February 13,2019

A regular meeting of the City of Hornell Industrial Development Agency was held on Wednesday, February 13, 2019, at 4:00 PM.

PRESENT: Samuel Nasca, Chair
George Prete, Vice Chair
David Parmley, Treasurer, CFO
ABSENT: John Buckley, Asst. Treasurer
John Carbone, Secretary

ALSO: James Griffin, CEO, Executive Director
Shawn Hogan, Executive Consultant
Margaret Frungillo, Administrative Assistant

Chairman Nasca called the meeting to order at 4:00 PM. Chairman Nasca reported that there was a quorum for the meeting as required by the by-laws. Chairman Nasca presented the minutes of the December 20, 2018. A motion was made by Dave Parmley, seconded by George Prete to approve the minutes of the 12/20/18 meeting. Carried All.

Treasurer Dave Parmley presented the financial statements for December 2018 that had been e-mailed to the Board prior to the meeting for their review. A motion was made by George Prete, seconded by Dave Parmley to approve the financial report as presented. Carried All.

COMMITTEE REPORTS

Audit Committee – Chairman of the Audit committee, George Prete, reported that the Audit Committee had met on 1/16/19 and approved bills for December for $50,770.79 from the operating account. A motion was made by Dave Parmley, seconded by George, to approve the actions of the Audit Committee. Carried All.

Personnel Committee – Chairman Nasca requested that the Board extend the Executive Director's contract for another two years from 4/1/2019 to 3/31/2021. A motion was made by Dave Parmley, seconded by George Prete to approve the extension of the Executive Director's contract. Carried All.

Governance Committee- Chairman Nasca reported the he had attended a NYSEDC Conference in January in Albany. Nacsa reported that at the conference he had attended a meeting regarding a comprehensive review of best practices which gave a review of IDA policies as required by the ABO. Nasca stated that he had contacted Shawn Griffin, attorney for Harris Beach, and he will be issuing new manuals for Board review.

Strobels Supply- Executive Director Griffin stated that prior to executing the lease with Strobels Supply to lease the facility at 40 Shawmut Drive, the Agency and the Company discovered the west wall and adjoining concrete slabs of the facility settled, which caused portions of the facility floor to buckle. Initially, the Lease Agreement provided the Company with an option to purchase the facility for $750,000. In consideration for the Company undertaking, or hiring a third party to undertake, the remediation and stabilization of the facility wall, the Agency agreed to reduce the optional purchase price by $50,000. The $50,000 price reduction would be applied to the initial lease deposit, though the lease terms and PILOT payments would remain the same. In exchange for the reduced optional purchase price of $700,000, the Company agreed to indemnify the Agency from any liability stemming from action taken to remediate and stabilize the facility wall by the Company. Executive Director Griffin requests a resolution to accept the new optional purchase price terms of the Lease Agreement between the Agency and Strobels Supply. The motion was made by Dave Parmley, seconded George Prete to approve the resolution as presented. The motion was put to a vote on roll call which resulted as follows:

Samuel Nasca – Aye       George Prete – Aye
Dave Parmley – Aye       John Buckley - Absent
John Carbone – Absent

The Resolution was duly adopted

Court House- Executive Consultant Hogan stated that he had been approached by the new owners of the Court House inquiring what assistance may be available to them from the IDA. Hogan stated that they had already secured two new businesses, a tee shirt embroidery shop and a book store that also sells beer and wine. The Board agreed that they would have to see a comprehensive business plan before they could consider any type assistance.

There being no further business the meeting was adjourned at 4:35 PM upon motion by Dave Parmley, seconded by George Prete. Carried All.

Respectfully submitted,

John Carbone, Secretary