Page 1 of 2 MINUTES OF THE BOARD OF DIRECTORS OF ... - ECIDA
Page 1 of 2 MINUTES OF THE BOARD OF DIRECTORS OF ... - ECIDA
Page 1 of 2 MINUTES OF THE BOARD OF DIRECTORS OF ... - ECIDA
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<strong>MINUTES</strong> <strong>OF</strong> <strong>THE</strong> <strong>BOARD</strong> <strong>OF</strong> <strong>DIRECTORS</strong> <strong>OF</strong> <strong>THE</strong>BUFFALO AND ERIE COUNTY REGIONALDEVELOPMENT CORPORATION(RDC)DATE AND PLACE:PRESENT:EXCUSED:O<strong>THE</strong>RS PRESENT:November 19, 2012, at the Erie County Industrial DevelopmentAgency, 143 Genesee Street, Buffalo, New York 14203Raymond L. Carr, Hon. Anthony F. Caruana, James F. Doherty, Hon.Richard A. Fontana, Hon. Betty Jean Grant, Michael H<strong>of</strong>fert, Hon.Mary F. Holtz, Chris Johnston, Hon. John J. LaFalce, Richard Lipsitz,Jr., Hon. Thomas A. Loughran, Brenda W. McDuffie, Frank B.Mesiah, Hon. Mark C. Poloncarz and Dr. Andrew J. RudnickHon. Byron W. Brown, Dennis Elsenbeck, Hon. Barry Weinstein andHoward A. ZemskyAl Culliton, Chief Operating Officer; John Cappellino, Executive VicePresident; Andrew Schoeppich, Treasurer; Karen M. Fiala, AssistantTreasurer; Theresa Carpenter, Assistant Treasurer; Gerald Manhard,Loan Manager; Dawn Boudreau, Compliance Officer; Robert G.Murray, Assistant Secretary and Pietra Lettieri, Assistant SecretaryThere being a quorum present at 9:43 a.m., the Meeting <strong>of</strong> the Board <strong>of</strong> Directors <strong>of</strong> theBuffalo and Erie County Regional Development Corporation was called to order.<strong>MINUTES</strong>The minutes <strong>of</strong> the October 15, 2012 Meeting <strong>of</strong> the Board <strong>of</strong> Directors were presented,and upon motion made by Ms. McDuffie, and seconded by Ms. Grant, approval <strong>of</strong> the minuteswas unanimously carried.REPORTS / ACTION ITEMS / INFORMATION ITEMSFinancial Report. Ms. Carpenter presented the Financial Report for the month <strong>of</strong>October, 2012, noting net income for the month <strong>of</strong> approximately $20,000 and that the RDC hasa year-to-date net loss <strong>of</strong> approximately $175,000, primarily related to loan loss provisions.There being no comments, Congressman LaFalce directed that the Financial Report be receivedand filed.2012 Closing Schedule. Mr. Manhard reviewed the 2012 loan closing schedule.Congressman LaFalce queried as to how the 2012 number <strong>of</strong> loan closings compares to prioryear loan closing numbers. Mr. Manhard stated that the RDC has closed fewer loans this year, incomparison to prior years, due to more stringent underwriting and due diligence efforts. Mr.Culliton stressed that in a departure from the past, the RDC is closing more microloans for loansunder $35,000, such that 53% <strong>of</strong> the total RDC loan portfolio consists <strong>of</strong> microloans. Because <strong>of</strong>this, the approved 2013 budget provides for the hiring <strong>of</strong> a new loan manager position because<strong>Page</strong> 1 <strong>of</strong> 2
micro lending requires a more hands-on approach and monitoring than traditional RDC lending.Congressman LaFalce asked if he could receive an explanation <strong>of</strong> the differences between thenew Grow Erie Fund and the existing RDC loan fund. Mr. Culliton noted that the RDC loanfund requires implementation <strong>of</strong> Davis-Bacon prevailing wage requirements but that the GrowErie Fund will not have a prevailing wage requirement, that the Grow Erie Fund will beunderwritten by NDC specialists, and is geared to allow for more aggressive lending projects.There being no further comments, Congressman LaFalce directed that the report be received andfiled.Disaster Relief Loan Program. Mr. Culliton provided board members with some generalbackground on the ability <strong>of</strong> the RDC to develop various new strategic loans assistance programsoutside <strong>of</strong> the existing RDC loan administration plan. In particular, he noted that on behalf <strong>of</strong>the County Executive, Deputy County Executive Tobe, the Erie County Industrial developmentAgency, the RDC, the Buffalo Niagara Partnership, and the Buffalo Niagara Enterprise met toidentify financial assistance opportunities for businesses in Erie County that have been harmedby Hurricane Sandy. As a result, an opportunity was identified to lend money to businesses inErie County – such as vendors, suppliers, etc…, that have customers in the Hurricane Sandystorm damage area, and as such, are experiencing difficulty collecting on accounts from suchclients. Mr. Poloncarz provided additional background noting that because no disasterdeclaration was made in Erie County, no disaster help would otherwise be available. Mr.Culliton noted that larger businesses can better handle disaster related issues, such that thislending initiative is aimed to help smaller businesses in Erie County. Mr. Culliton furtherdiscussed that this loan initiative is for any declared disaster, covering disasters both in and out<strong>of</strong> Erie County, and is not specifically being created only for Hurricane Sandy. Mr. Culliton thenreviewed the specific lending terms and conditions. Upon motion by Mr. Poloncarz andseconded by Mr. Lipsitz, the Disaster Relief Loan Program was approved.There being no further business, upon motion made by Mr. Loughran, seconded by Mr.Poloncarz, and unanimously carried, the meeting was adjourned at 10:07 a.m.Dated: November 19, 2012____________________________________Robert G. Murray, Assistant Secretary241474 1931295v1<strong>Page</strong> 2 <strong>of</strong> 2
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