March 23, 2017

The regular meeting of the City of Hornell Industrial Development Agency was held on Thursday, March 23, 2017, at 4:00 PM.

PRESENT: Samuel Nasca, Chair
George Prete, Vice Chair
Shawn Hogan, Treasurer, CFO
David Parmley, Assistant Treasurer

ABSENT: Joseph Foreman, Secretary

ALSO PRESENT: James Griffin, CEO, Executive Director
Margaret Frungillo, Administrative Assistant
Bill Dugan, WLEA

Chairman Nasca called the meeting to order at 4:30 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 15, 2016 meeting. A motion was made by Dave Parmley, seconded by George Prete to approve the minutes of the 12/15/16 meeting. Carried All.

Treasurer Shawn Hogan presented the financial statements for December, January and February that had been e-mailed to the Board prior to the meeting for their review. A motion was made by Shawn Hogan, seconded by George Prete 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 1/12/17 and approved bills for December in the amount of $56,272.80, meet in February and approved $41,744.42 for January and meet in March and approved $66,028.20 for February for a total of $164,045.42 from the operating account, and bills for $27,115.36 in December and $150,392.00 in February for a total of $177,507.36 from the Escrow Acct. A motion was made by Dave Parmley, seconded by Shawn Hogan, to approve the actions of the Audit Committee. Carried All.

Chairman of the Audit Committee, George Prete, distributed copies of the Draft Audit for the Board to review for discussion at our next meeting. A motion was made by Dave Parmley, seconded by George Prete to acknowledge the Draft Audit had been received. Carried All.

Personnel Committee – Chairman of the Personnel Committee Shawn Hogan requested a motion to renew the Executive Director James Griffin for a two year term with no changes in the agreement. Chairman Hogan stated that he had met with the other Board members and they were in agreement that in this busy time with so many projects being developed that continuity is important. A motion was made by Dave Parmley seconded by George Prete to approve the agreement as presented. Carried All.

Governance Committee- Chairman of the Governance Committee, Samuel Nasca, reported that, in accordance with the Authorities Budget Office policy guidance for restrictions on Grants and Loans made by Public Authorities, Section 15-01 should be added to our procurement policy. A motion was made by George Prete, seconded by Dave Parmley, to approve including Section 15-01 in the IDA procurement policy. The motion was put to a vote on roll call, which resulted as follows:

Samuel Nasca – Aye       George Prete – Aye
Shawn Hogan – Aye       Joseph Foreman – Absent
David Parmley – Aye

The Resolution was duly adopted.

EXECUTIVE DIRECTOR'S REPORT

Gray Manufacturing- Executive Griffin asked for a resolution to grant the company the option to purchase the facility at 6258 Ice House according to the lease agreement. The first option is $500,000 less ½ of rent payments made, the purchase price will be $391,700.00. Based on the Company exercising this option, the Company has requested amending the PILOT agreement and to extend the length of the tax period by 10 years at of 100% of the purchase price. Motion by Dave Parmley, seconded by George Prete to adopt the resolution as prepared by Harris Beach allowing closing of the sale to Gray Manufacturing. The motion was put to a vote on roll call, which resulted as follows:

Samuel Nasca – Aye         George Prete – Aye
Shawn Hogan – Aye         Joseph Foreman – Absent
David Parmley – Aye

The Resolution was duly adopted.

Alstom- Executive Director Griffin requested the authority to enter into negotiations with Alstom regarding their lease and PILOT payments in order to bring an agreement to the Board for approval. A motion was made by George Prete, seconded by Dave Parmley, to give the Executive Director the authority to enter into negotiations with Alstom. Carried All.

Amexstra- Griffin stated that Jason Rodd, owner of Amexstra, is taking a loan from Maple City Bank to purchase new equipment between now and August. Amexstra is planning on purchasing the building from the Agency but due to the agreement the Agency has with the previous owner the Agency cannot sell the building until August. Executive Director Griffin recommended giving up 1st mortgage to the lending institution to allow Amexstra to receive the loan they require for equipment. A motion was made by Shawn Hogan, seconded by George Prete to relinquish 1st mortgage on 27 Bank Street. The motion was put to a vote on roll call, which resulted as follows:

Samuel Nasca – Aye      George Prete – Aye
Shawn Hogan – Aye      Joseph Foreman – Absent
David Parmley – Abstain

The Resolution was duly adopted.

Executive Griffin requested a motion to extend Amexstra's sale tax exemption to December 31, 2017 for renovations still being completed in the building. A motion was made by George Prete, seconded by Dave Parmley to extend the sales tax exemption to December 31, 2017. The motion was put to a vote on roll call, which resulted as follows:

Samuel Nasca – Aye      George Prete – Aye
Shawn Hogan – Aye      Joseph Foreman – Absent
David Parmley – Aye

The Resolution was duly adopted

Bassett Airport- Executive Director Griffin stated that the agreements for the project at the Airport are still being finalized and the land will stay in the IDA's name for tax purposes until Phase 1 is completed. If Bassett develops the first parcel of 11.65 acres with 65 units at a cost of $6.5 million within five years they are requesting an additional 15.39 to begin Phase 2. The IDA will negotiate right of first refusal for the five year term.

Riedman- The Riedman project for developing townhouses on Fairlawn Avenue is planning on beginning construction on June 1, 2017.

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

There being no further business the meeting was adjourned at 5:15 PM upon motion by Dave Parmley, seconded by Shawn Hogan. Carried All.

Respectfully submitted,

Joseph Foreman, Secretary