Troy Local Development Corporation

TROY LOCAL DEVELOPMENT CORPORATION Board of Director Meeting Minutes April 22, 2016 8:30 a.m. BOARD MEMBERS PRESENT: Kevin O’Bryan, Dep. Mayor Monica Kurzejeski and Andy Ross ABSENT: ALSO IN ATTENDANCE: Justin Miller, James Lozano, Paul Goetz, Mary Ellen Flores, Jennifer LeMay, Harry Tutunjian, David Rounds, Rola Faraj, Nassib Tjaili, Deanna DalPos and Denee Zeigler Minutes The Chairman called the meeting to order at 8:30 a.m. I. Minutes The board reviewed the minutes from the March 11, 2016 board meeting. Andy Ross made a motion to approve the March 11, 2016 board meeting minutes. Dep. Mayor Monica Kurzejeski seconded the motion, motion carried. II. Façade Grant Program The Chairman spoke to the 50/50 Façade Grant applicants and advised that all of the information submitted was reviewed ahead of time. Monica Kurzejeski asked all applicants to send in their estimates as soon as they are able to. The board noted that one application was removed from the list, Daigle Cleaning Systems, Inc. The board had a general discussion with the applicants about the process. Andy Ross made a motion to approve the 50/50 Façade Grants listed below:  323 7th Ave, Jennifer LeMay  2346 15th Street, Nassib Tjaili  2334 17th Street, Rola Faraj  15-17 Second Street, Arlene Nock  191 Second Street, Arlene Nock  535 Fifth Ave, Harry Tutunjian 1   426 River Street, Troy Typewriter Store  45 2nd Street, Megan Reavey and David Linen Monica Kurzejeski seconded the motion, motion carried. III. SaxBST Audit Presentation Paul Goetz from SaxBST discussed the audit that was recently completed. He advised the first item, is a letter that is required to discuss the conduct of the audit and noted there is nothing negative to report. The other item is the representation letter. Mr. Goetz noted that this letter needs to be signed off by management. The board had a general discussion on who would be responsible for signing the management letter and agreed to have the current and past CFO sign the letter. Mr. Goetz reviewed the financial statements and advised that pages 2 & 3 present a clean opinion. He noted that as a governmental body usually requires and Management Discussion & Analysis letter, but because this is a smaller entity it is not needed. Mr. Goetz noted the statement of net position showing on page 3. He pointed out that the cash balance went down from the previous year due to significant funding of economic development activity. Mr. Goetz also noted the loans receivable section which is broken down into short and long term. The board had a general discussion on the loan program and spoke about setting lending limits going forward. Mr. Goetz discussed revenues, expenses and changes in net positions listed on page 4. He advised operating revenue is listed at the top of the page and non- operating revenue is listed at the bottom. Mr. Goetz wanted to point out the sale of 444 River Street that is listed under non-operating revenue and noted that gain offset all of the other activity done throughout the year. Mr. Goetz recommended setting up cash flows and budgeting analysis for the economic development programs going forward. The board agreed. Mr. Goetz discussed the statement of cash flow and internal controls. He noted significant activities that took place in 2015 and noted that a portion of the HUD Section 108 loan was repaid. Mr. Miller advised that the Portec loan is paid off and the King Fuels is left. Mr. Goetz advised that the transaction with the HUD loan is listed on page 9. Mr. Goetz advised that the last report in this document is the Statement of Internal Controls over financial reporting. He advised that if there were findings with internal controls and reporting, they would be in this section. The board had a general discussion on the budgeting process moving forward. Dep. Mayor Monica Kurzejeski made a motion to approve the 2015 audit as presented by SaxBST. Andy Ross seconded the motion, motion carried. IV. Spring Youth Baseball funding request 2  Monica Kurzejeski spoke about a grant request that came in for Spring Youth Baseball for $5,000 for facility improvements. She explained that a new group is running Spring Little League as of late 2015 and there are some repairs that are needed to rejuvenate it and get it up and running again. Mrs. Kurzejeski advised that they City is working to add some speed bumps around the property. Mr. Miller advised that we will need their official company name and asked for an application to be filled out. The board did not have any other questions on the project. Andy Ross made a motion to approve the grant request from Spring Youth Baseball in the amount of $5,000. Dep. Mayor Monica Kurzejeski seconded the motion, motion carried. V. Comp Plan funding request Mrs. Kurzejeski spoke to the board about the current status of the City of Troy’s Comprehensive Plan. She advised that they are nearing the end of the process and during the last few meetings with Urban Strategies it was determined that there is a funding shortage. After negotiations with them, the final amount needed is $97,000. Mrs. Kurzejeski advised that plan has been funding by the Troy Redevelopment Foundation and two grants from The Department of State. Mrs. Kurzejeski noted that this will be used as a planning document for the City over the next 10-20 years. The board had a general discussion about the process to date. Mr. Ross asked about the deliverables. Mrs. Kurzejeski spoke about the past public meetings, 3D modeling and the final draft that will be ready in June. She added that they are including policy and an implementation schedule that will help us move forward with the suggestions in the plan. The board asked if there will be additional money needed going forward. Mrs. Kurzejeski advised that this will carry us to the completion. The board asked if we will have any input on what will happen to the King Fuels parcel in South Troy. Mrs. Kurzejeski advised that the comprehensive plan is a suggestion of how to move forward, it will not change the zoning in anyway. There will be overlay policies for certain areas and hoped that the LDC will work with the vision of the City. Mr. Miller asked if there is a retainage for the final product. Mrs. Kurzejeski advised no. A final payment will be sent out once we have the final product in hand. Andy Ross made a motion to approve the funding request of $97,000 to Urban Strategies to be used for the City of Troy’s Comprehensive Plan. Dep. Mayor Monica Kurzejeski seconded the motion, motion carried. VI. PARIS report A draft copy of the PARIS report was given to the board members to review. The audit and financial statements that were discussed earlier in the meeting will be added to the report before it is uploaded to NYS. Mr. Lozano advised that there were a couple of items that we were going look into and make sure they are posted on the website. The board had some general questions about ELAN and the work done at the King Fuels site and how the information is reported. 3  Andy Ross made a motion to approve the PARIS report. Dep. Mayor Monica Kurzejeski seconded the motion, motion carried. VII. Financials Jim Lozano went over the accounts receivable and explained the new layout of this section of the financials. He advised that the four accounts listed that are the accounts that are currently late with their payments; Quackenbush, Rare Form, Infinity Café and 77 Congress Street, LLC. Mr. Lozano advised that the loans have been corrected in QuickBooks to show that they are now listed as loans, instead of a receivable. He added that it will assist with getting accurate numbers for payoff and amounts due. The chairman asked if we can see a detail of the loans at least once a quarter. Mr. Miller asked for details on a couple of the loans to see if they should be put in default. Mary Ellen Flores spoke about the current status of the loans in default. Mr. Miller advised that we should present them with letters to start the clock. Mrs. Kurzejeski asked for copies of the letters and she will hand deliver them. Mr. Lozano noted that there is a negative number listed in accounts payable which reflects the PILOT payments paid to the city. The board had a general discussion about setting up amounts and policy for doubtful accounts. The chairman advised that we set up an allowance for loan loss of 10% of the portfolio. Mr. Lozano went through the profit and loss section of the financials. He advised that there is a $33,000 deficit showing due to two major expenses; Fischer Associates for the downtown parking study and two grants to the City of Troy for River Street Arts Festival and the Powers Park concert series. Dep. Mayor Monica Kurzejeski made a motion to set a loan loss reserve of 10% of the portfolio. Andy Ross seconded the motion, motion carried. Dep. Mayor Monica Kurzejeski made a motion to approve the financials as presented. Andy Ross seconded the motion, motion carried. VIII. Old Business The chairman advised that we received an insurance renewal packet. The board reviewed the information and had a general discussion. Dep. Mayor Monica Kurzejeski made a motion to approve an insurance renewal with William J. Fagan & Sons, Inc. in the amount of $13,189.11 Andy Ross seconded the motion, motion carried. IX. King Fuels site Variance The board advised this item will be discussed at the next meeting. 4 X. Mrs. Kurzejeski advised she has a personnel item to discuss in executive session. Andy Ross made a motion to enter into executive session to discuss a personnel issue. Dep. Mayor Monica Kurzejeski seconded the motion, motion carried. Andy Ross made a motion to adjourn executive session with no action taken. Dep. Mayor Monica Kurzejeski seconded the motion, motion carried. XI. Adjournment The meeting was adjourned at 9:45 a.m. Dep. Mayor Monica Kurzejeski made a motion to adjourn the meeting. Andy Ross seconded the motion, motion carried. 5