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Onondaga County Industrial Development Agency Regular Meeting Minutes August 10, 2023 A regular meeting of the Onondaga County Industrial Development Agency was held on Thursday, August 10, 2023, 355 Montgomery Street, Floor 2M, Syracuse, New York. Patrick Hogan called the meeting to order at 8:31 am with the following:
PRESENT:
Patrick Hogan Janice Herzog Susan Stanczyk Kevin Ryan Fanny Villarreal Cydney Johnson
ABSENT:
Elizabeth Dreyfuss
ALSO PRESENT:
Robert M. Petrovich, Executive Director Nancy Lowery, Secretary Nate Stevens, Treasurer Karen Doster, Recording Secretary Alexis Rodriguez, Assistant Treasurer Len Rauch, Economic Development Jeff Davis, Barclay Damon Law Firm Amanda Fitzgerald, Barclay Damon Law Firm Ozzie Crisalli, QP2 Properties, LLC Michael Arcuri, QP2 Properties, LLC Wendy Lougnet, Costello, Cooney & Fearon, PLLC John Law APPROVAL OF REGULAR MEETING MINUTES — JULY 20, 2023 Upon a motion by Janice Herzog, seconded by Kevin Ryan, the OCIDA Board approved the regular meeting minutes of July 20, 2023. Fanny Villarreal abstained. Motion was carried. TREASURER’S REPORT Alexis Rodriguez gave a brief review of the Treasurer’s Report for the month of July 2023. Upon a motion by Susan Stanczyk, seconded by Janice Herzog, the OCIDA Board approved the Treasurer’s Report for the month of July 2023. Motion was carried.
Onondaga County Industrial Development Agency Regular Meeting Minutes August 10, 2023 A regular meeting of the Onondaga County Industrial Development Agency was held on Thursday, August 10, 2023, 355 Montgomery Street, Floor 2M, Syracuse, New York. Patrick Hogan called the meeting to order at 8:31 am with the following:
PRESENT:
Patrick Hogan Janice Herzog Susan Stanczyk Kevin Ryan Fanny Villarreal Cydney Johnson
ABSENT:
Elizabeth Dreyfuss
ALSO PRESENT:
Robert M. Petrovich, Executive Director Nancy Lowery, Secretary Nate Stevens, Treasurer Karen Doster, Recording Secretary Alexis Rodriguez, Assistant Treasurer Len Rauch, Economic Development Jeff Davis, Barclay Damon Law Firm Amanda Fitzgerald, Barclay Damon Law Firm Ozzie Crisalli, QP2 Properties, LLC Michael Arcuri, QP2 Properties, LLC Wendy Lougnet, Costello, Cooney & Fearon, PLLC John Law APPROVAL OF REGULAR MEETING MINUTES — JULY 20, 2023 Upon a motion by Janice Herzog, seconded by Kevin Ryan, the OCIDA Board approved the regular meeting minutes of July 20, 2023. Fanny Villarreal abstained. Motion was carried. TREASURER’S REPORT Alexis Rodriguez gave a brief review of the Treasurer’s Report for the month of July 2023. Upon a motion by Susan Stanczyk, seconded by Janice Herzog, the OCIDA Board approved the Treasurer’s Report for the month of July 2023. Motion was carried.
Alexis Rodriguez gave a brief review of the Payment of Bills Schedule #484.
Upon a motion by Susan Stanczyk, seconded by Fanny Villarreal, the OCIDA Board approved the Payment of Bills Schedule #484 for $335,136.64. Motion was carried.
Alexis Rodriguez gave a brief review of the Payment of Bills Schedule #484.
Upon a motion by Susan Stanczyk, seconded by Fanny Villarreal, the OCIDA Board approved the Payment of Bills Schedule #484 for $335,136.64. Motion was carried.
The Conflict of Interest was circulated and there were no conflicts.
Ozzie Crisalli stated the project is 96 market rate apartments on a 15 acre parcel. He stated they will have 3 outparcel buildings totaling 33,200 square feet. He stated that space will be rented to food service tenants, personal service tenants and financial. He stated it is a combination of medical, office and restaurant space.
Patrick Hogan asked if the rents are going to be $1,400. Michael Arcuri stated yes. Patrick Hogan stated under “other” there is $1,262,000 and asked what that is. Ozzie Crisalli stated it is the construction contingency.
Robert Petrovich stated an affirmation from the applicant should be on record stating whether or not the project can proceed without the benefits being requested. Ozzie Crisalli stated the project will not proceed without the benefits because of the road work that they need to do. He stated their approval was contingent on doing a scope of work at the intersection to mitigate existing traffic problems. He stated the cost of that work is about $980,000. He stated adding that cost to the project puts all financial benchmarks that developers, lenders and investors look at into a range that becomes questionable.
Patrick Hogan stated he has talked to a lot of developers and to borrow money is tough today. Ozzie Crisalli stated and that is not even speaking to the interest rates.
The Conflict of Interest was circulated and there were no conflicts.
Ozzie Crisalli stated the project is 96 market rate apartments on a 15 acre parcel. He stated they will have 3 outparcel buildings totaling 33,200 square feet. He stated that space will be rented to food service tenants, personal service tenants and financial. He stated it is a combination of medical, office and restaurant space.
Patrick Hogan asked if the rents are going to be $1,400. Michael Arcuri stated yes. Patrick Hogan stated under “other” there is $1,262,000 and asked what that is. Ozzie Crisalli stated it is the construction contingency.
Robert Petrovich stated an affirmation from the applicant should be on record stating whether or not the project can proceed without the benefits being requested. Ozzie Crisalli stated the project will not proceed without the benefits because of the road work that they need to do. He stated their approval was contingent on doing a scope of work at the intersection to mitigate existing traffic problems. He stated the cost of that work is about $980,000. He stated adding that cost to the project puts all financial benchmarks that developers, lenders and investors look at into a range that becomes questionable.
Patrick Hogan stated he has talked to a lot of developers and to borrow money is tough today. Ozzie Crisalli stated and that is not even speaking to the interest rates.
Robert Petrovich asked if the project would not advance but for these benefits. Ozzie Crisalli stated that is correct.
Patrick Hogan stated the rents are market rate and there is a big gap as far as affordable housing in this area and in the whole Central New York area.
Susan Stanczyk asked where the actual location is and is it currently vacant land. Ozzie Crisalli stated it is on the northeast corner of Henry Clay Boulevard and Route 31 and it is vacant land. Fanny Villarreal asked why there will only be 3 jobs created. Ozzie Crisalli stated the 3 jobs are permanent jobs that his company will employ to work and run the property. He stated there will be well over 200 construction jobs. He stated that does not speak to the number of jobs that are going to be created by the businesses that occupy that 33,000 square feet of commercial space. Fanny Villarreal asked how many businesses they expect. Ozzie Crisalli stated in excess of 15 businesses.
Nancy Lowery stated a public hearing was held and there were 3 people in attendance, Kevin Meaker from Clay Town Board, Russ Mitchell from Clay Town Planning Board and Mark Teritto who is Commissioner of Town Planning. She stated Mr. Meaker and Mr. Mitchell both supported the project and the benefits being requested.
Upon a motion by Janice Herzog, seconded by Susan Stanezyk, the OCIDA Board approved a resolution authorizing the adoption of SEQRA determination for the QP2 Properties, LLC project. Kevin Ryan abstained. Motion was carried.
Robert Petrovich asked if the project would not advance but for these benefits. Ozzie Crisalli stated that is correct.
Patrick Hogan stated the rents are market rate and there is a big gap as far as affordable housing in this area and in the whole Central New York area.
Susan Stanczyk asked where the actual location is and is it currently vacant land. Ozzie Crisalli stated it is on the northeast corner of Henry Clay Boulevard and Route 31 and it is vacant land. Fanny Villarreal asked why there will only be 3 jobs created. Ozzie Crisalli stated the 3 jobs are permanent jobs that his company will employ to work and run the property. He stated there will be well over 200 construction jobs. He stated that does not speak to the number of jobs that are going to be created by the businesses that occupy that 33,000 square feet of commercial space. Fanny Villarreal asked how many businesses they expect. Ozzie Crisalli stated in excess of 15 businesses.
Nancy Lowery stated a public hearing was held and there were 3 people in attendance, Kevin Meaker from Clay Town Board, Russ Mitchell from Clay Town Planning Board and Mark Teritto who is Commissioner of Town Planning. She stated Mr. Meaker and Mr. Mitchell both supported the project and the benefits being requested.
Upon a motion by Janice Herzog, seconded by Susan Stanezyk, the OCIDA Board approved a resolution authorizing the adoption of SEQRA determination for the QP2 Properties, LLC project. Kevin Ryan abstained. Motion was carried.
Robert Petrovich stated this is sales and use tax and mortgage recording tax. He stated there is no PILOT on this project.
Upon a motion by Susan Stanczyk, seconded by Janice Herzog, the OCIDA Board approved a resolution authorizing the financial assistance the Agency will provide to include exemptions from sales and use taxes, real estate transfer taxes and mortgage recording taxes. Kevin Ryan abstained. Motion was carried.
WHITE PINE COMMERCE PARK DEMOLITION Robert Petrovich stated that by working with Barton and Loguidice Engineering, the bid for demolition work that needs to be done has been completed. He stated OCIDA staff worked with Onondaga County Purchasing Department to put out a bid for this project, reviewed results with the engineers and the Onondaga County Equity and Inclusion Office of the county for MWBE requirements, we are in a position to make a recommendation to the Board to proceed with a Notice of Intent to award the contract to the low bidder that has been brought forward through that process. He stated the expectation is to immediately provide that Notice of Intent and then work to be on site either just before or just after Labor Day to commence the demolition activities.
Robert Petrovich stated this is sales and use tax and mortgage recording tax. He stated there is no PILOT on this project.
Upon a motion by Susan Stanczyk, seconded by Janice Herzog, the OCIDA Board approved a resolution authorizing the financial assistance the Agency will provide to include exemptions from sales and use taxes, real estate transfer taxes and mortgage recording taxes. Kevin Ryan abstained. Motion was carried.
WHITE PINE COMMERCE PARK DEMOLITION Robert Petrovich stated that by working with Barton and Loguidice Engineering, the bid for demolition work that needs to be done has been completed. He stated OCIDA staff worked with Onondaga County Purchasing Department to put out a bid for this project, reviewed results with the engineers and the Onondaga County Equity and Inclusion Office of the county for MWBE requirements, we are in a position to make a recommendation to the Board to proceed with a Notice of Intent to award the contract to the low bidder that has been brought forward through that process. He stated the expectation is to immediately provide that Notice of Intent and then work to be on site either just before or just after Labor Day to commence the demolition activities.
Jeff Davis stated from a SEQR standpoint the action of the removal of the homes was studied as part of the Supplemental Generic EIS process that was done when the Board put forth the effort to expand the park and acquire these lands. He stated from a SEQR standpoint the demo of the homes was considered and studied in that process.
Kevin Ryan asked if anyone inquired why Gorick Construction was much lower than the other bidders on the list. Robert Petrovich stated there was a detailed scope included in the bid. He r stated when the bids were submitted, the engineering firm reached back out to the contractors to make sure the low bidder understood the scope and to ensure nothing was missing. He stated change orders can happen for many reasons but staff is confident based on vetting and review of the scope and discussions with the contractor that the price they put forward is fulsome in its response to the RFP.
Susan Stanezyk asked if the engineering firm has worked with them in the past. Robert Petrovich stated yes, and other folks that were solicited for references have said they are a quality firm to work with.
Susan Stanezyk asked where they are located. Robert Petrovich stated Binghamton. Upon a motion by Kevin Ryan, seconded by Janice Herzog, the OCIDA Board approved a resolution authorizing the Executive Director to accept a bid and enter into one or more agreement for site clearance services with Gorick Construction for site clearance services at Jeff Davis stated from a SEQR standpoint the action of the removal of the homes was studied as part of the Supplemental Generic EIS process that was done when the Board put forth the effort to expand the park and acquire these lands. He stated from a SEQR standpoint the demo of the homes was considered and studied in that process.
Kevin Ryan asked if anyone inquired why Gorick Construction was much lower than the other bidders on the list. Robert Petrovich stated there was a detailed scope included in the bid. He r stated when the bids were submitted, the engineering firm reached back out to the contractors to make sure the low bidder understood the scope and to ensure nothing was missing. He stated change orders can happen for many reasons but staff is confident based on vetting and review of the scope and discussions with the contractor that the price they put forward is fulsome in its response to the RFP.
Susan Stanezyk asked if the engineering firm has worked with them in the past. Robert Petrovich stated yes, and other folks that were solicited for references have said they are a quality firm to work with.
Susan Stanezyk asked where they are located. Robert Petrovich stated Binghamton. Upon a motion by Kevin Ryan, seconded by Janice Herzog, the OCIDA Board approved a resolution authorizing the Executive Director to accept a bid and enter into one or more agreement for site clearance services with Gorick Construction for site clearance services at White Pine Commerce Park. Motion was carried.
Amanda Fitzgerald stated the Tracey Road Equipment expansion project closed in 2020 and they are here today to request the Board authorize the Executive Director to enter into lender documents in connection with converting their construction financing to permanent financing. She stated they have given counsel the lender documents for review to make sure it has all the required provisions to indemnify the Board and the Agency. She stated everything looks good and she recommends it be passed today.
Upon a motion by Fanny Villarreal, seconded by Janice Herzog, the OCIDA Board approved a resolution authorizing execution and delivery of documents for the Tracey Road Equipment, Inc./Gerald W. Tracey project. Motion was carried.
White Pine Commerce Park. Motion was carried.
Amanda Fitzgerald stated the Tracey Road Equipment expansion project closed in 2020 and they are here today to request the Board authorize the Executive Director to enter into lender documents in connection with converting their construction financing to permanent financing. She stated they have given counsel the lender documents for review to make sure it has all the required provisions to indemnify the Board and the Agency. She stated everything looks good and she recommends it be passed today.
Upon a motion by Fanny Villarreal, seconded by Janice Herzog, the OCIDA Board approved a resolution authorizing execution and delivery of documents for the Tracey Road Equipment, Inc./Gerald W. Tracey project. Motion was carried.
Robert Petrovich stated COR has property within the Inner Harbor with 10 parcels in total. He stated two of these parcels are looking to be acquired by the County for the aquarium project. He stated this is a modification and a change of our agreement with COR to release those 2 L parcels from the lease/leaseback agreement that we have with them which has come up as a title E issue. He stated by doing this it cures that title issue and allows the County to proceed with the E acquisition of these 2 parcels for the advancement of the aquarium project. He stated there will be 8 remaining parcels that are in the lease/leaseback agreement and there will be some agreement modifications after that need to occur to codify all of that. He stated there have been discussions with COR and the projects they are anticipating on the property are looking to advance.
Jeff Davis stated it is really just title cleanup. He stated the Agency has a lease/leaseback over the property. He stated the county can’t accept the land and acquire it with a lease/leaseback existing on it so the Agency Jease/leaseback encompasses the whole 32 acre area so we are just shortening up the lease/leaseback agreement which will flow through the other agreements in the description as to what is covered so that these two parcels can be carved out. Janice Herzog asked how big the parcels are. Amanda Fitzgerald stated together they are about 4 acres out of the total of 32.
Robert Petrovich stated COR has property within the Inner Harbor with 10 parcels in total. He stated two of these parcels are looking to be acquired by the County for the aquarium project. He stated this is a modification and a change of our agreement with COR to release those 2 L parcels from the lease/leaseback agreement that we have with them which has come up as a title E issue. He stated by doing this it cures that title issue and allows the County to proceed with the E acquisition of these 2 parcels for the advancement of the aquarium project. He stated there will be 8 remaining parcels that are in the lease/leaseback agreement and there will be some agreement modifications after that need to occur to codify all of that. He stated there have been discussions with COR and the projects they are anticipating on the property are looking to advance.
Jeff Davis stated it is really just title cleanup. He stated the Agency has a lease/leaseback over the property. He stated the county can’t accept the land and acquire it with a lease/leaseback existing on it so the Agency Jease/leaseback encompasses the whole 32 acre area so we are just shortening up the lease/leaseback agreement which will flow through the other agreements in the description as to what is covered so that these two parcels can be carved out. Janice Herzog asked how big the parcels are. Amanda Fitzgerald stated together they are about 4 acres out of the total of 32.
Patrick Hogan asked if this is connected to the first PILOT agreement with COR. Jeff Davis stated yes.
Upon a motion by Janice Herzog seconded by Susan Stanezyk, the OCIDA Board approved a resolution authorizing a release of a portion of the Agency leasehold interest and the sale of parcels of property and related actions for the COR Inner Harbor Company, LLC project. Motion was carried.
Patrick Hogan asked if this is connected to the first PILOT agreement with COR. Jeff Davis stated yes.
Upon a motion by Janice Herzog seconded by Susan Stanezyk, the OCIDA Board approved a resolution authorizing a release of a portion of the Agency leasehold interest and the sale of parcels of property and related actions for the COR Inner Harbor Company, LLC project. Motion was carried.
Upon a motion by Susan Stanezyk, seconded by Janice Herzog, the OCIDA Board adjourned the meeting at 8:50 am. Motion was carried.
Hawes. Aen Nancy Lowery, Secretary”
Upon a motion by Susan Stanezyk, seconded by Janice Herzog, the OCIDA Board adjourned the meeting at 8:50 am. Motion was carried.
Hawes. Aen Nancy Lowery, Secretary”