In The Matter Of: IDA - TOWN OF MONTGOMERY PUBLIC HEARING BLUEWATER I, LLC February 12, 2019 Min-U-Script® with Word Index BLUEWATER I, LLC 1 1 2 THE STATE OF NEW YORK : COUNTY OF ORANGE TOWN OF MONTGOMERY INDUSTRIAL DEVELOPMENT AGENCY 3 - - - - - - - - - - - - - - - - - - - - - - - X In the Matter of 4 5 6 BLUEWATER I, LLC 7 8 Pursuant to Section 859-a(2) of the 9 General Municipal Law of the State of New York - - - - - - - - - - - - - - - - - - - - - - - X 10 DATE: February 12, 2019 11 TIME: 5:50 p.m. PLACE: Town of Montgomery 12 Town Hall 110 Bracken Road 13 Montgomery, NY 12549 14 15 BEFORE: ROBERT J. McLAUGHLIN Hearing Officer 16 677 Broadway, Suite 301 Albany, New York 12207 17 18 BOARD MEMBERS: RODNEY WINCHELL ANTHONY ZAMBROTTA 19 JEFFREY CRIST JOHN DICKINSON 20 MATTHEW STODDARD 21 ALSO PRESENT: SUZANNE HADDEN, Secretary 22 23 M-F REPORTING, INC. 9 Washington Square, First Floor 24 Washington Avenue Extension Albany, New York 12205 25 (518)478-7220 M-F Reporting, Inc. (518) 478-7220 MFReportingNY.com NOTICE OF PUBLIC HEARING ON PROPOSED PROJECT AND FINANCIAL ASSISTANCE RELATING THERETO Notice is hereby given that a public hearing pursuant to Section 859-a(2) of the General Municipal Law of the State of New York (the “Act”) will be held by the Town of Montgomery Industrial Development Agency (the “Agency”) on the 12th day of February, 2019 at 5:45 o’clock p.m., local time, at the office of the Agency located at 110 Bracken Road in the Town of Montgomery, Orange County, New York in connection with the following matters: Bluewater I LLC, a Delaware limited liability company (the “Company”), has presented an application (the “Application”) to the Agency, a copy of which Application is on file at the office of the Agency, requesting that the Agency consider undertaking a project (the “Project”) for the benefit of the Company, said Project consisting of the following: (A) (1) the acquisition of an interest in an approximately 187 acre parcel of land located at NYS Route 17K and 747, AKA 635 International Drive in the Town of Montgomery, Orange County, New York (tax map numbers 31-1-67; 31-1-65.22; 31-1-70.2 and 31-1-89) (collectively the “Land”), (2) the construction on the Land of an approximately 1,010,880 square foot facility with related site work and exterior improvements (the “Facility”), and (3) the acquisition and installation therein and thereon of related fixtures, machinery, equipment and other personal property (collectively, the “Equipment”), all of the foregoing to constitute a warehouse/distribution facility (the Land, the Facility and the Equipment being collectively referred to as the “Project Facility”); (B) the granting of certain “financial assistance” (within the meaning of Section 854(14) of the Act) with respect to the foregoing, including potential exemptions from certain sales and use taxes, real property taxes, real estate transfer taxes and mortgage recording taxes (collectively, the “Financial Assistance”); and (C) the lease (with an obligation to purchase) or sale of the Project Facility to the Company or such other person(s) or entities as may be designated by the Company and agreed upon by the Agency. The Agency is considering whether (A) to undertake the Project, and (B) to provide certain exemptions from taxation with respect to the Project, including (1) exemption from mortgage recording taxes with respect to any documents, if any, recorded by the Agency with respect to the Project in the office of the County Clerk of Orange County, New York or elsewhere, (2) exemption from deed transfer taxes on any real estate transfers, if any, with respect to the Project, (3) exemption from sales taxes relating to the acquisition, construction, renovation and installation of the Project Facility, and (4) in the event that the Project Facility would be subject to real property taxation if owned by the Company but shall be deemed exempt from real property taxation due to the involvement of the Agency therewith, exemption from real property taxes (but not including special assessments and special ad valorem levies), if any, with respect to the Project Facility, subject to the obligation of the Company to make payments in lieu of taxes with respect to the Project Facility. If any portion of the Financial Assistance to be granted by the Agency with respect to the Project is not consistent with the Agency’s uniform tax exemption policy, the Agency will follow the procedures for deviation from such policy set forth in Section 874(4) of the Act prior to granting such portion of the Financial Assistance. If the Agency determines to proceed with the Project, the Project Facility will be acquired, constructed, reconstructed and installed by the Agency and will be leased (with an obligation to purchase) or sold by the Agency to the Company or its designee pursuant to a project agreement (the “Agreement”) requiring that the Company or its designee make certain payments to the Agency. The Agency has not yet made a determination pursuant to Article 8 of the Environmental Conservation Law (the “SEQR Act”) regarding the potential environmental impact of the Project. 048960.00017 Business 18014078v2 The Agency will at said time and place hear all persons with views on either the location and nature of the proposed Project, or the Financial Assistance being contemplated by the Agency in connection with the proposed Project. A copy of the Application filed by the Company with the Agency with respect to the Project, including an analysis of the costs and benefits of the Project, is available for public inspection during business hours at the offices of the Agency. A transcript or summary report of the hearing will be made available to the members of the Agency. Additional information can be obtained from, and written comments may be addressed to: Joseph Joy, Chief Executive Officer, Town of Montgomery Industrial Development Agency, 110 Bracken Road, Montgomery, New York 12549; Telephone: 845-457-2600. Dated: January ____, 2019. TOWN OF MONTGOMERY INDUSTRIAL DEVELOPMENT AGENCY BY:_________________________________________ Joseph Joy, Chief Executive Officer - 2 - 048960.00017 Business 18014078v2 BLUEWATER I, LLC 2 1 2 HEARING OFFICER McLAUGHLIN: Good 3 evening. Once again, my name is Robert J. 4 McLaughlin, I am Counsel to the Town of 5 Montgomery Industrial Development Agency. 6 Tonight I am also acting as the Hearing 7 Officer for this public hearing in connection 8 with the project that I'll describe in a 9 moment. 10 This public hearing is to allow 11 citizens to make a statement for the record 12 relating to the involvement of the Agency 13 with respect to a project for the benefit of 14 Bluewater I, LLC, a State of Delaware Limited 15 Liability Company. 16 The proposed project consists of the 17 following: the acquisition of an interest in 18 approximately 187 acres of land located at 19 New York State Route 17K and 747, also known 20 as 635 International Drive, in the Town of 21 Montgomery, Orange County, New York. The 22 project also consists of the 23 construction on such land of an approximate 24 1,010,880 square foot facility with related 25 site work and exterior improvements, the M-F Reporting, Inc. (518) 478-7220 MFReportingNY.com BLUEWATER I, LLC 3 1 2 acquisition and installation therein and 3 thereon of related fixtures, machinery, 4 equipment and other personal property, all of 5 the foregoing to constitute a warehouse/ 6 distribution facility and known as, for 7 purposes of this hearing, the project 8 facility, the granting of certain financial 9 assistance within the meaning of Section 10 854-14 of the Industrial Development Agency 11 Act with respect to the foregoing, including 12 potential exemptions from certain sales and 13 use taxes, real property taxes, real estate 14 transfer taxes and mortgage recording taxes, 15 collectively referred to for this hearing as 16 financial assistance. And finally, the lease 17 or sale of the project facility to the 18 company or such other persons or entities as 19 may be designated by the company and agreed 20 upon by the Agency. 21 I intend to provide general 22 information on the Agency's general authority 23 and public purpose to provide assistance to 24 the proposed project. I will then open the 25 public comment period to receive comments M-F Reporting, Inc. (518) 478-7220 MFReportingNY.com BLUEWATER I, LLC 4 1 2 from all who are present and wish to comment 3 on either the proposed project or the 4 financial assistance contemplated by the 5 Agency in connection with the proposed 6 project. 7 By way of background, the provisions 8 of Chapter 1034 of the Laws of 1969 of the 9 State of New York created Industrial 10 Development Agencies who are authorized under 11 such act to promote, develop, encourage and 12 assist in the acquiring, constructing, 13 reconstructing, improving, maintaining and 14 equipping and furnishing of manufacturing, 15 warehousing, research, commercial and 16 industrial facilities, among other things. 17 Pursuant to section 859 of the Act, 18 prior to the Agency providing any financial 19 assistance of more than $100,000 to any 20 particular project, the Agency, among other 21 things, must hold a public hearing pursuant 22 to Section 859 of the Act with respect to the 23 project. Since the proposed financial 24 assistance to be provided by the Agency with 25 respect to the proposed project may exceed M-F Reporting, Inc. (518) 478-7220 MFReportingNY.com BLUEWATER I, LLC 5 1 2 $100,000, prior to the providing of any such 3 financial assistance the Agency must hold a 4 public hearing on the nature and location of 5 the project facility and the proposed 6 financial assistance to be provided by the 7 Agency with respect to the proposed project.