September 17, 2015

A regular meeting of the City of Hornell Industrial Development Agency was held on Thursday, September 17, 2015, at 4:00 PM.

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

ABSENT: Joseph Foreman, Secretary

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

Chairman Nasca called the meeting to order at 4:12 PM. Chairman Nasca reported that there was a quorum for the meeting as required by the by-laws. In the absence of the Secretary, Chairman Nasca presented the minutes of the July 23, 2015 meeting. A motion was made by Dave Parmley, seconded by George Prete to approve the minutes of the 7/23/15 meeting. Carried All.

Treasurer Shawn Hogan presented the audited financial statements for July and August that had been e-mailed to the Board prior to the meeting and reviewed by our accountants Mengel, Metzger, & Barr. A motion was made by Dave Parmley, 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 9/17/15 and approved bills in the amount of $96,737.90 from the operating account, and $103,506.00 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.

Personnel Committee – Chairman of the Personnel Committee, Shawn Hogan, reported that the Personnel Committee had met several times and has agreed to extend the Executive Director's contract for one year as is reflected in the Budget.

A motion was made by Dave Parmley, seconded by George Prete, to approve the actions of the Personnel Committee. Carried All.

Governance Committee – Chairman Nasca deferred his report until later in the meeting.

EXECUTIVE DIRECTOR'S REPORT

GMI – Griffin stated that he has been discussing with Dave Gray, owner of GMI, the sale of the building that Alstom leases from the Agency. Alstom leases the building to GMI at this point. The Agency would sell the building to GMI and remove Alstom from their lease.

Dave Gray stated that they founded the company in 2006 and the focus is on mass transit outside of the area. The business generated $6 million last year, $26 million this year and will generate $30 million next year, of this amount only $1.5 million is from contracts with Alstom, the majority of these contracts are from companies outside of our area. They also have $72 million in back log that will be used within 3 years. They have a contract with a company in Chicago that they send 8 car sets to a month and the company then builds the cars in their own plant. Dave Gray stated that they need to make some modifications to the Alstom building for their needs and they would like to purchase the building to do them.

A Resolution to authorize Griffin to continue to move forward with negotiations with GMI was presented by Shawn Hogan, seconded by George Prete. 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 – Abstained

The Resolution was duly adopted.

New Business – Chairman Nasca presented a resolution to adjust last year's budget by $82,000 due to increases in certain line items. Chairman Nasca stated that the Budget is an estimate of future expenses and therefore modifications are sometimes required.

A Resolution was presented upon motion by Shawn Hogan, seconded by George Prete to change the City of Hornell Industrial Development Agency's 2015 Budget. The motion was put to a vote on roll call which resulted as follows:

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

The Resolution was duly adopted.

Chairman Nasca presented a resolution to adopt the Hornell Industrial Development Agency 2016 Budget as presented. A discussion regarding line items was held and a resolution was presented upon motion by Dave Parmley, seconded by George Prete to adopt the 2016 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
Shawn Hogan - Aye
Joseph Foreman – Absent

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. A Resolution was presented upon motion by Dave Parmley, seconded by George Prete to accept the PILOT distribution for the 2016 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
Shawn Hogan - Aye
Joseph Foreman – Absent

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 along with the IDA legal consul had reviewed all policies and procedures. A motion was made by Shawn Hogan, seconded by Dave Parmley to adopt 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
David Parmley – Aye
Joseph Foreman – Absent

The Resolutions were thereupon duly passed.

Lowes QEZE Benefit- Executive Griffin stated that the Empire Zone benefits that Lowes has been receiving runs out next year and that he would request a resolution to reduce the PILOT amount to $400,000 next year and $300,000 the next year. A motion was made by Dave Parmley, seconded by George Prete to reduce the PILOT amount of Lowes.

The motion was put to a vote on roll call which resulted as follows:

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

The Resolution was duly adopted.

Executive Director Griffin stated that upon review of all of our projects, they are in compliance with original applications. Two of our projects operating are behind in payments and efforts are underway to bring them into compliance.

There being no further business, the meeting was adjourned at 4:40 PM.

Respectfully submitted,

Joseph Foreman, Secretary