Troy Local Development Corporation

Name: Troy Local Development Corporation — Troy, NY
Start: 2017-06-16
End: 2017-06-16
Location: Troy, NY

Regular Meeting

Troy, NY · June 16, 2017

Agenda Minutes

Minutes

TROY LOCAL DEVELOPMENT CORPORATION Board of Director Meeting Minutes June 16, 2017 8:30 a.m. BOARD MEMBERS PRESENT: Kevin O’Bryan, Steve Strichman, Hon. Monica Kurzejeski, Andy Ross and Hon. John Donohue ABSENT: ALSO IN ATTENDANCE: Robert Ryan, Esq., Mary Ellen Flores, 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 April 28, 2017 board meeting. Steve Strichman made a motion to approve the April 28, 2017 board meeting minutes. Andy Ross seconded the motion, motion carried. II. Executive Session Mr. Strichman advised executive session is needed in order to discuss current details of a current litigation. Hon. John Donohue made a motion to enter executive session to discuss current litigation. Andy Ross seconded the motion, motion carried. Steve Strichman made a motion to adjourn executive session. Andy Ross seconded the motion, motion carried. Mr. Strichman noted that during executive session the board agreed on a settlement with Casale Construction regarding the King Fuels site and authorization was given to spend funds for decontamination of an excavator on site which Casale Construction will remove. Steve Strichman made a motion to approve the settlement agreement with Casale Construction and expend funds to decontaminate the excavator on site in order to be removed by Casale Construction. 1 Hon. John Donohue seconded the motion, motion carried. III. Executive Director’s Report Monolith Solar - Mr. Strichman advised the board that Monolith Solar will move forward with putting solar panels on the County Waste and eLot building. He advised there will be no cost to the LDC and we will receive a discount on the cost of power to the eLot building. 444 River Street – Mr. Strichman noted that the Vecino Group will be ready to close on the purchase of 444 River Street mid-July. Mr. Ross asked if they had a timeline to start the project. Mr. Strichman advised they will have to go through the planning and zoning process. National Grid – Mr. Strichman advised that we met with National Grid this week to discuss the relocation of the gas line; from along the river further inland. He advised that we had discussed a few years ago moving it to the eastside of the parcel and are now discussing to move to a different spot. He advised that there are new personnel at National Grid that are going to be moving forward with the project. Mr. Strichman advised that we will have to move the clean piles and do some light clean up on the site. He advised that there are some details to be worked out between Department of Labor and the contractors. Ms. DalPos advised that she may have someone interested in the site. Ms. Kurzejeski spoke about a recent BOA conference that she attended and advised that we only require a SEQR in order to designate the site as a BOA. She advised that in order for them to sign off, a development plan is needed. Ms. Kurzejeski advised that we may want to have a developer come in and clean up the site so they can tailor it to what they need and take advantage of the tax credits. The board agreed that it is worth the time to take a look at options for the site that will help it move forward and create some incentive for developers. IV. Financials Ms. Flores discussed the balance sheet with the board members and advised that there are no significant changes. She advised that the funds regarding the Vecino Group closing will show up on the balance sheet in the next few months. Ms. Flores advised that there was an $8,000 loss for May related to professional fees to Bonadio’s audit. Hon. John Donohue made a motion to approve the financials as presented. Andy Ross seconded the motion, motion carried. The board reviewed and had a general discussion on the loans portfolio report that was distributed by Ms. Flores. The chairman noted that the loans showing all have short terms and will be closed in the next four years. Mr. Strichman noted that there are two loans that are consistently late. He advised that The Balance Loft has stated to him that the owner stated they had business interruption insurance, but he has not confirmed. He will be reaching out to them. The board had a general discussion about the Clark House loan for Donna’s restaurant which has since closed. Mr. Strichman advised that the loan is well secured and in good standing. He added that he is also using the restaurant 2 equipment he purchased, just in a different location. Mr. Donohue suggested that we set up a MOU to set the terms. Ms. Kurzejeski asked if not putting him in default would hinder us in the future if he did stop paying on the loan. Mr. Ryan advised that it should not be a problem, but will look into it. V. Old Business Mr. Ross asked about the closing on 444 River Street and if there was any mention in the agreement of a timeframe that the project had to completed by. Mr. Strichman advised not that he can recall and added that they will need to be coming through planning and zoning. He anticipated a fall start date. VI. New Business The chairman advised that there is not a new business item, but he would like to have a discussion about the type of large scale projects that we should be assisting with. He advised that this was brought to mind after the recent discussions on the property in Lansingburgh and questions/comments that came up regarding the LDC’s role. The chairman gave Mlock as an example of how a project can work; it is on the IDA side of things, but it has a beginning and an end. Mr. Ross suggested that we take a look at the projects on a case by case basis. Ms. Kurzejeski noted that surrounding counties have LDC’s that are their own entity and received funding from another source that help them take on the role of economic development. She advised that something like that could be a plan for the future and would require some restructuring, but added that we have been really successful with offering small startup loans to new businesses. The board agreed. Mr. Donohue advised that he does not want to see us shy away from the larger projects. The chairman advised that the LDC will be able to play a role in assisting the city, but we cannot take on large projects on our own. Ms. Kurzejeski noted that we also need to make sure that we do not make the same mistakes that have happened in the past. The board agreed. The chairman noted that there was some funding that went along with the project at the King Fuels site, but over time the LDC lost sight and started to look at it as a resource because there was a plan in place for the site. He advised that luckily we have been able to make the payments, but need to come up with opportunities to continue to generate income. The board had a general discussion on the grant process. The chairman noted that this has been a good discussion and wants the board members to be informed and prepared to explain to people as to why or why not we do things. The board had a general discussion on the background of the Leonard Hospital site and what might be able to be done with the LDC going forward. Mr. Donohue noted that it is interesting to see all of the things that happen behind the scenes that make a project happen or not happen. He added that the LDC is doing a great job with the resources we have, but looks forward to the work we can do if we were able to bring in some additional resources. VII. Adjournment With no additional business to discuss, the meeting was adjourned at 9:33 a.m. Hon. John Donohue made a motion to adjourn the meeting. Hon. Monica Kurzejeski seconded the motion, motion carried. 3

Agenda

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 June 16, 2017 8:30 a.m. AGENDA I. Approval of Minutes from April 28, 2017 board meeting. II. Executive Session III. Executive Director Report IV. Financials V. Old Business VI. New Business VII. Adjournment TROY LOCAL DEVELOPMENT CORPORATION Board of Director Meeting Minutes April 28, 2017 8:30 a.m. BOARD MEMBERS PRESENT: Kevin O’Bryan, Steve Strichman, Hon. Monica Kurzejeski, Andy Ross and Hon. John Donohue (came in after Item 1:00 pm) ABSENT: ALSO IN ATTENDANCE: Justin Miller, Esq., Mary Ellen Flores, Jim Lozano, Lucas Nathan, Cheryl Kennedy, David Chalmers and Denee Zeigler Minutes D R The Chairman called the meeting to order at 8:30 a.m. I. Minutes T The board reviewed the minutes from the April 6, 2017 board meeting. Mr. Strichman advised that in item 6 there was a typo; walled the site should be walked AF the site. Andy Ross made a motion to approve the April 6, 2017 board meeting minutes. Hon. Monica Kurzejeski seconded the motion, motion carried. Hon. John Donohue was absent for this vote. II. Mission Statement/Measurement Report Mr. Strichman spoke to the board about our current mission statement and advised that it is in need of an update. The board agreed and there were no comments. Mr. Strichman presented the measurement report to the board. He suggested the performance measures use the number of façades improved, business loans, jobs created/retained, number of properties returned to productive use and performance of loan portfolio. The board had a general discussion on the use of façades improved as a measurement tool; it was determined that it should be kept due to the grants still outstanding. Mr. Donohue asked if there was a formula that is being used to measure. The chairman advised not at this time, but that will have to be set up. Hon. John Donohue made a motion to adopt the Mission Statement and Performance Measure. Andy Ross seconded the motion, motion carried. 1 III. Executive Director’s Report Lofts @ 444 River Street - Mr. Strichman advised that we are looking at a mid- June/July closing for the Vecino Group project at 444 River Street. The board asked what this closing would mean to the LDC. Mr. Strichman advised they would pay off the $300,000 balance due on their loan to the LDC. King Fuels site – Mr. Strichman came back to discuss moving the gas line. He added that there may be an opportunity to issue them sales tax exemptions. Mr. Strichman advised that a consultant walked the site with us and they determined that the amount required for clean-up will be a little less the original estimate of $1.4 million. Ms. Kurzejeski asked if that cost would be just to clean up the piles. Mr. Strichman advised that it will be to remove the piles and scrape 6-9 inches down. He added that most of the cost comes from the removal/disposal of asbestos contaminated materials. The board had a general discussion of the rail services located near the site. Ms. Kurzejeski asked if there are any opportunities through DEC as part of the CFA process. Ms. Kennedy advised that she will look into at their meeting on Monday. IV. D Authorizing Resolution and Disposition of 2265 Fifth Avenue Mr. Strichman advised that the sale of this property to First Columbia was discussed at the last meeting. He advised that this property was donated to the LDC from a R bank along with funding. Mr. Strichman advised that they would like to purchase the property for $100; the cost of the appraisal. Mr. Strichman noted that we had it appraised for $1,500. The board had a general discussion about the cost of upkeep to the property and agreed that it would be beneficial to sell. T Hon. John Donohue made a motion to approve the sale of 2265 Fifth AF Avenue to First Columbia for $100.00. Hon. Monica Kurzejeski seconded the motion, motion carried. V. Sale of equipment Mr. Strichman advised that the BDAP loan applicant, Aneesa Waheed, was interested in purchasing some of the leftover equipment at 172 River Street for $500; ice maker, chairs, etc. Steven Strichman made a motion to sell equipment that was remaining from the Infinity Café loan for $500.00. Hon. John Donohue seconded the motion, motion carried. VI. Financials Ms. Flores presented the balance sheet to the board members. She advised that there is $4 million in assets, $1.5 million in liabilities and $2.5 million in equity. Ms. Flores advised that the most significant change on the balance sheets is listed in receivables; Troy Innovation Garage and Waste Connections PILOT. The chairman asked about the loans and receivables listed on the financials. He wanted to clarify that when we receive the payoff from Vecino we will be in better shape with our cash position. Mr. Ross asked about a previous discussion about sharing a portion of the administrative fee due from Vecino to the IDA. Mr. Miller advised that once the 2 details are outlined a resolution will be presented to the IDA. He noted that the administrative fee due to the IDA is about $150,000. Ms. Flores discussed the operating statement. She advised that there is a loss showing for the month of $33,700.00; made up of legal, accounting and professional fees. Mr. Strichman advised that at this time Rare Form Brewing is due for March and April. He advised that he will reach out to him again. Mr. Strichman advised that the Balance Loft is about six months behind. He advised that they are good about returning calls. Ms. Kurzejeski asked if she was still open. Mr. Strichman advised that she is still operating; however he has not seen much activity. The board noted that there is significantly less activity on the report at this time. Ms. Kurzejeski asked if any new loan applications have been received. Ms. Kennedy noted that there have been a lot of inquiries, but none that are ready. The chairman asked for a maturity report for our loan portfolio Hon. John Donohue made a motion to approve the financials as presented. VII. D Hon. Monica Kurzejeski seconded the motion, motion carried. Old Business R Mr. Strichman updated the board on Tara Kitchen and noted that they are now open and ready for business. The chairman asked about the status of the property we own at 2265 5th Avenue. T Mr. Strichman advised that the sale is currently in process. AF VIII. Adjournment With no additional business to discuss, the meeting was adjourned at 9:00 a.m. the next board meeting will be Friday May 19th. Hon. Monica Kurzejeski made a motion to adjourn the meeting. Hon. John Donohue seconded the motion, motion carried. 3

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