Mr. Walsh asked for a motion to approve the minutes. Mr. Ashkin made a motion to approve the minutes from the May 21, 2010 meeting. Mr. Mankiewicz seconded the motion. THE BOARD UNANIMOUSLY APPROVED THE MINUTES TO THE MEETING OF MAY 21, 2010.
V. Correspondence –
Mr. Walsh acknowledged receipt of correspondence from the NYS Assembly dated June 30, 2010 regarding policies on the payment of contingent compensation and provided a copy of the letter to the Board members present. Mr. Walsh noted that SEDCO does not pay compensation of any type and that he will respond to the letter on behalf of the Board.
VI. Financial Report –
Mary Vossler noted that she had recently sent to the Board via e‐mail SEDCO’s interim financial statements through June 30, 2010. She also said that Green & Seifter CPAs had finished a field audit in preparation for the 2009 SEDCO Independent Audit, and were working to incorporate information on the sale of Deys Centennial Plaza into it as the final step to completion.
Ms. Vossler asked if the Board had any questions on either topic. Mr. Ashkin asked if a conflict of interest existed in preparing the SEDCO audit in light of the recent merger of Patrick Associates (SEDCO’s former independent auditor) with Green & Seifter, in consideration of the fact that members of Green & Seifter were also members of Deys Limited Partnership. Ms. Vossler responded that she had looked into this and as the limited partners in the partnership had no managerial authority, she was satisfied that there was no conflict of interest. She also noted that she had received an opinion letter on this topic from John Patrick who confirmed there was no conflict of interest in this matter. There were no other questions.
VI. 215 West Fayette St. Associates LLC –
Ms. DeLaney told the Board that SEDCO had received a request from 215 West Fayette St. Associates LLC to provide a $250,000 standby letter of credit for a project proposed for 215 W. Fayette St, the former Hurbson Office Supply Bldg.. The developer and owner John (Skip) Cerio is planning a total renovation of the building which at completion will contain 14 market rate apartments and 4,382 sq. ft. of commercial space. Total project cost is $5,032,377.00 and the funding is in place. Both construction and permanent financing for the project has been secured through Community Preservation Corporation. The lender however is requiring as a contingency that the developer secure a Letter of Credit to be in place during construction. The Letter of Credit will be released at the time the permanent financing goes into effect. SEDCO will charge the Borrower a 1% fee annually due at closing for use of the funds. Ms. Delaney said that the SEDCO Loan Committee, with staff recommendation, approved the loan in May with contingencies which she outlined and will be required to be met prior to closing. Ms. DeLaney also noted that the project had been awarded a Restore NY grant in the amount of $1,300,000.00, which the City supported. Mr. Walsh said that he did not expect that SEDCO would provide funding of this type in the future but noted that this project was worthy of the Board’s support as it would result in the redevelopment of one of the last vacant buildings in the Armory Square District while advancing the City’s goal of creating market rate apartments in downtown.