AGENDA. 2. Minutes- Approval of October 25, 2017 & November 2, 2017 Minutes. 3. The Residence NR LLC (New Ro Studios)- 11 Burling Lane- Authorization

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1 Regular Meeting of the New Rochelle Industrial Development Agency November 29, 2017 at 7:30 PM 515 North Ave. City Hall, Conf. Rm. B-1, New Rochelle, New York Public Hearings in connection with the THE RESIDENCE NR LLC (NEW RO STUDIOS)-11 BURLING LANE project & the 70 NARDOZZI LLC, 70 NARDOZZI PLACE project will be held first. 1. Roll Call/Announcements AGENDA 2. Minutes- Approval of October 25, 2017 & November 2, 2017 Minutes 3. The Residence NR LLC (New Ro Studios)- 11 Burling Lane- Authorization Nardozzi LLC, 70 Nardozzi Place- Authorization 5. Admin. a. Adoption of the City of New Rochelle Economic Opportunity and Nondiscrimination Policy Amendment b. Authorizing Resolution- Professional Auditing Services 6. Other Business/Discussion Items 7. Next Meeting Date December 20, Adjournment 1

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90 Date: November 29, 2017 At a meeting of the New Rochelle Industrial Development Agency (the "Agency") held on November 29, 2017, at City Hall, 515 North Avenue, New Rochelle, New York, the following members of the Agency were: Present: Absent: Also Present: After the meeting had been duly called to order, the Chair announced that among the purposes of the meeting was to consider and take action on certain matters pertaining to the 70 Nardozzi LLC Project, located at 70 Nardozzi Place, New Rochelle, New York. The following resolution was duly moved by, seconded by, discussed and adopted with the following members voting: Voting Aye Voting Nay v3 90

91 RESOLUTION OF THE NEW ROCHELLE INDUSTRIAL DEVELOPMENT AGENCY (i) APPOINTING 70 NARDOZZI LLC OR ENTITY FORMED OR TO BE FORMED ON BEHALF OF THE FOREGOING (COLLECTIVELY, THE "COMPANY") AS ITS AGENT TO UNDERTAKE THE PROJECT (AS MORE FULLY DESCRIBED BELOW); (ii) AUTHORIZING THE EXECUTION AND DELIVERY OF AN AGENT AND FINANCIAL ASSISTANCE AND PROJECT AGREEMENT, LEASE AGREEMENT, LEASEBACK AGREEMENT, PILOT AGREEMENT AND PILOT AGREEMENT MORTGAGE, AND RELATED DOCUMENTS WITH THE COMPANY WITH RESPECT TO THE PROJECT; (iii) AUTHORIZING FINANCIAL ASSISTANCE (THE "FINANCIAL ASSISTANCE") TO THE COMPANY IN THE FORM OF (1) A SALES AND USE TAX EXEMPTION FOR PURCHASES AND RENTALS RELATED TO THE PROJECT, (2) AN EXEMPTION FROM MORTGAGE RECORDING TAXES, AND (3) A PARTIAL REAL PROPERTY TAX ABATEMENT STRUCTURED UNDER A PILOT AGREEMENT; AND (iv) AUTHORIZING THE EXECUTION OF A MORTGAGE AND RELATED DOCUMENTS WHEREAS, by Title 1 of Article 18-A of the General Municipal Law of the State of New York, as amended, and Chapter 785 of the Laws of 1976 of the State of New York, as amended (collectively, the "Act"), the NEW ROCHELLE INDUSTRIAL DEVELOPMENT AGENCY (the "Agency") was created with the authority and power to own, lease and sell property for the purpose of, among other things, acquiring, constructing and equipping industrial, manufacturing and commercial facilities as authorized by the Act; and WHEREAS, 70 NARDOZZI LLC, or an entity formed or to be formed on behalf of the foregoing (the "Company"), previously submitted an application (the "Application") to the Agency requesting the Agency s assistance with a certain project (the "Project") for the benefit of the Company consisting of: (i) the Agency taking title, possession or control (by deed, lease, license or otherwise) of an 3.87-acre parcel of land commonly known as 70 Nardozzi Place, City of New Rochelle, Westchester County, New York, being more particularly identified as Section 2, Block 564, Lot 0002 (collectively, the "Land"); (ii) the construction on the Land of (A) a twostory building containing approximately 170,000 square feet, the ground floor of which will accommodate approximately 130,000 square feet to be utilized as the City of New Rochelle's Department of Public Works operations center, and the second floor of which is intended to accommodate approximately 40,000 square feet of tenant space to be used as a health club (±37,000 square feet) and retail space (±3,000 square feet), together with related infrastructure and parking (collectively, the "Building 1 Improvements"), and (B) a five-story building containing approximately 70,000 square feet to be used as a self-storage facility with approximately 209 parking spaces (the "Building 2 Improvements"; and, together with the Building 1 Improvements, the "Improvements"); and (iii) the acquisition and installation by the Company in and around the Land and the Improvements of items of equipment, machinery and other tangible personal property (the "Equipment"; and, together with the Land and Improvements, collectively, the "Facility"), all as more fully detailed in the Company's Application on file with the Agency; and v1 91

92 WHEREAS, pursuant to a resolution adopted by the Agency on November 2, 2017 (the "Initial Resolution") the Agency (i) accepted the Application of the Company, (ii) authorized a public hearing with respect to the Project, and (iii) described the forms of Financial Assistance (as heretofore defined) being contemplated for the benefit of the Company by the Agency; and WHEREAS, pursuant to Section 859-a of the Act, on Wednesday, November 29, 2017, at 7:30 p.m., local time, at City Hall, Department of Development Conference Room B-1, 515 North Avenue, New Rochelle, New York 10801, the Agency held a public hearing with respect to the Project and the proposed Financial Assistance being contemplated by the Agency (the "Public Hearing") whereat interested parties were provided a reasonable opportunity, both orally and in writing, to present their views. (A copy of the minutes of the Notice of Public Hearing published and forwarded to the affected taxing jurisdictions at least ten (10) days prior to said Public Hearing are attached hereto as Exhibit A); and WHEREAS, pursuant to the New York State Environmental Quality Review Act, Article 8 of the Environmental Conservation Law and the regulations adopted pursuant thereto at 6 N.Y.C.R.R. Part 617, as amended (collectively referred to as "SEQRA"), the Agency must satisfy the applicable requirements set forth in SEQRA, as necessary, prior to making a final determination whether to undertake the Project; and WHEREAS, the Company made application to the City of New Rochelle Planning Board (the "Planning Board") for site plan approval in connection with the Project; and WHEREAS, pursuant to SEQRA, the Planning Board declared itself Lead Agency in connection with all processing procedures, determinations and findings, to be made or conducted with respect to the site plan submitted by the Company; and WHEREAS, by resolutions No duly adopted on November 28, 2017, and attached hereto as Exhibit B, the Planning Board determined that this action constitutes an Unlisted Action under 6 NYCRR Part 617 of the SEQRA regulations, which will not have a significant effect on the environment and therefore does not require the preparation of an Environmental Impact Statement; and WHEREAS, the Agent and Financial Assistance and Project Agreement, Lease Agreement, Leaseback Agreement, Payment in-lieu-of Tax Agreement (the "PILOT" Agreement), PILOT Agreement Mortgage, each dated as of December 1, 2017 (or such other date acceptable to Chair or the Executive Director of the Agency) and related documents (collectively, the "Agency Documents") have been negotiated and the Agency desires to authorize the undertaking of the Project; and NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE NEW ROCHELLE INDUSTRIAL AGENCY AS FOLLOWS: Section 1. The Planning Board conducted a review of the Project pursuant to SEQRA. In addition to classifying the Project as an Unlisted Action pursuant to SEQRA, the Planning Board by resolution No duly adopted on November 28, 2017, determined 92

93 that the Project did not present a potential significant adverse environmental impact. The Agency, having reviewed the materials presented by the Company, including, but not limited to, a Full Environmental Assessment Form, further determines that the Project does not pose a potential significant adverse environmental impact and thus ratifies the Negative Declaration previously issued by the Planning Board pursuant to 6 N.Y.C.R.R Section 2. Based upon representations and warranties made by the Company in the Application, the Agency hereby authorizes and approves the Company, as its agent, to make purchases of goods and services relating to the Project, that would otherwise be subject to New York State and local sales and use tax in an amount up to $14,400,000.00, which result in New York State and local sales and use tax exemption benefits ("Sales and Use Tax Exemption Benefits") not to exceed $1,206, The Agency agrees to consider any requests by the Company for increase to the amount of Sales and Use Tax Exemption Benefits authorized by the Agency upon being provided with appropriate documentation detailing the additional purchases of property or services. Section 3. Pursuant to Section 875(3) of the New York General Municipal Law, the Agency may recover or recapture from the Company, its agents, consultants, subcontractors, or any other party authorized to make purchases for the benefit of the Project, any Sales and Use Tax Exemption Benefits taken or purported to be taken by the Company, its agents, consultants, subcontractors, or any other party authorized to make purchases for the benefit of the Project, if it is determined that: (i) the Company, its agents, consultants, subcontractors, or any other party authorized to make purchases for the benefit of the Project, is not entitled to the Sales and Use Tax Exemption Benefits; (ii) the Sales and Use Tax Exemption Benefits are in excess of the amounts authorized to be taken by the Company, its agents, consultants, subcontractors, or any other party authorized to make purchases for the benefit of the Project; (iii) the Sales and Use Tax Exemption Benefits are for property or services not authorized by the Agency as part of the Project; or (iv) the Sales and Use Tax Exemption Benefits are taken in cases where the Company, its agents, consultants, subcontractors, or any other party authorized to make purchases for the benefit of the Project, fails to comply with a material term or condition to use property or services in the manner approved by the Agency in connection with the Project. As a condition precedent to receiving Sales and Use Tax Exemption Benefits, the Company, its agents, consultants, subcontractors, or any other party authorized to make purchases for the benefit of the Project, shall (i) cooperate with the Agency in its efforts to recover or recapture any Sales and Use Tax Exemption Benefits, and (ii) promptly pay over any such amounts to the Agency that the Agency demands. Section 4. Subject to the Company executing the Agency Documents and the delivery to the Agency of a binder, certificate or other evidence of a liability insurance policy for the Facility satisfactory to the Agency, the Agency hereby authorizes the Company to proceed with the undertaking of the Project and hereby appoints the Company as the true and lawful agent of the Agency, pursuant to the provisions of the Agency Documents: (i) to construct, reconstruct, renovate, refurbish and equip the Facility; (ii) to make, execute, acknowledge and deliver any contracts, orders, receipts, writings and instructions as the stated agent for the Agency with the authority to delegate such agency, in whole or in part, to agents, subagents, 93

94 contractors, and subcontractors of such agents and subagents and to such other parties as the Company chooses; and (iii) in general, to do all things which may be requisite or proper for completing the Project, all with the same powers and the same validity that the Agency could do if acting in its own behalf; provided, however, the Company s status as agent of the Agency and related sales tax exemption letter shall expire on June 30, 2019 (unless extended for good cause by the Chair, Executive Director or other authorized representative of the Agency). Section 5. (a) The Chair or the Executive Director of the Agency are hereby authorized, on behalf of the Agency, to execute and deliver the Agency Documents (consistent with the schedule of PILOT payments and corresponding real property tax abatements presented to and hereby approved by the Agency and attached to and made a part of these Resolutions as Exhibit C), in the forms acceptable to the Chair or Executive Director of the Agency. The execution of the Agency Documents by the Agency shall constitute conclusive evidence of such approval. (b) The Chair or the Executive Director is further hereby authorized, on behalf of the Agency, to designate any additional authorized representatives of the Agency. Section 6. The Chair and the Executive Director of the Agency are hereby further authorized, on behalf of the Agency, to execute, deliver and record any mortgage, assignment of leases and rents, security agreement, UCC-1 Financing Statements and all documents reasonably contemplated by these resolutions or required by any lender identified by the Company (the "Lender") up to a maximum principal amount necessary to undertake the Project and/or finance or re-finance acquisition and Project costs, equipment and other personal property and related transactional costs (the "Lender Documents" and together with the Agency Documents, the "Project Documents") and, where appropriate, the Secretary or Assistant Secretary of the Agency is hereby authorized to affix the seal of the Agency to the Project Agreements and to attest the same, all with such changes, variations, omissions and insertions as the Chair or the Executive Director of the Agency shall approve, the execution thereof by the Chair or the Executive Director of the Agency to constitute conclusive evidence of such approval; provided, in all events, recourse against the Agency is limited to the Agency s interest in the Project. Section 7. The Uniform Tax Exemption Policy ("UTEP") of the Agency provides that, with respect to large commercial projects such as the Project, the Agency's standard policy is to limit the term of the PILOT Agreement to ten (10) years. Pursuant to the UTEP and Section 874 of the General Municipal Law of the State of New York (the "GML"), the Agency hereby approves a deviation from the Agency's standard policy and authorizes entering into the PILOT Agreement for a term of twenty-five (25) years, substantially in accordance with the schedule of PILOT payments to be made as set forth on Exhibit C attached to and made a part of these resolutions, based upon one or more of the following factors with respect to the Project. The Project: (i) furthers the commercial development in a targeted geographic region, (ii) includes green building technologies, (iii) places less of a burden on municipal resources, (iv) promotes the adaptive re-use of underutilized property, (v) creates a local partnership with the City of New Rochelle to provide space for it to perform its public purposes, (vi) will create approximately 150 construction jobs and, upon completion, approximately fifteen (15) full-time jobs and approximately thirty (30) part-time jobs, and (vii) will result in a financially feasible Project that does not provide excess benefit to the Company. The Chairman and Executive Director are 94

95 further hereby directed to give such notice of such deviation, and the reasons therefor, to the affected taxing jurisdictions in accordance with Section 874 of the GML. Section 8. The officers, employees and agents of the Agency are hereby authorized and directed for and in the name and on behalf of the Agency to do all acts and things required and to execute and deliver all such certificates, instruments and documents, to pay all such fees, charges and expenses and to do all such further acts and things as may be necessary or, in the opinion of the officer, employee or agent acting, desirable and proper to effect the purposes of the foregoing resolutions and to cause compliance by the Agency with all of the terms, covenants and provisions of the documents executed for and on behalf of the Agency. Section 9. Due to the complex nature of this transaction, the Agency hereby authorizes its Chair or Executive Director to approve, execute and deliver such further agreements, documents and certificates as the Agency may be advised by counsel to the Agency or Transaction Counsel to be necessary or desirable to effectuate the foregoing, such approval to be conclusively evidenced by the execution of any such agreements, documents or certificates by the Chair or the Executive Director of the Agency. Section 10. These Resolutions shall take effect immediately. [The Balance of This Page Intentionally Left Blank 95

96 STATE OF NEW YORK ) ) ss: COUNTY OF WESTCHESTER ) I, the undersigned, Secretary of the New Rochelle Industrial Development Agency, DO HEREBY CERTIFY: That I have compared the annexed extract of minutes of the meeting of the New Rochelle Industrial Development Agency (the "Agency"), including the resolutions contained therein, held on November 29, 2017, with the original thereof on file in my office, and that the same is a true and correct copy of the proceedings of the Agency and of such resolutions set forth therein and of the whole of said original insofar as the same related to the subject matters therein referred to. I FURTHER CERTIFY, that all members of said Agency had due notice of said meeting, that the meeting was in all respects duly held and that, pursuant to Article 7 of the Public Officers Law (Open Meetings Law), said meeting was open to the general public, and that public notice of the time and place of said meeting was duly given in accordance with such Article 7. I FURTHER CERTIFY, that there was a quorum of the members of the Agency present throughout said meeting. I FURTHER CERTIFY, that as of the date hereof, the attached resolutions are in full force and effect and have not been amended, repealed or modified. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Agency this day of, Secretary 96

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168 Date: November 29, 2017 At a meeting of the New Rochelle Industrial Development Agency (the "Agency") held on November 29, 2017, at City Hall, 515 North Avenue, New Rochelle, New York, the following members of the Agency were: Present: Absent: Also Present: After the meeting had been duly called to order, the Chair announced that among the purposes of the meeting was to consider and take action on certain matters pertaining to the appointment of an audit firm. The following resolution was duly moved by, seconded by, discussed and adopted with the following members voting: Voting Aye Voting Nay v1 Page 1

169 RESOLUTION OF THE NEW ROCHELLE INDUSTRIAL DEVELOPMENT AGENCY (THE "AGENCY") APPOINTING THE BONADIO GROUP AS THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTING FIRM TO THE AGENCY FOR THE PURPOSE OF PREPARING THE INDEPENDENT AUDIT REPORT OF THE AGENCY FOR THE FISCAL YEAR ENDING DECEMBER 31, 2017, AND TO OTHERWISE PROVIDE THE PROFESSIONAL SERVICES, AS DEFINED BELOW. WHEREAS, by Title 1 of Article 18-A of the General Municipal Law of the State of New York, as amended, and Chapter 785 of the Laws of 1976 of the State of New York, as amended (collectively, the "Act"), the NEW ROCHELLE INDUSTRIAL DEVELOPMENT AGENCY (the "Agency") was created with the authority and power to own, lease and sell property for the purpose of, among other things, acquiring, constructing and equipping industrial, manufacturing and commercial facilities as authorized by the Act; and WHEREAS, the Agency is required by applicable law, including, without limitation, the Public Authorities Accountability Act of 2005 (as amended, the "PAAA"), to retain a certified public accounting firm to prepare an annual independent audit report in accordance with generally accepted auditing standards; and WHEREAS, the Comptroller of the Agency has reviewed the qualifications of THE BONADIO GROUP, certified public accountants (the "Audit Firm"), and the Comptroller of the Agency has recommended the hiring of the Audit Firm to prepare the annual independent audit report of the Agency for the fiscal year ending December 31, 2017, and provide related services (collectively, the "Services") and has established the Audit Firm's proposed compensation for the Services; and WHEREAS, proposed compensation for the Services shall be in the annual amount of $6,860; and WHEREAS, the Audit Firm's lead (or coordinating) audit partner (having primary responsibility for the audit) with respect to the Services and the audit partner having responsibility to review the audit report, have not performed audit services for the Agency in each of the last five (5) fiscal years of the Agency; and WHEREAS, no officer or employee of the Agency has been employed by the Audit Firm during the one (1) year period preceding the adoption of this resolution; and WHEREAS, the Agency desires to appoint the Audit Firm to prepare the Agency's annual independent audit report for the fiscal year ending December 31, 2017 and otherwise provide the Services. NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE NEW ROCHELLE INDUSTRIAL DEVELOPMENT AGENCY, AS FOLLOWS: Page 2

170 Section 1. The Agency hereby ratifies and confirms all actions heretofore taken by the Agency's staff and the Comptroller of the Agency in connection with procuring the Services. Section 2. The Agency hereby accepts the recommendations of the Comptroller of the Agency (i) that the Audit Firm is qualified to perform the Services, (ii) that no further interviews of the Audit Firm are required, and (iii) as to the terms of compensation of the Audit Firm for performing the Services. Section 3. The Bonadio Group is hereby appointed the independent certified public accounting firm to the Agency for the purpose of preparing the independent audit report of the Agency for the fiscal year ending December 31, 2017, and to otherwise provide the Services. Section 4. The Audit Firm shall not perform any non-audit services for or on behalf of the Agency during the fiscal year ending December 31, 2017, unless approved in writing by the Agency. Section 5. The Comptroller of the Agency shall exercise direct oversight of the Audit Firm in the performance of the Services. Section 6. The Executive Director and Chief Financial Officer, acting individually or jointly, are hereby authorized and directed to negotiate and enter into a retainer agreement or similar agreement with the Audit Firm for the Services (the "Agreement"), on such terms and subject to such conditions as the Executive Director may deem advisable or necessary, subject to the terms of this resolution and the recommendations of the Comptroller of the Agency. The Executive Director's or. Chief Financial Officer's execution of the Agreement shall evidence the Agency's approval of the terms thereof. Section 7. This Resolution shall take effect immediately. Page 3

171 STATE OF NEW YORK ) ) ss: COUNTY OF WESTCHESTER ) I, the undersigned, Secretary of the New Rochelle Industrial Development Agency, DO HEREBY CERTIFY: That I have compared the annexed extract of minutes of the meeting of the New Rochelle Industrial Development Agency (the "Agency"), including the resolutions contained therein, held on November 29, 2017, with the original thereof on file in my office, and that the same is a true and correct copy of the proceedings of the Agency and of such resolutions set forth therein and of the whole of said original insofar as the same related to the subject matters therein referred to. I FURTHER CERTIFY, that all members of said Agency had due notice of said meeting, that the meeting was in all respects duly held and that, pursuant to Article 7 of the Public Officers Law (Open Meetings Law), said meeting was open to the general public, and that public notice of the time and place of said meeting was duly given in accordance with such Article 7. I FURTHER CERTIFY, that there was a quorum of the members of the Agency present throughout said meeting. I FURTHER CERTIFY, that as of the date hereof, the attached resolutions are in full force and effect and have not been amended, repealed or modified. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Agency this day of, Secretary Page 4