Kirch stated the Study would be specific to Fulton County.

• Betsy Emery, Emery Designs, has completed the update to the IDA’s website.
• The new website has the following tabs on the Home Page:

1. Incentives
2. Resources:
   – Shovel Ready Sites
   – Development Areas

3. About Us:
   – Staff
   – Board of Directors
   – Meetings
   – Projects
   – Policies
   – Documents
   – What Site Selectors Say

4. Doing Business in Fulton County:
   – Labor Force
   – Education
   – Workforce Training
   – Strategic Location
   – Quality of Life
   – Top Employers/Local Economy
   – By the Numbers
   – Development Areas

5. Partners:
   – Fulton County Center for Regional Growth
   – Fulton Montgomery Regional Chamber of Commerce
   – County Government

6. Contact

IDA DISCUSSION:    Betsy Emery presented the IDA’s revised website to IDA Board members.  She stated that the update was done because the nature of websites and how they function is changing.  She stated websites also now need to be engaged with the viewer.  She stated that at the onset of this initiative, the website should be targeted to those focused on Site Selectors.  She stated she interviewed several Site Selectors, as well as a customer developer.  Some of the input received included:

1. The website must be easy to find, be responsive and attractive. She stated the revised website is responsive and looks good on a P.C., phone, tablet or notebook.
2. Information on the website must be current, relevant, and in real time specifically with respect to information on workforce. She stated a significant amount of information was added on the website regarding workforce training and education.
3. A list of top employers in the County.
4. Available sites.
5. Contact information.

Betsy Emery reviewed numerous pages of the website with IDA Board members.  She asked if there were any questions.  Several comments were made regarding how good the website looks.  Dave D’Amore and Joe Semione both thanked Betsy for her work on updating the website.

1. Interconnection Cost:

• National Grid will be installing the electric lines from Nexus’ solar projects to where the lines would interconnect into National Grid’s electric system.
• National Grid recently advised Vireo what the cost would be to interconnect Nexus’ solar project into National Grid’s electric system.
• The cost makes Nexus’ project cost prohibitive.
• A major component of the cost is running the electric lines underground.

2. Original Plan to Interconnect Solar Projects into National Grid’s Electric System:

a. Route:

• The IDA Board previously approved granting Nexus a 30’ wide easement from CR117 along the eastern border of the parcel Vireo occupies to the parcel Nexus will be leasing form the IDA for its solar project.
• The electric lines were to be installed along this easement to CR117, then along CR117 to the secondary access road that runs from CR107 to CR117 and then interconnect those electric lines into National Grid’s electrical system.
• National Grid recently advised Nexus that this route for running Nexus’ electric lines would not work because National Grid felt these lines would interfere with the new underground electric service National Grid installed at Tryon along CR117.
• As a result, Nexus had to find a new route for its electric lines.

b. Underground Lines:

• The electric lines were to be installed underground along this route.

3. Revised Plan for Interconnecting Solar Project into National Grid’s Electric System:

a. Route:

• Nexus identified one (1) feasible alternative route for their electric lines.
• The route would run along the rear property line of the parcel Vireo occupies and then across IDA-owned land between the pond and wastewater pump station and then interconnect into National Grid’s overhead lines that exist along the secondary access road.
• Vireo Health has been advised of this proposed alternative route and has tentatively agreed to provide a 40’ wide easement along their rear property line for these electric lines.
• The easement would be with National Grid.

b. Overhead Lines:

• The electric lines would be run overhead to reduce the interconnect cost.

4. Project Size:

• National Grid has also de-rated Nexus’ solar project from 8.1 MWdc to 3.0 MWdc.
• The project will remain on the same leased area but occupy a smaller footprint.
• There will still be four (4) individual solar projects. Project #1 will be smaller as shown below:

5. Lease Agreements:

• The IDA will need to execute revised leases that will reflect the revised size of the solar project.

IDA DISCUSSION:    Jim Mraz reviewed the information on the Agenda.  He stated that the revised route for the interconnection, as well as having the lines run overhead, will keep the project financially feasible.  He asked the IDA Board if they were comfortable supporting the revised route, having the lines run now overhead, as well as the change in the project size.  All members present expressed their support of these changes.  Dave D’Amore asked if the downsizing of the project will impact revenues?  Jim Mraz stated that the revenues that the IDA would generate from the lease will not change.  The revenues the IDA would generate from the Power Purchase Agreement will be reduced given that the project will be generating less solar energy.  Joe Semione asked if the project was going to be undertaken this year?  Jim Mraz stated that Nexus is gearing up to start construction soon and hopes to have the project complete and operational by the end of 2021.  Jim Mraz asked if there were any further questions.  There were none.

IDA ACTION:

MOTION:                   To approve the revised route for the interconnection, to have the lines run along this route aboveground and to approve the reduction in size of the project.

MADE BY:                 Dave D’Amore
SECONDED:              Joe Semione
ROLL CALL VOTE               :
Aye         Nay         Abstain           Absent

Joe Semione                   X           ___         ___               ___
Jane Kelley                   X           ___         ___               ___
Mike Fitzgerald               X           ___         ___               ___
Joseph Gillis                 ___         ___         ___               X
Todd Rulison                        X           ___         ___               ___
Dave D’Amore                        X           ___         ___               ___

1. Key Finding:

• Based upon West & Company’s review of the IDA’s 2020 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.
• Audit was emailed to IDA Board members on February 25, 2021.

2. Presentation by West & Company:

IDA DISCUSSION:    Mike Rossi stated that West & Company has prepared two (2) separate audits.  The first was the Schedule of Investments.  He stated, on pages 1 and 2 of the Investment Audit, is West & Company’s opinion that the numbers presented fairly.  He stated that, on page 3, the report states that the IDA actually has no investments.  He stated this is because the IDA has all of its money in both a Money Market and checking accounts.  Money Markets are not considered investments because it has a less than 1-year maturity.

With respect to the audit of the IDA’s financial statements, Mike Rossi stated, on page 1, the report says that the evidence that was presented to the West & Company was both sufficient and appropriate for them to develop an opinion.  He stated the West & Company has issued an “unmodified opinion” which is the highest opinion that can be obtained and the same one that the IDA has consistently received over the years.  He stated pages 3-11 represent the Management Discussion and Analysis (MDA).  The MDA provides a narrative of what the IDA does.  He stated the Audit starts on page 12.  Page 13 is the income statement.  Pages 15-19 are the notes to the Audit which have no changes from previous audits.  He stated, on page 20, West & Company offers a second opinion on the financial reporting.  He stated that the IDA books and records are good and that the agency is well run.  He stated West & Company also issued an “unmodified opinion” on the financial reporting system for the IDA.

Mike Rossi reviewed the Schedule of Bonds on page 22 and referenced the Code of Ethics that has to be included into the Audit.

Mike Rossi stated that West & Company would prefer to have the IDA’s financial record system using Quick Books versus Quicken.  However, he stated West & Company is still able to understand the financial records the CFO provides on Quicken.  Dave D’Amore asked why the IDA uses Quicken versus Quick Books.  Jim Mraz stated that it is simply a personal preference on the part of the CFO.  Carol has utilized Quicken for many years now and is comfortable using it.

IDA ACTION:

MOTION:                   To approve the Audits 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 Comptrollers and to post it on the IDA’s website.

MADE BY:                 Mike Fitzgerald
SECONDED:              Jane Kelley
ROLL CALL VOTE               :
Aye         Nay         Abstain           Absent

Joe Semione                   X           ___         ___               ___
Jane Kelley                   X           ___         ___               ___
Mike Fitzgerald               X           ___         ___               ___
Joseph Gillis                 ___         ___         ___               X
Todd Rulison                        X           ___         ___               ___
Dave D’Amore                        X           ___         ___               ___

• IDA’s 2020 Annual Report has been prepared in accordance with the new requirements recently enacted.
• Report was e-mailed to IDA Board members on February 18, 2021.

IDA DISCUSSION:    Jim Mraz reviewed the form and content of the Annual Report.  He asked if there were any questions on the form and content of the Report?  There were none.

IDA ACTION:

MOTION:                   To approve the 2020 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:                 Todd Rulison
SECONDED:              Mike Fitzgerald
ROLL CALL VOTE               :
Aye         Nay         Abstain           Absent

Joe Semione                   X           ___         ___               ___
Jane Kelley                   X           ___         ___               ___
Mike Fitzgerald               X           ___         ___               ___
Joseph Gillis                 ___         ___         ___               X
Todd Rulison                        X           ___         ___               ___
Dave D’Amore                        X           ___         ___               ___

1. Background:

• In 2020, the IDA authorized sales tax exemptions be provided to the proposed Benjamin Moore Expansion Project.
• Benjamin Moore was authorized to receive up to $720,000 in sales tax benefits.

2. Sub-Agent:

• Benjamin Moore requested that Plank Construction, their General Contractor, be set up as a Sub-Agent for obtaining sales tax exemptions.
• Benjamin Moore filed all of the required documents with the IDA to have Plank Construction designated as a Sub-Agent.

3. ST-340:

• 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.
• Plank Construction filed their ST-340 with T & F. See attached.
• ABO wants IDA’s to review these forms to verify that the project met or exceeded its total project cost.

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

1. Background:

• IDA granted sales tax exemptions to Century Linen based upon, in part, several material terms:

Private Investment :      $6,412,060.
Full-Time Equivalent Jobs Retained :           100
Full-Time Equivalent Jobs Created :           32

• PAAA requires that companies receiving IDA financial benefits must document to the IDA that these material terms were achieved.

2. Certification:

• Century Linen has submitted a letter to the IDA certifying the following:

Actual Private Investment :      $7,029,793
Actual Full-Time Equivalent Jobs Retained :           100
Actual Full-Time Equivalent Jobs Created :           61

• See attached.

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

1. Key Reporting Dates:

2. Administering a Fulton County IDA Project:

A person, business, corporation or other entity seeking financial assistance from the Fulton County Industrial Development Agency (IDA) must follow a certain procedure to obtain these benefits.  The following is a step-by-step description of that process:

1. A person, business, corporation or other entity contacts the Executive Director to discuss a proposed project. The Executive Director asks for a 1-2 paragraph description of the proposed project, projected private investment, number of new jobs to be created, existing jobs to be retained and a project schedule.

2. Upon receipt of that information, the Executive Director sends it to IDA Counsel to review and determine if the proposed project is eligible, under New York State’s General Municipal Law, to receive financial incentives from the IDA.

3. If the project is eligible, the Executive Director advises the person, business, corporation nor other entity to have their Counsel contact IDA Counsel to determine the structure of the proposed project. The structure must be identified in the final Project Application.

4. If the project is eligible, the Executive Director advises the person, business, corporation or other entity to prepare a draft Project Application and submits it to the Executive Director. The Executive Director reviews and provides comments back.  A final Project Application is then prepared and officially submitted to the IDA through the Executive Director.

5. The Executive Director distributes the Project Application to IDA Board members and IDA Counsel.

6. The Executive Director calculates the real property tax exemptions requested in Section 7 of the Project Application and sends it to IDA Counsel.

7. The Executive Director puts the Project Application onto the Agenda for the next IDA Board meeting.

8. The Executive Director establishes a Project Number based upon the coding system established by the NYS Comptroller. The structure of this coding system utilized a 9 character code to establish a unique identification code for each IDA project.  The first four characters (1-4) are numbers which indicate a specific Industrial Development Agency or Authority (IDA).  The Fulton County IDA’s number is 1701.  The next two characters (5-6) are numbers which represent the calendar year in which the IDA creates the project.  The next 2 characters (7-8) represent the sequential order for projects initiated within a calendar year for an individual IDA.  The last character (9) is a letter.  This letter is used to identify different phases of individual projects.  The first phase of all projects will be assigned the letter A.  Each additional phase, if any, will be sequentially assigned the next letter of the alphabet.

9. At the first IDA Board meeting:

a) The Project Application is reviewed and discussed.
b) The financial incentives requested in the Project Application are reviewed and discussed.
c) The IDA Board takes an action to commence a Coordinated SEQR Review by:Classifying the proposed project.

• Proposing itself to serve as Lead Agency.
• Authorizing the distribution of the Part I Environmental Assessment Form (EAF) to all Involved Agencies asking for their consent to having the IDA serve as Lead Agency.

d) If the Project Application requests financial incentives greater than $100,000, the IDA Board:

• Adopts a resolution scheduling the date and time to conduct a public hearing on the proposed project.
• Schedules the public hearing to be in the municipality where the proposed project would be located.

10. Following the first IDA Board meeting:

a) IDA Counsel sends a legal notice to the Leader Herald to publish regarding the public hearing.
b) IDA Counsel sends letters, by certified mail, to each taxing jurisdiction, informing them of the public hearing.
c) Executive Director sends a letter and a copy of the Part I EAF to all Involved Agencies asking for their consent to having the IDA Board serve as SEQR Lead Agency.
d) Executive Director makes the necessary arrangements to reserve space for the public hearing in the municipality the project will be located in.

11. The Executive Director conducts the public hearing. The Executive Director prepares minutes of the public hearing and sends them to IDA Counsel.

12. At the next IDA meeting, the IDA Board:

a) Reviews Part II of EAF.
b) Reviews comments received from Involved Agencies.
c) Issues Determination of Significance/Part III EAF:

• If Positive Declaration is issued, proceed to DEIS/FEIS.
• If Negative Declaration is issued, SEQR is completed.

d) Adopts a Resolution:

1. Designating a Project Operator/Sponsor.
   2. Authorizing granting of financial incentives.

13. Following the IDA Board meeting:
    a) IDA Counsel prepares a ST-60 form designating a Project Operator and files the form with the NYS Department of Taxation and Finance and with the Executive Director.
    b) If real property tax exemptions were approved by the IDA Board, IDA Counsel has a PILOT Agreement executed by both parties and files the PILOT with all affected local taxing jurisdictions.
    c) If sales tax exemptions were approved by the IDA Board, IDA Counsel prepares a Sales Tax Exemption letter and an ST-123 form and submits them to the Project Operator. These documents identify the sales tax reporting requirements the Project Operator must comply with.
    d) IDA Counsel sends all documents required to provide financial incentives to a proposed project to Executive Director to review. Executive Director submits comments back to IDA Counsel.  IDA Counsel then finalizes all documents.
    e) IDA Counsel arranges for all documents to be executed by both parties. All documents are executed.
    f) IDA Counsel prepares bound package of all executed documents and submits to Executive Director.
    g) Executive Director distributes Part III EAF in accordance with SEQR Regulations.
    h) Executive Director creates binder of all documents associated with this project.
    i) IDA Counsel conducts closing and obtains:

• IDA Administrative Fee
• IDA Counsel Fee

j) IDA Counsel sends those fees to Chief Financial Officer.
k) IDA Counsel submits invoice for legal services to IDA. Chief Financial Officer (CFO) writes check to IDA Counsel.

3. Special Requirements for Projects Requesting Financial Assistance Greater than $100,000:

a) The IDA must adopt a resolution describing the project and the financial assistance that the agency is contemplating with respect to such project. Such assistance shall be consistent with IDA’s Uniform Tax Exemption Policy unless the IDA followed the procedures for deviation from such policy.
b) The IDA must hold a public hearing with respect to the project and the proposed financial assistance being contemplated by the IDA. Said public hearing shall be held in a city, town or village where the project proposes to locate.
c) The IDA must give at least ten days published notice of said public hearing and shall, at the same time, provide notice of such hearing to the chief executive officer of each affected tax jurisdiction within which the project is located. The notice of hearing must state the time and place of the hearing, contain a general, functional description of the project, describe the prospective location of the project, identify the initial owner, operator or manager of the project and generally describe the financial assistance contemplated by the agency with respect to the project.

IDA DISCUSSION:  Jim Mraz reviewed the information on the Agenda.  He referenced the Key Reporting Dates as shown on the Agenda.  He stated that, with respect to administering IDA projects, the IDA Board typically sees a Project Application once it is submitted and then takes two (2) meetings to process an application.  He stated there are a number of work tasks that are performed before the first meeting, between the two (2) meetings and after the last meeting that are undertaken that he wanted to identify and show IDA Board members so they understood what the entire process consisted of.  Jim Mraz asked if there were any questions.  Mike Fitzgerald stated that, with respect to Kent Kirch’s report, he stated he doesn’t understand why the CRG can’t provide basic information to the IDA Board regarding the prospect that is looking at a site at Tryon.  Mike Fitzgerald said the IDA owns the land and should be advised of what type of company it is before a site is offered.  He stated the IDA Board should be advised of what type of project it is, the number of jobs, the number of acres.  He stated this information could be provided without identifying who the company is or break any confidentiality requirements there may be.  Joe Semione added that he’s had that discussion with Ron Peters previously.  He stated the IDA Board provided guidelines to the CRG on what type of projects it wanted to see at Tryon.

IDA DISCUSSION:    Jim Mraz stated that the Tryon Development Area is that 45+/- acre parcel of land on the north side of the Tryon Technology Park that was previously identified as a potential site for residential development.  He stated, to date, there has been no interest in that property for potential housing.  He asked if the IDA Board would be willing to expand the potential use of that 45-acre parcel to also have it available as a potential shovel-ready site.  Dave D’Amore stated he thought that would be a good approach.  He stated it would allow for the property to be marketed for both housing, as well as a potential manufacturing business.  Joe Semione also stated it would be okay.  Jim Mraz stated that he would discuss the matter further with Cushman Wakefield.

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      :           Joe Semione
SECOND        :           Dave D’Amore
ROLL CALL VOTE               :
Aye         Nay         Abstain           Absent

Joe Semione                   X           ___         ___               ___
Jane Kelley                   X           ___         ___               ___
Mike Fitzgerald               X           ___         ___               ___
Joseph Gillis                 ___         ___         ___               X
Todd Rulison                        X           ___         ___               ___
Dave D’Amore                        X           ___         ___               ___

TIME              :           9:12 a.m.

(Todd Rulison left the meeting at 9:15 a.m.)

MOTION        :           To go out of Executive Session.

MADE BY      :           Joe Semione
SECOND        :           Jane Kelley
ROLL CALL VOTE               :
Aye         Nay         Abstain           Absent

Joe Semione                   X           ___         ___               ___
Jane Kelley                   X           ___         ___               ___
Mike Fitzgerald               X           ___         ___               ___
Joseph Gillis                 ___         ___         ___               X
Todd Rulison                                    ___         ___               X
Dave D’Amore                        X           ___         ___               ___

TIME              :           9:40 a.m.

Tuesday
April 13, 2021
8:00 a.m.

MOTION        :           To close the meeting.

MADE BY      :           Dave D’Amore
SECONDED   :           Joe Semione
ROLL CALL VOTE               :
Aye         Nay         Abstain           Absent

Joe Semione                   X           ___         ___               ___
Jane Kelley                   X           ___         ___               ___
Mike Fitzgerald               X           ___         ___               ___
Joseph Gillis                 ___         ___         ___               X
Todd Rulison                                    ___         ___               X
Dave D’Amore                        X           ___         ___               ___

TIME              :           9:41 a.m.