COUNTY OF SULLIVAN INDUSTRIAL DEVELOPMENT AGENCY
One Cablevision Center
Ferndale, New York 12734
(845) 295-2603 – telephone
(845) 295-2604 – fax
SPECIAL MEETING MINUTES
Wednesday, August 27, 2014
I. CALL TO ORDER
Chairman Steingart called to order the special meeting of the County of Sullivan Industrial Development Agency at approximately 12:31 pm, held in the Legislative Committee Room at the Sullivan County Government Center, Monticello, New York.
II. ROLL CALL
Members Present- Members Absent-
Ira Steingart Sandy Shaddock
Edward Sykes Sean Rieber
Staff Present- Staff Absent-
Jennifer C.S. Brylinski, Exec. Director None
Jen Flad, VP Business Development
Allan C. Scott, Agency CEO
Walter F. Garigliano, Esq., Agency Legal Counsel
Tara Lewis, Garigliano Law Offices
Scott Samuelson, SC Legislature
Shawn Griffin, Harris Beach PLLC
Marc Baez, SC Partnership for Economic Development
Roberta Byron-Lockwood, SC Visitors Association
Bryan Cappelli, CEO, The Cappelli Organization
III. NEW BUSINESS
Chairman Steingart thanked the Board, staff and counsel for their hard work in preparing and reviewing the documents related to the Concord Associates, LP application relating to the Mohegan Sun at the Concord project. He also thanked Mr. White and Attorney Garigliano for negotiating the proposed agreement, which will greatly benefit the Agency, the County and the applicant.
Bryan Cappelli thanked the Board and staff for handling the application promptly. He summarized the negotiation process that led to the figures proposed today. He noted that the Agency expects a higher PILOT base than the current assessed value of the property, which is approximately $10,000,000. The resolution before the Board is crucial because the project’s prospective lenders require a very detailed budget which reflects this increased PILOT base. The lenders prefer a contractual PILOT to the uncertainty of an unknown future assessed value. IDA approval will make lenders more comfortable, and will stress to the Gaming Facility Location Board the project’s readiness. It will also memorialize the applicant’s commitment to job creation, and to making substantial PILOT payments.
Attorney Garigliano passed out the resolution appointing Concord Associates, LP and its associates as agents of the Agency, and authorizing the execution and delivery of project documents. Mr. Sykes made a motion to discuss the resolution, and Ms. Loughlin seconded the motion. Attorney Garigliano noted one revision to the resolution, relating to the dollar value of sales tax abatements.
Board members discussed the project documents. There was general agreement that it is reasonable for the Agency to set its full-time employment goal at 75% of the applicant’s high estimate of the number of jobs to be created. Mr. Siegel noted the magnitude of the project, the applicant’s investment, and the applicant’s knowledge and expertise in ensuring that the facility is adequately staffed. Mr. Barbuti stressed that the proposed Agency agreements are critical to the project’s overall financial success. He cited the loss of a prospective casino project in the Town of Liberty for economic reasons, and stated the Agency must do all it can to ensure that this project succeeds. He and other Board members noted that this is the largest project we have seen in our lifetimes, with regard to overall economic impact. Following this discussion, the Board voted and the resolution was unanimously approved.
Attorney Garigliano reminded Board members that they had authorized the Agency to engage Gramercy Communications, LLC to produce a 30 minute presentation and video to the Gaming Facility Location Board. Recently the rules and format for presentations have changed, and a 30 minute presentation with video is no longer permitted. Instead, each speaker will have five minutes to address the Board. In light of these changes, the Agency did not engage Gramercy. Attorney Garigliano asked the Board to authorize Chairman Steingart to engage Fisher Mears, a local advertising firm, to help us prepare for the presentation under the new rules. Mr. White made a motion to recognize that the Agency will not hire Gramercy, and to authorize Chairman Steingart to engage Fisher Mears at a cost not to exceed $7,000.00. Mr. Siegel seconded the motion, the Board voted and the motion was unanimously passed.
Chairman Steingart advised the Board of a bill from Combined Energy Services to the Sullivan County Funding Corporation, for propane used at the Apollo Plaza site. He noted that the SCFC is a pass-through entity and should not be responsible for such costs. Attorney Garigliano stated that the agreements between the SCFC and the County indicate that the SCFC is not responsible for such costs, and that the County will reimburse the SCFC for any expenses paid. He asked that the Board authorize the Agency to pay this bill on behalf of the SCFC. At its next meeting, the SCFC will reimburse the Agency. Mr. Barbuti made a motion to authorize the Agency to pay this bill. Mr. White seconded the motion, the Board voted and the motion was unanimously passed.
Ms. Brylinski advised Board members that no bids were received for the coolers and freezers at the red meat facility. Attorney Garigliano stated that the Agency will re-bid the equipment, as required by our procurement policy. Ms. Brylinski noted that the deadline for expenditure of the equipment grant funds is September 30, 2014. Staff will work with USDA to meet their requirements and deadline.
Chairman Steingart began a discussion of the EPR/ Empire project. Attorney Garigliano stated that the Agency’s goal is to put both casino projects in an identical position when they go before the Gaming Facility Location Board next month. He will send the project documents to the Board for their review in the coming days. Board members agreed to have a special meeting at 12:30 pm on Wednesday, September 3, 2014, to review and vote on the project.
Mr. White and Mr. Sykes acknowledged the importance of the Agency’s work in the future success of Mohegan Sun at the Concord, and thanked Attorney Garigliano for his hard work. Chairman Steingart stated that this is one of his proudest moments as a legislator, and that he believes Sullivan County has the best chance of getting casino gaming in New York State. He noted the tremendous economic benefit that this project will bring to the County, and thanked the Board for their foresight in doing what is best for the County over the long term. Ms. Loughlin and Mr. White shared with the Board and Mr. Cappelli their memories associated with the Concord, and the importance of the revitalization of the site to them.
On a motion made by Mr. Siegel and seconded by Ms. Loughlin, at approximately 1:02 pm the meeting was adjourned.
IDA VP, Business Development