Auburn Economic Development Zone Board
October 9, 2003
Present: Tom McNabb, Arlene Ryan, Steve Vincent, Michael Trapani, Ann Kubarek.
Excused: Sally Jo Widmer, Tom Ganey.
Staff: Cynthia Aikman, Alicia McKeen
Guest: Monica DePalma, Walter Dungey.
Meeting was called to order by Steve Vincent. Motion to accept September meeting minutes made by Arlene Ryan, seconded by Mike Trapani. All members voted to approve. Motion carried.
DePalma Masonry
Monica DePalma summarized her request for a loan through the Zone Capital Corporation. DePalma Masonry wishes to purchase 172 State St. for $46,000 and property on Cottage St. ($4,000) for access. Cayuga Lake National Bank has given commitment for financing. She has 2 commitments for office leasing that will cover the majority of the monthly costs of the loans. The masonry business will be in the rear of the building. The building will be renovated to suit the needs of the business. Requesting $30,000.00 for project from ZCC.
Motion to approve financing of $30,000.00 made by Mike Trapani, seconded by Arlene Ryan. Motion passed unanimously.
Zone Capital Corporation Resolution
Cynthia Aikman presented a resolution to pool Auburn Zone Capital funds with the other state zones, creating a
$16 million loan pool. Operations will remain the same. Four years ago the State Zone Program exercised a benefit in the law allowing zones to raise a pool of loan money. Auburn EDZ now has $500,000.00 available. $175,000.00 has been loaned. There is $366,500.00 left. At the end of the year the maintenance of the loan will change; Zones who have never used this resource will under the current rules no longer have access to the fund. A value in the program is that what is good for the entire zone is good for each individual zone and all zones should have accessibility, especially since it is now so difficult to get a loan. The loans are offered for 10 year terms, 1st 3 years at 5%, remaining 7 years at 7%. The resolution indicates that $200,000.00 for each zone is set
aside so no one zone is left without access to money.
Steve Vincent – Are there are limit set ups so it is accessible to all?
Cindy – $300,000.00 is the max amount of each loan.
Motion made by Arlene Ryan to pass the resolution as presented, seconded by Mike Trapani. All members voted to approve. Motion carried.
Zones Update
Cindy said that the current legislation expires 7/31/04. There are recent changes, new definition of business, the boundary amendment rules to comply with 75/25. Sheldon Silver’s proposal is to require the zone not to have the 25% and revert to 3 islands. Once designated the business will be decertified if goals are not met. The legislation changes the zone designation board at the state level to zone control. Zone and budget office does not know actual cost. Auburn no longer has a distressed tract by the state definition. Under the Federal definition, Auburn has 5 distressed tracts. Legislative hearings begin in November. Businesses who have been helped by the program are drafting letters to reflect this. Audits and hearings are done
when a program sunsets.
On September 17th a session on energy was conducted. Businesses from three counties are trying to get an appointment with Senator Nozzolio to discuss energy issues. NYSEG tariff has been changed and approved.
Cynthia asked board members to share experiences. All Board members shared positive experience and confidence in the staff.
Cindy has also been asked to firm up a development policy and will be drafting a proposal.
Motion to adjourn made by Arlene Ryan, seconded by Mike Trapani. All members vote approval. Meeting adjourned.
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