Monday – January 30, 2017 at 5:30 PM

Present

• F. Edward Devitt, Chairman
• Edwin Williams, First Vice-Chair
• Donna Jennings, Treasurer and Member
• Stephen Rainaldi, Second Vice-Chair
• Michael Hayes, CEO, Asst. Secretary and Member

Also Present

• Christopher Martell, IDA Attorney, Hodgson Russ LLP
• Members of the Audience
• Suzanne Hadden, Recording Clerk

Agenda

• Call to Order
• Reorganization of the IDA
• Polich Tallix, Inc. – NYS Rte. 747 and 17K – Public Hearing
• Treasurer’s Reports
• Other Business
• Approval of the November 28, 2016 Meeting Minutes
• Adjournment

Polich Tallix, Inc. – NYS Rte. 747 and 17K – Public Hearing

• Chairman Devitt called the meeting to order and stated the IDA has a public hearing this evening with Polich, Inc., located on New York State Route 747 and 17K and he asked the IDA Counsel to read the public hearing notice.
• Attorney Martell stated that the Polich Tallix Public Hearing is now open and introduced himself to the audience. He said this public hearing is required under Section 859 of the General Municipal Law. There are copies of the agenda and the public hearing notice on the table and the public hearing notice were published on January 20, 2017 in the Times Herald Record and that satisfies the public hearing requirements of the General Municipal Law. By way of operating rules, if you wish to speak, stand up and identify yourself. This isn’t a Q & A, but it is an opportunity for the Members of the IDA to take comment, so these comments can be reviewed prior to the IDA acting on any Resolutions further into this project. Please keep your comments to 5 minutes and we are happy to answer any questions to the extent that we can. In lieu of reading the long public hearing notice, he asked that it be put into the record and that will be part of the public hearing record and with that said he opened the hearing at 5:34 p.m. and opened it to public comment.
• Adam Demchak, PE executive VP and General Manager with Polich Tallix was present and stated the company has been in business in the Hudson Valley for 47 years. Dick Polich, their founder and owner moved into their current location in the mid 90’s, after a restructuring of his business, where he broke away from Tallix; which had been in Beacon for a number of years. He moved into their current location and started fresh and for the last 20 years has been building and growing the company. Mr. Demchak said he joined 3 years ago, as then General Manager and now Vice President and they are doing very well in a sense that they are poised for growth and expansion in their business. He is looking at things from a different perspective then Dick, who has been running the company for a long time and is in his mid-eighties. They have an opportunity to bring in processes that they have traditionally outsourced and by outsourced, he means that they have paid companies to do work for them. Companies that are out of state and they have found that it makes a lot of sense financially to bring those processes in house. In order to do that they have to expand their footprint and in the current facility that they are in, that they lease, they don’t feel that it is the best use of their time and money. So they started looking for their own facility and they found that facility late last year and have since moved forward and taken steps to purchase that facility. They are able to move into that facility and are able to grow and expand and hire, but to do both at the same time is tough and that is where they are looking for outside help, wherever they can get it in saving money to put back into the company.
• Mr. Demchak continued – Essentially that is where they are and what they came to Montgomery for and to ask for a PILOT program and some tax assistance knowing that any money they save in this project helps expedite the reinvestment into the company, with the purchasing of equipment, hiring new people and growing the company and growing their presence in the area, specifically in the Village of Walden and the Town of Montgomery.
• Attorney Martell said for the people in attendance, from the application, he wanted to confirm that the numbers are correct. He asked Mr. Demchak; according to the application you will be retaining 80 full time jobs?
• Mr. Demchak said correct.
• Attorney Martell asked and creating 13 jobs?
• Mr. Demchak said over the next 5 years.
• Attorney Martell asked, private investment in the site, 2 million 574 thousand?
• Mr. Demchak said it is more than that, the project total. The purchase price of the facility is 2.5 million and they are going to put around 1 million into the project, right away, as far as renovations and additional equipment purchases and things like that.
• Attorney Martell asked under the terms of the PILOT agreement, that you are looking for, there would be no reduction in current taxes and you would be looking for a reduction on anything that occurs as a result of you improving this property?
• Mr. Demchak said correct.
• Attorney Martell asked if anyone on the board had any questions regarding this application?
• Member Hayes asked Mr. Demchak, what is the square footage of the building you are in now, that we saw today and what is the square footage of the new building?
• Mr. Demchak said the total square footage of the building that we have leased now is around 99,000 square feet and the square footage of the building that we are moving into is 60,000, but about 30,000 square feet of where we are now is storage space and they are going to break that off into off site leased warehouse space that they have in Walden. They are moving about 70,000 square feet of production space into 60,000 square feet that is in the building and they can do that fairly easily by taking advantage of the clean slate and laying out their processes in a more efficient manner. They have an industrial engineering consultant that they are working with on the plan layout.
• Chairman Devitt asked if anyone else on the board had any questions? He then asked if anyone in the audience had any questions?
• John Revella, Manager for the Village of Walden said he knows that they requested relief from several different things, however he did not know what that means dollar wise, please explain that, as far as mortgage, sales and property taxes.
• Attorney Martell said and real property tax. Estimated sales and use tax exemption would be 20,300. Mortgage recording tax exemption, estimated, 13,125 and real property tax exemption, over the next ten years, you would be looking at 312,504, but there is no reduction in current. This number was arrived at by assuming, right now the building is assessed at let’s call it X and now you indicated 2.5 million, so the difference between where all of these taxes are going to come from, assumes that the assessment occurs on the day that they purchase it, which drives the current assessment to 2.5 million. He said that he wasn’t sure if that was actually going to happen, so it couldn’t be any higher than this, but it could certainly be lower; the savings. Whatever is being collected on that property right now by way of real property taxes, is going to remain constant and then start ticking up as the PILOT agreement gets into the 10%, 20%, 30%; 40.
• Mr. Revella asked what year that would start?
• Attorney Martell said he doesn’t have the UTEP in front of him. What they are doing right now is they are completing a matrix for the board and they will determine where it fits. It is a requested 10 year PILOT and you will probably see an increase in year two. He said he would send Mr. Revella a copy of the UTEP, so he has it as well.
• Chairman Devitt said if there are no further questions, he would entertain a motion to close the public hearing.
• Member Hayes motioned to close the Polich Tallix, Inc. Public Hearing, seconded by First Vice-Chairman Williams. All in favor, all ayes, motion carried.
• Chairman Devitt said there are two Resolutions and the first is the SEQR Resolution, Type II Action for the Polich Tallix, INC. project. He asked the board if they all had a chance to review the document?
• The IDA members responded yes.
• Attorney Martell said this is a Type II action, it is a renovation of a building’s inside and there are no additions to the exterior and it is sort of ignored for SEQR purposes as a non-significant action.
• Chairman Devitt said he would entertain a motion to approve the Resolution.
• Member Hayes motioned to adopt the SEQR Resolution Type II Action for the Polich Tallix, INC. project, seconded by Second Vice-Chairman Rainaldi. All in favor, all ayes, motion carried.
• Chairman Devitt said the second Resolution is for the approval of the Polich Tallix, INC. project; that everyone has received.
• Attorney Martell said for the record, he would point out that the matrix is being completed by the company now and they are requesting a ten year PILOT and you can approve the entire transaction, but what will be the real property tax exemption is going to have to be consistent with the UTEP and they will want to see what the matrix says.
• First Vice Chairman Williams motioned to adopt the Approving Resolution for the Polich Tallix, INC. project, seconded by Second Vice-Chairman Rainaldi. All in favor, all ayes, motion carried.
• Member Hayes asked Mr. Demchak when they planned on getting started?
• Mr. Demchak said they are scheduled to close the end of February and are starting renovations right away. The moving in is a little tougher to nail down right now, but maybe in 5 or 6 months.

Treasurer’s Reports

• Member Jennings reviewed the August, September, October, November and December 2016 and the January 2017 Treasurer’s Reports, that she had previously prepared.
• Member Hayes motioned to accept the Treasurer’s Reports as presented by Member Jennings, seconded by Second Vice Chairman Rainaldi. All in favor, all ayes, motion carried.

Reorganization of the IDA

• Attorney Martell said that he usually would bring a written Resolution, however he can paper it after the fact. If everyone is comfortable in their current positions on both boards and knowing that they haven’t made any policy changes and the law hasn’t required any policy changes, the board can adopt the same slate that they have right now. There would be the same membership on the Audit, Governance and same positions as the named members hold and then the board can vote by roll, all in favor and then he can send a Resolution indicating there are no changes to the policies and positions; if everyone is happy doing that.
• Chairman Devitt motioned for the slate of the memberships and positions of the Members of the IDA to remain the same, seconded by Second Vice Chairman Rainaldi. All in favor, all ayes, motion carried.

Approval of the November 28, 2016 IDA Meeting Minutes

• First Vice Chairman Williams motioned to accept the November 28, 2016 meeting minutes as presented, seconded by Member Hayes. All in favor, all ayes, motion carried.
• First Vice Chairman Williams noted that on the January 9th, 2017 notes that his name would need to be added as being absent that evening.

Chairman Devitt motioned to adjourn the meeting, seconded by Second Vice-Chairman Rainaldi. All in favor, all ayes, motion carried.

The next IDA meeting is scheduled for Monday, March 13, 2017 at 5:30 p.m.