City of Syracuse Industrial Development Agency 333 West Washington St, Suite 130 Syracuse, NY Tel (315) Fax (315)

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1 City of Syracuse Industrial Development Agency 333 West Washington St, Suite 130 Syracuse, NY Tel (315) Fax (315) Minutes Board of Directors Meeting Tuesday June 18, :30 A.M. Common Council Chambers 304 City Hall 233 East Washington St. Syracuse, NY Board Members Present: William Ryan, John Gamage, Pamela Hunter, M. Catherine Richardson, Esq., Donald Schoenwald, Esq. Staff Present: Ben Walsh, Meghan Gaffey, Esq., Sue Katzoff, Esq., Judith DeLaney, Gregory Streeter, Debra Ramsey Burns. Others Present: Paul Nojaim, Matt Kerwin, Esq., Joe Girardi, Cate Johnson, Tim Carroll, Bob Stamey, Alex Marion Media Present: Rick Moriarty, Jeff Kulikowsky, Ellen Abbott. I. Public Hearing Alexander Properties West, LLC Mr. Ryan opened the Public Hearing at 8:35 a.m. by reading verbatim the Notice of Public Hearing on the Project. A copy of the Public Notice is attached and included in the minutes. After reading the notice, Mr. Ryan asked if anyone in attendance wished to speak in favor of the Project. Paul Nojaim, owner of the company spoke in favor. Mr. Nojaim said the Project located at 307 Gifford St. consisted of the renovation of an existing grocery store, a new 3,000 sq. ft. addition to the store and the purchase of machinery and equipment. He noted the company of which he is the sole owner is the owner of the land and building housing the grocery store, and that the benefits being requested from the Agency were crucial to the success of the Project. He thanked the Board for its consideration. Mr. Ryan then asked an additional two times if anyone else in attendance wished to speak in favor of the Project. No one else spoke in favor. Mr. Ryan then asked if anyone in attendance wished to speak in opposition of the Project. No one spoke in opposition to the Project. Mr. Ryan asked twice more if anyone wished to speak in opposition to the Project. No one spoke in opposition. 1

2 Nojaim Inc. Mr. Ryan opened the Public Hearing at 8:39 a.m. by reading verbatim the Notice of Public Hearing on the Project. A copy of the Public Notice is attached and included in the minutes. After reading the notice, Mr. Ryan asked if anyone in attendance wished to speak in favor of the Project. Paul Nojaim spoke in favor. Mr. Nojaim told the Board he was also the sole owner of Nojaim Inc., the operator of the full service grocery store located at 307 Gifford St. He said the sales tax exemption he was requesting from the Agency was a significant benefit for the Project. He noted he was the third generation of his family to operate the store which has been in the same location for 94 years and to be able to continue in business required substantial investment in the building. After Mr. Nojaim concluded his remarks, Mr. Ryan asked if anyone else in attendance wished to speak in favor of the Project. No one else spoke in favor of the Project. Mr. Ryan then asked an additional two times if anyone else wished to speak in favor of the Project. No one else spoke in favor. Mr. Ryan then asked if anyone wished to speak in opposition of this Project. No one spoke in opposition to the Project. Mr. Ryan asked an additional two times if anyone wished to speak in opposition to the Project. No one spoke in opposition. Mr. Ryan closed the Public Hearing at 8:40 a.m. II. Call Meeting to Order Mr. Ryan called the meeting to order at 8:40 a.m. III. Roll Call Mr. Ryan acknowledged all Board Members were present. 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 May 21, 2013 Board of Directors meeting. Ms. Richardson made the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE MINUTES FROM THE MAY 21, 2013 BOARD OF DIRECTORS MEETING. VI. New Business Alexander Properties West, LLC Ms. Katzoff, noting a Public Hearing had just concluded on the Project, advised the Board they would be voting on resolutions to undertake it. She prefaced her comments by noting the Project is located in a highly distressed census tract of the City. She then said the first resolution for the Board s consideration was an inducement resolution authorizing the Agency to undertake the project.

3 There being no discussion Mr. Ryan asked for a motion to approve the resolution for the Project. Mr. Schoenwald made the motion. Ms. Richardson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION UNDERTAKING THE ACQUISITION, CONSTRUCTION, RENOVATION AND EQUIPPING OF A CERTAIN PROJECT, APPOINTING THE COMPANY AS AGENT OF THE AGENCY FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION, RENOVATION AND EQUIPPING OF THE PROJECT FACILITY AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN AGREEMENT BETWEEN THE AGENCY AND THE COMPANY. Ms. Katzoff then offered a PILOT resolution for the Board s review and approval. She noted the proposed PILOT schedule conforms to the Agency s Uniform Tax Exemption Policy (UTEP) and responded affirmatively to a question by Ms. Richardson confirming same. There being no further questions, Mr. Ryan asked for a motion to approve the PILOT resolution for the Project. Ms. Richardson 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 noting such a resolution would authorize the Chairman to execute documents on behalf of the Agency. She said this Project represented the first retail Project the Agency had undertaken since recent changes in NYS law regarding IDA s had gone into effect and noted the changes had been incorporated in all Agency documents. There being no discussion, Mr. Ryan asked for a motion to approve a Final Resolution. Ms. Richardson made the motion. Mr. Schoenwald 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. Nojaim Inc. Ms. Katzoff then asked the Board to consider resolutions for the Nojaim Inc. Project noting a Public Hearing had also been conducted earlier on it. She advised the Company, as tenant, would only be seeking a sales tax appointment from the Agency. There being no discussion, Mr. Ryan asked for a motion to approve the resolution. Mr. Gamage made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION UNDERTAKING THE ACQUISITION, CONSTRUCTION, RENOVATION AND EQUIPPING OF A CERTAIN PROJECT, APPOINTING THE COMPANY AS AGENT OF THE AGENCY FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION, RENOVATION AND EQUIPPING OF THE PROJECT FACILITY AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN AGREEMENT BETWEEN THE AGENCY AND THE COMPANY. Ms. Katzoff then asked the Board to approve a Final Resolution for the Project.

4 Mr. Ryan asked for a motion to approve the resolution. 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. COR Inner Harbor Company, LLC Ms. Kerwin advised the Board they were being asked to approve resolutions relative to the environmental review of the Project. He noted by approving the first resolution the Board pursuant to SEQRA makes the following findings: the Project constitutes a Type 1 Action, affirms the Agency s status as previously declared Lead Agency, requires the preparation of an environmental impact statement (EIS) as the project may include the potential for at least one significant adverse environmental impact, and as a consequence the Agency will issue a Positive Declaration and will conduct a scoping session to review a draft scope prepared by the Company. Mr. Kerwin suggested the Board consider setting up a public scoping hearing following the next scheduled Board of Directors meeting on July 16, 2013 at which time the public would have the opportunity to comment on the draft scope. After some discussion by the Board Members, Mr. Ryan asked for a motion to approve the proposed SEQRA resolution. Ms. Richardson made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION DETERMINING PURSUANT TO THE STATE ENVIRONMENTAL QUALITY REVIEW ACT THAT A CERTAIN PROJECT MAY INCLUDE THE POTENTIAL FOR AT LEAST ONE SIGNIFICANT ADVERSE ENVIRONMENTAL IMPACT. Mr. Kerwin then advised the Board the second resolution they were being asked to approve acknowledged the receipt of the draft scope from the Company and authorized the scheduling of a scoping session. As noted above the session has been scheduled for July 16 th at 10:30 a.m. in the Common Council chambers. There being no further discussion, Mr. Ryan asked for a motion approving the resolution. Mr. Schoenwald made the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION ACKNOWLEDGING RECEIPT OF A PROPOSED DRAFT SCOPE AND SCHEDULING SCOPING FOR A CERTAIN PROJECT PURSUANT TO THE STATE ENVIRONMENTAL QUALITY REVIEW ACT. COR Inner Harbor Company, LLC Ms. Katzoff advised the Board they were being asked to authorize a Public Hearing for the Project noting the desire of the Company to keep the Project moving forward. She said construction would be completed in phases spanning several years given the size and complexity of the undertaking. She then read into the record as follows the Project description: a) the acquisition by the Agency of an interest in certain improved and unimproved real property consisting of approximately 32 acres of real property located in the City of Syracuse, County of Onondaga, State of New York (the City ), generally bounded by Bear Street on the north, Solar Street on the east, W. Kirkpatrick Street on the south and Geddes Street on the west (collectively the Land ) all located in and around the Inner Harbor in the City; (b) the construction, improvement, renovation and

5 equipping of the Land and improvements to house: (i) an approximately 150,000 square foot building on the corner of W. Kirkpatrick Street and Van Rensselaer Street for educational use together with an approximately 750 car multi story parking facility; (ii) the construction of three (3) mixed use buildings along Solar Street offering approximately 18,000 square feet of ground level retail and two (2) upper levels of office space totaling approximately 36,000 square feet per building, together with associated parking facilities; (iii) the construction of an approximate 150 room hotel on W. Kirkpatrick Street together with a 350 seat banquet facility and support spaces for a future expanded marina at the harbor together with associated parking facilities; (iv) the construction of two (2) mixed use buildings along Van Rensselaer Street to house approximately 125 apartments and approximately 31,000 square feet of street level retail per building together with internal residential parking in each building; (v) the construction of two (2) approximately 18,000 square foot buildings, one on each pier, for use as restaurants and related commercial space; and (vi) the renovation of the existing approximately 24,000 square foot Canal Maintenance Building along the north shore of the harbor for use as retail and commercial or recreational space together with associated parking; and the relocation, renovation and refurbishment of the existing approximately 6,000 square foot Freight House for use as community amenities such as historic and interpretive use and/or educational use, together with associated parking; and all of the foregoing together with related improvements (collectively the Facility ); (c) the acquisition and installation thereon of furniture, fixtures and equipment (collectively the Equipment, and together with the Land and the Facility, the Project Facility ); (d) the granting of certain financial assistance in the form of exemptions from real property tax, mortgage recording tax and State and local sales and use taxation (collectively, the Financial Assistance ); (e) the appointment of the Company or its designee as an agent of the Agency in connection with the acquisition, construction, rehabilitation, renovation, improvement and equipping of the Project Facility; and (f) the lease or sale of the Land and the Facility the Agency pursuant to an agreement and the acquisition of an interest in the Equipment pursuant to a bill of sale from the Company; and the lease or sale of the Project Facility to the Company pursuant to an agreement; There being no discussion Mr. Ryan asked for a motion to approve a resolution authorizing a Public Hearing. Ms. Richardson made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION DETERMINING THAT THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, RENOVATION AND EQUIPPING OF COMMERCIAL MIXED USE FACILITIES AT THE REQUEST OF THE COMPANY CONSTITUTES A PROJECT; DESCRIBING THE FINANCIAL ASSISTANCE IN CONNECTION THEREWITH; AND AUTHORIZING A PUBLIC HEARING FOR THE PROJECT. Application for Financial Assistance Mr. Walsh advised the Board the revised application for Financial Assistance was included in their packet and included revisions both mandated by recently enacted changes in State law regarding IDA s and suggestions made relative to the use of local labor and minority and women owned business enterprises (MWBE) by the Agency s Governance Committee at their meeting in May. Mr. Walsh reported the proposed revisions to the Agency s Local Labor Policy made the use of local contractors and suppliers a requirement for projects of the Agency, whereas previously it was only required to the extent practicable. The term local was proposed to be defined as Cayuga, Madison, Oneida, Onondaga and Oswego Counties. Mr. Gamage suggested including Cortland County as well, which the Board agreed to.

6 Mr. Walsh also advised that language was proposed to be added to the application that requires applicants to acknowledge that it is the preference of the Agency that the applicant provide opportunities for the purchase of goods and services from: (i) business enterprises located in the City of Syracuse; (ii) certified minority and/or women owned business enterprises; and (iii) business enterprises that employee residents of the City of Syracuse. Mr. Walsh and Ms. Katzoff agreed to work with staff to establish the appropriate oversight and enforcement mechanisms for the new policies. After some brief discussion, Mr. Ryan asked for a motion to approve the revision of the Agency s application for Financial Assistance Ms. Richardson made the motion. Ms. Hunter seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE PROPOSED REVISIONS ON THE APPLICATION FOR FINANCIAL ASSISTANCE. Mr. Ryan asked for an update on the Inns At Armory Square Project. Mr. Walsh advised he believed the hotels were scheduled to be opened in July. Mr. Ryan then asked about the Cameron Hill Project. Ms. Gaffey replied there were some ongoing assessment negotiations that should be settled by the end of June. Mr. Ryan commented the Project had stalled long enough and he expressed his desire to see it get moving as soon as possible. Executive Session Ms. Richardson made a motion to move into Executive session for the discussion of the acquisition of Real property and potential litigation. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A MOTION TO MOVE INTO EXECUTIVE SESSION AT 9:23 A.M FOR THE DISCUSSION OF THE ACQUISITION OF REAL PROPERTY AND POTENTIAL LITIGATION. Ms. Richardson made a motion to move out of executive session at 9:40 a.m. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A MOTION TO MOVE OUT OF EXECUTIVE SESSION AT 9:40 A.M. Ms. Richardson made note that Ms. Hunter had left the executive 9:35 a.m. Scannell Properties #128, LLC Ms. Katzoff advised the Board she had received a call from attorney Dan Shulman who represents the Company requesting an early termination of their lease agreement with the Agency. She said the Company indicated all construction was complete. Mr. Ryan asked for a motion to approve a resolution authorizing the termination of the Company s lease agreement. Mr. Schoenwald made the motion. Ms. Richardson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A MOTION AUTHORIZING THE TERMINATION OF THE COMPANY S LEASE AGREEMENT WITH THE AGENCY. VII. Adjournment

7 There being no further business to discuss Mr. Ryan asked for a motion to adjourn the meeting. Mr. Schoenwald made the motion. Mr. Gamage seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A MOTION TO ADJOURN THE MEETING AT 10:20 A.M.

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