MINUTES IDA REGULAR MEETING APRIL 27, 2017

Transcription

1 MINUTES IDA REGULAR MEETING APRIL 27, 2017 ACCEPTED BY THE BOARD 5/18/17 PRESENT Theresa Ward, Chair Grant Hendricks, Vice Chairman Peter Zarcone, Treasurer Anthony Giordano, Secretary Kevin Harvey, Member EXCUSED ABSENCE Gregory Casamento, Member 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 William Wexler, Agency Counsel Melissa C. Bennett, Associate, Barclay Damon LLP Andrew Komaromi, Esq., Harris Beach PLLC William Weir, Esq., Nixon Peabody LLP William Dudine, Esq., Winston & Strawn David Chauvin, Zimmerman/Edelson, Inc. Victor Ocasio, Reporter, Newsday Regina Zara, Chief Financial Officer, Suffolk County Economic Development Corporation Louis Bekofsky, Chief Executive Officer, Suffolk County Economic Development Corporation Angela Glaser, Executive Assistant, Suffolk County Economic Development Corporation Christina DeLisi, Aide to the Presiding Officer DuWayne Gregory Robert Trotta, Suffolk County Legislator Lisa Broughton, Suffolk County Department of Economic Development & Planning Kimberly Scalice, Aide to Suffolk County Legislator Cilmi

2 SCIDA MINUTES -2- APRIL 27, 2017 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. by Ms. Ward, Chair of the IDA. PUBLIC COMMENT Ms. Ward opened the public comment portion of the Suffolk County Industrial Development Agency Meeting. No comments were received for the Public Comment portion of the Suffolk County Industrial Development Agency. Upon a motion by Mr. Harvey, seconded by Mr. Hendricks, it was: RESOLVED, to end the Public Comment portion of the meeting of the Suffolk County Industrial Development Agency. NeuLion, Inc.: Request for an inducement resolution for a lease transaction. Mr. Catapano presented Exhibit A. Mr. Catapano indicated that NeuLion, Inc. is a public corporation listed on the Toronto Stock Exchange that specializes in digital video broadcasting and worldwide streaming of sporting events. Mr. Catapano stated NeuLion, Inc. headquarters are located at 1600 Old Country Road, Plainview in a 24,000 square foot building and they have outgrown this space. They recently purchased a 50,000 square foot building located at 576 Broad Hollow Road, Melville, NY for their new headquarters. Mr. Catapano stated the Company will renovate and equip the 50,000 square foot building for the development of technology and software production. Mr. Catapano indicated the Company is working with NYS Empire State Development and PSEG Long Island. Mr. Catapano indicated the Company will add approximately 40 new employees by year two at an average salary of $76,000 - $77,000. Mr. Catapano introduced Alexander Arato, General Counsel, NeuLion; Christopher Kent, Counsel, Farrell Fritz; Walter Imperatore, Sr. V.P. and Michael Menchise, Renaissance Property Association to Board Members. Mr. Kent stated NeuLion is a global leader, that specializes in digital video broadcasting and distribution. NeuLion needs to relocate its headquarters to Melville because it has outgrown its current space at 1600 Old Country Road, Plainview. Mr. Kent indicated the Company currently has 500 employees worldwide and 142 of those employees will relocate to their new location in the Melville corridor. The Company is looking to attract new customers for live streaming that is done over the internet. Mr. Giordano asked if the building is already purchased and Mr. Kent said yes we are going to renovate the building. Mr. Giordano asked if you do not receive assistance are you going to leave and Mr. Kent stated the Company could relocate to Florida. Mr. Giordano asked what the Company will do with the building if they do not receive assistance and Mr. Kent stated they will lease it.

3 SCIDA MINUTES -3- APRIL 27, 2017 Mr. Arota stated the new location requires a lot of renovating and it will be the Company s technical operating center as well. Mr. Harvey asked Mr. Arota why there was hesitation in the proposed number of new employees and Mr. Arota said we are committed it takes time to find people it s nothing more than our desire to be conservative. Mr. Zarcone asked if the Company is leasing the current facility and Mr. Arota said yes. Mr. Zarcone asked if all the employees from the current facility will move to the new facility and Mr. Arota said yes. Mr. Zarcone asked what the hours of operations are and Mr. Kent stated the business is 24 hour operation. Ms. Ward asked who is Renaissance and Mr. Kent responded they are the property managers. Ms. Ward asked what type of positions is the company trying to fill and Mr. Arota stated software development; production managers; software engineers and he indicated the technical operating center is a 24 hour facility. Mr. Harvey stated the Company has 142 employees and can they give us an idea of their historical growth. Mr. Arota indicated that he is new to the Company he started in September. He indicated that much of the growth has been through mergers and he can get this information. Mr. Zarcone asked if NeuLion has a contract with Renaissance Property Associates and Mr. Kent responded no. Mr. Zarcone asked are you familiar with the Long Island First Policy and Mr. Arota said yes he is. Upon a motion by Mr. Hendricks, seconded by Mr. Giordano, it was: RESOLVED, to approve an inducement resolution for a lease transaction in the approximate amount of $14,800,000 for NeuLion, Inc./NeuLion Real Estate, Inc. Westfield Green Selden Project: Request for an inducement resolution for a lease transaction. Mr. Catapano presented Exhibit B. Mr. Catapano stated Westfield Green is the redevelopment of acres at 495 Middle Country Road, Selden for 126 residential units with 32 of the units designated as workforce housing. Mr. Catapano indicated 25 percent of the units will be workforce housing, available to residents earning less than 120 percent of the area median income and 75 percent will be market rate units. This property was formerly a golf driving range and miniature golf facility. Mr. Catapano indicated these apartments were originally slated for condominiums and switched to rental apartments due to regulatory issues affecting lenders that only a rental unit project would be financeable in this area. Mr. Catapano stated Michael Kelly, Principal of Westfield Green is a Board Member of the Brookhaven IDA and a member of the Suffolk County Planning Commission. Mr. Kelly being a member of the Brookhaven IDA they were unable to accept an application as Mr. Kelly would have to resign from the Board. Mr. Catapano stated Mr. Wexler, Agency Counsel said there is no conflict of interest with Mr. Kelly being a Board Member of the Suffolk County Planning Commission. Mr. Catapano indicated that there are proposed community benefits from this project including; a memorial park, dedication of land to the adjacent Middle Country Public Library and use of the clubhouse for Selden Civic Association Meetings. Mr. Catapano indicated that and Kevin Gremse, National Development Council (NDC) is here to

4 SCIDA MINUTES -4- APRIL 27, 2017 answer any questions. Mr. Catapano stated Mr. Gremse assisted in reviewing this project and helped determine the proposed IDA benefit structure. The National Development Council (NDC) is a not-for-profit economic development finance advisory company that is retained by Suffolk County Office of Economic Development to review and evaluate applications for financial assistance, including those submitted to the Agency. Mr. Catapano introduced Mike Kelly, Managing Member, Westfield Green; Dan Deegan, Counsel to Westfield Green, Forchelli, Curto, Deegan, Schwartz, Mineo & Terrana, LLP; James Britz, Executive Vice President, Long Island Housing Partnership, Inc. to Board Members. Mr. Deegan stated this project is located in Selden and will provide much needed affordable housing for the area. The project has been approved by the Town of Brookhaven all building permits have been approved and the applicant can begin the construction phase. Mr. Deegan indicated that Westfield is compliant with the Long Island First Policy. Mr. Deegan stated this is a $30 million dollar project and we are anxious to make this project succeed and have met with Kevin Gremse, NDC and have received a proposal that is less benefits than what the Brookhaven IDA would provide. This site was previously underutilized and blighted the project will add an additional 200 construction jobs. Mr. Giordano asked if there are other people interested in this property and Mr. Deegan responded no. Mr. Hendricks said Peter Elkowitz and James Britz would like to speak to the Board. Mr. Elkowitz stated that he has worked with the Avalon rental apartments in Patchogue and we will be handling the lottery system for Westfield Green as a third party. Mr. Giordano asked if young people and those selling their homes will be attracted to this complex and Mr. Britz responded we are assuming it will be millennials and divorcees. Mr. Trotta stated this project is going to create a problem for the school district. Mr. Britz said a study on school age children was done in 2009 by Dr. Pearl Kamer and according to that study approximately 21 school age children could result from this project. Mr. Zarcone asked if all the approval are complete through the Town and Mr. Deegan responded yes. Upon a motion by Mr. Hendricks, seconded by Mr. Zarcone, it was: RESOLVED, to approve an inducement resolution for a lease transaction in the approximate amount of $31,420,000 for Westfield Green Selden Project facility. Unanimously carried 4/0 with Mr. Harvey recusing. Precision Label Corporation/50 Marcus Realty, LLC: Request for a final resolution for a lease transaction. Mr. Catapano presented Exhibit C. Precision Label Corporation is a manufacturer, distributor and warehouse of pressure sensitive labels. Mr. Catapano indicated that the Company was approved at the February 28, 2017 IDA Meeting. The Company is requesting a final resolution today. A public hearing was held on March 21, 2017 and no comments were received.

5 SCIDA MINUTES -5- APRIL 27, 2017 Upon a motion by Mr. Giordano, seconded by Ms. Ward, it was: RESOLVED, to approve an final resolution for a lease transaction in the approximate amount of $5,850,000 for Precision Label Corporation/50 Marcus Realty, LLC facility. Minutes The Minutes of the February 28, 2017 Meeting were accepted by the Board. Upon a motion by Mr. Zarcone, seconded by Mr. Hendricks, it was: RESOLVED, to adjourn the Regular Meeting of the Suffolk County Industrial Development Agency. The Meeting adjourned at 1:20 p.m. The next Meeting of the Suffolk County Industrial Development Agency is tentatively scheduled for May 18, 2017.