Troy Local Development Corporation

Name: Troy Local Development Corporation — Troy, NY
Start: 2013-03-08
End: 2013-03-08
Location: Troy, NY

Regular Meeting

Troy, NY · March 8, 2013

Agenda Minutes

Minutes

TROY LOCAL DEVELOPMENT CORPORATION Board of Directors Meeting Minutes March 8, 2013 8:30 a.m. BOARD MEMBERS PRESENT: Wallace Altes, Chair, Bill Dunne, Andrew Ross, Ken Zalewski, Andrew Torres, Ph.D. ABSENT: ALSO IN ATTENDANCE: Dep. Mayor Pete Ryan, Bob Ryan, Monica Kurzejeski, Laban Coblentz and Denee Zeigler Minutes Wallace Altes called the meeting to order at 8:35 a.m. I. Review of minutes from the February 8, 2013 meeting. The board reviewed the minutes and made a motion to approve. Andrew Ross made the motion to approve the minutes. Bill Dunne seconded the motion, motion carried. II. New Business 1. Bill Dunne explained to the board that 90 and 92 King Street are two properties that will be on the in reim property list in April. They are in close proximity to the Vecino Group’s project at 444 River Street and may add to the project. 2. Monica discussed with the board a loan term sheet that was developed by Justin Miller and herself to be used with Rare Form but also for future projects. The board was given a copy to review and discuss. The board discussed the fees being charged to the applicant and the fees they LDC pays to have the legal documents drawn up. Bob Ryan advised the board of three updates that will take place on the form regarding security required, closing costs and disbursement of the loan. The board agreed that they would like to have proof before funds are distributed. Andy Ross questioned if there were changes to be made if the board would have to wait until the next meeting to finalize. Bob Ryan stated that the changes could be finalized with the resolution. With no other questions, the Chairman asked if they were ready to authorize the loan sheet for Rare Form. Andy Ross abstained from the vote. Ken Zalewski made a motion to move to authorize the loan sheet for Rare Form. Andy Torres seconded the motion, motion carried. 3. Bill Dunne and Monica Kurzejeski talked to the board about future projects. The Ruck - Bill Dunne explained to the board that Dave Gardel, the owner of The Ruck on Third Street recently purchased the former Troy Pork Store at the corner of Ferry St. and Fourth St. He hopes to have a late night food establishment similar to the Brown Bag. The Ale House – Monica Kurzejeski advised the board that the owner of The Ale House is planning to expand and to add on outdoor patio. They currently own the attached vacant building and lot to the South. They are currently working with the SLA and are looking for a façade or equipment loan. She advised them that currently there are no 50/50 funds. Andy Torres questioned if there was a way to set up a loan, drawing on experiences with Bombers. Monica advised that if they do, it should steer people towards lower amounts, the $20,000 to $25,000 range. Loans would have to tie back to the project, not for operating costs or start up funds. Indigo Salon – Monica Kurzejeski advised the board that the Indigo Salon project is moving forward and they are in the SHPO Clearance phase for their 50/50 façade grant. She noted it is also is to follow historic district guidelines. She advised that they plan to double their employment. The Chairman asked if there were any questions and if the board wanted to enter into an agreement for assistance. Andy Ross made the motion to enter into an agreement with Indigo Salon for assistance. Andy Torres seconded the motion, motion carried. The board revisited item three on the agenda and Bill Dunne discussed a fuel cell technology project that would potentially move into the area. Monica Kurzejeski advised that she has worked with him in the past and also has a couple of other potential applicants that are moving into the area. Monica Kurzejeski introduced Laban Coblentz from the Center of Gravity to the board. They are currently in the old OTB space and got a great response to their soft opening. Laban Coblentz talked about the origin of the project and where they are at currently. After discussing with the recent graduates and students, it was decided that what was needed was a makers space. He passed around an unfinished brochure that mapped out areas that have these types of creative spaces and there was a void in the capital region. He also explained that he had a soft opening recently and expected only about 60 people, but instead had 140 people show up and signed many of them up for full memberships on the spot. He plans to have a ribbon cutting in April. The project is growing quickly and may need a larger space such as The Quackenbush building. With a space that size, it could become a regional center. Mr. Coblentz spoke to the board about the financial commitments they have from other areas such as the county and the Lexus Nexus grant. He was looking for $47,000 to bring the total contribution to $50,000. He is excited to have the county and city working together. He wants to encourage the collaboration. The chairman asked the board if they had any questions. Ken Zalewski asked how this relates to co-working and co-space. Laban Coblentz explained that it will be for people that work mainly on the weekends and evenings or for businesses that can train or have groups of their employees to work out of the area. It would be beneficial to people that don’t have a company yet, but an idea. Andy Ross discussed that he was happy to see that there would be a way to help get people to the next step of creating their business. III. Old Business 1. Deputy Mayor Pete Ryan asked the board to discuss the proposed Leonard Hospital land exchange. He hoped that the process is completed by June 30th. They are currently in the process of doing the Environmental Study. Bill Dunne advised that he will look into doing the closing and get back to him. Monica Kurzejeski questioned if they had priced out an environmental review yet? If not, she has quotes from three companies. The Chairman thanked Pete Ryan for coming and mentioned that the TLDC is working to move this along. 2. Monica Kurzejeski spoke about the tenants at the King Fuels site, specifically Materials Recovery Center. National Grid said they don’t need the use of the site immediately. For now they will keep them on the lease month to month. The tenant was very appreciative. 3. Bill Dunne passed around a packet of information related to the Bomber’s project. He sated that the financing issue seems to have been resolved, Tami may have found another co-signer. The new issue is that once they pay us back they may still fall short. They are looking to change the financing with us so that they can pay back over time instead of all at once. She will be meeting with Community Loan Fund and Rensselaer County. Donald Boyajian has been working with them to go over and beyond his responsibilities. The owner of the franchise, Matt Baumgartner has not been interested in assisting. Monica Kurzejeski questioned how paying back over time will help her open her doors and continue to run. She will end up incurring bigger debt and not getting additional funds. Bill Dunne spoke about additional work that still has to be done. The Chairman questioned if the issue with the back wall was something that could have been looked at or resolved in the beginning. The Chairman noted that no action was required for this project at this time. 4. The Chairman wanted to note that The Troy Local Development Authority was officially tax exempt. He wanted to point out that because we were tax exempt we can offer the same tax benefits of the IDA. The people would then become agents of the IDA. The Chairman also wanted to note that the IDA and LDC will be working closely on future projects. Andrew Torres asked if we had an update from the ABO about the compliance review. Bill Dunne noted that they are still working on going through the records and would be in later today. The Chairman advised the board that the next meeting would be April 12, 2013. Bill Dunne made a motion to adjourn the meeting. Andy Ross seconded the motion, motion carried. The Board adjourned the meeting at 9:45.

Agenda

Wallace Altes, Chairman Bill Dunne Andrew Ross, Vice Chairman Ken Zalewski Andrew Torres, Ph.D. TROY LOCAL DEVELOPMENT CORPORATION Board of Directors Meeting Planning Department Conference Room City Hall 433 River Street, Suite 5001 Troy, New York 12180 March 8, 2013 8:30 a.m. AGENDA I. Approval of the Minutes from the February 8, 2013 meeting. II. New Business 1. Discussion of future In Reim Property 2. Rare Form Brewery – Authorization of Loan Term Sheet 3. Upcoming Projects –The Ruck, The Ale House and Indigo Salon III. Old Business 1. Finance Report 2. Tax Exempt Status of TLDC 3. Bomber’s update 4. King Fuel’s site and tenants 5. Leonard Hospital TROY LOCAL DEVELOPMENT CORPORATION Board of Directors Meeting Minutes February 8, 2013 8:30 a.m. BOARD MEMBERS PRESENT: Wallace Altes, Chair, Bill Dunne, Andrew Ross, Ken Zalewski ABSENT: Andrew Torres, Ph.D. ALSO IN ATTENDANCE: Mayor Lou Rosamilia, Dep. Mayor Pete Ryan, Justin Miller, Esq., Ashley Parslow and Kevin Mullen Minutes Wallace Altes called the meeting to order at 8:30 a.m. and advised that they will be meeting as a committee of the whole. I. Review of minutes from the January 11, 2013 meeting. The board reviewed the minutes and made a motion to approve. Ken Zalewski made the motion to approve the minutes. Andrew Ross seconded the motion, motion carried. II. New Business 1. IRS 501c Status- Justin Miller gave an overview of what the change in status means for the TLDC. Justin explained that the change from 507b to 509a changes the LDC from a private foundation to a public charity. This will allow the LDC to accept donations, specifically of land, that can be claimed as charitable donations. Ken Zalewski asked if we had to pass a resolution? Justin advised that they applied for this status last year and it is coming through now. 2. Budget and Finance Report-Joe Mazzariello and Selena Skiba presented to the board the current financials for the TLDC. Joe mentioned that there would be approximately $96,000 coming in from Main Street grants. He is also currently reviewing the Section 108 HUD loan. Joe mentioned that Old World Provisions emailed a proposal of a plan to bring their account current and revise how future payments are made. Currently they are making payments that are interest only and nothing is being applied to the principle. Monica Kurzejeski said he has been in contact with them to discuss options. Both Joe and Monica agreed that the proposal was not accepted, but are going to continue to work with them to come up with a plan that works for all. Selena questioned if there was a date for the closing for 88 King Street. Bill explained that the sale of that parcel is tied to the Leonard Hospital sale and both are waiting for the next steps. The Chairman asked when the audit process would be started. Joe advised that they will be coming in March and will have a presentation set for April. The Chairman asked for a motion to move into executive session in order to discuss financial matters of the TLDC tenants as well as negotiations of current projects. Ken Zalewski made a motion to move to executive session. Andy Ross seconded the motion, motion carried. The Board returned from executive session, with no actions taken. 3. Rare Form Brewery-Kevin Mullen of Craft Brewing gave a presentation of his plan to open a taproom at the corner of Third Street and Division Street and what drew him to Troy, NY. He mentioned that the brewing would be done offsite. They are asking for assistance in the amount of $20,000. Kevin mentioned to the board that he will be working with local establishments to see about carrying his product. The board questioned parking for that location. Kevin said that he has a good relationship with the Redfront and may be able to use their lot in addition to the street parking. Andy Ross wanted to disclose to the board that he will be renting space to Kevin for the brewing. The Chairman asked if there were any additional questions from the board and asked if they wanted to make a motion to authorize negotiations. Ken Zalewski made a motion to authorize negotiations. Bill Dunne seconded the motion. Andy Ross abstained, motion carried. Indigo Salon-Monica wanted to introduce the board to a project that is in the works with Indigo Salon. They are currently on River Street, but are out growing their space. She explained that they recently bought a historical building on Second Street and are getting a 50/50 Façade grant. MediMobile-Monica presented to the board a project that would assist in purchasing additional vehicles used as medical transports for Vets. The Chairman wanted to note that it seems like a great program, but is outside of the realm of assistance that the TLDC can offer. Marketing Money-Monica presented to the board a plan to budget $20,000 for the creation of marketing brochures and promotional materials that could be used to help advertise the City. Ken Zalewski raised the question why the LDC would fund this and not the City. Monica advised because the budget has already been adopted for this year, there would not be any funds available. But maybe in the future that is something that they can add in. Justin also stated that the LDC is a supporting agency to the City. The Mayor agreed that the LDC is an arm of the City, but they are their own entity. The LDC is a tool to market the City. Ken Zalewski supported the idea of the City sharing the burden. 3. Economic Development Program-Monica discussed coming up with a future plan for funds to be used and how to get additional funds. She mentioned the Troy Redevelopment Fund as a possible matching source. Bill advised the board that the sale of the former Leonard Hospital building was passed by City Council and wanted to see if funds should be set aside at this time to evaluate the building and site. The Chairman agreed and asked if there was a motion to set aside $25,000. Ken Zalewski made the motion to set aside $25,000 in funds. Andy Ross seconded the motion, motion carried. The Chairman advised that they would be moving into the Governance committee portion of the meeting. Governance Committee The board had a discussion on the current By-laws and changes that were made in 2010. Justin Miller gave some history on how the changes came about. He explained that the By-laws were updated in 2010. Since the update, there was a portion of the By-law that speaks about board members not being able to hold the position of CEO. This portion was repealed, allowing board members to be CEO with the restriction that they cannot participate in discussions of salary or time and attendance related to their position. It came to the attention of the board during the ABO compliance review that these new revisions had not been updated to the current By-laws. Wally asked the board if there were any questions about updating the By-laws to allow for a board member to serve as Executive Director. There were no questions by the board. Bill Dunne made a motion to accept the changes to the By- laws dated February 8, 2013. Ken Zalewski seconded the motion, motion carried. The Chairman asked that they close the Governance Committee portion of the meeting. Ken Zalewski made a motion to close the Governance Committee portion of the meeting. Andy Ross seconded the motion, motion carried. The regular Board reconvened to discuss the changes to the By-laws that were reviewed by the Governance Committee. Ken Zalewski made a motion to accept the changes to the by- laws to allow a board member to serve as Executive Director. Andy Ross seconded the motion. Bill Dunne abstained, motion carried. The Mayor asked if the board needs to re-appoint someone to Executive Director. Andy Ross made a motion for Bill Dunne to be Executive Director of the TLDC. Ken Zalewski seconded the motion, Bill Dunne abstained, motion carried. Mayor Lou Rosamila questioned whether or not Joe Mazzariello, the City Comptroller, can be the CFO according to these changes or should they be updated to mirror the IDA. Ken Zalewski felt the wording should be left as it is. Justin reviewed with the board the section of the IDA By-laws that discusses the position of treasurer. Andy Torres questioned if his time is able to be charged back to the City. Joe Mazzariello explained that only with the IDA, not with the LDC. Justin clarified that Joe can be a member of the Board, it is the boards responsibility to decide how it should be worded. Ashley Parslow explained that one of the main reasons for the change was to keep the management and staff separate. The Chairman suggested that they take additional time to review the changes and discuss them more at the next meeting. Justin Miller will circulate a new copy of the By-laws with the changes for everyone to look over. They need to decide whether to keep the wording as it is or change the wording to be more specific regarding position of Chief Financial Officer. Andy Ross made a motion to table any proposed changes. Ken Zalewski seconded the motion, Bill Dunne abstained, motion carried. III. Adjournment Bill Dunne made a motion to adjourn the meeting. Andy Ross seconded the motion, motion carried. The Board adjourned the meeting at 9:30.

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