BOARD OF DIRECTORS MEETING
County of Chautauqua Industrial Development Agency
SUNY Fredonia Incubator
214 Central Avenue, Dunkirk, NY
August 22, 2017
10:00 a.m.
Mike Metzger Chairman
Dennis Rak Vice-Chair
Hans Auer Treasurer
Kelly Farrell DuBois Member
George Borrello Member
Brad Walters Member
Cory Duckworth Member
David Bryant Member
Also in attendance:
Kevin Sanvidge Adm. Director/CEO
Rich Dixon CFO
Greg Peterson Counsel
Michelle Turner VP of Marketing
Carol Rasmussen CCIDA Staff
Lawrie Taylor CCIDA Staff
Kristine Morabito CCIDA Staff
Sue Casel CCIDA Staff
Edward Hayes City of Dunkirk Development Dept.
Bill Gugino Erie Land Development, LLC
Isaac Gratto Cockaigne
Adam Pirtz Cockaigne
Rex Butcher Cockaigne
John D’Agostino Observer
Absent Board Member(s): Kim Peterson
Meeting was called to order by Mike Metzger, Vice-Chair, at 10:02 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 SUNY Fredonia Incubator, 214 Central Avenue, Dunkirk, NY. Today is August 22, 2017 (10:02 a.m.)
I will now have roll call.
Brad Walters – Here, Kelly Farrell DuBois – Here (arrived 10:08 am), Hans Auer – Here, David Bryant – Here, Dennis Rak – Here, Cory Duckworth – Here, George Borrello – Here, and Mike Metzger – Here.
We have a quorum and will begin the meeting.
I would like a motion to accept the July 25 & August 11, 2017 minutes that you had received in advance.
George Borrello
So moved.
Dennis Rak
Second.
Mike Metzger
Any discussion? Hearing none – All in favor indicate by saying Aye.
Ayes all around – The minutes are accepted.
Let’s move on to new business. Dennis, the first Resolution.
Dennis Rak
Resolution 08-22-17-01
Resolution of the County of Chautauqua Industrial Development Agency Pursuant to the State Environmental Quality Review Act Concerning the Determination of Significance for Cockaigne Development LLC.
David Bryant
Second.
Carol Rasmussen
Resolutions 1 & 2 have to do with a PILOT/Tax Lease for the Cockaigne Recreation Center. Isaac Gratto and Adam Pirtz are here today to answer any questions.
The first resolution has to do with the SEQRA. It has a negative declaration (there are no environmental concerns) and needs approval by the Board before we do the second resolution, which approves the Straight Lease and PILOT. This will give them their sales tax, mortgage tax, and property tax abatement.
A brief overview of the project was given. There was general discussion regarding their plans.
Mike Metzger
If there is no further discussion, I will take a roll call vote.
Brad Walters – Aye, Kelly Farrell DuBois – Aye, Hans Auer – Aye, David Bryant – Aye, Dennis Rak – Aye, Cory Duckworth – Aye, George Borrello – Aye, and Mike Metzger – Aye.
The Resolution is passed. David, the next Resolution, please.
David Bryant
Resolution 08-22-17-02
Resolution Taking Official Action Toward and Approving the Straight Lease Documents for a Certain Project for Cockaigne Development LLC.
Cory Duckworth
Second
Mike Metzger
If there is no discussion, I will take a roll call vote.
Brad Walters – Aye, Kelly Farrell DuBois – Aye, Hans Auer – Aye, David Bryant – Aye, Dennis Rak – Aye, Cory Duckworth – Aye, George Borrello – Aye, and Mike Metzger – Aye.
The Resolution is passed. Cory, Resolution C, please.
Cory Duckworth
Resolution 08-22-17-03
Resolution Authorizing an AL Tech Loan for Blackstone Advanced Technologies, LLC.
Brad Walters
Second.
Carol Rasmussen
The Loan Review Committee met with Blackstone Advanced Technologies LLC requesting a loan for a piece of equipment. Blackstone is requesting a loan of $200,000, for 7 years, at 4%. The new equipment will allow them to be more efficient, get more business, and hire more employees. They will have less outsourcing allowing them to do more in house.
The loan was approved by the Loan Review Committee.
Mike Metzger
Is there any further discussion, hearing none, I will take a roll call vote.
Brad Walters – Aye, Kelly Farrell DuBois – Aye, Hans Auer – Aye, David Bryant – Aye, Dennis Rak – Aye, Cory Duckworth – Aye, George Borrello – Aye, and Mike Metzger – Abstain.
The Resolution is passed. Kelly, Resolution D, please.
Kelly Farrell DuBois
Resolution 08-22-17-04
Resolution Taking Preliminary Action Toward the Acquisition and Straight Leasing of a Certain Project for Erie Land Development, LLC, and Authorizing the Execution and Delivery of a Preliminary Agreement with Respect to Such Transaction.
George Borrello
Second
Kristine Morabito
Bill Gugino is with us today to discuss his project in more detail.
The Board should have received an application related to this project requesting sales tax abatement and mortgage recording tax abatement.
This project is to develop a market rate community virtually across the street from the new Athenex development in the City of Dunkirk.
Bill Gugino
We have been working on this project for well over a year. We looked at the housing market here, and realized there is a need for market rate units for rent. We are also looking at future development in this particular property. The property is 31 acres. The plans on the first phase would be approximately 100 units of market rate apartments. Basically, would be 8 units (4 up 4 down with private entrances). They would all have outdoor patios – 2 bedrooms, 2 baths, and washer/dryer in each unit. We have a club house plan as the development progresses. Our plans are to build the first 32 units as soon as we get all of our approvals.
Phase II & III will depend on the market.
There was general discussion among the Board regarding the project.
Mike Metzger
If there is no discussion, I will take a roll call vote.
Brad Walters – Aye, Kelly Farrell DuBois – Aye, Hans Auer – Aye, David Bryant – Aye, Dennis Rak – Aye, Cory Duckworth – Aye, George Borrello – Aye, and Mike Metzger – Aye.
The Resolution is passed. 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 and the potential acquisition and lease of real property by the agency.
Dennis Rak
I so move.
Kelly Farrell DuBois
Second.
Mike Metzger
All those in favor.
Board
Ayes all around. We are now in Executive Session.
Executive Session begins at 10:31 a.m.
Executive Session ends at 10:57 a.m.
Mike Metzger
We are now back in Regular Session. Brad, please read Resolution E.
Brad Walters
Resolution 08-22-17-05
Resolution of the Members of the County of Chautauqua Industrial Development Agency to Approve an Assignment and Assumption of $350,000 of Ruhlman Industrial Properties, LLC, and Rand Machine Products, Inc. Note and Mortgage to Five Star Bank.
Kelly Farrell DuBois
Second
Mike Metzger
This was discussed during Executive Session. If there is no discussion, I will take a roll call vote.
Brad Walters – Aye, Kelly Farrell DuBois – Aye, Hans Auer – Aye, David Bryant – Aye, Dennis Rak – Aye, Cory Duckworth – Aye, George Borrello – Aye, and Mike Metzger – Aye.
The Resolution is passed. Rich, the Treasurer’s report, please.
Rich Dixon
Take a look at the Balance Sheet. We previously talked about receiving the $812,000 injection. We have a bad debt reserve of $641,000 in AL Tech and $40,000 in CRLF.
An overview of the Treasurer’s report was given. Budget variances were reviewed.
George Borrello
So moved.
Kelly Farrell DuBois
Second.
Mike Metzger
Are there any questions? Hearing none – All in favor indicate by saying Aye.
Ayes all around – The Treasurer’s report is accepted.
Is there anything more to come before the Board? If not, may I have a motion to adjourn?
Cory Duckworth
So moved.
Dennis Rak
Second.
Mike Metzger
All those in favor – Ayes all around.
This meeting is adjourned. Meeting adjourned at 11:11 a.m.
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(Assistant) Secretary (Vice) Chairman