Typeset from the PDF of the official document (read by OCR) — headings, motions and recorded votes are detected automatically, so spacing may differ from the original. The official copy governs.
Onondaga County Industrial Development Agency Regular Meeting Minutes August 14, 2018 A regular meeting of the Onondaga County Industrial Development Agency was held on Tuesday, August 14, 2018 at the 333 West Washington Street, Syracuse, New York in the large conference room on the first floor.
Patrick Hogan called the meeting to order at 8:08 am with the following:
PRESENT:
Patrick Hogan Victor Ianno Kevin Ryan Susan Stanezyk Janice Herzog Fanny Villarreal DELAYED:
Steve Morgan
ALSO PRESENT:
Julie Cerio, OCIDA, Executive Director Nate Stevens, Treasurer Karen Doster, Recording Secretary Brian Bartlett, Office of Economic Development Quante Wright, Office of Economic Development Genevieve Suits, Office of Economic Development Halee Beebe, Office of Economic Development Tony Rivizzigno, Barclay Damon Amanda Mirabito, Barclay Damon Law Firm Gail Cawley, JMA Wireless Brian Aiello, SEKO Jennifer Huse Granzow, Wladis Law Firm Dave Cooper, Upstate Coin & Gold Tim Geraets, Thompson Road LLC (Feldmeier Equipment) Ken Bush, Onondaga County Legislature Rich Roche, Mohawk Global Logistics Yvonne Scott Younis, Mohawk Global Lauryn LaBorde, SCSD Jim Mason, Carpenter’s Union Rick Moriarty, Post Standard APPROVAL OF REGULAR MEETING MINUTES — JULY 17, 2018 Pat Hogan stated he has one change on page 5 where it should read “CRX said they have an agreement”. Julie Cerio stated it will be corrected.
Upon a motion by Victor Ianno, seconded by Janice Herzog, the OCIDA Board approved the regular meeting minutes of July 17, 2018 with the change on page 5. Fanny Villarreal abstained. Motion was carried.
APPROVAL OF REGULAR MEETING MINUTES — AUGUST 2, 2018 Upon a motion by Susan Stanczyk, seconded by Victor Ianno, the OCIDA Board approved the special meeting minutes of August 2, 2018. Fanny Villarreal abstained. Motion was carried. TREASURER’S REPORT Nate Stevens gave a brief review of the Treasurer’s Report for the month of July 2018. Patrick Hogan asked about the taxes on Hiawatha Boulevard. Nate Stevens stated we still pay special district taxes.
Upon a motion by Janice Herzog, seconded by Fanny Villarreal, the OCIDA Board approved the Treasurer’s Report for the month of July 2018. Motion was carried.
Nate Stevens gave a brief review of the Payment of Bills Schedule #421.
Upon a motion by Janice Herzog, seconded by Victor lanno, the OCIDA Board approved the Payment of Bills Schedule #421 for $21,170.66. Motion was carried.
The Conflict of Interest statement was circulated and there were no comments.
Julie Cerio stated Genevieve Suits resume is being passed around and she joined our office as an Administrative Intern which means she will be with us for 18 months. She stated Genevieve has agreed to take on the task as Secretary and if the Board is so inclined she would highly recommend her as Secretary to the Board.
Upon a motion by Kevin Ryan, seconded by Victor Ianno, the OCIDA Board approved a resolution appointing Genevieve Suits as Secretary of OCIDA. Motion was carried. (Steve Morgan arrived at meeting.) JMA WIRELESS — TIME EXTENSION TO COMPLETE PROJECT, INCREASE SALES
Nate Stevens stated a public hearing was held and there were no comments.
Upon a motion by Victor Ianno, seconded by Janice Herzog, the OCIDA Board approved a resolution authoring a six month extension to complete the JMA Wireless project and authorizing an increase in sales tax abatement. Kevin Ryan abstained. Motion was carried.
Nate Stevens stated the public hearing was held and one person spoke in opposition to the project mainly because the project has been completed. He stated the comments have been provided to the Board.
Julie Cerio stated this is a refinance of old debt and increase in sales tax. Tony Rivizzigno stated we have to do more research into the liability of the company going over their previous sales tax. He stated until we figure that out it will be put off until the next meeting.
Julie Cerio asked the Board to consider voting on the mortgage recording tax exemption for the refinance because they need to close by the end of the month. She stated the sales tax increase will be considered next month.
Upon a motion by Victor Ianno, seconded by Janice Herzog, the OCIDA Board approved a resolution authorizing an increase in mortgage recording tax abatement for the Towne Center Retirement Community LLC project. Motion was carried.
Patrick Hogan stated the sales tax will be tabled until next month.
Julie Cerio stated if the Agency gives any kind of tax incentives to a company and the company was taken over or bought out by another company, we have to make sure the new company is going to abide by all of the same requirements of the original company. She stated prior to them coming in we make sure it is the same type of company and doing the same type of thing with the same employees so SEKO is here to tell us their plans. She stated our incentives were based on their job count numbers.
Brian Aiello stated Global Logistics of CNY is purchasing Distribution Support Systems from James Duffy who is current owner and going to Charlotte to start a business. He stated he is purchasing the exact same business and the property. He stated they currently have 23 -24 people on staff and growing. He stated revenue is up 18% year after year and the last 3 years has been upwards of 30% so they are adding people consistently mainly in the warehouse and export portion. He stated the plan over the next few years is to add at least 6 more people based on growth and need. He stated they would maintain the staffing there as well as well as grow. He stated it would be combination of fulltime and part time people.
Tony Rivizzigno stated this is not an additional benefit but taking the benefits of the previous company. Brian Aiello stated he is asking to transfer the incentives.
Patrick Hogan asked how much longer the PILOT agreement is. Brian Aiello stated they are in year 2 of 10.
Patrick Hogan asked if he is comfortable with the Agency Agreement. Brian Aiello stated he has read through it, reviewed it with his attorney and he understands it and how it works. He stated this is a huge benefit to help the business grow.
Brian Aiello stated his attorney asked him to ask about getting the mortgage recording tax exemption for the purchase. Julie Cerio stated it would be a brand new application. She stated SEKO can certainly ask for it prior to filing the mortgage and would be on next month’s agenda. Kevin Ryan stated there is no application in the package. Julie Cerio stated there is no application, just legal work to assign it over to another individual. Tony Rivizzigno stated there is an assignment of the company.
Julie Cerio asked Amanda Mirabito if she has the paperwork. Amanda Mirabito stated she has the resolutions and can forward the assignment. She stated it is just assigning one to the other. Julie Cerio stated at times the resolutions and legal documents create jams in people’s email so we have been omitted the resolutions and just tell the Board what the resolutions are. She asked if anyone was interested in reading the legal documents and can make them available. Kevin Ryan and Patrick Hogan would like to read the legal documents.
Julie Cerio stated SEKO can submit an application before the next meeting. Brian Aiello stated they are closing August 24 so he is not going to submit an application.
Upon a motion by Janice Herzog, seconded by Victor Ianno, the OCIDA Board approved a resolution authorizing assignment of an existing lease and leaseback agreement and authorizing assignment of an existing PILOT agreement for the SEKO project. Steve Morgan abstained. Motion was carried.
Nate Stevens stated the public hearing was held and there were no comments.
Jennifer Huse Granzow stated this project is an expansion and relocation of Upstate Coin and Gold which is a precious metals wholesaler. She stated they are moving from a location in Fayetteville to a new site Celi Drive. She stated subsequent to the first meeting they were put in a position where they had to close to purchase the property or lose it. She stated the new property owner is TWR Realty LLC. She stated Dave Cooper is here if there are any questions about the project.
Patrick Hogan asked who the new property owners are. Jennifer Huse Granzow stated it is the same ownership, TWR Real Estate and it is a short change.
Upon a motion by Victor Ianno, seconded by Steve Morgan, the OCIDA Board approved a resolution authorizing mortgage recording tax abatement, sales tax abatement and a PILOT Agreement (property tax abatement) and authorizing the execution of the Agent Agreement outlining the responsibilities of the Developer and Agency for the That Was Random, Inc. dba Upstate Coin & Gold project. Motion was carried.
THOMPSON ROAD, LLC (FELDMEIER EQUIPMENT) — INCREASE OF SALES TAX
Patrick Hogan asked how the project is coming along. Tim Geraets stated they are doing some manufacturing already and more will be moved from the other facility over the next 2 months. He stated they are looking forward to seeing it all in but still have a little ways to go. Victor Ianno asked once they are in the new facility what is happening to the old building. Tim Geraets stated it will be used as a parts facility both locally as well as throughout the country. Upon a motion by Victor Ianno, seconded by Kevin Ryan, the OCIDA Board approved a resolution authorizing an increase in sales tax abatement for the Thompson Road, LLC (Feldmeier Equipment) project. Steve Morgan abstained. Motion was carried.
Patrick Hogan stated the resolutions before the Board are to help move the Board forward, educate ourselves and hire people to find out what is going on. He stated a meeting was held with one entity who stated to us they had agreements with certain entities. He stated we asked to see those agreements but they basically refused. He stated the entity has what they say they have they will be able to develop the inland port otherwise this will put the Agency on a parallel path to identify any kind of involvement.
Victor Ianno asked if the other entity is an organization that wants to manage the port. Patrick Hogan stated this is an entity that said they have occupancy by property and an agreement with the railroad as well as an agreement with another operator. Julie Cerio stated there are other entities that are looking to be involved and could be involved.
Victor Ianno asked if they feel we are a threat or competition. Patrick Hogan stated no but sited they were confidential agreements. He stated if they had these agreements and came to us for economic incentives, we would ask for it anyway.
Victor Ianno asked if they are private entrepreneurs that want to take on the project for their own benefit. Patrick Hogan stated yes.
Victor Ianno asked if we as OCIDA want to have control of this. Patrick Hogan stated no but as OCIDA we want to push the project forward. He stated it has been talked about for years and nothing has happened. He stated there is considerable amount of state money allocated to this project. He stated we don’t know enough about it and these resolutions put forth would probably come with a lot of answers that we would need to ask.
Steve Morgan asked if the state money available on the public and private side regardless of who develops. Julie Cerio stated yes.
Kevin Ryan asked who the entity is refusing to give up this information. Patrick Hogan stated 3GI supposedly has options to the property and an agreement with CSX and a port operator. He stated if they want economic development incentives, they have to come before the Board. Victor Ianno asked if CSX has entered into an agreement and if anyone has talked to CSX. Patrick Hogan stated we don’t know anything at this point. He stated no one has talked to CSX and these resolutions will enlighten and educate us on what we need to know.
Victor Ianno asked if there are qualified consultants that can help us. Patrick Hogan stated yes. Julie Cerio stated when we took on Roth Steel we didn’t know anything so we hired a consultant to bring us through that process.
Victor Ianno asked what the qualifications are. Tony Rivizzigno stated it could be engineering or people who have done similar work. He stated this isn’t the only inland port so it could be a consultant from another state. Patrick Hogan stated we have to RFP so the Board will have involvement.
Kevin Ryan stated we are going through all these steps and effort in the process and have identified a developer that is essentially taking the lead in the whole process. He asked if they want our help or are we interjecting ourselves into a situation where a private entity is going to proceed with or without us. Julie Cerio stated we could be. Patrick Hogan stated we feel this is part of our mandate with the County. He stated the private entity out there showed us what they said they have and we would be available to help them out anyway we can. He stated they were not forthcoming.
Kevin Ryan stated we are doing all of this in case they fall apart and can’t proceed so we have a fall back plan to ensure this project doesn’t dry up and go away. Patrick Hogan stated this project has been in advance for a long time and we in competition with other communities. He stated in his opinion we can’t afford not to take aggressive action.
Upon a motion by Janice Herzog, seconded by Susan Stanczyk, the OCIDA Board approved a resolution to procure the services of a qualified consultant who may be of assistance to the Agency in its analysis and evaluation of the potential project. Motion was carried. Upon a motion by Steve Morgan, seconded by Susan Stanczyk, the OCIDA Board approved a resolution to identify any and all potentially available funding sources. Motion was carried. Upon a motion by Victor Ianno, seconded by Janice Herzog, the OCIDA Board approved a resolution with the help of consultants, to identify and investigate successful inland ports to determine best practices for the creation and operation of an inland port with a public private partnership. Motion was carried.
Upon a motion by Janice Herzog, seconded by Victor Ianno, the OCIDA Board approved a resolution to take such further actions as may be necessary to assist the Agency in its analysis and evaluation of the potential Inland Port project.
Patrick Hogan stated the Board will be brought along every step of the way. Julie Cerio stated we expect to have this as a monthly agenda item.
Upon a motion by Steve Morgan, seconded by Susan Stanczyk, the OCIDA Board approved a resolution authorizing the Chairman, Vice Chairman or Executive Director, each acting individually, to complete, execute and submit all documentation as may be required to apply for available funding related to the Agency’s exploration of the potential project. Motion was
carried,
Steve Morgan asked if expenses will be brought to the Board and the Board would approve or deny. Patrick Hogan stated the expenditures will be voted on. Nate Stevens stated they will be on the monthly Payment of Bills.
Upon a motion by Janice Herzog, seconded by Steve Morgan, the OCIDA Board approved a resolution authorizing the expenditure of Agency funds to pay for any expenses incurred in connection with Agency’s exploration of the potential project providing updates as necessary to the Board. Motion was carried.
Upon a motion by Victor Janno, the OCIDA Board adjourned the meeting at 8:33 am. Motion was carried.
enevieve Suits, Secretary