Chairman, Niagara County Legislature Coldwell Banker Commercial Realty. Lockport Union Sun & Journal Niagara County Taxpayer

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1 NCIDA/NCDC REGULAR BOARD MEETING MINUTES Wednesday, 9:00 a.m. Meeting Place: Niagara County Industrial Development Agency 6311 Inducon Corporate Drive, Suite One Sanborn, New York Meeting Called to Order The regular meeting of the Niagara County Industrial Development Agency was called to order by Chairman Kiedrowski at 9:00 a.m. 2.0 Roll Call Scott P. Kiedrowski, Chairperson Mayor Michael Tucker, 1st Vice Chairperson Stephen F. Brady, 2 nd Vice Chairperson Deanna Brennen, Secretary Mark A. Onesi, Assistant Secretary William J. Bradberry, Member Michael W. McNally, Member Kevin McCabe, Member Present Present Present Excused Present Excused Present Excused 3.0 Acting Chairman Tucker led the Pledge of Allegiance. 4.0 Introduction of Guests Tom Prohaska William L. Ross Eric Tudor Bruce Whitehouse Frank Strangio John Cummings Justin Sondel Joyce Miles Don Hobel Earl V. Wells, III Buffalo News Chairman, Niagara County Legislature Coldwell Banker Commercial Realty Whiting Group Plati Niagara, Inc. Power Greenhouse Integration Niagara Gazette Lockport Union Sun & Journal Niagara County Taxpayer e3communications Staff Present Samuel M. Ferraro, Executive Director Gary E. Kelsey, Manager of Finance Susan Langdon, Director of Project Development Mark Gabriele, Agency Counsel Mary P. Melloni, Recording Secretary 5.0 Approval of NCIDA Meeting Minutes 5.1 NCIDA Regular Meeting of March 13, 2013 Mr. Onesi indicated he reviewed the minutes and found them to be in order. Mayor Tucker made a motion, seconded by Mr. Brady, to approve the meeting minutes of March 13, Motion passed.

2 Page 2 of NCIDA/NCDC Committee Reports 6.1 NCIDA Audit/Finance Committee Agency Payables Agency YTD Budget Report Mr. Onesi indicated that he found the Agency payables and YTD budget report to be in order and is recommending them for approval. Mr. McNally made a motion, seconded by Mr. Jastrzemski, to approve the Payables and Agency Financial Report for the month of March Motion passed NCIDA/NCDC Audit Ms. Dayton of Lumsden & McCormick presented a summary of the 2012 NCIDA/NCDC Audit. The summary is attached hereto and will be made a part hereof these minutes. Mayor Tucker made a motion, seconded by Mr. Onesi, to accept the 2012 NCIDA/NCDC Financial Audit. Motion passed Whiting Group LOI VIP Land Purchase S. Langdon Ms. Langdon explained that the Whiting Group of Burlington, Canada has presented a Letter of Intent for the purchase of 7.5 acres on the inner loop of Vantage International Point. Ms. Langdon stated that this is a direct result of Ms. Klyczek s marketing efforts in Canada and her meetings with Mr. Bruce Whitehouse of the Whiting Group. Mr. Whitehouse has also asked for a Right of First Refusal on an additional adjacent five acres. The Whiting Group Company is in the overhead door business, servicing trucks. The LOI is for $7,000/acre. Due to an aggressive timeline for construction of a building, Mr. Whitehead is present at the meeting today to explain a project that he would like to apply for incentives for in May when he will be out of town. Mr. Whitehouse explained that his Company is based in Burlington, Ontario and is comprised of four business entities of niche manufacturing. The largest of them is Whiting Door based in Akron, New York. Their product line is the manufacture of roll-up doors for fire and emergency vehicles. Because of the nature of the funding that is associated with fire apparatus and emergency vehicles, a lot of the pieces of equipment are funded by Government dollars. Because of that there is a justifiable desire to have funding awarded to products produced in the U.S. Mr. Whitehouse explained that he wanted a location close to Canada and because of all the help that Ms. Langdon and her team provided he is very interested in proceeding with this proposal.

3 Page 3 of NCIDA/NCDC Committee Reports 6.1 NCIDA Audit/Finance Committee Whiting Group LOI VIP Land Purchase S. Langdon Mr. Whitehouse explained that they are proposing a 20,000 square foot facility to start, with the largest portion of that being dedicated to a very high-end paint system. They want to make sure they will meet all the environmental requirements for this system. If they are able to get the approval from the NCIDA and reach an agreement they anticipate beginning construction this summer with the expectation of beginning manufacturing in March He stated that they plan on hiring 12 full-time, 3 Part-time initially; after 3 years possibly 20 or more. Mr. Brady made a motion, seconded by Mr. Jastrzemski, to authorize the Executive Director to enter into a purchase agreement with the Whiting Group for the property as described, subject to review by Agency Counsel. Motion passed. 6.2 NCDC Audit/Finance Committee Faery s Golf & Landscape, Inc. RLF #384 Mr. Kelsey explained that the Microenterprise Loan Panel met and was presented an application from Faery s Golf & Landscape, a Company that is associated with Faery s Nursery on Route 104. This is a part of that business and Mr. Grenzy will be purchasing it from Mr. Faery. Mr. Grenzy has been working for Faery s in this portion of the business for approximately 12 years. They do golf improvement and landscaping for courses all over the eastern seaboard. The Committee recommends approval of a $30,000 7-year amortization loan and the NCDC will have a second security interest behind First Niagara Bank. Mr. Grenzy also has a bank commitment. Mr. McNally made a motion to approve the loan to Faery s Golf & Landscape, Inc. Mr. Onesi seconded the motion. Motion passed.

4 Page 4 of NCIDA/NCDC Committee Reports 6.3 Governance Committee 7.0 Information Items Summary of Annual Board Evaluation Mr. Brady explained that the self-evaluation of the Board and Committees was reviewed by the Governance Committee and given the results no further action was required. The Committee is recommending approval of the evaluation, which will be posted on the PARIS website as required by PAAA. Mayor Tucker made a motion, seconded by Mr. Onesi, to accept the selfevaluation as presented. Motion passed. Mr. Brady stated that he will set up a committee meeting soon to review some of the recommended changes from the Governor s Budget that could affect some of the NCIDA policies and procedures Election of Officers/Appointment of Committees The Chairperson was confirmed at the March meeting. Chairman Kiedrowski recommends keeping the current slate of officers. The Board was in concurrence with this and the Secretary cast one vote for the current slate. 7.1 Amendments to Governor s Executive Budget Mr. Ferraro pointed out the letter that was sent from the Agency to the Governor s Office expressing concern with the provision regarding the ability of IDA s to abate the State portion of the NYS Sales Tax, and the correspondence that followed from the members of the NYS Assembly indicating that the provision was dropped and was not part of the final State Budget that was adopted. Mr. Gabriele indicated that he has sent information to the Board regarding the changes that were in the Governor s budget. The two notable changes that relate to IDA reform are the return of a Retail Exception, with the three exceptions that were present prior to The exceptions for retail are tourism exception, a highly-distressed area exception based upon employment rates and poverty rates, and a services/products exception which there is a limitation on retail project unless it is a product or service that would not otherwise be available in that municipality.

5 Page 5 of Unfinished Business 8.1 Lake Effect Canal Street, LLC Ms. Langdon explained that this is the acquisition and renovation of a building at 7981 Canal Street in the City of Lockport for a production facility for Lake Effect Ice Cream. The public hearing was held on March 27 th and there were no public comments. Mr. Gabriele explained that Lake Effect is not impacted by the new legislation as it is a commercial project due to the fact that the retail component of this is under one third; if retail were a third or more it would be subject to the retail provisions Preliminary Resolution RESOLUTION OF THE NIAGARA COUNTY INDUSTRIAL DEVELOPMENT AGENCY (i) UNDERTAKE A CERTAIN PROJECT FOR THE BENEFIT OF LAKE EFFECT CANAL STREET, LLC OR AN ENTITY FORMED OR TO BE FORMED (AS MORE FULLY DEFINED BELOW) (ii) DETERMINE THAT THE PROJECT WILL NOT HAVE A SIGNIFICANT EFFECT ON THE ENVIRONMENT; (iii) NEGOTIATE AND EXECUTE A LEASE AGREEMENT, LEASEBACK AGREEMENT, PAYMENT-IN-LIEU-OF-TAX AGREEMENT, PILOT MORTGAGE AND RELATED DOCUMENTS; AND (iv) PROVIDE FINANCIAL ASSISTANCE TO THE COMPANY IN THE FORM OF (A) A SALES TAX EXEMPTION FOR PURCHASES AND RENTALS RELATED TO THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF THE PROJECT AND (B) A MORTGAGE RECORDING TAX EXEMPTION FOR THE MORTGAGE RELATED TO THE PILOT AGREEMENT. Stephen F. Brady [ X ] [ ] [ ] [ ] Michael W. McNally [ X ] [ ] [ ] [ ] The Resolution was thereupon duly adopted Authorize Public Hearing Mr. Brady made a motion, seconded by Mr. Onesi, to authorize a public hearing for the Lake Effect Canal Street, LLC project. Motion passed.

6 Page 6 of Unfinished Business 8.2 Diversified Manufacturing, Inc. Ms. Langdon explained that this is a metal fabrication company, located at 410 Ohio Street in Lockport. They will be putting a substantial addition on to their building. The public hearing was held on March 27 th and there were no public comments. Mr. Gabriele explained that this project will not be affected by the new legislation as it is clearly a manufacturing company and not subject to any retail exception Final Resolution Mr. Jastrzemski made a motion, seconded by Mr. Onesi, to approve the final resolution for the Diversified Manufacturing, Inc. project. RESOLUTION OF THE NIAGARA COUNTY INDUSTRIAL DEVELOPMENT AGENCY (i) UNDERTAKE A CERTAIN PROJECT FOR THE BENEFIT OF DIVERSIFIED MANUFACTURING, INC. OR AN ENTITY FORMED OR TO BE FORMED (AS MORE FULLY DEFINED BELOW) (ii) DETERMINE THAT THE PROJECT WILL NOT HAVE A SIGNIFICANT EFFECT ON THE ENVIRONMENT; (iii) NEGOTIATE AND EXECUTE A LEASE AGREEMENT, LEASEBACK AGREEMENT, PAYMENT-IN-LIEU-OF-TAX AGREEMENT, PILOT MORTGAGE AND RELATED DOCUMENTS; AND (iv) PROVIDE FINANCIAL ASSISTANCE TO THE COMPANY IN THE FORM OF (A) A SALES TAX EXEMPTION FOR PURCHASES AND RENTALS RELATED TO THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF THE PROJECT AND (B) A MORTGAGE RECORDING TAX EXEMPTION FOR THE MORTGAGE RELATED TO THE PILOT AGREEMENT. Stephen F. Brady [ X ] [ ] [ ] [ ] Michael W. McNally [ X ] [ ] [ ] [ ] The Resolution was thereupon duly adopted Authorize Public Hearing Mr. Brady made a motion, seconded by Mr. Onesi, to authorize a public hearing for the Diversified Manufacturing, Inc. project. Motion passed.

7 Page 7 of Unfinished Business 8.3 KIPO Motors Chevrolet, Inc. Ms. Langdon explained that this project entails the acquisition and substantial renovation of the Chevrolet dealership in Ransomville. A public hearing was held on April 3, The Supervisor of the Town of Porter spoke in support of the project; there was also a citizen present who had some questions that Ms. Langdon was able to answer. Mr. Gabriele stated that this is a project that would fall under the new retail prohibition; however, it potentially falls into the unique services exception to that prohibition as it is located in the Village of Ransomville. Other car dealerships were looked at and they are all in a distance from the Village of Ransomville. Mr. Gabriele stated he believes the agency has the ability to grant this particular benefit because of the unique services exception. It is up to the Board and their discretion to find that this will be a unique service to the residents of the Village of Ransomville that would otherwise not be available to them at that location. There should also be a finding that the benefits would be significant to protect the permanent and new sector jobs moving forward. Mr. Gabriele stated that if the Board decides to go forward, this finding would then be confirmed by the County Manager. Mr. Gabriele stated that KIPO originally requested a 10-year commercial PILOT; however, the Supervisor of Ransomville is requesting the Agency to approve a 15-year PILOT; this should also be discussed by the Board Final Resolution Mayor Tucker stated that he would recommend a 10-year PILOT as opposed to a 15-year PILOT; the board members concurred. A motion was made by Mr. McNally, seconded by Mr. Jastrzemski, to approve the Final Resolution for KIPO Motors, to include a 10-year PILOT. RESOLUTION OF THE NIAGARA COUNTY INDUSTRIAL DEVELOPMENT AGENCY (i) MAKING A DETERMINATION PURSUANT TO THE NEW YORK STATE ENVIRONMENTAL QUALITY REVIEW ACT; (ii) QUALIFYING THE PROJECT AS A "UNIQUE FACILITY" UNDER SECTION 862 OF THE NEW YORK GENERAL MUNICIPAL LAW, AS AMENDED; AND (iii) AUTHORIZING THE EXECUTION AND DELIVERY OF AN AGENT AGREEMENT, LEASE AGREEMENT, LEASEBACK AGREEMENT, PILOT AGREEMENT, PILOT MORTGAGE, MORTGAGE AND RELATED DOCUMENTS WITH RESPECT TO KI-PO MOTORS CHEVROLET, INC. PROJECT (AS MORE FULLY DESCRIBED BELOW).

8 Page 8 of Unfinished Business 8.3 KIPO Motors Chevrolet, Inc Final Resolution Stephen F. Brady [ ] [ X ] [ ] [ ] Michael W. McNally [ ] [ X ] [ ] [ ] The Resolution thereupon failed. 8.4 Modern-Tec Manufacturing Extension of Inducement Mr. Gabriele explained that Modern-Tec Manufacturing is requiring additional time to complete their project and have requested a 6-month extension of their Inducement. A motion was made by Mr. Brady, seconded by Mayor Tucker, to extend the inducement for Modern-Tec Manufacturing. RESOLUTION AUTHORIZING THE NIAGARA COUNTY INDUSTRIAL DEVELOPMENT AGENCY TO EXTEND THE INDUCEMENT TERM FOR MODERN-TEC MANUFACTURING, INC. FOR A SIX-MONTH PERIOD WITH RESPECT TO A CERTAIN PROJECT (AS MORE FULLY DEFINED BELOW) TO BE UNDERTAKEN BY THE AGENCY FOR THE BENEFIT OF MODERN-TEC MANUFACTURING, INC. OR AN ENTITY FORMED OR TO BE FORMED. Stephen F. Brady [ X ] [ ] [ ] [ ] Michael W. McNally [ X ] [ ] [ ] [ ] The Resolution was thereupon duly adopted.

9 Page 9 of Unfinished Business Group, LLC Refinance of Mortgage Mr. Gabriele explained that this is the Haeberle Plaza project in downtown Niagara Falls. They wish to refinance their mortgage in order to take advantage of the lower rates and also wish to utilize the mortgage tax exemption benefit. There are no additional benefits associated with this request and they are in good standing with their PILOT payments, etc. Mayor Tucker made a motion, seconded by Mr. Brady, to approve the refinance of mortgage and mortgage tax exemption for 224 Group, LLC. RESOLUTION AUTHORIZING AND CONSENTING TO THE EXECUTION AND DELIVERY OF A MORTGAGE AND MORTGAGE TAX EXEMPTION AFFIDAVIT AND SUBORDINATION OF PILOT MORTGAGE TO 224 GROUP, LLC AND RELATED DOCUMENTS. Stephen F. Brady [ X ] [ ] [ ] [ ] Michael W. McNally [ X ] [ ] [ ] [ ] The Resolution was thereupon duly adopted. 9.0 New Business 9.1 Power Greenhouse Integration Ms Langdon explained that Power Greenhouse Integration, LLC (PGI) is a new company with a concept to connect gas-fired power generation to a modern greenhouse. The company will purchase a 12.5 acre greenhouse currently located on Shawnee Road in the Town of Wheatfield. The product of the greenhouse will be vegetables such as tomatoes, cucumbers and leafy greens. The facility will be renovated and modernized with lighting, heating, cooling and the ability to absorb the CO2 from the boilers and engines directly into the plants as fertilizer. The business will support the WNY region with locally grown vegetables of the highest quality. When renovated, the greenhouse will operate on a year-round basis.

10 Page 10 of New Business 9.1 Power Greenhouse Integration Mr. Cummings of Power Greenhouse Integration explained that they are currently in the process of acquiring the existing greenhouse currently owned by Fortistar. The Company receives benefits from the government for being a utility and these greenhouses are a staple up north, typically functioning through gas-fired and heating systems. The new system will operate 365 days a year and can be located anywhere. They will employ people to start and up to 60 the next year; and then 90 to 100. There is 42 acres, 12.5 acres is greenhouse and they may change a retention pond to add another greenhouse. They will have a steam agreement with Fortistar. Mayor Tucker stated that this will be in direct competition with local farmers. He also questioned their authorization to do business in New York State. Mr. Cummings explained that they will form a new LLC in New York and the acquisition of the property will also allow them to do business in New York. Mr. Gabriele explained that the Agency requires a Certificate of Authority before it grants any benefits Preliminary Resolution Mr. Jastrzemski made a motion, seconded by Mr. McNally, to approve the Preliminary Resolution for Power Greenhouse Integration. Stephen F. Brady [ ] [ ] [ X ] [ ] Michael W. McNally [ X ] [ ] [ ] [ ] The Resolution was thereupon duly adopted Public Hearing Resolution Mayor Tucker made a motion, seconded by Mr. Onesi, to authorize a public hearing for the Power Greenhouse Integration project. Motion passed with Mr. Brady abstaining.

11 Page 11 of New Business 9.2 Plati Niagara, Inc (Hotel City of Niagara Falls) Ms. Langdon explained the Strangio family has owned and operated a Quality Inn hotel franchise and Antonio s Banquet and Conference Center at 7708 Niagara Falls Boulevard since The Strangios wish to expand into the downtown Niagara Falls market with construction of an upscale hotel under another national franchise. The company has acquired a parcel of vacant land on Rainbow Boulevard and Fourth Street in Niagara Falls. They will construct a 65,000 square foot hotel with 110 upscale rooms and up to 4,000 square feet of retail space to be leased. Mr. Strangio addressed the Board. He explained that his father built the hotel over 20 years ago and that he and his family have worked in the business all their lives. They purchased the property on Rainbow Boulevard and 4 th Street where they wish to construct a hotel and retail facility, adding a franchise restaurant. They plan construction in the fall and to open in early spring Preliminary Resolution Mr. McNally made a motion, seconded by Mr. Onesi, to approve the preliminary resolution for Plati Niagara, LLC. RESOLUTION OF THE NIAGARA COUNTY INDUSTRIAL DEVELOPMENT AGENCY (i) ACCEPTING THE APPLICATION OF PLATI NIAGARA INC. WITH RESPECT TO A CERTAIN PROJECT (AS MORE FULLY DEFINED BELOW) TO BE UNDERTAKEN BY THE AGENCY FOR THE BENEFIT OF PLATI NIAGARA INC. OR AN ENTITY FORMED OR TO BE FORMED; (ii) AUTHORIZING A PUBLIC HEARING WITH RESPECT TO THE PROJECT; (iii) AUTHORIZING THE EXECUTIVE DIRECTOR OF THE AGENCY TO TAKE CERTAIN ACTIONS UNDER ARTICLE 8 OF THE ENVIRONMENTAL CONSERVATION LAW IN CONNECTION WITH THE PROJECT; (iv) PROVIDE SALES TAX EXEMPTION FOR PURCHASES AND RENTALS RELATED TO THE RENOVATION, CONSTRUCTION AND EQUIPPING OF THE PROJECT; AND (v) DESCRIBING THE FORMS OF FINANCIAL ASSISTANCE BEING CONTEMPLATED BY THE AGENCY. Stephen F. Brady [ X ] [ ] [ ] [ ] Michael W. McNally [ X ] [ ] [ ] [ ] The Resolution was thereupon duly adopted.

12 Page 12 of New Business 9.2 Plati Niagara, Inc (Hotel City of Niagara Falls) Authorize Public Hearing Mayor Tucker made a motion, seconded by Mr. Brady, to authorize a public hearing for the Plati Niagara, Inc. project. Motion passed Agency Counsel No report Any Other NCIDA Matters the Board Wishes to Discuss 12.0 Next Regular NCDC - NCIDA Annual Organizational Board Meeting: 13.0 Adjournment DATE: May 8, 2013 TIME: 9:00 a.m. PLACE: Niagara County Center for Economic Development Mayor Tucker made a motion, seconded by Mr. Jastrzemski, to adjourn the meeting at 10:03 a.m. Motion passed. Respectfully submitted, Reviewed by, Approved by, Mary P. Melloni Samuel M. Ferraro Deanna Alterio-Brennen Administrative Assistant Executive Director Secretary