March 14, 2014 Page 3
BROOME COUNTY INDUSTRIAL DEVELOPMENT AGENCY
Board MEETING
185 Court Street
Binghamton, New York 13901
Friday, March 14, 2014, 12:00 pm
SYNOPSIS OF MEETING
PRESENT: J. Davis, W. Howard, T. Kane, R. Keibel, R. Nielsen, D. Preston, D. Reynolds, J. Rounds
and J. Stevens
ABSENT: None.
GUESTS: John Bernardo, Broome County Deputy Executive
Bijoy Datta, Broome County Deputy Executive
Jerry Marinich, Broome County Legislative Chairman
Aaron Martin, Broome County Legislative Clerk
Elaine Miller, Broome County Planning Commissioner
Patrick Doyle, BCIDA Business Development Consultant
Scott Colton, Carpenters Local #277
Dan Richardson, Roofers Local #203
John Solak, Broome County Resident
STAFF: K. McLaughlin, S. Duncan, T. Gray and C. Campon
COUNSEL: J. Meagher
PRESIDING: T. Kane
Mr. Kane called the meeting to order at 12:10 p.m.
ITEM #1. APPROVE MINUTES FOR THE FEBRUARY 14, 2014 BOARD MEETING: Mr. Kane requested approval of the minutes for the February 14, 2014 Board meeting.
MOTION: Resolution to approve the February 14, 2014 Board meeting minutes. On a MOTION by Mr. Nielsen, seconded by Ms. Preston, the MOTION CARRIED. Mr. Rounds abstained as he was absent from the previous Board meeting.
ITEM #2. PUBLIC COMMENT: Mr. John Solak requested that when any questions for bond counsel arise at Board meetings, bond counsel be present. Looking ahead on the meeting agenda, Mr. Solak felt that rather than hiring more consultants, if a consultant is valuable to the Agency, he should be brought on as staff. Mr. Solak also felt that some student housing projects have been given preferential treatment over others. He requested that Ms. Preston abstain from voting on the Vestal Park resolution because Newman Development is a large campaign contributor. Mr. Solak also said union labor needs to be a priority when voting on these projects, and Newman Development has not looked favorably on union labor in the past. Mr. Solak said Binghamton and Broome County have fallen into disrepair one street at a time and they should be put back together one street at a time. He believes this means depending less on Binghamton University.
MOTION: No motion necessary.
ITEM #3. EXECUTIVE DIRECTOR’S REPORT: Mr. McLaughlin said a survey is being undertaken to transfer the parcels into one encompassing parcel at the Hawley Street site of the Southern Tier High Technology Incubator. The survey should be complete in the next few weeks. Acquisition and demolition are almost complete. Mr. McLaughlin said he is in the process of sending out an RFP for real estate services. He plans to bring a recommendation to the Board at the April meeting. Mr. McLaughlin said the Broome County Land Bank has appointed its Executive Director, Ms. Stacey Duncan. The Land Bank has received a $150,000 grant to get established. The Land Bank office will be located within the IDA office. Mr. Kane requested quarterly reporting from the Land Bank to the Board. Mr. McLaughlin said job descriptions will be reviewed at the April personnel committee meeting. A drafted investment policy will be discussed with the Audit & Finance Committee. He intends to present the updated mission statement and value proposition to the community at the March 25th breakfast event. The mission statement received Board approval with approval of the strategic plan, but the value proposition would need approval today.
MOTION: To accept the BCIDA Value Proposition. On a MOTION by Mr. Davis, seconded by Mr. Nielsen, the MOTION CARRIED UNANIMOUSLY.
ITEM #4. LOAN FUNDS AVAILABILITY AS OF FEBRUARY 28, 2014: Mr. Gray presented the Loan Funds Availability report to the Board. The balances available to lend are $312,615.59 (STEED) and $846497.29 (BDF). Mr. Stevens asked Mr. Gray what he and the advisory loan committee are doing to reach more potential borrowers. Mr. Gray said he has been meeting with economic development groups and banks to discuss with them the Agency’s new relaxed operating philosophy.
MOTION: No motion necessary.
NEW BUSINESS
ITEM #5. DISCUSSION OF REVISED BCIDA APPLICATION: The draft revised application was distributed to the Board as well as Harris Beach prior to the meeting. Mr. McLaughlin said Harris Beach said it was one of the best they had seen and that it left no questions unanswered. The application includes a “must use local labor” clause that mirrors other similar IDA policies. The clause still allows the Agency to waive the requirement in certain circumstances. The new application talks more actively about oversight, and builds in a modest annual admin fee. It requires a more in depth profile of the applicant as well as lays out the ethical obligations of the Board with regard to conflicts of interest. The application will be offered in a fillable pdf format. Mr. McLaughlin said that if the Board chooses to accept the application today as is, it would be with the understanding that the application can and should be revised with Board approval in the future. The local labor policy includes a list of organizations that are required to be solicited for a project. The Board asked that the application be amended so that the specific individual contact names are removed and just the name and address of the organization are stated.
MOTION: To accept the revised BCIDA application with the amendment. On a MOTION by Mr. Nielsen, seconded by Mr. Stevens, the MOTION CARRIED UNANIMOUSLY.
ITEM #6. RESOLUTION TO AUTHORIZE EXECUTIVE DIRECTOR TO ENTER INTO CONTRACT WITH HARRIS BEACH, PLLC FOR BOND COUNSEL SERVICES: Mr. McLaughlin said he sent out an RFP for bond counsel to six bond counsel firms in New York and received five responses. The governance committee met and interviewed the top two candidates. They were most impressed with Harris Beach because of its economic development tools in addition to Mr. McLaughlin’s good working relationship with the firm.
MOTION: To authorize the Executive Director to enter into contract with Harris Beach, PLLC for bond counsel services. On a MOTION by Mr. Nielsen, seconded by Ms. Preston, the MOTION CARRIED UNANIMOUSLY.
ITEM #7. RESOLUTION TO AUTHORIZE EXECUTIVE DIRECTOR TO ENTER INTO CONTRACT WITH NATIONAL DEVELOPMENT COUNCIL FOR AN AMOUNT NOT TO EXCEED $60,000 FOR COMMUNITY AND ECONOMIC DEVELOPMENT CONSULTING SERVICES: Mr. McLaughlin said he sent out an RFP to six firms for economic development consulting. He received responses from National Development Council and Susan Payne. Mr. McLaughlin said NDC has an impressive history and their expertise in different areas of development for non-profits would be a valuable asset to the IDA. Mr. McLaughlin also said the Agency worked with Ms. Susan Payne on the strategic action plan, and he would like to continue to work with her on moving forward with the plan. Mr. Nielsen suggested reviewing the progress that has been made with the various consultants in a year and comparing the deliverables to the cost. He suggested one year contracts that would require renewal. Mr. McLaughlin said contract renewal would be part of the budget process.
ITEM #8. RESOLUTION TO AUTHORIZE EXECUTIVE DIRECTOR TO ENTER INTO CONTRACT WITH SUSAN PAYNE FOR AN AMOUNT NOT TO EXCEED $25,000 FOR COMMUNITY AND ECONOMIC DEVELOPMENT CONSULTING SERVICES: Discussion for Item 7 and Item 8 were combined.
MOTION: To authorize the Executive Director to enter into contract with National Development Council for an amount not to exceed $60,000 for community and economic development consulting services. On a MOTION by Mr. Davis, seconded by Ms. Preston, the MOTION CARRIED UNANIMOUSLY.
MOTION: To authorize the Executive Director to enter into contract with Susan Payne for an amount not to exceed $25,000 for community and economic development consulting services. On a MOTION by Mr. Stevens, seconded by Mr. Davis, the MOTION CARRIED UNANIMOUSLY.
ITEM #9. RESOLUTION ACCEPTING THE TAX EXEMPTION-LEASE TRANSACTION APPLICATION FROM VESTAL PARK, LLC FOR THE ACQUISITION AND CONSTRUCTION OF STUDENT HOUSING FACILITIES AT 4710 VESTAL PARKWAY, VESTAL, NY: Mr. McLaughlin said the principals of the Vestal Park project presented to the Governance Committee last month, and the Board received the application for assistance in the Board packet. The governance committee is in favor of the project. If the Board approves accepting the application today, a public hearing will be scheduled prior to the next Board meeting, and the final inducement resolution will come before the Board in April. Mr. Davis asked what impact these facilities may have on existing student housing. He asked if the community is at the risk of creating vacant property. He suggested the Board consider undertaking an independent study. Mr. McLaughlin said the City of Binghamton Housing Board plans to take on that study. A recent Binghamton University’s analysis demonstrates a need for housing that reflects the university’s growth plan. Ms. Preston said the County is taking the lead and forming a planning committee with planning Boards from across the County to research the issue. Mr. Nielsen said in the future, the Board might consider not accepting a new application for student housing without providing a credible impact study. Mr. Stevens said a positive consequence is the possibility of competition driving housing quality up. Mr. McLaughlin said the staff will draft the framework for a study and bring it to the Board.
MOTION: To accept the tax exemption lease-transaction application from Vestal Park, LLC. On a MOTION by Mr. Nielsen, seconded by Mr. Reynolds, the MOTION CARRIED. Mr. Kane abstained because of his employment at Binghamton University and the University’s involvement in the issue.
ITEM #10. RESOLUTION AUTHORIZING THE SETTING OF THE PUBLIC HEARING FOR THE VESTAL PARK, LLC PROJECT FOR THE ACQUISITION AND CONSTRUCTION OF STUDENT HOUSING FACILITIES AT 4710 VESTAL PARKWAY, VESTAL, NY: No discussion.
MOTION: To authorize the setting of the public hearing for the Vestal Park, LLC project. On a MOTION by Mr. Davis, seconded by Mr. Nielsen, the MOTION CARRIED UNANIMOUSLY.
ITEM #11. REQUEST FROM SUNMAXX SOLAR, LLC TO REDUCE RENT AT 56 BROOME CORPORATE PARKWAY, CONKLIN, NY: Mr. McLaughlin said he met with SunMaxx Solar recently to discuss its request for rent reduction. The company is occupying the entire building, but it is down to four employees. A breakdown for costs and payments was distributed to the Board prior to the meeting. Mr. McLaughlin suggested a formal lease agreement and potential litigation be discussed in Executive Session.
ITEM #12. 79 FREDERICK STREET: Discussion regarding sale of property held in Executive Session.
ITEM #13. EXECUTIVE SESSION TO DISCUSS CONFIDENTIAL PLANS OF CERTAIN AGENCY CLIENTS AND PERSONNEL MATTERS: Mr. Kane asked for a motion to convene to Executive Session.
MOTION: To convene to executive session. On a MOTION by Mr. Stevens, seconded by Ms. Preston, the MOTION CARRIED UNANIMOUSLY.
ITEM #14. RESUMPTION OF PUBLIC SESSION:
MOTION: To reconvene back to public session. On a MOTION by Mr. Stevens, seconded by Mr. Davis, the MOTION CARRIED UNANIMOUSLY.
MOTION: To authorize the Executive Director to negotiate an option on fair market value with 5% payments for 79 Frederick Street. On a MOTION by Mr. Nielsen, seconded by Mr. Stevens, the MOTION CARRIED UNANIMOUSLY.
ITEM #15. ADJOURNMENT: Mr. Kane requested a motion for adjournment.
MOTION: To adjourn the meeting. On a MOTION by Mr. Rounds, seconded by Mr. Nielsen, the MOTION CARRIED UNANIMOUSLY, and the meeting was adjourned at 1:49 p.m.
The next meeting of the BCIDA Board of Directors is scheduled for April 11, 2014 at 12:00 p.m. at the Broome County Public Library, 185 Court Street, Binghamton, NY.