Troy Local Development Corporation

Troy Local Development Corporation Board of Directors Meeting May 15, 2008 10:00 a.m. Minutes Present: Daniel Crawley, Sondra Little, Bill Roehr, Ken Zalewski, Deb Witkowski I. Approval of the Minutes from the January 17th, 2008 Board Meeting. Motion made by: Ken Zalewski Seconded by: Bill Roehr II. Review of Funding Proposals 1. Old World Provisions, Inc. Mark Shuket, President Proposal - Acquisition and Rehabilitation of Fritz Helmbold Inc. at Industrial Park Road Request: $250,000 Loan $50,000 EDAP for acquisition and rehabilitation. Mark Shuket from Old World Provisions spoke about the history of the business in Albany, NY and the purchase of Helmbold’s in Troy, NY and the plan to combine the companies. This merger will result in the creation of jobs. The company has already hired a Plant Manager and Supervisor and will increase jobs from 30-60. The previous Helmbold’s employees are staying and Marilyn Widmer (former Helmbold’s owner) will be Helmbold’s Brand Manager. The Helmbold’s name will stay in place. There will be additional production and warehouse space needed. The President has a meeting set up with Price Chopper and more wholesalers to put products on their shelves. Distribution will also increase with negotiations continuing in Philadelphia and South Florida. Ken Zalewski asked what types of jobs will be created. Mark Shuket answered, positions are needed for packaging and maintenance, etc. Dan Crawley asked, who were their competitors.  Mark Shuket answered, Troy Pork Store, White Eagle and Deitz and Watson. Sondra Little asked questions regarding financing. Specifically, where they were looking for other funding. Mark Shuket answered First Niagara and NYBDC. Ken Zalewski asked if there were going to be any transportation or traffic problems and if there were any unionized employees? Mark Shuket answered, there will be some local traffic during the day hours with the warehouse distribution and that there is a Local 1 Union (supermarket union) in place. Motion to approve $250,000 loan: Dan Crawley Motion seconded: Bill Roehr Motion to approve $50,000 grant: Ken Zalewski Motion seconded: Bill Roehr 2. Frank Razzano Proposal – Acquisition and Renovation of the former Ned Abbots Grocery and Deli. Request: EDAP Grant for acquisition and renovation. Frank Razzano presented a proposal to lease the former Ned Abbots Grocery on the corner of Hoosick and Fifteenth Streets and renovate the building into a first floor deli and second floor commercial space. He stated that they anticipate on employing 10 people. Mr. Razzano spoke of future plans to expand the deli into providing business lunches and dinner catering. Mr. Razzano also noted that the garage will come down in the back of the building and there will be ample parking available. Dan Crawley suggested that the applicant’s contract for sale should be contingent upon receiving approvals from Planning Board and the Zoning Board of Appeals. Ken Zalewski asked what his plans were for marketing the deli business? Frank Razzano noted that he hoped to capture the hospitals, RPI and traffic on Hoosick Street. He plans on offering a more quality deli sandwich than the local Mr. Subb and Blimpie Subs that are nearby. 2  Tabled: Pending contract with owner and the submission of a completed application and site plan. 3. Dusk Shane Sportman Proposal - Renovation and operation of 120 4th Street as a lounge and bar. Requested: Recommendation letter from City of Troy Local Development Corporation to the NYS Liquor Authority. Shane Sportman noted that he has a lease agreement for three years with the owners for a restaurant/lounge with food and entertainment venues and a full lunch/dinner menu. The SLA is requiring letters of recommendation. Deb Witkowski asked if there were attorneys involved in drafting the three -year lease agreement? Shane Sportman described some of the details of the lease agreement that were drawn up by his attorney. Bill Roehr asked if he would be hiring and Shane noted that he would be working there and would be hiring a bartender, a chef and other wait staff. Dan Crawley asked the hours of operation. Shane answered that the establishment would be open six days a week from about 11:30 a.m. to midnight. Shane stated that it would not be a nightclub but would have bands. Dan Crawley noted that 2:00 a.m. was when the problems arose and asked if Mr. Sportman would consider 2:00 a.m. for closing time. Deb Witkowski expressed her concerns about the applicant’s risk with a three -year lease. Ken Zalewski asked if Shane could renew the lease. Shane Sportman responsed that it was a short term lease at his request and that the building was too expensive for him to purchase right now. Ken Zalewski asked if Shane would be there fulltime. Shane responded that he would be cutting some of his time at his job with the State of New York and that he would be hiring a Bar Manager, Chef, 3  Secretary. He also noted that he has had some discussion with City of Troy Police Department to request their presence at the restaurant. Ken Zalewski asked for copies of the other recommendation letters that were sent to the State Liquor Authority for the board members along with the copy of the lease. Dan Crawley again suggested that a 2:00 a.m. should be considered. Tabled: Pending receipt of copies of letters of support sent to the State Liquor Authority, an application, copy of lease and a commitment to close at 2:00 a.m. III. Resolution #1 – Authorizing the President of the Troy Local Development Corporation to enter into an agreement for Economic Development and Transaction Counsel Services. Dan Crawley explained the agreement that was presented to the city by Harris Beach, Attorneys at Law to assist the Troy Local Development Corporation with respect to general economic development initiatives and transaction. Bill Roehr noted that there is a need to engage specialists that have the ability to network and engage developers. Dan Crawley noted that there would be no retainer fees. Deb Witkowski noted that some of their initial activities would be to draw legal mortgages and that they could take over negotiations with National Grid. Dan Crawley noted that there would be no cost the taxpayers. Ken Zalewski asked if Harris Beach did any other business in Troy. Deb Witkowski said that LDC’s and IDA’s in the areas of Kingston and other areas have been assisted by Harris Beach. Dan Crawley explained to Ken Zalewski, a new member of the board the responsibilities of the Troy Local Development Corporation. Motion to approve made Resolution # 1 made by Dan Crawley Motion seconded by Sondra Little 4 IV. Resolution #2 – Authorizing amendments to the By-Laws of the Troy Local Development Corporation to conform to the requirements of the Public Authorities Accountability Act. Sondra Little stated that the amendments to the by-laws were necessary to come into compliance with the Public Authorities Act of 2005. After some discussion it was generally agreed that some additional modifications needed to be made to the by-laws and that those changes would be reviewed at the next regular meeting. Motion made to table Resolution # 2 made by Dan Crawley Motion seconded by Bill Roehr V. Resolution #3 – Authorizing the adoption of various administrative policies as required by the “Public Authorities Accountability Act”. Sondra Little noted that these policies were required by NYS statute Dan Crawley asked the Board to take a look at the various proposed policies and we would propose to adopt them at the next meeting. Motion made to table Resolution # 3 made by Dan Crawley Motion seconded by Ken Zalewski VI. Resolution #4 – Authorizing the creation of a Contracting Officer as an officer of the Troy Local Development Corporation. Motion made to table Resolution # 4 made by Dan Crawley Motion seconded by Ken Zalewski 5