Troy Local Development Corporation

TROY LOCAL DEVELOPMENT CORPORATION Board of Directors Meeting Minutes April 12, 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, Justin Miller Esq., Monica Kurzejeski, Laban Coblentz, Jeff Buell, Chris Cowell, Selena Skiba, Ashley Parslow and Denee Zeigler Minutes Wallace Altes called the meeting to order at 8:30 a.m. I. Laban Coblentz led a discussion about his project, The Center of Gravity. He talked about the history of maker’s spaces and the impact they have had on each city they have set up in. He explained that the Center of Gravity is focused more on technology. He mentioned the product, The Square, being the product of a maker’s space. Andrew Torres commented on a similar type project that is currently being done at GE. Wallace asked Mr. Coblentz to expand on his statement he made about the growth of a maker’s space. Laban Coblentz explained that there is such a need for this type of space that once one is made available to people, they quickly expand and need to move to bigger spaces or open up new locations. Tech Stop was given as an example. They currently have seven franchises and are planning to open more. He explained that he could not be happier with the way his space is growing already. His focus will be to harness this growth. The opening is tentatively scheduled for April 26th. Mr. Coblentz talked about funding they have been able to secure up to this point and that he is asking the board to make a commitment of $47,000.00. Mr. Coblentz expects quick growth after the ribbon cutting and will use the funding to assist the new members and keep up with their needs. Mr. Coblentz also spoke about possibly expanding into The Quackenbush building. Financing was made available through the Rensselaer County IDA, but he would like to include funding from the City in an attempt to form a collaboration between the two. The Chairman questioned if he would be using the whole building? Laban Coblentz responded that he wants to keep David Bryce as the landlord and make the first floor retail, the second floor could be Cornerstone or other office space and The Center of Gravity would occupy the top two floors. Ken Zalewski asked if they have 3D printing capabilities. Mr. Coblentz explained that they have a maker replicator already in use as well as a laser scanner. This evening will be the first class 1  to show people how to use the 3D printer. The class has generated a lot of interest. Andrew Torres asked about on site management of the facility and staffing. Mr. Coblentz advised that they have some staff in place, board members will be established at their April meeting and several members that have completed safety training. He assured the board that this project will continue without him. Andrew Torres stated that this project seems likes a strong investment. Bill Dunne shared in the enthusiasm, but was worried that when Laban Coblentz leaves at the end of August that they project may not have a very long shelf life. He advised that since Mr. Coblentz’s time here, people have been very excited about the project. Mr. Coblentz understands his concern. He explained that because he knew his time here was limited, his focus was sustainability. Mr. Coblentz also pointed out that statistically 50%-60% of the members are coming from places other than RPI. Monica Kurzejeski shared with the board that she has been to the space and talked to the surrounding businesses as well as the members. The members expressed that they are happy to have a place like this to gather and have been looking for a place like this. The Chairman clarified the amount the board was sponsoring was $47,000. Ken Zalewski also wanted to clarify if it was a grant or loan request. Laban Coblentz explained that he wanted to hear from us that we support the project and it is not just a Rensselaer County IDA project. He wants both listed to show that it is collaboration. Bill Dunne explained that it would set up with benchmark payments. Justin Miller agreed that payments should be disbursed once certain performance measures have been met. He questioned if Rensselaer County IDA paid out similarly. Mr. Coblentz explained that they paid out in three payments. The $47,000 will round out the previous $3,000 to an even $50,000. Monica Kurzejeski mentioned if you take into account the member dues and other fees, it is almost a match by the communities support. Andrew Torres asked if the board was agreeing to make the agreement or pay funds out. Bill Dunne expressed interest in making a move to begin the process of creating an agreement that outlines the dispersment. It can be ready at the next meeting. It is a strong statement that the City and County will be working together. Laban Coblentz questioned if we take the step today can he say that support is being given by the City? He explained that it is very important to him when presenting to the private sector that both county and City are listed in support. The Chairman stated that he can say that we are in support and work out the language with Justin Miller. The Chairman asked if we were ready to make a motion. Ken Zalewski made a motion to start drafting an agreement. Andrew Torres seconded the motion, motion carried. The Chairman congratulated Laban Coblentz and The Center of Gravity project. II. Review of minutes from the March 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. III. 207 Broadway, The Clark House 2  Jeff Buell went over the loan request for 207 Broadway. Justin Miller asked for financials on the building and the businesses currently there. Jeff Buell stated that all of that information will be furnished to the board for review. The recent assessment shows a value of $200,000. Engineers have been through the building and it is structurally sound. The Chairman questioned if there was a basement. Mr. Buell explained that there is a very large basement that extends to the streets. The board also discussed the condition of the walls, roof and windows of the building. Bill Dunne asked what the $100,000 would be used for. Mr. Buell advised that it would be to stabilize the building, façade and all new windows. He was aware that window replacement has to go before the Planning Commission. Monica Kurzejeski asked if the owners of the building have found anyone to occupy the first floor commercial spaces. Mr. Buell advised the board that they are currently looking for ideas, but has a good idea of what is going in the space. Bill Dunne questioned if Broadway News was going to stay. Jeff Buell advised that it would stay, but needs a facelift. He explained the project will be about $1.2 Million once completed. Ken Zalewski praised the wine bar. It has brought something different to the area. Jeff Buell added that Vic has attracted people from out of the area that want to spend more time here. Justin Miller suggested creating a loan term sheet. It should take about 60 days to get there. The Chairman asked if the board has any other questions. Andrew Ross made a motion to create a loan term sheet for 207 Broadway. Ken Zalewski seconded the motion, motion carried. IV. 9 First Street Bill Dunne gave some background on the building on 9 First Street that has been unoccupied for several years. Jeff Buell talked to the board about the current condition of the building, stating that is needs a lot of work. He introduced Chris Cowell to the board. He will be his partner on this project and is a recent graduate of RPI. Mr. Cowell advised the board that he is more of a strategic planner. Wants to try and figure out a way to retain and foster talent in the City, “Troy Think Tank” Jeff Buell explained that the 1st floor would be retail and the upper floors residential. He may also be seeking funding from NYBDC and hopes to be working on it by the summer. The Chairman questioned how many residential units there would be. Jeff Buell advised there would be six. Justin Miller spoke about the steps needed to get the process started on the boards end. They may want to set up an LDA similar to the Neitzel Building. The Chairman asked if the board was ready to take any formal action. Several board members asked to see the property first. Jeff Buell advised that there is no insurance set up, but will sign a waiver. Ken Zalewski made a motion to draft an LDA. Andrew Ross seconded the motion and asked that we put a waiver into the paperwork to allow them access to the building, motion carried. V. Property for sale on Hoosick Street and TAP Urban Initiatives Bill Dunne made the motion to move to Executive Session to discuss the proposed acquisition, sale or lease of real property. Andy Ross seconded the motion, motion carried. 3  Ken Zalewski made the motion to leave Executive Session. Bill Dunne seconded the motion, motion carried. The board returned from Executive Session with no action taken on either item. VI. TAP Warehouse District Monica Kurzejeski talked about her work with Lynn Kopka, City Council President, to start the process to add five warehouse buildings to a historic list. The response from SHPO was to add three more buildings that were involved in the collar & cuff industry. TAP has exhausted their funds and wanted to see if the LDC would have funding to do a $5,000 matching grant. Monica Kurzejeski added that both the Council President and the Mayor are supportive of this project. Justin Miller suggested drafting an funding agreement if the board was in support of the project. The Chairman asked if there were any additional questions from the board. Andrew Ross made the motion to draft an agreement in support of a $5,000 matching grant. Andrew Torres seconded the motion, motion carried. VII. Vincent Douglas 50/50 Façade Grant Application Monica Kurzejeski talked to the board about Vincent Douglas’ 50/50 Façade Grant Application for work at 3301 Sixth Avenue, The Hot Spot 2. She provided some background on the project, his work history and his other establishment in Albany. He plans on having the 1st Floor his restaurant and the other floors residential. He is aware that the corner of Glen and Sixth is a very active spot and has been in contact with and is working with many of the community groups. He plans in investing $110,000 and creating jobs. The board discussed the project and how reimbursements would be determined. Bill Dunne suggested that it can be set up similar to some of the other grants we have done in the past where the applicant is required to submit proof of payment and then we will be able to reimburse at 50%. Andrew Ross clarified with the board if it is within our scope to offer grants. Bill Dunne advised that we have done grants for funding but not a “bricks and mortar” grant. We have, however, administered the NY MainStreet Grant. Andrew Torres suggested that we set up a separate account for grant funding if we are headed in that direction. The Chairman asked Monica to set up a grant structure and budget for this for the next meeting. Andrew Ross pointed out that grant money being given out will not generate any incoming funds. Ken Zalewski asked about the 50/50 grants we had done in the past. Bill Dunne explained that they were funded through CDBG. Monica Kurzejeski wanted to structure it the same as the Main Street program that we recently completed. For that program, the owner submits receipts and proof that funds were spent for the work on the scope. Ken Zalewski expressed to the board that he did not want to become focused only on giving grants with no incoming funds. After further discussion and no decision, The Chairman decided to table the request until the next meeting where they can review the term sheet that Monica Kurzejeski will set up. VIII. Essence Loan Agreement 4  Monica Kurzejeski gave background on Essence Beauty Salon. She talked about their project and the services they will offer. They submitted an EDAP application and are looking for $12,000 to go towards equipment. Justin Miller questioned if we have set up a budget line for grants and loans. Monica Kurzejeski advised that there is a budget line for this year and we are within the amount. Andrew Ross asked if the applicant is going to be run the business end of it or work in the salon. Mrs. Kurzejeski explained that she is working on completing her business degree. Bill Dunne made a motion to set up a loan agreement for the amount of $12,000. Ken Zalewski seconded the motion, motion carried. IX. 720 6th Ave Monica Kurzejeski wanted to let the board know of a large piece of property that was recently sold, 720 6th Avenue. She has spoken to the new owners and they may be looking for some assistance to improve the outside of the property. This is a large project in a residential area. X. Old Business 1. Selena Skiba advised the board that an electronic version of the Audit & Finance report was emailed to them and a formal meeting will be presented in May. Andrew Torres suggested setting up a formal meeting due to the large number of agenda items on our regular board meetings. Justin Miller questioned if the BST audit was completed and filed on time. He advised that the audit does need to be presented and approved by the board. He suggested that we start the process in March to allow time for review. Ashley Parslow from the ABO explained to the board that the Audit & Finance Committee can meet ahead of time to discuss before the full board meets. 2. Monica Kurzejeski discussed the tenants of the Marvin Neitzel building. She advised that she is working on an end date for tenants and eviction notice for Dan Doyle. Eko-logic has found a new home already. Selena advised the board that Old World Provisions loan has been restructured to work with his periods of high cash flow. She will bring to the next board meeting for their review. Justin Miller advised the board that the board can make a formal agreement next month. XI. The Chairman thanked everyone for attending and invited the ABO to the next Audit & Finance Committee meeting. Ken Zalewski made a motion to adjourn. Andrew Ross seconded the motion, motion carried. The meeting was adjourned at 11:00 a.m. 5