COUNTY OF SULLIVAN INDUSTRIAL DEVELOPMENT AGENCY
One Cablevision Center
Ferndale, New York 12734
(845) 295-2603 – telephone
(845) 295-2604 – fax
RECONVENED MEETING MINUTES
Tuesday, November 25, 2014
I. CALL TO ORDER
Chairman Steingart called to order the reconvened meeting of the County of Sullivan Industrial Development Agency at approximately 3:07 pm, 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
Carol Roig Sean Rieber
Staff Present- Staff Absent-
Jen Flad, VP Business Devt. Jennifer C.S. Brylinski, Exec. Dir.
Steve White, Agency CEO
Walter F. Garigliano, Esq., Agency Legal Counsel
Tara Lewis, Garigliano Law Offices
III. NEW BUSINESS
Attorney Garigliano described the resolution before the Board today, concerning the GA HC REIT II 61 EMERALD NY MOB, LLC (“Crystal Run”) project. He reminded the Board that in September 2013, Crystal Run Healthcare sold its real property to GA HC REIT II, and now GA HC REIT II is merging with another real estate investment trust called Northstar REIT. This transaction is valued at approximately four billion dollars. At closing the new entity will borrow 2.6 billion dollars, secured by mortgages on over 200 properties, including the Rock Hill facility. The Rock Hill facility is valued at approximately 27 million dollars. Under our lease agreement, this change in control requires Agency consent. The Agency must also sign a mortgage related to the Rock Hill facility. The exact allocation of debt secured is still being negotiated, so the resolution before the Board authorizes a mortgage of up to 30 million dollars. He added that the value of the mortgage is immaterial to the Agency and to the County, because the Agency will not abate the mortgage transfer tax. The end result is that the County will collect a mortgage transfer tax equal to one percent of the mortgage amount, and will disburse these funds to the town and state.
Ms. Loughlin made a motion to approve the resolution consenting to the transfer of voting interests and authorizing the execution of a mortgage relating to the Rock Hill facility. Mr. Sykes seconded the motion, the Board voted and the resolution was unanimously approved.
Attorney Garigliano advised that he had received a draft application from Center One Holdings LLC, seeking to expand and build additional retail stores with office space on the second floor. This is their right under their existing PILOT agreement with the Agency. They plan to create new jobs. The Agency will be asked to grant sales tax and mortgage tax abatements, and to amend the existing PILOT to consider the additional square footage. He advised that the final application would be before the Board at its December meeting.
The Board discussed the recent announcement that the next casino location board meeting will be held on December 17th, and the expectation that the decision on casino locations will be announced on that date. Board members discussed the efficacy of future advertising efforts. They agreed not to expend additional resources on advertising, and to cancel existing orders for future work.
On a motion made by Mr. Sykes and seconded by Mr. Barbuti, at approximately 3:27 pm the meeting was adjourned.
IDA VP, Business Development