Troy Industrial Development Authority

Board Members Chair Josh Chiappone Justin Nadeau Susan Farrell Vice Chair Elbert Watson Hon. Anasha Cummings Hon. Jim Gulli Stephanie Fitch Executive Director Latasha Gardner Steven Strichman BOARD OF DIRECTORS MEETING CITY HALL PLANNING DEPT. CONFERENCE ROOM 433 RIVER STREET, SUITE 5001 TROY, NY 12180 OCTOBER 29, 2021 10:00 a.m. I. Approval of Minutes from the September 24, 2021 meeting. II. Budget III. Administrative Funding Agreement – City of Troy IV. Executive Director’s Report V. Old Business VI. New Business VII. Financials VIII. Adjournment City Hall – 433 River Street, Suite 5001, Troy, New York 12180 Phone: 518.279.7166  September 24, 2021 10:00 AM Regular Board Meeting This meeting was held via Zoom Present: Justin Nadeau, Susan Farrell, Elbert Watson, Hon. Anasha Cummings and Latasha Gardner. Absent: Hon. Jim Gulli, Stephanie Fitch and Josh Chiappone Also in attendance: Steven Strichman, Justin Miller Esq., Mary Ellen Flores, Matt Jones, Deana D Dal Pos, Jena Lora and Denee Zeigler. I. Minutes R The board reviewed the minutes from August 20, 2021. Susan Farrell made a motion to approve the August 20, 2021 board meeting minutes. T Latasha Gardner seconded the motion. AF Hon. Anasha Cummings abstained. Motion passed. II. Supplemental Authorizing Resolution – 10 River Street Mr. Strichman advised that this project has been previously approved. Miller advised the board that the project at 10 River Street closed in 2018 where a PILOT was received. They are now ready for their permanent financing and have approached the board for a Mortgage Recording Tax of $54,000. He advised that a10% administrative fee will be received and no public hearing is needed. Mr. Watson asked if there was a reason why the amount borrowed went from $10 to $15 Million. Mr. Miller explained it could be due to their stabilized rent and income. Mr. Miller shared the term sheet with the board which indicated the total project. Mr. Watson asked about the developer. Mr. Strichman advised it was done by Fairbanks and noted they have done a couple of projects in Albany; they may be doing another project in Troy. Mr. Cummings asked what the total cost was for the project. Mr. Miller advised that the appraisal value appears to be $20 Million. Mr. Strichman advised the project cost from the original application shows as $13.5 Million including acquisition. Mr. Strichman explained the building was always getting taxes, but they will be significantly more now because the building has had so many improvements. (See attached Resolution 09/21 #1) 1  Elbert Watson made a motion to approve the Supplemental Authorizing Resolution for 10 River Street. Latasha Gardner seconded the motion, motion carried. III. Executive Director’s Report DRI Grant – Mr. Strichman advised that the board approved HR&A Consultants for work on the DRI Grant did not have to be used; the $25,000 was not spent. He advised the application was completed internally. NYS Economic Development Conference – Mr. Strichman advised he would like to attend this conference in Cooperstown in the amount of $495. Dylan Turek may be attending as well. He advised that there is also a hotel charge of approximately $275 each. Appraisals – Mr. Strichman advised that there are two LDC owned properties that will be part of an upcoming project and he would like to get updated appraisals for both of them. They will be approximately $1500 each. Budget – Mr. Strichman advised our budget will need to be adopted next month. He noted a draft will be sent around for the board to look at before the October meeting. D One Monument Square – Mr. Strichman advised that we may have a presentation next month of the One Monument Square project. He advised that there was a public R presentation of the project which was well received. Mr. Strichman noted that they will be going through the planning process soon. Ms. Gardner asked about the process for the DRI Grant that may have been different T this time. Mr. Strichman noted that we had a good base application started and as they worked through it, realized that no additional assistance was needed to AF complete it. IV. Financials Ms. Flores presented the statement of financial position to the board. She advised that as of August 31, 2021, there is $618,082.93 in assets and $444,375.61 in cash. She advised $212,677.90 in liabilities, leaving a fund balance of $405,405.03. No significant changes. Ms. Flores presented the statement of activity for August and explained there is a deficit of $1,742.36 due to all normal expenses. Mr. Nadeau asked about the line labeled administrative fee in the amount of $180,000. Ms. Flores advised that we budgeted to receive from projects. Mr. Miller advised that a couple of projects have closed recently and others are set to close soon. Mr. Strichman asked about unclassified revenue. Ms. Flores advised it can include anything that was billed out this year and is not typically collected. Mr. Strichman noted the amount and explained it might include some of the 701 River Street funds. Mr. Watson asked about the restricted cash on the balance sheet. Ms. Flores advised it is related to PILOT on Hoosick Street. Mr. Miller also noted that Hoosick Hospitality project will have a percentage of the receipts from the restaurant in addition to their PILOT. Mr. Watson asked about an amount on the balance sheet. Ms. Flores advised they are late fees that will be passed on to the city once collected. 2  Hon. Anasha Cummings made a motion to approve the financials as presented. Elbert Watson seconded the motion, motion carried. V. Adjournment With no additional business to discuss, the IDA board meeting was adjourned at 10:37 a.m. Hon. Anasha Cummings made a motion to adjourn IDA board meeting at 10:37. Elbert Watson seconded the motion, motion carried. D R T AF 3  ` Troy Industrial Development Authority 2021 Draft Budget Presented to Budget Committee 10/15/21 Adoption Vote Scheduled for 10/15/21 2020 2021 2022 2023 2024 2025 2026 Actual Actual Budget Budget Budget Budget Budget EOY Estimate Draft Draft Draft Draft Draft REVENUE & FINANCIAL SOURCES Operating Revenues 3 5 Charges for services $ 147,447 $ 24,470 $ 417,500 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Rentals & Financing Income - - - - - - 6 Other Operating Revenues - - 247,740 - - - - Nonoperating Revenues Investment earnings $ 2,879 $ 300 $ 300 $ 1,000 $ 1,000 $ 1,000 $ 1,000 State subsidies / grants - - - - - - - Federal subsidies / grants - - - - - - - Municipal subsidies / grants - - - - - - - Public authority subsidies - - - - - - - 4 Other Non-Operating Revenues - 700 - - - - - Proceeds from the issuance of debt Total Revenues & Financing Sources $ 150,326 $ 25,470 $ 665,540 $ 301,000 $ 301,000 $ 301,000 $ 301,000 EXPENDITURES Operating Expenditures Salaries and Wages Other Employee Benefits 1 Professional Service Contracts $ 146,620 $ 171,867 $ 154,568 $ 154,568 $ 154,568 $ 154,568 $ 154,568 Supplies and Materials $ - $ - $ - $ - $ - $ - $ - 6 Other Operating Expenditures 156 - 61,700 50,000 50,000 50,000 50,000 Nonoperating Expenditures Payment of prinicpal on bonds and financing arrangements - - - - - - - Interest and other financing charges - - - - - - - Subsidies to other public authorities - - - - - - - Capital asset outlay - - - - - - - Grants and Donations - - - - - - 2 7 Other Non-Operating Expenditures 247,740 67,500 60,000 60,000 60,000 60,000 Total Expenditures $ 394,516 $ 171,867 $ 283,768 $ 264,568 $ 264,568 $ 264,568 $ 264,568 Capital Contributions Excess (deficiency) of revenues and capital contributions over expenditures $ (244,190) $ (146,397) $ 381,772 $ 36,432 $ 36,432 $ 36,432 $ 36,432 Cash EOY $ 277,994 $ 659,766 $ 696,198 $ 732,630 $ 769,062 $ 805,494 1 Legal, Accounting, Advertising, Insurance, City + (CME in 2021) 2 701 River - Project Expense 2020 & Sale of property 2021 3 Admin and Application fees includes $14,970 for DeFazio 4 Fee for 12 Troy LLC 5 Project fees - CSN, 171 River, FC mkt and Rockwall, 2001 5th +1/2 Kings 2 6 2021 Wayfinding $61,700 6 701 River - Project Expense 2020 & Sale of property 2021 7 Kings Landing fee  ADMINISTRATIVE FUNDING AGREEMENT THIS ADMINISTRATIVE FUNDING AGREEMENT (hereinafter the “Agreement”), dated as of the ___ day of October, 2021, by and between TROY INDUSTRIAL DEVELOPMENT AUTHORITY, a public benefit corporation of the State of New York, having its offices at 433 River Street, 5th Floor, Troy, New York 12180 (the “Authority”), and the CITY OF TROY, NEW YORK, a municipal corporation having offices at 433 River Street, 5th Floor, Troy, New York 12180 (the “City”). WITNESSETH: WHEREAS, by Title 11 of Article 8 of the Public Authorities Law of the State of New York (the “State”), as amended, and Chapter 759 of the Laws of 1967 of the State of New York, as amended (hereinafter collectively called the “Act”), the Authority was created with the authority and power to own, lease and sell property for the purpose of, among other things, acquiring, constructing and equipping industrial, manufacturing and commercial facilities as authorized by the Act; and WHEREAS, pursuant to Section 1953(6), and with the consent of the City, the Authority is empowered to use agents, employees and facilities of the City and pay to the City an agreed proportion of the compensation or costs associated therewith; and WHEREAS, the Authority and the City desire to memorialize the City’s consent to (i) the Authority’s appointment of certain City Employees (the “City Employees”, as defined herein) to serve as Staff to the Authority; and (ii) the Authority’s use of certain facilities and equipment within City-owned facilities; and WHEREAS, in furtherance of the foregoing, the Authority and City further desire to memorialize the amount of reimbursement to be paid by the Authority to the City for the year 2022 (herein, the “Administrative Funds”). NOW, THEREFORE, for and in consideration of the premises and the mutual covenants hereinafter contained, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby formally covenant, agree and bind themselves as follows. ARTICLE I CITY EMPLOYEE CONSENT; LICENSE FOR FACILITIES Section 1.1. City Authorization to utilize City Employees. The City hereby authorizes the Authority to appoint and utilize those certain City Employees as set forth within Exhibit A, hereto. Section 1.2 License to Utilize City Facilities. In exchange for the Annual Reimbursement Fee, as defined herein, the City, as licensor, hereby authorizes and grants to the Authority, as licensee, an exclusive, revocable license (the “License”) to enter the City Hall and occupy and utilize certain space office located therein and as more particularly described below. The License herein granted shall also include the Authority’s periodic use of meeting rooms located within City Hall to conduct periodic meetings of the Authority. The Authority shall have shared access to and rights to utilize Planning and Comptroller’s office space within City Hall, including use of equipment and amenities located therein, including furniture, computers, telephone equipment and general office equipment and supplies. Authorized board members, staff and representatives of the Authority shall have unrestricted access rights and use of the Premises and shall coordinate all activities and operations therein in a cooperative fashion with the City Planning Department and Comptroller’s Office and maintain respective confidentiality of City and Authority documents and information. Authorized board members, staff and representatives of the Authority utilizing equipment and amenities of the City shall comply with and be subject to all applicable City policies relating thereto. The City shall provide the Authority with keys to City Hall and Premises that shall be restricted to the Authority’s authorized representatives. Section 1.3 License Indemnity. The Authority, as Licensee, does hereby protect, defend, indemnify and hold harmless the City, as Licensor, against any and all claims, costs, judgments, liens, or actions, including reasonable attorney’s fees and costs of defense, for damage to property or injury to persons suffered on, or resulting or arising from the Authority’s activities within City Hall and the Premises, including any activities, actions, malfeasance or omissions of the Authority or any officer, employee, director, agent or contractor of the Authority. The provisions of this paragraph shall survive termination of this Agreement. The Authority further hereby protect, defend, indemnify and hold harmless the City, as Licensor, against any and all claims, costs, judgments, liens, or actions, including reasonable attorney’s fees and costs of defense, for claims, judgments, actions and any related liens associated with the Authority’s business activities as same may affect the City’s or title to City Hall, including, but not limited to any action or dispute that may give rise to a lien against same. ARTICLE II PAYMENT OF ADMINISTRATIVE FUNDS Section 2.1 Payment of Administrative Funds In exchange for the Authority’s appointment and of the City Employees to serve as Staff to the Authority; and (ii) the Authority’s use of certain facilities and equipment within City- owned facilities in accordance with the License granted herein, the Authority shall pay the City the amount of ONE HUNDRED THOUSAND DOLLARS ($100,000.00). Such Administrative Funds shall be payable by the Authority to the City no later than December 31, 2021. ARTICLE III MISCELLANEOUS Section 3.1. Notices. All notices and other communications hereunder shall be in writing and shall be sufficiently given and shall be deemed given when delivered and, if delivered by mail, shall be sent by certified mail, postage prepaid, addressed as follows: To the Authority: Troy Industrial Development Authority 433 River Street, 5th Floor Troy, New York 12180 Attn: Chief Executive Officer To the City: City of Troy 433 River Street, 5th Floor Troy, New York 12180 Attn: Mayor or at such other address as any party may from time to time furnish to the other party by notice given in accordance with the provisions of this Section. All notices shall be deemed given when mailed or personally delivered in the manner provided in this Section. Section 3.2. Binding Effect; No Assignment. This Agreement shall inure to the benefit of and shall be binding upon the Authority and the City, and may not be assigned in any fashion. Section 3.3. Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 3.4. Amendments, Changes and Modifications. This Agreement may not be amended, changed, modified, altered or terminated without the concurring written consent of the parties hereto. Section 3.5. Execution of Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. [THE BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]  [Signature Page to Administrative Funding Agreement] IN WITNESS WHEREOF, the Authority and the City have caused this Agreement to be executed in their respective names, all as of the date first above written. TROY INDUSTRIAL DEVELOPMENT AUTHORITY By: Name: Steven Strichman Title: Executive Director CITY OF TROY, NEW YORK By:_________________________________ Name: Hon. Wm. Patrick Madden Title: Mayor  EXHIBIT A CITY EMPLOYEE LISTING Steven Strichman Commissioner of Planning and Economic Development Dylan Turek Economic Development Director Andrew Kreshik Assistant Planner Denee C. Zeigler Senior Economic Development Tech Andrew Piotrowski Deputy Comptroller