City of Syracuse Industrial Development Agency 333 West Washington Street, Suite 130 Syracuse, NY Tel (315) Fax (315)
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1 City of Syracuse Industrial Development Agency 333 West Washington Street, Suite 130 Syracuse, NY Tel (315) Fax (315) Minutes Board of Directors Meeting Tuesday January 26, West Washington Street, Suite 130 Syracuse, NY Board Members Present: Kenneth Kinsey, M. Catherine Richardson, Esq., William Ryan, Donald Schoenwald, Esq., Steven Thompson. Staff Present: Ben Walsh, Judith DeLaney, Debra Ramsey Burns, John Vavonese, Thomas Babilon, Esq., Susan Katzoff, Esq. Others Present: See attached. Sharon Owens, Larry Losty, Matthew Paulus, Timothy Lynn, Esq., Richard Puchalski, Aggie Lane, James Trasher, Walter Dixie, Dennis Bachman, Scott Smith. Prior to the commencement of the Public Hearings, Mr. Ryan introduced and welcomed Kenneth Kinsey who was appointed by Mayor Miner to serve on the Agency s Board of Directors effective January 13, I. Public Hearings Bradford & Euclid, LLC Mr. Ryan opened the Public Hearing at 9:03 a.m. by reading verbatim the Notice of Public Hearing on the Project. He then asked if anyone in attendance wished to speak in favor of the Project. Matthew Paulus, an owner of the Project, spoke in favor. Mr. Paulus said the Project located at 225 Wilkinson St, the former R.E. Dietz building, has been owned by his father in law since He noted because of the historic nature of the building it was eligible for historic tax credits and the Company had submitted an application to SHPO for approval of the Project. He said the underutilized building would at project completion contain 89 market rate apartments, with first floor commercial space and enclosed. Ms. Katzoff asked when the owners anticipated a closing for the Project. Mr. Paulus responded they hoped to commence construction by April 1, Mr. Ryan then asked an additional two more times if anyone wished to speak in favor of the Project. No one else spoke in favor. Mr. Ryan then asked if anyone wished to speak in opposition of the Project. No one spoke. Mr. Ryan asked an additional two more times if anyone wished to speak in opposition of the Project. No one spoke in opposition of the Project.
2 Mr. Ryan closed the Public Hearing at 9:09 a.m. Jubilee Homes of Syracuse, Inc. / PRRC., Inc. Mr. Ryan opened the Public Hearing at 9:09 a.m. by reading verbatim the Notice of the Public Hearing on the Project. He then asked if anyone in attendance wished to speak in favor of the Project. County Executive Joanie Mahoney spoke in favor of the Project, saying she had met with several community organizations and was confident the Project would be a success. She noted the County had invested $400,000 into the Project and said it was gratifying to see it come to fruition. Reggie Seigler of the Urban Task Force, Sharon Owens, a board member of Jubilee Homes and CEO of the South West Community Center, and Richard Pulchalski of Syracuse United Neighborhoods all spoke enthusiastically in support of the Project. Additional members of the community speaking in favor of the Project included Aggie Lane, Twiggy Billue, and Barry Lentz. Denis Bachman, representing PriceRite, noted this was the Company s second store in the City and said he had never seen such strong community support for a grocery store before and his company was appreciative of the effort. Walter Dixie, Director of Jubilee Homes, also spoke in favor and thanked the Board for its consideration noting he had not been involved in a Project before that had seen as much collaboration from the various community and governmental organizations. Mr. Ryan then asked an additional two times if anyone else wished to speak in favor of the Project. No one else spoke in favor. He then asked if anyone in attendance wished to speak in opposition of the Project. No one spoke. Mr. Ryan asked an additional two more times if anyone wished to speak in opposition to the Project. No one spoke in opposition to the Project. Mr. Ryan closed the Public Hearing at 9:32 a.m. II. Call Meeting to Order Mr. Ryan called the meeting to order at 9:32 a.m. III. Roll Call Mr. Ryan acknowledged that all Board members were present. IV. Proof of Notice Mr. Ryan noted notice of the meeting had been timely and properly provided. Minutes Mr. Ryan asked for a motion to approve the minutes from the December 15, 2015 Board of Directors 2
3 meeting. Ms. Richardson made the motion. Mr. Thompson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE MINUTES FROM THE DECEMBER 15, 2015 BOARD OF DIRECTORS MEETING. V. Committee Reports Governance Committee Report Ms. Richardson advised the Board that at a meeting of the Governance Committee held at an earlier time this date, the Committee members reviewed the Comptrollers Audit and discussed the Agency s written response. She noted based on that response staff would be preparing a corrective action plan (CAP) which will be reviewed at a future meeting. She also said she would like to suggest a study session for Board members be scheduled sometime in April. VI. New Business NYS Comptrollers Audit Mr. Thompson said as a requirement of the audit process he was formally submitting a copy of the audit along with Agency s response to the Board of Directors. He noted each member of the Board had received an individual copy. Bradford & Euclid, LLC Ms. Katzoff advised the Board she was requesting approval of a waiver of a potential conflict of interest relative to the Project. Noting she had communicated with the members previously by e mail, she said one of the owners of the Company, Larry Losty, is represented by her firm on two other matters. She also said Mr. Losty had agreed to sign a waiver and retain other counsel to represent both him and the Company regarding the matter before the Board. There being no discussion, Mr. Ryan asked for a motion. Ms. Richardson made a motion to waive the conflict of interest. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A MOTION TO WAIVE A POTENTIAL CONFLICT OF INTEREST IN THIS MATTER. Bradford & Euclid, LLC Ms. Katzoff, noting a Public Hearing had just concluded and advising a cost benefit analysis had been included in the Board s agenda packet, said the members were now being asked to approve resolutions undertaking the project. She said the first resolution for the Board s consideration was a SEQRA resolution. She said the resolution classified the Project as an unlisted action with no significant effect on the environment and declared the Agency to be Lead Agency for purposes of SEQRA. APPROVED A RESOLUTION CLASSIFYING A CERTAIN PROJECT AS AN UNLISTED ACTION PURSUANT TO 3
4 THE STATE ENVIRONMENTAL QUALITY REVIEW ACT, DECLARING THE AGENCY LEAD AGENCY FOR PURPOSES OF AN UNCOORDINATED REVIEW THEREUNDER AND DETERMINING THE ACTION WILL NOT HAVE A SIGNIFICANT EFFECT ON THE ENVIRONMENT. Ms. Katzoff then offered an Inducement resolution for the Board s consideration. She noted the cost of the project was estimated to be $19,420,000. She advised the sales tax exemption granted to the project would not exceed $990,000 and the mortgage tax exemption benefit granted was valued at $152,000. She said there would not be a PILOT. APPROVED A RESOLUTION UNDERTAKING THE ACQUISITION, RECONSTRUCTION, RENOVATION AND EQUIPPING OF A CERTAIN PROJECT; APPOINTING THE COMPANY AS AGENT OF THE AGENCY FOR THE PURPOSE OF THE ACQUISITION, RENOVATION AND EQUIPPING OF THE PROJECT; AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN AGREEMENT BETWEEN THE AGENCY AND THE COMPANY. She then asked the Board to approve a final resolution for the Project authorizing the delivery of documents. There being no discussion Mr. Ryan 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 AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS BY THE AGENCY IN CONNECTION WITH A CERTAIN PROJECT UNDERTAKEN AT THE REQUEST OF THE COMPANY. Jubilee Homes of Syracuse, Inc. / PRRC, Inc Ms. Katzoff, noting a Public Hearing on this Project also had just concluded, advised the Board they were being asked to approve resolutions to undertake it. She again noted a cost benefit analysis had been provided to the Board members in their agenda packet. She said the first resolution, a SEQRA resolution, classified the project as an unlisted action with no significant effect on the environment and declared the agency as Lead Agency for the Project There being no discussion Mr. Ryan asked for a motion to approve the SEQRA resolution. Mr. Schoenwald made the motion. Mr. Thompson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION CLASSIFYING A CERTAIN PROJECT AS AN UNLISTED ACTION PURSUANT TO THE STATE ENVIRONMENTAL QUALITY REVIEW ACT, DECLARING THE AGENCY LEAD AGENCY FOR PURPOSES OF AN UNCOORDINATED REVIEW THEREUNDER AND DETERMINING THE ACTION WILL NOT HAVE A SIGNIFICANT EFFECT ON THE ENVIRONMENT. Ms. Katzoff advised the next resolution for the Board s consideration was an Inducement resolution. Noting the project cost was estimated at $5,300,000, she said the sales tax exemption benefit would not exceed $326,400 and the mortgage tax exemption was valued at $30,000. She also noted there was a PILOT agreement with this project. There being no discussion Mr. Ryan asked for a motion to approve the resolution. Ms. Richardson made 4
5 APPOVED A RESOLUTION UNDERTAKING THE ACQUISITION, RECONSTRUCTION, RENOVATION AND EQUIPPING OF A CERTAIN PROJECT; APPOINTING THE COMPANY AS AGENT OF THE AGENCY FOR THE PURPOSE OF THE ACQUISITION, RENOVATION AND EQUIPPING OF THE PROJECT; AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN AGREEMENT BETWEEN THE AGENCY AND THE COMPANY. Ms. Katzoff advised a PILOT resolution was the next item to be approved and asked Mr. Walsh to review. Mr. Walsh said the PILOT agreement would utilize a Class 4 Distressed Property ten year schedule with a 100% exemption on improvements for the first seven years with a 25% reduction in the exemption in each of the final three years. Ms. Richardson asked if Jubilee Homes or PriceRite would be benefiting from the PILOT. Mr. Walsh said Jubilee Homes, as the owner of the property, would be the recipient of the PILOT agreement and PriceRite would receive the mortgage and sales tax exemptions. There being no further discussion, Mr. Ryan asked for a motion to approve the resolution. Ms. Richardson made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION APPROVING A PAYMENT IN LIEU OF TAX SCHEDULE AND AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS BY THE AGENCY IN CONNECTION WITH A PROJECT UNDERTAKEN AT THE REQUEST OF THE COMPANY. Ms. Katzoff then asked the Board to approve a final resolution for the Project. APPROVED A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS BY THE AGENCY IN CONNECTION WITH A PROJECT UNDERTAKEN AT THE REQUEST OF THE COMPANY. Mr. Ryan commented on the great deal of work done to bring this Project to a successful close. He expressed the hope it will be of benefit to the community in terms of access to food as well as creating jobs. Brighton Mews, LLC Mr. Walsh advised the Agency had received an application from the Company for financial assistance and the Board members were being asked to approve a resolution authorizing a Public Hearing on the Project. He briefly reviewed the Project noting the site on West Brighton Ave currently contains an abandoned gas station and three smaller structures. He said the owner Joseph Hucko, who was also present, proposes a $6,200,000 mixed use project including the demolition of the existing buildings and construction of five new buildings with 22 residential units, 10% of which will be designated affordable. He noted the owner was requesting benefits from the Agency including mortgage and sales tax exemptions and a PILOT agreement utilizing a Class 4 schedule (distressed). Mr. Hucko spoke briefly to the Board saying the structures on the property had been vacant for many years and he advised the Project would consist of three commercial buildings and two residential buildings, both of which would include mixed income apartments. 5
6 There being no further discussion, Mr. Ryan asked for a motion to approve a resolution authorizing a Public Hearing for the Project. Mr. Thompson made the motion. Mr. Kinsey seconded the motion. ALL BOARD MEMBERS PRESENT WITH THE EXCEPTION OF MR. SCHOENWALD WHO RECUSED HIMSELF, 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. 900 East Fayette Group, LLC Mr. Walsh advised the Agency had also received an application for financial assistance from the owners of 900 East Fayette Group, LLC and was requesting the Board approve a resolution authorizing a Public Hearing on the Project. He reviewed the Project saying the location was a four parcel site at East Fayette and 305 Irving Ave. consisting of an abandoned 18,400 sq. ft. four story apartment building constructed in the late 19 th century and three parking lots. He noted the apartment building has been designated by SHPO as a historic structure and the owners plan a gut renovation of the building and construction of a second 35,000 sq. ft. building. He said the completed project estimated at a cost of $8,500,000 will contain 42 residential units and 13,000 sq. ft. of commercial space. He advised the company is requesting benefits from the Agency in the form of a sales tax exemption, a mortgage recording exemption, and a PILOT agreement utilizing a Class 4 Distressed property schedule. Scott Smith, an owner of the Company, was present and told the Board there was significant environmental abatement needed to be performed at the site. He also said the Company has been in conversations with the City s Planning Commission and Landmark Preservation Board. He additionally noted another Agency Project owned by his company at East Fayette was about three months from completion and the same general contractor, VIP Structures, would be working on the new Project. There being no further discussion, Mr. Ryan 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 DETERMINING THAT THE ACQUISITION, CONSTRUCTION, RENOVATION 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. State Tower Building, LLC Mr. Walsh also advised the Agency had received an application for financial assistance from the owners of the State Tower Building, LLC and requested the Board approve a resolution authorizing a Public Hearing on the Project. He said the 21,000 sq. ft. building to be acquired by a company associated with the Pioneer Companies will be converted into mixed use property with floors 9 through 21 to be converted into 59 residential apartments. Floors 1 8 will remain office/retail space. Mr. Walsh said at the present time only 45% of the building is occupied and is in a state of deterioration. The projected estimated cost is anticipated to be $27,554, The Company is seeking benefits from the Agency in the form of a sales tax exemption in the amount of $669, and a mortgage tax exemption in the amount of $150,
7 Mark Roney and Melissa Zell were present on behalf of the Company and addressed the Board briefly. They further described plans for the building and noted the Project would seek historic tax credits and would undergo a complete interior and exterior renovation. There being no further business Mr. Ryan asked for a motion authorizing to approve a Public Hearing for the Project. Mr. Thompson made the motion. Mr. Kinsey seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION DETERMINING THAT THE ACQUISITION, RENOVATION 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. Richardson was excused from the remainder of the meeting at 9:50 a.m. 538 Erie Blvd West, LLC Ms. Katzoff advised the Board they were being asked to approve a resolution waiving requirements of the Local Access Agreement in regards to the Project. She noted in December of 2015 the Board approved a temporary sales tax appointment for the Project contingent upon receipt of a Contact Status Report (CSR). She said the Agency did receive the report and it indicated several out of area contractors were hired to work on the Project. In response to the staff s inquiry, the Company has provided correspondence outlining its reasons for hiring outside of the Agency s local area and is requesting a waiver be authorized by the Board of Directors. She then invited Timothy Lynn, who is an owner of the Project, to speak to the Board regarding the request. Mr. Lynn advised the general contractor in question stepped in and became a critical equity investor when other HTC financing did not work out and in return requested to be hired as the general contractor. He noted the construction entailed the hiring of 219 workers of which only 23 came from outside the five county local access area. He also noted he expected the Project would be closed by the end of March and the commercial space had been fully leased. Mr. Ryan asked Ms. Katzoff what the Board s options were in this matter. Ms. Katzoff advised this was not an issue that had come up previously and it was the Board s decision as to how to proceed. Mr. Ryan asked if the other Board members had an opinion. Mr. Schoenwald said he was in favor of waiving terms of the agreement in this matter. There being no further discussion, Mr. Ryan asked for a motion to approve the resolution. Mr. Schoenwald made the motion. Mr. Thompson seconded the motion. ALL BOARD MEMBERS PRESENT WITH THE EXCEPTION OF MR. KINSEY WHO ABSTAINED UNANIMOUSLY APPROVED A REQUEST FROM THE OWNER TO WAIVE REQUIREMENTS OF THE LOCAL ACCESS AGREEMENT RELATIVE TO CERTAIN CONTRACTS. 800 North Clinton Street, LLC Ms. Katzoff advised the Board the Agency had received correspondence, included in the Agenda packet, from the attorney representing the Project requesting approval of a resolution authorizing a Temporary Sales Tax Appointment for the Project until March 31,
8 She said as outlined in the letter the Company anticipates closing on its financing by the end of March however it would like to move forward with construction prior to that time. APPROVED A RESOLUTION APPROVING THE ISSUANCE OF A TEMPORARY SALES TAX APPOINTMENT LETTER AND THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH. The Geddes, LLC Ms. Katzoff advised the Board similar correspondence had also been received regarding The Geddes requesting approval of a resolution authorizing a Temporary Sales Tax Appointment for the Project until March 31, 2016 in order to facilitate the start of construction prior to an anticipated closing date at the end of March. APPROVED A RESOLUTION APPROVING THE ISSUANCE OF A TEMPORARY SALES TAX APPOINTMENT LETTER AND THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH. VII. Adjournment There being no further business to discuss Mr. Ryan 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 10:24 A.M. 8
City of Syracuse Industrial Development Agency 333 West Washington St, Suite 130 Syracuse, NY Tel (315) Fax (315)
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