BOARD OF DIRECTORS MEETING
County of Chautauqua Industrial Development Agency
Via Zoom Video Conference
January 26, 2021
10:04 a.m.
Mike Metzger Chairman
Dennis Rak Vice Chairman
Gary Henry Secretary
Steven Thorpe Member
Mark Odell Member
Hans Auer Member
Kelly Farrell-DuBois Member
Brad Walters Member
Also in attendance:
Mark Geise Administrative Director/CEO
Richard E. Dixon Chief Financial Officer
Milan K. Tyler, Esq. Counsel
Greg Peterson Counsel
Michael Borrello Counsel
Dan Heitzenrater County Executive Staff
Carol Rasmussen Business Development Manager
Kristine Morabito Business Development Manager
Linda Burns Business Development Manager
Kayla Strandburg Controller
Nate Aldrich Special Project Coordinator/Manager
Jeanette Lo Bellow Administrative Assistant
Rosie Strandburg Executive Assistant
Rebecca Wurster Special Projects Coordinator/Planning Manger
Absent Board Member(s):
Jay Churchill
Meeting was called to order by Mike Metzger, Chairman, at 10:04 a.m.
Mike Metzger
I would like to call to order the County of Chautauqua Industrial Development Agency’s Board of Directors Meeting. This is a Zoom Conference. It is January 26, 2021 and the time is 10:04 a.m. Roll call. Let the record show there are 8 members present, we do have quorum. I will entertain a motion to approve the December 15, 2020 minutes.
Mark Odell
So moved Mr. Chairman.
Dennis Rak
Second that.
Mike Metzger
Motion made by Mark and seconded by Dennis. Any discussion, changes or comments? All those in favor?
Board
Aye.
Mike Metzger
Opposed, abstained, motioned carried unanimously. Now let’s move in to New Business. Please Linda, if you could introduce New Business A.
Linda Burns
Introduced project, provided description of the project, history of the company, location, number of jobs being created, scope of work, assistance being requested, incentives being offered and resolution being presented.
Milan Tyler
Reviewed and explained the resolution being presented to the Board. Loves is negotiating with Town for Host Community Agreement. May influence the PILOT resulting in a Deviation.
Linda Burns
Does the Board have any questions?
Mike Metzger
Questions from the Board?
Mark Odell
Expressed excitement for the project and impact it may have on Ripley Gateway Project.
Mark Geise
Worked with Loves for years now. Through the Host Agreement, it will allow the town to do needed upgrades to water and swear infrastructure.
Mike Metzger
Any other questions or comments?
Brad Walters
What is the time frame for construction?
Linda Burns
Should be completed in 2021.
Rich Dixon
Bids are out for demolition and April 19th is target for groundbreaking.
Linda Burns
Spoke about how Loves takes care of their employees through positions, salary and benefits.
Hans Auer
Expressed excitement over having a “premium brand” coming to our community.
Mike Metzger
If I could please ask Mark Odell to move the resolution.
Mark Odell
Resolution 01-26-21-01 Love’s Preliminary Resolution.
Mike Metzger
Motion made by Mark. Do I have a second?
Dennis Rak
Second.
Mike Metzger
Motion made by Mark and seconded by Dennis. Roll call votes.
Board
Aye – Unanimous
Mike Metzger
Let the record show there are 8 votes in the affirmative. Motion carried unanimously. Now to New Business B.
Rich Dixon
Presented loan requests/descriptions, amounts requested, amount reduced to, how they were affected by COVID, and purposes for the following applicants: Service Manufacturing Group, Monofrax, Dahlstrom Roll Form, National Comedy Centers, STEL, Kosciuszko Polish Home Association, Reg Lenna, Cleaners of Chautauqua, Falconer Power Sports dba Harley Davidson of Jamestown, Lynn Development, Ready About Sailing, Rocky’s Karate, MKJM dba The Landmark, Scott’s Peek n’ Peak, Maple Springs Inn, and Lidos Cresent Inn. Another organization applied but did not have employees and the Loan Committee agreed that employees are needed to qualify.
Mike Metzger
Questions for Rich?
Mark Geise
Reviewed balance of EDA funds, what was spent during Round, and what is being spent in Round 2. Next round is in April. We previously though funds would go heavily towards manufacturing but we are seeing that Tourism and Hospitality is more in need. EDA wanted to make sure we pushed this out to as many sectors as possible.
Mike Metzger
In full transparency, we had a discussion in regard to the risk to our Loan Portfolio based on the loans being presented in Round 2. They are correct that there is risk with these loans and we need to get it out to as many sectors as possible but we must realize we are going to have to adjust our Bad Debt Reserves to represent the level of collateral of these businesses is not of the level or mix of our current portfolio.
Mark Geise
We recognize there is a fair amount of risk associated with these loans. That being said, this is exactly what the EDA asked us to do. We communicate with the EDA every month and they are happy with what we are doing. We expect higher default rates that there has been and we do need to prepare for that.
Rich Dixon
The EDA Cares act is a completely separate funding request and we are keeping it segregated from the Al Tech Fund. As we receive the funds from the EDA, we record it as revenue, and plan for% in bad debt, so we will still show revenue for the year. I don’t want to recognize all the revenue one year and write it off in another. I’m also going to review the All Tech and the CRLF and we will go through that in more detail at our next meeting.
Mark Geise
I don’t know what the chances are of getting additional funding but we are going to see if we can get more money.
Mike Metzger
Thank you Mark and Rich. Any other questions?
Gary Henry
I think you have done a great job. We know that this will be risky but this is what the funds are for and the Loan Committee has done a great job of recommending adjustments to these requests.
Mark Odell
I agree with Gary, the Loan Committee has done a great job. We have a working template.
Mike Metzger
Any other questions or comments?
Rich Dixon
Thanked council, Kayla and BDM’s for their work.
Mike Metzger
Thank you team. Gary can you move New Business B 1?
Gary Henry
Resolution 01-26-21-02 Resolution Of The Members of County Of Chautauqua Industrial Development Agency To Grant Department of Commerce’s Economic Development Administration Award to The Revolving Loan Fund.
Mike Metzger
Motion made by Gary. Do I have a second?
Brad Walters
Second.
Mike Metzger
Motion made by Gary and seconded by Brad. Roll call vote.
Board
Aye – Unanimous.
Mike Metzger
Let the record show there are 8 votes in the affirmative, motion carried unanimously. On to the Executive Directors report.
Mark Geise
Introduced Rebecca Wurster, advised that 2021 Year in Review will be shared in February, and thanked team for their hard work. Does anyone have any questions for me?
Brad Walters
What is going on with ConnectGen?
Mark Geise
We have been working with them on the PILOT since we passed the preliminary resolution. At the present time, we have an energy expert that is assisting us in reviewing ConnectGen’s position paper, which they are trying to justify a certain PILOT payment. We are speaking with them this afternoon and then Wednesday evening they are having a public meeting to share where they are at. On the Legislature side, we previously spoke about a moratorium on large solar projects and it has been decided there are taking a break from that to do some due diligence before they take that action.
Mark Odell
We want to make sure we hear from both sides, have some workshops, and conversations to make the right choice for all.
Mark Geise
ConnectGen is currently doing their Article 10 Review.
Rich Dixon
We passed that resolution some time ago and that kicked in to motion us working with Phillips Lytle to get a Demand Funding Agreement in to place and the company gave us $35,000 to hire experts in this field. People want to know what are we going to get and what is this going to cost us. The company has opted out of Article 10 and they are now in Article 23 but the environmental work won’t be done for a while. We could in 3-4 months pass a resolution outlining what the PILOT will look like and terms so the company has certainty. We are taking the lead of the Town. That Public Meeting is on Thursday and we will get that link out to you.
Hans Auer
We need to project an image that we are open to these types of alternative energy ideas as a region and as a community. From my perspective, investors are demanding that their money be placed with companies in areas that we take in to consideration these ESG components. You’re going to hear about that a lot over the next few years. You’ll also hear a lot more about sustainability and I think that certainty to the developers is one thing but to potential investors who want to do business in our community, they are going to want to our regions is open minded and forward thinking about developing some of these sustainable projects. I know there has to be a balance and a process that considers all side but I think we have a real opportunity and I hope we don’t squander it.
Mark Geise
Amazon is building one of their warehouses in Monroe County and it is businesses like that, that if we pass a moratorium against renewable energy projects will scare business like that away from doing business in our community. Big companies are looking to convert to renewable over time and I think we need to have a positive image.
Rich Dixon
I will send out something I prepared for the legislature about renewable energy.
Mike Metzger
Any questions for Mark? Thanked Rebecca for joining team.
Rebecca Wurster
Thanked everyone and expressed her excitement.
Mike Metzger
Treasurers Report Rich?
Rich Dixon
I spoke with Hans and with all that is going on with the Cares Act; we will do our report in February.
Mike Metzger
Thank you Rich. I’m going to entertain a motion to move to Executive Session. Do I have a motion?
Dennis Rak
So moved.
Mike Metzger
Thank you Dennis. Do I have a second?
Steven Thorpe
Second.
Mike Metzger
Motion made by Dennis and seconded by Steven. All those in favor?
Board
Aye – Unanimous.
Executive Session
Start Time: 10:48 a.m.
Mike Metzger
I will now accept a motion to exit Executive Session.
Dennis Rak
So Moved
Mike Metzger
Motion made by Dennis. Do I have a second?
Steven Thorpe
Second.
Mike Metzger
Motion made by Dennis and seconded by Steven. There were no actions taken in Executive Session and therefore there are no minutes to be taken.
Executive Session
End Time: 10:57 a.m.
Mark Odell
No actions were taken in Executive Session; therefore no minutes will be taken.
Mike Metzger
Any Old Business to come before the Board? Hearing none. Thanked Board and Staff. Meeting is adjourned.
Meeting adjourned at 10:59 a.m.
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(Assistant) Secretary (Vice) Chairman
