March 14, 2013

A regular meeting of the City of Hornell Industrial Development Agency was held on Thursday, March 14, 2013, at 3:00 PM, at 40 Main Street, Hornell, NY.

PRESENT: Samuel Nasca, Chair
George Prete, Vice Chair
Shawn Hogan, Treasurer
David Parmley, Asst. Treasure
Joseph Foreman, Secretary

ABSENT: None

ALSO: James Griffin, CEO
Wanda White, Administrative Asst.
William Dugan, Reporter
Jeff Stone – Reporter
Peter Wall, President Universal Health

Chairman Nasca called the meeting to order at 3:15 PM.

MINUTES

Secretary Joseph Foreman made a motion to accept the 1/11/13 minutes as presented. Motion seconded by David Parmley. Carried All.

FINANCIAL REPORT

Treasurer Shawn Hogan presented the financial reports for the months of January and February 2013 as reviewed by our accountants Mengel Metzger, & Barr. A motion was made by David Parmley, seconded by Joseph Foreman to approve the financial reports as presented. Carried All.

AUDIT COMMITTEE

Audit Committee Chairman George Prete stated the committee had met on 3/14/13 and approved payment of bills in the amounts of $241,027.49 for January, $176,166.51 for February, and $17,937.03 for March. A motion was made by Shawn Hogan, seconded by Joseph Foreman to approve the actions of the Audit Committee. Carried All.

PERSONNEL COMMITTEE

Personnel Committee Chairman Shawn Hogan stated he had no report.

GOVERNANCE COMMITTEE

Governance Committee Chairman Nasca stated that the Board attended an IEDC Leadership Summit in January and a NYSEDC Sectional Conference in Albany. He also stated they would be attending an upcoming NYSEDC Annual meeting in Saratoga Springs and an IEDC Forum in Washington DC in the next month to further their PAAA education.

Mr. Nasca also stated that he had requested that meeting materials go out to all Board members early enough so the Board has time to review all materials before the meeting. A motion was made by Dave Parmley, seconded by Joseph Foreman to accept the Governance Report. Carried All.

IRON HORSE DEPOT

A motion was made by David Parmley, seconded by Joseph Foreman to waive the agenda and Mr. Griffin and Mayor Hogan introduced Peter Wall, President of Universal Health, who is expanding his business from the Broadway Mall to the Depot on 111 Loder Street under a lease from the Agency. The name of his expanded business will be Iron Horse Depot, LLC and he will hire up to 100 new employees and retain 30 positions. Mr. Wall stated he had just received a contract for servicing over 400 Doctors in the Tampa, FL area and needed space and employees. Mr. Wall has applied for financial assistance from the Agency. Executive Director Griffin presented to the Board a cost benefit analysis report stating the total project cost would be $1,850,000 with total employment of 60 new hires and 30 retained jobs. Griffin said when we reduced Alstom's Lease $1 million, it was agreed the Agency could buy back the Depot building for $1.00. A motion was made by David Parmley, seconded by Joseph Foreman to have the Executive Director complete the necessary paper work to lease the Depot to Iron Horse. The motion was duly put to a vote on roll call, which resulted as follows:

Nasca – Aye
Parmley – Aye
Prete – Aye
Foreman – Aye
Hogan – Aye

The motion was duly carried.

Executive Director Griffin presented a Resolution to the Board authorizing the Agency to retain fee title in the land and improvements located at 111 Loder Street, appoint Iron Horse, LLC as its agent, execute an agent agreement, sales tax exemption letter, and a lease and pilot agreement. The motion was made by Shawn Hogan, seconded by George Prete to approve the Resolution. The motion was duly put to a vote on roll call, which resulted as follows:

Nasca – Aye
Parmley – Aye
Prete – Aye
Foreman - Aye
Hogan – Aye

The motion was duly carried.

Griffin presented a Resolution to apply for a $250,000 loan from Southern Tier Region Community Revitalization Program to renovate the Agency's building to prepare it for leasing. A motion was made by Shawn Hogan, seconded by George Prete to approve the Resolution. The motion was duly put to a vote on roll call, which resulted as follows:

Nasca – Aye
Parmley – Aye
Prete – Aye
Foreman - Aye
Hogan – Aye

The motion was duly carried.

Griffin stated that the Agency would have to act on a 60-day cancellation of parking lots owned by the IDA, which were leased, to area businesses. Iron Horse Depot will now need to use these lots for employee parking. A motion was made by Shawn Hogan, seconded by George Prete to give authority to Mr. Griffin to sign necessary papers for parking lot lease cancellations. The motion was duly put to a vote on roll call, which resulted as follows:

Nasca – Aye
Foreman – Aye
Prete – Aye
Parmley – Aye
Hogan – Aye

The motion was duly carried.

NEW BUSINESS

Palmesano Letter - Griffin stated he had received copies of letters from Assemblyman Phil Palmesano and Brian McMahon for NYSEDC requesting Governor Andrew Cuomo to amend the Executive Budget that would withdraw the provision relating to the ability of IDA's to abate the state portion of the Sales Tax used by IDA's. They expressed their concerns regarding the executive budget proposal, which would restrict the use of state sales tax benefits by local IDA's to Excelsior qualified projects only. He strongly urged reconsideration of the proposal.

NYSEDC Lobbying - Mr. Griffin submitted a bill for approval from the NYSEDC for funding lobbying efforts for IDA's. A motion was made by Dave Parmley, seconded by George Prete to approve payment of $2,000 to NYSEDC for lobbying purposes for legislation regarding IDA's. The motion was duly put to a vote on roll call, which resulted as follows:

Nasca - Aye
Foreman – Aye
Prete – Aye
Parmley – Aye
Hogan – Aye

The motion was duly carried.

PEEBLES

Executive Director Griffin presented an Inducement Resolution authorizing the CHIDA to appoint Specialty Retailers as its agent for the purpose of undertaking the purchase of a parcel of land located at 33 Broadway Mall, renovation, reconstruction, and upgrading for retail space for the current tenant PEEBLES. The Agency will provide the company with a partial abatement from real property taxes with respect to the project, an exemption from NYS mortgage recording tax and a sales and use tax exemption for purchases and rentals related to the project; and execute a lease agreement, leaseback agreement and pilot agreement. The total project cost will be $1,135,000. Peebles will create four new positions and retain eight. A motion was made by David Parmley, seconded by Joseph Foreman to pass the Inducement Resolution and authorize the Executive Director to sign all necessary papers for the Peebles project. The motion was duly put to a vote on roll call, which resulted as follows:

Nasca – Aye
Parmley – Aye
Prete – Aye
Foreman – Aye
Hogan - Aye

The motion was duly carried.

There being no further business, the meeting was adjourned at 4:15 PM upon motion from Prete, seconded by Parmley. Carried All.

Respectfully submitted,

Joseph Foreman, Secretary