TOWN OF HEMPSTEAD INDUSTRIAL DEVELOPMENT AGENCY
ANNUAL ORGANIZATIONALBOARD MEETING
JANUARY 26, 2011, 9:00 a.m.
OLD COURTHOUSE, 350 FRONT STREET, HEMPSTEAD

Agenda:  Presentation by Avalon Bay, Bank Street, Rockville Centre – 9:15 a.m. presentation, Consideration of an Inducement for Lakewood Ranch Estates LLC, 633 Eagle Avenue, West Hempstead – 9:45 a.m. presentation, Consideration of an Authorizing Resolution for Optimum Solutions Corp., 148 East Sunrise Highway, Valley Stream, Consideration of an Amended Resolution to change the name of 303 Main Residential to Main 303 LLC (303 Main Street, Hempstead), Consideration of a Consent for a Refunding for Rose Fence, 215 Buffalo Avenue, Freeport, Consideration of Termination of Magna Care, Consideration of an Authorizing Resolution for Equity One, 900 Old Country Road, Westbury, Consideration of a Refunding Consent for 590-600 Fulton Avenue, Hempstead, Consideration of a Refunding Consent and Lease Term Extension for AG Metropolitan, 1000 Stewart Avenue and 550 Endo Boulevard, Garden City, Consideration of a Ratifying and Confirming Consent for Refinancing of Lighthouse 60 LP, 60 Hempstead Avenue, West Hempstead, Executive Directors Report, Discussion relating to PILOT Payments for 5th Avenue Chocolate, IEAH, and Zomick’s, Update on Benefits for JDM Long Island LLC, 175 Fulton Avenue, Hempstead, New York, Consideration of a Resolution to enter into an agreement with Tom Conoscenti Associates RE: Cost Benefit Analysis (tabled from December), Consideration of a Resolution to renew the Agency’s membership with Long Island Association, Appointment of Officers for 2011, Appointment of Agency Counsel, Appointment of Bond/Transaction Counsel, Re-Adoption of the Code of Ethics, Consideration of the 2011 Construction Wage Policy, Consideration of Salary Increases for the Executive Director, Deputy Executive Director, Agency Administrator, Deputy Financial Officer, and Deputy Agency Administrator, Consideration and Adoption of the Minutes of December 15, 2010, Report of the Treasurer, Appointment of Agency Committees.

Those in attendance: 	Ted Sasso, Chairman
			Paul Conte, Vice Chairman
			Jonathan Kohan, Treasurer
Al D’Agostino, Secretary 
			Danny Grodotzke, Member

Also in attendance:	John E. Ryan, Agency Counsel 
William F. Weir, Nixon Peabody
Frederick E. Parola, Executive Director/CEO
Edie M. Longo, Deputy Executive Director/CFO
                                    	Arlyn Eames, Deputy Financial Officer
			Michael Lodato, Deputy Agency Administrator                        
Gene Turner, Consultant

Absent:			Ari Brown, Member
			Lorraine Rhoads, Agency Administrator
						
The meeting was called to order at 9:18 a.m.

Avalon Bay:  Avalon Bay Communities Inc. is an existing IDA Project located at 80-100 Banks Avenue in the Village of Rockville Centre.  The project includes construction of a 349-unit apartment complex consisting of two three-story buildings with parking, for a total of 425,000 square feet on 7.1 acres.  The issue has been raised by the local labor unions as to whether or not the project has been using local contractors at the construction site.  As per the lease agreement, Avalon Bay is required use reasonable best efforts to ensure that 90% of workers must come from local labor. In addition, 90% of the construction and building materials must come from local businesses.  (“Local” is defined as Nassau and Suffolk counties.) 

The Board invited both Avalon Bay and representatives from the labor unions to voice their concerns to the Board.  Michael Faltischek (Ruskin, Moscou, Faltischeck), counsel to Avalon Bay, addressed the Board first.  He stated that Avalon Bay Communities has used “reasonable best efforts” to achieve the projected 90% use of local labor and materials requirement.  However, they have only been able to reach approximately 60%.  Matt Whalen of Avalon Bay also addressed the Board.  Mr. Whalen explained that the project is approximately 31% complete.  He reiterated that although the expected goal was to reach the 90%, due to the competitive bids they received, only approximately 60% has been achieved, and they hope to increase that to approximately 70%, as the project proceeds.

Jim Castellane, from the Nassau Suffolk Building and Construction Trade Council, 
was next to address the Board.  He expressed the labor unions concern that Avalon Bay wasn’t using the 90% local labor and materials as required by their agreement with the IDA.   Other representatives of local labor who addressed the Board were Jack Majkut, IBW Union Local 25, Kevin Connors, President, Nassau Sheet Metal Workers Union, and Art Gipson, Business Agent for the UA Plumbers Union Local 200, each of whom expressed strong concerns that even the 60% compliance of local labor and materials are not being met. Mr. Majkut asked the Board to revisit the issue of benefits and revise or rescind based upon their findings.  Mr. Gipson said that, after visits to the project site, he observed multiple out-of-state license plates. Mr. Gipson requested that the IDA obtain sales tax exemption forms for all contractors and sub-contractors working for Avalon Bay on this project, as well as all pertinent payroll records and contracts.

Two contractors who won bids for the Avalon Bay project in Rockville Centre spoke about the great working relationship they have with Avalon Bay They were, Artie Cipoletti of 
DaVinci Construction, Wantagh, NY, and Jim Tully of Hampton Drainage, Patchogue, NY.

Ted Sasso thanked the representatives for their comments and assured all in attendance that Board members will consider all of the opinions from both sides of the issue.  Avalon Bay had previously been asked by the IDA to submit all sales tax exemption forms as part of the Agency’s annual compliance review as required by New York State PAAA law.  The Board requested that all documentation relating to this issue be submitted to the Agency as soon as possible for Board evaluation.  

Lakewood Ranch Estates LLC:  Meeka Levin, Esq. from Ruskin, Moscou, and Faltischeck, made a presentation to the Board on Lakewood Ranch Estates LLC.  The project, to be located at 313 Eagle Avenue, West Hempstead, intends to be a one-of-a-kind, full-service horse facility.  The project will include construction of a new building that includes 7,167 square feet of mezzanine space and 1,576 square feet of office space, as wells as 3,240 square feet clubhouse and storage, and a 29,655 square foot arena.  The company has received all zoning approvals and is awaiting site plan approval.  They are seeking a Special Straight Lease, a 15 year PILOT Agreement, Sales Tax Exemption, and Mortgage Recording Tax Exemption.  Dan Grodotzke made a motion to adopt a Preliminary Inducement Resolution that is contingent upon site plan approval from the Town of Hempstead.  This motion was seconded by Paul Conte.  All were in favor.  Motion carried.

(Al D’Agostino was recused from the following matter and left the meeting room.)

Optimum Solutions Corporation: Michael Kerr from Optimum Solutions Corporation made a presentation to the Board at the meeting on November 17, 2010 on the expansion and relocation of their computer survey and software development company.  The project includes the construction of a two/three story, 18,600 square foot building with parking, located at 148-154 East Sunrise Highway, in the Village of Valley Stream. This property is currently vacant land. Required approvals have been received from the Village. Benefits will include a 15 year PILOT Agreement, Sales Tax Exemption, and Mortgage Recording Tax Exemption.  Jonathan Kohan made a motion to adopt an Authorizing Resolution for this project.  This motion was seconded by Ted Sasso.  All were in favor.  Motion carried.

(Al D’Agostino returned to the meeting room.)

303 Main Residential:  The Board was asked to consider an Amended Resolution, which allows for a change in name from 303 Main Residential to VIF II/Main 303 LLC.  Ted Sasso made a motion to adopt the Resolution consenting to the name change.  This motion was seconded by Jonathan Kohan.  All were in favor.  Motion carried.

Rose Fence:  Rose Fence, located at 215 Buffalo Avenue, Freeport requested a consent to refinance their existing mortgage, adding an additional approximately $450,000.00 for a total new mortgage of approximately $1,550,000.00. Jonathan Kohan made a motion to consent to the refinancing for this project. This motion was seconded by Ted Sasso.  All were in favor.  Motion carried.

Magna Care:  Due to the company’s relocation, Magna Care is no longer in compliance with regards to employment at the project site.  Jonathan Kohan made a motion to terminate this project.  This motion was seconded by Dan Grodotzke.  All were in favor.  Motion carried.

Equity One:  Equity One   This project includes the acquisition of the property at 900 Old Country Road in Westbury, and the construction of a 330,000 square foot shopping center.  The development will include a one-story building and a two-story building, both to be used for retail space.  Benefits for this project include a 15 year PILOT Agreement, Sales Tax Exemption, 
and Mortgage Recording Tax Exemption.  The PILOT Agreement years 10 through 15 are conditioned upon whether the company has met the employment requirement.  Ted Sasso made a motion to adopt an Authorizing Resolution for this project.  This motion was seconded by Paul Conte.  All were in favor.  Motion carried.

590-600 Fulton Avenue:  590-600 Realty Corp. requested a consent to refinance their mortgage for an additional $3,860,000.00, which will increase their total mortgage to $22,200,000.00.  Ted Sasso made a motion to consent to the refinancing of the company’s mortgage, as well as a mortgage recording tax exemption on the additional note.  This motion was seconded by Dan Grodotzke.  All were in favor.  Motion carried.

AG Metropolitan:  AG Metropolitan requested a consent to refinance the balance of their current mortgage for a total new mortgage of $32,000,000.00.  The company also requested an extension on the term of their current lease and PILOT Agreement through the year 2021.  Dan Grodotzke made a motion to consent to the refinancing of the company’s mortgage, and extend the term of the company’s lease and PILOT Agreement through December 31, 2021.   This motion was seconded by Jonathan Kohan.  All were in favor.  Motion carried.

Lighthouse 60:  Lighthouse 60, L.P. requested a consent for a refinancing of their existing mortgage of $5,500,000.00.  Ted Sasso made a motion to adopt a ratifying and confirming resolutions consenting to the refinancing of this project.  This motion was seconded by Paul Conte.  All were in favor.  Motion carried.

Executive Directors Report:  The Board was furnished with a copy of the Executive Director’s Report.  Fred Parola updated the Board on the progress of several projects, including West Hempstead Station LLC, which is expected to close in February 2011, and Angion, who is looking for a suitable property for their expansion.

Discussion relating to PILOT Payments for 5th Avenue Chocolatiere, IEAH, and Zomick’s: This item was tabled until the February 16, 2011 Board meeting.  

Tom Conoscenti Associates / Cost Benefit Analysis: Dan Grodotzke made a motion to adopt the Agreement between The Town of Hempstead IDA and Thomas Conoscenti and Associates Inc. in which the Agency will receive ten per cent of the gross proceeds upon use or sale of the Cost Benefit Analysis Program developed by both the Agency and Mr. Conoscenti.  This motion was seconded by Paul Conte.  All were in favor.  Motion carried.

LIA Membership for 2011: Ted Sasso made a motion to renew the IDA/LDC membership with the Long Island Association for 2011-12, for an amount not to exceed $402.00. This motion was seconded by Dan Grodotzke.  All were in favor.  Motion carried.

Appointment of Officers for 2011:  Ted Sasso made a motion to elect and appoint Chairman Theodore P. Sasso, Vice Chairman Paul Conte, Secretary Al D’Agostino, and Treasurer Jonathan Kohan as officers of the Town of Hempstead IDA.   This motion was seconded by Paul Conte.  All were in favor.  Motion carried.

Appointment of Agency Counsel:  Ted Sasso made a motion to renew the appointment of John E. Ryan as Agency Counsel to the IDA.  This motion was seconded by Dan Grodotzke.  All were in favor.  Motion carried.

Appointment of Bond/Transaction Counsel:  Jonathan Kohan made a motion to renew the appointment of Nixon Peabody as Bond and Transaction Counsel to the IDA.  This motion was seconded by Ted Sasso.  All were in favor.  Motion carried.

Code of Ethics: Dan Grodotzke made a motion to adopt the 2011 Town of Hempstead IDA Code of Ethics.  This motion was seconded by Ted Sasso.  All were in favor.  Motion carried.

2011 Construction Wage Policy: Ted Sasso made a motion to adopt  the 2011 Town of Hempstead IDA Construction Wage Policy.  This motion was seconded by Jonathan Kohan.  All were in favor.  Motion carried.

Salary Increases: Ted Sasso made a motion to adopt individual resolutions approving a 3.75% increase in the salaries for the Executive Director, Deputy Executive Director, Agency Administrator, Deputy Financial Officer, and Deputy Agency Administrator.
This motion was seconded by Dan Grodotzke.  All were in favor.  Motion carried.

Minutes:  Ted Sasso made a motion to adopt the Minutes of December 15, 2010 as presented to the Board.  This motion was seconded by Dan Grodotzke.  All were in favor.  Motion carried.

Report of the Treasurer:  The Board was furnished with copies of the Financial Statements and Expenditure List for December 14, 2010 – January 25, 2011. 

Appointment of Agency Committees: Jonathan Kohan made a motion to approve the 2011 Town of Hempstead IDA Committee Appointments.  This motion was seconded by Al D’Agostino.  All were in favor.  Motion carried.
 
With all business concluded, Ted Sasso made a motion to close the meeting at 10:57 a.m..  This motion was seconded by Paul Conte.  All were in favor.  Motion carried.

 
________________________________________
Al D’Agostino 
January 26, 2011