January 24, 2013 - City of Syracuse

City of Syracuse
Industrial Development Agency
333 West Washington St, Suite 130
Syracuse, NY 13202
Tel (315) 473‐3275 Fax (315) 435‐3669
Minutes
Industrial Development Agency
Board of Directors Meeting
Thursday January 24, 2013 9:00 A.M.
Common Council Chambers – 304 City Hall
233 East Washington St.
Syracuse, NY 13202
Board Members Present: William Ryan, John Gamage, Pamela Hunter, Donald Schoenwald, Esq.
Excused: Catherine Richardson, Esq.
Staff Present: Ben Walsh, Meghan Gaffey, Esq., Sue Katzoff, Esq., Judith DeLaney, Gregory Streeter,
Debra Ramsey‐Burns.
Others Present: John Lacey, Brenda Colella, Garth Coviello, Wendy Reese, Kerry Quaglia, Crystal
Cosentino, Nicole Samolis, Kevin Samolis, Bruce Osterman, Brenda Colella, John Lacey, Marty
Masterpole.
I. Public Hearing–
Strathmore Huntley Group, LLC
Mr. Ryan opened the Public Hearing at 8:59 a.m. by reading verbatim the Notice of Public Hearing on
the Strathmore Huntley Group, LLC Project. A copy of the Public Notice is included in the minutes.
After reading the notice, Mr. Ryan asked if anyone in attendance wished to speak in favor of the Project.
John Lacey, who identified himself as a representative of Huntley Strathmore Group, LLC, spoke in favor.
Mr. Lacey said the Project would entail the reconstruction and renovation of 42 residential apartments,
four of which will be available to residents with an income of 80% or less of the area median income.
Noting the Project had been discussed at the last Board meeting, Mr. Lacey asked if there were any
questions.
There being no questions, Mr. Ryan asked an additional two times if anyone else wished to speak in
favor of the Project. No one else spoke in favor of the Project.
Mr. Ryan then asked if anyone in attendance wished to speak in opposition to the Project. No one spoke
in opposition to the Project. Mr. Ryan than asked an additional two times if anyone wished to speak in
opposition to the Project. No one spoke in opposition.
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Mr. Ryan closed the Public Hearing at 9:04 a.m.
II. Call Meeting to Order –
Mr. Ryan called the meeting to order at 9:04 a.m.
III. Roll Call –
Mr. Ryan acknowledged that all Board members were present with the exception of Ms. Richardson,
who was excused.
IV. Proof of Notice –
Mr. Ryan noted the notice of the meeting had been timely and properly provided.
V. Minutes –
Mr. Ryan asked for a motion to accept the minutes from the December 18, 2012 Board of Directors
meeting. Mr. Gamage made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS
PRESENT UNANIMOUSLY ACCEPTED MINUTES FROM THE DECEMBER 18, 2012 BOARD OF DIRECTORS
MEETING.
VI. Committee Reports –
Finance Committee Report
Mr. Ryan said a meeting of the Finance Committee had been held immediately preceding the Board of
Directors meeting at 8:00 a. m. At that meeting the Finance Committee reviewed two requests for
funding; one from CNY Affordable Properties, Inc., and the other from the City of Syracuse for the
benefit of Bank Alley. He advised the Committee agreed to recommend to the Board approval of the
scheduling of a Public Hearing and funding in the amount of $225,000 for the Bank Alley Project. He
further advised several questions regarding the CNY Affordable Properties, Inc. request had arisen and
Mr. Walsh would be meeting with individual Committee members to provide them with additional
information on the Project. He said the Committee agreed to recommend a Public hearing be held on
the Project pending those discussions.
VII. New Business –
Strathmore Huntley Group, LLC
Ms. Katzoff told the Board they were being asked to approve resolutions undertaking the Project. She
advised the first resolution for the Board’s consideration was a SEQRA resolution constituting the
Project as an unlisted action, naming the Agency as Lead Agency for purposes of SEQRA, noting the
Project would have no significant effect on the environment and authorizing the Agency to issue a
negative declaration.
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Mr. Ryan asked for a motion to approve the SEQRA Resolution. Mr. Schoenwald made the motion. Mr.
Gamage seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A
RESOLUTION CLASSIFYING A CERTAIN PROJECT AS AN UNLISTED ACTION PURSUANT TO THE STATE
ENVIRONMENTAL QUALITY REVIEW ACT, DECLARING THE AGENCY LEAD AGENCY FOR PURPOSES OF
AN UNCOORDINATED REVIEW THEREUNDER AND DETERMINING THAT THE PROJECT WILL NOT HAVE
A SIGNIFICANT EFFECT ON THE ENVIRONMENT.
Ms. Katzoff then asked the Board to approve an Inducement Resolution for the Project.
There being no discussion, Mr. Ryan asked for a motion to approve an Inducement resolution for the
Project. Mr. Schoenwald made the motion. Mr. Gamage seconded the motion. ALL BOARD MEMBERS
PRESENT UNANIMOUSLY APPROVED A RESOLUTION UNDERTAKING THE ACQUISITION, RENOVATION
AND EQUIPPING OF A CERTAIN PROJECT, APPOINTING THE COMPANY AS AGENT OF THE AGENCY FOR
THE PURPOSE OF THE ACQUISITION, RENOVATION AND EQUIPPING OF THE PROJECT FACILITY AND
AUTHORIZING THE EXECUTION AND DELIVERY OF AN AGREEMENT BETWEEN THE AGENCY AND THE
COMPANY.
Ms. Katzoff said the next resolution for the Board’s consideration was a PILOT resolution. Mr. Walsh
advised the Board the PILOT conforms to the Agency’s Uniform Tax Exemption Policy (UTEP).
There being no discussion, Mr. Ryan asked for a motion to approve a PILOT resolution for the Project.
Mr. Gamage made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT
UNANIMOUSLY APPROVED A RESOLUTION APPROVING A PAYMENT IN LIEU OF TAX SCHEDULE AND
AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS BY THE AGENCY IN
CONNECTION WITH A CERTAIN PROJECT UNDERTAKEN AT THE REQUEST OF THE COMPANY.
Ms. Katzoff then asked the Board to approve a Final Resolution for the Project authorizing the Chairman
to execute documents on behalf of the Agency. Mr. Ryan asked for a motion. Mr. Schoenwald made the
motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED
A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS BY THE
AGENCY IN CONNECTION WITH A CERTAIN PROJECT UNDERTAKEN AT THE REQUEST OF THE
COMPANY.
Hotel Skyler, LLC
Ms. Katzoff advised the Board they were being asked to approve a request by the Company to authorize
the Agency’s participation in the execution of documents relative to a refinance of a first mortgage for
the Project. She noted the project was originally undertaken by the Agency in 2010.
There being no discussion, Mr. Ryan asked for a motion authorizing approval of the resolution. Mr.
Gamage made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT
UNANIMOUSLY APPROVED A RESOLUTION APPROVING THE AGENCY’S PARTICIPATION IN THE
REFINANCING OF THE CONSTRUCTION LOAN TO PERMANENT LOAN AT THE REQUEST OF THE
COMPANY IN CONNECTION WITH THE COMPANY’S COSTS ASSOCIATED WITH THE PROJECT FACILITY
AND AUTHORIZING THE EXECUTION OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH.
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James Street Apartments, LLC
Ms. Katzoff advised the Board the Company was requesting an extension of its sales tax appointment
through December 31, 2013. She noted the Project was well underway but the Company needed
additional time for a full completion.
As the Board members indicated their agreement, Mr. Ryan asked for a motion to approve the
resolution. Mr. Schoenwald made the motion. Mr. Gamage seconded the motion. ALL BOARD
MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION APPROVING AN EXTENSION OF THE
SALES TAX APPOINTMENT AGENT STATUS OF JAMES STREET APARTMENTS, LLC UNTIL DECEMBER
31ST, 2013.
CNY Affordable Properties, Inc.
Mr. Walsh advised the Board they were being asked to authorize a Public Hearing for the Project.
He noted, as reported by Mr. Ryan previously, individual members of the Finance Committee had
additional questions about the Project and he would be meeting with them to provide further
information. Mr. Ryan noted the Committee agreed to authorize a Public Hearing with the
understanding that it would reserve the right to cancel the Hearing if all members were not comfortable
with the additional information provided.
With the aforementioned understanding, Mr. Ryan asked for a motion to authorize a Public Hearing for
the Project. Mr. Schoenwald made the motion. Ms. Hunter seconded the motion. ALL BOARD
MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION DETERMINING THAT THE GRANTING
BY THE AGENCY OF A REIMBURSABLE GRANT TO THE COMPANY IN AN AMOUNT NOT TO EXCEED
$500,000 IN CONNECTION WITH A CERTAIN ECONOMIC DEVELOPMENT PROJECT CONSTITUTES A
PROJECT AND AUTHORIZING A PUBLIC HEARING.
Bank Alley
Mr. Walsh requested the Board authorize a Public Hearing for the Project. He noted, as reported by Mr.
Ryan, the Finance Committee had reviewed the Project and was recommending the Board approve
funding for the Project with an increase in the amount to $225,000.
Mr. Ryan asked for a motion to approve a resolution authorizing authorizing a Public Hearing for the
Project. Mr. Gamage made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS
PRESENT UNANIMOUSLY APPROVED A RESOLUTION DETERMINING THAT THE ISSUANCE BY THE
AGENCY OF A REIMBURSABLE GRANT TO THE CITY OF SYRACUSE IN AN AMOUNT NOT TO EXCEED
$225,000 IN CONNECTION WITH A CERTAIN ECONOMIC DEVELOPMENT PROJECT CONSTITUTES A
PROJECT AND AUTHORIZING A PUBLIC HEARING.
Infinity Armory, LLC
Mr. Walsh advised the Board they were being asked to authorize a Public Hearing for the Project. He
briefly reviewed the Project noting it entailed the renovation of the largely vacant former Wells &
Coverly building on South Salina Street at an anticipated cost of $2.9 million dollars. He then introduced
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an owner of the Company, Kevin Samolis, and asked that he briefly address the Board regarding the
Project.
Mr. Samolis said he and his wife Nicole, the owners of the Events Company, are undertaking the Project
to acquire and renovate the building for use as a venue for social and corporate events. He noted they
were excited to be part of the ongoing revitalization of Salina Street and anticipated the Project would
be completed before the end of the year, creating an estimated 20 part time job positions.
After some discussion Mr. Ryan asked for a motion to authorize a Public Hearing. Mr. Schoenwald made
the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY
APPROVED A RESOLUTION DETERMINING THAT THE ACQUISITION, RENOVATION, CONSTRUCTION
AND EQUIPPING OF A CERTAIN PROJECT AT THE REQUEST OF THE COMPANY CONSTITUTES A PROJECT
AND DESCRIBING THE FINANCIAL ASSISTANCE IN CONNECTION THEREWITH AND AUTHORIZING A
PUBLIC HEARING.
VIII.
Other Business
Mission Statement and Performance Measures
Mr. Walsh advised the Board they were being asked to approve a proposed Mission Statement and
establish performance measures for the Agency as required under the Public Authorities Law. He noted
the proposals included in the Board’s Agenda packet were revised in discussions with Catherine
Richardson, a Governance Committee member, after an initial review by that Committee.
After a brief discussion Mr. Ryan asked for a motion to adopt the proposed Mission Statement and
performance measures for the Agency. Mr. Gamage made the motion. Mr. Schoenwald seconded the
motion. ALL BOARD MEMBERS UNANIMOUSLY APPROVED THE PROPOSED MISSION STATEMENT AND
PERFORMANCE MEASURES AS PRESENTED.
Acknowledgement of Fiduciary Duty
Mr. Walsh noted the Board’s Agenda packet included an Acknowledgement of Fiduciary Responsibility
required to be reviewed and signed by Board members under the Public Authorities Law. He asked that
each Board member either sign or re‐sign the statement and return to him.
Reschedule February 2013 Board Meeting
Mr. Walsh noted it appeared the February Board meeting would need to be rescheduled. He said he
would advise the Board of the date and time as soon as possible.
IX. Executive Session –
Mr. Ryan made a motion to move into executive session to discuss potential litigation involving Destiny
USA. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY
APPROVED A MOTION TO MOVE INTO EXECUTIVE SESSION FOR DISCUSSION OF POTENTIAL
LITIGATION AT 9:24 A.M.
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While in executive session a motion was made by Mr. Schoenwald to AUTHORIZE THE CHAIRMAN,
WORKING WITH COUNSEL,TO EXECUTE THE NECESSARY DOCUMENTS, AND TO FILE THOSE
DOCUMENTS WITH THE CITY OF SYRACUSE’S BOARD OF ASSESSMENT REVIEW, TO SEEK A REVIEW OF
THE ASSESSED VALUES ON THE PARKING PARCELS IN FURTHERANCE OF ONGOING NEGOTIATIONS
BETWENN SIDA,PYRAMID COMPANY OF ONONDAGA AND RELATED DESTINY ENTITIES AND FURTHER
AUTHORIZE THE CHAIRMAN THROUGH COUNSEL TO CONTINUE ON WITH SETTLEMENT
NEGOTIATIONS. The motion was seconded by Ms. Hunter. The motion was approved by a three to one
majority. Mr. Ryan, Ms. Hunter, and Mr. Schoenwald voted in favor of the motion. Mr. Gamage voted
against the motion.
Ms. Hunter made a motion to move out of executive session. Mr. Schoenwald seconded the motion. ALL
BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A MOTION TO MOVE OUT OF EXECUTIVE
SESSION AT 10:30 A.M.
X. Adjournment –
There being no further business to discuss Mr. Ryan asked for a motion to adjourn the meeting. Ms.
Hunter made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT
UNANIMOUSLY AGREED TO ADJOURN THE MEETING AT 10:33 A.M.
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