October 15, 2018

The regular meeting of the City of Hornell Industrial Development Agency was held on Wednesday, August 15, 2018, at 12:00 PM.

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

ABSENT: John Carbone, Secretary

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

Chairman Nasca called the meeting to order at 12:04 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 June 28, 2018 meeting. Vice Chairman George Prete, Chairman of the Audit Committee, requested a correction in the minutes of the June meeting. Chairman Prete reported in June that the amount from the Operating account expenses was reported as $65,570.74, since then a check for $1,670.00 in June has been voided. The new amount for June is now $63,900.74. A motion was made by John Buckley, seconded by Dave Parmley to approve the changes in the June minutes as presented. Carried All.

A motion was made by John Buckley, seconded by George Prete to approve the minutes of the 6/28/18 meeting. Carried All.

Treasurer Dave Parmley presented the financial statements for June and July that had been e-mailed to the Board prior to the meeting for their review. A motion was made by George Prete, seconded by John Buckley to approve the financial reports as presented. Carried All.

COMMITTEE REPORTS

Audit Committee – Chairman of the Audit committee, George Prete, reported that the Audit Committee had met on 8/15/18 and approved bills for July in the amount of $41,849.28 from the operating account and approved $29,238.10 from the Escrow account for July.

Chairman Prete further reported the that the Audit Committee had met and reviewed the RFP's that had been submitted for providing audit services to the IDA. Chairman Prete reported that the Board has proposed that Mengel, Metzger Barr & Co. provide the services requested for the IDA. A motion was made by John Buckley, seconded by Dave Parmley to accept the proposal of the Audit Committee as presented. The motion was put to a vote on roll call which resulted as follows:

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

The Resolution was duly adopted.

A motion was made by John Buckley, seconded by Dave Parmley, to approve the actions of the Audit Committee. Carried All.

Personnel Committee – No Report

Governance Committee- Chairman of the Governance Committee Sam Nasca reported that the ABO has issued a new directive that all new project proposals and financial assistant applications be posted on the IDA web page in an effort to make the IDA's more transparent.

A motion was made by John Buckley, seconded by Dave Parmley, to approve the actions of the Audit Committee. Carried All.

A motion was made by John Buckley, seconded by Dave Parmley to enter into Executive Session under Public Officers Law, Article 7, Open Meeting LAW, Section 105, paragraph D. Carried All.

The meeting reconvened at 12:35 PM

EXECUTIVE DIRECTOR'S REPORT

David Jiusto- Griffin stated that David Juisto has offered to purchase two pieces of property adjacent to his property for $4,000.00.

CHIDA owns these two properties and has determined that these parcels are not significant for future use by CHIDA and one of the parcels was part of an optioned property given to Riedman. Riedman has agreed to release this 100' from their option and Rob Guy is also an adjacent land owner and has requested a 20' permanent easement on the parcel. Executive Director, James Griffin requested a motion to sell the two parcels to David Juisto for $4,000.00. A motion was made by John Buckley, seconded by George Prete to authorize the Executive Director, James Griffin, to sign a contract to sell the two parcels to David Juisto for $4,000.00 and be it further resolved that David Juisto will grant Rob Guy a 20' permanent easement on the parcel. The motion was put to a vote on roll call which resulted as follows:

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

The Resolution was duly adopted.

New Business –

Lin Industries- Executive Director Griffin stated that the building that the IDA owns and Lin Industries occupies needs the foundation repaired and has received a quote from James Herbert Contracting for $5,656.00. Griffin further stated that he had received a quote from Fred Johnson & Son to have the parking lot on the side of the building at 40 Main Street, the parking lots in the back and Elm Circle sealed for a quote of $3,600.00. A motion was made by Dave Parmley, seconded by John Buckley to accept the quotes and have the repairs completed. The motion was put to a vote on roll call which resulted as follows:

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

The Resolution was duly adopted.

Riedman- Executive Director Griffin stated that Riedman had originally been granted financial assistance for sales tax exemption for $256,000. Entering the next phase Riedman is requesting the sales tax exemption be extended until July 2019 and be increased to $450,000.A motion was made by Dave Parmley, seconded by George Prete to extend the sales tax exemption until July 2019 and increase the amount to $450,000. The motion was put to a vote on roll call which resulted as follows:

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

The Resolution was duly adopted.

Jet Smart- Executive Director Griffin stated that Jet Smart has sold the plane that they were purchasing from the IDA. The amount that was still owed was $104,147.46. Elite Aircraft has deposited that amount in our account which completes that purchase and completes that agreement.

Trikeenan- Executive Griffin stated that Trikeenan is having financial problems. Griffin reported that they have not made a payment on their lease for13 months and have made no attempt to pay on their PILOTS. Griffin stated that under the terms of their lease dated February 1, 2006 the Agency can evict Trikeenan as they have not met the requirements of the Lease Agreement and have outstanding debts owed to the Agency. Griffin requested a resolution to evict the tenant, Trikeenan Tileworks, Inc. from the facility. A motion was made by Dave Parmley, seconded by John Buckley to accept the resolution as submitted. The motion was put to a vote on roll call which resulted as follows:

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

The Resolution was duly adopted.

Strobels Supply- Griffin reported that Strobels Supply is interested in expanding and have outgrown the three buildings they occupy at this point. Griffin stated that they have shown an interest in the building now occupied by Trikeenan and have presented an acceptable application. Griffin further stated the he would like a resolution for the Hornell IDA to sell its interest in the facility to Strobels Supply and offer financial assistance to the company in the form of sales tax exemption for purchases and rentals related to the project, a mortgage recording tax exemption for the financing related to the project, real property tax exemption and execute a payment in lieu of tax agreement; provided the foregoing benefits shall not be provided until the Trikeenan tenant has been evicted. A motion was made by George Prete, seconded by Dave Parmley to accept the resolution as presented. The motion was put to a vote on roll call which resulted as follows:

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

The Resolution was duly adopted.

Railhead Brewery- Griffin reported that Railhead Brewery is still interested in the building next door for manufacturing their product. The IDA is still working with them and as soon as some title issues are resolved the IDA will continue with the project.

Marion Rohr- Executive Director Griffin stated that Park Grove Realty has received a $1,000,000 grant through the Restore NY program. The grant will go towards the redevelopment and demolition of the vacant building and the development of 21 loft apartments.

ESD- Griffin reported that he and Shawn Hogan will be meeting with Howard Zemsky, President and CEO of Empire State Development, and Donna Howell, Southern Tier Regional Director, to discuss some of the concerns that Griffin and Hogan have with the procedures used to award some of the available grants.

There being no further business the meeting was adjourned at 1:22 PM upon motion by Dave Parmley, seconded by George Prete. Carried All.

Respectfully submitted,

John Carbone, Secretary