COUNTY OF SULLIVAN INDUSTRIAL DEVELOPMENT AGENCY
One Cablevision Center
Ferndale, New York 12734
(845) 295-2603 – telephone
(845) 295-2604 – fax
REGULAR MEETING MINUTES
Tuesday, July 8, 2014
I. CALL TO ORDER
Chairman Steingart called to order the regular meeting of the County of Sullivan Industrial Development Agency at approximately 10:02 am, held in the Legislative Committee Room at the Sullivan County Government Center, Monticello, New York.
II. ROLL CALL
Members Present- Members Absent-
Ira Steingart Edward Sykes
Steve White Charles Barbuti
Sean Rieber Howard Siegel
Staff Present- Staff Absent-
Jennifer C.S. Brylinski, Exec. Director None
Jen Flad, VP Business Development
Allan C. Scott, ALSCO Management, Inc. /Consultant /IDA CEO
Walter F. Garigliano, Esq., Agency Legal Counsel
Tara Lewis, Garigliano Law Offices
Scott Samuelson, SC Legislature
Gene Benson, SC Legislature
Stephen Stuart, SC Office of Sustainable Energy
Dan Hust, Sullivan County Democrat
Not all attendees were present for the entire meeting.
III. APPROVAL OF MEETING MINUTES
Mr. White made a motion to approve the minutes of the June 10, 2014 regular meeting and the June 24, 2014 special meeting. The motion was seconded by Ms. Shaddock, the Board voted and the minutes of both meetings were unanimously approved.
IV. BILLS AND COMMUNICATIONS
Ms. Loughlin made a motion to approve the revised schedule of payments. The motion was seconded by Mr. White. The Board voted and the revised schedule of payments was unanimously approved.
V. DIRECTORS REPORTS
Ms. Brylinski stated that the red meat construction award letter has been sent to the low bidder, Billman Ross and Associates. Before issuing the Notice to Proceed, the IDA must obtain approval of the bid and related documents from the Department of Commerce. She also stated that the Partnership for Economic Development has a loan program in place to assist businesses affected by disasters, including the recent storm and flooding. She asked those in attendance to pass this information along to any interested parties. Finally, she advised that she recently attended the first meeting of a new small business discussion group, including the Partnership, Chamber of Commerce, Visitors Association, Center for Workforce Development, Small Business Development Center, Planning Division and IDA. She will inform Board members of that group’s progress as it moves forward.
There was a brief discussion of the red meat facility project timeframe. Mr. Garigliano advised that each funding agency has different performance, reporting and administration requirements. He explained that staff is working with these agencies to meet all grant deadlines, or request extensions where appropriate.
Mr. Scott reported that he continues to work with local businesses regarding tax abatement and loan possibilities. He and Ms. Flad will make a presentation before the Town of Fremont Town Board on July 9th. He attended the closing with the SCCC and SCCCDC in Manhattan in late July. He continues to invest the funds of the IDA, and is working to transfer this responsibility to Ms. Flad.
There was a brief discussion of recent IDA and SCFC projects, including the success of Millennium RLF recipients Sticky Fingers and Apple’s Small Engine Repair, and IDA RLF recipient Krispy Apple.
Ms. Brylinski asked whether Board members had any questions about the quarterly profit and loss statement, or the red meat facility expenditure report, which were included in their agenda packets. Members stated that the red meat expenditure report was helpful in conveying the IDA’s commitment of time and money to this project over the past six years.
Ms. Brylinski referred to the Summary of IDA and SCFC Loan Programs, which was included in the agenda packets. She briefly outlined each loan fund, its origin and current level of funding.
She then explained the loan process. Upon receipt of a loan inquiry, she and Mr. Garigliano work with the Partnership to identify the best program for the applicant. They put applicants in the most restrictive programs for which they qualify, to ensure that less restrictive loan monies remain available for those who need them. She noted that she encourages applicants to ask questions about the application before submitting, and helps them throughout the process to prepare a complete application. She works through a checklist and once all loan requirements have been met and all information provided, she forwards the application and related documents to the appropriate loan committee for review. If the committee votes to approve the loan, the matter goes to the full Board for a vote. Traditionally, when the committee approves a loan, the Board concurs and also approves the loan. She added that Mr. Garigliano’s office ensures all financial and legal requirements are met when preparing for loan closing.
Board members discussed whether there is flexibility to redirect loan money to other uses. In the case of the IDA’s Revolving Fund, the IDA has met all HUD requirements associated with the original grant, and now may use the funds in any way it wishes.
Board members also discussed the Rural Micro-entrepreneur Assistance Program. Ms. Brylinski noted that unlike other loan funds, the RMAP was initially funded by a loan from USDA to the IDA. The IDA in turn makes loans to local businesses. The IDA recently began to repay its loan to USDA. Mr. Garigliano stated that, because this program has a sunset date of 2015, the IDA attempts to make new loans using this fund whenever possible before the sunset date. He also noted that the IDA’s success in securing the USDA RMAP loan stems from its proven record of loan administration and high rate of repayment from local businesses.
Ms. Shaddock inquired whether any loan programs have ongoing requirements, for example maintaining jobs created or adding new jobs after a few years. Mr. Garigliano replied no, because these small businesses are susceptible to failure, and placing additional requirements on them could further jeopardize their success.
There was a brief discussion of loan outreach. Mr. Scott stated that he and Ms. Flad include the loan programs in their presentations to the Town Boards. Ms. Flad will attend the Sullivan United mixer on July 15th, to share loan information with local businesspeople. Mr. Garigliano noted that there is no lack of interest in the IDA’s loan programs. The difficulty lies in finding applicants who are creditworthy and have solid business plans. He emphasized that all loans must be paid back, and the IDA works to invest its money in businesses that are likely to succeed. Board members discussed ways to reach out to entrepreneurs, via social media and other outlets. Ms. Brylinski noted that the new small business discussion group plans to put together a brochure or other resource to give an overview of all loan programs. Mr. Rieber encouraged the Board to consider a broader marketing and branding campaign to bring in new entrepreneurs. Mr. Garigliano advised that for legal reasons much of this work must be done through the Partnership. Ms. Loughlin suggested that the Partnership hire a firm specializing in marketing.
VI. NEW BUSINESS
Chairman Steingart requested a motion to enter Executive Session to seek legal advice through attorney-client privilege. Mr. White made a motion, which was seconded by Mr. Rieber. Ms. Loughlin, who has previously disclosed that she serves on the Board of the Partnership for Economic Development, left the room and was not present during the Executive Session, which relates to that entity. The Board entered Executive Session at approximately 10:43 am.
On a motion made by Mr. White and seconded by Ms. Shaddock, the Board came out of Executive Session at approximately 11:01 am. At this time Ms. Loughlin returned to the room.
Mr. Garigliano explained that two entities have submitted casino applications with New York State, for Sullivan County casinos. One is from a subsidiary of Empire Resorts, to develop approximately 180 acres at the Concord, and the other is from the Mohegan Tribal Gaming Authority, in a to-be-determined business relationship with Concord Kiamesha LLC. Concord Kiamesha LLC has notified the IDA that that they plan to apply for IDA benefits. Concord Kiamesha LLC closed with the IDA on a project in 2008. In 2011 they sought to revise the project and asked the IDA for an amendment and restatement of the project documents. The IDA Board passed a resolution authorizing the amendment and restatement, but the 2011 project never closed. Mr. Gargiliano stated that based on initial discussions with Concord Kiamesha LLC, he believes the new project is very similar to the 2011 approved project, but some elements have been removed. He expects that the entity will seek another amendment and restatement of the 2008 project documents.
Mr. Rieber inquired whether a public hearing will be required. Ms. Shaddock inquired about the benefits authorized for the 2008 project, and the possible benefits to be authorized for the anticipated new project. Mr. Garigliano stated that the two applications will be compared in every respect, to determine what changes have been made, what requirements must be met, and what benefits are appropriate. The need for a public hearing will be determined once the IDA sees the new application documents.
Chairman Steingart and members of the Board discussed pending casino applications in Sullivan, Orange and Ulster Counties, the various incentives being offered by the municipalities, and the community benefits being offered by the applicants. Mr. Rieber requested that Concord Kiamesha LLC submit to the IDA a summary of the local benefits proposed as part of its application to the State. Board members concurred, and requested this information from Empire Resorts as well.
A discussion of community benefits followed. Attorney Garigliano replied that in the case of a project that has closed, the IDA cannot impose additional requirements as a condition of approval of an amendment to project documents. He advised that the Board enter Executive Session to get his legal advice on this subject.
On a motion by Ms. Shaddock, and seconded by Mr. Rieber, the Board entered Executive Session at approximately 11:25 am to seek legal advice through attorney-client privilege.
On a motion made by Mr. White and seconded by Ms. Shaddock, the Board came out of Executive Session at approximately 12:09 pm.
On a motion made by Mr. White and seconded by Ms. Loughlin, at approximately 12:09 pm the meeting was adjourned.
IDA VP, Business Development