Troy Local Development Corporation

TROY LOCAL DEVELOPMENT CORPORATION Board of Director Meeting Minutes July 8, 2016 8:30 a.m. BOARD MEMBERS PRESENT: Kevin O’Bryan, Dep. Mayor Monica Kurzejeski, Andy Ross and John Donohue ABSENT: ALSO IN ATTENDANCE: Justin Miller, Mary Ellen Flores, Steve Strichman, Cheryl Kennedy, Tom Nardacci, Jeff Buell, Kathleen Tesnakis, Steve Jenkins, 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 June 17, 2016 board meeting. John Donohue made a motion to approve the June 17, 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. There were no questions from the board members. Ms. Kurzejeski advised that we will be in contact with them for additional information and requirements now that they are approved. Dep. Mayor Monica Kurzejeski made a motion to approve the 50/50 Façade Grants listed below:  1423 Fifth Ave, Nick Davis  39 First Street, Richard Hirsch  429 River Street, River Street Café John Donohue seconded the motion, motion carried. III. BDAP Loan - Troy Innovation Garage 1 Tom Nardacci spoke to the board about his project located at 22-24 4th Street. He advised that he purchased the building in November. Mr. Nardacci explained that the building has been underutilized since the Italian restaurant left. He advised that his company, Gramercy Communications, has been growing and will use about 4,000 sf of the space as its permanent home. He advised that in the other 10,000 sf will be the Troy Innovation Garage, a co-working space geared towards the creative economy. He noted that this concept has generated a lot of attention in the capital region as well some state and national news. Mr. Nardacci explained that it is geared to entrepreneurs who are currently working from their homes, starting their own companies, and would like to rent out the space on either a weekly or monthly basis. They will be able to use shared work spaces with state of the art equipment that will help them take their businesses to the next level. Mr. Nardacci advised that the shared space makes up about 80% of the building. He anticipates the space being full on opening. Mr. Nardacci advised that he has received all of his planning approvals and anticipates Gramercy moving into the space in mid-August and the Innovation Garage opening in late September. Mr. Nardacci advised that they wanted to pay special attention to the façade of the building. He advised that he has been through the local historic review process as well as approval from SHPO. Mr. Nardacci advised Steve Jenkins design for the façade. The board asked how this project is different from The Center of Gravity. Mr. Nardacci advised that this project is complementary to that space. He advised that he has been meeting with them from the beginning and noted that they are geared more towards the science and tech side of things. The Troy Innovation Garage will be geared more towards the creative economy; public relation and marketing firms, film, television, etc. The board had a general discussion on how the rental of space will work and memberships. He noted that individual work stations can be rented out and there will be 14 private suites. There will be no leases; everything will be monthly memberships to allow for flexibility for entrepreneurs. He noted that the people that have been walking through to look at the space are from the larger surrounding areas such as Clifton Park, North Albany and Loudonville. Mr. Nardacci advised they would like to serve as a way to supply Troy with new businesses. Mr. Nardacci introduced Steve Jenkins to the board. Mr. Jenkins talked about the façade of the building and its history. He noted that they will be reconstructing the façade; working with what is there and making improvements at the same time. He advised that they have been working closely with SHPO. Mr. Jenkins advised that he wants to create a light, open feel that will serve as almost a beacon at night time. They are making a big investment to the space. Mr. Donohue asked about the timeframe. Mr. Jenkins advised that it will go quick, but will take a few months to complete. They hope to have it completed in early Fall. Mr. Nardacci advised that the roof has also been replaced. Mr. Nardacci spoke about their logo and how it speaks for their tagline “Sparking Creativity”. The board advised they had no other questions at this time and will work to set up a loan term sheet for final approval at the next meeting. Andy Ross made a motion to approve the BDAP loan application for 22-24 4th Street, LLC d/b/a Troy Innovation Garage in the amount of $120,000. 2  John Donohue seconded the motion, motion carried. IV. BDAP Loan - Ekologic Kathleen Tesnakis spoke to the board about the upcoming Grand Central Holiday Show. She advised that this year she is very excited to participate because they have reduced the number of participants from 70 to 40. Ms. Tesnakis advised that she is asking for a loan in the amount of $10,000 in order to assist with purchasing additional supplies, fees and additional employees. She explained that last year was an interesting year where there were some very serious challenges. Despite the issues that came up, she came in only $6,000 under her best year. Mr. Donohue asked about the background of her company. Ms. Tesnakis advised that she is a recycled clothing designer and manufacturer that has been in business for 20 years; 14 of those have been in this area. She advised they recycle cashmere that is about to be thrown out in the garment district in NYC. Mr. Ross advised that his company has worked with Ekologic in the past and they do phenomenal work. Ms. Tesnakis advised that her business has been growing each year. The board agreed that this a good loan to make. Ms. Tesnakis advised that part of her job is to travel the county with her work to art shows and she will not be in the area from August 1st to September 12th. The board had a general discussion and advised that we can use the same loan terms as last year in order to move this forward. Andy Ross made a motion to approve the BDAP loan for Ekologic, Inc. in the amount of $10,000. John Donohue seconded the motion, motion carried. V. Financials Mary Ellen Flores presented the balance sheet financials to the board advising that we have assets of $4,456,000 with $853,000 is in cash. She advised that the balance sheet hasn’t changed too much. She did note that the Quackenbush loan did close and was moved from a receivable line. The funds were received on July 1st. The account will normalize next month. She advised that the financials being presented today are just a snapshot in time of the account. Ms. Flores went over the operating statement with the board. She indicated that we show a loss for this month as compared to last month. She advised that the entry made for the 10% loss allowance was booked incorrectly in April and was corrected in June. Ms. Flores advised that we are still working on a couple of delinquent loans. The chairman asked for a report to be presented at the next meeting regarding the loans. Ms. Kurzejeski advised that Troy Kitchen made a payment, but is still behind by three payments. She advised that she is working on setting up a meeting with Mr. Nelson to discuss the loan. The chairman advised that the loan guarantor should also be notified. The board had a general discussion on him restructuring his loan once he is current. Ms. Flores advised that a notice was sent out to Rare Form and The Balance Loft. Infinity Café will have something hand delivered to them due to previous attempts to send certified mail was never signed for. Ms. Flores advised that there are no other changes to the profit and loss report. 3  Dep. Mayor Monica Kurzejeski made a motion to approve the financials as presented. Mr. Donohue seconded the motion, motion carried. VI. Adjournment The board advised that there is a possibility they will not meet in August. Information will be sent around if this is the case. With no other items to discuss, the meeting was adjourned at 9:08 a.m. Dep. Mayor Monica Kurzejeski made a motion to adjourn the meeting. Andy Ross seconded the motion, motion carried. 4