BOARD OF DIRECTORS MEETING
County of Chautauqua Industrial Development Agency
Fredonia Technology Incubator
214 Central Ave., Dunkirk, NY 14048
February 26, 2019
10:05 a.m.
Mike Metzger Chairman
Mark Odell Member
Gary Henry Member
Dennis Rak Member
Brad Walters Member
Also in attendance:
Mark Geise CCIDA CEO
Rich Dixon CCIDA CFO
Greg Peterson Counsel
Carol Rasmussen CCIDA Staff
Linda Burns CCIDA Staff
George Cregg Hodgson & Russ
William Reynolds Lawson Boat & Motor LLC
Mary Heyl Dunkirk Observer
Absent Board Member(s): Kelly Farrell Dubois, Hans Auer, & Steve Thorpe
Meeting was called to order by Mike Metzger, Chairman, at 10:05 a.m.
Mike Metzger
I would like to call to order the County of Chautauqua Industrial Development Agency Board Meeting. We are at the SUNY Fredonia Technology Incubator at 214 Central Ave, Dunkirk NY. It is December 28th, 2018 and it is 10:05 a.m.
Roll call-quorum. Change in the order of the Agenda. I would like to entertain a motion for the approval of the minutes from December 18, 2018.
Mark Odell
So moved Mr. Chairman,
Brad Walters
Second.
Mike Metzger
Motion made by Mark and second by Brad. Any discussions, changes, revisions? Hearing none. All those in favor?
Board
Aye- Unanimous.
Mike Metzger
Opposed, abstained? The minutes have been approved. I’d like to move in to New Business. Let’s have a motion to address the Revenue Recognition Policy.
Gary Henry
So Moved.
Brand Walters
Second
Mike Metzger
Moved by Gary and second by Brad. Discussion please.
Rich Dixon
We reviewed a recommendation by the Auditors that we have a Revenue Recognition Policy. We had a few projects where our fees were spread out over 5 years or more and they wanted us to come up with a policy that stated when we recognized that revenue. The Governance Committee met and approved this Revenue Recognition Policy and the policy is attached and puts down in writing what we have been doing. If we approve this policy we can approve the minutes after that.
Dennis Rak
What is the trigger point to recognize?
Rich Dixon
*Provided examples. We have only recognized for the payment we have received, which are non-refundable. We try to be conservative in the policy.
Mike Metzger
We don’t want to overstate our revenue position. Our Auditors approved this policy and we’ll be using it going forward. We have a motion Gary and a second by Brad on the Revenue Recognition Policy. Is it ok to approve both the minutes and the adoption of the policy as part of that motion?
Board
Yes- unanimous.
Mike Metzger
Ok, thank you. Any further discussion? Hearing none. All those in favor?
Board
Roll call vote – unanimous.
Mike Metzger
Let the record show there are 5 votes in the affirmative. Motioned carried unanimous. May I have a motion for Bew Business “B 1”?
Mark Odell
Resolution 02-26-19-02 Final SEQR Resolution – so moved.
Brad Walters
Second.
Mike Metzger
Motion made by Mark and second by Brad. Discussion please.
Rich Dixon
Mark Maytum came to the Board a few months back with a project of stringing fiber to the rural areas of Northern Chautauqua County. Not feasible to do without grant funding. They received a grant but still the project needed some help so we entered in to an agreement with DFT to do a PILOT on the new fiver lines, polls, etc. On behalf of the IDA here is George Cregg.
George Cregg
There is two resolutions, there is the SEQR Resolution- as you know whenever the IDA does anything involving physical changes you should make a SEQR Determination. The State made a SEQR Determination in connection with the approximate $4 million dollar grant they made for this project but this project was a Type 2 Action because it’s basically putting equipment on their existing polls. They did put up a few new polls; they are putting on things that I do not understand. The first resolution would have the IDA determine that this is a Type 2 Action that therefore you don’t have to do anything under SEQR with respect to the project. The second resolution is an Approving Resolution and I passed out to everybody a new Exhibit A to this resolution. What this resolution does is it authorizes you to proceed with project and in compliance with the State law that passed a few years ago where the State auditors would get confused when IDA’s were doing a project and they couldn’t figure out that you caused new people to be hired permanently and then the IDA would then explain to them why the IDA did the project. The State said then we want you to put in the documents why you did the project. The purpose of this new schedule A is to list the expected benefits you expect to get from this project, which we think are the construction jobs, private sector investment, and other benefit of high speed internet to other parts of the county which could impact economic development throughout the County.
Mark Geise
The economics of running the cable without the State funding was unachievable but with the State coming in and providing funding and DFT stepping up to the plate to do this, I’m just happy the IDA could be a part of it.
George Cregg
We’ve been told that the company has constructed 80% of the project already and they are not looking for sales tax benefits and they don’t appear to be looking for a mortgage tax benefit. The real benefit they are looking for it to exempt this property under UTEP. If you authorize these resolutions the company would like to close by March 1.
Mike Metzger
Are there any other questions of George? Hearing none.
Roll Call Vote- Unanimous
Gary would you please move New Business B 2?
Gary Henry
Resolution 02-26-19-03 Approving Resolution.
Brad Walters
Second.
Mike Metzger
Motion made by Gary, second by Brad. Further discussion George?
George Cregg
No.
Mike Metzger
Any other questions from the Board? Hearing none.
Roll call vote- Unanimous
Now we will review the Transaction Committee minutes.
Linda Burns
Last week we held an off schedule Transaction Committee Meeting to gain preliminary agreement to proceed with the Lawson Boat Motor application for assistance with their project, which is to repair and restore a non-working marina located on Fluvanna Avenue, in the Town of Ellicott and the City of Jamestown. The meeting was held off schedule to provide sufficient time for the minimum 30 day public comment, for the notice of completion of the draft EIS. The applicant has requested financial assistance for a sales and use tax exemption, mortgage tax exemptions and real property tax exemption. $1.6 million dollar project is well underway with roughly $632,000 injected to date. The remaining million thirty five phase of the project is for the portion which they are seeking our assistance. The total tax savings for the project is estimated at $315,439. Mike Metzger asked if the project addressed remediating the known environmental issues with the project. Andy Johnson, the project engineer responded that the majority of the cleanup has been completed, according to regulation and the remaining funds allocated to cleanup should be sufficient. Unanimous vote was approved for a preliminary agreement resolution, CCIDA SEQR as lead agent, move forward with public hearings and final presentation for approval would be scheduled for our next scheduled Board Meeting. *Linda went on to provide details of the project.
Bill Reynolds
*Provided personal background and how it relates to the project, and the history of the project. Also spoke about work being done to connect with other local business (Chautauqua Harbor Hotel, Gebbie Foundation, & Audubon Nature Center). Read Mission Statement for organization. Provided copy of engineer report.
Rich Dixon
Can a Jet Ski be on the river and go to the Comedy Center?
Bill Reynolds
Yes. There is a speed limit and you‘ll just have to be careful of the weeds.
Mark Geise
*Spoke about Bathometric survey that is being done on the river.
Rich Dixon
How is the current?
Bill Reynolds
Depends on the kind of boat, size and season. 3.3 miles all the way to the dam.
Mike Metzger
I would like to entertain a motion to approve the Transaction Committee minutes.
Mark Odell
So moved Mr. Chairman.
Brad Walters
Second.
Mike Metzger
Any further discussion? Hearing none.
Rollcall vote- Unanimous.
Turning it over to Mark to review our Board Survey.
Mark Geise
*Spoke about what the survey is, why it’s sent and the results. Also spoke about the Board Q&A and Board Performance Reports.
Mike Metzger
Brad would you like to move the Audit Committee Minutes?
Brad Walters
So Moved.
Gary Henry
Second.
Mike Metzger
Motion made by Brad and second by Gary. Discussion please?
Rich Dixon
*Advised Audit Committee minutes were mistakenly left back at the office. Gave a verbal report of minutes. Discussed who was present at the meeting and what BWB reviewed. Biggest risk is the Al Tech Loan Fund and it is thoroughly reviewed by auditors.
Mike Metzger
Brad could you table or remove your motion? And Gary? We will wait until we have the minutes to approve them. We will put then on the agenda for next meeting.
Mark Geise
*Executive Directors report – Spoke about: Hops Barley Co-Op incentive, Recruitment Brochure, One-Stop Website, Ripley Gateway Commerce Center, Fiber Optic Cable at Stoneman Park, Brownfield Development Strategy, Economic Development Strategy, Consensus Strategy for Chautauqua Lake, LECOM, Solar Incentives, Edgewood Warehouse, Athenex, Webb’s, Colburn Block, CGR – program that allows IDA’s to plug info about projects and create cost benefit analysis and board report, and CFAs – list of about a dozen, which will be narrowed down.
Mike Metzger
Any questions of Mark? Now to Treasurers Report.
Rich Dixon
*Reviewed financials.
Mike Metzger
Any other questions? Hearing none. I would like to entertain a motion to accept the Treasurers Report as submitted.
Mark Odell
So moved Mr. Chairman.
Brad Walters
Second.
Mike Metzger
Any further discussion? Hearing none. All those in favor?
Board
Aye- Unanimous.
Mike Metzger
Now would like to entertain a motion to move in to Executive Session for the purposes of discussing the acquisition of property, personnel matters, and financial status of companies. Do I have a motion?
Dennis Rak
So moved.
Gary Henry
Second.
Mike Metzger
All those in favor?
Board
Aye – Unanimous.
Mike Metzger
We are in Executive Session.
Executive Session Begins at 11:16 a.m.
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Executive Sessions Ends at 11:35 a.m.
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Mike Metzger
I would entertain a resolution to accept the revisions to the Al Tech Revolving Loan Fund Plan as presented.
Mark Odell
So moved.
Gary Henry
Second.
Mike Metzger
Any further discussion? Hearing none. All those in favor?
Board
Aye- Unanimous.
Mike Metzger
Next meeting will be at BWB on Tuesday at March 26th at 10:00am. I will be out of the country so Dennis it’s all yours.
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Meeting adjourned at 11:40 a.m.
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(Assistant) Secretary (Vice) Chairman
