City of Syracuse Industrial Development Agency 333 West Washington St, Suite 130 Syracuse, NY Tel (315) Fax (315)
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1 City of Syracuse Industrial Development Agency 333 West Washington St, Suite 130 Syracuse, NY Tel (315) Fax (315) Minutes Board of Directors Meeting Tuesday April 21, 2015, 8:30 A.M. Common Council Chambers 316 City Hall 233 East Washington St. Syracuse, NY Board Members Present: Pamela Hunter, Steven Thompson, Donald Schoenwald, Esq., Catherine Richardson, Esq. Board Member Absent: William Ryan. Staff Present: Ben Walsh, Judith DeLaney, Debra Ramsey Burns, John Vavonese, Thomas Babilon, Esq., Susan Katzoff, Esq. Others Present: Aggie Lane, Barry Lentz, Mark McNamara, Eric Glynn. I. Call Meeting to Order Ms. Richardson called the meeting to order at 8:30 a.m. II. Roll Call Ms. Richardson acknowledged all Board members were in attendance with the exception of Mr. Ryan, who was excused. III. Proof of Notice Ms. Richardson noted notice of the meeting had been timely and properly provided. IV. Minutes Ms. Richardson asked for a motion to approve the minutes from March 5, 2015 Board of Directors meeting. Ms. Hunter made a motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE MINUTES FROM THE MARCH 5, 2015 BOARD OF DIRECTORS MEETING. V. New Business Syracuse SOMA, LLC
2 Mr. Walsh noted the Company had submitted an application for financial assistance to the Agency and advised the Board they were being asked to authorize a Public Hearing for the Project. He then reviewed the application for the Board noting a copy was included in the Board s Agenda packet. He advised the owners intend to construct a 27,000 sq. ft. addition to the existing Amos Building at West Water Street, which will include 6,000 sq. ft. of commercial space on the ground floor and 24 one and two bedroom residential units on the upper floors. He said the cost of the Project was estimated to be $3.6 million with 25 construction and three permanent jobs expected to be created. He noted the owners were asking for benefits from the Agency including a restated PILOT, and mortgage and sales tax exemptions. Mr. Walsh also advised the Agency s consultant from NDC was preparing a cost benefit analysis of the Project, which would be shared with the Board upon receipt. Ms. Katzoff advised Syracuse SOMA, LLC (Amos Building) is a current Project of the Agency with an existing PILOT and any approval by the Board would be an amendment to that Project. Ms. Richardson asked if the new addition would be connected to the existing building. Mr. Walsh confirmed it would be and said the owners intended to resubdivide the property into one parcel. There being no further discussion, Ms. Richardson asked for a motion to approve the resolution. Ms. Hunter made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION DETERMINING THAT THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF A COMMERCIAL FACILITY AT THE REQUEST OF THE COMPANY CONSTITUTES A PROJECT; DESCRIBING THE FINANCIAL ASSISTANCE IN CONNECTION THEREWITH; AND AUTHORIZING A PUBLIC HEARING Ms. Katzoff then asked the Board to approve a SEQRA resolution declaring the Agency as Lead Agency for the Project. There being no discussion Ms. Richardson asked for a motion to approve the resolution. Mr. Schoenwald made the motion. Mr. Thompson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION CLASSIFYING A CERTAIN PROJECT AS A TYPE I ACTION AND DECLARING THE INTENT OF THE CITY OF SYRACUSE INDUSTRIAL DEVELOPMENT AGENCY TO BE LEAD AGENCY FOR PURPOSES OF A COORDINATED REVIEW PURSUANT TO THE STATE ENVIRONMENTAL QUALITY REVIEW ACT. 360 Warren Associates, LLC Ms. Katzoff advised the Board they were being asked to authorize a Public Hearing on the Project. Mr. Walsh said the Company s project (Onondaga Tower) was originally authorized by the Board in 2011 and entailed a gut renovation of the largely vacant 130,000 sq. ft. building. He noted previously the Agency had approved an extension of the sales tax appointment through April 20, 2015 in an amount not to exceed $139, He said the Project experienced some delays in lease up of the building and is requesting an extension of the Agency Agreement and an additional increase in the sales tax benefit to $277, He noted the Board s Agenda packet contained correspondence from the Project, which
3 included a contract status report. Mr. Walsh then introduced Timothy Lynn, the Company s counsel, to speak to the Board. Mr. Lynn told the members the Company continues to renovate the building in segments as each new tenant moves in and that the cost of construction has increased to satisfy the needs of credit worthy tenants. He said the majority of the infrastructure work has been completed leaving construction of tenant spaces to be completed. After a brief discussion, Ms. Richardson asked for a motion to approve a Public Hearing. Mr. Schoenwald made the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION AUTHORIZING A PUBLIC HEARING IN CONNECTION WITH THE COMPANY S REQUEST FOR AN EXTENSION OF THEIR AGENCY APPOINTMENT AND AN INCREASE IN FINANCIAL ASSISTANCE. 538 Erie Boulevard West, LLC Ms. Katzoff advised the Board they were being asked to approve a resolution authorizing a temporary sales tax appointment and extension of the Agency Agreement until December 31, 2015 for the Company. She noted the Board had authorized mortgage and sales tax exemption benefits for the Project in May of 2014 for the proposed gut renovation of the 53,000 sq. ft. vacant structure at 538 Erie Blvd. West into a mixed use commercial/residential building. She said the Project closing had been delayed due to financing issues however the Company needed to start work as soon as possible to make critical repairs. Timothy Lynn, the Company s counsel, addressed the Board noting he was also a part of the development team. Mr. Lynn said the issues surrounding historic tax equity for the Project had delayed a closing of the financing but indicated most had been resolved and the Company was now waiting only for its Part 2 approval from SHPO and the National Park Service. He said he hoped to close on construction financing within several weeks. In the interim he said non historic work needed to be completed to stabilize the property. After a brief discussion Ms. Richardson asked for a motion to approve the resolution. Mr. Schoenwald made the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION APPROVING AN EXTENSION OF AND AMENDMENTS TO THE AGENCY AGREEMENT BETWEEN THE AGENCY AND THE COMPANY AND APPROVING THE ISSUANCE OF A TEMPORARY SALES TAX APPOINTMENT LETTER AND THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH. Alexander Properties, LLC Ms. Katzoff advised the Board they were being asked to approve a resolution authorizing the Agency to participate in mortgage refinancing for the Project. She noted the Company was refinancing to reduce the principal on its mortgage.
4 There being no discussion, Ms. Richardson asked for a motion to approve the resolution. Mr. Schoenwald made the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION APPROVING THE AGENCY S PARTICIPATION IN THE REFINANCING OF THE CURRENT LOAN AND DELIVERY OF A NEW MORTGAGE AT THE REQUEST OF THE COMPANY IN CONNECTION WITH THE PROJECT FACILITY AND AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH. Brian G. Barr, James B. Barr / Crestview Cadillac Corp. / Autorow Realty, LLC/Team#1 Automotive, Inc. Ms. Katzoff advised the Board they were being asked to approve a resolution authorizing the amendment of lease documents previously executed by the Agency and the Company allowing the Company to proceed with Phase 2 of its Project. She noted the project approved by the Board in November of 2013 contemplated multiple phases to include the renovation of the Crest Cadillac building on West Genesee St. (phase one) and the renovation of the Crest Acura facility and the partial demolition of the Lamar Advertising Building (phase 2). There being no discussion Ms. Richardson asked for a motion to approve authorizing the resolution. Mr. Schoenwald made the motion. Mr. Thompson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION AUTHORIZING AN AMENDMENT TO THE AGENCY LEASE AND OTHER TRANSACTIONAL DOCUMENTS ENTERED BETWEEN THE AGENCY AND THE COMPANY IN NOVEMBER 2013 AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS IN CONNECTION THEREWITH. New Urban Space Project Mr. Walsh advised the Board was being asked to approve a resolution at the request of the Syracuse Urban Renewal Agency (SURA), authorizing SIDA s participation in the redevelopment of two parcels of land owned by SURA commonly known as Perseverance Park and the adjacent former Common Center bus transfer plaza into a the new urban space park (the Project ) through the execution and delivery of an inter agency agreement between SIDA and SURA and the commitment of funds by SIDA in an amount not to exceed $200, for the purpose of designing the Project. The properties are prominently positioned in the center of the downtown business district, are under utilized and considered dead space. SURA s plan, through its partnerships with other public and private entities, is to make transformational changes to the space to improve its physical environment with the goal of making it a vibrant space merging great art and design into an economic and cultural asset for the entire community thereby promoting additional investment into the area. Mr. Walsh introduced Kate Auwaerter from the Syracuse Onondaga County Planning Agency (SOCPA) Ms. Auwaerter advised that SURA had obtained proposals from various design firms and selected one to assist in the design and development of the Project. She noted the total Project cost was estimated to be $2.5 to 3 million but that the first phase of the Project, the design phase, was estimated to cost $. SURA s request of SIDA pertains solely to the First Phase. Ms. Auwaerter, further noted the selected proposal had been included in the Board s agenda packet. Ms. Auwaerter also commented this project was a priority for the Mayor, who was very involved in the process.
5 Ms. Richardson agreed the space was blighted and in need of a redesign. Ms. Hunter noted the space was not large and asked what might be constructed there. Ms. Auwaerter responded that the purpose of the design team to advance suggestions for the design based on public comment and their own expertise. Ms. Hunter also asked about the adjacent parking lot. Mr. Walsh confirmed the parking lot was not part of the Project. Mr. Schoenwald commented that while he liked the idea of the parcels being converted to a park like setting, he wasn t clear as to what the design team was proposing. Ms. Auwaerter responded the design team was chosen based on their qualifications and accomplished design projects completed for other communities. Ms. Katzoff added that the goal was for the design firm to work with SURA and SIDA to arrive at a plan design that will further the goals of the Project. Ms. Katzoff advised the Board that SURA was seeking out partnerships with several other community partners including the Onondaga Civic Development Corporation (OCDC) and the Project would not move forward without the support of all. Ms. Hunter asked if SIDA had the funds available to spend on this Project. Mr. Walsh responded in the affirmative and said the funding would be allocated rom the Destiny Extension Fees fund. After further discussion among the Board members a consensus was reached and Ms. Richardson asked for a motion to approve the resolution. Mr. Schoenwald made a motion. Mr. Thompson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION AUTHORIZING THE AGENCY S PARTICIPATION IN AN INTER AGENCY AGREEMENT TO SUPPORT THE DESIGN OF NEW URBAN SPACE PROJECT IN THE CITY OF SYRACUSE AND AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH AND THE EXPENDITURE OF FUNDS IN SUPPORT THEREOF. 706 North Clinton LLC Ms. Katzoff advised the Board she was requesting a waiver of a potential conflict of interest relative to the Project. Ms. Katzoff s firm is representing SIDA and 706 North Clinton, LLC in a litigation matter involving the Project. Heuber Breuer Construction is a co defendant in that action. The firm represents Heuber Breuer in unrelated matters. Our representation of Heuber Breuer in matters unrelated to the Project matter creates a potential conflict. Heuber Breuer has given Hiscock & Barclay a waiver of conflicts in this action. There being no discussion, Ms. Richardson asked for a motion to approve a waiver of potential conflict of interest relative to the Project. Mr. Schoenwald made the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A WAIVER OF A POTENTIAL CONFLICT OF INTEREST. Housing Visions Unlimited, Inc. Ms. Katzoff advised the Board she was requesting a waiver of a potential conflict of interest relative to Housing Visions. Ms. Katzoff, indicated that she had closed several matters undertaken in the City of
6 Syracuse, NY on behalf of SIDA with one or more of the Housing Vision entities. Housing Visions has asked an attorney in her office to represent the entity in an unrelated tax assessment matter in a separate County. There being no discussion, Ms. Richardson asked for a motion to approve a waiver of potential conflict of interest relative to the Project. Mr. Schoenwald made the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A WAIVER OF A POTENTIAL CONFLICT OF INTEREST. PCO Ms. Katzoff advised the Board she was requesting a waiver of a potential conflict of interest.. She noted her firm had been retained to defend a store owner relative to a slip and fall at a store located at a mall in Dutchess County. The mall itself is owned by Poughkeepsie Galleria, LLC (the Mall Owner ) and is managed by Pyramid Management Group ( PMG ). The Mall Owner and PMG have tendered their defense of the action to the client pursuant to the terms of their lease agreement. Ms. Katzoff wanted to advise the board of the relationship and the representation. She indicated that there is no connection in the matter to the SIDA Projects for Destiny and or Carousel other than perhaps a distant membership interest in the corporate hierarchy. There being no discussion Ms. Richardson asked for a motion. Mr. Schoenwald made the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A WAIVER OF POTENTIAL CONFLICT OF INTEREST. Lakefront Redevelopment Area Mr. Walsh advised the Board they were being asked to approve two resolutions regarding contracts for both grounds maintenance and streetscape repair in the Lakefront Redevelopment area. Mr. Walsh reported that, pursuant to the Agency s Procurement Policy, bids had been requested for the annual Lakefront grounds maintenance work, as well as some additional streetscape repair work, to support the Agency s long term investment in the Lakefront Redevelopment Area. In accordance with past practice, the Agency s restricted Lakefront funds would be used to support the work. Due to the fact that bids had not yet been received, Mr. Walsh was requesting that the Board authorize the Chairman to enter into contracts with the lowest responsible bidders. Ms. Hunter asked if the City s recent Ban the Box Ordinance would apply to the Agency s contractors. Mr. Walsh, noting the contract was with SIDA as opposed to the City, responded that he doesn t believe so but said we would confirm. Mr. Thompson asked if the ground maintenance proposals all included the same level of service (number of cuts, etc ). Mr. Walsh responded that he believe so but said he would confirm. Ms. Richardson asked for a motion to approve resolutions authorizing the Chairman of the Agency to enter into contracts for both grounds maintenance and streetscape repair in the Lakefront Redevelopment Area. Mr. Schoenwald made the motion. Ms. Hunter seconded the motion. ALL BOARD
7 MEMBERS PRESENT UNANIMOUSLY APPROVE RESOLUTIONS AUTHORIZING THE CHAIRMAN OF THE AGENCY TO ENTER INTO CONTRACTS FOR BOTH GROUNDS MAINTENANCE AND STREETSCAPE REPAIR IN THE LAKEFRONT REDEVELOPMENT AREA. VI. Executive Session Ms. Richardson asked for a motion to adjourn to executive session to discuss pending and potential litigation. Mr. Schoenwald made the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A MOTION TO ADJOURN TO EXECUTIVE SESSION AT 9:27 A.M. Ms. Richardson asked for a motion to adjourn from executive session. Ms. Hunter made the motion. Ms. Richardson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A MOTION TO ADJOURN FROM EXECUTIVE SESSION AT A.M. SYRACUSE COMMUNITY HOTEL RESTORATION COMPANY 1, LLC A motion was made by Mr. Schoenwald to authorize counsel for the Agency in the Eminent Domain action to enter into settlement negotiations with counsel for lienholders within given parameters. Mr. Thompson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A MOTION TO AUTHORIZE COUNSEL FOR THE AGENCY IN THE EMINENT DOMAIN ACTION TO ENTER INTO SETTLEMENT NEGOTIATIONS WITH LIENHOLDERS WITHIN GIVEN PARAMETERS. VII. Adjournment There being no further business to discuss, Ms. Richardson asked for a motion to adjourn the meeting. Mr. Schoenwald made the motion. Mr. Thompson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A MOTION TO ADJOURN THE MEETING AT 11:59 A.M.
City of Syracuse Industrial Development Agency 333 West Washington St, Suite 130 Syracuse, NY Tel (315) Fax (315)
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