Troy Local Development Corporation

Kevin O’Bryan, Chairman Andrew Ross, Vice Chairman Steven Strichman, Executive Director Dep. Mayor Monica Kurzejeski John Donohue TROY LOCAL DEVELOPMENT CORPORATION Board of Directors Meeting Planning Department Conference Room City Hall 433 River Street, Suite 5001 Troy, New York 12180 September 23, 2016 8:30 a.m. AGENDA I. Approval of Minutes from August 19, 2016 board meeting. II. Façade Improvement Grants  1 Washington Place, Keith & Michele Kamsu  403 River Street, Chris Ryan  328-330 Third Ave, Frank Grant  183 2nd Street, Heather Hamlin & Jim Martin  111 Washington Street, Heather Hamlin & Jim Martin  27 Second Street, Kerry Fagan  2 Irving Place, Cynde London McCoy  1833 Fifth Ave, Geri deSeve  5 Irving Place, Christopher Eastman III. BDAP Loan Authorizing Resolution  22-24 4th Street d/b/a Troy Innovation Garage – Revised IV. BDAP Loan Applications  309 3rd Ave, Mark Stevens  1 14th Street, Vic Christopher and Heather LaVine V. Fisher Associates – Final Invoice for Downtown Parking Study VI. Financials VII. Old Business VIII. New Business IX. Adjournment  TROY LOCAL DEVELOPMENT CORPORATION Board of Director Meeting Minutes August 19, 2016 8:30 a.m. BOARD MEMBERS PRESENT: Kevin O’Bryan, Steve Strichman, Dep. Mayor Monica Kurzejeski, Andy Ross, and Hon. John Donohue ABSENT: ALSO IN ATTENDANCE: Justin Miller, Mary Ellen Flores, Jim Lozano, Cheryl Kennedy, Hon. Jim Gulli, Sharon Martin, Adam Siemiginowski, HollyAnne Lupi, Deanna DalPos and D Denee Zeigler Minutes R The Chairman called the meeting to order at 8:30 a.m. I. Minutes T The board reviewed the minutes from the July 8, 2016 board meeting. AF Andy Ross made a motion to approve the July 8, 2016 board meeting minutes. Dep. Mayor Monica Kurzejeski seconded the motion, motion carried. II. Planning Commissioner Monica Kurzejeski introduced Steve Strichman to the board members and explained that he is the City of Troy’s new Planning Commissioner. The chairman advised that as the Planning commissioner, he is now a voting member of the Troy LDC and will now take over the role as Executive Director. III. 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. The board was happy to see that work will be done to this location. Ms. Kurzejeski asked if he planned on opening the store back up. Adam Siemiginowski advised that he hopes to re-open it next spring. Hon. John Donohue made a motion to approve the 50/50 Façade Grants for Adam Siemiginowski for 377 Congress Street. Andy Ross seconded the motion, motion carried. 1 IV. BDAP Loan - Troy Innovation Garage The chairman advised that a loan term sheet was circulated to the board members along with the agenda. He verified that this loan is secured and we have personal guarantee from Mr. Nardacci. The board agreed that this is a good loan for the LDC. The board members had no questions on the term sheet. Andy Ross noted that the term sheet states that copies of their taxes are due each year within 45 days of filing. He advised that may be too close of a timeframe and is willing to be lenient on that point. The board agreed. HollyAnne Lupi asked when we would be able to set up a closing date. Justin Miller advised that it will take about two weeks. (See attached Authorizing Resolution 08/16 #1) Andy Ross made a motion to approve the loan term sheet and authorizing resolution for 22-24 4th Street, LLC d/b/a Troy Innovation Garage in the amount of $120,000. Steven Strichman seconded the motion, motion carried. V. Victorian Stroll D Monica Kurzejeski spoke to the board members about a request that was received from the Rensselaer County Chamber of Commerce to sponsor the Troy Victorian Stroll. She advised that the event takes place each December in Monument Square and is a huge economic driver. The board had a general discussion about the R benefits of the Victorian Stroll. Hon. John Donohue made a motion to approve the sponsorship to the 2016 Victorian Stroll in the amount of $5,000. T Steven Strichman seconded the motion, motion carried. AF VI. 2265 5th Avenue Ms. Kurzejeski advised that 2265 5th Ave was given to the Troy LDC as a donation about a year ago and there are some maintenance issues that had to be addressed. We solicited bids from three different companies and received a reasonable bid from Lewis Lawn Care Services. Andy Ross made a motion to accept the contract with Lewis Lawn Care to maintain 2265 5th Avenue for the remainder of the 2016 season. Hon. John Donohue seconded the motion, motion carried. VII. Financials Jim Lozano discussed the balance sheet with the board members. He advised there is about $4.1 Million in assets versus $1.6 Million in liabilities leaving equity in the amount of $2.5 Million as of the end of July. He noted changes to accounts receivable; the Quackenbush loan was paid off and there was one new loan to Ekologic in the amount of $10,000. Mr. Lozano also explained that $15,000 in new façade grants were issued. Mr. Lozano advised that accounts shows negative because we paid the PILOTs early. The chairman asked about the loans to current asset ratio which seems to be nearing 55%. Mr. Lozano advised that it’s hard to look at the ratio the same way as a bank. The bank would have different assets than the 2  LDC. He advised that we look at it in terms of how much we have in our cash account and how much we need for operating costs. Mr. Lozano discussed the profit & loss sheet with the board members. He advised that there is currently a $110,000 deficit for the month; year to date it is $201,000. He advised that for the month, the deficit is driven by $97,000 which was paid to Urban Strategies and the $15,000 in new façade grants. Mr. Lozano distributed the delinquency report that was created for the board members. He advised that the items on the report show any delinquent loans or PILOTs along with their late fees. The chairman asked that we add the loan balance and delinquency ratio. Ms. Flores advised that is possible for future meetings. Ms. Kurzejeski spoke about a meeting that took place with Rare Form and he came up with a payment plan to assist him in getting caught up. Ms. Kurzejeski advised she also met with 77 Congress Street (Troy Kitchen) and advised that they are working with him to come up with a plan to get caught up and continue repayment. The other loan on the report, Infinity Café, has defaulted and is currently in demand status. The chairman noted to the board members that we accrue interest on all of the loans with the expectation of getting paid. When it’s doubtful, interest is accruing, but can D be written off. He asked that he would like to start writing off the interest once the accounts are over six months due. Andy Ross agreed on writing the charges off after six months. The board asked about the principal balance on Infinity Café’s loan. Mr. Lozano advised it was about $23,500. The chairman advised we should R assess what we think we will collect from this loan and how much will be taken from the reserve account. Mr. Lozano advised that the three delinquent loans total about $90,000 and the reserve is at $65,000. He felt that the reserve amount is sufficient. He suggested that we deal with them in stages; first they will be set to non-accrual, T then charge off a portion to establish the true loan loss. The chairman advised that the general purpose is to reduce the impact on our balance sheet when we AF encounter a bad loan. Ms. Kurzejeski noted that we have only had two other loans that went this route. Mr. Donohue noted that we must have learned something from dealing with them. The board advised yes and noted that if we are lending six figures we have to be diligent. Mr. Ross asked if there are legal fees that are set for collecting bad debt. Mr. Miller advised that is something they can discuss further. Dep. Mayor Monica Kurzejeski made a motion to approve the financials as presented. Mr. Donohue seconded the motion, motion carried. VIII. Executive Session The board entered executive session at 9:10 a.m. to discuss real estate matters and pending litigation. Dep. Mayor Monica Kurzejeski made the motion to enter into executive session to discuss real estate matters and pending litigation. Andy Ross seconded the motion, motion carried. The board returned from executive session at 9:39 a.m. with no action taken. 3 IX. Executive Director The board had a general discussion of the appointment of Steven Strichman as the Executive Director and agreed on a salary for his position in the amount of $15,000. Andy Ross made a motion to approve the $15,000 salary to the Executive Director, Steve Strichman. Steven Strichman abstained from the vote. Monica Kurzejeski seconded the motion, motion carried. X. New Business Ms. Kurzejeski advised that there two new loans that may be coming to the board. XI. Adjournment With no other items to discuss, the meeting was adjourned at 9:42 a.m. Andy Ross made a motion to adjourn the meeting. Hon. John Donohue seconded the motion, motion carried. D R T AF 4  T AF R D  T AF R D  T AF R D  Troy Local Development Corporation 50/50 Fagade lmprovement Program Application for Funding Assistance Applicant: Building Address ItS Jnc Stzezr Applicant Name Telephone Stt.,-lL// -S'to emait h €+-k!'r. k1a,r, l,O.drv-'l . An- ls the applicant the owner? E "". ownerName ffirn knfrg eZl e S Owner Address Building lnformation: Type of construction, Ml Masonry It Frame [-l o,n",. Number or Ftoors: 4 Basement EL v". [-l ruo Buitding square Footage: bOoOffi'' Lot Dimensions, 2K. Existing conditions of the building: Front Fagade: Excellent Fair At Risk Side Wall(s): Excellent Fair At Risk Rear Wall: Excellent Fair At Risk Roof Excellent Fair At Risk Other Excellent Fair At Risk Occupancy lnformation : Buildins is vacant ll vu, fifl No # of commercial units in the buildin g, fe / 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 M /f> # of residential units in the building: b Schedule of Work: Proposed Method of Work I- Contract n Self-Help ffi- Combination Dateworkcan besin by: f/t /t I Date work must be completed by: a/ Zo/, I Do you anticipate a need for architect designservicesZ f] ye. M ruo Do you anticipate a need for contractor design services? T-l Yes Kl No Totat project cost € //gtra * Grant Requ (do oo.n "", Describe any recent improvements you have made to the building, if any: Ar- n at-<hvz Provide abriet summary of proposed * Additional lnformation : Are you or any other owner of the property a City of Troy employee? [-l-"", M *o Have you ever received grant money forthis project? IL y". Ml ruo lf yes, please describe: E-2o'/to Signature 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 O6l20lt3  Troy Local Development Corporation 50/50 Fagade lmprovement Program Application for Funding Assistance Applicant: Building Address II I 1,,/*Sv,^/Gr7 J S*. t Lr Applicant Name Ti^- yvl*c" i,-.' Applicant Address o rct"pn*W ^'/ a^- . Is the applicantthe owner? lI-Yu. f] No Owner Name -50-un < Owner Address -S arvJ Building lnformation: Typeof construction, MI Masonry I]- Frame l]- other Number of Floors: 3 Basement y". l-l -[]- ruo Building Square Footage:.-t4t a!J.1@[g1fu Lot Dimensio"r' 23 y{ Existing conditions of the building: Front Fagade: Excellent Fair At Risk Side Wall(s): Excellent Fair At Risk Rear Wall: Excellent Fair At Risk Roof Excellent Fair At Risk Other Excellent Fair At Risk Occupancy lnformation : Buitdins is vacant l-L Y"" Ml ruo # of commercial units in the buildin g, 8 6 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 tl lL # of residential units in the building: 5 Schedule of Work: Proposed Method of Work I- Contract n Self-Help Combination -[|- Date work can besin by: S l. /6fi qQo/ Date work must be completei iv,' t t v"s -f I I Yes K[ Do you anUcipate a need for architect Oeslgn services? N9 Do you anticipate a need for contractor design services? tr(l No Total Projec tcost {asb2.fl GrantRequ"r* 't'J6oo '* Describe any recent improvemgnls you have made to the building, if any: Sct harnAro Provide a brief summary of all proposed activities: Additional lnformation : Are you or any other owner of the property a City of Troy employee? [ IXL*o "", Have you ever received grant money for this project? l-t y", M ruo lf yes, please describe: 9 -Jo- tt- Corporation certifies that it will comply with all Federal statutes and regulations that prohibit iiscrimination 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 06120113