SYNOPSIS OF MEETING. J. Bernardo, W. Howard, J. Stevens, S. Feehan, R. Bucci, M. Pinker, D. Crocker and J. Peduto

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1 BOARD MEETING FIVE South College Drive; Suite 201, 2nd Floor BROOME COUNTY INDUSTRIAL DEVELOPMENT AGENCY Binghamton, New York Wednesday, December 19, 2018, 12:00 pm SYNOPSIS OF MEETING PRESENT: ABSENT: GUESTS: STAFF: COUNSEL: PRESIDING: J. Bernardo, W. Howard, J. Stevens, S. Feehan, R. Bucci, M. Pinker, D. Crocker and J. Peduto D. Marusich Carrie Wenban, Levene Goldin & Thompson, LLP Jeff Platsky, Press & Sun-Bulletin John Solak, Resident Jeff Smetana, Newman Development Brian Haynes, Resident Kevin McManus, Deputy County Executive K. McLaughlin, T. Gray, C. Norton, N. Abbadessa and C. Hornbeck J. Meagher J. Bernardo Chairman Bernardo called the meeting to order at 12:00 p.m. ITEM #1. APPROVE MINUTES FOR THE NOVEMBER 28, 2018 BOARD MEETING: Chairman Bernardo asked if Board Members had a chance to review the minutes for the November 28, 2018 Board Meeting; hearing no comments, Chairman Bernardo asked for a motion. MOTION: On a MOTION by Mr. Bucci, seconded by Mr. Howard, Chairman Bernardo stated the minutes are accepted. ITEM #2. PUBLIC COMMENT: Chairman Bernardo asked if there were any public comments. At that time, Mr. Solak, Binghamton, NY, addressed the Board, regarding: Increase of the Sales Tax Exemption to Newman Morgan Communities (50 Front Street). Binghamton University development/growth. Suggestion for development of Broome County Parks.

2 December 19, 2018 Page 2 Purchase of River Run property. Labor policy; job creation component. ITEM #3. EXECUTIVE DIRECTOR S REPORT: Mr. McLaughlin provided updates on the following: Regional Economic Development Council (REDC) Awards Mr. McLaughlin and Ms. Duncan attended the REDC Awards Ceremony yesterday in Albany. While not one of the five big winners, Broome County did well: Amphenol, a project supported by The Agency, was awarded $400, Willow Run Foods was awarded $1,150, for their expansion. Rockwell Collins was awarded $375, for R & D work. The Veterans Center, involving the County Executive, was awarded $620, The Deposit Community Park will receive $482, to develop a new park. The Village of Whitney Point will use their award of $565, to gain access to the river across from Aiello s Restaurant a three-year project. There were other projects, but these were the major ones. Mr. McLaughlin stated he would provide a list, if requested. Public Hearings Mr. McLaughlin addressed the Public Hearing issue: Mr. McLaughlin and Attorney Meagher searched the statutes and discussed procedure with The Agency s counterparts around the region; the counterparts handle their public hearings exactly how The Agency does an individual from The Agency, or the Attorney hold the Public Hearing. The transcripts are completed and distributed to the Board for their review prior to the Board Meeting. Mr. McLaughlin stated the concern is, if The Agency must hold a Public Hearing requiring five members of the Board attend, and there is no quorum, the project could be held up for 30 days. Attorney Meagher added that would be a 30-day minimum. Attorney Meagher continued it is very difficult to schedule these, because the county has requested The Agency hold these Public Hearings, if possible, in the evening. There are only four evenings a week (excluding Friday, Saturday or Sunday nights). The hearings must be held in the Jurisdiction where the project is located (and not at The Agency office). Once the Public Hearing Notice is in the publication, the chance of getting another one within a

3 December 19, 2018 Page 3 30-day period is all but impossible. These would turn into 90-day transactions. Mr. McLaughlin advised any Board Member is invited and encouraged to attend. Mr. McLaughlin stated their recommendation to the Board is to keep The Agency s Public Hearing process the same. If there was no stenographer and legal document (word-for-word transcript) provided to the Board, it would be different. Attorney Meagher stated the purpose of these Public Hearings is not for the Board to come speak on the project; it is for The Agency to get comment from the public about the project and the information should be flowing from the public to The Agency. Mr. Stevens added, there is no vote, there is no decision; it is strictly to gather community input. Mr. McLaughlin added that the Board Meeting has an open public session for any commentary. Attorney Meagher concluded The Agency is in compliance with the Open Meeting Law. ITEM #4. LOAN FUNDS AVAILABILITY AS OF NOVEMBER 30, 2018: The Loan Funds Availability Report was presented to the Board. The balances available to lend are $438, (STEED), $333, (BDF) and $150, (BR + E). Chairman Bernardo asked if there were any questions of Ms. Norton or Mr. Gray. Mr. Feehan inquired regarding the delinquent account collection. Mr. Gray advised The Agency is pursuing SpecOp and Mountain Fresh Dairy (Mountain Fresh). Mr. Gray stated Mountain Fresh is paying; The Agency received a payment in November. Attorney Meagher advised a Summons and Complaint has been filed in the (Mortgage) Foreclosure action on behalf of the Agency and the Binghamton Local Development Corporation. Mr. Feehan asked if that meant both matters. Attorney Meagher replied not SpecOp, but Mountain Fresh. Attorney Meagher asked Ms. Norton if The Agency received ACH payments; Ms. Norton s reply was yes. Mr. Bucci asked how many months behind? Mr. Gray responded the first 30 days happened a year ago; they were always 30 and they stopped paying The Agency. As stated, The Agency received a payment in November; Mr. Gray is unsure if this will continue. Attorney Meagher asked if the City received a payment; Mr. Gray responded no. Chairman Bernardo asked for clarity on SpecOp: Mr. Stevens responded that legal proceedings have been initiated. Attorney Meagher confirmed the notices were sent out. Chairman Bernardo asked if there were further questions or comments; hearing none, Chairman Bernardo moved on to new business. MOTION: No motion necessary. ITEM #5. RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR, ON BEHALF OF THE AGENCY, TO ENTER INTO AN OPTION AGREEMENT WITH RIVER RUN II GOLF LINKS, LLC ( RIVER RUN ) FOR PROPERTY LOCATED AT 912 NEW YORK STATE ROUTE 11 IN THE TOWN OF KIRKWOOD, BROOME COUNTY, NEW YORK, IN AN AMOUNT OF $840,000.00, $10, OF WHICH WILL BE DUE AT THE EXECUTION OF THE

4 December 19, 2018 Page 4 OPTION AGREEMENT WITH THE REMAINING $830, DUE AND PAYABLE WHEN THE PARCEL IS SOLD BY RIVER RUN TO THE AGENCY: Mr. McLaughlin stated this parcel of land is the former River Run Golf Course owned by the Gorick family. The Gorick family has decided to close the golf course. When Mr. Gorick advised The Agency of this, staff thought it would be very beneficial for The Agency to get an option on this land, as it is on the rail. The Agency had an appraisal done; the $840, price has been accepted by the Gorick family. Although some of the property lies within the flood way, the majority of the land is high and dry, even up to the 2011 flood. The Agency hopes to attract companies typically looking for rail. As Mr. Bucci mentioned, even as Mayor, he had multiple inquiries regarding rail service. Up to this point, The Agency has never had land available for any type of rail access. Mr. McLaughlin stated that for a year, or maybe longer, it would be very beneficial for the Board to control this parcel of land, recommending Board approval. Chairman Bernardo asked the Board if there were questions or comments. Mr. Pinker requested more clarification: the Gorick family s intentions. Mr. McLaughlin clarified that up until October, the golf course was open; the family decided to get out of the golf business because it was not profitable. The Agency felt it would be advantageous to control that 30-acre parcel of land. The Agency does get inquiries for rail land, or just industrial land, and this is perfect. Mr. McLaughlin continued the property is in the Town of Kirkwood, with great access to I81 and I86. Mr. Pinker asked if the Gorick family attempted to market the property; Mr. McLaughlin answered no. Mr. McLaughlin stated when Mr. Gorick came in to speak with The Agency, Mr. Gorick commented that the property was in better hands with The Agency. Mr. Bucci asked about an exploratory study; Attorney Meagher advised most of that would be done by an end user; if The Agency finds a user, the option would be assigned to them for due diligence. Chairman Bernardo asked if there were any other questions; hearing none, Chairman Bernardo requested a motion. MOTION: To authorize the Executive Director, on Behalf of The Agency, to Enter into an Option Agreement with River Run II Golf Links, LLC ( River Run ) for Property Located at 912 New York State Route 11 in the Town of Kirkwood, Broome County, New York, in an Amount of $840,000.00, $10, of which will be Due at the Execution of the Option Agreement with the Remaining $830, Due and Payable when the Parcel is Sold by River Run to The Agency. On a MOTION by Mr. Stevens, seconded by Mr. Bucci, the MOTION CARRIED UNANIMOUSLY. ITEM #6: RESOLUTION APPROVING AN INCREASE IN THE SALES AND USE TAX EXEMPTION FOR THE 50 FRONT STREET ASSOCIATES, LLC LEASE/LEASEBACK PROJECT FROM $641, TO $823,000.00: Mr. McLaughlin stated he invited Mr. Smetana, of Newman Development, to address the Board on behalf of 50 Front Street Associates. Mr. Smetana provided an extensive explanation describing the project, defining the necessity for the increase, supported by Attorney Wenban. During the explanation, Mr. Smetana requested an increase of $200, from $641,000 to a total of $841, (as opposed to

5 December 19, 2018 Page 5 $823,000.00). A lengthy question and answer period followed to justify the increase to $841, Chairman Bernardo then requested a motion. MOTION: Mr. Stevens Moved to Approve an Increase in the Sales and Use Tax Exemption for the 50 Front Street Associates, LLC Lease/Leaseback Project, increasing the Exemption to $841, The MOTION was seconded by Mr. Pinker; the MOTION CARRIED UNANIMOUSLY. Chairman Bernardo stated going forward, Mr. Feehan raised a good point from a technical perspective: providing accurate estimates and the practice of due diligence by an organization. Board Members and Mr. McLaughlin concurred. Mr. McLaughlin advised it is The Agency s procedure to companies that are applying now, to ensure that number is accurate. Chairman Bernardo asked if there is any other business before going into Executive Session. Hearing none, Chairman Bernardo asked for a motion. ITEM #7. EXECUTIVE SESSION: TO DISCUSS THE PROPOSED ACQUISITION AND SALE OF REAL PROPERTY: MOTION: To convene to Executive Session at 12:58 p.m. On a MOTION by Mr. Feehan, seconded by Mr. Stevens, the MOTION CARRIED UNANIMOUSLY. ITEM #8: RECONVENE TO PUBLIC SESSION. MOTION: To reconvene back to public session at 1:14 p.m. On a MOTION by Mr. Stevens, seconded by Mr. Bucci, the MOTION CARRIED UNANIMOUSLY. ITEM #9: ADJOURNMENT: Chairman Bernardo requested a motion for adjournment. MOTION: On a MOTION by Mr. Stevens, seconded by Mr. Howard, the MOTION CARRIED UNANIMOUSLY, and the meeting was adjourned at 1:15 p.m. The next meeting of The Agency Board of Directors is scheduled for Wednesday, January 15, 2018 at 12:00 p.m. at FIVE South College Drive, Suite 201, Binghamton, NY