PRESENT:

MIKE FITZGERALD, CHAIRMAN
SUE COLLINS, VICE CHAIRMAN
JOSEPH GILLIS, SECRETARY
TODD RULISON, TREASURER
DAVID D’AMORE, MEMBER
GREG TRUCKENMILLER, MEMBER
JAMES MRAZ, EXECUTIVE DIRECTOR
KARA LAIS, FITZGERALD, MORRIS, BAKER, FIRTH PC
SCOTT HENZE, PLANNING DIRECTOR
KENT KIRCH, FULTON COUNTY CENTER FOR REGIONAL GROWTH

MOTION        :           Approve as presented.
MADE BY      :           Todd Rulison
SECONDED  :           Mike Fitzgerald
VOTE             :           Unanimous

MOTION        :           Accept as presented.
MADE BY      :           Dave D’Amore
SECONDED  :           Sue Collins
VOTE             :           Unanimous

A. Nominating Committee

• No report.

B. Audit Committee:

• Monthly Bank Reconciliation Report:  Todd Rulison

IDA DISCUSSION:   Todd Rulison approved the Monthly Bank Reconciliation Reports.

C. Governance Committee:

• No report.

D. Finance Committee:

•  No report.

1. Fulton County Report:
2. FCCRG Report: (See attached.)  Kent Kirch

IDA DISCUSSION:  Kent Kirch reviewed the CRG’s report that was attached to the Agenda.  He stated that the CARES Act funding will be coming to an end.  He stated the CRG distributed approximately $2 million in awards to local businesses under this program.

• Nexus still expecting to receive National Grid’s approval of the interconnect in 3^rd quarter of 2023.
• Once interconnect approval is received, Nexus will obtain quotes to construct solar project.

1. Tryon Electric Service:

• Participated in MS Teams meetings with National Grid and Winstanley Enterprises to discuss what options are available to bring more power to Tryon.
• National Grid is currently working on a project to bring approximately 7-8 mw of distribution level power to Tryon. This project should be completed in late 2024 or early 2025

• Punchlist was prepared and submitted to Koval.
• Once punchlist is complete, final payment will be processed.
• One issue has been identified. During the start-up of the generator, power was shut off to get the generator to start which it did.  However, when the generator shut off, the pumps in the wastewater pump station did not restart.  Since the pumps didn’t restart, the tank the pumps are located in filled and triggered a high water alarm.  The alarm was received at the County’s 911 center and County Facility staff responded to the alarm.  When they arrived, saw the tank full and the pumps not operating, that’s when they realized the pumps didn’t restart.  The pumps had to be manually turned back on. We contacted General Control Systems (GCS), the company that supplied the pumps when they were installed several years ago under a completely different project.  GCS believes this matter can be addressed by making a programming change to the pumps so they will restart if the generator starts and then stops.  GCS also recommends installing an Uninterrupted Power Supply (UPS) on the pumps to ensure there is no interruption in power to the pumps in the time between when power may go off and the generator kicks on.
• GCS submitted a proposal to perform that programming change and provide the UPS:

– Total Cost :           $4,864.50
– This cost will be charged to the Contingency Allowance built into the IDA’s contract with Koval.

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

IDA ACTION:

MOTION:                   To authorize charging this $4,864.50 expense to Koval’s Contingency Allowance.

MADE BY:                 Greg Truckenmiller
SECONDED:             Sue Collins
VOTE:                         Unanimous

1. Sales Tax Exemptions:

a) On July 13, 2021, the IDA Board approved granting up to $2,251,520 in sales tax exemptions.
b) On August 9, 2022, the IDA Board authorized increasing the total sales tax exemptions available from $2,251,520 to $3,284,534 contingent upon Vireo signing either a standard Lease or an Agent and Equipment Lease.
c) On May 9, 2023, the IDA Board authorized extending from May 31, 2023 to October 31, 2023 the deadline for using sales tax exemptions. This approval was granted contingent upon Vireo signing an Agent and Equipment Lease and paying the balance of the Administrative Fee owed the IDA.
d) To date, the Lease has not been executed.

• At the July 11, 2023 meeting, IDA Board members agreed to create a tagline to supplement the IDA’s Mission Statement.
• Tagline: “WE INCENTIVIZE DEVELOPMENT OPPORTUNITIES.”
• Tagline has been added to IDA’s letterhead.
• Tagline will be added to IDA’s website.

1. Original Four (4) T-Bills:

• In August 2022, the IDA Board invested funds into four (4) Treasury Bills.
• Funds were invested in 3-month, 6-month, 9-month and 12-month T-Bills.
• Interest rates were, at the time:

3-month                 :               2.37%    matures:                11/17/22
6-month                 :               2.89%    matures:                2/16/23
9-month                 :               2.91%    matures:                5/18/23
12-month              :               3.18%    matures:                8/10/23

• The first 3-month T-Bill was reinvested for 12 months in November 2022.
• The second 6-month T-Bill was reinvested for 12 months in February 2023.
• The third 9-month T-Bill was reinvested for 6 months in May 2023.
• The plan was to reinvest the fourth T-Bill for another 12 months.

2. 5^th T-Bill:

• In February 2023, the IDA Board authorized a 5^th T-Bill.
• This T-Bill will expire in August 2023.

3. Current T-Bill Rates:

3-month      :               5.152%
6-month      :               5.172%
9-month      :               5.238%
12-month    :               5.288%

4. Current CD Rates:

5-month      :               5.05%
10-month    :               4.75%
15-month    :               4.0%

5. Money Market:

5.25%

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  He stated that the Board has several options for how it wishes to reinvest the funds that it has in the T-Bills that are coming due.  After a brief discussion, it was the consensus of all present to reinvest the T-Bills into a 12-month T-Bill since it has the highest interest rate.

IDA ACTION:

MOTION:                   Authorize the CFO to renew the existing 12-month T-Bill for 12 months and renew the existing 6-month T-Bill for 12 months.

MADE BY:                Dave D’Amore
SECONDED:             Joe Gillis
VOTE:                        Unanimous

• NYSEDC’s Fall IDA Academy will be held on:

Thursday
November 9, 2023
9:00 a.m. – 4:30 p.m.
3 Willows Event Center
Lyon Falls, New York

IDA DISCUSSION:  Jim Mraz reviewed the information on the Agenda.  He stated he wanted to give Board members a heads up of when the Fall IDA Academy will be held.  He stated once the registration period opens, he will contact IDA members to determine who would like to attend this Fall Academy.

• NYSEDC hired Camoin Associates to assess the value of IDA’s in New York State.
• See attached Summary Report.

IDA DISCUSSION:  Jim Mraz reviewed the NYSEDC’s report that was attached to the Agenda.  Dave D’Amore commented on the one (1) finding that every dollar of taxes abated by IDA’s generate $6.57 in New York State tax revenue.  Jim Mraz pointed out that there were over 411 projects approved by IDA’s since 2018 that have a residential component.  He also pointed out that there were 459 approved projects in downtown corridors.

1. Uniform Tax Exemption Policy (UTEP):

a. At the July 11, 2023 meeting, the IDA Board agreed to add the following Project Types to the UTEP:

1. “Adaptive Reuse Project” shall mean a qualified project that involves adapting or rehabilitating old sites or structures for new purposes that promotes development of existing infrastructure, creates new economic activity and helps eliminate neighborhood blight.
2. “Affordable Housing” shall mean a qualified project whereby the purchase price or rent of the housing is determined by income levels in region and involves subsidies or government assistance.
3. “Qualified Projects” shall include projects eligible for financial assistance (as defined by Section 854IX) of New York General Municipal Law) and shall include such industrial projects (i.e., manufacturing, re-manufacturing, assembly, processing, product research and development, etc.) and non-industrial projects (i.e., warehouse, distribution, qualified retail, commercial, office, housing, hotel, tourist destination, adaptive reuse, etc.).
4. “Senior Housing Project” shall mean a multi-family housing structure where at least 90% of the units are rented to and occupied by persons 60 years of age or older. No benefits will be provided for units not available for rent as senior rental housing.
5. “Tourist Destination Project” shall mean a location or facility which is likely to attract a significant number of visitors from outside the economic development region as established by section two hundred thirty of the economic development law, in which the project is located.
6. “Brownfield Project” shall mean a qualified project which involves the redevelopment of a site listed by the NYS Department of Environmental Conservation on its Environmental Site Remediation Database.

b. With respect to housing projects, the IDA Board previously agreed to amend the UTEP to state that the Board could provide incentives to housing projects contingent upon the Board making a finding that a proposed housing project:

1. Promotes employment opportunities in the County.
2. Prevents economic deterioration in the County.

c. Proposed List of Projects to have PILOT’s Separate from 485-b Model:

1. Brownfield Projects
2. Adaptive Reuse Projects
3. Tourist Destination Projects

d. Proposed PILOT’s:

Brownfield and Adoptive Reuse Projects:

Tax Year                               Exemption

1-6                                          100%
7                                                80%
8                                                60%
9                                                40%
10                                             20%
11                                               0%

or

Tax Year                               Exemption

1-7                                          100%
8                                                75%
9                                                50%
10                                             25%
11                                             Pilot Ends

Tourist Destination Projects:

Tax Year                               Exemption

1-6                                          100%
7                                                75%
8                                                50%
9                                                25%
10                                               0%

or

Tax Year                               Exemption

1-7                                            75%
8                                                50%
9                                                25%
10                                               0%

IDA DISCUSSION:  Jim Mraz reviewed the information on the Agenda.  There was a discussion regarding affordable housing and market-rate housing.  After a brief discussion, it was agreed that definitions for housing and market-rate housing should be added to the UTEP.

Kara Lais stated that the definition for the Tourist Destination Project should be modified to reflect the definition in General Municipal Law.  She stated that the State’s definition states that the customer of the project must be from outside our economic development region.

The IDA Board then reviewed the proposed PILOT’s for Brownfield and Adoptive Reuse Projects and Tourist Destination Projects that were shown on the Agenda.  Dave D’Amore commented that he did not see housing listed as a separate PILOT.  There was a lengthy discussion whether to incentivize housing projects.  After that lengthy discussion, it was agreed that the IDA should incentivize housing projects.  It was agreed to amend the UTEP to state that the IDA will review residential projects on a case-by-case basis and can provide a PILOT up to 30 years in length for residential projects.

Kara Lais said, with housing projects, developers typically come to IDA’s with a PILOT schedule that identifies the specific amount the developer is willing to pay each year to each taxing jurisdiction.  Developers prefer this type of schedule because it locks in property taxes as a fixed and known cost.

After reviewing the information in the Agenda regarding Brownfield, Adoptive Reuse, and Tourist Destination Projects and a lengthy discussion regarding each project type, the IDA Board agreed to amend the UTEP to include the following PILOT schedules:

1. Brownfields:

Tax Year                               Exemption

1-7                                          100%
8                                                75%
9                                                50%
10                                             25%
11                                             Pilot Ends

2. Adoptive Reuse Projects:

Tax Year                               Exemption

1-6                                          100%
7                                                80%
8                                                60%
9                                                40%
10                                             20%
11                                             Pilot Ends

3. Tourist Destination Projects:

Tax Year                               Exemption

1                                              100%
2                                              100%
3                                                80%
4                                                80%
5                                                60%
6                                                60%
7                                                40%
8                                                40%
9                                                20%
10                                             20%
11                                             Pilot Ends

Todd Rulison commented that, with all of these separate PILOT’s for different types of projects, would the IDA lose flexibility?  For example, if a developer wanted to pursue a Brownfields Project but needed 10 years of a 100% exemption, would the IDA be able to do so?  Kara Lais stated the UTEP would still allow the Agency to “deviate” from these PILOT’s.  In that specific example, the Agency could deviate and offer a PILOT of 100% exemption for 10 years if the criteria in the UTEP were met.

Kara Lais stated that General Municipal Law does not specify whether an IDA must notify local taxing jurisdictions when it makes changes to PILOT schedules in its UTEP.  She suggested that the IDA Board give consideration to that.  Jim Mraz stated that his plan was to submit back to the IDA Board the revised UTEP with all of the changes that the Board has approved redlined in that document so that IDA Board members can see where the proposed changes are made.  He said he would present that revised UTEP to the IDA Board at its September meeting.  If the Board finds those draft changes acceptable, he would then send it to all local taxing jurisdictions for their review and comment.  Kara Lais stated that the IDA Board would not be obligated to make changes to the UTEP if it receives comments from a taxing jurisdiction.  Jim Mraz stated that the IDA Board would review all comments received, if any, and decide whether it wants to make changes based upon those comments or not.

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      :           Sue Collins
SECOND        :           Todd Rulison
VOTE             :           Unanimous
TIME              :           9:12 a.m.

MOTION        :           To go out of Executive Session.

MADE BY      :           Sue Collins
SECOND        :           Todd Rulison
VOTE             :           Unanimous
TIME              :           10:09 a.m.

Tuesday
September 12, 2023
8:00 a.m.

MOTION : To close the meeting.
MADE BY : Sue Collins
SECONDED : Mike Fitzgerald
VOTE : Unanimous

TIME : 10:09 a.m.