PRESENT:

MIKE FITZGERALD, CHAIRMAN
SUE COLLINS, VICE CHAIRMAN
DR. GREG TRUCKENMILLER, TREASURER
JOSEPH GILLIS, SECRETARY
JOSEPH SEMIONE, MEMBER
DAVID D’AMORE, MEMBER
DAN ROUNDS, MEMBER
JAMES MRAZ, EXECUTIVE DIRECTOR
KARA LAIS, FITZGERALD, MORRIS, BAKER, FIRTH PC
SCOTT HENZE, PLANNING DIRECTOR
TOM ROEHL, LIASON ECONOMIC DEVELOPMENT & ENVIRONMENT COMMITTEE
JACK WILSON, FULTON COUNTY CENTER FOR REGIONAL GROWTH

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

MOTION        :           Accept as presented
MADE BY      :           Joe Semione
SECONDED   :           Sue Collins
VOTE              :           Unanimous

A. Nominating Committee

• No report.

B. Audit Committee:

IDA DISCUSSION: Sue Collins noted that the monthly date reconciliation report was in order.

C. Governance Committee:

• No report.

D. Finance Committee:

•  No report.

1. FCCRG Report: Jack Wilson (See attached.)
2. Fulton County Report: Tom Roehl

1. Special Use Permit (SUP):

• In 2020, Nexus received a Special Use Permit (SUP) from the Town of Johnstown Planning Board for their Solar Project next to Tryon.
• This SUP was good for 1 year.
• Nexus never requested that the Planning Board extend the expiration date of the SUP.
• Nexus recently submitted a request to the Planning Board to extend the expiration date of the SUP.
• Since it has been 3 years since the SUP expired, the Town of Johnstown decided to require Nexus to submit a new application for a SUP.
• This application will be impacted by the current moratorium the Town Board enacted on all solar projects. This moratorium is scheduled to expire on August 26, 2024.  The Town Board could extend the moratorium.
• The Town will not accept applications for any SUP’s until after the moratorium expires.
• The Town Board is expected to extend the Moratorium.

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

• Board of Supervisors hired the MRB Group to prepare the new Development Strategy.
• The Development Strategy will have 3 main components:

1. Economic Development
2. Housing
3. Tourism

• A Stakeholder Workshop was held on June 28^th at FMCC.
• MRB Group working to identify 5 projects in 3 main component area.
• The County’s Committee met recently to review the proposed projects.

• IDA Board must adopt a 2025 Budget by November 1, 2024.
• Draft 2025 Budget is attached.
• Last year, the IDA Board agreed to consolidate the Tryon Budget into the IDA overall Budget.
• Key details include:
• Proposed 2025 budget totals $243,320, which is a decrease of $8,197 from 2024.
• Proposed Tryon expenditures totals $18,100, which is an increase of $2,650 from 2024.
• See attached.

IDA DISCUSSION:  Jim Mraz reviewed the information on the agenda. He then reviewed the proposed 2025 Budget.  He stated he prepared the budget by first identifying expenditures for 2025.  He reviewed the proposed expenditures.  He stated once expenditures were totaled, he then identified the revenues that the IDA would generate in 2025.  Those revenues are subtracted from the total expenditures leaving a balance.  He stated that this the amount of funds included in the transfer line in the proposed budget.  This is the amount of money that would be transferred from the IDAs reserve funds to balance the budget. He asked if there any projects, initiatives or purchases that IDA Board members would like to include into the 2025 budget.  Mike Fitzgerald stated that there were dollars allocated in the 2024 budget for the County Development Strategy. He suggested consideration be given to including dollars into the 2025 budget for other County projects and initiatives that the IDA may wish to assist the County with. It was suggested that the $25,000 be included into that line item and titled County Projects.

Jim Mraz stated that the final budget will be presented at the October Board meeting. Once adopted, he will file the approved budget under PARIS by the November 1, 2025 deadline.

1. Background:

• Representatives from the FCCRG, FMRCC, Fulton County and IDA been meeting to discuss ways the three (3) entities could work together more efficiently. Shared Toolbox was identified as the one initiative to pursue.

2. Shared Toolbox:

• A Shared Toolbox is a compilation of all service and programs currently offered and provided by:

1. FCCRG
2. FMRCC
3. FMS workforce Solutions
4. IDA
5. County Planning
6. Fulton County Visitor Bureau

• The Shared Toolbox will organize into three component areas.
•     Economic Development
•     Workforce
•     Tourism
• The goal is for someone looking for information about either of these three (3) categories would click on one of those categories which would lead to a drop down showing approximately 12 services/programs. If that user then clicked on any of those 12 services/programs, it would show:
•      Take the user to one of the entities websites where additional information would be available.
•       The name, title, organization and contact information of the person who could be contacted for more information.
• Website research project
  • Perform customer Development interviews
  • Audit existing websites
  • Define Target Audience
  • Prepare plan to drive traffic and what users are searching for
  • Develop landing page that would include maintenance.
  • The Group desires to obtain a cost proposal from Emery Designs to provide these services.
• IDA DISCUSSION:Mike Fitzgerald stated that Betsy Emery did a presentation to the group at the last meeting regarding development of a Landing Page. She discussed how the Landing Page would be used to direct users each entity website. Mike Fitzgerald stated that Betsy also discussed how to drive traffic to various websites. Sue Collins stated that there will be costs associated with developing and maintaining a Landing Page.  She stated that Betsy Emery suggested having a certain research conducted as part of developing the Landing Page. Mike Fitzgerald stated that group wanted Betsy Emery to prepare a cost proposal for providing the services that she identified that needed to be done.  Once that cost is finalized, it will be shared with the IDA.

• The EPA just announced the available Brownfield Cleanup grants.
• Applications are due by November 14, 2025.
• Jim Mraz spoke with HRP Associates, Inc, the engineering consultant utilized by the FCCRG in work with Brownfields.
• HRP submitted a proposal through the IDA to prepare and submit a grant to EPA for tearing down the 2 remaining buildings at the Tryon Technology Park.

IDA DISCUSSION: Jim Mraz reviewed the proposal received from HRP Associates.  He stated the proposal is for HRP to prepare a grant application at no cost to the IDA.  Jim Mraz explained if a grant was awarded to the IDA, the IDA would then be required to distribute a Request for Proposals(RFP) to engineering firms to prepare plans and specifications to use to go out to bid to have these buildings demolished.  He stated HRP would be one of the firms that would submit proposals.  The IDA would not be required to accept the lowest price proposal.

Joe Semione asked what impact getting this grant may have on the Winstanley Enterprises Option Agreement with the IDA. Jim Mraz and Kara Lais both stated that he would have to review the Option Agreement.

Jim Mraz asked if there were any questions. There were none.

MOTION: To authorize hiring HRP Associates, Inc of Clifton Park, NY to prepare and submit an EPA Cleanup Grant application requesting funds to demolish the 2 remaining buildings at the Tryon Technology Park.

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

1. SALES TAX EXEMPTIONS
   a. Introduction

• IDA’s are authorized to provide sales tax exemptions to eligible proposals
• IDA’s are required to comply with various reporting requirements when granting sales tax exemptions.
  b.  Appointing an Agent: Form ST-60

• As a government entity, an IDA is exempt from paying sales and uses taxes (sales tax) on its purchases. However, it is not normal practice for an IDA itself to make purchases related to a project. An IDA typically appoints as its agent for this purpose a:
• Business or developer,
• Contractor, or
• Purchases made by a properly appointed Agent within the authority granted to it by the IDA are deemed to be purchases made by the IDA and are exempt from sales tax.
• An IDA must file with the Tax Department Form ST-60, IDA Appointment of Project Operator or Agent for Sale Tax Purposes, each time it appoints an agent to receive sales tax exemption benefits. The IDA must file Form ST-60 with 30 days of appointing an agent to appoint other persons as agents of the IDA, the agent making the appointment must inform the IDA that it has appointed someone as agent and IDA must file Form ST-60 within 30 days of the date of the new agent’s appointment.
• In addition, as IDA must include the terms and conditions described in General Municipal law 875(3) (including provisions regarding recapture of benefits) in each resolution or project document that:
• Establishes a project, or
• Appoints an agent.
• Each agent appointed by an IDA must agree to those terms and conditions prior to receiving any sales tax exemption benefits.
  c.  Amending or Revoking an Agent’s Appointment

• If an IDA amends, revokes, or cancels it appointment of an agent, or if an agent’s appointment becomes invalid for any reason, the IDA must, within 30 days, file a statement with the Tax Department at the address listed on Form ST-60 that identifies the agent and explains that the agent’s appointment has been:
• Amended, revoked, canceled, or is otherwise no longer valid: and
• The effective date of the change.
  • The IDA should attach a copy of the original Form ST-60 filed for the agent’s appointment to the letter.
    d.  Recordkeeping and Reporting Requirements
    • An IDA must keep records of the sales tax exemption benefits it provides. It is also required to report the sales tax exemption benefits it provides to an agent by filling Form ST-60 with the Tax Department within 30 days of conferring the exemption benefit. If the IDA fails to report the sales tax exemption benefits or make records available to the Department upon request, the IDA shall be prohibited from providing sales tax benefits until the IDA comes into compliance with all such requirements.
      e.  Recapture Requirements: Form ST-65
      • An IDA must recapture any state sales tax exemption benefits that were claimed by an agent whenever the benefits were:

• Not entitles or authorized to be taken
• In excess of the amounts authorized
• For unauthorized property or services; or
• For property or services not used according to the terms of the project contract with the IDA.
  • An IDA must remit recaptured sales tax exemption benefits to the Tax Department using Form ST-60, IDA Report of Recaptured Sales and Use Tax Benefits. The IDA must file Form ST-60 within 30 days from when the IDA comes into possession of the recaptured funds.
  • An agent must cooperate with the IDA in its effort to recapture state sales tax exemption benefits. Where an Agent fails to cooperate, IDAs have an obligation to commence an action or proceeding against an agent to recover unauthorized sales tax if necessary.
  • Any failure by an agent to pay over improper sales tax exemption benefits to an IDA could also result in an assessment to the agent for the state sales tax due, plus applicable penalties and interest.   The IDA must cooperate with the Department, for example, by sharing relevant documents and information in the event that the Department elects to issue an assessment.
    f.  Annual Compliance Report: Form St-62

• An IDA must file Form St-62, IDA Annual Compliance Report – State Sales Tax Recapture, within 90 days of the end of the IDA’s fiscal year.  The report must include details of:
• The terms and conditions of each of its projects
• The IDA’s activities and efforts to recapture any state sales tax exemption benefits due, and
• Any other information required by either the
• Commissioner of Taxation and Finance or
• Commissioner of Economic Development
• The IDA must file the report with the
• Commissioner of Taxation and Finance
• Director of the Budget
• Commissioner of Economic Development
• State Comptroller and
• Municipality’s governing body
  g.  Agent Activities: Purchases

• Once appointed, Agents can make purchases to acquire, build, or equip a project exempt for sales tax.  However, exempt purchases are only allowable to the extent provided by the terms of the Agent’s IDA Project Contract.
• To make a qualifying purchases exempt from sales tax, agents use:
• Form ST-123, IDA Agent or Project Operator Exempt Purchase Certificate or
• Form FT-123, IDA Agent or Project Operator Exempt Purchase Certificate for Fuel.
• IDAs cannot operate a business. All purchases by agents must be made under the terms of an IDA project contract to qualify for an exemption.
  h. Reporting Requirements: Form St-340

• After the end of each calendar year, each agent appointed directly by an IDA must file with the Tax Department Form St-340, Annual Report of Sales and USE Tax Exemptions Claimed by Agent/Project Operator of Industrial Development Agency/Authority (IDA). Form St-340 is used to report the total value of all state and local sales and use taxes exemptions claimed during a calendar year under the terms of the project contract, including the value of the exemptions claimed by:
• The agent itself; and
• The agent’s sub-agents, contractors, subcontractors, consultants, and others, whether or not appointed as agents of the IDA.
• Form ST-340 is due on the last day of February in the following calendar year.

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        :           Greg Truckenmiller
VOTE              :           Unanimous
TIME              :           8:40 AM

MOTION        :           To go out of Executive Session.

MADE BY      :           Greg Truckenmiller
SECOND        :           Joe Semione
VOTE              :           Unanimous
TIME              :           9:42 AM

Tuesday
October 8, 2024
8:00 a.m.

MOTION        :           To close the meeting

MADE BY      :           Sue Collins
SECONDED   :           Joe Semione
VOTE              :           Unanimous
TIME              :           9:59 AM