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Onondaga County Industrial Development Agency Regular Meeting Minutes February 10, 2015 The regular meeting of the Onondaga County Industrial Development Agency was held on Tuesday, February 10, 2015 at the 333 West Washington Street, Syracuse, New York in the large conference room on the first floor.
Chairperson Daniel Queri called the meeting to order at 8:00 am with the following:
PRESENT:
Daniel Queri Patrick Hogan Janice Herzog Lisa Dell Steve Morgan
ABSENT:
Jessica Crawford Victor Ianno
ALSO PRESENT:
Julie Cerio, Office of Economic Development Honora Spillane, OCIDA, Secretary & Treasurer Linda McShane, Office of Economic Development Karen Doster, Recording Secretary Tony Rivizzigno, Gilberti Law Firm Paul Cappuccilli, Saint Cecelia’s Place, LLC Nicholas Masterpole, Saint Cecelia’s Place, LLC Tim Frateschi, Frateschi Law Firm Sara Wisniewski, Gilberti Law Firm Jeffrey Murray, Carpenter’s Local 277 James Mahaney, Onondaga County Legislature Steven Coker APPROVAL OF REGULAR MEETING MINUTES — JANUARY 6, 2015 Upon a motion by Lisa Dell, seconded by Janice Herzog, the OCIDA Board approved the regular meeting minutes of January 6, 2015. Motion was carried.
TREASURER’S REPORT Honora Spillane gave a brief review of the Treasurer’s Report for the month of January 2014. Upon a motion by Lisa Dell, seconded by Janice Herzog, the OCIDA Board approved the Treasurer’s Report for the month of January 2015. Motion was carried.
Honora Spillane gave a brief review of the Payment of Bills Schedule # 380.
Pat Hogan asked if PILOTs are not paid will the individual municipality notify OCIDA. Honora Spillane stated that it depends on how the PILOT is structured. She stated that some of the payments are received by OCIDA and are passed through so we would know if they haven’t been paid. She stated that if the municipality hasn’t received payment they would let us know. Upon a motion by Steve Morgan, seconded by Janice Herzog, the OCIDA Board approved the Payment of Bills, Schedule #380 with General Expenses being $64,061.51 and PILOT payments to Town of Cicero for $48,589.16, Town of Clay for $85,304.08, Town of DeWitt for $185,761.13, Town of Elbridge for $82,479.18, Town of Geddes for $18,736.41, Town of Lysander for $85,938.00, Town of Manlius for $161,517.77, Town of Onondaga for $2.03, Town of Salina for $77,506.89, Town of Skaneateles for $33,313.77, Town of Van Buren for $36,965.00, Village of Solvay for $74,784.04, Baldwinsville Schools for $33,361.00, East Syracuse Minoa Schools for $687,044.77, Jamesville DeWitt Schools for $65.38, Jordan Elbridge Schools for $441,966.16, Liverpool Schools for $889,750.12, Lyncourt Schools for $384,155.70, North Syracuse Schools for $463,912.45, Skaneateles Schools for $163,692.82, Solvay Schools for $186,459.84, West Genesee Schools for $189,154.00, Onondaga County for $1,223,514.27 and City of Syracuse for $1,013.62. Motion was carried.
The Conflict of Interest Statement was circulated and there were no comments.
ST CECILIA’S PLACE, LLC — PROJECT REVIEW AND PUBLIC HEARING Paul Cappuccilli stated that they intend to put 40 studio apartments in the existing building and 48 one bedrooms in a new structure with 32 underground parking spaces. He stated that there will also be a covered connector walk between the two. He stated that there is a tremendous need for senior housing in the Solvay area and there is only one other senior housing facility in Solvay. He stated that they are reutilizing all of the sewer and water systems that are there and will not be expanding any infrastructure. He stated that the project is not feasible without the help of the grants that they are applying for and IDA support in the form of a PILOT program, sales and mortgage tax relief. He stated that if approved for grant money and PILOT program, they are looking at about a 7.5% return on their investment over the first 15 years of the project. He stated that it diminishes over the 30 year financing period life of the project. He stated that tenants will pay one price so they don’t have to worry about high electric bills or heating bills.
Lisa Dell asked if there is a demand for studio. Paul Cappuccilli stated that they have one project in the city brought online about 10 years ago and has been 100% full ever since. He stated that they think there will be good demand because everything is on a smaller scale today in housing. Steve Morgan asked if this is 100% senior housing. Paul Cappuccilli stated yes it is 55 and older. Pat Hogan asked if the PILOT schedule has been worked out yet. Tim Frateschi stated that the request for assistance is for mortgage recording tax, sales tax and a 15 year PILOT which would be a deviation from the IDA’s existing 12 year PILOT. He stated that it is reflected in the application and they are certainly willing to work with the IDA.
Pat Hogan asked if there will be a public hearing in Solvay. Paul Cappuccilli stated that he presumes but it is up to the Board.
Pat Hogan asked if it is all privately financed. Paul Cappuccilli stated yes aside from the grant money they are looking for on the equity side.
Tim Frateschi stated that this property has been off the tax roll for 92 years. He stated that whatever agreement is reached is going to be money to the Village, Town and the County that they haven’t seen in 92 years. He stated that is why they think that a PILOT of the nature they are requesting is not a significant impairment to them but a benefit to all municipalities.
Steve Morgan asked what the viability of the project without PILOT funding. Paul Cappuccilli stated that there is no viability to it.
Paul Cappuccilli stated that they will own and manage the property.
Daniel Queri asked if the current owner stills owns the real estate. Paul Cappuccilli stated that they have it under contract with a $510,000 purchase price Daniel Queri asked what other amenities will be available. Paul Cappucciilli stated that they haven’t done the detail layouts on the first level but they will have things like a hair dresser, business center, movie theater, large meeting/gathering area for family events or parties with a small kitchen and extra storage facilities. Nicholas Masterpole stated that it is very close to a bus route. He stated that it is walking distance to the Solvay Youth Center which has a pool, exercise facility and a really nice community center.
Daniel Queri asked what the total car count for the 88 units. Paul Cappuccilli stated that it is 1.25 per space.
Pat Hogan asked what the rent will be. Paul Cappuccilli stated that the studio rents are projected at $795 and $995 for one bedroom with everything included. He stated that the indoor parking spaces will be about $75 per month.
Janice Herzog stated that the application states they will employ one full time person. Paul Cappuccilli stated that it is a minimum of one full time person that will either live or be employed there. He stated that they will use local trades and contractors for many of the items like lawn care, snow removal or plumbing or electrical repairs.
Pat Hogan asked who the general contractor is. Paul Cappuccilli stated that MCK is the general contract and building partner.
Janice Herzog asked if there is a senior housing model in the town community. Paul Cappuccilli stated that offhand he is not sure of any that have this type of mix of studios and this is going to hit a niche that isn’t being served.
Janice Herzog asked what other local businesses are in walkability distance for the residents. Paul Cappuccilli stated that there is the Solvay Public Library and Milton Avenue has a small grocery, restaurants, banks and post office.
Upon a motion by Janice Herzog, seconded by Lisa Dell, the OCIDA Board approved a resolution describing the proposed Saint Cecelia’s Place LLC project and the financial assistance the Agency may provide and authorizing a public hearing for the project. Motion was carried. Upon a motion by Steve Morgan, seconded by Janice Herzog, the OCIDA Board approved a resolution authorizing the execution of the Agent Agreement outlining the responsibilities of the Developer and the Agency for the Saint Cecilia’s Place, LLC project. Motion was carried. BARBAGALLO’S SLEEP INN Honora Spillane stated that the public hearing was held in the Town of DeWitt and there were no comments.
Upon a motion by Lisa Dell, seconded by Janice Herzog, the OCIDA Board approved a resolution for SEQRA purposes concerning the environmental significance of the Barbagallo’s Sleep Inn project as an unlisted action. Motion was carried.
Upon a motion by Lisa Dell, seconded by Steve Morgan, the OCIDA Board approved an inducement resolution for a straight lease transaction for the Barbagallo’s Sleep Inn project consisting of the construction of a 35,000 square foot 54-room Sleep Inn hotel by Choice Hotels in the Town of DeWitt. Motion was carried.
7643 EDGECOMB DRIVE, INC. — SEQRA AND INDUCEMENT Honora Spillane stated that the public hearing was held and there was no comment. Upon a motion by Lisa Dell, seconded by Janice Herzog, the OCIDA Board approved a resolution for SEQRA purposes concerning the environmental significance of the 7643 Edgecomb Drive, Inc. project as an unlisted action. Motion was carried.
Upon a motion by Lisa Dell, seconded by Steve Morgan, the OCIDA Board approved an inducement resolution for a straight lease transaction for the 7643 Edgecomb Drive, Inc. project consisting of the acquisition of and improvements to 7643 Edgecomb Drive in order for its related entity, SBB. Inc. to move its current operations and consolidate two additional operations at a single
location in the Town of Clay. Motion was carried. Upon a motion by Lisa Dell, seconded by Steve Morgan, the OCIDA Board adjourned the meeting at 8:52 am. Motion was carried.
Honora Spillane, Secretary