COUNTY OF SULLIVAN INDUSTRIAL DEVELOPMENT AGENCY
One Cablevision Center
Ferndale, New York 12734
(845) 295-2603 – telephone
(845) 295-2604 – fax
REGULAR MEETING MINUTES
Monday, November 9, 2015
I. CALL TO ORDER
Chairman Steingart called to order the regular meeting of the County of Sullivan Industrial Development Agency at approximately 11:03 am, in the Legislative Committee Room at the Sullivan County Government Center, Monticello, New York.
II. ROLL CALL
Members Present- Members Absent-
Ira Steingart Sean Rieber
Suzanne Loughlin Edward Sykes
Staff Present- Staff Absent-
Jennifer C.S. Brylinski, Exec. Dir. Jeanne McKean, Proj. Mgr.
Jen Flad, VP Govt. Affairs & Bus. Devt.
Steve White, Agency CEO
Walter F. Garigliano, Esq., Agency Legal Counsel
Tara Lewis, Garigliano Law Offices
III. APPROVAL OF MEETING MINUTES
Ms. Loughlin made a motion to approve the minutes of the October 19, 2015 regular meeting. Mr. Guenther seconded the motion, the Board voted and the minutes of the meeting were unanimously approved.
IV. BILLS AND COMMUNICATIONS
Staff distributed a revised schedule of payments. Mr. Barbuti made a motion to approve the revised schedule of payments. Mr. Guenther seconded the motion, the Board voted and the revised schedule of payments was unanimously approved.
V. DIRECTORS’ REPORTS
Jennifer C.S. Brylinski, Executive Director
Ms. Brylinski gave an update on the three USDA Rural Business Development Grants that had been awarded to the Agency earlier this year. All are proceeding smoothly. The Agency will purchase equipment and lease it to the ultimate recipients, Catskill Distilling Company Ltd., Prohibition Distillery LLC and Roscoe NY Beer Company. Mr. Garigliano reminded the Board that the Agency had applied for a line of credit from Catskill Hudson Bank, to help the Agency meet its cash flow needs with respect to these grants. The Agency needs to pay for the equipment upfront and apply for USDA reimbursement. If the Agency wishes to proceed and close on the line of credit, there will be no fees from Catskill Hudson Bank. Mr. Barbuti made a motion to approve and close on the line of credit, Mr. Smith seconded the motion, the Board voted and this verbal resolution was unanimously approved and adopted.
Ms. Flad advised the Board that the County’s Mid-Hudson Regional Economic Development Council representative had recently inquired whether the Sullivan County Funding Corporation would consider setting aside funds to help offset the cost of grant applications during 2016, as it had during 2015. While this is a Funding Corp. decision and no action is to be taken at this time, she wanted to bring it to the Board’s attention. Chairman Steingart noted that this kind of effort is an important way for the Agency to show its support for local businesses. Staff and Board members discussed the success of the program during 2015, and there was support for renewing the program in the future.
Ms. Flad advised the Board that she had had some discussion with the County Planning Division about ways to assist loan recipients through provision of technical assistance. Sullivan Renaissance has expertise in hospitality, graphic design, beautification, and related areas, and a mentor program could help recipients avoid default. Board members expressed support but made clear that the Agency must focus on its status and expertise as a lender, and let other agencies including Renaissance, the Chamber of Commerce, the Partnership, and Sullivan Alliance for Sustainable Development lend their own expertise as mentors. In this way the Agency can avoid lender liability problems and focus on the work that we do best.
VI. OLD BUSINESS
Mr. Garigliano handed out an amended resolution regarding Mogenavland, LLC. He reminded the Board that they had approved a resolution authorizing a mortgage refinance at the last meeting, and advised that the amount of the mortgage has been reduced and the Company now seeks a mortgage tax exemption. These changes are reflected in the amended resolution. Mr. Siegel made a motion to approve the resolution. Mr. Guenther seconded the motion, the Board voted and the resolution was unanimously approved.
VII. NEW BUSINESS
Chairman Steingart directed the Board’s attention to a resolution authorizing an extension of the sales tax exemption period for Jam Two, LLC/ International Contractors Corp. Mr. White advised that the project has been successful and will be more successful in the future. The extension of the sales tax exempt period will allow the Company to undertake electrical work to become more energy efficient. Mr. Barbuti made a motion to approve the resolution. Mr. Guenther seconded the motion, the Board voted and the resolution was unanimously approved.
Mr. Garigliano advised the Board that he has been made aware that the mortgage with respect to Cannie D’s Corner Corp. will likely be in an amount greater than authorized by the Board at the October meeting. He advised the Board that if this is the case, they will be presented with an amended resolution at a future meeting.
Prior to going into a closed attorney-client privileged session, Chairman Steingart asked for any public comment. Chairman Steingart recognized Ms. Hesse and Mr. Walter, each of whom made a public comment.
On a motion made by Ms. Loughlin and seconded by Mr. Barbuti, the Board entered closed attorney-client privileged session to seek advice from counsel regarding several defaulted loans at approximately 11:41 am.
On a motion made by Mr. Siegel and seconded by Mr. Barbuti, the Board came out of attorney-client privileged session at approximately 11:56 am.
With respect to loans made by the Agency, Mr. Barbuti made a motion to authorize the Agency to pay special district taxes on any secured loan if the mortgage lien will be negatively impacted by tax foreclosure. Mr. Guenther seconded the motion, the Board voted and the motion was unanimously approved.
There being no further discussion by the Board, on a motion made by Mr. Siegel and seconded by Mr. Guenther, the Board voted and the meeting was adjourned at 11:58 am.
Jen Flad, VP Govt. Affairs & Business Development