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 December 15, 2017 8:30 a.m. AGENDA I. Approval of Minutes from October 27, 2017 board meeting. II. IDA and LDC Economic Development Services Agreement III. Executive Director Report IV. Financials V. Old Business - Auditor RFP responses/decision VI. New Business - 2018 Meeting Calendar - Board Member Evaluations VII. Adjournment  TROY LOCAL DEVELOPMENT CORPORATION Board of Director Meeting Minutes October 27, 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: Justin Miller, Cheryl Kennedy, Mary Ellen Flores, Jim Lozano, Deanna DalPos, Marla Ortega and Brian Ortega and Denee Zeigler Minutes D The Chairman called the meeting to order at 8:30 a.m. I. Minutes R The board reviewed the minutes from the September 15, 2017 board meeting. T Andy Ross made a motion to approve the September 15, 2017 board meeting minutes. AF Hon. Monica Kurzejeski seconded the motion, motion carried. II. IDA and LDC fee sharing agreement Mr. Strichman explained to the board that the details of the fee sharing agreement are still being worked out with the IDA board. The chairman advised that we will continue to work with the IDA board to create a policy that outlines the amounts and details of the fee sharing policy and added that it is not something that happens often. Mr. Donohue asked when the fee sharing would come into play. The board had a general discussion about how, for a couple of the projects, the LDC had worked to acquire properties and get them closer to being developed. Those projects had gone to the IDA for benefits where an administration fee was paid. That fee is what will potentially be shared. Mrs. Kurzejeski asked about the amount showing in the budget. Mr. Strichman explained it is an estimated number based on the project located at 444 River Street. III. Illium Café loan 2 - Mr. Strichman introduced Marla and Brian of the Illium Café, which have an existing loan with us. He noted that they are paid down to about $10,000 and are coming to us for a second loan to expand the services being offered. Mr. Strichman advised that after discussions with the applicant, they agreed on a $15,000 loan. He noted that they are already in the space, and they will be using the funding for a new venture within the same space. Mrs. Kurzejeski asked the applicant about the 1  previous kitchen improvements and what is next for them. Marla Ortega explained that the previous loan allowed them to help create a fully functioning kitchen space behind the unit they acquired at 7 Broadway. She explained that this left about a 1200-1500 sf area that can be used to generate more income through the business. Mrs. Ortega explained that their business is currently a table service, so there is high overhead for labor. She noted that the new endeavor will be quick serve Mexican. Mrs. Ortega noted that their building was recently purchased and rents will be increasing over the next five years to an amount that cannot be sustained by the Illium alone. The board had a general discussion about the building coming under new ownership and the business cycle for restaurants downtown. Mrs. Kurzejeski asked about the hours. Mrs. Ortega advised that they will be staying open later and would like to cater to the late night customers and Grubhub.com orders. Mr. Ortega spoke to the board about the plans for the building. He noted it is in transition and they are excited to see where it goes. The chairman explained that he would like to streamline the loan process and approve he loan at this meeting. The board had a general discussion on the process and agreed to approve and move it forward during this meeting. Mr. Ross asked about the process we have to check business records and credit. Mr. Strichman noted that we will do credit checks and collect previous year’s taxes. (See attached Resolution 10/17 #1) Andy Ross made the motion to approve the additional BDAP loan to Puravida Culinary Group, LLC d/b/a Illium Café in the amount of D $15,000 for business expansion. Monica Kurzejeski seconded the motion, motion carried. IV. R Monolith Solar Mr. Strichman explained that an agreement has been set up with Monolith Solar for panels being put up at the County Waste site. Mr. Miller advised that in June solar T panels were installed on a County Waste building; a property we own and is leased to them. Mr. Miller explained that the process to install solar panels started some AF time ago, but it appears that the installation was started mistakenly without the LDC being involved. He advised that we’ve since had discussions with County Waste and Monolith Solar and have worked out the details; they will be responsible for the legal costs, will pay the LDC $1,000 a year and wording in the lease agreement has been included to protect the LDC in the event of tenant changes during the term of their lease. Mr. Miller also advised that a SEQR has been filled out. Mr. Ross noted that the only liability that he can see is if County Waste does not want to renew their lease in the future, then we may have some financial liability. Mr. Miller agreed and noted that there were updates made to the agreement to account for that. Mr. Donohue asked where the solar panels are located on the site. Mr. Miller advised that they are located on the roof of the main building of the transfer station and on the office building. He added that there is also a ground transformer. Mr. Strichman advised that we would need board approval to pass the resolution. (See attached Resolution 10/17 #2) Hon. John Donohue made a motion to approve the Authorizing Resolution to allow solar panels to be installed at the County Waste by Monolith Solar. Andy Ross seconded the motion, motion approved. V. Budget Mr. Strichman went over the budget with the board members. He advised that some items on the report are not required for the ABO, but helps to give the board a 2  clearer picture. The board asked about the $75,000 and why does it disappear. Mr. Strichman advised that is the remaining façade grants and noted that they should all be completed as of the end of October. That amount will not be carried over to any other years. The board had a general discussion about the budget and the issues the board will face going forward. The chairman noted that we retain the lesson that the budget teaches us. Mr. Ross asked if we know what the total amount spent, to date, for the King Fuels site. The board did not have a number, but discussed some of the costs over the years. Mr. Miller advised a lot of the outgoing costs are related to the debt service and other costs related to maintain/clean-up the site. He added that we did receive some income over the years; a large portion was from National Grid licensing agreement and rent from tenants. The board agreed that funding should have been separated and an income source be sought out in order to replenish the funds. Mr. Miller advised that we also had incoming funds with the sale of 444 River Street. If there was a way to do deals such as this a couple times a year, we would be in good shape. Mr. Donohue asked if there was a plan for the former King Fuels site going forward. Mr. Strichman noted that we have been working with National Grid to try and get some of the remediation done in order to sell a portion of the site. He advised that he was able to get the cost down slightly from $1 Million to $600,000. He added that D National Grid also wanted to re-locate their pipeline on the site and he was trying to work with them with that. Mr. Strichman added that one of the parcels is being used by the City and they are working with them to set up an agreement. The board R asked about potential projects with City owned properties. Mrs. Kurzejeski suggested that the LDC may be able to be used as more of a real estate/economic development engine and work with the City to help package and promote available properties. The board agreed and noted that it is a possibility going forward. Ms. T DalPos noted that she has been approached by businesses that would be interested in the County Waste site, but was unclear about the terms of their lease. Ms. AF Kurzejeski noted that we all need to be part of the conversation to develop these sites. Hon. Monica Kurzejeski made the motion to approve the budget for 2018 as presented. Andy Ross seconded the motion, motion carried. VI. Executive Directors Report Small Business Summit - Mr. Strichman noted that the 2nd Annual Small Business Summit that we sponsored happened last week and was a great success. He noted a great keynote speech by Sinclair Schuller about why he decided to locate Apprenda in Troy. NYCOM – Mr. Strichman advised that there was a recent article in the latest issue of NYCOM magazine discussing the successes of Troy by Cheryl Kennedy called, “Collar City turned Collaboration City”. Transfer of properties - Mr. Strichman advised that he has applied to the City to transfer two properties to the LDC; one related to 701 River Street and the other is for the city owned parking lot next to the Key Bank building on Fourth Street. Mr. Strichman advised both would require a public hearing to take place. The board asked why the LDC would get involved in these two transactions. Mr. Strichman advised that the transfer of the properties to the LDC makes the process for the 3  developers to move forward. He added that if the LDC was not involved, they process would become competitive and take much longer. The chairman advised that we will go through the public hearing process and if anyone wanted to come and speak out against it, they can at that time. He added that the complete process will be transparent and go through City council for a vote. Mr. Strichman noted that the transfer will not occur until we know the other portion of the project will be completed. Mr. Miller advised that there is a developer that is interested in the Key Bank parking lot site and noted that this type of process could work for us in the future and help make sights more desirable for developers. Mr. Donohue asked if the process is within the limits of the LDC. Mr. Miller advised yes. Mr. Donohue asked if this process has happened in the past. The board advised yes and inquired if any income will be generated. Mr. Strichman advised no, but they may be approaching the IDA for incentives. Mr. Miller noted that once we set up a fee sharing agreement, these may be the type of projects that would be able to qualify. VII. Financials Ms. Flores advised there has not been much change on the balance sheet. She advised the biggest change is in the cash balance Ms. Flores discussed the profit & loss sheet and advised that there is a loss of $21,000 related to decontamination of the excavator. Mr. Strichman noted that it is D now off of the site and we netted $1,000 from the sale of the scrap. Hon. John Donohue made a motion to approve the financials as VIII. R presented. Andy Ross seconded the motion, motion carried. Delinquency Report T Rare Form - Mr. Strichman advised that Rare Form Brewing is still behind. Mrs. AF Flores advised that they were behind two months and were heading into the third month. Mr. Strichman noted that one of their loans will be paid off early 2018. BSM Banquets – Mr. Strichman advised they were behind a few payments, however, a payment was dropped off this week with a promise to make another payment next week. IX. Old Business – Mr. Donohue asked if we have received anything regarding DeFazio’s loan application. Mr. Strichman advised that he has not heard anything from him at this time. X. New Business – Mr. Ross asked if we have heard of any potential projects for the Standard Manufacturer building. Mr. Strichman advised that he has spoken to them a couple times, but nothing solid yet. XI. Adjournment With no additional business to discuss, the meeting was adjourned at 9:36 a.m. Andy Ross made a motion to adjourn the meeting. Hon. John Donohue seconded the motion, motion carried. 4  Troy Local Development Corporation 2018 Meeting Schedule January 19th February 16th March 16th April 20th May 18th June 15th July 20th August 17th September 21st October 19th November 16th December 21st Meetings are held the third Friday of each month at 8:30 a.m. in the Planning Department Conference Room of City Hall 433 River Street, 5th Floor, Troy, NY 12180  Confidential Evaluation of Board Performance -Troy LDC 2017 Somewhat Somewhat Criteria Agree Agree Disagree Disagree Board members have a shared understanding of the mission and purpose of the Authority. The policies, practices and decisions of the Board are always consistent with this mission. Board members comprehend their role and fiduciary responsibilities and hold themselves and each other to these principles. The Board has adopted policies, by-laws, and practices for the effective governance, management and operations of the Authority and reviews these annually. The Board sets clear and measurable performance goals for the Authority that contribute to accomplishing its mission. The decisions made by Board members are arrived at through independent judgment and deliberation, free of political influence, pressure or self-interest. Individual Board members communicate effectively with executive staff so as to be well informed on the status of all important issues. Board members are knowledgeable about the Authority’s programs, financial statements, reporting requirements, and other transactions. The Board meets to review and approve all documents and reports prior to public release and is confident that the information being presented is accurate and complete. The Board knows the statutory obligations of the Authority and if the Authority is in compliance with state law. Board and committee meetings facilitate open, deliberate and thorough discussion, and the active participation of members. Board members have sufficient opportunity to research, discuss, question and prepare before decisions are made and votes taken. Individual Board members feel empowered to delay votes, defer agenda items, or table actions if they feel additional information or discussion is required. The Board exercises appropriate oversight of the CEO and other executive staff, including setting performance expectations and reviewing performance annually. The Board has identified the areas of most risk to the Authority and works with management to implement risk mitigation strategies before problems occur. Board members demonstrate leadership and vision and work respectfully with each other. Date Completed: ________________________________________