ACCEPTED BY BOARD MEMBERS 5/17/18 MINUTES IDA REGULAR MEETING APRIL 26, 2018 PRESENT Theresa Ward, Chair Grant Hendricks, Vice Chairman Peter Zarcone, Treasurer Anthony Giordano, Secretary Gregory Casamento, Member Kevin Harvey, Member Sondra Cochran, Member EXCUSED ABSENCE None ALSO PRESENT Anthony J. Catapano, Executive Director Kelly Morris, Deputy Executive Director John McNally, Associate Director Marketing & Outreach Daryl Leonette, Executive Assistant Regina Halliday, Bookkeeper William Wexler, Agency Counsel Melissa Bennett, Esq., Barclay Damon LLP Seth Lounsbury, Legislative Aide, Legislator Lindsay Christina DeLisi, Legislative Aide, Presiding Officer DuWayne Gregory Kimberly Scalice, Legislative Aide, Legislator Cilmi Brendan Chamberlain, Legislative Aide, Legislator Muratore Greg Moran, Legislative Aide, Legislator Trotta David Chauvin, Zimmerman/Edelson, Inc. Victor Ocasio, Reporter, Newsday Regina Zara, Chief Financial Officer, Suffolk County Economic Development Corporation
SCIDA MINUTES -2- APRIL 26, 2018 Angela Glaser, Executive Assistant, Suffolk County Economic Development Corporation Bridget Stokes, Housing Specialist, Wyandanch Community Development Kevin Gremse, National Development Council The Regular Meeting of the Suffolk County Industrial Development Agency held in Media Room #184 in the lower level of the H. Lee Dennison Building, 100 Veterans Memorial Highway, Hauppauge, NY was called to order at 12:35 p.m. by Ms. Ward, Chair of the IDA. PUBLIC COMMENT Ms. Ward opened the public comment portion of the Suffolk County Industrial Development Agency Meeting and no comments were received. Upon a motion by Mr. Hendricks, seconded by Mr. Zarcone, it was: RESOLVED, to end the Public Comment portion of the meeting of the Suffolk County Industrial Development Agency. NEW BUSINESS JDJ Gateway JV, LLC: Request for an inducement resolution for a lease transaction. Mr. Catapano presented Exhibit A. JDJ Gateway JV, LLC is a real estate holding company for residential/commercial and an investment and development firm. The proposed project is a mixed use multi-family development consisting of 66 rental apartment units and 13,500 square feet of retail/office space. Mr. Catapano indicated this project is part of the Town of Huntington efforts to revitalize downtown Huntington Station. This is the second project under the Renaissance Master Development of Huntington Station. The first was Northridge (construction & equipping 16 rental apartments and retail/commercial space) mixed use. Northridge is located in Huntington Station. BGRD is the developer and they are almost ready to open. JDJ Gateway JV, LLC involves the demolition of a 11,000 square foot building and construction of 61,000 square foot mixed-use building consisting of 66 rental apartments. Mr. Catapano stated the cost of this project is approximately $21 million. JDJ Gateway JV, LLC is the developer of this project and Gregory DeRosa is the President and also involved with Stewart Avenue Ventures in downtown Huntington. Mr. Catapano stated that the Agency utilized the services of Kevin Gremse, National Development Council (NDC) who is in contract with the Suffolk County Department of Economic Development. Mr. Catapano stated Mr. Gremse advised the Agency and helped structure the property tax abatements. Mr. Catapano indicated that we are fortunate to have Mr. Gremse here today to give us an overview of his analysis. Mr. Gremse indicated JDJ Gateway JV, LLC (the Developer ) is an affiliate of G2D Development ( G2D ). This project is a $22.1 million development being built on 7 parcels.
SCIDA MINUTES -3- APRIL 26, 2018 The project will be 61,000 square feet involving the construction of 62 units (11 studios, 45 one-bedroom units and 10 two-bedroom units). Mr. Gremse indicated the current existing aggregate taxes are $66,000 and based on the proposed improvements the full taxes are estimated to be $342,859 and they cannot develop the project at that cost. Mr. Gremse stated we are working within the uniform tax-exemption policy and came up with a property tax abatement schedule. The proposed abatement is consistent with the uniform tax exemption policy 15 year 485 (b). This abatement decreases 4% per year over a 15 year term. The increment in the increase in taxes of the new project compared to the existing taxes is quite significant over 15 years. Ms. Ward inquired about the Restore New York grant and asked what the eligibility is for it. Mr. Gremse stated it was a grant received years ago its purpose is to offset the infrastructure site costs. Mr. Catapano introduced Ryan Porter, Renaissance, and Gregory DeRosa, President of G2D Development and a Member of JDJ Gateway JV, LLC to Board Members. Mr. Porter stated the Restore NY grant was awarded in 2008 for the 1000 New York Avenue site which is one of the properties involved in this there are 7 different parcels. The Town put out a Request for Proposal (RFP) in September, 2010 and could not make the project financially feasible and did not move forward with the RFP. Mr. Ryan indicated the current project came along 5 parcels and the Empire State Development was excited we were going to make a much larger project that was $20 million. Mr. Ryan indicated we went through the process to get the grant approved. The grant is going to apply to parking and infrastructure costs. Mr. DeRosa the grant only gets paid when the project has there Certificate of Occupancy. Mr. Catapano stated in the meeting package there are color renderings of the project of the existing sites and proposed new development. Ms. Cochran stated you said the grant was issued in 2008 and it was reapplied when you came to them with this project did you got extensions, and Mr. Porter said we are going to be able to implement this project. Ms. Cochran asked when was last time you received an extension and Mr. Porter replied within the last 3 months. Ms. Cochran asked do you think you will need another extension and Mr. Porter replied no they would like to see us get the closing done. Ryan Porter made a presentation to Board Members. Mr. DeRosa indicated that he would like to answer Ms. Cochran s question regarding affordable apartments; this project is 66 units; 45-1 bedrooms; 11-2 bedrooms and 10 studios the unit mix and size is much smaller then has been done in Huntington Village. The smaller one bedroom apartments drive down the rental price to make them more affordable than the larger units. Ms. Cochran stated some of these apartments are under fair market value and Mr. DeRosa replied the smaller units are not typical one bedroom. Ms. Cochran indicated she was talking about whether there are any affordable units; 5 or 10 units that would be offered to people that are income eligible. Mr. DeRosa indicated no not at this project but the Town has other requirements for master development and that was not one of them for this project. Mr. DeRosa stated based on his leasing experience in Huntington smaller units do lend themselves to younger people which I think is what we want. Ms. Cochran indicated that she would like to see everyone stay here.
SCIDA MINUTES -4- APRIL 26, 2018 Mr. Porter stated the Northridge project that was assisted by the IDA will hold a ribbon cutting on May 7, 2018, and Ms. Morris indicated all Board Members are invited. Ms. Ward asked there are 132 parking spaces are they all structured and Mr. DeRosa stated it is split half parking on ground floor accessible for retail and half parking on the top level accessible from Olive Street, Huntington. Ms. Ward stated it is 2 level deck with street level access at each level and Mr. DeRosa said yes. Ms. Cochran inquired about the job creation, managers and maintenance people does that have any connection to the retail space and Mr. DeRosa responded we have 5 full time employees dedicated to the residential component and we are exploring opportunities for medical uses and office uses which will generate a lot more jobs. Mr. Harvey inquired what is the timeline of the project and Mr. DeRosa stated we plan to break ground in July or August of 2018. Ms. Ward stated in the organizational chart there was another entity listed JDJ Huntington LLC who is that and Mr. DeRosa replied they are partnered with him and he will manage and they will oversee it. Upon a motion by Mr. Hendricks, seconded by Ms. Cochran, it was: RESOLVED, to approve an inducement resolution in the approximate amount of $18,896,800 for JDJ Gateway JV, LLC. OLD BUSINESS Precare Corp. d/b/a Premier Care Industries: Request for a final resolution for a lease transaction. Mr. Catapano presented Exhibit B. Precare Corp. d/b/a Premier Care Industries is a manufacturer and distributor of personal care products (baby wipes, household products, and industrial products). Mr. Catapano indicated that the Company was approved for an inducement resolution on March 22, 2018. A public hearing was held on April 23, 2018 and no comments were received. The Company is ready for final approval. Upon a motion by Mr. Hendricks, seconded by Mr. Zarcone, it was: RESOLVED, to approve a final resolution in the approximate amount of $2,560,000 lease transaction for Precare Corp. d/b/a Premier Care Industries.
SCIDA MINUTES -5- APRIL 26, 2018 Seal Dynamics LLC: Request for a final resolution for a lease transaction. Mr. Catapano presented Exhibit C. Seal Dynamics LLC is a distributor of aircraft parts worldwide. Mr. Catapano indicated that the Company was approved for an inducement resolution on February 22, 2018. A public hearing was held on April 23, 2018 and no comments were received. The Company is ready for final approval. Upon a motion by Mr. Hendricks, seconded by Ms. Cochran, it was: RESOLVED, to approve a final resolution in the approximate amount of $6,300,000 lease transaction for Seal Dynamics LLC. Flexible Business Systems, Inc.: Request for a final resolution for a lease transaction. Mr. Catapano presented Exhibit D. Flexible Business Systems, Inc. is a computer sales, service & configuration and technology consulting company. Mr. Catapano indicated that the Company was approved for an inducement resolution on July 27, 2017. The Company had some issues with the seller and environmental issues that have been resolved. A public hearing was held on August 22, 2017 and no comments were received. The Company is ready for final approval. Upon a motion by Ms. Ward, seconded by Mr. Harvey, it was: RESOLVED, to approve a final resolution in the approximate amount of $5,665,000 lease transaction for Flexible Business Systems, Inc. Minutes The Minutes from the March 29, 2018 IDA Board Meeting were accepted by Board Members. Review 2017 Draft Financial Statements Ms. Ward stated that the Audit & Finance Committee met prior to today s Board Meeting and Mr. Hendricks, as Chairman stated the Committee recommended approval of the 2017 audited financial statements.
SCIDA MINUTES -6- APRIL 26, 2018 Upon a motion by Mr. Zarcone, seconded by Ms. Ward, it was: RESOLVED, to approve the 2017 Suffolk County Industrial Development Agency s audited financial statements. Upon a motion by Ms. Ward, seconded by Mr. Hendricks, it was: RESOLVED, to adjourn the Regular Meeting of the Suffolk County Industrial Development Agency. The Meeting adjourned at 1:05 p.m. The next Meeting of the Suffolk County Industrial Development Agency is tentatively scheduled for May 17, 2018.