Auburn Economic Development Zone Board
May 13, 2004
Present: Tom Ganey, Arlene Ryan, Michael Trapani, Ann Kubarek, Walter Dungey. Guest: Jocelyn Van Gelder.
Excused: Sally Jo Widmer, Tom McNabb, Judy Wright.
Staff: Cynthia Aikman, Alicia McKeen
Meeting was called to order. Motion to accept February 10, 2004 meeting minutes made by Mike Trapani, seconded by Arlene Ryan. All members vote approval. Motion carried.
Consideration of loan allocation from SZCC.
Cynthia explained that the Zone Capital Program had pooled funds and changed the rate and terms their loans. There was a certain time frame and not all zones used the money. Auburn has a remaining $300,000 allocated. Limits are $200,000 for manufacturing and $75,000 for working capital. Dr. Gush is buying Dr. Iocovino’s practice on James St. Will be hiring 2 PTE’s. The business is a professional corporation (PC) and can minimize NYS Income Tax. Dr. Gus would like a $250,000 loan. He was told he could get an SBA loan, EZ not needed. He does not want to pay SBA fees. There is $250,00 loaned out from the allocation to Auburn’s Zone. Interest rates are up so there will probably be more deals.
Tom Ganey said that we are looking at bigger deals, 250K not much, 500K ok – case by case review.
Cynthia suggested $75,000 for working capital and $100,000 for companies retaining jobs keeping the maximum for manufacturers creating jobs at $200,000.
Walt Dungey made a motion to approve setting the loan maximums for the Zone Capital Corp at $75,000 for working capital, $100,000 for retention. Seconded by Ann Kubarek. Motion passed unanimously.
Cynthia asked for a recommended amount to offer Dr. Gush if requested.
Tom Ganey recommended $100,000.
Motion by Mike Trapani to offer Dr. Gush $100,000 of Zone Capital loan funds. Seconded by Arlene Ryan. Motion carried.
EZ Program
Cynthia outlined the current status of the Zones Program. She attended Assembly Hearings in Albany & provided written testimony. Governor Pataki wants to create super zones of 4 sq miles not including streets, sidewalks and limited to distressed tract. Tracts touching Owens/NFR not in, if certified and using – grand fathered. Auburn’s acreage is essentially allocated. Auburn Metal Processing is buying NFR – will be certified and continue in zone. Countywide Zones have problems with this proposal. The zones need to focus and stand together to keep the program intact. Program needs to generate jobs to offset cost. Refers to news pamphlet in package. State complaining most about zone certified businesses not producing jobs but getting money
back. In Auburn, Tony Piccolo is a certified business owner. He has invested ½ again the purchase of the building and has added more than one employee. Without investment buildings would be in disrepair. Over 200 people are employed in his building by businesses that are not certified. So, the State does not count these jobs. George Kerstetter, since certification, has made significant investment in the buildings he owns. Investment in distressed areas is important. With new legislation, the zones have been asked to prepare and submit EZ development policy. Bulk is from 1st policy of CCSEDP. Describes kind of zone,. If boundary amendment in future. If no benefits used for 9 months can be removes and reallocated. No certification for delinquencies in all taxes or has code violations within last 5 years. Would like to have approval on policy to present to Council. Will involve more City to
help manage.
Made by Mike Trapani to accept and recommend for approval by City Council, the Auburn Zone Development Policy as presented, Seconded by Arlene Ryan. Motion carried.
Cynthia point out key clusters on 2nd page and said that she would bring the Development policy in yearly for review/update. She went on to discuss a session provided by the SBA at Holiday Inn 5/25/04. They made a presentation about HUB Zones and the benefits. Our Empire Zone Distressed census tract is Auburn’s HUB Zone area. If 35% of the employees of a business located in this zone reside in the zone, then the company can receive special consideration on bids for government contracts.
Joyce Van Gelder from DOL said that there is money available for grants, small manufacturing 99 employees or less. Reimbursed for training expenses.
Ann Kubarek – fliers for 6/16/ event. Cayuga Cortland strategies planning area to focus training on global economic trends and how related to local economy at Springside Inn. Training money available to employers.
Meeting closed.
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