March 15, 2018

The regular meeting of the City of Hornell Industrial Development Agency was held on Thursday, March 15, 2018, at 1:00 PM.

PRESENT: Samuel Nasca, Chair
               George Prete, Vice Chair
               Dave Parmley, Treasurer, CFO
               John Buckley, Assistant Treasurer
               John Carbone, Secretary

ALSO: James Griffin, CEO, Executive Director 
          Shawn Hogan, Executive Consultant
          Jamie Johnson, Executive Director, Steuben County IDA
          Margaret Frungillo, Administrative Assistant
          Bill Dugan, WLEA
          Jason Jordon, Evening Tribune

Chairman Nasca called the meeting to order at 1:00 PM. Chairman Nasca reported that there was a quorum for the meeting as required by the by-laws.

Secretary Carbone presented the minutes of the February 2, 2018 meeting. A motion was made by John Buckley, seconded by George Prete to approve the minutes of the 2/02/18 meeting. Carried All.

Treasurer Dave Parmley presented the financial statements for January and February that had been e-mailed to the Board prior to the meeting for their review. A motion was made by John Buckley, seconded by John Carbone 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 2/15/18 and approved bills for January in the amount of $108,019.58 and meet in March and approved $57,326.15 for February for a total of $165,345.73 from the operating account. A motion was made by Dave Parmley, seconded by John Buckley, to approve the actions of the Audit Committee. Carried All.

Personnel Committee – No Report
Governance Committee- No Report

EXECUTIVE DIRECTOR'S REPORT

Norfolk/Alstom- Executive Director Griffin stated that at the last meeting the Board had given him the authority to enter into negotiations with Norfolk Southern/Alstom for the leased property owned by Norfolk Southern near the Sunset. Griffin reported that all the documents have been completed for the amended lease and sub-lease and have been signed. Griffin requested a motion to ratify his signature of the documents. A motion was made by John Buckly, seconded by John Carbone to approve the signature of Executive Director Griffin on all documents for the lease and sub-lease between Norfolk Southern and Alstom. Carried All.

David Jiusto- Griffin stated that David Jiusto was interested in purchasing 3 parcels that the IDA that are not being developed by the Riedman Development Corporation. Jiusto would like to clean this land up and has no plans to develop. Stephen Hubertus surveyed the property that is approximately ½ acres located behind the apartments owned by Jiusto. Griffin stated that he would like to discuss disposal of the land or have it deemed surplus property and sell the land for fair market value. Griffin reported that he will continue to inform the Board of any developments.

Housing Authority- The Housing Authority would like to purchase the property that is located behind their property on E. Washington Street that the IDA owns. Griffin reported that it is a small parcel and he would like to turn the property over to the Housing Authority. Griffin stated the need to review some of these very small parcels that the IDA owns throughout the City and transfer to the adjacent property.

Trikeenan- Executive Griffin stated that Trikeenan is having financial problems. Griffin discussed with Steuben Trust the possibility of the IDA paying off the mortgage, this would give the IDA the clear mortgage to either keep Trikeenan or lease to another company. Griffin stated that the President of the company, Matt Galvez, is in town today and he will be meeting with him later today to reach a possible conclusions to these difficulties.

Iron Shore- Griffin reported the Iron Shore property has been put back on the tax rolls as of January 1st . Griffin stated that he has been in contact with the owner, Hewan Fraser, about developing the second building and he told him the IDA would discuss assistance with tax exemptions.

Flaum- Griffin reported that the IDA has hired Lu Engineers to do a wetlands environmental mediation study of the property located north of the Wegmans for possible development. Lu Engineers are required to wait until the area begins to bloom in the spring to determine what species of plants are growing there.

Draft Audit- Executive Director Griffin stated that we received the draft audit yesterday. The audit has to be entered into the PARIS report by March 31, 2018. We have been requesting the audit and management letter in order to complete the PARIS report on time. Drescher and Malecki stated that the Management letter was not complete but did not contain anything that would affect the report or anything of major importance.

Basset Project- Griffin reported that the property in Phase 1 of the project has been signed over to Basset. Griffin further reported that the documents to begin Phase 2 which is an additional 15.39 acres have been completed for Basset to begin the second phase of their project. If the property is not developed in five years it will be turned back over to the IDA. Griffin stated that they have already started receiving down- payments and expect to begin filling the townhouses in June.

Riedman- The Riedman project for developing townhouses on Fairlawn Avenue is nearing completion and they are planning to begin giving tours of the properties and taking deposits in the beginning of April.

Griffin states that both developments have new web-pages that show the layout of all townhouses along with the prices and applications available on the sites.

A motion was made by Dave Parmley, seconded by George Prete to accept the Executive's report as presented. Carried All.

Executive Consultant Report- Executive Consultant Shawn Hogan reported that the federal government has designated an Opportunity Zone Program for building Investments in Under-Served Communities. An Opportunity Zone can receive funds from Opportunity Funds to provide investors the chance to put that money to work rebuilding the community. This program allows each state to designate 25% of the total distressed census tract to the program. Hogan further reported that he will be submitting the short form by tomorrow. Hogan stated that the two census tracts located in the City cover approximately 90% of the City and include St. James Hospital (which will be vacate in the future), the Chamber of Commerce building and also Spitulnik's property (which is also considered Brown Field). The Governor will be receiving recommendations from the Empire State Development (ESD), New York Homes and Community Renewal (HCR) and the state's Regional Economic.

Executive Director James Griffin stated that he and Mayor Hogan will be meeting with Susan Payne and several of Alstom employees tomorrow to finalize the application for the URI monies. Griffin further stated that

Steuben County IDA Executive Director Jamie Johnson stated

There being no further business the meeting was adjourned at 1:35 PM upon motion by Dave Parmley, seconded by John Buckley. Carried All.

Respectfully submitted,

John Carbone, Secretary