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, October 14, 2014
I. CALL TO ORDER
Chairman Steingart called to order the special meeting of the County of Sullivan Industrial Development Agency at approximately 10:04 am, held in the Legislative Hearing Room at the Sullivan County Government Center, Monticello, New York.
II. ROLL CALL
Members Present- Members Absent-
Ira Steingart Sandy Shaddock
Charles Barbuti Carol Roig
Edward Sykes Suzanne Loughlin
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
Jill Weyer, SC Planning Division
Tammy Magnus, Superintendent, Monticello Central School District
Jeff Weyer, Riverside Remedies Rx Corp.
Dan Hust, SC Democrat
III. APPROVAL OF MEETING MINUTES
Mr. Sykes made a motion to approve the minutes of the August 12, 2014 regular meeting, and the August 27, September 3 and September 30 special meetings. Mr. Siegel seconded the motion, the Board voted and the minutes of the four meetings were unanimously approved.
IV. BILLS AND COMMUNICATIONS
Mr. Sykes made a motion to approve the revised schedule of payments. Mr. Barbuti seconded the motion, the Board voted and the revised schedule of payments was unanimously approved.
Attorney Garigliano stated that the Agency has received a check for $237,473.90, from RSS Realty Associates, LLC/ S&S Waverly LLC, to pay off the mortgage that the Agency had placed against the property. The check includes the principal and interest due, but not the Agency’s out of pocket expenses. Mr. Rieber made a motion to accept the payment. Mr. Siegel seconded the motion, the Board voted and the motion was unanimously approved.
V. DIRECTORS’ REPORTS
Jennifer C.S. Brylinski, Executive Director
Ms. Brylinski informed the Board that the video feed of the September 23 casino public comment event is now online. She thanked the Board and all speakers for their hard work in this effort. She stated that USDA- Rural Development staff audited the Agency’s Rural Microentrepreneur Assistance Program (RMAP) last week, and the Agency will receive follow-up comments and findings from USDA in the near future.
She continued that on September 26, the Agency held a bid opening for the coolers and freezers for the red meat facility. The Agency has received a USDA grant of $175,000 to purchase the equipment, and the low bid for coolers and freezers came in at $476,000. Attorney Garigliano advised that the Agency reject the bid, which he believes is high due to prevailing wage reporting that is required by USDA. He recommended that the USDA grant funds can be used to purchase equipment such as tables, saws, and other items that do not require on-site installation. Mr. Siegel made a motion to reject the bid. The motion was seconded by Mr. Rieber. Mr. Barbuti recused himself from this discussion, as the project is located in the Town of Liberty and he is the Town of Liberty Supervisor. The Board voted and the motion was passed with Mr. Barbuti abstaining for the reason described above. As authorized by previous resolutions, staff will proceed with revising the equipment list, and will move forward with the procurement process.
Allan Scott, CEO
Mr. Scott stated that he and Ms. Brylinski worked with Riverside Remedies Rx. Corp. on its loan application, which is before the Board today. He continues to network with casino projects. He and Ms. Flad met with the Town Boards in Cochecton and Tusten during September. He worked with the Krispy Apple in Rock Hill to secure additional loan financing and get all necessary approvals, and advised the Board that the Krispy Apple will hold a ribbon cutting on October 17th. He and Ms. Flad met with Sutphen East, to discuss ways to keep that business here in Sullivan County.
VI. OLD BUSINESS
Ms. Brylinski stated that under the law, the Agency must pass its 2015 Budget this month. The Board received the draft budget via e-mail. A public hearing was held on October 10th and no comments were received. Mr. White made a motion to approve and adopt the budget. Mr. Siegel seconded the motion, the Board voted and the motion was unanimously approved.
VII. NEW BUSINESS
Ms. Brylinski stated that there is a resolution before the Board to approve a loan and grant application from Riverside Remedies Rx. Corp. The applicant initially applied for loan funds through the Agency’s regular Revolving Loan Fund (RLF) program, and the RLF committee reviewed and approved the application. Since that time, staff determined that the Rural Microentrepreneur Assistance Program (RMAP) would be a better fit for the applicant. The RMAP committee has reviewed and approved the application. Ms. Brylinski introduced Jeff Weyer of Riverside Remedies Rx. Corp. to the Board. She advised the Board that the application is for $40,000 in loan funds, and $10,000 in grant funds. Mr. Barbuti made a motion to adopt the resolution approving the loan and grant. Mr. Rieber seconded the motion. Mr. Sykes recused himself from the discussion, because the project is located in the Town of Delaware and he is the Town of Delaware Supervisor, and because he has a family relationship to the applicant. Mr. Siegel commented that the business plan is very thorough and positions the applicant well for success. The Board voted and adopted the resolution with Mr. Sykes abstaining for the reasons described above.
Attorney Garigliano informed the Board that Ginsberg’s Foods and Lloyd Oretsky of Bridgeville Office Centre, LLC have signed an option agreement with respect to the food hub. He presented the option agreement to Chairman Steingart, who signed it as well. Under this agreement, Mr. Oretsky will accept option payments in lieu of rent until a lease is signed, or until the option expires on December 31, 2014. During this time, HVADC will work with NYS Empire State Development to redirect the CFA grant funds to be used at this new location.
Chairman Steingart thanked everyone who has participated in the casino effort. On the advice of Wilson Elser, he asked the Board to consider funding additional funding to advocate for two casinos in Sullivan County. This funding will be used to buy media space in strategic outlets, to pay Fisher Mears for their expenses in producing the advertisements, and to pay for an additional study on the benefits of gaming in Sullivan County. The Agency will pay for 70 percent of these costs, with other local agencies paying for the remainder of the cost. Mr. Siegel made a motion to fund these efforts in an amount not to exceed $50,000. Mr. White seconded the motion. The Board voted and the motion was unanimously approved.
The Board discussed the Agency’s current cash flow. The Agency has invested significant funds in the red meat facility, and savings are depleted while awaiting reimbursement from the granting agencies. Ms. Brylinski and Attorney Garigliano noted that to help ease cash flow issues, the Agency could seek to borrow funds from the Sullivan County Funding Corp. Mr. Rieber made a motion to request a $100,000 loan from the Sullivan County Funding Corp. to the Agency for this purpose. Mr. Barbuti seconded the motion, the Board voted and the motion was unanimously approved.
Chairman Steingart asked the Board and others present for public comment. Ken Walter passed out an article from the Times Herald-Record concerning the Orange County IDA and public funds. With respect to casino public relations efforts, he stressed that new employment opportunities will be maximized by locating two casinos in Sullivan County, and urged the Board to convey this message in its ads. Star Hesse commented that there was a lively discussion of the Millennium Pipeline project at the Town of Tusten Town Board meeting, at which Mr. Scott and Ms. Flad were present. She suggested that public ideas and input be considered during Agency project deliberations, and noted that it is difficult to hear Board discussions in the Legislative Hearing Room. On a motion made by Mr. Rieber and seconded by Mr. Sykes, at approximately 10:43 am the meeting was adjourned.
IDA VP, Business Development