BOARD OF DIRECTORS MEETING
County of Chautauqua Industrial Development Agency
CCIDA
201 W Third Street, Jamestown, NY
January 23, 2018
10:00 a.m.
Mike Metzger Chairman
Dennis Rak Vice-Chairman
Hans Auer Treasurer
Kim Peterson Secretary
Kelly Farrell DuBois Member
Cory Duckworth Member
Brad Walters Member
Mark Odell Member
Also in attendance:
Rich Dixon CCIDA CFO
Don McCord Senior Planner PED
Greg Peterson Counsel
Matt Mazgaj Counsel
Michelle Turner VP of Marketing
Carol Rasmussen CCIDA Staff
Kristine Morabito CCIDA Staff
Lawrie Taylor CCIDA Staff
Sue Casel CCIDA Staff
Seth Wilmore Cassadaga Wind
Debra Mcaroy Cassadaga Wind
Chuck Leichner Cassadaga Valley
Jason Sample WRFA Radio
Absent Board Member(s):
Meeting was called to order by Mike Metzger, Chairman, at 10:04 a.m.
Mike Metzger
I will now call the County of Chautauqua Industrial Development Agency (CCIDA) Board of Director’s meeting to order. We are meeting at CCIDA, 201 W Third Street, Jamestown, NY. Today is January 23, 2018, (10:04 a.m.)
I will now have roll call.
Kim Peterson – Here, Kelly Farrell DuBois – here, Hans Auer – Here, Dennis Rak – Here, Brad Walters – Here, Mark Odell – Here, Cory Duckworth – Here, and Mike Metzger is here.
Let the record show we have eight members in attendance. We do have a quorum.
I will entertain a motion to accept the December 19, 2017 minutes that were sent to you in advance.
Dennis Rak
So moved.
Kim Peterson
Second.
Mike Metzger
Any discussion? Hearing none – All in favor indicate by saying Aye.
Ayes all around. The motion is carried unanimously.
Mark Odell was welcomed to the Board. We look forward to your input and expertise.
Mark Odell
I am Vice President of Marketing for Econoburn Boilers and General Manager of Hydronic Specialty Supply in the Metropolis of Brocton. I am County Legislator for District 7 which encompasses the Town of Stockton, Village of Cassadaga, Town of Portland, Village of Brocton, and the northeast corner of the Town of Chautauqua.
It is a pleasure to be here, I was humbled to take over the Chair of Planning & Economic Development following our predecessor Mr. Borrello.
Mike Metzger
Next on the Agenda is a Deviation Hearing for Cassadaga Wind.
Matt Mazgaj
On January 4th, Kristine, on behalf of the Agency, sent out a Deviation Hearing notice to all of the effected taxing jurisdictions. A deviation is required when the Agency proposes to allow for property tax financial assistance that deviates from the Uniform Tax Exemption Policy as adopted by the Agency and is available on its website.
In this instance, we have the Cassadaga Wind Farm. The proposed PILOT here as opposed to the UTEP is for $4,000 in PILOT payments per megawatt nameplate capacity of the Project. The proposed project here is 126 megawatts – the first PILOT payment of $504,000. There is an annual escalator which will be an increase by the NYS property tax cap. The PILOT payments will be allocated to the taxing jurisdictions as provided by the general municipal laws, and the notice also identifies payments and due dates.
The purpose of the deviation hearing is to allow for the potentially effected taxing jurisdictions to speak with regard to the deviation. We will open up the floor to those wishing to speak on this proposed deviation.
Chuck Leichner
Good Morning, I’m Chuck Leichner, the Superintendent of the Cassadaga Valley Central School. We’re really here representing our interest. We understand the process, and certainly appreciate the opportunity for a benefit that might come the way of the district. Deb Mcaroy, our Business Official, is here with me.
I think we’ve had our questions answered. We’ve obviously conferred with counsel and understand the process. I think we’re in good shape. We are really here to be a part of the process; looking forward to how things move forward, and we’re available for anything you might need.
Matt Mazgaj
If there isn’t anyone else from the taxing jurisdiction who wishes to speak, we can close the Deviation Hearing.
Mike Metzger
Let’s move on to new business. Dennis, the first Resolution, please.
Dennis Rak
Resolution 01-23-18-01
Resolution Taking Preliminary Action Toward the Acquisition and Straight Leasing of a Certain Project for 2071 Stoneman, LLC and Authorizing the Execution and Delivery of a Preliminary Agreement with the Applicant with Respect to Such Transaction.
Kelly Farrell DuBois
Second.
Rich Dixon
I will let Kristine and Matt say a few words, but I just wanted to talk. The Board has approved the sale of the Stoneman SPEC building to ZTS Corporation. This is moving ahead with the Tax Lease & PILOT on the property. We are excited to get the property in the hands of a private developer. We are excited about the new owner can bring as far as expansion for the tenants.
Kristine Morabito
I would just like to note you should all have received the application. This is the Preliminary Resolution that allows us to take the next steps toward potentially approving the project at the February Board meeting.
Mike Metzger
Is there any further discussion. Hearing none, I will take a rollcall vote.
Kim Peterson – Aye, Kelly Farrell DuBois – Aye, Hans Auer – Aye, Dennis Rak – Aye, Brad Walters – Aye, Mark Odell – Aye, Cory Duckworth – Aye, and Mike Metzger – Aye.
Let the record show the resolution passed with eight votes in the affirmative.
Kim, please read the next resolution.
Kim Peterson
Resolution 01-23-18-02
Resolution Authorizing a Deviation from the Uniform Tax Exemption Policy of the County of Chautauqua Industrial Development Agency with Respect to a Project for Cassadaga Wind LLC.
Cory Duckworth
Second
Mike Metzger
We have Seth Wilmore, Associate Director of Environmental Affairs for Everpower.
Seth Wilmore
I will give a bit of an update on the project, and then a couple of the economic benefits.
You may have seen in the news, the project received its order, which is the Article 10 certificate, with conditions. It’s the first one ever issued, so we’re proud and excited of that. That allows us to take the next step with the project now that we have that permit in hand – final design, final details, etc., so we can proceed with construction.
A lot of these were in the application, but just to talk a bit, about some of the jobs and benefits that were not covered in the PILOT. We are looking at an estimate of 75-100 jobs during construction; 100s of indirect jobs. Indirect jobs are behind the scenes – in the supply chain, design, monitors re: agriculture, farm animal, here on a daily basis as required by Article 10. We are looking at approximately 7-10 direct jobs during the operations. That is something we are going to have to report on through our Article 10 certificate as well. After the project is completed there will be indirect jobs as well – snowplowing.
Other economic benefits provided: host community agreements with all the towns that have turbines – Arkwright, Cherry Creek, and Charlotte – $3,800 per megawatt. So we’re looking at almost $500,000 annually to the three towns. Land owner payments – who are hosting facilities, get a construction payment.
We do have a power purchase agreement in place.
General questions among the Board.
Mike Metzger
What I would like to do since the next three resolutions are for the same project is encompass discussion for all.
Matt Mazgaj
The first resolution is with respect to the deviation. We just had the Deviation Hearing, you’ll be voting one way or the other to approve the deviation for the tax exemption policy.
The second is the SEQRA. In this case it is a Type II action which basically means that the state’s decision and analysis related to the project identifies it as a Type II where no significant impact will happen.
The Final Authorizing resolution will allow for the IDA to enter in to the tax lease/PILOT with the company and execute the documents necessary to allow for sales tax abatement, mortgage recording abatement, and the property tax abatement subject to the PILOT schedule that will be authorized by the deviation.
Mike Metzger
If there is no further discussion, I will take a roll call vote.
Kim Peterson – Aye, Kelly Farrell DuBois – Aye, Hans Auer – Aye, Dennis Rak – Aye, Brad Walters – Aye, Mark Odell – Aye, Cory Duckworth – Aye, and Mike Metzger – Aye.
Let the record show the resolution passed with eight votes in the affirmative.
Brad, if you’d read C please.
Brad Walters
Resolution 01-23-18-03
Resolution of the County of Chautauqua Industrial Development Agency Pursuant to the State Environmental Quality Review Act Concerning the Determination of Significance in Connection with the Cassadaga Wind LLC Project.
Hans Auer
Second.
Mike Metzger
Any further discussion? I will have a roll call vote.
Kim Peterson – Aye, Kelly Farrell DuBois – Aye, Hans Auer – Aye, Dennis Rak – Aye, Brad Walters – Aye, Mark Odell – Aye, Cory Duckworth – Aye, and Mike Metzger – Aye.
Let the record show the resolution passed with eight votes in the affirmative.
Hans, please read resolution D, please.
Hans Auer
Resolution 01-23-18-04
Resolution Taking Official Action Toward and Approving the Straight Lease Documents for a Certain Project for Cassadaga Wind LLC.
Kim Peterson
Second
Mike Metzger
Any more discussion? I will have a roll call vote.
Kim Peterson – Aye, Kelly Farrell DuBois – Aye, Hans Auer – Aye, Dennis Rak – Aye, Brad Walters – Aye, Mark Odell – Aye, Cory Duckworth – Aye, and Mike Metzger – Aye.
Let the record show the resolution passes with eight affirmative votes.
Rich, the Treasurer’s Report, please.
Rich Dixon
I am presenting the final financial statement for 2017. We had a lot of good things happen.
On the balance sheet, I would like to point out is we are very healthy cash wise right now. We are in good shape on the balance sheet.
Reviewed the Profit & Loss Statement. We had a lot of project that have come to fruition this year that have been a long time coming.
I would like to present the Variance Report – payroll & benefits jumped up due to vacation accrual. Professional fees – a lot of that has to do with windfarm legal fees and consultants that we did get payed back and that revenue was up in other income.
All in all, we are pretty close to what we budgeted.
A balance sheet for LECOM and FOB for the Dunkirk Airport was presented.
Mike Metzger
Are there any questions? If not, may I have a motion to accept the Treasurer’s Report?
Dennis Rak
So moved.
Mark Odell
Second.
Mike Metzger
Are there any questions? Hearing none, I will take a vote. All in favor?
Ayes all around. The treasurer’s report is accepted.
Mike Metzger
I would now like to move for a motion to go in to executive session to discuss the financial and credit history of certain companies, the potential acquisition and lease of real property by the Agency, and/or personnel matters.
Kelly Farrell DuBois
So moved.
Cory Duckworth
Second
Mike Metzger
All in favor.
Board Members
Ayes all around.
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Executive Session Begins at 10:40 a.m.
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Executive Sessions Ends at 11:00 a.m.
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Mike Metzger
We are now in open session.
Mike Metzger
If there is no further business, may I have a motion to adjourn?
Kelly Farrell DuBois
So moved.
Hans Auer
Second.
Ayes all around.
Mike Metzger
Meeting adjourned at 11:08 a.m.
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(Assistant) Secretary (Vice) Chairman