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November 14th, 2017 Agenda

FULTON COUNTY INDUSTRIAL DEVELOPMENT AGENCY
TUESDAY - NOVEMBER 14, 2017 - 8:00 A.M.

PLANNING DEPARTMENT CONFERENCE ROOM

AGENDA

PRESENT:

___JOSEPH SEMIONE, CHAIRMAN
___DAVE D’AMORE, VICE CHAIRMAN
___WILLIAM SULLIVAN, TREASURER
___JOE GILLIS, SECRETARY
___DIANA PUTNAM, MEMBER
___TODD RULISON, MEMBER
___TIM MUNN, MEMBER
___JAMES MRAZ, EXECUTIVE DIRECTOR
___KARA LAIS, FITZGERALD, MORRIS, BAKER, FIRTH PC
___SCOTT HENZE, PLANNER
___BILL WALDRON, LIAISON, ECONOMIC DEVELOPMENT COMMITTEE
___RON PETERS, FCCRG
___MIKE ANICH, LEADER-HERALD

I. MINUTES FROM OCTOBER 17, 2017 MEETING:

MOTION :
MADE BY :
SECONDED :
VOTE :

II. BUDGET REPORT:

MOTION :
MADE BY :
SECONDED :
VOTE :

III. COMMITTEE REPORTS:

A. Nominating Committee

  • No Report

B. Audit Committee:

  • No report.

C. Governance Committee:

  • No report.

D. Finance Committee:

  • No report.

E. Other Reports

  • Economic Development Committee : Bill Waldron
  • Fulton County Center for Regional Growth : Ron Peters

IV. OLD BUSINESS:

A. Fulton County’s 2017 E-Newsletter Campaign:

  • Shannon Rose is administering and managing this E-Newsletter Campaign for Fulton County.
  • Will e-mail/mail six (6) E-newsletters to 425+/- builders, developers and investors advising them of investment opportunities available now in Fulton County.
  • Goal: Attract private investment into Fulton County.
  • 1st Newsletter was sent out in August.
  • 2nd Newsletter was sent out in September.
  • 3rd Newsletter was sent out in October.
  • 4th Newsletter was sent out in November.
  • Distribute copy of Newsletter 4.

IDA DISCUSSION:

B. Follow-up to Site Selector Forum:

  1. One of the suggestions made by the Site Selectors was to improve the visual appearance of the Tryon Technology Park by:
    a. Cutting down trees so Site Selectors/Companies could see the land/sites.
    b. Cutting down underbrush and high grass in several areas.
    c. Demolishing more buildup.
  2. Fulton County’s Highway and Solid Waste Departments spent 2+ weeks cutting down a number of trees.
  3. An opportunity became available to cut the underbrush in the areas mentioned by the Site Selectors. Jim Mraz e-mailed IDA Board members about this opportunity on October 23, 2017. Invoice Amount: $1,000
  4. A significant area was cut on October 21-22, 2017. These areas will be added to the areas to be regularly mowed in 2018.

IDA DISCUSSION:

IDA ACTION:

MOTION:                   To authorize a payment to Edmond Hammonds in the amount of $1,000 for work performed at the Tryon Technology Park.

MADE BY:
SECONDED:
VOTE:

D. Proposed Century Linen Project:

  1. Background:
  • Century Linen & Uniform (formerly Robison & Smith) is a locally owned and operated family business that provides healthcare linen solutions, work uniform programs, entrance mats, and linen services to other businesses throughout New York.
  • It currently has two (2) plants:
    1) Gloversville: This plant serves exclusively healthcare.
    2) Johnstown: This plant serves restaurants, hotels, industrial, and retail medical.
  • The company also operates:
    1) Three (3) service centers across the state, in Canastota, Potsdam, and Albany.
    2) A small dry-cleaning operation.
    3) Coin laundries.
  • Century employs about 300 full time persons within New York State.

2. Proposed Project:

  • Century Linen is proposing to purchase an existing building at 123 Union Avenue Extension in the City of Johnstown and relocate its Gloversville operation there.
  • The building contains 60,000 sf and is currently owned by STAG, Boston, MA.
  • Century Linen projects to invest approximately $12 million on this project through renovating the building and purchasing and installing new machinery and equipment.
  • Century Linen does not expect any layoffs of the 225 employees it has in Fulton County.
  • This proposed project is needed by Century Linen to upgrade and modernize its operation, remain competitive and support recent and future growth of its business.

3. Project Application:

  • Century Linen has filed a Project Application with the IDA.
  • The Application Fee has been paid.

4. IDA Benefits Requested:

  • Century Linen’s Project Application requests one (1) IDA benefit: Sales Tax Exemption

5. Project Structure:

  • At present, STAG owns the building Century Linen plans to occupy.
  • STAG will lease the building to Century Linen for 10 years.
  • STAG will continue to own the building for approximately three (3) years due to existing debt it has on the building.
  • Once STAG pays off the existing debt, Century Linen will have the option to purchase it.
  • The IDA will enter into a Lease-Leaseback structure with STAG/Century Linen.

6. Project Number:

  • The project has been assigned the following Project Number: 1701-17-01-A

7. Public Hearing:

  • Since Century Linen’s Project Application requests IDA benefits greater than $100,000, a public hearing must be held.
  • The public hearing was held on October 31, 2017 at 10:00 a.m.
  • Two (2) persons spoke at the public hearing and both spoke in favor of the project.

8. SEQR:

  • The proposed project involves the acquisition of an existing building, purchasing and installing new machinery/equipment and performing miscellaneous building repairs/modifications to accommodate the new machinery/equipment.
  • Section 617.5(c)(1) of the SEQR Regulations says, “Maintaining or repairs involving no substantial changes in an existing structure or facility” is a Type II Action.
  • Type II Actions are ones which NYSDEC has found to not have significant adverse impacts on the environment or actions that have been statutorily exempted from SEQR review.

9. Resolution:

  • Kara Lais has attached a resolution for the IDA Board to act on.

IDA DISCUSSION:

IDA ACTION:

MOTION:                   To adopt a resolution approving a certain project, as defined herein, appointing Century Linen & Uniform, Inc., Agent of the Agency for the purpose of constructing and equipping the project facility (as defined herein) and authorizing the execution and delivery of closing documents.

MADE BY:
SECONDED:
VOTE:

E. Electric Service at the Tryon Technology Park:

  1. Existing Electric Service:
  • Met with Tom’s Electric to go over plan to replace overhead fuses.
  • Work will require shutting down power to Tryon. Need to coordinate this with Vireo.
  • Hope to complete this work in November.

2.  Damaged Electrical Switchgear:

  • In January 2017, one of the switchgear units malfunctioned and was damaged. Power was lost and emergency repairs were made by Current Electric.
  • What was done at that time was to switch the circuit feeding the Tryon Park from the damaged switchgear to one of the other functioning switchgears.
  • The damaged switchgear was not repaired.
  • Met with Current Electric to discuss repairing this switchgear. Two (2) options were discussed:
    a. Keep two (2) operating circuits and continue to utilize the two (2) remaining switchgears. Repair damaged switchgear so spare is available in the event of another switchgear is damaged.
    b. Get all electric users onto one (1) circuit that would use one (1) switchgear. The second switchgear could then be the spare to use in the event another one gets damaged.

IDA DISCUSSION:

V. NEW BUSINESS:

A. Property Appraisal:

  • At the October 17, 2017 meeting, the IDA Board authorized the hiring of Whittaker Appraisal at a cost of $500 to prepare an appraisal on the tract of land on the east side of NYS Route 30A with said cost to be shared equally with the Town of Johnstown.
  • Whittaker has submitted an invoice for its work.
  • Total Invoice: $500
  • The IDA has received a check from the Town of Johnstown for its $250 share.

IDA DISCUSSION:

IDA ACTION:

 

MOTION:                   To authorize a payment to Whittaker Appraisal in the amount of $500.

MADE BY:
SECONDED:
VOTE:

B. IDA Fee Schedule:

  1. Background:

 

a. IDA’s Fee Schedule includes the following Administrative Fee applied to Straight Lease or Bond Projects:

Straight Lease Projects:

  • Administrative Fee     :           25% of the Project’s cost subject to Sales Tax

Bond Projects:

  • Administrative Fee     :           1% up to 1st $5,000,000

:           .75% over $5,000,001

b. Other IDA’s Administrative 1Fee:

  1. Wayne County
    – First $5,000,000: 1% of the principal amount of the project costs.
    – Over $5,000,000 .75% of the project costs
    – Annual (post-closing) Administrative Fee of $1,000.00
  2. Orange County
    – 1% of first 2 mil + .50% of the remainder of the project amount
  3. Clinton County
    – .75 of 1%
  4. Oswego County
    – for financial Assistance, .75 percent of project cost
    – for Economic Development funds, 1.00 percent of financial assistance
  5. Saratoga County/Warren – Washington Counties/City of Glens Falls:
    – 1-10 mil .75%
    – 10-20 mil .5%
    – 20-100 mil .25%
    – 100-200 min .1250%
    – Over 200 .1%
  6. Jefferson County
    – First 10 mil 2%
    – 10-20mil .5%
    – Over 20 .25%
  7. Schoharie County
    – .75%

VI. OTHER BUSINESS:

A. Executive Session:

  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:
    1.  matters which will imperil the public safety if disclosed;
    2. any matter which may disclose the identity of a law enforcement agent or informer;
    3. information relating to current or future investigation or prosecution of a criminal offense which would imperil effective law enforcement if disclosed;
    4. discussions regarding proposed, pending or current litigation;
    5. collective negotiations pursuant to article fourteen of the civil service law;
    6. 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;
    7. the preparation, grading or administration of examinations;
    8. 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 :
SECOND :
VOTE :
TIME :

MOTION : To go out of Executive Session.

MADE BY :
SECOND :
VOTE :
TIME :

VII. NEXT MEETING:

Tuesday
December 12, 2017
8:00 a.m.

VIII. CLOSE MEETING:

MOTION :
MADE BY :
SECONDED :
VOTE :
TIME :