PRESENT:

MIKE FITZGERALD, CHAIRMAN
SUE COLLINS, VICE CHAIRMAN
JOSEPH GILLIS, SECRETARY
TODD RULISON, TREASURER
JOSEPH SEMIONE, MEMBER
DAVID D’AMORE, MEMBER
GREG TRUCKENMILLER, MEMBER
JAMES MRAZ, EXECUTIVE DIRECTOR
KARA LAIS, FITZGERALD, MORRIS, BAKER, FIRTH PC
SCOTT HENZE, PLANNING DIRECTOR
LESLIE FORD, FULTON COUNTY CENTER FOR REGIONAL GROWTH (ZOOM)
DAVID KIMMEL, PRESIDENT, TWO PLUS FOUR
CONSTRUCTION/LAKEWOOD DEVELOPMENT, LLC

MOTION        :           Accept as presented.
MADE BY      :           Joseph Semione
SECONDED  :           Dave D’Amore
VOTE             :           Unanimous

MOTION        :           Accept as presented.
MADE BY      :           Mike Fitzgerald
SECONDED  :           Sue Collins
VOTE             :           Unanimous

A. Nominating Committee

• No report.

B. Audit Committee:

• Monthly Bank Reconciliation Report:  Mike Fitzgerald

IDA DISCUSSION:  Mike Fitzgerald 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.)  Dr. Leslie Ford

IDA DISCUSSION:  Leslie Ford presented the FCCRG Report that was attached to the Agenda.  She stated that the Brownsfield Summit was very successful.  She stated that, in 2022, there were 103 participants.  In 2023, there were 210 registered and 25 walk-ins.  She stated that as a follow-up to that meeting, a developer has expressed an interest in a couple of buildings in Gloversville.

1. Background:

• Kimmel works in housing and real estate development.
• His company has experience developing new housing.
• Chairman Fitzgerald contacted Mr. Kimmel and asked if he would speak with the IDA Board. Kimmel agreed.

2. Presentation:

IDA DISCUSSION:   Dave Kimmel made a presentation to the IDA Board regarding the development of new housing and the role IDA’s can play in assisting.  He talked about how a community can attract housing developers.  He said communities can help foster housing development by identifying sites, having zoning in place to promote housing and to understand what the market is for housing in your community.  He said a community needs to understand the types of housing needed and what types of housing the local market can support.  He stated having a community involved in identifying sites and proper zoning is important with respect to the not-in-my-backyard syndrome, which can often be a detriment to development of new housing.  He said some opposition to housing projects is not based on knowledge but more on fear.

David Kimmel stated that an IDA can play an important role in the development of  housing by serving as a quarterback for the project.  He then reviewed three (3) projects his firm has been involved with.  The first is the Watkins-Glen Middle School Project that the Schuyler County IDA was actively involved with.  He stated that a 25-year PILOT was approved for that project, along with sales and mortgage tax exemptions by the Schuyler County IDA.  The next project was the 23 North Apartments in Wellsville, New York.  He stated, in this project, the Village of Wellsville purchased a building and contacted Two Plus Four Companies to renovate the project into senior housing.  The third project was a project that was pursued in Watkins Glen that did not move forward.  He stated there was a $780,000 acquisition cost, but there was also $800,000 in remediation costs that were going to be incurred.  He stated the State denied funding because the adjusted purchase price that they calculated showed to be a loss.  As a result, they denied funding for the project.  He stated the company spent $90,000 pursuing this project, but it didn’t go forward.

• Amendment to extend Option Term to December 31, 2023 has been executed.

1. Tryon Electric Service:

• Efforts are now being made to identify those representatives from National Grid and Winstanley Enterprises who should be participating in the discussion of what options are available to bring more power to Tryon.

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  He stated a date has been selected for later this month to have this initial meeting between Winstanley Enterprises and National Grid representatives.

1. Status Report:

• The new generator was delivered to Tryon on Thursday, May 4, 2023.

IDA DISCUSSION:  Jim Mraz reviewed the information on the Agenda.  He stated Koval will hopefully be back at the site this week to train County facilities staff for how to operate and maintain the new generator.

1. Deadline for Using Sales Tax Exemptions:

a) On July 13, 2021, the IDA Board adopted a Resolution regarding the Vireo Health Project that:

1. Appointed Vireo Health as the IDA’s Project Agent.
   2. Established the total project cost to be $55,000,000.
   3. Set July 31, 2022 as the date when the sales tax exemptions expire.

b) On August 9, 2022, the IDA Board extended the deadline for using sales tax exemptions to May 31, 2023.

2. Request from Vireo Health:

a) Vireo is requesting to extend the deadline for taking sales tax exemptions to October 31, 2023.

b) Vireo Health is making these requests because:

1. Delays in completing project due to proposed acquisition by Verano Holdings.
   2. Redesigning and re-permitting the project.
   3. Lead time in acquiring certain equipment, particularly electrical equipment.

3. Total 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.

IDA DISCUSSION:  Jim Mraz reviewed the information on the Agenda.  Kara Lais stated that she spoke with IDA Counsel last week regarding the Agent and Equipment Lease.  She stated that she was advised that they are prepared to execute that document.  She stated that it does not appear that Vireo will be moving forward with executing a PILOT.  Although this decision has been finalized, IIP, the company financing the project, has some concerns with respect to the PILOT.

IDA ACTION:

MOTION:                   To approve extending the deadline for taking sales tax exemptions from May 31, 2023 to October 31, 2023 and to authorize the IDA Chairman to execute an ST-60 form with filing this form contingent upon the receipt from Vireo Health a signed Agent and Equipment Lease and the balance of the administrative fee due the IDA.

MADE BY:                 Todd Rulison
SECONDED:             Sue Collins
VOTE:                        Unanimous

• R & R Farms desires to lease approximately 55 acres of land at Tryon to grow corn.
• R & R Farms has offered $30/acre to do so.

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  Joe Semione asked if there were other lands that could be leased to R & R Farms?  Jim Mraz stated that this is most of the land that is available for R & R Farms.

IDA ACTION:

MOTION:                   To authorize the Chairman to sign a Lease with R & R Farms to lease approximately 55 acres at Tryon to grow corn.

MADE BY:                 Sue Collins
SECONDED:             Dave D’Amore
VOTE:                        Unanimous

1. Background:

• IDA owns .251 acre parcel on east side of NYS Route 30A across from Johnstown Industrial Park.
• DJF Motorsports has offered to purchase the parcel.

2. Appraisal:

• IDA is required to have an appraisal done if it desires to sell property.
• Whittaker Appraisal Group submitted a quote for $400 to prepare appraisal.

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  He stated that DJF Motorsports has agreed to pay the IDA’s legal fees for this transaction.  The IDA would pay for the appraisal.

IDA ACTION

MOTION:                 To authorize Whittaker Appraisal Group to prepare an appraisal on the parcel at a fee of $400.

MADE BY:               Dave D’Amore
SECONDED:            Joseph Semione
VOTE:                       Unanimous

• The IDA Board, on August 16, 2022, invested funds into 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.
• Current interest rates as of May 2, 2023 are:

3-month      :               4.720%
6-month      :               4.680%
9-month      :               4.515%
12-month    :               4.590%

• The plan was to reinvest the third T-Bill for another 12 months.

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  He stated that NBT’s money market is now earning 4.25%.  He stated the IDA has the option of taking this 9-month T-Bill and just putting the money into the money market account or reinvesting it into a T-Bill.  He stated the T-Bill would lock in the rate, whereas, the money market the rate could still go up or down.  After a brief discussion, it was agreed to deviate from the previous plan of reinvesting these T-Bills into 12 months given that the 3-month rate is now more than the 12-month rate.

IDA ACTION:

MOTION:                   Authorize the CFO to renew the existing 9-month T-Bill for 3 months.

MADE BY:                 Joseph Semione
SECONDED:             Dr. Greg Truckenmiller
VOTE:                        Unanimous

• The IDA has received the following invoices from Fitzgerald Morris Baker Firth for legal services:

– Benjamin Moore Expansion Project :               $1,996.46
– HDC2Company (Hoffman Carwash) :               $2,179.44
– HDC2 Company (Hoffman Carwash) :               $   20

MOTION:                   To authorize the payment of these three (3) invoices to Fitzgerald Morris Baker Firth:

MADE BY:                 Sue Collins
SECONDED:             Mike Fitzgerald
VOTE:                        Unanimous

1. Background:

• IDA’s existing Mission Statement was approved in 2012.

2. Existing Mission Statement:

“The IDA’s mission is to create and promote economic growth and prosperity for both residents and entrepreneurs in Fulton County.  The IDA’s role in Fulton County’s Economic Development Program is to develop and maintain an inventory of shovel-ready sites for new and expanding businesses, offer financial incentives, as may be required, to encourage the creation of new and retention of existing jobs and expand the County’s tax base.  In doing so, the IDA strives to make Fulton County a desirable place to live and do business. “

3. ABO Policy Guidance Regarding Mission Statements:

a. A mission statement should capture in a few clear and concise sentences the purpose of the public authority, its goals and its reason for existence. The mission statement should address the intent and purpose for which the public authority was created.  It should express the philosophy and guiding principles of the public authority, and provide staff and the public with an understanding of the values and culture of the organization.  It should describe generally the services the public authority provides, the community it serves, and the reasonable expectations of its stakeholders.  The mission statement should also be specific enough to be able to assess the organization’s performance and to measure its success in achieving its intended public purpose.

b. When drafting a mission statement and evaluating its effectiveness, ask the following questions:

• What is the public purpose for which the authority was created?
• How can we best achieve that purpose?
• How do we assess whether an action or decision before the board is consistent with this mission and the public interest?
• Who are the authority’s stakeholders?
• What are the authority’s goals?
• What are the values of the authority?

IDA DISCUSSION:   Jim Mraz reviewed the information on the Agenda.  Dave D’Amore stated that the point of this exercise is to try to get the IDA to focus on what we are trying to do.  He stated IDA’s no longer do just industrial work as the name implies.  Other IDA’s are trying to rebrand themselves to be more than just industrial.  Greg Truckenmiller reaffirmed that IDA’s are not just industrial.  He stated, for example, many IDA’s are involved with pursuing housing and creating infrastructure for a community.  He stated that IDA’s duties are expanding.  Dave D’Amore suggested a revised Mission Statement be:  “we provide opportunities for economic development or economic growth.”  Joe Semione suggested: “we offer incentives to Fulton County businesses.”  There was a brief discussion regarding creating a Mission Statement and then a Strategy Statement.  Jim Mraz suggested that he come back with some ideas for a future meeting based upon the input received today.  He stated it may take the IDA Board several meetings and discussions to reach a consensus on how to revise its Mission Statement.

1. Brownfields Summit:

• Brownfields Summit was conducted on April 25-26, 2023 at Herkimer County Community College.
• Mike Fitzgerald and Sue Collins attended.

IDA DISCUSSION:   Mike Fitzgerald stated there was a lot of discussion regarding financing stacks that are involved with redevelopment of Brownfield sites.  He talked about the cost to clean up contamination and how funding for that cleanup often involves developers’ equity, traditional bank financing and government grants.  Sue Collins stated that one takeaway she had from this Summit was the multiple funding sources needed for Brownfield projects.  She stated Brownfield projects need developers with experience and knowledge of these various funding programs.  Mike Fitzgerald referenced how a developer commented that he does not like to work on projects that have multiple property owners.  He stated he prefers to have projects involved with just one (1) owner.  Mike Fitzgerald also referenced that EPA has a multi-purpose grant that can provide up to $800,000 in grant funding for asbestos cleanup.

• FCCRG will be hosting a Fulton County Small Business Symposium on:

Tuesday
June 13, 2023
4:30 – 7:00 p.m.
Holiday Inn

• IDA will have a table at this event.
• See attached flyer.
• See IDA handouts.

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      :           Dave D’Amore
SECOND        :           Dr. Greg Truckenmiller
VOTE             :           Unanimous

TIME              :           9:25 a.m.

MOTION        :           To go out of Executive Session.

MADE BY      :           Dr. Greg Truckenmiller
SECOND        :           Joseph Semione
VOTE             :           Unanimous

TIME              :           10:14 a.m.

Tuesday
June 13, 2023
8:00 a.m.

MOTION        :           To close the meeting.
MADE BY      :           Sue Collins
SECONDED  :           Dave D’Amore
VOTE             :           Unanimous

TIME              :           10:14 a.m.