Minutes Board of Directors Meeting Tuesday July 21, 2015, 8:30 A.M. Common Council Chambers 304 City Hall 233 East Washington St.
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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 July 21, 2015, 8:30 A.M. Common Council Chambers 304 City Hall 233 East Washington St. Syracuse, NY Board Members Present: William Ryan, Steven Thompson, Donald Schoenwald, Esq., Catherine Richardson, Esq., Pamela Hunter. Staff Present: Ben Walsh, Judith DeLaney, Debra Ramsey Burns, John Vavonese, Thomas Babilon, Esq, Susan Katzoff, Esq. Others Present: Barry Lentz, Aggie Lane, Jim Leana, Gwen Chaffer, Louise Poindexter, Joann Stevens, Rickey Brown, Richard Sykes, Maarten Jacobs Media: Rick Moriarty I. Public Hearing Grange Realty Associates, LLC Mr. Ryan opened the Public Hearing at 8:36 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. Jim Leana, who identified himself as a managing partner of the Project, spoke in favor. Mr. Leana said his company was excited about the Project and believed it would be an asset to the Hanover Square neighborhood. Noting his firm had renovated the Grange Building (203 East Water St.) in 2012, he said a prior fire at the 207 East Water Street building had resulted in the removal of the top two stories. He said the Company proposed to re subdivide and interconnect the two buildings on the parcels adding two stories to the 207 East Water Street building for an additional 8500 sq. ft. of space. At completion the project will include 12 market rate apartments and 4713 sq. ft. of commercial first floor space. Mr. Ryan then asked two more times if anyone else in attendance wished to speak in favor of the Project. No one else spoke in favor of the Project. Mr. Ryan then asked if anyone wished to speak in opposition of the Project. No one spoke. Mr. Ryan asked an additional two times if anyone in attendance wished to speak in opposition of the Project. No one spoke in opposition of the Project. Mr. Ryan closed the Public Hearing at 8:39 a.m. II. Call Meeting to Order Mr. Ryan called the meeting to order at 8:39 a.m.
2 III. Roll Call Mr. Ryan acknowledged all Board Members were present. IV. Proof of Notice Mr. Ryan noted notice of the meeting had been timely and properly provided. V. Minutes Mr. Ryan asked for a motion to approve the minutes from the June 16, 2015 Board of Directors meeting. Ms. Richardson made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE MINUTES FROM THE JUNE 16, 2015 BOARD OF DIRECTORS MEETING. VI. Committee Report Governance Committee Report Ms. Richardson reported the Governance Committee held a meeting immediately preceding the Board of Directors meeting and discussed proposed changes to the Agency s Local Labor (Access) Policy regarding suppliers and changes to procedures regarding the handling of legal claims received by the Agency. Ms. Richardson said, in regards to the Local Access policy, it was agreed the policy should require suppliers be from the six county regional area with the availability of a waiver to be granted in certain cases at the discretion of the Executive Director. She advised the policy would be revised and offered for approval to the Board of Directors at the next Board meeting. Regarding the legal claim procedure it was decided Mr. Walsh and Ms. Katzoff would create a written procedure to be reviewed at the next Board of Directors meeting. VII. New Business Local Access Policy The Agenda item was held to be reviewed at the next Board of Directors meeting per revisions suggestions by the Governance Committee. Service of Notice of Claim Policy The Agenda item was held to be reviewed at the next Board of Directors meeting per revisions suggestions by the Governance Committee. Grange Realty Associates, LLC Ms. Katzoff, noting a Public Hearing had just concluded on the Project and saying a cost benefit analysis was included in the Board agenda s packet for review, advised the Board they were being asked to approve resolutions to undertake it.
3 She said the first resolution for the Board s consideration was a SEQRA resolution. She noted a prior SEQRA review had been conducted by the Syracuse Planning Commission and after consultation the Agency agreed with the Commission s determination the Project was a Type 1 action with no effect on the environment. There being no discussion, Mr. Ryan 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 CLASSIFYING A CERTAIN PROJECT AS A TYPE I ACTION PURSUANT TO THE STATE ENVIRONMENTAL QUALITY REVIEW ACT AND DETERMINING THAT THE ACTION WILL NOT HAVE A SIGNIFICANT EFFECT ON THE ENVIRONMENT. Ms. Katzoff then offered an Inducement resolution for Board approval noting the Project was requesting mortgage and sales tax exemptions and a PILOT agreement. She said the sales tax exemption benefit would not exceed $109, There being no discussion, Mr. Ryan 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 UNDERTAKING THE ACQUISITION, CONSTRUCTION, RENOVATION AND EQUIPPING OF A CERTAIN PROJECT; APPOINTING THE COMPANY AS AGENT OF THE AGENCY FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION, RENOVATION AND EQUIPPING OF THE PROJECT; AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN AGREEMENT BETWEEN THE AGENCY AND THE COMPANY. Ms. Katzoff then asked the Board to consider a PILOT resolution for the Project. She advised the Project was requesting a Class 5 exemption, she noted it deviates from the Agency s current Uniform Tax Exemption Policy (UTEP) and as required a notice of the deviation was sent to both the Mayor and County Executive. She then asked Mr. Walsh to review the PILOT for the Board members. Mr. Walsh said as noted in the Public Hearing, the Company proposes to re subdivide and interconnect the two buildings on the parcels at 203 and Water St. The building at 203 East Water was redeveloped in 2012 and now contains 3 market rate apartments on the upper floors and 1358 sq. ft. of commercial space. It would not be eligible for a new 485a exemption. The building at 207 East Water will undergo a complete renovation and be expanded to add two new floors for an additional 8500 sq. ft. It normally would have been eligible for a 485a exemption however a required resubdivision under the NYS Building Code precludes the project from receiving the exemption. He said at completion, the combined project will include 12 market rate apartments and 4713 sq. ft. of commercial first floor space. Mr. Walsh said the owners anticipate 10 jobs will be created. He noted the cost benefit analysis prepared by the Agency s consultant, the National Development Council (NDC) found the Project required the exemption to be financially viable. After some questions and further discussion by the Board, Mr. Ryan 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 A PAYMENT IN LIEU OF TAX AGREEMENT AND AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS BY THE AGENCY IN CONNECTION WITH A CERTAIN PROJECT UNDERTAKEN AT THE REQUEST OF THE COMPANY. Ms. Katzoff then asked the Board to approve a Final resolution for the Project noting this would authorize and execute the delivery of all final documents.
4 There being no discussion Mr. Ryan 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 AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS BY THE AGENCY IN CONNECTION WITH A CERTAIN PROJECT UNDERTAKEN AT THE REQUEST OF THE COMPANY. Mac Source Communications Inc. Ms. Katzoff advised the Board they were being asked to approve a request to retroactivity authorize the transfer, assumption, and assignment of lease transactional documents to a new company as the result of a merger. She said Mac Source had merged with a sister company and did not realize the transfer required Board approval. She noted correspondence from the Company Vice President indicating no current change in the Syracuse operation as a result of the merger with the anticipation of additional growth in the future. There being no discussion Mr. Ryan asked for a motion to approve the resolution. Mr. Schoenwald made a motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION RETROACTIVELY AUTHORIZING SALE OF THE PROJECT FACILITY, THE ASSIGNMENT AND ASSUMPTION OF CERTAIN DOCUMENTS IN ACCORDANCE WITH THE TERMS OF A LEASE AGREEMENT ENTERED BETWEEN THE AGENCY AND THE COMPANY IN APRIL 2012 AND AUTHORIZING THE EXECUTION OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH. Inn at Armory Square, LLC Ms. Katzoff advised the Board the Agency had received correspondence from the owner advising it had agreed to sell the hotel property to a publically traded real estate investment company, Apple Nine Hospitality Ownership Inc., and was requesting approval of a resolution authorizing the transfer, assumption, and assignment of lease transactional documents to the new Company. She said based on representations and information submitted by the new Company, it managed a large portfolio of upscale hotels and appeared to be financially solvent. She noted under the Agency lease documents the assignment was permitted. Mr. Walsh advised the Board as there was a PILOT involved in both this Project and the Mac Source Project both would also need to be approved by the Common Council. After a brief 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 ASSIGNMENT AND ASSUMPTION OF CERTAIN DOCUMENTS IN ACCORDANCE WITH THE TERMS OF A LEASE AGREEMENT ENTERED BETWEEN THE AGENCY AND THE COMPANY IN FEBRUARY 2012 AND AUTHORIZING THE EXECUTION OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH. National Development Council (NDC) Mr. Walsh advised the Board he was requesting approval of a contract to provide consulting services to the Agency for the period July 1, 2015 through June 30, 2016 by NDC. Mr. Walsh noted NDC provides the Agency with comprehensive economic development consulting services including a cost benefit
5 analysis of each project the Agency undertakes. He advised the Board the contract price for was 9% less than the contract. There being no discussion Mr. Ryan asked for a motion to approve the proposed contract. Mr. Schoenwald made the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION AUTHORIZING A CONTRACT WITH THE NATIONAL DEVELOPMENT COUNCIL. Lipe Art Park Mr. Walsh updated the Board on recent activities at Lipe Art Park located at 900 West Fayette Street on Agency owned property. He said in recent years a dedicated group of volunteers has maintained the space as an Art Park and noted Center State CEO had annually added the Agency as an additional insured for purposes of liability insurance for the park. He then introduced Maarten Jacobs of the near Westside Initiative to discuss a grant recently awarded to the Park. Mr. Jacobs told the Board a grant of $7, had been awarded to the Agency by the CNY Community Foundation for a large scale public art installation to also serve as an exercise and fitness hub. He noted over three hundred people work across the street from the Park in the Rockwest building and the expectation was they would make more use of the park as a result of the project. Ms. Hunter asked about the skate park that had been proposed in the past. Mr. Marten said there is still interest in the project but nothing was planned in the near term. Mr. Walsh advised the Board C&S Engineers had been engaged to take some soil samples at the site to assess any environmental issues and said he would report back to the Board on their assessment. He also said the City Arborist intends to plant an estimated 85 trees on the land. Mr. Ryan asked if there had ever been any damage at the park. Mr. Jacobs responded the park has very little vandalism over the years. VIII. Old Business Morgan Pond Street, LLC Ms. Katzoff advised this item would need to be held as the owners were not yet ready to discuss. IX. Adjournment There being no further discussion Mr. Ryan asked for a motion to adjourn the meeting. Ms. Hunter made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A MOTION TO ADJOURN THE MEETING AT 9:17 A.M.
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