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

Transcription

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 17, 2014, 8:30 A.M. Common Council Chambers 316 City Hall 233 East Washington St. Syracuse, NY Board Members Present: M. Catherine Richardson, Esq., William Ryan, Donald Schoenwald, Esq., Steven Thompson. Excused: Pamela Hunter Staff Present: Benjamin Walsh, Susan Katzoff, Esq., Debra Ramsey Burns, Thomas Babilon, Esq., Judith DeLaney, John Vavonese. Others Present: Aggie Lane, Kate Johnson, Peter King, Barry Lentz, John Akins, Lionel Logan, Sha Sha Wheat, Christine Abate, Mike Irwin, Chuck Wallace, Reggie Seigler, Rasta Muhammad, Virginia Dolin, Rev. Nebraski Carter, Cheryl Grave, Charles Rivers, Cyrell Haygood, Joseph Davis, Louise Poindexter, Joanne Stevens, Ann Tiffany, Ed Kilnae, Diane Green, Mark Cass, Lameure Johnson, Phil Prehn, Michael Messina Youchzy, Peter King, Claudio Dotteres, Zinora Monhimeyer, Patrice Chang. Media: John Smith (WAER), Tim Knauss (The Post Standard). I. Public Hearings COR Inner Harbor Company, 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. Mr. Ryan asked if anyone in attendance wished to speak in favor of the Project. Kate Johnson spoke on behalf of COR Development, LLC. Ms. Johnson said the Company was amending the application on the Project due to several changes. She said a banquet facility in the hotel had been eliminated and parking for the proposed hotel would no longer be on site but would now be located across the street. She noted the new site would be a basic surface lot with trees and landscaping, and as the site was not included in the original application, the Company was requesting it be added. Further the Company was requesting the addition of properties on the west side of the Harbor for the construction of luxury apartment units. She noted previously the Company had intended to construct condominium units at this location, which would not have been eligible for Agency benefits, but due to market conditions COR had determined that rental apartments were a better fit for the Project. Ms. Johnson said the Hotel will have 134 rooms, public access to an outside seating area overlooking Onondaga Lake, and an indoor pool and exercise facility. She noted the City s Planning Commission

2 approved the Hotel Plans the evening before. Ms. Richardson asked Ms. Johnson to discuss the local access waiver the Company was requesting. Ms. Johnson responded the Company fully intended to comply with terms of the Agency s Local Access Agreement with one exception regarding vendors for the proposed Aloft Hotel. She said contracts with Starwood Resorts require the Company to purchase materials from specific vendors (i.e. fixtures, blankets, sheets) in order to fulfill branding requirements. Ms. Richardson asked for a description of the Phase I Project. Ms. Johnson said Phase 1 of the Project includes construction of the 134 room hotel, the hotel parking lot with 171 parking spaces and new City streets off of Van Rensselaer St. She noted the Company was not requesting a PILOT for this phase. Ms. Richardson asked about timing of construction. Ms. Johnson said she anticipated construction of the hotel and lot will commence in July and is expected to be completed in 24 months. Ms. Richardson asked who would do the hiring for the hotel. Ms. Johnson responded that COR, acting as the management company, would hire several local firms to manage the hiring process. Ms. Richardson asked what guarantee the Agency had that all phases of the project would be completed. Ms Johnson responded the Company has a disposition agreement executed with the City which outlines the terms by which the Project will be completed. Ms. Katzoff advised Ms. Johnson the Company should close with the Agency prior to the commencement of phase 1 of the Project. At the conclusion of Ms. Johnson s remarks,mr. Ryan asked an additional two more times if anyone else wished to speak in favor of the Project. No one else spoke. Mr. Ryan then asked if anyone in attendance wished to speak in opposition of the Project. Reggie Seigler, who identified himself as a member of the Urban Jobs Task Force, spoke in opposition. Mr. Seigler said the Urban Jobs Task Force is a coaliton of over forty organizations formed to address the lack of job opportunities in the community, noting poverty was a city wide problem. He said while he was not against the Project, he noted COR was asking for a number of benefits from SIDA and in return the Task Force would like to to talk to COR about helping the community. He said the Task Force had reached out unsuccessfully to COR regarding the proposed negotiation of Community Benefits Agreement (CBA). Charles Rivers, who identified himself as working for the Onondaga Earth Corps program, said the program works with youth ages and has planted 467 trees already this year. He said the program provides life skills training to partipants, all of whom become OSHA certified and are equipped with landscaping training. He said the participants are willing to work hard but have had a difficult time finding ongoing work. Mr. Rivers introduced two participants in the Earth Corps Program. The first speaker identified himself and said that while the program was helpful, it did not allow particpant over the age of 25 and therefore there is a lack of opportunties for those that graduate from the program. The second speaker from the Earth Corps program, Joseph Davis, also noted that he had completed the training and was OSHA certified but did not have a permenant job to advance to. Christine Abate, who identified herself as the Deputy Director of the Center for Community Alternatives (CCA), spoke next. Ms. Abate said her Agency has provided a range of programs from youth development to adult employment services for over thirty years to city residents. Supported by the 2

3 Department of Labor, the Agency s major employment program serves unemployed, non custodial parents providing job readiness training, transisitional employment while seeking unsubsidized employment, job placement and retention support. She noted in a two year intake period over 1,000 unemployed individuals qualified for the program. She also said that while the unemployment rate in the city 7.9%, the rate is up to three times that amount in certain center city neighborhoods. Ms. Abate said as a long time resident she is pleased to see so many proposed development projects and noted the COR Inner Harbor project is an important one. She said City residents need jobs and would like to play a part in the City s rebirth. She said a CBA is an important way to ensure that the community goes beyond minimum standards for hiring and makes a real impact on the unemployed in Syracuse. She also noted that CCA is encouraging the adoption of the Ban the Box legislation. Finally, Ms. Abate asked the Board members to encourage COR to meet with the Urban Jobs Task Force to review a CBA so that taxpayer dollars can be reinvested in employment for city residents. Mike Irwin, who noted he was from Greater Syracuse Works, spoke next. Established in 2000, Mr. Irwin said his organization assists low income people in finding and keeping jobs. He noted the demand for a job was not unreasonable and urged a fair CBA be put in place for the Project. Reverend Nebraski Carter, Paster of Living Water Church of God and Christ, spoke next. Pastor Carter, noting he was a man of faith, said he had lived in Syracuse for more than 50 years. He said he he was speaking on behalf of people living at the bottom of the economy who needed jobs. He stated that he believes the benefits being afforded the COR Project were coming from the taxpayers in Syracuse and therefore the jobs resulting from the Project should go to the same people. He also offered his observation that few minorites were working on the current construction jobs in the city and that he was simply asking for fairness in the distribution of jobs. Aggie Lane, also of the Urban Jobs Task Force, spoke next. Ms. Lane said she believed SIDA, the City, and City residents need reliable employment data on a quarterly basis regarding workers residency, ethnicity, gender, and hours worked and that the data should be gathered by an independent monitor. She said that SIDA needed to modify its policy to better account for this information as the Agency is using taxpayer money and the public has the right to know. Barry Lentz spoke next. Mr. Lentz noted everyone wants a vibrant Syracuse. He said a CBA with this Project would help address the issue of a lack of jobs and the poverty that accompanies joblessness in the community. He said the Task Force would like to engage in a dialogue with COR to ensure the jobs associated with the Project are local. Lionel Logan spoke next. Mr. Logan stressed that taxpayer dollars were going into the Project and even residents not owning homes still pay taxes through sales tax. He said he felt better data was needed regarding job creation. The next speaker identified himself as Jerry (no last name given). He said he had relocated to Syracuse looking to straighten out his life and find job opportunities. He said he liked Syracuse and agreed with Pastor Carter s comments and supported the Task Force s job advocacy. 3

4 Joanne Stevens spoke next. Ms. Stevens noted she had lived in the City her whole life and said while people used to work, now they don t have jobs. She said in the future she would not be able to support anybody for elected office who did not talk about jobs first. She said she wanted the youth of the community to be able have jobs and purchase homes and expressed concern regarding her view of the support for the resurgence of downtown at the expense of the neighborhoods and school system. Ms. Stevens expressed her opinion that the Agency is allowing COR to do anything it wants and that the Board does not fully understand the Project. Phil Prehn of Syracuse United Neighbors (SUN) spoke next. Mr. Prehn noted that a large portion of CENTRO s funding come through the mortgage recording tax. He suggested that through SIDA s actions the Agency was supporting the development of a new neighborhood while undercutting CENTRO s ability to serve it, and other neighborhoods. Louise Poindexter spoke next. Ms. Poindexter said she agreed with comments made by Joanne Stevens. Ms. Poindexter expressed her opinion that SIDA is a whore, but qualified her statement by noting that that it was a good whore. She questioned who would be able to afford to live in the luxury apartments proposed for the Project, and while she understands the goal of making the Project attractive, she does not want to standby and see her children go hungry while the Agency in her view gives out tax breaks to developers who will hire whomever they choose. She told the Board it was there responsibility to work for everyone. The next speaker was Peter King. Mr. King said since 1980 over 50% of the people working in the City commute from the suburbs, and those with income of less than a $1,000 a month are traveling out of the City to find work. He said drastic action was needed to reverse this trend. Virginia Dolin spoke next. Ms. Dolin suggested the Project would require highly skilled workders that were not readily available in the city. She therefore surmised that there would be no jobs for local residents. Next to speak was Lenra Myer. Ms. Myer said she felt the City needed to invest in more skating rinks as wintertime activities were limited. Patrice Chang spoke next. Ms. Chang said the goal of the Task Force was to create a pipeline for employment opportunites for city residents. She rhetorically asked what will happen to the City s students when they graduate and there are no jobs? What happens to the City, where the unemployment rate is already high, if its residents continue to have no work? She said we need to ensure the city s kids have job opportunites for the future and noted that while everyone loves the fact there is ongoing development, it s time to do things differently to benefit the community. She said COR easily dismissed talking to the Urban Jobs Task Force about a CBA saying it was difficult enough to deal with the City s RFP process. She said the Urban Jobs Task Force is ready and willling to partner with COR and hopes they will respect and be open to the needs of the community. The final speaker in opposition to the Project was John Akins. Mr. Akins first asked if the Public Hearing was being recorded. It was noted Ms. Ramsey Burns was taking the minutes of the meeting. He then said he works for an organization called Family First and said the lack of jobs in the community 4

5 impacted families, noting many young men end up in jail bacuae they have no way to support their families. He encouraged the Board to do everything in its power to bring jobs to the community. Mr. Ryan asked one last time if anyone else in attendance wished to speak in opposition of the Project. No one spoke. Mr. Ryan closed the Public Hearing at 9:55a.m. II. Call Meeting to Order Mr. Ryan called the meeting to order at 9:56a.m. III. Roll Call Mr. Ryan acknowledged all Board members were present with the exception of Ms. Hunter who was excused. IV. Proof of Notice Mr. Ryan noted notice of the meeting had been timely and properly provided. V. Minutes Mr. Ryan asked for a motion to approve the minutes from the May 20, 2014 meeting. Ms. Richardson made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED THE MINUTES FROM THE MAY 20, VI. New Business Mr. Walsh distributed a list of Agency owned properties to the Board of Directors. Mr. Ryan said he would like to reverse the agenda order table the COR Development item until the end. 300 Block, LLC Ms. Katzoff told the Board members they were being asked to approve a resolution authorizing an extension of the Sale Tax Appointment relative to the Project through March 31, Noting a substantial portion of the Project has been completed Ms. Katzoff said the Developer was requesting an extension to complete construction. She said as outlined in the resolution, the sales tax exemption benefit will not exceed $1,760,928 and she confirmed the Company has not exceeded that amount. There being no discussion, Mr. Ryan asked for a motion approving the resolution. Ms. Richardson made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY 5

6 APPROVED A RESOLUTION APPROVING AN EXTENSION FOR OF THE SALES TAX APPOINTMENT AGENT STATUS OF 300 BLOCK LLC UNTIL MARCH 31, The Inns at Armory Square, LLC Ms. Katzoff advised the Board members they were being asked to approve a resolution authorizing the Agency to participate in a mortgage modification agreement relative to the Project. She noted the Project is complete and the Company is making the request because they are in the process of modifying the schedule and maturity date on their mortgage financing for the Project. There being no discussion Mr. Ryan asked for a motion to approve the resolution. Ms. Richardson made the motion. Mr. Schoenwald seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION APPROVING THE AGENCY S PARTICIPATION IN THE MODIFICATION OF A LOAN AT THE REQUEST OF THE COMPANY IN CONNECTION WITH THE PROJECT FACILITY. COR Inner Harbor Company, LLC Ms. Katzoff advised the Board they were being asked to approve resolution undertaking the first phase of the Project. Noting a Public Hearing had just been completed on the Project she said several changes to the original application included acquisition of land for hotel parking across the street from the proposed hotel project, the elimination of onsite hotel parking, the deletion of a banquet facility from the hotel project, infrastructure for new City streets off of Van Rensselaer St., and the construction of three luxury apartment units consisting of 130 apartments. She said the amended Phase 1 application will include all of the above with the exception of the apartment units which will occur in a later phase. Ms. Katzoff then asked the Board to consider an Inducement resolution for phase 1 of Project, noting the amount of state and local sales tax exemption benefits will not exceed $1,183, Ms. Katzoff also told the Board the draft resolution did not contain language on the waiver requested by the Company regarding the Agency s Local Access Agreement relative to purchases for the proposed Aloft Hotel, but said if the Board approved the waiver she would insert the language in the resolution prior to it being executed. Mr. Ryan asked for a motion authorizing to approve the Inducement and for the waiver. Mr. Schoenwald made the motion. Ms. Richardson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION UNDERTAKING THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF PHASE I OF THE GLOBAL PROJECT, APPOINTING THE COMPANY AS AGENT OF THE AGENCY FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF PHASE I AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN AGREEMENT BETWEEN THE AGENCY AND THE COMPANY UNDERTAKING THE ACQUISITON AUTHORIZING THE INDUCEMENT AND THE WAIVER. 6

7 Regarding the Agency s Local Access Agreement, Ms. Richardson asked Ms. Katzoff if companies were required to agree to the terms. Ms. Katzoff confirmed companies agree to the terms as part of the Agency Agreement all are required to execute. Ms. Katzoff then asked the Board to approve a SEQRA resolution relative to phase 1 of the Project. She advised this was necessary due to the proposed changes in the hotel parking, which require review. There being no discussion Mr. Ryan asked for a motion. Ms. Richardson made the motion. Mr. Thompson seconded the motion. ALL BOARD MEMBERS PRESENT UNANIMOUSLY APPROVED A RESOLUTION REGARDING THE UNDERTAKING OF PHASE I OF THE GLOBAL PROJECT AND COMPLIANCE WITH THE STATE ENVIRONMENTAL QUALITY REVIEW ACT AUTHORIZING CHANGES TO THE SEQRA FOR PHASE 1. Ms. Katzoff then offered a Final Resolution for the Board s approval noting it was for phase I of the Project only. There being no discussion Mr. Ryan asked for a motion. Mr. Schoenwald made the motion. Ms. Richardson 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 PHASE I OF A CERTAIN PROJECT UNDERTAKEN AT THE REQUEST OF THE COMPANY. Mr. Ryan introduced and welcomed John Vavonese who has taken the position of CFO for the Agency, noting Mr. Vavonese previously worked in the City of Syracuse s Budget Office. VIII. Adjournment There being no further business Mr. Ryan asked for a motion to adjourn. Mr. Schoenwald made the motion. Mr. Thompson seconded the motion. The meeting was adjourned at 10:08 a.m. ALL BOARD MEMBERS PRESENT UNANIMOUSLY ADJOURNED THE MEETING AT 10:08 A.M. 7