Troy Industrial Development Authority

City of Troy Industrial Development Authority October 11, 2012 10:00AM Meeting Minutes Present: Wallace Altes, Dean Bodnar, Lou Anthony, Paul Carroll, Tina Urzan, Steve Bouchey and Robert Doherty Absent: Mary O’Neill and Lisa Kyer Also in attendance: Bill Dunne, Denee Zeigler, Justin Miller, Esq., Monica Kurzejeski, Jeff Buell, Joe Uccellini, Sharon Martin, Asher Toporovsky, Red Griffen and Ryan Silva. Public Hearing I. City Station East, LLC Public Hearing (See attached Public Hearing Agenda) After the public hearing a general discussion by the Board took place about the project. II. Resolution #1: Project Authorizing Resolution for City Station East, LLC Steve Bouchey made the motion to approve Hon. Dean Bodnar seconded the motion. 7 Ayes 2 Absent 0 Nays, motion carried. New Business 1. Resolution #2: Initial Project Resolution for Financial Assistance to O’Neill Owners, LLC Asher Toporovsky and Red Griffen spoke about the project mentioning that there is a PILOT still in effect from 1977. O’Neill Owners, LLC wants to upgrade and renovate the building and continue its use for senior housing and retail space on the first floor. Asher gave some background on other properties they manage. Steve Bouchey asked about the renovations that would take place. 1  Asher stated that the renovations will be from the top down, including management, for a total of 114 units. He has done other similar projects in New York and New Jersey. A general discussion took place between the Board members and the presenters from O’Neill Owners LLC about improving tenant relations. Asher also added that he likes to use local contractors and green technology. Steve Bouchey made the motion to approve the resolution. Hon. Robert Doherty seconded the motion. 7 Ayes 2 Absent 0 Nays, motion carried. 2. The review of the Boards financial statements will be discussed at the next meeting. III. Old Business 1. Wallace appointed board members to the committees. The Audit and Finance committee will be made up of Steve Bouchey, Mary O’Neill, Tina Urzan and Hon. Robert Doherty. The Governance committee will be made up of Wallace Altes, Lou Anthony, Lisa Kyer, Paul Carroll and Dean Bodnar. 2. Approval of the minutes from September 10, 2012 meeting. Hon. Robert Doherty made the motion to approve the minutes. Dean Bodnar seconded the motion. III. Adjournment Tina Urzan made the motion to adjourn. Steve Bouchey seconded the motion to adjourn. 2  PUBLIC HEARING AGENDA TROY INDUSTRIAL DEVELOPMENT AUTHORITY CITYSTATION EAST, LLC PROJECT OCTOBER 11, 2012, AT 10:00 A.M. CITY HALL, 433 RIVER STREET, TROY, NEW YORK 12180 Report of the public hearing of the Troy Industrial Development Authority (the “Authority”) regarding the CityStation East, LLC Project held on Thursday October 11, 2012, 10:00 a.m., at the Troy City Hall, located at 433 River Street, Troy, New York 12180. I. ATTENDANCE: Wallace Altes, Dean Bodnar, Lou Anthony, Paul Carroll, Tina Urzan, Steve Bouchey, Robert Doherty, Bill Dunne, Monica Kurzejeski, Justin Miller, Esq., Jeff Buell, Joe Uccellini, Sharon Martin, Asher Toporovsky, Red Griffen, Ryan Silva and Denee Zeigler II. CALL TO ORDER: (Time: 10:00 a.m.). Wallace Altes opened the hearing and Justin Miller read the following into the hearing record: This public hearing is being conducted pursuant to Title 11 of Article 8 of the Public Authorities Law of the State of New York, as amended, and Chapter 759 of the Laws of 1967 of the State of New York, as amended (collectively, the “Act”). A Notice of Public Hearing describing the Project was published in Troy Record on September 20, 2012, a copy of which is attached hereto and is an official part of this transcript. A copy of the Application submitted by CityStation East, LLC to the Authority, along with a cost-benefit analysis, is available for review and inspection by the general public in attendance at this hearing. III. PROJECT SUMMARY CITYSTATION EAST, LLC (the “Company”), has requested the Authority’s assistance with a certain project (the “Project”) consisting of (i) the acquisition and retention by the Authority of fee title to certain parcels of real property located in the vicinity of 1522 Sixth Avenue, Troy, New York 12180 (the “Land”, being comprised of approximately 2.03 acres of real property and more particularly identified as TMID Nos 101.62-5-1, 101.62-5-2 and 101.61- 8-3.2) and the existing site and infrastructure improvements located thereon (the “Existing Improvements”), (ii) the construction and equipping upon the Land and around the Existing Improvements of a five (5) story, mixed-use commercial and residential facility including (a) approximately 13,000 square feet of commercial and retail space, (b) forty-eight (48) units of rental residential housing, and (c) certain vehicle parking improvements and structures to accommodate approximately 250 parking spaces (collectively, the “Improvements”), such Improvements to be known as “City Station East”, and (iii) the acquisition and installation by the Company in and around the Existing Improvements and Improvements of certain items of equipment and other tangible personal property necessary and incidental in connection with the Company’s development of the Project in and around the Land and Existing Improvements (the “Equipment”, and collectively with the Land, the Existing Improvements and the Improvements, the “Facility”).  It is contemplated that the Authority will acquire title to, or a leasehold interest in, the Facility and lease the Facility back to the Company. The Company will operate the Facility during the term of the lease. At the end of the lease term, the Company will purchase the Facility from the Authority, or if the Authority holds a leasehold interest, the leasehold interest will be terminated. The Authority contemplates that it will provide financial assistance (the “Financial Assistance”) to the Company in the form of (a) a mortgage recording tax exemption relating to one or more financings secured in furtherance of the Project; (b) a sales and use tax exemption for purchases and rentals related to the Project; and (c) a partial real property tax abatement structured through a PILOT Agreement. The foregoing Financial Assistance and the Authority’s involvement in the Project are being considered to promote the economic welfare and prosperity of residents of the City of Troy, New York. The Authority is considering a deviation from its Uniform Tax Exemption Policy (“UTEP”) with respect to the contemplated payment-in-lieu-of-tax-agreement (the “PILOT Agreement”) to be entered into between the Authority and the Company. Specifically, the Authority is contemplating a deviation from the UTEP to provide: (i) a PILOT term of up to twenty (20) years; (ii) a fixed PILOT payment schedule requiring initial annual fixed-dollar amount payments for each of the forty-eight (48) residential units to be incorporated into the Project, with such annual payments escalating annually during the term of the PILOT Agreement; and (iii) a graduated abatement schedule relating to the Added Value attributable to the construction of the approximately 13,000 square feet of commercial space and parking garage improvements to be incorporated within the Project. The Land and Existing Improvements are currently exempt from real property and special district taxes by virtue of their ownership by the Authority (as part of CityStation West), the City and/or DOT. Upon due consideration of the Company’s application, the various positive economic and social impacts of the Project, and the Project’s general satisfaction of several considerations set forth within the UTEP, including, but not limited to (i) the impact of the proposed project on existing and proposed businesses and economic development projects in the City; (ii) the substantial capital investment associated with the Project derived from Company sources; and (iii) the extent to which the proposed project will provide additional sources of revenue for municipalities or school districts, the Authority desires to approve the proposed terms of the PILOT Agreement. IV. AGENCY COST-BENEFIT ANALYSIS: The Company Application for Financial Assistance indicates a total project cost of approximately $18,000,000.00 with the addition of 39 new full-time jobs and 27 part-time jobs within 1 year of project completion and 44 full-time jobs and 37 part-time jobs within 2 years of project completion. A significant number of construction jobs are contemplated, and the Company contemplates investing over $12,820,000.00 in improvements to the Facility. Based upon additional information provided by the Company, the Agency estimates the following amounts of financial assistance to be provided to the Company: Mortgage Recording Tax Exemption ($12,820,000 Mortgage Loan) x 1.0% = $128,200.00  Sales and Use Tax Exemptions (Estimated $6,000,000 in taxable materials) x 7.75% = $465,000.00 PILOT Payments (estimated) $804,745 (Housing) $335,611 (est. Commercial at $332k Base) $822,528 (FMV for Added Value $2.4M) = $1,962,884.00 Estimated Full Taxes (est. $10M FMV) = $8,764,000.00 Estimated PILOT Savings = $6,801,116.00 Total estimated Financial Assistance = $7,394,316.00 IV. SEQRA: The City’s Planning Board previously assumed lead agency status under Article 8 of the Environmental Conservation Law and Regulations adopted pursuant thereto by the Department of Environmental Conservation of the State of New York (collectively, “SEQRA”) for purposes of review of the Project and adopted a Negative Declaration on September 13, 2012. It is contemplated that the Authority will ratify the findings adopted by the Planning Board prior to or commensurate with the approval of the undertaking of the Project. V. COMMENTS AND SUBMISSIONS FROM AFFECTED TAX JURISDICTIONS [The Authority has received and reviewed the following correspondence from the affected taxing jurisdictions:] No correspondence received. The Authority now invites any representatives of the affected taxing jurisdictions to address this public hearing and meeting of the Authority with regard to the Project and the proposed deviation. No representatives from the affected taxing jurisdictions commented. VI. PUBLIC COMMENTS No public comments. VII. ADJOURNMENT As there were no comments, the public hearing was closed at 10:20 a.m.