October 4, 2018

A regular meeting of the City of Hornell Industrial Development Agency was held on Thursday, October 4, 2018, at 4:00 PM.

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

ALSO: James Griffin, CEO, Executive Director
Shawn Hogan, Executive Consultant
Margaret Frungillo, Administrative Assistant
John Dagon, Agency Attorney
Bill Dugan, WLEA
Jason Jordan, Evening Tribune Reporter

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. Secretary John Carbone presented the minutes of the August 15, 2018 meeting and the September 19, 2018 meeting. A motion was made by John Buckley, seconded by George Prete to approve the minutes of the 8/15/18 and 9/19/18 meetings. Carried All.

Treasurer Dave Parmley presented the financial statements for August 2018 that had been e-mailed to the Board prior to the meeting for their review. A motion was made by John Buckley, 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 9/27/18 and approved bills for August for $73,412.11 from the operating account. A motion was made by Dave Parmley, seconded by John Carbone, to approve the actions of the Audit Committee. Carried All.

Personnel Committee – No report at this time

Governance Committee- Chairman of the Governance Committee stated that he will refer his report for later in the meeting.

EXECUTIVE DIRECTOR'S REPORT

Railhead Brewing Company– Executive Director Griffin reported that Railhead Brewery has submitted an application to the Agency requesting assistance with the acquisition of fee title to certain property owned by the City of Hornell IDA located at 30 Park Drive, Hornell for a purchase price of $130,000 for the purpose of expanding the Company's brewing operations. Griffin requested a resolution authorizing him to negotiate and sign the Lease Agreement in connection with the project, negotiate an Agent, Financial Assistance and Project Agreement to the Company in the form of sales and use tax exemption for purchases and rentals related to the construction and equipping of the Project and sign the necessary agreements. A discussion was held regarding the cost benefit analysis of the project. Griffin explained that the sales tax benefit was expected to be below $1,000, property taxes remain the same and actually increase by 2% per cent per year. There would be no mortgage tax, their investment in equipment and job creation makes this project a huge benefit and very low cost! A motion was made by Dave Parmley, seconded by John Buckley 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 - Aye
John Carbone – Aye

The Resolution was duly adopted.

NEW BUSINESS-

Chairman Nasca presented a resolution to adopt the Hornell Industrial Development Agency 2019 Budget as presented. Griffin stated that this year there were estimated extra expenses due to the demolition and the asbestos study of the Sunset of $33,362. A discussion regarding line items was held and a resolution was presented upon motion by John Buckley, seconded by Dave Parmley to adopt the 2019 Hornell Industrial Development Agency Budget 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 - Aye
John Carbone – Aye

The Resolution was duly adopted.

Chairman Nasca presented the new Pilot Distribution schedule. Executive Director Griffin stated that the amounts were examined individually to ensure valid PILOT amounts and reviewed by the Steuben County Tax department. A Resolution was presented upon motion by Dave Parmley, seconded by John Carbone to accept the PILOT distribution for the 2019 year 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 Carbone - Aye
John Buckley – Aye

The Resolution was duly adopted.

Chairman Nasca presented a resolution calling for each member to review, approve and sign necessary policies for PARA and PAAA compliances stating that the Agency and all of its members had reviewed all policies and procedures and sent all policies and procedures to the Agency legal consul for review and further recommendations. A motion was made by Dave Parmley, seconded by George Prete to approve the policies as reviewed by the Board. The Resolution was duly put to a vote on roll call, which resulted as follows:

Samuel Nasca – Aye
George Prete – Aye
Shawn Hogan – Aye
John Buckley – Aye
John Carbone – Aye

The Resolution was thereupon duly passed.

There being no further business the meeting was adjourned at 4:13 PM upon motion by Dave Parmley, seconded by John Carbone. Carried All.

Respectfully submitted,

John Carbone, Secretary