Meeting Minutes Monday, August 28, 2017 Meeting Economic Development Conference Room 20 Ontario St Canandaigua, NY 14424

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1 Meeting Minutes Monday, August 28, 2017 Meeting Economic Development Conference Room 20 Ontario St Canandaigua, NY Members Present Members Excused Andy Molodetz, Vice Chairman Mike Davis, Chairman Laura Pedersen, Secretary Supervisor Jeff Gallahan Lew Zulick, Treasurer Kelly Mittiga Staff Present Mike Manikowski, Exec. Dir. Michael Wojcik, CFO Suzanne Vary, Staff Diane Foster, Staff Jessica Kazmark, Staff Dave Reh Guests Present Brian Young, Deputy County Administrator Dennis Wilmot, Wilmorite Management Group, LLC Contract Staff Jim Coniglio, Underberg & Kessler Katie Baynes, Nixon Peabody Jim Dolan, McFarland Johnson John Hicks, McFarland Johnson CALL TO ORDER: Vice Chair, Andy Molodetz, called the meeting to order at 5:14 pm. A quorum was not present. Mike Manikowski introduced to the Board, Jessica Kazmark, the newest member of the Economic Development staff taking over for Melissa Doyle. OLD BUSINESS: Wilmorite Management Group: Mike Manikowski introduced Dennis Wilmot with Wilmorite Management Group. He reminded the Board of the work done seven years ago with Wilmorite; the inducement incentive program, the signature asset at East View Mall. Mike explained that he asked Dennis Wilmot to give an update on the property and where it s going and where he sees the retail environment going with all the challenges they are facing. Lew Zulick entered the meeting at 5:16 pm making a quorum present. Brian Young entered the meeting at approximately 5:21 pm. Dennis Wilmot gave his perspective on where the true retail climate is. He noted that the context of his updates and the positive news he would like to share would not have been possible without the OCIDA approving an inducement resulting in the addition of Von Maur and the other

2 improvements made to the common areas and tenancies. There is a continued movement toward quality with East View Mall being the premier shopping center in the five county region. He discussed areas of the market, noting historically it was not uncommon to have four retail shopping malls within an area. He noted the historical trend of the retail stores, their sales, and how on line (e-commerce) retail is affecting the stores. As a result, he anticipates seeing less and less retail stores. As the retail spaces contracts, doors are being open to other uses such as theatres, restaurants, hospitality, health care and even apartments, creating a mixed use developments. He noted that East View is in a good place but they are continually vigilant with the competitive pressures from other resources. Dennis Wilmot exited the meeting at approximately 5:35 pm Lehigh Crossing (Barkman Honey): Suzanne Vary explained that Bluestone Creek Development has identified a new tenant for 7871 Lehigh Crossing in Victor. It is Barkman s Honey, a company out of Kansas that collects locally produced honey to filter and bottle for sales. Bluestone is asking for an extension of the sales tax benefit for Barkman s Honey to finish the remaining space of approximately 8,300 square feet. They are also asking for an increase of sales tax exemption of $39,000. Suzanne noted, because it is not over $100K, therefore does not need a public hearing, just Board approval. Laura Pedersen made a motion to extend the sales tax exemption to 12/31/2017 and increase the sales tax exemption amount by $39,000. Kelly Mittiga seconded the motion. Motion unanimously carried. AIRPORT UPDATE: Jim Dolan with McFarland Johnson (MJ) informed the Board of the following items: Grants and Upcoming Projects New York State Aviation Capital Grants and FAA Grants NYSDOT Aviation Bureau has completed scoring of the FY2016 grant applications. MJ s understanding is they will announce the grants either at the NYAMA Fall Conference in Buffalo, Sept. 12th 14th or shortly thereafter. Canandaigua Airport applied for a new terminal building in the FY2016 program. The FY2017 NYSDOT Aviation Capital Grant program is scheduled to start after the announcement of the FY2016 grant awards, so MJ has been told by Gerardo Mendoza, Director of the Aviation Bureau. Hangar Construction An was received from Jeff Bartkoski on Friday, August 18th regarding his conversations with a developer and jet aircraft owner. Mr. Bartkoski will be meeting with the developer/aircraft owner later in the week of Aug. 21st to further plans for a large hangar construction. Should there be no significant progress by the developer, they will recommend that OCIDA move forward with the original intent of the grant, to construct a single, approximately 6,000 SF aircraft hangar that could store a minimum of one small to medium sized business jet. Current Projects Airport Master Plan Update On-going planning for second Public Information Workshop, scheduled for September 21, 2017,

3 5:00-7:00 pm, at he Canandaigua Airport. McFarland Johnson is working with Dixon Schwabl to arrange the public information workshop, and combine it with a second community day at the airport, to invite the public and stakeholders and address any concerns. MJ is developing visualizations to simulate aircraft approaches to Runway for use at the public information workshop. We feel this will give residents and public officials a better perspective of what goes into the aircraft approaches and what they look like from the cockpit/pilot perspective. Sanitary Sewer Construction has been completed and accepted by all parties. MJ will now complete the grant reimbursement and closeout processes. Main Aircraft Apron Reconstruction Grant offer/agreement for construction has been received from FAA, reviewed by legal counsel, and will be signed by OCIDA and returned to FAA. MJ will contact Macedon Landscaping/Excavating & Paving to set up a pre- construction conference, and verify a date to mobilize and begin construction. MJ will hold a stakeholders meeting at the airport to advise all parties of the construction, schedule and permit aircraft to be temporarily relocated. Aircraft fuel will be available uninterrupted during construction. Airport Management Fixed Base Operator (FBO) Transition The modular building for MFC Aviation Services, LLC arrived on Wednesday, August 23rd. Set up of utilities for the building is ongoing, and MFC AS is looking at furniture for the building. Photos were shown of the building. The final annual cost for the modular building, set up, utilities and sanitary pumping is $18,000. OCIDA had committed to $12,000, and MFC is paying $2,400/year. A new sign was built to go on the outside of the building, with names and phone numbers for the FBO and airport manager. The building and sign will provide better visibility for the FBO from the aircraft ramp and fuel farm, where most aircraft taxi upon arrival at the airport. MJ has been working consistently with MFC AS and Jeff Bartkoski to arrange for all utilities and details regarding the new modular building, including internet service, water & sanitary hookups and electrical service. MFC AS has been busy with numerous jet flights in and out of Canandaigua, particularly with the CMAC performers. Andy Molodetz asked if an approval needed to be done for the increase of the amount of annual cost and for clarification of the breakdown. There was a brief review of the cost and what amount was needed for the approval. Kelly Mittiga made a motion to approve the additional cost of $6000 for the modular building set up. Lew Zulick seconded the motion. Motion unanimously carried. Jet Traffic: Low-Flying and Noise Meeting In response to concerns and communications received from City of Canandaigua residents and elected officials, a meeting was held at the OCIDA conference room on Tuesday, August 15 th to

4 listen to the concerns and address them first hand. In attendance were one resident from the City, City Supervisors, and Canandaigua Mayor Polimeni, staff from MJ, OCIDA, Constellation Brands flight department and Chris Schubert. The city resident expressed concern about the size, altitude, noise and approach course of very large jets approaching and departing Canandaigua Airport. MJ created and brought a graphic with an aerial photograph of the City and Airport, with a profile below that showed aircraft altitudes as they approached Runway 31. The resident s and supervisors concerns were primarily related to the frequency of jet traffic, the noise created and the fact that aircraft were flying somewhat off course as it related to a straight-in approach to the airport. MJ and Constellation Brands staff addressed many of the concerns with clarifications regarding aircraft altitude and position over the City. Also discussed were the noise abatement procedures in place, however, those only relate to departing aircraft and are voluntary in nature. Constellation Brands Director of Aviation and Chief Pilot did an exceptional job of stating that, as they use Canandaigua Airport more frequently and become more familiar with the layout approach, they can adjust their approach to help mitigate the noise. Jim Dolan provided the residents and supervisors with a business card with his mobile phone number, and asked the residents and supervisors to please call any time they have a concern. It was noted that several of the flights are late at night, and followed performances at CMAC, with the performers departing Canandaigua around 11:00-11:30 pm. Richard Deys: Executive Hangars at East Apron Mr. Deys is working with AEY Enterprises, who is working with Mr. Deys engineering and architecture team to present site plans and engineering drawings to the Town of Canandaigua. Town of Canandaigua is providing review comments to Mr. Deys design team.mr. Deys will be providing McFarland Johnson with a schedule for finalizing plans and mobilization for construction. Aviation Fuel: July, 2017 Fuel Sales (Per Jeff Bartkoski): Jet-A 10,751 Gallons at $0.10/gallon flow fee = $1,075. AvGas 3,460 Gallons at $0.10/gallon flow fee = $346. Airport Budget/Progress Report Period Four budget/progress report is attached for review. Sandmans RCD Lease: The actual lease agreement for the modular building and its utilities from Sandmans RCD (Richard Deys) was presented to the Board for approval. It was noted by Jim Dolan, by virtue of the approval of the $6000 increase in cost of the modular building, the agreement had already been approved; however, he did not know if that agreement could qualify for the approval of the actual lease agreement presented. Lew Zulick asked counsel if there were any issues with the lease agreement. Jim Coniglio noted he had reviewed the lease agreement and the only issue he had was the difference between what was previously approved and the amount that was presented. Lew Zulick made a motion to approve the lease. Laura Pedersen seconded the motion. Andy Molodetz asked how this lease was tied to the $18,000. Jim Coniglio explained that there is a rental of $1,200 per month ($14,400/year) and an additional $300 per month ($3,600/year) for the sanitary waste holding tank. Jim Dolan reiterated that the $18,000 included the

5 installation and the monthly payment for the building to be on site. Andy Molodetz asked if this is an annual expense and not a one-time expense. Jim Coniglio confirmed the expense is an annual cost. Suzanne Vary noted that the lease is for 24 months and any lease that extends beyond the 24 months will have a 20% increase. Lew Zulick clarified that the $2,400 is income that the IDA would get from MFC Aviation Services to defray the cost of the $18,000 being paid. Kelly Mittiga made a motion to include the lease in her previous motion and approve increasing to $18,000 in that lease. Suzanne Vary pointed out at the June 26 th meeting, Mike Davis noted that the approval of $12,000 was done for one year and asked the Board if they wanted to approve a second year. A second year in the amount of $12,000 was approved at the July 24 th meeting. Lew Zulick seconded Kelly s Mittiga s motion to approve the lease with the present terms. Diane Foster asked if this was an amendment to the original motion because there was another motion by Lew Zulick and Laura Pedersen. Lew Zulick retracted his motion for the lease approval. Laura Pedersen withdrew her seconded motion. Andy Molodetz explained that the $18,000 was misunderstood by the Board as to what it was for; it was really an annual lease expense inclusive of the lease of the building and the sanitary waste services. Andy Molodetz stated there had been a motion and a second that have now been withdrawn and a new motion by Kelly Mittiga to approve the lease. Andy Molodetz said he thought they should forget the first motion by Kelly Mittiga for the $18,000 because it was approved under a misunderstanding. Lew Zulick reiterated, to be clear; the difference on what was discussed previously was instead of a one-time $18,000, he understands it to $18,000 per year for a minimum of two years. Jim Coniglio explained that if the lease extends beyond two years the rent will be raised by 20%. A brief discussion took place concerning the need of the temporary building extending beyond two years and how and why the decision to go with the temporary building took place. Jim Dolan speculated the reasons for the 20% increase after two years. Jim Coniglio stated he did not think it was a good idea to approve the lease document with the understanding of going back at the end of two years to re-negotiate the 20% increase, but recommended re-negotiating the agreement now. John Hicks recommended that they amend the 20% increase clause out of the contract and approve the contract as amended. Laura Pedersen made a motion to rescind all previous motions regarding the lease of the temporary modular building. Lew Zulick seconded the motion. Motion unanimously carried. Kelly Mittiga made a motion to approve the lease with Sandmans RDC as amended, removing the 20% clause relative to years following years one and two. Lew Zulick seconded the motion. Motion unanimously carried.

6 AIP Proj No Rehabilitate Main Apron Construction: A Resolution Authorizing Mike Manikowski to sign a grant agreement from the FAA and NYSDOT for the Construction of the Rehabilitation of the Main Apron at the Canandaigua Airport was presented. Lew Zulick made a motion to approve the grant agreement for the Construction of the Rehabilitation of the Main Apron at the Canandaigua Airport. Laura Pedersen seconded the motion. Motion unanimously carried. John Hicks exited the meeting at approximately 6:24 pm. Release of Land from L&D/Hazlitt: Katie Baynes explained that Hazlitt (L&D Group Holdings, LLC) has asked the OCIDA to release a parcel of land, approximately 3.8 acres, from the PILOT agreement to enable them to sell to the Naples School District. Laura Pedersen made a motion to approve the Resolution to release the parcel of land requested from the PILOT agreement. Kelly Mittiga seconded the motion. Motion unanimously carried. ADMINISTRATION: July 24, 2017 Minutes: Andy Molodez presented the July 24, 2017 Minutes for approval. Lew Zulick made a motion to approve the July 24, 2017 Minutes. Kelly Mittiga seconded the motion. Motion carried. NYAMA Fall Conf 9/12-9/13/17: Mike Manikowski requested permission to attend the NYAMA Fall Conference in Buffalo. Lew Zulick made a motion to approve Mike Manikowski to attend the NYAMA Fall Conference not to exceed $1000. Kelly Mittiga seconded the motion. Motion unanimously carried. Invoices for payment: Michael Wojcik presented for approval, twenty-two invoices for payment totaling $57,655.99; fifteen invoices totaling $29, for the Airport and seven invoices for the Agency in the amount of $27, Lew Zulick made the motion to approve the payments of the above referenced invoices. Laura Pedersen seconded the motion. Motion carried. EXECUTIVE SESSION: Discussion of financial history of a company: Katie Baynes Laura Pedersen made a motion to move into executive session at 6:31 pm for the purpose of the medical, financial, credit or employment history of a particular person or corporation, or matters leading to the appointment, employment, promotion, demotion, discipline, suspension, dismissal or removal of a particular person or corporation. Lew Zulick seconded the motion. Motion carried. Kelly Mittiga made a motion to move out of executive session at 7:03 pm. Lew Zulick seconded the motion. Motion carried. ADJOURNMENT: Laura Pedersen made a motion to adjourn the IDA meeting at 7:03 pm. Lew Zulick seconded the motion. Motion carried. Respectfully submitted, Diane Foster