Town of Massena Business Development Corporation

Business Development Corporation for a Greater Massena Board Meeting Minutes September 17, 2020 Draft! Board Members: Dan Pease, Jeff Dobbins, Mike Besaw, and Dave LaClair Excused: Ben Murtaugh , Melanie Cunningham, Staff: Jim Murphy, Executive Director Public: Sam Carbone, Bill Fiacco Call to Order VP Dan Pease called the meeting to order at 5:11 p.m. Approval of Minutes of the Feb. 20,2020 Meeting A motion to approve the minutes of the Feb. 20, 2020 Board of Directors meeting was tabled because there was not a quorum of those present at that meeting attending this meeting. Financial Reports Treasurer Jeff Dobbins presented draft (pending audit results) balance sheet, profit and loss statement and financial reports to the board. Dan P. raised a question regarding how the BDC’s grant/loan to the Massena Arts and Theater Group was expressed in the financial statements, leading to a discussion in general regarding the Massena Theater project, which is winding down. The last item currently up for bid was the final sealing/weatherization of the exterior of the building. Jim explained to the Board the process by which SeaComm’s match account was being utilized to facilitate the grant drawdowns. Jim noted that while he has encouraged MATA to look at next steps, the BDC’s obligation as Local Plan Administrator ends with the completion of this grant. Jim Noted that he still needs to close out the BDC’s 2019 Core of the Community grant with the RVRDA, to receive final reimbursement from the St. Lawrence County IDA for the last two projects (Dr. Winter/M. Nicole), the paperwork for which is still with the auditor. Executive Director’s Report MATA Update – Now that the Theater project was winding down, Jim asked board members about whether to begin invoicing MATA for the $25,000 loan provided by the BDC to cover the match contribution for the project. In all, the BDC provided a $20,000 grant, a $25,000 loan and donated its $15,000 admin fee for administering the grant to help move the project forward. MATA President Shawn Gray had appeared at the August BDC Board meeting to request a six- month extension to the expired moratorium on making loan payments, citing the inability of MATA to hold fundraising events due to the pandemic. That request was tabled at the time due to a lack of a quorum of board members for that meeting. BDC Meeting Minutes September 17, 2020 Pg. 1 After some discussion, Dan moved to table MATA’s extension request and to begin invoicing for loan payments. The motion was seconded by Dave and passed unanimously. Audit Update – Jim reported that he has reached out to the auditors, but they had not responded. Jim said that the last time he has heard from the auditors was in regards to a FOIL request for documents related to the BDC’s rail spur project, back in July. Town Comprehensive Plan – Jim continues to work with Town Board members Sue Bellor and Rob Elsner on the town’s Comprehensive Plan. These efforts have been hampered by Covid-19 restrictions, making it difficult to conduct public outreach. Microenterprise Grant – Jim reported that the BDC has received 16 valid applications for the Town’s Microenterprise Grant Program. Requests totaled nearly $400,000 and with about $185,000 to give out, the Grant Review Committee, named by Town Supervisor Steve O’Shaughnessy, will have some tough choices to make, Jim noted. Jim is currently reviewing each of the applications for eligibility and has been working with applicants on their grant requests. All of the applicants will be vetted by a Grant Review Committee, approved by Town Supervisor Steve O’Shaughnessy. The committee will review and rank each of the applications and make recommendations for funding. Mike Besaw volunteered to serve on the Grant Review Committee, replacing Ron Bacon, who had resigned from the BDC Board in August. Jim noted that we had received a great mix of new and existing businesses. Jim added that the grant also provides funds for administration, program delivery and training that could represent an additional revenue stream for the BDC at a time when the organization is facing funding cuts from the town and village. 2021 BDC Budget (attached) – Jim reviewed the BDC’s 2021 Draft Budget, noting that the organization was facing a significant reduction in town and village support in the next year. The Town will provide $75,000 in funding, down from $100,000 from this past year. In June, the Village greatly reduced it funding to the BDC, from $35,000 to $5,000. The 2021 budget reflects those reductions and has been cut to basically personnel and required insurance/operational expenses. The draft budget also depends on generating more outside revenues through grant administration ($25,000 to $30,000) and other services as well as dipping into the BDC’s reserves as necessary. Dan noted that “in the new reality” the BDC will have to chase some fee income, because we’re going to be short and we can’t be short every year, because you’ve got to find a way to be self- sustaining. Going for grants and getting paid to administer them, we can’t ignore that as a potential income source. My only reluctance there is that historically we have always tried to avoid being used as a grant-writing entity because that takes a lot of time and our focus had been soliciting grants for our own projects. Right now that seems to be on hold a bit, but eventually I’d like to get back into economic development, Dan said. I don’t believe that the BDC has run its course, but we have to be careful about the direction we head in. Sam Carbone noted that it seemed to him that much of the larger potential economic development was happening in the town. Maybe we’re seeing some of the larger industrial development possibilities and I know we need a conduit for that. BDC Meeting Minutes September 17, 2020 Pg. 2 Later in the meeting, the BDC’s 2021 budget, which has been submitted and approved by the Town Board, was brought up again. Jim cautioned that the budget depended on fees that may or not come in and reflected the fact that the BDC was absorbing the loss in municipal funding. Dan noted that he was willing to do that for a period of time “but we need to begin addressing what happens in the future.” Board Replacements and Policies – The Board also discussed how to replace longtime board member and president Ron Bacon, as well as the process for selecting board members and whether the institute an attendance policy, given the difficulty in getting a meeting quorum for much of 2020. Currently the BDC Board needs one board member (town appointee). We need to re-energize the board, Dan said. Other Board Action Items None New Business/Other Business None Consultant and Liaison Reports None Questions from the Public/Press Guest Bill Fiacco provided an update on his current projects, including the Gristmill Brewery and Creamery projects on Water Street. He said his apartments should be ready in about 30 days. He is hoping to open the brewpub sometime in the spring/summer. Executive Session None Adjournment Dan made a motion to adjourn the meeting at 6:25 p.m., that motion was seconded by Dave and passed with all members voting ‘Aye”. Next Regular Meeting Date: January 21, 2021 BDC Meeting Minutes September 17, 2020 Pg. 3