MINUTES IDA REGULAR MEETING AUGUST 25, 2016

Size: px

Start display at page:

Download "MINUTES IDA REGULAR MEETING AUGUST 25, 2016"

Miles Gibbs
5 years ago
Views:

MINUTES IDA REGULAR MEETING AUGUST 25, 2016 ACCEPTED BY THE BOARD 9/29/16 PRESENT Joanne Minieri, Chair Grant Hendricks, Vice Chairman Peter Zarcone, Treasurer Gregory Casamento, Member Kevin Harvey,

1 MINUTES IDA REGULAR MEETING AUGUST 25, 2016 ACCEPTED BY THE BOARD 9/29/16 PRESENT Joanne Minieri, Chair Grant Hendricks, Vice Chairman Peter Zarcone, Treasurer Gregory Casamento, Member Kevin Harvey, Member EXCUSED ABSENCE Anthony Giordano, Secretary Sondra Cochran, Member 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 Larry Brett, Intern, Suffolk County IDA William Wexler, Agency Counsel William Dudine, Esq., Winston & Strawn LLP M. Cornelia Cahill, Partner, Barclay Damon LLP William Weir, Esq., Nixon Peabody LLP Andrew Komaromi, Esq., Harris Beach LLP David Chauvin, Zimmerman/Edelson, Inc. James Madore, Reporter, Newsday Adina Genn, Long Island Business News Theresa Ward, Suffolk County Department of Economic Development & Planning Ray Donnelly, Aide to Presiding Officer DuWayne Gregory Greg D. Moran, Aide to Legislator Robert Trotta Kimberly Scalice, Aide to Legislator Thomas Cilmi Regina Zara, Suffolk County Department of Economic Development & Planning

2 SCIDA MINUTES -2- AUGUST 25, 2016 The Regular Meeting of the Suffolk County Industrial Development Agency held in Media Room #182 in the lower level of the H. Lee Dennison Building, 100 Veterans Memorial Highway, Hauppauge, NY was called to order at 12:30 p.m. PUBLIC COMMENT Mr. Catapano opened the public comment portion of the Suffolk County Industrial Development Agency. No comments were received for the Public Comment portion of the Suffolk County Industrial Development Agency. 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. EXECUTIVE DIRECTORS REPORT Mr. Catapano gave the Board a brief overview of the three companies presenting to the Board today. Mr. Catapano thanked Larry Brett, Intern for the IDA for his assistance this summer and wished him well heading back to college at Wake Forrest. Ms. Morris asked Board Members if the September meeting date can be changed from September 22, 2016 to September 29, 2016 and all Board Members were in agreeance except Mr. Casamento indicated he would not be available. Summit Apparel, Inc. d/b/a Royal Apparel: Request for an inducement resolution for a lease transaction. Mr. Catapano presented Exhibit A. Mr. Catapano stated Summit Apparel, Inc. is d/b/a as Royal Apparel is an industry leader in premium wholesale clothing and custom apparel. Summit Apparel, Inc. is also an eco-conscious company with an extensive line of organic clothing, made from 100% all-natural, chemical free fibers. Mr. Catapano indicated that Royal Apparel sells apparel to its customers who then put the design and label on the garments. Mr. Catapano stated Summit Apparel currently leases a 24,000 square foot facility at 65 Commerce Drive, Hauppauge and would like to purchase an approximately 24,000 sq. ft. building and construct a 12,000 square foot addition for a total of 36,244 square feet at 91 Cabot Court, Hauppauge. Mr. Catapano indicated that the Company also has 5 employees located in Allentown, PA. Mr. Catapano stated the company plans to create 10 jobs for a total of 44 in Suffolk County.

3 SCIDA MINUTES -3- AUGUST 25, 2016 Mr. Catapano introduced Morad Mayeri, President and Christopher Murray, Counsel to Summit Apparel, Inc. to Board Members. Mr. Mayeri stated Summit was founded in 1992 and manufacture and distribute knit apparel including t-shirts, tank tops, sweatshirts, etc. to retailers. Mr. Mayeri stated he is proud to live and work on Long Island. Mr. Mayeri stated Summit Apparel is looking to purchase (91 Cabot Court, Hauppauge) to add more warehousing and office space for the Companies growth as well as hiring additional employees. Mr. Mayeri stated there is a great potential for growth of the business. Mr. Mayeri stated the Company is in need of more sewing machines so they can hire more sewers. Ms. Minieri stated in the application it says that you are funding this and Mr. Mayeri said that is correct. Ms. Minieri asked if the Company is offering retirement benefits to their employees and Mr. Mayeri yes we do and we would like to improve those benefits. Mr. Zarcone asked if the Company uses local vendors and Mr. Mayeri stated yes we do. Mr. Zarcone asked if the raw materials needed for the business are purchased locally and Mr. Mayeri stated no they are not available locally. Mr. Mayeri stated that their architect is from Long Island and we work locally with the Community Colleges to fill open positions. Mr. Mayeri indicated that the Company could use some assistance with training of their staff as manufacturing technical skills do not exist in the State. Ms. Morris indicated Agency staff has reached out to the Department of Labor, Suffolk Community College and Workforce Development Institute to try and help establish a training program to see if you can help. Mr. Harvey stated Summit is currently at 65 Commerce Drive and are vacating and relocating to Cabot Court. Mr. Mayeri replied yes, it is a larger facility. Mr. Casamento stated from your brochure it looks like these photos were taken at Hecksher Park in Huntington and Mr. Mayeri stated that is correct. Mr. Hendricks asked whether the biggest obstacle is lack of qualified trainees and Mr. Mayeri replied yes. Upon a motion by Mr. Casamento, seconded by Mr. Zarcone, it was: RESOLVED, to approve an inducement resolution for a lease transaction in the approximate amount of $4,580,000 for Summit Apparel,Inc. d/b/a Royal Apparel facility. LBi Software, Inc.: Request for an inducement resolution for a lease transaction. Mr. Catapano presented Exhibit B. Mr. Catapano stated LBi Software, Inc. is a software development firm and they are currently located in Woodbury, NY. Mr. Catapano stated the Company leases 10,800 of office space in Woodbury which they have outgrown and are interested in purchasing and equipping an existing 25,235 square foot building on Walt Whitman Road in Melville. The building is currently a multi-tenant office building with some pre-existing tenants. The Company will lease out approximately 9,032 square feet to professional office tenants and over time grow into the entire building. Mr. Catapano stated the abatement will only apply to the space that LBi will occupy and as the Company grows into more space it will be included. The tenant space will not be abated.

4 SCIDA MINUTES -4- AUGUST 25, 2016 Mr. Catapano introduced Richard Teed, President and Gary Reuter of LBi Software, Inc. to Board Members. Mr. Teed stated he looks forward to remaining on Long Island along with his partner Gary Reuter who are both Hofstra University graduates. Mr. Teed stated within the past years our custom designed products have been geared for the sports industry. The sports hardware focuses on player evaluations. Mr. Teed stated some of our clients include, Major League Baseball (MLB), National Basketball Association (NBA) and several other major league baseball franchises. Since the Company is formally marketing sports we have added 15 employees and intend to add 10 more. Currently the Company employs 49 employees and nearly all are software programmers with an average salary of $80,000. Mr. Teed stated we have built relationships with universities including SUNY Stony Brook and employ 10 programmers, graduates of SUNY Stony Brook. Mr. Harvey asked the current building is 11,000 sq. ft. and the building you are purchasing you will be occupying 16,000 sq. ft. and eventually expand to 25,000 sq. ft. Mr. Teed responded yes. Ms. Minieri asked has your financing been approved and whether you would be able to move forward without it and Mr. Teed said no. Upon a motion by Mr. Hendricks, seconded by Mr. Casamento, it was: RESOLVED, to approve an inducement resolution for a lease transaction in the approximate amount of $6,303,736 for LBi Software, Inc. facility. Stewart Avenue Ventures LLC: transaction. Request for an inducement resolution for a lease Mr. Catapano presented Exhibit C. Mr. Catapano stated Stewart Avenue Ventures LLC is a real estate holding company for residential/commercial use. Mr. Catapano indicated this is a proposed mixed-use development with 12 residential rental apartments and commercial/retail space on the ground floor located at 30 Stewart Avenue, Huntington. Mr. Catapano stated the project entails the demolition of a 3,649 square foot building and construction of a new 19,177 building. Mr. Catapano indicated that the Town of Huntington requested that they purchase a Town owned parcel for parking, build a retaining wall and perform environmental remediation. Mr. Catapano indicated these are the circumstances why Stewart Avenue applied to the IDA due to the additional costs. Mr. Catapano stated that the Agency utilized Kevin Gremse, Director, National Development Council and Mr. Gremse reviewed the project and felt there was a need for IDA assistance. Mr. Catapano introduced Mark W. Hamer, Principle and Gregory DeRosa, Managing Partner, Stewart Avenue Ventures LLC to Board Members. Mr. Hamer stated he has partnered with Mr. DeRosa as they see a need to offer multi-family desirable housing to year olds in Huntington. Mr. Hamer indicated the building is three-stories with 12 rental units and ground-floor commercial space and we are going to try and keep it in character with the Village. Mr.

5 SCIDA MINUTES -5- AUGUST 25, 2016 Hamer indicated that parking became an issue with Huntington Village so he agreed to purchase an adjacent parcel owned by the Town of Huntington for $208,750. Mr. Hamer indicated that this parcel along with engineering and development costs of $200,000 added an additional $400,000 to the project. Mr. Hamer stated the environmental firm GEI Consulting discovered a UST leak and determined that they will need to remove a underground storage tank and remove related contaminated soil. This also added additional costs to the project of $85,000. Mr. Harvey asked if the LLC has entered into other ventures on Long Island and Mr. Hamer said Mr. DeRosa is doing work north of New York Avenue that s similar. Mr. Hamer stated that he is owner of Timberidge homes and he has done many multi-family projects all over the east coast. Most of the investment has been off Long Island but he would like to reverse the trend, he believes the culture/mind set is beginning to change on Long Island. Mr. Harvey stated there is a lot of competition to attract millennials do you feel your project can compete and Mr. Hamer said he feels he can compete the demand is high. Ms. Minieri asked how the approval process has progressed and Mr. Hamer stated the Zoning Board of Appeals (ZBA) approved it and we are submitting to the planning department now for final site plan approval. Mr. Hamer stated we are expected to start building by the second quarter of Ms. Minieri asked if there are sidewalks and Mr. Hamer said yes and the architect design will be consistent with what you see in Huntington. Ms. Minieri asked how did you determine to make these units 2 bedrooms and Mr. Hamer stated the millennials have roommates and this is what they are looking for. Ms. Minieri asked why 1 or 2 apartments could not be affordable housing and Mr. Hamer stated he would have to have the commitment of the financial institution and he feels it wouldn t be feasible. Upon a motion by Mr. Casamento, seconded by Mr. Hendricks, it was: RESOLVED, to approve an inducement resolution for a lease transaction in the approximate amount of $5,776,529 for Stewart Avenue Ventures LLC facility. A & Z Pharmaceutical: Request to amend documents. Mr. Catapano presented Exhibit D. Mr. Catapano stated A & Z Pharmaceutical manufactures and distributes over the counter (OTC) private label pharmaceuticals and is requesting an amendment to documents. Mr. Catapano stated the Agency did a lease transaction with A & Z Pharmaceutical in 2014 for their building located at 350 Wireless Blvd., Hauppauge. Mr. Catapano indicated A & Z Pharmaceutical 2014 project is requesting an amendment of sublessee to sublease approximately 86,000 square feet of the project to its subsidiary, Aiping Pharmaceutical, Inc. The Company is also requesting an amendment of their 2016 application to increase the original budget amount from $3,200,000 to $6,200,000 for increased construction costs.

6 SCIDA MINUTES -6- AUGUST 25, 2016 Mr. Catapano introduced Robert Tuffariello, Comptroller, A & Z Pharmaceutical; Toni J. Hoverkamp and Peter Curry, Counsels to A & Z Pharmaceutical to Board Members. Ms. Hoverkamp stated the Company is requesting two changes for their 350 Wireless Blvd. location. A & Z Pharmaceutical submitted an application in February 2016 requesting additional assistance from the Agency for the construction and equipping of an approximately 26,700 square foot addition to the original project. Since that application was submitted their budget increased to $6,200,000. The request is to amend the application to increase the orginal budget amount $3,200,000 to $6,200,000. In addition, the sublessee would like to sublease approximately 86,000 square feet of the project to its subsidiary, Aiping Pharmaceutical, Inc.. Aiping is currently owned by the sublessee but will be owned a joint venture which will be 60% owned by the sublessee and 40% owned by another company. Ms. Minieri asked regarding the increase in budget how are you funding the additional cost and Mr. Tuffariello responded through Citibank. Mr. Tuffariello indicated the increase in project costs is because the new addition will be used to manufacture additional products instead of for warehouse space which costs less to build. Mr. Tuffariello said A & Z Pharmaceutical s company President Emma Li has obtained additional business for its products. Ms. Minieri asked if additional jobs will be created since the new space will be used for manufacturing and Mr. Tuffariello said approximately jobs. Upon a motion by Ms. Minieri, seconded by Mr. Zarcone, it was: RESOLVED, to approve amendment to the 2016 application to increase amount to $6,200,000 and approval of sublease to Aiping Pharmaceutical, Inc. for 350 Wireless Blvd facility for A & Z Pharmaceutical, Inc. facility. Ropack, Inc.: Request for consent to amend project documents. Mr. Catapano presented Exhibit E. Mr. Catapano indicated that Ropack is a Canadian pharmaceutical company that was approved by the Agency in Ropack intends to sell its 155 Commerce Drive, Hauppauge building and would like to amend its transaction with the IDA. Mr. Catapano stated the Commerce Drive facility is currently vacant and was to be used for warehousing of products after being manufactured at Mall Drive. Mr. Catapano indicated at the last IDA meeting the IDA Board consented to the sale of the building by Ropack to Evaric Pharmaceutical. Mr. Catapano stated the recapture of benefits of the mortgage recording tax was determined to be based on $11.5 million and therefore the amount of recapture is $120,750. The mortgage recording tax is the only IDA benefit that was provided.

7 SCIDA MINUTES -7- AUGUST 25, 2016 Upon a motion by Mr. Harvey, seconded by Mr. Hendricks, it was: RESOLVED, to a recapture of benefits on the Ropack, Inc. facility at 155 Commerce Drive, Hauppauge in the amount of $120,750. Evaric Pharmaceutical: Request for a final resolution for a lease transaction. Mr. Catapano presented Exhibit F. Evaric Pharmaceutical manufactures and distributes generic pharmaceuticals. Mr. Catapano indicated Evaric Pharmaceutical is requesting a final resolution today from the Board. Mr. Catapano stated at the last meeting Mr. Vasu Sabella, CFO, Evaric indicated that he was requesting a greater level of IDA benefits similar to what he received from the Town of Islip IDA on a property in Central Islip. Mr. Catapano confirmed with the Town of Islip, that the property was in a NYS Empire Zone and the abatement was a standard zone abatement with a 5 year freeze. Mr. Catapano stated the project should move forward with the original proposal of a 15 year abatement that the IDA Board had approved. Mr. Catapano stated that a public hearing was held and no comments were received. Upon a motion by Ms. Minieri, seconded by Mr. Hendricks, it was: RESOLVED, to approve a final resolution for a lease transaction in the approximate amount of $15,700,000 for Evaric Pharmaceutical facility. Beyer Graphics: Request for a final resolution for a lease transaction. Mr. Catapano presented Exhibit G. Beyer Graphics prints, packages and manufactures folding cartons, specializing in pharmaceutical, cosmetics and the apparel industries. Mr. Catapano stated Beyer Graphics is requesting a final resolution today from the Board. Mr. McNally stated a public hearing was held and no comments were received. Mr. McNally stated Beyer Graphics is looking to close next week. Upon a motion by Mr. Hendricks, seconded by Mr. Harvey, it was: RESOLVED, to approve a final resolution for a lease transaction in the approximate amount of $3,740,000 for Beyer Graphics facility.

8 SCIDA MINUTES -8- AUGUST 25, 2016 Minutes The Minutes of the July 28, 2016 Meeting were accepted by the Board. Upon a motion by Ms. Minieri, seconded by Mr. Hendricks, it was: RESOLVED, to adjourn the Regular Meeting of the Suffolk County Industrial Development Agency. The Meeting adjourned at 1:45 p.m. The next Meeting of the Suffolk County Industrial Development Agency is tentatively scheduled for September 29, 2016.

MINUTES IDA REGULAR MEETING JUNE 25, 2015

MINUTES IDA REGULAR MEETING JUNE 25, 2015 ACCEPTED BY THE BOARD 7/23/15 PRESENT Joanne Minieri, Chair Grant Hendricks, Vice Chairman Peter Zarcone, Treasurer Anthony Giordano, Secretary Kevin Harvey, Member