Troy Local Development Corporation
Regular MeetingTroy, NY · March 28, 2014
Minutes
TROY LOCAL DEVELOPMENT CORPORATION
Board of Director
Meeting Minutes
March 28, 2014
8:30 a.m.
BOARD MEMBERS PRESENT: Bill Dunne, Dep. Mayor Pete Ryan, Andy Ross and
Hon. Ken Zalewski
ABSENT:
ALSO IN ATTENDANCE: Justin Miller Esq., Monica Kurzejeski, Selena Skiba,
Andy Piotrowski, Joe Mazzariello, Paul Getz and Denee Zeigler
Minutes
In the absence of a Chairman, the board elected Bill Dunne as temporary Chairman of
the meeting.
Hon. Ken Zalewski made a motion to elect Bill Dunne as
temporary Chairman for this meeting.
Andy Ross seconded the motion, motion carried.
Bill Dunne called the meeting to order at 8:40 a.m.
I. Approval of Minutes from March 14, 2014 board meeting
Hon. Ken Zalewski made the motion to approve the minutes.
Andy Ross seconded the motion, motion carried.
II. Audit Presentation
Bill Dunne introduced Paul Getz, a representative of SaxBST, who will be
giving a presentation on the audit. Draft copies of the financial statements
were handed out to the board members. Mr. Getz advised he will go over
some of the highlights of the report noting that the previous year’s financial
statements were audited by Bollam, Sheedy, Torani & Co. LLP which merged
with Sax Macy Fromm & Co., PC to form SaxBST LLP.
Mr. Getz explained that the independent auditor’s report that is in front of
them is very similar to the previous year, noting there is a new format. Pages
one and two describe both the responsibilities of the auditors and
management’s responsibilities for the financial statements. Mr. Getz noted
that the management’s discussion and analysis is not included in this report
due to the small size of the board, but will not impact the report. The opinion
is also included on this page.
1
Page three gives a snapshot of the assets and liabilities of the corporation as
of the end of 2013. The numbers are down from the prior year, reflecting the
economic development activities that that have taken place. Mr. Getz
mentioned that there were four loans given out in 2013 which causes the
loans receivable amount to go up for 2014. They are split into current and
long term. The accounts payable and accrued expenses shows grants that
were approved prior to year end. Deferred grant revenue related to the BEDI
payments.
Page four of the report talks about revenue from both state and federal grants
as well as rental income. Operating expenses shows an increase due to
economic development activities, operation of the Neitzel building and
professional fees during the ABO audit. Bad debts refer to two loans that
were given an allowance due to payment issues. Mr. Getz noted that we had
a significant amount in income in 2012 due to the National Grid funds. For
2013, there are net losses that reflect everything that the board has approved
throughout the year.
Mr. Getz skipped to page eight of the report that discusses loans receivable.
Page nine gives a summary of the loans for 2013 compared to 2012. The
maturity of the loans is listed further down the page, noting the payment of
two large loans in 2015. The board had a general discussion about the
loans.
Mr. Getz discussed notes four regarding investment in the King Fuels site
and Neitzel Building. Note five was also discussed the loan with the City for
$3 million. Bill Dunne asked if this loan could be refinanced. Joe Mazzariello
explained that we did try at one point, but the fees outweighed the benefits.
Mr. Dunne asked if could be bonded. Mr. Mazzariello advised that we could
look into it. The board had a general discussion on the different possible
ways to refinance which led Mr. Getz to discuss the next section about
program expense. He advised that once the bad debt was moved, it
becomes program expense. Mr. Mazzariello will work on some possible
ways to refinance and consolidate some of the items.
Mr. Dunne also advised that we need to start looking at the cost benefits of
swapping the Sperry Warehouse with the Alamo. Mr. Miller advised that we
would have to look at the mortgages for the King Fuels site as part of this
swap. Mr. Getz asked why the City has a mortgage on the King Fuels site.
Mr. Miller explained the background of the agreement. The board had a
general discussion on possible loans that may be available for that site. Andy
Ross spoke to the board about closing costs for a loan of that amount. Mr.
Dunne noted that the loans mature in 2026.
Mr. Getz continued with a discussion of note six regarding rental income and
risk associated with King Fuels site. The rental income describes the Neitzel
property. Notes 6b of the report talks about risk at the King Fuels site and
note 6c talks about the consulting agreement. Note 6d discusses the loan
and grant applications. Mr. Getz wanted to note that there were several
grants and loans that have continued in early 2014. He wanted to note, that if
we keep expending funds each year for economic development, the cash will
go down significantly quicker. Mr. Miller advised that we should get some
income in during 2014 that will help.
2
Monica Kurzejeski asked about the rental income listed and noted that the
Neitzel building no longer has tenants. Mr. Getz advised that it contains
some of the business at the King Fuels site and County Waste.
Mr. Getz concluded his presentation and advised that overall it was a good
audit. Mr. Dunne asked if anyone had questions about the report.
Hon. Ken Zalewski made a motion to approve the draft copy
of the financial statements.
Andy Ross seconded the motion, motion carried.
III. Financials
Joe Mazzariello gave an overview of the financials as of March 14, 2014 and
handed out copies to the board members. Mr. Mazzariello spoke about some
adjustments that will take place based on the audit that was recently
completed. He gave a summary of the finances.
Mr. Mazzariello questioned the security deposit for the purchase of 9 First
Street. Mr. Miller advised that their closing may end up going into April.
He wanted to note that the expenses are higher than the income. Mr. Ryan
asked about the rent for South Troy properties. Mr. Mazzariello explained
that they are for Waste Connections and eLot. Mr. Mazzariello advised that
on the last page there is an analysis on the loans. Mr. Mazzariello asked the
board if we should keep the loan for Essence on the books. Mr. Miller
advised that they have not been able to locate her in order to serve the
papers.
Mr. Mazzariello noted that we have rent concerns about Pete Marks. Mr.
Miller noted that we do have a judgment against him. Mr. Getz advised the
board that Mr. Marks did come up during the audit and it was recommended
that a bad debt be taken on him for 2013. Ken Zalewski asked if it was
included in the amount listed on the report. Mr. Getz advised yes.
Mr. Mazzariello also asked about Collarworks’ balance due. Mr. Dunne
asked Mrs. Kurzejeski to give the board an update. Mrs. Kurzejeski advised
that Collarworks will be moving into Kevin Blodgett’s building. They are just
waiting to get the final okay from Code Enforcement. Mrs. Kurzejeski advised
that due to the fact that they have not been able to use the space, due to an
issue with the sprinkler system, they may want to consider waiving the
amount.
Mr. Mazzariello mentioned some ongoing issues with Old World Provisions
and eLot. Mr. Miller advised he has some updates and asked if they could
move to executive session to discuss financial matters.
Bill Dunne made a motion to move to executive session to
discuss financial matters of the tenant.
Hon. Ken Zalewski seconded the motion, motion carried.
Andy Ross made the motion to adjourn executive session.
Hon. Ken Zalewski seconded the motion, motion carried.
3
The board returned from executive session with no action taken.
IV. Adjournment
Dep. Mayor Pete Ryan made a motion to adjourn the meeting.
Hon. Ken Zalewski seconded the motion, motion carried.
The meeting was adjourned at 9:35 a.m.
4
Agenda
Andrew Ross, Vice Chairman Ken Zalewski
Bill Dunne Deputy Mayor Pete Ryan
TROY LOCAL DEVELOPMENT CORPORATION
Board of Directors Meeting
Planning Department Conference Room
City Hall
433 River Street, Suite 5001
Troy, New York 12180
March 28, 2014
8:30 a.m.
AGENDA
I. Approval of the Minutes from the March 14, 2014.
II. Presentation by Auditors
III. Financials (Selena/Joe)
IV. Adjournment
TROY LOCAL DEVELOPMENT CORPORATION
Board of Director
Meeting Minutes
March 14, 2014
8:30 a.m.
BOARD MEMBERS PRESENT: Bill Dunne, Dep. Mayor Pete Ryan, Andy Ross and
Hon. Ken Zalewski
ABSENT:
ALSO IN ATTENDANCE: Justin Miller Esq., Monica Kurzejeski, Selena Skiba,
Laban Coblentz, Andrew Kreshik and Denee Zeigler
Minutes
In the absence of a Chairman, the board elected Bill Dunne as temporary Chairman of
the meeting.
Hon. Ken Zalewski made a motion to elect Bill Dunne as
temporary Chairman for this meeting.
Andy Ross seconded the motion, motion carried.
Bill Dunne called the meeting to order at 8:40 a.m.
I. Approval of Minutes from February 14, 2014 board meeting
Andy Ross made the motion to approve the minutes.
Hon. Ken Zalewski seconded the motion, motion carried.
Mr. Dunne advised that the audit presentation and financials will be
postponed. A special meeting date will be set up before the end of the month
to discuss both items.
II. Board Member Vacancy
Mr. Dunne spoke to the board members about the vacancy on the board that
they will need to fill. Dep. Mayor Pete Ryan spoke about a possible
candidate, Elbert Watson. Mr. Ryan spoke to the board about his
background and a copy of his resume was given to all of the board members
to review. Bill Dunne noted that with his banking background he may be a
good person to help create or chair a loan committee.
Justin Miller explained that the previous Chairman sat on this board as a
result of being the IDA Chairman. If the vacancy is filled, the seat filled will be
shared with the IDA chairmanship. Mr. Miller also explained that this board
1
can vote in a chairman of their choosing. In that case the IDA chairman
would sit on this board. The board discussed the process. Mr. Miller advised
that the governance committee would be responsible to recommend possible
members to the board. Mr. Ryan asked if that would be something that could
be done today. Mr. Miller answered yes, but he advised them to keep in mind
that they will also serve as the IDA chairman and that is subject to council
approval. The board unanimously decided that Mr. Watson would be a good
candidate for this board and will revisit the recommendation after meeting
and discussing with the IDA board.
III. Updated Façade grant for Dublin’s
Monica spoke to the board members about the 50/50 façade grant for
Dublin’s at 121 4th Street. Initially he was approved for $4,700.00 which was
based on his original estimates. After starting the work, he incurred
additional costs and was able to meet the max reimbursement amount of
$5,000.00. He has been reimbursed the $4,700.00 and is looking for
additional reimbursement of $300.00. Bill Dunne asked how the completed
work looks. Mrs. Kurzejeski stated that it looks really nice and it changes the
whole look of the place. Mrs. Kurzejeski advised that he has also changed
the name to TAL and is hoping to bring in a whole new clientele. Mr. Ryan
wanted to note that there is a lot of positive activity in that area. The board
agreed that once the projects are completed, it will have a positive change on
the whole area.
Andy Ross made a motion to approve the additional $300.00
in funding for Dublin’s, 121 4th Street.
Hon. Ken Zalewski seconded the motion, motion carried.
IV. King Fuels site demolition plan
Bill Dunne gave an update to the board about the King Fuel site. Mr. Dunne
advised that asbestos surveys have been done on the twelve structures on
site. Out of the six buildings containing asbestos, two have been taken done
as emergency demolitions with proper permitting and air monitoring. Once
the weather gets better, abatement will begin on the four remaining buildings
that contain asbestos and then taken down with the other remaining
buildings.
Mr. Dunne noted that the five responses came back to the RFP for demolition
work at the King Fuels site; Provincial Contracting Services, Casale
Construction, Titanium Demolition, Peak Environmental and Cristo
Demolition. Casale Construction came in with the lowest bid. Mr. Dunne is
looking for the board to let the contract with them in order to get the buildings
down on the site. Andrew Kreshik advised that Alpine Environmental is
conducting the localized asbestos abatement. Mr. Dunne explained that
once the abatement is done and Casale Construction has completed there
work, there will be no structures left on site except for eLot.
Mr. Dunne advised that National Grid is looking to start work on May 1st.
Andy Ross questioned the timeframe on the Casale Contract. Mr. Dunne
advised he is ready to go as soon as permits are in place. If he is able to
start in April, he should be completed by May 1st. Mr. Kreshik advised that of
four of the buildings that are pending, have paperwork into the Department of
2
Labor for their variances. The cold weather and ice is delaying the process at
this point. Once the contract is executed, Casale Construction can start
working on some of the smaller structures that are not affected by the ice and
snow piles. Mr. Kreshik also advised that Mr. Casale will be able to move the
process along quickly and process the materials next to the King Fuels site.
Mr. Ross questioned if all paperwork and permits are in place. Mr. Kreshik
has met with Code Enforcement and they are ready to move forward. Mr.
Zalewski asked about the process of taking a building down with asbestos
and taking one down that has been abated. Mr. Kreshik spoke about the
process of removing the asbestos from the four buildings and disposing of it.
He noted some delays with Albany landfill that have limited the amount of
debris that they are able to take in. Mr. Dunne asked if there were any other
questions from the board.
Andy Ross made a motion to authorize the letting of the
contract with Casale Construction for demolition work at the
King Fuels site.
Hon. Ken Zalewski seconded the motion, motion carried.
V. King Fuels Development Plan RFP
Bill Dunne spoke to the board about the status of the King Fuels
Development RFP. A draft copy was distributed to the board members for
review and comments. Mr. Dunne advised that he would like to have a final
draft ready for the April meeting in order to get out to a consultant as soon as
possible.
Mr. Dunne asked for a motion to enter into executive session in order to
discuss real estate matters.
Hon. Ken Zalewski made a motion to enter into executive
session to discuss potential real estate matters.
Andy Ross seconded the motion, motion carried.
Hon. Ken Zalewski made a motion to adjourn executive
session.
Andy Ross seconded the motion, motion carried.
The board returned from executive session with no action taken.
VI. O’Brien’s Public House
Mr. Dunne advised the board that O’Brien’s Public House is now open and
ready for business.
VII. Center of Gravity
Mr. Dunne introduced Laban Coblentz from The Center of Gravity to the
board members for a status report. Mr. Coblentz handed out a report to the
board members and spoke in general about some upcoming projects and
their shared services. The progression is what he hoped for at this point.
Congressman Tonko’s office has gotten involved and is assisting them with a
federal grant. Mr. Coblentz has received approval from two banks for
construction loans and is in process of deciding between the two.
3
A majority of the work is focusing on construction work and going through the
projects. The county IDA has given support on the Quackenbush project and
it is moving forward. Mr. Coblentz shared with the board the process that one
of the start ups has gone through. They started with no funding and now
have a significant contract. Much of their success can be attributed to our
shared business services. They may become one of the tenants in the
Quackenbush building, if they don’t grow too quickly. Mr. Coblentz
mentioned the article that stated we have the least amount of commercial
space available and had the best rental rate in the area. The board agreed
that exciting things are happening in the City of Troy.
VIII. Adjournment
Hon. Ken Zalewski made a motion to adjourn the meeting.
Andy Ross seconded the motion, motion carried.
The meeting was adjourned at 9:37 a.m.
4
Get email alerts for Troy
A daily email when new agendas and minutes are posted.