City of Syracuse Industrial Development Agency
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1 City of Syracuse Industrial Development Agency 233 East Washington Street, 312 City Hall Syracuse, New York Tel (315) Fax (315) Minutes City of Syracuse Industrial Development Agency Board of Directors Meeting Tuesday August 17, :30 a.m. Common Council Chambers 304 City Hall 233 East Washington St Syracuse, New York Board Members Present: William Ryan, M.Catherine Richardson, Esq., Kenneth Mokrzycki, E. Carlyle Smith. Absent: Nicholas Ciotti. Staff Present: Debbie Ramsey-Burns, Judith DeLaney, Benjamin Walsh, Mary Vossler, Matthew Kerwin, Esq. Meghan P. McLees, Esq., Catherine E. Carnrike, Esq., Others Present: Thomas M. Carnrike,Esq., Dave Michel, Norman Swanson, Juanita Perez-Williams,Esq. David Mankiewicz, Denise DiRienzo, Tony Marshall, Larry Bott, Lindsay McCluskey, I. Call Public Hearing to Order Hotel Skyler, LLC Mr. Ryan opened the public hearing at 8:31 a.m. by reading verbatim the Notice of Public Hearing on the Hotel Skyler, LLC project. A copy of the Public Notice is attached hereto and thereby included in the Minutes. After reading the notice, Mr. Ryan asked if anyone in attendance wished to speak in favor of the Project. Norm Swanson, representing Hotel Skyler, LLC, spoke in favor of the Project. Mr. Swanson explained he is redeveloping the former Temple Adath Yeshurun, located at 601 S. Crouse Ave., into a 58-room, LEED certified (Platinum level anticipated) hotel. The total project cost is $6,751,960 and it is expected to create approximately 22 jobs. Mr. Swanson asked for the Board s support. David Mankiewicz, President of University Hill Corporation, also spoke in favor of the Project. Mr. Mankiewicz highlighted the Project s ability to create jobs and leverage the ongoing investments on University Hill. Mr. Mankiewicz asked for the Board s support. Mr, Ryan asked if anyone else in attendance wished to speak in favor of the Project. No one else spoke in favor. Mr. Ryan asked if anyone in attendance wished to speak in opposition to the Project. No one spoke in opposition. Mr. Ryan closed the Public Hearing at 8:35 a.m.
2 Richfield Syracuse Hotel Partners, LLC Mr. Ryan opened the Public Hearing at 8:36 a.m. by reading verbatim the Notice of Public Hearing on the Richfield Hotel Partners, LLC project. A copy of the Public Notice is attached hereto and thereby included in the Minutes. After reading the notice, Mr. Ryan asked if anyone in attendance wished to speak in favor of the Project. No one spoke in favor. Mr. Ryan asked if anyone in attendance wished to speak in opposition to the Project. No one spoke in opposition. Mr. Ryan closed the Public Hearing at 8:38 a.m. II. Call Meeting to Order The Chairman, Mr. Ryan, called the meeting to order at 8:39 a.m. III. Roll Call Mr. Ryan acknowledged that, including himself, Board members Kenneth Mokrzycki, E. Carlyle Smith, and M. Catherine Richardson were present. Nicholas Ciotti was absent from the meeting. IV. Proof of Notice Mr. Ryan noted that the notice of the meeting had been timely and properly provided. V. Minutes Ms. Richardson noted that a motion had been made at the July 20, 2010 meeting to authorize the Chairman to approve the final Audit on behalf of the Board upon further review. Ms. Richardson made the motion to approve the minutes for the July 20, 2010 meeting, with the aforementioned amendment made. Mr. E. Carlyle Smith Seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE MINUTES TO THE MEETING OF JULY 20, VI. Correspondence Mr. Walsh acknowledged a letter from the NYS Authorities Budget Office (ABO) dated July 28, 2010 regarding the filing of required reports under the Public Authorities Law by SIDA. Ms. Vossler explained that once the policies on the agenda have been approved by the Board, she would submit the required reports to the ABO and put the policies on SIDA s website. VII. New Business 215 West Fayette Street Associates, LLC Mr. Walsh provided an overview of the project, which is being developed by John (Skip) Cerio. The vacant former Hurbson Building in Armory Square will be converted to a mixed use property that will include 14 new market rate residential apartments and ground floor retail. The total project cost is $4,681,946. Mr. Ryan asked for a motion to authorize a public hearing for 215 West Fayette Street Associates, LLC Ms. Richardson made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED AN AUTHORIZATION TO HOLD A PUBLIC HEARING FOR 215 WEST FAYETTE STREET ASSOCIATES, LLC.
3 Richfield Syracuse Hotel Partners, LLC Mr. Kerwin provided an overview of the project, which will retain 130 jobs and include a $4.5 million renovation of the former Renaissance Hotel. He presented the SEQRA, Inducement & Final Resolutions for the Board s consideration. Mr. Kerwin classified the Project as a type II action under SEQRA, and reported no significant environmental impact. Mr. Ryan asked for a motion to approve the SEQRA Resolution for Richfield Syracuse Hotel Partners, LLC. Ms. Richardson made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE SEQRA RESOLUTION FOR RICHFIELD SYRACUSE HOTEL PARTNERS, LLC. Ms. Richardson pointed out in the Agency Agreement that it stated the Project may receive a Payment Payment-in-lieu-of-tax (PILOT) agreement. Mr. Walsh clarified that while a PILOT agreement was requested in the application, due to the fact that the property already had an existing 485-e property tax exemption, it was determined by staff that a PILOT was not necessary. Mr. Ryan asked for a motion to approve the Inducement Resolution for Richfield Syracuse Hotel Partners, LLC. Mr. Smith made the motion. Mr. Mokrzycki seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE INDUCEMENT RESOLUTION FOR RICHFIELD SYRACUSE HOTEL PARTNERS, LLC. Mr. Ryan asked for a motion to approve the Final Resolution for Richfield Syracuse Hotel Partners, LLC. Mr. Smith made the motion. Ms. Richardson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE FINAL RESOLUTION FOR RICHFIELD SYRACUSE HOTEL PARTNERS, LLC. Hotel Skyler, LLC Mr. Kerwin provided an overview of the project, which will include the redevelopment of the former Temple Adath Yeshurun, located at 601 S. Crouse Ave., into a 58-room, LEED certified (Platinum level anticipated) hotel. The total project cost is $6,751,960 and it is expected to create approximately 22 jobs. He presented the SEQRA, Inducement, PILOT, and Final Resolution for the Board s consideration. Mr. Kerwin classified the Project as an unlisted action under SEQRA, and reported no adverse environmental impact. Mr. Ryan asked for a motion to approve the SEQRA Resolution for Hotel Skyler, LLC. Mr. Smith made the motion. Mr. Mokrzycki seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE SEQRA RESOLUTION FOR HOTEL SKYLER, LLC. Mr. Ryan asked for a motion to approve the Inducement Resolution for Hotel Skyler, LLC. Mr. Smith made the motion. Ms. Richardson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE INDUCEMENT RESOLUTION FOR HOTEL SKYLER, LLC. Mr. Walsh provided an overview of the proposed PILOT agreement, which he indicated would serve as a model for future Leadership in Energy & Environmental Design (LEED) certified projects. The PILOT uses section 485-b of the New York State Real Property Tax Law, which is available to the developer by-right, as the baseline for the exemption. The amount of the exemption in the first year of a 485-b is 50% of the increase in the assessed value attributable to the improvement. The exemption amount then decreases by 5% in each of the next nine years. Additional exemptions are then added on the front end of the 485-b, to coincide with the
4 four different levels of LEED certification. For basic LEED certification (aka LEED Certified), one year of 75% abatement on the increase in assessed value is added. For LEED Silver, an additional year of 100% abatement is added. For gold, an additional year of 100% abatement is added. For platinum, one final year of 100% abatement is added. Due to the fact that the Project anticipates Platinum level LEED certification, the PILOT schedule is as follows: Year 1 100% (LEED Platinum) Year 2 100% (LEED Gold) Year 3 100% (LEED Silver) Year 4 75% (LEED Certified) Year 5 50% Year 6 45% Year 7 40% Year 8 35% Year 9 30% Year 10 25% Year 11 20% Year 12 15% Year 13 10% Year 14 5% Mr. Mokrzycki asked if the PILOT included a claw back provision that would allow the agreement to be modified if the Project did not achieve the anticipated level of LEED certification. Mr. Walsh indicated that such a claw back provision would be included in the agreement. Mr. Ryan asked for a motion to approve the PILOT Resolution for Hotel Skyler, LLC. Ms. Richardson made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE PILOT RESOLUTION FOR HOTEL SKYLER, LLC. Mr. Ryan asked for a motion to approve the Final Resolution for Hotel Skyler, LLC. Mr. Smith made the motion. Ms. Richardson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE FINAL RESOLUTION FOR HOTEL SKYLER, LLC. Mr. Ryan thanked Mr. Walsh and his staff for all the hard work that went into developing the green PILOT model. He also congratulated Mr. Swanson on the Project. James Square Nursing Home Mr. Kerwin asked the Board to consider a resolution authorizing the Agency to authorize and participate in a second mortgage on the James Square Nursing Home. He indicated this action would have no impact on the SIDA s bond rating. Mr. Ryan asked for a motion to authorize and execute a second mortgage for James Square Nursing Home. Ms. Richardson made the motion. Mr. Mokrzycki seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE SECOND MORTGAGE FOR JAMES SQUARE NURSING HOME. Near Westside Initiative Mr. Kerwin asked the Board to consider a resolution authorizing the Agency s participation in bridge loan financing/mortgage on the facility located at 109 Otisco Street in the City of Syracuse. (Lincoln Supply Building) Mr. Ryan asked for a motion to approve the resolution authorizing the Agency s participation in the bridge loan financing/mortgage on the facility at 109 Otisco Street. (Lincoln Supply Building)
5 Ms. Richardson made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE AGENCY S PARTICIPATION IN THE BRIDGE LOAN FINANCING/MORTGAGE AT 109 OTISCO STREET. SIDA Mr. Walsh asked the Board to adopt the following policies, which are required under the New York State Public Authorities Law. Investment Policy, Mr. Ryan asked the Board for a motion to adopt the Investment Policy. Ms. Richardson made the motion. Mr. Mokrzycki seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE ADOPTION OF THE INVESTMENT POLICY. Procurement Policy, Mr. Ryan asked the Board for a motion to adopt the Procurement Policy. Mr. Mokrzycki made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE ADOPTION OF THE PROCUREMENT POLICY. Indemnification Policy, Ms. Richardson requested that the titles identified within the Policy be amended to reflect the actual titles of SIDA s board and staff. Mr. Ryan asked the Board for a motion to adopt the Indemnification Policy. Mr. Mokrzycki made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE ADOPTION OF THE INDEMNIFICATION POLICY. Duties and Responsibilities Policy, Mr. Ryan asked the Board for a motion to adopt the Duties and Responsibilities Policy. Ms. Richardson made the motion. Mr. Mokrzycki seconded the motion. ALL BOARD MEMBERS PRESENT APPROVED THE ADOPTION OF THE DUTIES AND RESPONSIBILITIES POLICY. Attendance, Compensation, & Reimbursement Policy, Mr. Ryan asked the Board for a motion to adopt the Attendance, Compensation & Reimbursement Policy. Ms. Richardson made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE ADOPTION OF THE ATTENDANCE, COMPENSATION, & REIMBURSEMENT POLICY. Extension of Credit to Board Members and Officers Policy, Mr. Ryan asked the Board for a motion to approve the Extension of Credit to Board Members and Officers Policy. Ms. Richardson made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE ADOPTION OF THE EXTENSION OF CREDIT TO BOARD MEMBERS AND OFFICERS POLICY. Disposition of Property Guidelines, Mr. Ryan asked the Board for a motion to adopt the Disposition of Property Guidelines Policy. Mr. Smith made the motion. Mr. Mokrzycki seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE ADOPTION OF THE DISPOSITION OF PROPERTY GUIDELINES POLICY.
6 Whistleblower Policy, Ms. Richardson requested that an alternate board member be identified for complaints, in the case that a complaint was directed towards the Chairman. Mr. Ryan asked the Board for a motion to adopt the Whistleblower Policy. Mr. Mokrzycki made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE ADOPTION OF THE WHISTLEBLOWER POLICY. Travel Policy, Ms. Richardson suggested receipts and dates be included with any reimbursement. Mr. Ryan asked the Board for a motion to adopt the Travel Policy. Mr. Mokrzycki made the motion. Ms. Richardson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE ADOPTION OF THE TRAVEL POLICY. Code of Ethics Policy, Ms. Richardson inquired as to whether the proposed policy differed from that of the City of Syracuse. Ms. McLees responded in the affirmative, which is encouraged by the ABO Mr. Ryan asked the Board for a motion to adopt the Code of Ethics Policy. Mr. Mokrzycki made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT APPROVED THE ADOPTION OF THE CODE OF ETHICS POLICY. Internal Policy, Ms. Richardson suggested SIDA have an Internal Control Officer. Mr. Ryan asked the Board for a motion to adopt the Internal Policy. Ms. Richardson made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT APPROVED THE ADOPTION OF THE INTERNAL POLICY. VIII. Old Business Clinton Street Soma Project, LLC Mr. Walsh presented the Board with a request from Clinton Street Soma, LLC to authorize an extension of their sales tax exemption through October 31, This request had been previously held by the Board until the appropriate paperwork had been completed. Mr. Walsh confirmed the paperwork had been completed. Mr. Ryan asked the Board for a motion to authorize this extension of the sales tax exemption though October 31, Mr. Smith made the motion. Ms. Richardson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THIS EXTENSION OF THE SALES TAX EXEMPTION THROUGH OCTOBER 31, IX. Discussion Items Landmark Theatre Properties, LLC Mr. Walsh asked the Board to consider authorizing a Public Hearing for Landmark Theatre Properties, LLC. Ms. DiRienzo, representing the Landmark Theatre, provided an overview of the Theatre s expansion project, which will include expanding the stage house to accommodate traveling Broadway productions.
7 Mr. Ryan asked for a motion to authorize a Public Hearing for the Landmark Theatre Properties, LLC. Ms. Richardson made the motion. Mr. Smith seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A PUBLIC HEARING FOR LANDMARK THEATRE PROPERTIES, LLC. Berkley Acquisitions, LLC Mr. Walsh asked the Board to consider authorizing a Public Hearing for Berkley Acquisitions, LLC, who is proposing to renovate the historic hotel portion of the Hotel Syracuse complex, as well as the Hotel Syracuse garage. Mr. Walsh indicated that an incomplete application had been received prior to the meeting, and that he would be working with the Applicant in the coming weeks to complete the application. Mr. Ryan asked the Board for a motion to authorize a Public Hearing for Berkley Acquisitions, LLC. Ms. Richardson made a motion to authorize a Public Hearing, contingent upon receiving a completed application. Mr. Mokrzycki seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A PUBLIC HEARING, CONTINGENT UPON RECEIVING A COMPLETED APPLICATION, FOR BERKLEY ACQUISITIONS, LLC. X. Adjournment There being no further business to discuss, Mr. Ryan asked for a motion to adjourn the meeting. Mr. Mokrzycki made the motion. Mr. Smith seconded the motion. The meeting was adjourned at 9:40 a.m.
City of Syracuse Industrial Development Agency 333 West Washington St, Suite 130 Syracuse, NY Tel (315) Fax (315)
City of Syracuse Industrial Development Agency 333 West Washington St, Suite 130 Syracuse, NY 13202 Tel (315) 473 3275 Fax (315) 435 3669 Minutes Industrial Development Agency Board of Directors Meeting
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