Troy Industrial Development Authority

Chairman Troy Kevin O’Bryan Industrial Development Authority Vice-Chair Steve Bouchey BOARD OF DIRECTORS MEETING Board Members January 15, 2016 10:00 a.m. Hon. Dean Bodnar Planning Department Conference Mr. Paul Carroll Room Hon. Robert Doherty City Hall Louis Anthony Tina Urzan Kathy Ceitek AGENDA Susan Farrell I. Public Hearing – Redburn Development Companies, LLC – School 1 Redevelopment Project II. Approval of Minutes from the December 11, 2015 board meeting. III. Annual Board Member Evaluations IV. Start Up NY ‐ HVCC V. Financials VI. Old Business VII. Adjournment City Hall – 433 River Street, Suite 5001, Troy, New York 12180 Phone: 518.279.7166  PUBLIC HEARING AGENDA TROY INDUSTRIAL DEVELOPMENT AUTHORITY Redburn Development Companies, LLC – School 1 Redevelopment Project JANUARY 15 AT 10:00 A.M. CITY HALL, 433 RIVER STREET, 5TH FLOOR, TROY, NEW YORK 12180 Report of the public hearing of the Troy Industrial Development Authority (the “Authority”) regarding the Redburn Development Companies, LLC Project held on Friday November 20, 2015 at 10:00 a.m., at the Troy City Hall, located at 433 River Street, 5th Floor, Troy, New York 12180. I. ATTENDANCE William Dunne, Authority CEO Justin S. Miller, Esq., Authority Transaction Counsel [list other TIDA representatives in attendance] [________________, Company Representative] Members of the General Public II. CALL TO ORDER: (Time: 10:00 a.m.). __________________opened the hearing and _________________ 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, a copy of which is attached hereto and is an official part of this transcript. A copy of the Application submitted by Redburn Development Companies, 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 REDBURN DEVELOPMENT COMPANIES, LLC, for itself and/or on behalf of an entity to be formed (collectively, the “Company”), has requested the Authority’s assistance with a certain project (the “Project”) consisting of (i) the acquisition by the Authority of a leasehold or other interest in certain parcels of real property located at, adjacent or near 2955 Fifth Avenue, Troy, New York 12180 (the “Land”, being primarily comprised of approximately .51 acres and identified as TMID No. 090.070-7-1 and adjacent realty) and the existing improvements located thereon, including a 4-story building containing approximately 35,366 sf of rentable commercial space and related improvements located thereon (the “Existing Improvements”, being formerly owned and operated as School 1 by the Enlarged City School District of Troy); (ii) the planning, design, rehabilitation, construction, reconstruction and renovation of the Existing Improvements and upon the Land of a commercial apartment building that will include 28 units of residential apartments and related amenities, along with renovations to the building structure, common areas, heating systems, plumbing, roofs, elevators, windows, and other onsite and offsite parking, curbage and infrastructure improvements (collectively, the “Improvements”); and (iii) the acquisition and installation in and around the Land, Existing Improvements and Improvements of certain machinery, equipment and other items of tangible personal property (the “Equipment”, and collectively with the Land, Existing Improvements, Improvements and the Equipment, the “Facility”). It is contemplated that the Authority will acquire 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 leases. The Authority contemplates that it will provide financial assistance (the “Financial Assistance”) to the Company in the form of (a) a sales and use tax exemption for purchases and rentals related to the Project; (b) mortgage recording tax exemptions(s) related to financings undertaken by the Company to construct the Facility; 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. IV. AGENCY COST-BENEFIT ANALYSIS: The Company Application for Financial Assistance indicates a total project cost of approximately $2,000,000. 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 Exemptions ($1.4M Mortgage) = $17,500.00 Sales and Use Tax Exemptions (Estimated $700,000.00 in taxable materials) = $55,000.00 PILOT Savings - estimated = $ 525,160.00 Total estimated Financial Assistance = $ 597,660.00 V. SEQRA: The Planning Commission of the City of Troy (the “Planning Commission”), as lead agency pursuant to the State Environmental Quality Review Act and regulations adopted pursuant thereto (collectively, “SEQRA”). The Authority will await final action on the Project until the Planning Commission has adopted a negative declaration (the “Negative Declaration”) with respect to the Project. VI. PUBLIC COMMENTS VII. ADJOURNMENT As there were no comments, the public hearing was closed at ________ a.m.  City of Troy Industrial Development Authority December 11, 2015 10:00 AM Meeting Minutes Present: Kevin O’Bryan, Bill Dunne, Hon. Robert Doherty, Paul Carroll, Hon. Dean Bodnar, Tina Urzan and Sue Farrell Absent: Kathy Ceitek, Lou Anthony and Steve Bouchey Also in attendance: Justin Miller, Ken Crowe, Mark Robarge, James Lozano, Kevin Bette, Jacques, Nathaniel Bette, Chris Bette, Mike Demasi, Deanna, David Ardman and Denee Zeigler The Chairman called the meeting to order at 10:00 a.m. I. Minutes D The board reviewed the minutes from the November 20, 2015 board meeting. R Hon. Dean Bodnar made a motion to approve the November 20, 2015 meeting minutes. Tina Urzan seconded the motion, motion carried. II. New Board Member T AF Bill Dunne introduced the Lansingburgh School District representative, Susan Farrell to the board members. The board asked if a vote needed to occur. Mr. Miller advised no, the council approved her appointment to this board. The board members welcomed Mrs. Farrell. III. First Columbia project presentation Mr. Dunne introduced Kevin Bette of First Columbia to the board and advised that he will be presenting the first component of a larger district project to them today. Mr. Bette introduced his development team to the board and advised they will be working together to make an economic development change in Troy that will help to bring commerce back into the city. Mr. Bette explained that they want to focus on transportation as a way to reach this goal and ultimately increase the value of the housing stock of the city. There is already a great base of population and colleges. The population along with the historical buildings can all help achieve this. Mr. Bette spoke about a multi-phase project. The first phase is to bring in jobs. He advised that this phase has taken longer than anticipated, but seems to be in a good spot now. The second phase is to bring small businesses and service 1  companies back to Troy. He noted that this will help to keep some of the business within Troy, instead of having to travel to nearby areas to shop. Mr. Bette noted that over the years, several of the surrounding lots were purchased to provide additional parking for anticipated jobs. The goal was to create structured parking. He advised we have reached a crossroads where we can stay the way we are or we can partner with the City, share infrastructure and grow the economy. Mr. Bette outlined their project to the board and explained that they are willing to take some risks in order to create structured parking and to free up the land along the river for development. He advised that they will take on the running and maintenance of the parking garage. Mr. Bette advised that they have had success in the past bringing businesses and people to this area that may not have had it as their first choice, but really enjoy it once they get here. He explained that if the IDA was able to give them assistance in the form of PILOTs on the previously purchased lots, it would allow them to reinvest the savings toward improving the surrounding area, adding new buildings and contribute to the creation of a parking structure. He noted that they are willing to risk that growth will occur. Mr. Bette shared renderings with the board in order to illustrate what they hope to accomplish with this plan. Mr. Bette advised that he would like to continue Mr. Hedley’s vision and mission D of helping Troy as well as opening up the waterfront to the public. Bob Doherty asked how strongly is the river walkway a part of this plan and noted the positive effects of a similar project along the river in Wilmington, N.C. Mr. Bette agreed that the work done in Wilmington, N.C is great and they would like to R incorporate some of those ideas here. Mr. Dunne advised that the Riverfront North Extension grant will be used to assist the city with some of the design and work issues that have come up. The grant should allow work to get as far as the River Street Café. He advised that a lot of the work will depend on what will T take place with the sea wall repairs. Mr. Dunne advised that the city was also AF recently awarded funding for design and engineering work to finish the remainder of Riverfront Park and the gateway at the Green Island Bridge. Mr. Bette also noted the recent developments at the Matthews building and the Mooradian’s buildings. He was excited to see residential development in that area and noted that they will be in need of retail services. Tina Urzan mentioned that a lot of people in that area have asked about getting a supermarket that people can both walk to and is accessible from the highway. Mr. Bette advised that the supermarkets are aware and are waiting for our numbers to increase. It will be something that they will keep in mind for the future. Mr. Doherty asked if Old Sixth Avenue is within his boundary for development. He noted how amazing that block is. Mr. Bette agreed that it is beautiful and underutilized, but advised that it is not within his boundary. He hopes that the effects of this project will move up towards RPI. The college and the students are an asset to us. The board thanked Mr. Bette for his presentation. IV. Financials Mr. Lozano gave an overview of the financials. He advised there has not been much activity for the month of November. Total assets stand at $595,000 verses current liability of $210,000 which leaves $385,000 of equity. Mr. Lozano noted under accounts receivables, it shows $55,000 outstanding for two different PILOTs; City Station and Realex. City Station’s payments was received early in 2  December and Realex’s has not been received. Dean Bodnar asked how far in arrears is the outstanding PILOT. Mr. Lozano advised it is about 60 days past due. Mr. Miller advised that we may hear something new about Bomber’s (Realex) in January and noted it has been closed but may be re-opening. Mr. Dunne advised that the building will be purchased by the franchise owner, Matt Baumgartner and he will be re-opening the restaurant in the near future. Mr. Bodnar asked if the ownership changes, if we have a leasehold interest in the building and if that will transfer to the new owner. Mr. Miller advised yes, subject to our consent. He advised that the new owner will have to come to us and present. At that time, we can decide to transfer it to the new owners. Mr. Bodnar asked about the $6,400 that is in arrears. Mr. Miller advised that it should be paid by the current owners, but we are waiting for the sale process to settle before we send out a request for the past due amount. The board asked about the process of writing off receivables. Mr. Lozano advised that it is up to the board about how to handle and advised that PILOTs are handled differently because the IDA acts as a pass through. Mr. Miller added that it is not our asset to write off; there are other organizations that are a part of the PILOTs. Mr. Lozano advised the operating statement also did not have much activity. Year to date, we stand at a deficit of $495,000. There were some legal expenses and the management fee to the City of Troy. He advised that the difference from last month to this month is those two fees. The chairman D explained that there is not a specific amount the deficit amount. He advised that Mr. Dunne has prepared a report on the projects that will be coming up in the next few months that will be presented later in this meeting. R Hon. Bob Doherty made a motion to approve the financials as presented. Paul Carroll seconded the motion, motion carried. T The board adjourned the IDA portion of the meeting at 10:40 a.m. in order to convene AF as the CRC. Paul Carroll made a motion to adjourn the IDA portion of the meeting and convene as the CRC. Tina Urzan seconded the motion, motion carried. The IDA portion of the meeting was re convened at 10:50 a.m. Tina Urzan made a motion to re-convene the IDA potion of the meeting. Hon. Bob Doherty seconded the motion, motion carried. V. 2016 Board Meeting Schedule Mr. Dunne advised that, as discussed with the CRC, we would like to change the meeting date from the second Friday of each month to the third Friday to allow for additional time to prepare the financials for the board. Tina Urzan made a motion to approve the change of meetings from the second to the third Friday of each month. Hon. Bob Doherty seconded the motion, motion carried. 3 VI. SaxBST auditing services Mr. Dunne advised the board that he received correspondence from SaxBST to say that the contract has expired for the auditing services contract and they would like to provide us with auditing services for 2015-2017. Mr. Dunne advised that the new amount they are asking for is $100 more than the previous contract. The board agreed that they did a great job and would like to continue services with them. Paul Carroll made a motion to approve the contract with SaxBST for auditing services for 2015-2017. Tina Urzan seconded the motion, motion carried. VII. IDA project pipeline Mr. Dunne distributed a spreadsheet to the board members that outlined open projects that have been in front of the board and potential projects with an explanation of the status and the approximate amount of fees that will be collected. He advised the list contains projects that are in different phases. Mr. Dunne advised that the report indicates approximately $127 Million worth of projects in the pipeline. He noted $124 Million worth since we started in 2012. The chairman advised that this report is not a guarantee and is meant to give us D an idea of what to expect in our future and help us to plan our finances. Mr. Dunne advised that there are a couple of additional items that are not projects where we can expect funds to come in; such as reimbursement from NYS for the riverfront park staircase. Mr. Bodnar felt this report was very helpful in R keeping track of the ongoing projects. The board agreed. Mr. Lozano advised that this information will be helpful to them as well. A forecast report can be created based on this information that will help to project an even clearer picture of the finances. The chairman advised that this will help us to run more T like a business going forward. AF Mr. Doherty asked about the Vecino project on River Street. Mr. Dunne advised that the Hudson Art House had its closing already and is not included on this sheet. Mr. Dunne advised he can send out a report summarizing all of the projects if they board would like. VIII. Ingalls Avenue Boat Launch Mr. Dunne gave an update on the Ingalls Avenue Boat Launch project which is next to the Mlock parcel. He advised that they are at the public comment phase of this project and if all goes well, they will be able to apply for dredging permits next year. The board has acquired an easement and an exclusive right to property contiguous to the site, so the board may want to consider exercising that option. He noted that this has been a long, four year process but is excited that the project is at that point where it will move forward. Mr. Dunne advised that this is a great opportunity for that area and touches on what Mr. Bette spoke about during his presentation. The chairman noted this is another example of development happening outside of the central business district. IX. Project Status The chairman asked if there was any additional business to discuss. Tina Urzan asked about the status of the playground furniture that RPI was working on for 4  us. Mr. Dunne advised that they did complete the project, but we did not have the funding at the time to complete. Mrs. Urzan asked what the budget was. Mr. Dunne advised that to get engineering drawings for all of the proposed pieces, it was in the low six figures. Mr. Bodnar advised that it was a low cost to us and we will still have the documentation for the future in the event it can be carried out. X. Board member terms Mr. Miller advised that this board is made up of nine members; made up of two city council members, a representative from each school district and a labor member. They are considered hold over appointments that are appointed for three year terms or to fill the remainder of a vacant term. The newest member was set up with a set three year term. The other positions are up to the new mayor to appoint. The chairman noted he would like to keep the current IDA board members in place. XI. Adjournment The IDA portion of the meeting was adjourned at 11:05 a.m. Hon. Dean Bodnar made a motion to adjourn the IDA meeting. D Tina Urzan seconded the motion, motion carried. R T AF 5  Troy IDA Confidential Evaluation of Board Performance Somewhat Somewhat Criteria Agree Agree Disagree Disagree Board members have a shared understanding of the mission and purpose of the Authority. The policies, practices and decisions of the Board are always consistent with this mission. Board members comprehend their role and fiduciary responsibilities and hold themselves and each other to these principles. The Board has adopted policies, by-laws, and practices for the effective governance, management and operations of the Authority and reviews these annually. The Board sets clear and measurable performance goals for the Authority that contribute to accomplishing its mission. The decisions made by Board members are arrived at through independent judgment and deliberation, free of political influence, pressure or self-interest. Individual Board members communicate effectively with executive staff so as to be well informed on the status of all important issues. Board members are knowledgeable about the Authority’s programs, financial statements, reporting requirements, and other transactions. The Board meets to review and approve all documents and reports prior to public release and is confident that the information being presented is accurate and complete. The Board knows the statutory obligations of the Authority and if the Authority is in compliance with state law. Board and committee meetings facilitate open, deliberate and thorough discussion, and the active participation of members. Board members have sufficient opportunity to research, discuss, question and prepare before decisions are made and votes taken. Individual Board members feel empowered to delay votes, defer agenda items, or table actions if they feel additional information or discussion is required. The Board exercises appropriate oversight of the CEO and other executive staff, including setting performance expectations and reviewing performance annually. The Board has identified the areas of most risk to the Authority and works with management to implement risk mitigation strategies before problems occur. Board members demonstrate leadership and vision and work respectfully with each other. Date Completed: ________________________________________