BOARD OF DIRECTORS MEETING
County of Chautauqua Industrial Development Agency
BWB Building
201 West Third Street, Jamestown, NY
2nd Floor Board Room
&
Fredonia Technology Incubator
214 Central Avenue, Dunkirk, NY
2nd Floor Conference Room
July 26, 2022
10:02 a.m.
Michael Metzger Chairman
Gary Henry Secretary
Brad Walters Member
Kevin Muldowney Member
Rhonda Jonson Member
Steven Thorpe Member
Also in attendance:
Mark Geise Administrative Director/CEO
Richard E. Dixon Chief Financial Officer
Milan K. Tyler, Esq. Counsel
Greg Peterson Counsel
Carol Rasmussen CCIDA Staff
Kristine Morabito CCIDA Staff
Crystal Erhard CCIDA Staff
Jeanette Lo Bello CCIDA Staff
Rosie Strandburg CCIDA Staff
Kayla Strandburg CCIDA Staff
Jason Toczydlowski CCIDA Staff
M.J. Stafford Dunkirk Observer
P.J. Wendel County Executive
Ben Troche County Executive Staff
Nate Aldrich CCIDA Staff
Richard Smith Ghostfish Brewing
Adam Gurga Ghostifsh Brewing
Brian Thiel Ghostfish Brewing
Matt Swank Ghostfish Brewing
Nathan Rizzo Solar Liberty
Adam Rizzo Solar Liberty
Matt Longman Seaboard Solar
Adam Rizzo Solar Liberty Portland Community, LLC
Nathan Rizzo Solar Liberty Portland Community, LLC
John Gula ABO
Absent Board Member(s):
Hans Auer Treasurer
Jay Churchill Member
Dennis Rak Vice Chairman
Meeting was called to order by Mike Metzger, Chairman, at 10:02 a.m.
Mike Metzger – Good Morning. I would like to call the County of Chautauqua Industrial Development Agency Board of Director’s Meeting to order and its being held at the BWB Building at 201 West Third Street, Jamestown New York. We are at the second floor Board Room. We have others people from our team located at the Fredonia Technology Incubator at 214 Central Avenue in Dunkirk New York second floor conference room. We also have our Executive Director calling in via phone. We are also electronically via livestream and zoom. It is July 26, 2022 and it is shortly after 10:00 a.m. and we do have quorum. Roll call please.
Board
Aye – Unanimous.
Mike Metzger
Let the record show that there are six members present and we have quorum. I will entertain the motion to approve the June 28, 2022 minutes.
Gary Henry
So moved.
Mike Metzger
I have a motion by Gary, do I have a second?
Rhonda Johnson
Second.
Mike Metzger
I have a second by Rhonda. Thank you. You have received these previously. Thank you Jeanette. Any changes, corrections, comments? Hearing none, all those in favor.
Board
Aye – Unanimous.
Mike Metzger
Opposed? Abstained? Motion carried unanimously. Thank you. We are fortunate enough as always to have our County Executive PJ Wendel here. I would like to ask you if you would like to make a comment.
PJ Wendel
No. I would just like to thank everybody for all the work that you’ve been doing The White Inn, we were able to get that moving forward. One of the points, and I don’t know how we can do it for clarity- I was fielding a question at Camp Days at Tim Hortons – somebody rather irate. A lot of the concerns because the IDA has been involved in PILOTS with industry. The assumption is out there that any new business that comes in the IDA has an involvement. The woman was concerned that the IDA and the County need to step in for the assessment at Kmart. I reached out to Mark and they said they predominately involve themselves in the retail side of it, but if at some point we can get clarity for that publicly, because it’s a confusing part to some people. I don’t mind fielding the questions and I relay that to them. More and more people just don’t understand what the IDA exactly does when it comes to helping businesses. Again, great work on what’s been happening. I know there are some other great things. Rich and Mark always keep me in the loop. Just really excited to see the growth that we do have here in Chautauqua County.
Mike Metzger
Thank you. I see Jason has been doing an excellent job at our marketing communications. Thank you. We will make sure that we include that in future communications. Good point. Thank you P.J. Before I move to New Business, I have to identify that we have an Iron Man in our midst. Milan Tyler completed the Iron Man. A great accomplishment.
Milan Tyler
Thank you.
Mike Metzger
Let’s move to New Business A please. We have the Jamestown Print Company dba MW Graphics. This will be presented by Carol.
Carol Rasmussen
Thank you Mike. Jamestown Print Company dba MW Graphics is an Al Tech Loan. It was presented to the Loan Review Committee on July 14th and they did recommend it to the Board. The owner who will be the one hundred percent owner of MW graphics is Barry Sharp. He owns a printing company right now, since 2006 in Erie PA. Very small. He is by himself. He is well associated with MW Graphics because they do his technical design work for him. MW Graphics is at 909 North Main Street in Jamestown and he is going forward to purchase the building – all the assets of the company, equipment – so we are partnering with Cattaraugus County Bank. His total project cost is $174,500.00. Cattaraugus County Bank will be doing a $75,000.00 ten year loan. He is asking the IDA for $60,000.00 in an Al Tech Loan which includes a little bit of working capital and some of the building. The owners like him. They are very confident with him. He has a great relationship with them so they are in for $20.000.00 for a five year loan. He is putting in a great amount of equity in of $19,500.00. The two owners are sisters and work in the office right now. He will be keeping them on. These two will still be separate entities. MW Graphics will not leave Chautauqua County. Obviously, he is buying the building and all the assets. He plans on bringing on one person at a later date to help with the design work. MW Graphics has a great reputation. They don’t really go out and market very much so there is a plan in here for marketing also. We would be second position behind Cattaraugus County Bank on the real-estate and on Machinery and equipment, furniture and fixtures, all assets of the company, receivables and any future equipment. Barry Sharp has also agreed to give us personal guarantee and his life insurance assignment. So, that will be the collateral. It looks like a great loan and fits well together. The company MW Graphics has long standing – during the loan review committee meeting he went over the long standing customers and they are both profitable. The cash flow looks good. He was very conservative. So, I know you have seen the packet. Do you have any questions?
Mike Metzger
As part of the loan committee, it’s exciting that not only is he coming to Chautauqua County from Erie but he’s maintaining the presence within Chautauqua County and keeping the current owners of the business. That was very nice to see.
Carol Rasmussen
There is an apartment upstairs too that he plans to renovate for some extra income. It all looks good. Can I answer any questions?
Mike Metzger
Any questions for Carol? Milan, would you like to reference the resolution that we are going to be moving?
Milan Tyler
Resolution 07-26-22-01 Authorizing AL Tech Revolving Loan as Carol has described it. Pretty straight forward.
Mike Metzger
Gary could you please move New Business A1.
Gary Henry
Resolution 07-26-22-01 Authorizing AL Tech Revolving Loan for Jamestown Print Company dba MW Graphics.
Mike Metzger
Thank you. I have a motion by Gary. Do I have a second?
Steven Thorpe
Second.
Mike Metzger
Seconded by Steven. Motioned has been made and seconded. Any further discussion? Hearing none, roll call vote please.
Board
Aye – Unanimous.
Mike Metzger
Let the record show there are six votes in the affirmative. Motion carried unanimously. Great job Carol. Great project. Let’s move to New Business B. It’s 3811 Holdings LLC dba Ghostfish Brewing Company East presented by Kristine please.
Kristine Morabito
Yes, thank you Mr. Chairman. We do have guests here today with 3811 Holdings who I will introduce in just a moment. The resolution before you today is for two AL Tech Loans. The first being a $65,902.00 AL Tech RLF loan for machinery and equipment and the second $100,000.00 for working capital. So together, a total of $165,902.00. The resolution being presented is for a seven year term at 4%intrest with principal and interest payments made monthly for machinery and equipment and five year term at 4% interest with principle and interest payments monthly for the working capital. The collateral that’s being proposed is a coequal second position lean shared by the two AL Tech loans behind the bank on all business assets. Life insurance in the amount of the loan on Richard Smith, Matt Swank and Adam Gurga and unlimited personal guarantees provided by Richard Smith, Matt Swank and Adam Gurga. This is for a new project that will be located at the Grape Discovery Center in Westfield. That is at 8305 US 20 in the Town of Westfield. It’s for a 100% dedicated gluten free craft brewery that would be owned by the applicant. I would like to introduce now, Richard Smith, Matt Swank and Adam Gurga all of 3811 Holdings, LLC dba Ghostfish Brewing Company East and also Brian Thiel is the Founder and General Manager of Ghostfish Brewing Company of Seattle. We did receive a full presentation at the Loan Committee Meeting. You received the application, the business plan and the minutes of the loan committee meeting in your package and they are just here today to provide a brief presentation to you about the project.
Richard Smith
Kristine, Thank you. Board Members, thank you for allowing us to be part of this meeting. Should I show something on the screen or just discuss the package that we presented previously?
Kristine Morabito
Mr. Chairman what would you prefer?
Mike Metzger
That’s up to you. You had a great presentation that you presented to the Loan Committee. You may just want to take from that and while you’re bringing that up you have to tell people how you got the name Ghostfish.
Richard Smith
Yes. Thank you. So basically Ghostfish Brewing Company from Seattle Washington has been in business for seven years and we are the largest dedicated gluten free brewery in the United States. We are currently sold in 17 states and four Canadian provinces. Our second largest market is Massachusetts. The objective of 3811 Holdings dba Ghostfish Brewing Company East is basically to break the United States of the North American continent geographically in half and for the Seattle Brewery to support the Western side of the Mississippi River. The brewery in Westfield NY to support the Eastern side of the Mississippi River. Discussed background behind the name Ghostfish Brewing. Discussed that their beer compared to other beers taste the same. They are not extracting gluten from the beer. This is not gluten reduced beer. They are using unique grains that do not contain gluten to create the beer. Presented short slideshow presentation. Slides presented – Award –Winning, Boundary- Pushing Craft Beer – 100% Gluten Free, – 100% gluten free which means there are no potentials for cross contamination, Why Chautauqua County? – Expansion to Westfield, NY collectively presents numerous opportunities – favorable production costs, qualified and eager labor resources, regional transport access, compatible water quality, raw materials sources, and a life-long local owner – we expect that these factors will result an ideal location for us to expand production capacity to satisfy demands of existing Eastern US markets and enable expansion to additional markets. Ghostfish Brewing Company has been oversold for the last 18-24 months in some markets.
Mike Metzger
Thank you. We greatly appreciate that Matt is here and that you chose our County. Questions for Ghostfish? Please show some of your cans as they are quite elaborate in design. They really pop off the shelves.
Gary Henry
Do they have plenty of infrastructure for the waste? Didn’t we run into something with Southern Tier?
Mike Metzger
That’s a good question. That is a question we asked at the Loan Committee Meeting and they have a great answer. Please explain how you will dispose of the waste.
Richard Smith
The GDC is not a septic system. One thing that we’ve have done with the back part of the GDC is that we have already replaced the concrete floors. Brewing, cleanliness, water flow, floor slope are all very critical. We put in new drains, and with those drains we put in sumps so we can pump the water to holding tanks. We will have the same process available to us if we have to evacuate any of the brewing vessels or fermenting vessels during the process. We are similar to Five & 20 down the street. Basically we are putting in systems to allow us to put all of the waste and cleaning water or potential product that we have to – if we get to that point – have to throw away essentially – putting it into a holding tank and then use the same service that the Five & 20 uses for their waste disposal of their water. We are going to basically pump the water out and put it into a tank and remove it from the premises that way.
Mike Metzger
Thank you. Any other questions for Ghostfish?
Mark Geise
Mr. Chairman, I also wanted to mention that the Grape Discovery Center has had space there that has been unutilized for quite some time. This operation will help make the Grape Discovery Center more sustainable as well. So, it’s not only a benefit to the community, but it’s a befit to the Grape Discovery Center and all that means to us as well. I just wanted to mention that because I think it’s important.
Mike Metzger
Thank you Mark. Very important.
Richard Smith
I would like to add onto that Mark. In the craft beer space the consumers like to get as close to the product as possible and you sort of asked in the beginning – why the name and where did it come from? They like to know the story. I think you’re exactly right. I know there is a wine and beer trail along Route 20 and I talked to you obviously at length with Phil the Director of the Grape Discovery Center and Matt knows him very well being that he is local. I agree with you completely. It is not our goal to put in a tap room at this location, however, we do see offering tours because you know the consumer want to see where the beer is made, but then the other thing is that we have three New York State Liquor Licenses that we are in the final stages of and the GDC has their liquor license. So they can and we have already talked to them about this, it was in our initial discussion. They can sample our beers to the public as visitors are coming into the GDC. I think they already expected this and saw this vision as you’re recognizing that this will help drive traffic to their location as we’re cohabitating in the same facility.
Mike Metzger
Excellent. Very good points. Rhonda would you please move New Business B2.
Rhonda Johnson
Resolution 07-26-22-02 Authorizing Al Tech Revolving Loan for 3811 Holdings, LLC dba Ghostfish Brewing Company East
Mike Metzger
Thank you. We have a motion. Do we have a second?
Gary Henry
Second.
Mike Metzger
Motion made by Rhonda and seconded by Gary. Any further discussion? Hearing none, roll call vote please.
Board
Aye – Unanimous.
Mike Metzger
Let the record show that there are six votes in the affirmative. Motion carried unanimously. We wish you the best and can’t wait to taste the Ghostfish beer.
Richard Smith & Matt Swank
Thank you very much.
Mike Metzger
Thank you very much. Kristine, great job.
Richard Smith
Kristine, you will follow-up with us this afternoon or tomorrow on the next steps correct?
Kristine Morabito
Yes. I will be calling Matt after the meeting.
Richard Smith
We very much appreciate everybody’s time, allowing us to present and we’re really excited for this whole opportunity and we expect a big splash with the media we get to the point of brewing beer and we hope that everybody gets a taste a little bit of what sent from Seattle. Thank you again for your time. We are really excited to be a part of this County in a different way than we currently have been.
Mike Metzger
Thank you. Welcome to Chautauqua County. Let’s move to New Business C. We have Seaboard Solar and this is going to be Rosie and Milan please.
Rosie Strandburg
Thank you Mr. Chairman. So before you today we have Seaboard Solar LLC for Barnes Road East and Barnes Road West. We previously received a Tax Lease PILOT application for a 9.35 Megawatt AC solar farm split between Barnes Road East and West with 4.375 at East and 4.95 at West. Total project is over 59.5 acres in the Town of Stockton off Barnes Road, We previously spoke to the Town Supervisor, Dave Wilson who expressed that the Town is in favor and they did approve a special use permit and did agree for us to move forward with processing a tax lease PILOT application. We also reviewed their SEQRA documents and we were able to determine that it’s a Type I action with a negative declaration. At our May 24th Board meeting the Board approved a due diligence resolutions and agreements and that would be for a 25 year abatement on real property tax, sales tax abatement and mortgage recording tax abatements. Total project cost is $16 million three hundred and ninety thousand one hundred and nine dollars. We had a public hearing on July 6, 2022 and they did provide transcripts to everyone here. No public comments in person or in writing was made. We do have Matt Longman on the line and Matt can you briefly touch on your decommissioning plan and any visual mitigation for the site?
Matt Longman
As I understand it the decommissioning plan is finalized with the town. There is very little site mitigation on the southern portion of what is the two projects. There’s about 100 feet, as I understand it, where the project would be visible from the road, and their the town has asked us to put in I think three layers of perennial trees that would block that sightline and that’s the extent of any visual mitigation as I understand it. The decommissioning plan which as I understand it is finalized – was taken wholesale from the engineering firm that the town had used to review the project and what they expected the costs of decommissioning would be and then we use that wholesale.
Rosie Strandburg
Thank you Matt. Are there any questions for Matt or me?
Mike Metzger
No. Fortunately, we have had very successful projects very similar to this and we thank you for coming to our County. Any questions from the Board? If not I will ask Milan to move to the deviation hearing.
Milan Tyler
Sure. Happy too. Let’s do the deviation hearing for both projects. The deviation notice has been sent to each of the affected tax jurisdictions. In sum it provides for $3500.00 per megawatt which is what we’ve done for the last few solar projects that we’ve done – 25 year PILOT – 2% annual increases. Is there anyone from any of the affected tax jurisdictions who would like to be heard on this public topic? Hearing none, I would like to close the deviation hearing.
Mike Metzger
Thank you Milan. Much appreciated. If there aren’t any other questions we will move to the resolution.
Milan Tyler
There are actually four resolutions. As Rosie mentioned, the Town adopted a lead agency status for SEQRA purpose they named the Agency, therefore we are bound by the SEQRA determination of the Town which found there is no significant adverse effect. So there are a total of four resolutions, a deviation resolution for each one, because we are going to deviate from UTEP in the way that I just described for the hearing. The final approving resolution describes the project, it sets forth the amount of financial assistance that is estimated and I think we are ready to close as soon as the Board approves. So those are the four resolutions. You can do them all together or one by one if you choose Mr. Chairman.
Mike Metzger
Let’s do them together. Brad would you please read the four resolutions which are New Business C3 and New Business D3.
Brad Walters
Resolution 7-26-22-03 Deviation Approval Resolution – Barnes Road East & Resolution 7-26-22-04 Final Approving Resolution – Barnes Road East & Resolution 7-26-22-05 Deviation Approval Resolution – Barnes Road West & Resolution 7-26-06 Final Approving Resolution – Barnes Road West
Mike Metzger
Thank you Brad. Do we have a second?
Rhonda Johnson
Second.
Mike Metzger
Seconded by Rhonda. We have a motion and a second. Any further discussion? Hearing none, I will have a roll call vote on all four resolutions.
Board
Aye – Unanimous.
Mike Metzger
Let the record show that there are six votes in the affirmative. Motion carried unanimously. Great project. Thank you Rosie, great job on it and thank you Matt.
Rosie Strandburg
Matt, your welcome to stay on but if you need to exit that’s ok too.
Matt Longman
Thank you. I’ll leave you but I just wanted to say thanks to the Board for your attention to this and also thank your Rosie to you in particular for helping me through the application process.
Rosie Strandburg
You’re welcome.
Mike Metzger
Thank you and good luck to you. Let’s move to New Business E.
Rosie Strandburg
Today, we have Solar Liberty Fredonia which we previously received a tax lease PILOT application last month for a 4.675 megawatt AC Solar Farm. Over 13.4 acres leased from Double A Vineyards & Holding. We spoke with the Town Supervisor, Dan Pacos who expressed that the Town is in favor of the project. They had their public hearing in November of 2021 and granted a special use permit. The Town also did complete SEQRA but did not list us as an involved agency so we did have to complete our own, but that was a Type I action with a negative declaration on their half. At our June board meeting the Board did approve a due diligence resolution agreement for a PILOT tax lease application – a 25 year abatement on real property tax, sales tax abatement and mortgage recording tax abatement. We did have a public hearing on July 18- transcript has been provided and there was no written comment or comment made in public. We do have Adam and Nate Rizzo here with us today from Solar Liberty. Adam and Nate could you touch on your decommissioning plan and any visual mitigations for the site?
Nathan Rizzo
Yes. Good Morning Chairman of the Board. From a decommissioning perspective we have received approval on the costs associated with the commissioning process. We have not received a bond yet or submitted a bond as of yet. We are still working through our due diligence, to be able to construct the project. From a visual mitigation perspective we did perform a visual assessment of the site. Based upon our findings the system has limited viewpoints from Route 60 and the adjoining properties, so at this point its limited with vegetative screening but I do believe that the Town of Pomfret has left the ability open to review any screening a year after the system’s been completed and let us know if improvements to the screening need to be made.
Mike Metzger
We would like to thank you Adam and Nate for being a frequent visitor here. We can’t thank you enough for all the great projects you are doing here in Chautauqua County.
Nate Rizzo
It’s our pleasure, thank you.
Mike Metzger
Any questions for Rosie, Nathan or Adam?
Rich Dixon
Adam and Nate, I would just like to talk about panels, delivery time, and construction. What are you seeing in general in the marketplace? Are the panels catching up with demand now in the United States? Where do you see thing headed?
Nathan Rizzo
The solar panels, as I believe I mentioned on the last call with the IDA that there was a pause on the tariff that were put in place. There was a trade investigation going on potential terrorist. That has been paused which has been very important for the solar industry. The solar panels capacity is starting to come back to the United States and allowing for projects to move forward. The prices are starting to come back to where they were before the tariff issue arose. We are starting to receive shipments. We are hoping to break ground on this project still this year. We were fortunate to have solar panels set aside for this project, so we were put in a position where we had to wait for them to come in. The pricing and the capacity is starting to come back which is a positive sign for the industry.
Mike Metzger
Thank you. Good. Excellent. That’s good to hear. Milan please.
Milan Tyler
Deviation hearing – The deviation notices were sent to each of the affected tax jurisdictions on July 8th advising them that we would have this hearing now. Same PILOT as we have just talked about. $3500.00 per megawatt for 25 years 2% annual increases. So are there any members or any representatives from any of the affected tax jurisdictions that would like to be heard at this time? We’ve received on this and the prior one no written comments from the affected tax jurisdictions. I would like to close the hearing.
Mike Metzger
Thank you Milan. Would you like to discuss the resolutions?
Milan Tyler
This one there are three resolutions because as Rosie mentioned, the Town adopted their own SEQRA Resolution, but at the time we had not gotten an application from the applicant so the IDA was not named as involved agency. The Town came to its own independent conclusion that there was not adverse effect on the environment and that’s what our resolution proposes today as well. So there are three resolutions. First the deviation pursuant to the deviation that I just described, and $3500.00 per megawatt, 25 years 2% increase. That is a deviation from your UTEP although it is becoming very common now and sort of standard for your solar projects. SEQRA Resolution – In your packet. In your packet contains a fairly detailed analysis of all of the possible effects and we recommend you come to the same conclusion that the Town did that there is no material adverse effect, and then the final resolution would approve staff and council to go ahead and draft and finalize documents and close, giving the financial systems which Rosie has previously described. So those are the three resolutions for this project.
Mike Metzger
Thank you Milan. I am going to ask Steven for the resolutions.
Steven Thorpe
Resolution 7-26-22-07 Deviation Approval Resolution – SL Fredonia & Resolution 7-26-22-08 SEQRA Resolution – SL Fredonia & Resolution 7-26-22-09 Final Approving Resolution – SL Fredonia
Mike Metzger
Thank you Steven. I have a motion. Do I have a second?
Brad Walters
Seconded by Brad. Any further discussion? Hearing none. Roll call vote please.
Board
Aye – Unanimous.
Mike Metzger
Let the record show that there are six votes in the affirmative. Motion carried unanimously. Thank you Adam, Rosie and Milan. Great job. Wish you all the best. Thanks again to Adam and Nathan for all you do for Chautauqua County.
Adam Rizzo
Thank you everyone for your continued support. We can’t say thank you enough. Rosie, thank you for all your help with our application and documentation.
Rosie Strandburg
Happy to help.
Mike Metzger
Please, New Business F. Lawson Boat & Motor.
Rosie Strandburg
So today we have Lawson Boat & Motor. They are requesting a 15 year Tourism Destination PILOT for sales tax and property tax abatement for a new project that they are working on. Lawson Boat and Motor purchased the old Fountain Bowl and is in the process right now of renovating it for a showroom and boat storage. The project cost is $940,000.00 which encompasses acquisition, construction renovation, FFE and any other fees. They are creating during construction six jobs – first year five FTE’s, second year six FTE’s, and in the third year seven FTE’s. The storage portion of the building will be completed this September and the showroom in April of 2023. We did have a Transaction Committee Meeting earlier this month and we were able to determine that because no major renovations are being made outside other than siding, no SEQRA is required. Does anyone have any questions in regards to this project?
Mike Metzger
It’s a very favorable project presented to the Transaction Committee. Great job. It’s good that they have taken over a property that was let’s say not up to standard, and so we appreciate them renovating existing property and facilities.
Rich Dixon
It was interesting to note Mike, that the siding that they have on the Marina, blue and white, will be the same. It’s going to look pretty spectacular on that corner.
Mike Metzger
Yes. That’s great.
Mark Geise
I just wanted to add. We helped Lawson obviously with the Marina and they’ve just done a great job there and expanded and expanded and we also help them with a parcel next store. There was an old that was falling down sort of gateway on Fluvanna coming into the city – working with the LandBank we were able to get that building down and they own that. They will probably do something with that in the future. Then this is the next step. All the hard work that we’ve done and they’ve done obviously to build that – I think it’s just a great outcome – taking and old bowling alley that has been underutilized for many years and continuing to expand their operation. It’s a great story I think.
Mike Metzger
Yes. Definitely.
Rosie Strandburg
I think it’s worth noting, because the benefits that we’re offering less than one hundred thousand, no public hearing was required.
Mike Metzger
Thank you. Milan.
Milan Tyler
Rosie took most of my talking points. This is a retail establishment. We need to fall into one or more of the exceptions. This is a tourism destination so the final resolution includes that, as well as Rosie mentioned it’s under $100,00.00 so no public hearing is required and lastly as Rosie mentioned, it’s a Type 2 action under SEQRA, so no action needs to be taken but is referenced in your final resolution. So in this case there is just one resolution that approves up to $100,000.00 financial assistance for both real property and sales tax and it’s not even a deviation because this is under your UTEP for tourism destinations. So tis a one stop shopping – one quick resolution.
Mike Metzger
Great. Excellent. Kevin can I ask you to move New Business F1?
Kevin Muldowney
Resolution 07-26-22-10 Final Approving Resolution – Lawson Boat and Motor, LLC
Mike Metzger
Thank you. Do I have a second?
Rhonda Johnson
Second.
Mike Metzger
Motion made by Kevin and seconded by Rhonda. Any further discussion? Roll call vote please.
Board
Aye – Unanimous.
Mike Metzger
Let the record show that there are six votes in the affirmative. Motion carried unanimously. Let’s move to New Business G. This was a great presentation – Maesteg, LLC, dba The Barn at Farrington Hollow – Rosie and Milan please.
Rosie Strandburg
In June, the Transaction Committee approved moving forward with a due diligence agreement for a PILOT Tax Lease Tourism application requesting a fifteen year abatement on real property tax and sales tax. This project – they own three subsidiaries – the Barn at Farrington Hollow, the Cabins at Farrington Hollow, and the Farrington Hollow Farm & Market. The barn which we are reviewing today provides an outdoor venue for weddings and other events. They are currently using a really nice white pop-up tent to host their events but they are in the process right now with constructing a 4,000 square foot barn and a 2,500 square foot pavilion to transition their events to that space so that they can then hold more events in the fall and in the winter. The project itself is located in the Town of Cherry Creek at 7495 Farrington Hollow Road. They completed our short environmental assessment form and we were able to determine that no SEQRA is required. The total project cost is $589,000.00. They are creating five FTE’s in year one, eight in year two and nine in year three. I did have a public hearing on June 7, 2022, no members of the public attended and no written comment was received.
Mike Metzger
Thank you Rosie. Milan.
Milan Tyler
There are actually two resolutions. There is a SEQRA resolution because it’s a 4500 sq. ft. barn, it takes it out of the Type 2 where we need to do nothing to unlist it. So the SEQRA Resolution that you have goes through the environmental impact and staff has concluded and recommend it to the Board that you agree that there is no adverse economic impact from this. There is no deviation because as Rosie said this is under your Tourism UTEP, the same one we just did. Then there is a Final Approving Resolution. There are two resolutions – the SEQRA Resolution, it’s an unlisted action and the Final Approving Resolution approving the financial assistance set forth in the resolution.
Mike Metzger
Thank you. Any questions for Rosie or Milan? This is a hands on family. They are working all the properties and it’s great to see it.
Rosie Strandburg
They even have some of their guests who like to participate in feeding the goats and chickens and helping on the farm too.
Mike Metzger
Gary I will ask you to move both resolutions for G1 please.
Gary Henry
Resolution 7-26-22-11 SEQRA Resolution – Maesteg, LLC, dba The Barn at Farrington Hollow, LLC & Resolution 7-26-22-12 Final Approving Resolution – Maesteg, LLC, dba The Barn at Farrington Hollow, LLC
Mike Metzger
Thank you. We have a motion. Do I have a second?
Steven Thorpe
Second.
Mike Metzger
Thank you. We have a motion made by Gary and seconded by Steven. Any further discussion? Hearing none, roll call vote please.
Board
Aye – Unanimous.
Mike Metzger
Let the record show that there are six votes in the affirmative. Motion carried unanimously. Also, I would like to state for the record here. We go through things very quickly here, but everything brought before the Board has already done through a Loan Committee, a Transaction Committee. The week before we have a call in where people can talk about the resolutions or ask questions. Thanks to Jeanette, Kristine, Carol we receive all the documents well in advance for us to review them. So all of these projects have been gone through many times before they get to this board meeting. Mark do you have an Executive Director’s Report?
Mark Geise
Thank you Mr. Chairman. I just wanted to talk about a few things really quick. I’m sure you all heard the news about Wells Ice-cream – them scaling back operations in 2023. You know we are on it. We don’t know exactly what that means at his point. We are in the process of setting up a meeting with the Well’s management, which would include not only the IDA but the County Executive, Empire State Development representatives, the mayor etc. If you didn’t see the Press Release, they basically said that, and I quote, we’re doing a comprehensive review of our manufacturing footprint and our need to support our overall business strategy. As a result, we are scaling back operations in Dunkirk in 2023 to five production lines, but are going to continue current operations in 2022. They continue to say that they are working through communications with their employees about the specifics of what that means. I had asked the question – what is their reduction in lines, in other words, I don’t’ know how many lines they currently have and they are scaling, but we know they are scaling back to five. So that would give us a better idea of what’s going on and then how many employees will be affected. We don’t know the answer to that either, but I’m hoping that in our meeting with them, we can get more specifics. They are sort of keeping it under their hat right now.
Brad Walters
Mark, I understand that they are running twenty lines now. That’s what I’ve been told.
Mark Geise
Rich, do you know?
Rich Dixon
I do not. That sounds about right but I’m not sure. I know the reduction was going to be substantial. A little positive news early on when I was contacted by their attorney, before it all hit the paper, they do plan to come back slowly but surely and make sure they are doing it right and that the production lines are right when they do come back. I think it’s a good story, they just hit a little bump in the road here and hopefully they will get over it.
Mark Geise
Yes. The bad news first. The good news is that it was mentioned earlier, after working on this for four years we finally have a local developer for the White Inn and that’s Steve St. George. If you don’t know him he doesn’t skimp when he does projects. He does everything right and he’s got a golden touch and he’s planning on doing a full restoration of the White Inn. I have to call out Nate Aldrich. He worked closely with Randy Turner to secure a $520,000 Empire State Development Grant and that really put it over the top, at that point once we heard it was awarded Steve pulled the trigger on moving forward. Talking about a full restoration, bringing it back to what it was once and hasn’t been for a long time. At the same time we are going for more funding through the Restore New York Program which is a new program that’s been on hiatus for quite a number of years. We were in Cooperstown a couple of months ago, and we really pushed it with the administrator of that program and so he is well aware that we are coming after money through the Restore New York Program for that project. Also, we hooded them up with National Grid and National Fuel which will have some attractive incentives. OCR – we’re working on a grant loan for them and potentially a CCIDA loan but we’ll see. We expect it to be a spectacular project when completed. So that’s really good news. Thank you to everyone that worked on that. Lastly, I guess you know we work with the real property folks and the County to pull some properties from the auction that are in foreclosure. Those include – there is a parcel behind Maplevale Farms that we got pulled which will help them. There is a parcel in Silver Creek behind the Petri Building, which was very attractive to the new operation there – the Christmas Store – so we got that pulled. There is a parcel that down in South Ripley that we pulled from the auction for a Connect Gen project. There were five or six parcels in Celeron that is on their Main Street that we were able to pull for them to do a development project there. There was a parcel behind the National Comedy Center that I think fell through the cracks but we were able to get that pulled through which in part will be part of the Chadakoin River Redevelopment Project down there behind the National Comedy Center. Those are just some of the kind of high level things that are going on, and there is a lot more but in a nutshell those are the things I wanted to talk about today. Are there any questions or comments?
Mike Metzger
No. Thank you Mark. We appreciate you taking time out of your well-deserved vacation and wish you well. Enjoy your time. Thank you for coming in. Much appreciated.
Mark Geise
Thank you everyone.
Mike Metzger
Now, I would like to move to the Treasurer’s Report. Rich Dixon please.
Rich Dixon
Reviewed and discussed Treasurer’s Report. I would like an approval to amend the budget as presented.
Mike Metzger
Ok. I am going to take two motions. One is to approve the budget as presented. So, if I could ask for a motion.
Steven Thorpe
I’ll make the motion.
Mike Metzger
Thank you Steven. Do I have a second?
Gary Henry
Second.
Mike Metzger
Seconded by Gary. Any further discussion? All those in favor signify by Aye.
Board
Aye – Unanimous.
Mike Metzger
Also, I would like a motion for the acceptance of the Treasurer’s Report.
Rhonda Johnson
Motion
Mike Metzger
Rhonda, thank you for the motion. Do I have a second?
Brad Walters
Second.
Mike Metzger
All those in favor.
Board
Aye – Unanimous.
Mike Metzger
Opposed or abstained. Motion carried. Thank you Rich. Great report, job well done. Excellent.
I’d like to ask for a vote of the IDA to go into Executive Session pursuant to Section 105 of the Public Offices Law to discuss
- The financial, credit and/or employment history of a particular person or corporation, and
- The proposed acquisition or sale of real property because publicity would substantially affect the value thereof. In particular I would like the IDA staff to discuss the various loan portfolios and the specific financial circumstances of a number of borrowers, and for staff to update the Board regarding a possible sale of an IDA owned piece of real estate.
Do I have a motion?
Steven Thorpe
Motion
Mike Metzger
Thank you Steven. Do I have a second?
Brad Walters
Second.
Mike Metzger
All those in favor.
Board
Aye – Unanimous.
Mike Metzger
Opposed or abstained? Motion carried unanimously.
Executive Session
Start Time: 11:011 a.m.
Executive Session
End Time: 11:19 a.m.
Mike Metzger
Let the record show that no official actions were taken during Executive Session. Do we have any Old Business? Hearing none, I want to thank you all – the staff and of course our volunteer IDA Board for all your hard work and effort on these excellent projects that are essential to the economic development of Chautauqua County. Our next CCIDA Board Meeting will be August 23, 2022 at 10:00 a.m. Know that I want to thank you all for all your hard work and effort and as you know quorum is always essential for these meetings.
The meeting is adjourned. This meeting is adjourned at 11:20 a.m.
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(Assistant) Secretary (Vice) Chairman
