Troy Local Development Corporation
Regular MeetingTroy, NY · September 12, 2014
Minutes
TROY LOCAL DEVELOPMENT CORPORATION
Board of Director
Meeting Minutes
September 12, 2014
8:30 a.m.
BOARD MEMBERS PRESENT: Kevin O’Bryan, Bill Dunne, Dep. Mayor Pete Ryan
and Hon. Ken Zalewski
ABSENT: Andy Ross
ALSO IN ATTENDANCE: Kathleen Tesnakis, Ken Crowe, Tom Rossi, Sharon
Martin, Laban Coblentz, Justin Miller Esq., Monica Kurzejeski, Selena Skiba, and
Denee Zeigler
Minutes
Bill Dunne introduces Kevin O’Bryan to the board members. Mr. O’Bryan was appointed
by the Mayor as the Chairman for this board.
Bill Dunne made a motion to approve the appointment of
Kevin O’Bryan as the Chairman of the Troy LDC.
Dep. Mayor Pete Ryan seconded the motion, motion carried.
The Chairman advised the minutes will be reviewed at the end of the meeting.
I. Consultant Proposals
Mr. Dunne spoke about the consultant proposals received back. He
suggested they wait until next month to discuss in order for the new
Chairman has time to review. The consultants are aware of the date change.
II. Mt. Ida Grant Program
Mr. Dunne spoke to the board about the grant program started by the
fraternity Phi Sigma Kappa to benefit the residents in the Mt. Ida
neighborhood. They have approached the LDC for additional funding for the
project. Mr. Dunne advised eight projects have received funding to date.
Ken Zalewski spoke about the success of the project so far in that
neighborhood. Mr. Dunne noted that the board had previously agreed that
this was a good project to contribute to, but are waiting to hear back from RPI
about their contributions.
III. Marvin Neitzel Building
Mr. Dunne spoke to the board about the current status of Vecino Group’s
project at 444 River Street. Mr. Dunne advised that they are in their second
six month extension of the LDA. Vecino Group is exploring some additional
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financing options to cover a gap created by additional renovation costs that
have come up. Mr. Dunne advised that they have proposed to do something
other than market rate in that building, but after conversations with them they
will keep to their original plan. Mr. Dunne suggested we send out an RFP for
someone to provide us with of year of maintenance. We need to hire
someone that is able to deal with a large scale building. Last year we used
Finelli construction to assist with transitioning tenants out of the building and
winterizing the building. An RFP will be sent out to three local companies;
Finelli Construction, Duncan and Cahill and Upstate Construction. Mr. Dunne
asked if there were any other companies that the board felt should be added
in. Mr. Zalewski asked if we would be responsible to paying for this. Justin
Miller advised yes. We still own the building at this point. Vecino Group has
an agreement with us with an option to buy, but there has been no closing
yet. Mr. Miller advised that if there were other developers interested, we
could change ownership in time for them to do the winter maintenance.
Mr. Zalewski asked if the project is definitely happening. Mr. Dunne advised
that at this point they are still planning on moving forward but have come up
with some other options that would create housing for lower AMI apartments.
Mr. Dunne advised them that the board did not want to go that route. Mr.
Miller explained that their other property on River Street moved along quicker
due to additional credits they received for low housing. There have been
other interested parties in 444 River Street that we haven’t acted on due to
the LDA, but it may be something we can explore if needed. It will be
something that we will have to wait and see what happens. Mr. Miller
explained that if someone new came into the picture it would take them
another year before they would be ready to move forward. Mr. Zalewski
asked if there are any other credits available besides low income tax credits
that would help them close their funding gap. Mr. Dunne advised they have
been looking for another investor. Mr. Dunne advised that we have a signed
agreement with them until the end of this year that they don’t want to
abandon the work done so far. Once their other project is completed it may
help them to secure some additional funding. Mr. Zalewski asked about the
percentage of market rate for 444 River Street. Mr. Dunne advised the
current agreement is for 100% market rate. The board had a general
discussion on what would happen if they came to us with a different
percentage of market rate buildings. Monica Kurzejeski added that we do
need to be aware of the type of housing we make available and balance it
with future projects in that area of the City.
Hon. Ken Zalewski made a motion to approve sending out an
RFP for a maintenance contract for 444 River Street.
Dep. Mayor Pete Ryan seconded the motion, motion carried.
IV. Call Center
Monica Kurzejeski spoke to the board about a statewide RFP come through
for a 30,000 square foot call center. Mrs. Kurzejeski advised that part of the
RFP is creating job incentive package. Mrs. Kurzejeski asked the board to
consider some options and incentives we may be able to offer. The chairman
asked that the board do some brainstorming at the next meeting. Mrs.
Kurzejeski advised that she will do that and mentioned that it is a national
company that will create about 125 new jobs.
V. Ekologic BDAP Loan
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Mrs. Kurzejeski introduced Kathleen Tesnakis to the board and explained that
she has been in Troy for about 11 years. She operates her business as a
zero waste company and currently has a store located on Fulton Street in
Troy. Mrs. Tesnakis handed out a packet to the board members and spoke
about the background of her company. She advised that her company does
many juried art shows all over the country to sustain her company. Last year
was the first year she participated in The Grand Central Holiday Market. It is
one of the biggest opportunities for any artist to showcase and sell their work.
Mrs. Tesnakis went through the packet and spoke about her business
projections from last year noting that they hit all of their numbers. Mrs.
Tenakis advised that she already has a portion of the $15,000 application fee,
but is asking for the $10,000 funds to refresh and replenish her supplies.
Mrs. Kurzejeski asked about the process of creating her designs. Mrs.
Tesnakis advised that the products are old garments that are cleaned of any
chemicals and re-collaged. Mrs. Tesnakis advised that she has been able to
create a couple of jobs since opening up her store in Troy. They are happy to
be able to work closer to home instead of commuting to NYC. Mrs. Tesnakis
spoke about some of the recognition she has received and most recently was
one of five artists featured in American Craft magazine. Ken Zalewski asked
about the weekly payroll section of her report. Mrs. Tesnakis advised that
she did she did increase the number of employees. She also noted that she
has had a substantial increase in her rent since being in her new location and
has had no problem with that. Mr. O’Bryan asked about her other investors.
Mrs. Tesnakis spoke about her angel investors that she worked with last year
when this opportunity was presented to her. Laban Coblentz spoke on behalf
of her project and the work they did last year to raise the funds in such a
short amount of time. Mr. Rayn asked about any other plans for further
expansion or other reclaimable products that she can work with besides
cashmere. Mrs. Tesnakis advised there are other avenues she is exploring.
She is very well known for her cashmere and that is important for her to
continue with. She has explained that she is expanding the website to
include a function where people can purchase directly online. If profitabliy
increases, other areas may open up.
Hon. Ken Zalewski made a motion to approve the BDAP loan
in the amount of $10,000 for Elologik, Inc.
Dep. Mayor Pete Ryan seconded the motion, motion carried.
VI. Tom Rossi 50/50 Façade Grant
Mrs. Kurzejeski introduced Tom Rossi’s project to the board. She advised
that he recently finished renovating Nelick’s on River Street. He is applying
for a façade improvement grant for 147 4th Street which was on the agenda a
few months ago but has some historic district approvals to get before he
could move forward with the project. Tom Rossi spoke to the board about his
project and explained some of the updates that will be taking place after
meeting with the historic committee. Mr. Rossi passed around a drawing of
what the storefront will look like. Mr. Dunne spoke about some of process
that they have gone through with the historic review committee. Mr. Zalewski
asked if he was looking for $5,000. Mrs. Kurzejeski advised yes he is
applying for our façade improvement grant. Mr. Rossi also spoke briefly
about all of the work done on the inside.
Dep. Mayor Pete Ryan made the motion to approve the 50/50
Façade Improvement grant for Tom Rossi in the amount of
$5,000.
Hon. Ken Zalewski seconded the motion, motion carried.
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VII. MKC Kitchens
Monica Kurzejeski spoke to the board members about the application for
MKC Kitchens at 346 Congrees Street. She noted that there are several
facades being fixed up in this area. It is a great example of what happens
when the City replaces the infrastructure then the tenants start fixing up the
exteriors. Mrs. Kurzejeski spoke to the board about the company and
explained that they are looking to replace and repair the façade of their
building. Mr. Ryan also praised the transformation that happened on
Congress Street. Mrs. Kurzejeski also noted that a transformation is starting
to take place on the residential side of the street. The chairman asked about
the project in the old Thorny’s. Mrs. Kurzejeski spoke about the businesses
that will be going into that location. Mr. Dunne noted that this company has
been a Troy business for many years.
Hon. Ken Zalewski made a motion to approve the 50/50
Façade Improvement grant for MKC Kitchens at 346 Congress
Street.
Dep. Mayor Pete Ryan seconded the motion, motion carried.
VIII. Utility Vehicle
Mr. Dunne advised this item will have to wait for next month’s meeting.
IX. Laban Coblentz and Center of Gravity
Laban Coblentz gave an update to the board members on the current
services he is providing to the LDC. He focused on the three main areas of
his contract; the renovation of the Quackenbush building, compilation of
shared business services and Fundraising. He spoke about their plan to
essentially make Troy a small business incubator City that any small
business can utilize in Troy and it will make scalable as the company grows.
Mr. Coblentz advised that the work on the Quackenbush building is underway
and has been a lot harder than expected. The staircase will be kept intact
and the space will not be fully rentable until December. Mr. Coblentz advised
that he is not quite happy with the sales and marketing aspect but will be
working on a couple of additional leads. Mr. Coblentz explained he would like
to bring in a company that will help represent artists and the business aspect
of it. He advised the partnership with HVCC and Start Up NY is also moving
forward. Mrs. Kurzejeski added that downtown Troy will become a Start Up
NY area and reach across to Green Island/Watervliet with the addition of
EOC. Mr. Coblentz noted that there are so many positive influences that it’s
hard to say which one has been the best. There are many groups and
organizations in Troy and the surrounding areas that want to be a part of the
Center of Gravity in some way. There are enormous opportunities that we
are not able to capitalize on yet, such as the area of education. Fundraising
is moving along. New sidewalks are needed in front of the building. We
would like to set up a fundraiser to buy squares around the building. Other
cities are looking to replicate what we have done in Troy. Mr. Coblentz
advised a study the creative economy study of capital region will have a
significant impact of the Capital Region. Mr. Ryan inquired if he was referring
to the Auburn Study. Mr. Coblentz advised yes. The creative sector is #2 on
the list, Medical is #1. They are trying to characterize what is unique about a
region. Our area was characterized by the way technology and the arts come
together. Mr. Coblentz has had conversations with people that have noticed
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for the first time, people want to come to this area. He advised that we need
to market ourselves better. Mr. Coblentz gave a brief summary of some other
projects in the works with Center of Gravity.
X. Financials
Selena Skiba spoke about the current financials. They are looking into
insurance for the directors. Currently, they are under the City but will look
into adding the board members on as a rider.
Mrs. Skiba noted a change to the operating statement format that now shows
a comparison of previous years. No other noteworthy changes. Mrs. Skiba
explained the professional services listed for the King Fuels site. Net income
hasn’t changed much. Grants are highlighted in yellow are approved and
waiting for paperwork for reimbursement. Mrs. Skiba advised the last page is
the accounts receivable section that indicates current loans. Details were
added in the notes section to indicate if they have paid since the end of the
previous month.
XI. Executive Session
Bill Dunne made a motion to enter into executive session to
discuss pending litigation.
Hon. Ken Zalewski seconded the motion, motion carried.
Bill Dunne made a motion to adjourn executive session.
Hon. Ken Zalewski seconded the motion, motion carried.
The board returned from executive session with no action taken.
XII. Minutes
The board reviewed the minutes from the August 8, 2014 board meeting with
no changes or updates needed.
Hon. Ken Zalewski made a motion to accept the minutes from
the August 8, 2014 board meeting.
Bill Dunne seconded the motion, motion carried.
XIII. Adjournment
The meeting was adjourned at 10:00 a.m.
Hon. Ken Zalewski made a motion to adjourn the meeting.
Bill Dunne seconded the motion, motion carried.
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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
September 12, 2014
8:30 a.m.
AGENDA
I. Approval of the Minutes from the August 8, 2014 meeting
II. Introduction of new board member, Kevin O’Bryan
III. Update on Consultant Proposals (Bill)
IV. Update on Mt. Ida Grant Program (Bill)
V. Update on Neitzel building (Bill)
VI. Update on 30,000 sqft call center
VII. BDAP loan application (Monica/Bill)
ekolgic, Kathleen Tesnakis (Monica)
VIII. 50/50 Façade grant application (Monica/Bill)
• Tom Rossi, 149 4th Street
• MKC Kitchens, 346 Congress Street
IX. Proposals for utility vehicle
X. Budget and Financials (Selena/Joe)
XI. Executive Session (Bill)
XII. Adjournment
TROY LOCAL DEVELOPMENT CORPORATION
Board of Director
Meeting Minutes
August 8, 2014
8:35 a.m.
BOARD MEMBERS PRESENT: Bill Dunne, Dep. Mayor Pete Ryan, Hon. Ken
Zalewski and Andy Ross
ABSENT:
ALSO IN ATTENDANCE: Jeff Buell, Ken Crowe, Justin Miller Esq., Monica
Kurzejeski, Joe Mazzariello, 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 8:30 a.m.
I. Approval of Minutes from July 11, 2014 regular board meeting.
Dep. Mayor Pete Ryan made the motion to approve the
minutes.
Ken Zalewski seconded the motion, motion carried.
II. Consultant Proposals
Bill Dunne spoke to the board about the proposals received in June regarding
the redevelopment of the LDC owned properties in South Troy. Proposals
were received from three firms. Mr. Dunne explained he met with the Capital
District planning commission recently and spoke about possible federal
economic development agency funds that could assist with this process. Mr.
Dunne also noted there are infrastructure funds available that may be useful
for the second phase of the project. Monica Kurzejeski added that
applications will be submitted later this year for consideration in the spring.
Mr. Dunne discussed some of the demographic requirements that they use
for eligibility and may be in the form of a 50/50 grant.
Mr. Dunne gave a brief outline of the three proposals received, noting they
range in cost from low to high. He added that of the three, ELAN has done a
lot of work with us in the past at this site. Andy Ross added that at one point
he sat on the planning board for the Town of Brunswick and spoke about his
experiences working with Clough Harbour. Mr. Ross added that the
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proposals were very similar and suggested that we consider what they are
offering and who will be involved with the project before we move forward.
Mr. Dunne noted each of them have worked or will be working on city projects
at one point. Ken Zalewski agreed that all three proposals seemed similar
except for the cost and was not sure how to compare them otherwise. Mr.
Zalewski suggested speaking to other cities and towns that they have worked
with. Mr. Dunne advised we can ask for deliverables/references. The board
had a general discussion on the process. Mrs. Kurzejeski suggested that we
also check with the firm doing the comprehensive plan to see if they have any
input. Pete Ryan agreed that they should ask for deliverables, but added that
ELAN would be his choice. Mr. Dunne advised that based on comments we
can narrow it down to two and discuss the deliverables and references at the
next meeting.
III. Mt. Ida Grant Program
Mr. Dunne spoke about the Mr. Ida grant program discussed previously. In a
past meeting, the board was eager to assist but wanted to see how the first
round went and see if RPI would be giving some additional assistance. Mr.
Zalewski spoke about the grant progress to date. One of the projects at the
cemetery has been completed beginning to end and was a great success.
Homeowner’s have also done work. Mrs. Kurzejeski spoke about previous
concerns from the board about the success of the program before we
contributed. Mr. Dunne advised that there have been about six or seven
grants given out and there is a notable difference in that section of the City.
Mr. Zalewski noted that he really wanted to see RPI get involved in the
project. Mrs. Kurzejeski agreed that RPI and its students are significant
players in that area. Mr. Dunne will follow up with RPI.
IV. 405 River Street BDAP Application
Mr. Dunne advised that the BDAP application received for 405 River Street
has been tabled pending the receipt of additional information.
V. 50/50 Façade Improvement grant, 147 4th Street
Mr. Dunne introduced Jeff Buell to the board to discuss the project at 147 4th
Street. Jeff Buell spoke about the conditions of 147 4th Street prior to Michael
Romig and Rashdie Chowdhury purchasing it. Mr. Buell explained it was one
of the City owned buildings set to be demolished. They have invested a lot
into stabilizing the building and will be having their closing next week to
continue working on the building. They are asking for assistance with the
façade to the commercial space on the first floor and both of the owners will
be living in the building. Mrs. Kurzejeski asked what kind of retail shop will be
there. Mr. Buell explained that it will be a book store with other items and
maybe add in a wine component called The Superior Merchandise Company.
Pete Ryan asked if the structural issue with the garage was fixed. Mr. Buell
advised no, but will be addressed at another time. Mr. Buell spoke about the
project in general. Mr. Ryan was glad to see this building saved from
demolition and turned around into a success. With the work continuing in this
area, it will be quite a turnaround in the next 12-18 months in that area. Mrs.
Kurzejeski asked about the owner of the third building in that group. Mr. Buell
was not sure.
Mr. Dunne added that he would like to see the parking lot next to the cab
stand cleaned up. Mrs. Kurzejeski suggested that the cabs can be located
downtown but can’t be staged; it takes up a lot of on street parking. The
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board had a general discussion of ways to clean up that section of
Congress/Ferry.
Joe Mazzariello advised that we would need to appropriate funds. Mr. Dunne
asked if $5,000 more would cover this grant or should we put in additional
funds. Mrs. Kurzejeski advised that there are a couple of other places that
were asking about the grant. Mr. Dunne suggested $25,000 be added into
the façade grant program.
Dep. Mayor Pete Ryan made a motion to appropriate $25,000
to the façade improvement grant program fund.
Andy Ross seconded the motion, motion carried.
Andy Ross made a motion to approve the 50/50 Façade
Improvement grant in the amount of $5,000 to Mike Romig for
work at 147 4th Street.
Hon. Ken Zalewski seconded the motion, motion carried.
Andy Ross asked about the timeframe of the project. Mr. Buell stated that if
the loan closes in the next week, it should be completed in about four
months.
VI. Financials
Joe Mazzariello presented the financials to the board members. Mr.
Mazzariello spoke about the balances of accounts, loans and income and
current liabilities. Mr. Mazzariello advised that we are not able to refinance
the HUD Section 108 loan. Mr. Dunne spoke about the history of this loan
and advised that as we continue to make payments, it is not going to be long
before the funds are gone. Mr. Mazzariello suggested doing a cash flow for
the next 18 months. Mr. Dunne suggested doing it for 48 months. There
should be some funds coming in from the Neitzel building and work being
done at the King Fuels site. Mr. Dunne noted that there may be some
responsibility of the City to assist in repaying the loan. Mr. Mazzariello is
concerned that we may get some criticism about the way we have been
paying this loan back. Mr. Zalewski noted that there is no guarantee that we
will continue to get CGBG funds. Mr. Dunne questioned whether or not that
is a real possibility. Mr. Mazzariello advised we may need to draw some
funding from elsewhere to help pay down. He noted there is about $1.9
Million left. Mr. Miller advised that it started at about $3 Million. Mr.
Mazzariello also noted that there is about $54,000 left in BEDI funds.
Mr. Mazzariello discussed some of the loan receivables. One of the loans is
paying, but paying late. Mr. Dunne asked if he is current for his other City
bills. Mr. Mazzariello will look into. Mr. Ross asked if names and addresses
can be added to the business name. Mr. Mazzariello advised he will make
the changes and summarized the other items listed on the financial sheet.
Mr. Ross asked about insurance on the properties. Mr. Mazzariello advised
all of our properties have insurance.
Mrs. Kurzejeski asked if two marketing requests could be added to the
budget. Deb Lockrow did a Sundays in Troy brochure and wanted to know if
we could contribute $100 towards the printing of the fliers. Mr. Dunne noted
that we set aside marketing funds in the budget. Mr. Zalewski asked if the
BID is also contributing to the printing of the brochures. Mrs. Kurzejeski
advised they are contributing $100. Mr. Zalewski asked if the LDC logo can
be added to the next printing. Mrs. Kurzejeski advised that there is also an
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opportunity from the Business Review to be part of a publication that
highlights transformational projects within the City. Mr. Dunne asked about
the cost of the transformation article. Mrs. Kurzejeski noted it is $3,000 for a
full page color ad that highlights some of the transformative projects that have
happened in the City recently. Mr. Zalewski asked if we have to design it.
Mrs. Kurzejeski advised that we supply them with some photos and they will
create the ad. She added that the main topic is 50 projects that are
reshaping the Capital District. This is a way to show the diversity of Troy.
Andy Ross made the motion to approve the expenditure of
advertising costs up to $3,150.00.
Hon. Ken Zalewski seconded the motion, motion carried.
Mr. Mazzariello questioned the three loans that we are getting ready to close
on. Justin Miller advised that 3t Architects will be having their closing soon
and we were still working out a couple of details for the Apprenda loan. Mr.
Dunne noted that we are all set for the Apprenda loan to move forward.
Mr. Mazzariello noted that the budget has to be done by November 1st. Mr.
Miller advised that we work on it during the September meeting and approve
in October.
Hon. Ken Zalewski made the motion to approve the amended
financials.
Andy Ross seconded the motion, motion carried.
VII. Executive Session
Mr. Dunne asked for a motion to move to executive session to discuss
pending litigation.
Andy Ross made a motion to move to executive session to
discuss pending litigation.
Hon. Ken Zalewski 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.
VIII. Adjournment
The meeting was adjourned at 10:00 a.m.
Hon. Ken Zalewski made a motion to adjourn the meeting.
Andy Ross seconded the motion, motion carried.
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Troy Local Development Corporation
50/50 Façade Improvement Program
Application for Funding Assistance
Applicant:
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Building Address ______________________________________________________
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Telephone ____________________ Email ¬®±--·à®»¼¾«®²¼»ªò½±³
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Is the applicant the owner? ______
Owner Name ______________________________________________________________
Owner Address ____________________________________________________________
Building Information:
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Type of Construction: ______
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Number of Floors: __________ ì Yes ______ No
Basement: ______
Building Square Footage: ëìðð
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Existing conditions of the building:
Front Façade: ______ Excellent ______ Good ______ Fair ______È Poor ______È At Risk
Side Wall(s): ______ Excellent ______ Good ______ Fair ______ Poor ______ At Risk
Rear Wall: ______ Excellent ______ Good ______ Fair ______ Poor ______ At Risk
Roof: ______ Excellent ______ Good ______ Fair ______ Poor ______ At Risk
Other: ______ Excellent ______ Good ______ Fair ______È Poor ______ At Risk
Occupancy Information:
Building is vacant: ______ Yes ì
______ No
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# of commercial units in the building: _________
List all existing businesses at this address or any business proposed to occupy the building:
# Of Years at # Of Years at
Business Name Owner Name & Address Current Previous Address
Address
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# of residential units in the building: ________
Schedule of Work:
ì Contract ______ Self-Help ______ Combination
Proposed Method of Work: ______
Date work can begin by: ßÍßÐ
Date work must be completed by: èñïñïì
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Do you anticipate a need for architect design services? ______ ì No
Do you anticipate a need for contractor design services? ______ Yes
ì ______ No
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Total Project Cost: ________________ üëððð
Grant Request: _______________
Describe any recent improvements you have made to the building, if any:
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Provide a brief summary of all proposed activities:
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Additional Information:
Are you or any other owner of the property a City of Troy employee? _____Yes ì
______No
Have you ever received grant money for this project? ______ Yes ì
______ No
If yes, please describe:
______________________________________________________________________________________
______________________________________________________________________________________
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____
5/10/14
Signature______________________________Date_______________________
The Troy Development Corporation certifies that it will comply with all Federal statutes and regulations that
prohibit discrimination on the basis of race, color, national origin, religion, sex, handicap, age, or any other
nondiscrimination statute(s), which may apply to the applicant.
Revised 06/20/13
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