MINUTES IDA REGULAR MEETING FEBRUARY 7, 2013
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1 ACCEPTED 2/28/13 MINUTES IDA REGULAR MEETING FEBRUARY 7, 2013 PRESENT Paul J. Tonna, Chairman Joanne Minieri, Vice Chair Peter Zarcone, Treasurer Steve Rossetti, Secretary Kevin Harvey, Member Grant Hendricks, Member David Rosenberg, Member EXCUSED ABSENCE None ALSO PRESENT Anthony N. Manetta, CEO & Executive Director Anthony J. Catapano, Deputy Executive Director Daryl Leonette, Secretary Regina Halliday, Bookkeeper Amy Illardo, Marketing Associate William Wexler, Esq., Agency Counsel William Weir, Esq., Bond/Transaction Counsel, Nixon Peabody, LLP William Dudine, Esq., Bond/Transaction Counsel, Winston & Strawn LLP Andrew Komaromi, Esq., Bond/Transaction Counsel, Harris Beach PLLC M. Cornelia Cahill, Partner, Bond/Transaction, Hiscock & Barclay LLP Wayne Horsley, Suffolk County Legislator Lisa Broughton, S.C. Department of Economic Development & Planning Catherine Green, S.C. Department of Economic Development & Planning Brendan Chamberlain, Aide to the Presiding Officer William J. Lindsay, S.C. Legislator James Madore, Sr. Business Writer/Economy Newsday Rick Brand, Newsday John Callegari, Reporter, Long Island Business News The Regular Meeting of the Suffolk County Industrial Development Agency held in the Conference Room of the Agency, 100 Veterans Memorial Highway, H. Lee Dennison Building, 3 rd. Floor, Hauppauge, NY was called to order at 12:30 p.m.
2 SCIDA MINUTES -2- FEBRUARY 7, 2013 Mr. Rosenberg and fellow Board Members welcomed Mr. Paul J. Tonna. Mr. Hendricks indicated he has known Mr. Tonna for many years it has been a pleasure and he looks forward to working with him. Mr. Tonna stated he has known Mr. Rosenberg for over 15 years and he is happy to be serving on the Board with him. Mr. Tonna indicated he is very pleased to be working with all of the Board Members. Mr. Tonna also thanked Mr. Horsley for all his help. Election of Officers The proposed slate of Officers was approved by Board Members. Upon a motion by Mr. Hendricks, seconded by Mr. Zarcone, it was: RESOLVED, that the following Members by Officers of the Agency: Committees Paul J. Tonna Chairman Joanne Minieri Vice Chair Peter Zarcone Treasurer Steven Rossetti Secretary The proposed slate of officers for Committees was distributed to Board Members. Upon a motion by Mr. Rossetti, seconded by Mr. Rosenberg, it was: RESOLVED, that the following Board Members be assigned to the Audit, Finance and Governance Committees: GOVERNANCE COMMITTEE: AUDIT COMMITTEE: FINANCE COMMITTEE: Steven Rossetti, Chair Kevin Harvey David Rosenberg Paul J. Tonna, Ex Officio David Rosenberg, Chair Joanne Minieri Grant Hendricks Paul J. Tonna, Ex Officio Peter Zarcone, Chair Joanne Minieri Grant Hendricks Paul J. Tonna, Ex Officio
3 SCIDA MINUTES -3- FEBRUARY 7, 2013 Schedule of Meetings The schedule of Agency/Corporation Regular Meetings were approved by Board Members. Signatories on Agency Accounts Mr. Manetta stated that six signatories are authorized on Agency Accounts with two out of the six signatories being required on the accounts. The six signatories are the four officers and two staff members. The preference is to have one officer and one staff member as the two signatories. The following should be authorized signatories for 2013: Paul J. Tonna Joanne Minieri Peter Zarcone Steven Rossetti Anthony N. Manetta Anthony J. Catapano Upon a motion by Mr. Tonna, seconded by Mr. Rosenberg, it was: RESOLVED, the following are authorized signatories on Agency accounts with two of six signatories being required on the accounts. Review and Readoption of Agency Policies Mr. Rosenberg indicated that the Agency must adopt the Investment, Property Disposition and Procurement Policies annually. Mr. Rosenberg stated he assumes there are no changes to these policies. Mr. Tonna suggested that Peter Zarcone, Treasurer and Anthony Catapano, Deputy Executive Director/CFO meet on a more regular basis to keep each other up to date. Upon a motion by Mr. Rosenberg, seconded by Mr. Hendricks, it was: RESOLVED, to readopt the Investment Policy, Property Disposition/Procurement Policies for the Suffolk County Industrial Development Agency. Mr. Horsley asked how the Board is feeling regarding Governor Cuomo s IDA Reform. Mr. Manetta stated that he had a meeting with Kevin Law of the LIA and the IDA Coalition, Mr. Rosenberg also attended. Mr. Tonna asked what was the sense of the meeting, Mr. Manetta said it was constructive and that signature projects such as Wyandanch Rising and Ronkonkoma Hub could be affected. Mr. Rosenberg indicated there was a group consensus to educate the Governor s staff. Mr. Tonna asked do you feel the Governor is listening. Mr.
4 SCIDA MINUTES -4- FEBRUARY 7, 2013 Manetta stated that Kevin Law will be speaking with the Governor s staff and that we feel working in a conciliatory manner is the best approach. CooCoo SMS, Inc.: Request for an inducement resolution for a lease transaction. Mr. Manetta presented Exhibit A. Mr. Manetta stated that CooCoo is a Boost Program participant and was formed in Mr. Manetta indicated that CooCoo originally provided to the national transit industry text message based, real time scheduling information and their customers include the MTA and LIRR. In 2012 the company expanded its product line to become a leader in Mobile Ticketing. Mr. Manetta explained mobile ticketing gives a rider the ability to buy a ticket on their smartphone or tablet and have the conductor simply scan their virtual ticket. CooCoo is backed by both private investors and venture capital including Canrock Ventures and Soundboard Angel Fund. Mr. Manetta indicated that CooCoo like Work Market and VLI North America are located in downtown Huntington Village and the traction that the Village is getting as a tech cluster is growing very quickly. Mr. Manetta stated CooCoo has 900 square feet of office space and will be expanding into an additional 600 square feet. The Company s renovation and equipment costs total $47,000 they will also be purchasing $150,000 worth of servers which is already tax-exempt. Mr. Horsley stated venture capitalist we don t see that here much. Mr. Manetta responded we are starting to see a more local venture capital investment especially with the Boost companies. Mr. Manetta indicated the CooCoo currently has 8 full-time employees and plan on hiring 10 more employees. Mr. Manetta indicated the total projected savings for CooCoo SMS, Inc. is estimated at $67, Mr. Manetta introduced Christoper Boylan of CooCoo SMS, Inc. to the Board. Mr. Boylan indicated that CooCoo started three years ago and we are a market leader in mobile ticketing. Mr. Boylan indicated we currently have 8 full time employees and we plan to expand in Huntington where a good part of our employees reside. Ms. Minieri asked what is your revenue and Mr. Boyland responded we are in the low 6 digits and we anticipate a lot of growth. Mr. Tonna stated we would love to affirm you in the future and I would hope you would look to Suffolk County. Mr. Tonna also indicated that we keep an open dialogue and we need feedback on how and what we want to fund in the future. Mr. Boylan said we plan to stay and expand in Suffolk County. Mr. Zarcone inquired the average salary is listed at $62,000 is that an accurate number. Mr. Boylan said yes, some salaries are a little higher. Mr. Zarcone asked what is the low salary and Mr. Boylan said we have a part timer that is making $30,000. Mr. Boylan stated our techs know the business well. Upon a motion by Mr. Rosenberg, seconded by Mr. Rossetti, it was: RESOLVED, to approve an inducement resolution in the approximate amount of $215,000 lease transaction for CooCoo SMS, Inc. facility.
5 SCIDA MINUTES -5- FEBRUARY 7, 2013 KLD Labs, Inc.: Request for an inducement resolution for a lease transaction. Mr. Manetta presented Exhibit B. Mr. Manetta stated he paid a visit to KLD Labs in Huntington and they have outgrown their building and they will be purchasing a 28,000 sq. ft. building in Hauppauge on Cabot Court. KLD is a leading supplier of real time electro-optical solutions for the transportation and industrial sectors. Mr. Manetta indicated KLD currently has 41 full-time employees and plan on hiring 4 more employees with an average salary of $78,000. This accounts for over $300,000 in new high paying STEM related jobs. Mr. Manetta stated they have equipment that is installed on a rail car, or set up next to the track that monitors for wear and tear on the track itself. Mr. Manetta indicated KLD Labs has over 300 systems deployed in 29 countries and their largest customers are in South Carolina and Minnesota, two geographic areas the company has considered moving to. Mr. Manetta stated with the support of the Suffolk County IDA and the location of the proper building for their needs, they are staying in Suffolk County. Mr. Manetta indicated the total projected savings to KLD is $193,032 over a 12 year period. Mr. Tonna indicated he would like to recuse himself from discussion on this project. Mr. Manetta introduced Steven A. Magnus, President and Daniel L. Magnus, Vice President of KLD Labs to the Board. Steven Magnus indicated we are a Long Island based company created in 1989 and were founded by my brother and myself. Steven Magnus indicated that we are a high tech manufacturer of electro-optical measurement systems for assessing track components and rolling stock for the railroad industry. Steven Magnus stated we have a diverse staff that designs, develops and manufactures all our products on Long Island. Ms. Minieri inquired do you own the facility you are moving out of. Steven Magnus responded no, we need to relocate our facility it is completely full and we are currently renting 3 storage facilities. Mr. Wexler asked does KLD export to Asian and European companies Steven Magnus responded we do export abroad we are going to Japan and we hope to get more business there. Ms. Minieri asked you collect data and information, Daniel Magnus indicated typically it is a manual process there is no data history. Mr. Horsley inquired are cement ties better than wood and Daniel Magnus stated concrete is better for this area. Mr. Zarcone asked the company are there products that you need that are not on Long Island. Daniel Magnus replied most of our purchases are from Long Island we do purchase some products out of state, such as steel parts. Upon a motion by Mr. Hendricks, seconded by Mr. Zarcone, it was: RESOLVED, to approve an inducement resolution in the approximate amount of $3,000,000 lease transaction for KLD Labs, Inc. facility. Unanimously carried 6/0 with Mr. Tonna recused.
6 SCIDA MINUTES -6- FEBRUAR 7, 2013 Minutes The Minutes of the December 20, 2012 IDA Meeting were accepted. Mr. Tonna did not participate in the acceptance of the Minutes since he was not a Member of the Board in December Select Products Holdings LLC: Request for a final approval for a lease transaction. Mr. Manetta presented Exhibit C. Mr. Manetta stated Select Products Holdings, LLC is requesting a final approval they were induced at the December 20, 2012 IDA Meeting. Mr. Manetta indicated a public hearing was held on February 4, 2013 and no one attended. Mr. Manetta stated Select Products Holdings LLC is a start-up manufacturer of paper products and they are relocating to Huntington. After furher discussion and; Upon a motion by Mr. Rossetti, seconded by Mr. Rosenberg, it was: RESOLVED, to approve a final resolution in the approximate amount of $1,831,370 lease transaction for Select Products Holdings LLC facility. Unanimously carried 6/0/1 with Mr. Tonna abstaining. SeaTow Services International, Inc.: conventional loan. Request for Agency consent to a refinancing of a Mr. Manetta presented Exhibit D. Mr. Manetta stated SeaTow Services International, Inc. are consolidating and relocating from one facility to another. Mr. Rosenberg stated SeaTow is a marine assistance company, AAA of boating. Mr. Rosenberg indicated they are consolidating to get a better interest rate. Upon a motion by Ms. Minieri, seconded by Mr. Rosenberg, it was: RESOLVED, to approve the refinancing of a conventional loan for Sea Tow Services International, Inc. facility. Unanimously carried 6/0/1 with Mr. Tonna abstaining. National Grid Hurricane Relief Program: Discussion. Mr. Manetta presented Exhibit E. Mr. Manetta indicated that National Grid is providing grants to companies that were impacted by Hurricane Sandy. A provision in their application is for an IDA to endorse the project. Mr. Manetta said Agency Counsel reviewed it, and read what grid determines as endorsed. Mr. Manetta asked the Board to allow himself and th4e Agency to endorse the project. Mr. Manetta indicated that he is bringing this up to the Board
7 SCIDA MINUTES -7- FEBRUARY 7, 2013 for their information only. Mr. Rossetti asked is this putting us in harm s way because of what is going on with Governor Cuomo. Mr. Manetta said he does not believe so. Upon a motion by Mr. Tonna, seconded by Mr. Hendricks, it was: RESOLVED, to permit the Executive Director, Anthony Manetta, to endorse projects in the National Grid Program. Marketing Update Mr. Manetta indicated he would like to request approval for two expenditures for the Agency. Mr. Manetta stated he would like the Agency to purchase a video camera, lighting and tripods to be used for digital media purposes. Mr. Manetta stated we did thorough research on where to purchase the equipment. The County contract has one vendor from Manhattan who has the equipment. We compared to a Suffolk based company, not on contract, and for $200 more we can buy the same equipment locally. Mr. Rosenberg asked is this a commodity purchase. Mr. Wexler read aloud from the Agency s Procedures and Guidelines for Procurement Policies and stated he did not think this would be a problem to make the purchase and conform to the policy. Upon a motion by Mr. Tonna, seconded by Mr. Hendricks, it was: RESOLVED, to approve $5, to purchase digital camera equipment from a local vendor. Mr. Manetta requested an allocation of $3,500 for an Agency event geared at promoting startups and the Agency s Boost Program. The event will be held in the spring and will be announced shortly. Upon a motion by Mr. Tonna, seconded by Mr. Rossetti, it was: RESOLVED, to approve an allocation of $3,500 for funds to host a start-up resources event.
8 SCIDA MINUTES -8- FEBRUARY 7, 2013 Upon a motion by Mr. Tonna, seconded by Mr. Hendricks, it was: RESOLVED, to adjourn the Regular Meeting of the Suffolk County Industrial Development Agency. The Meeting adjourned at 1:50 p.m. The next Regular Meeting of the Suffolk County Industrial Development Agency is tentatively scheduled for February 28, 2013.
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