WEBVTT 1 "jspaeth@cityofutica.com" (1048797696) 00:00:06.000 --> 00:00:09.689 Okay, call a meeting to order, um. 2 "jspaeth@cityofutica.com" (1048797696) 00:00:09.689 --> 00:00:15.599 Get the minutes out of the way I get a motion to approve the minutes of the August. 3 "jspaeth@cityofutica.com" (1048797696) 00:00:15.599 --> 00:00:19.319 Um, 4th, all in favor. Okay. 4 "jspaeth@cityofutica.com" (1048797696) 00:00:19.319 --> 00:00:23.520 Post promote, let's move right to the new business. 5 "jspaeth@cityofutica.com" (1048797696) 00:00:23.520 --> 00:00:34.500 So we have Matt is joining us today he is with representing the historical park apartments. 6 "jspaeth@cityofutica.com" (1048797696) 00:00:34.500 --> 00:00:52.050 Project is a roughly a 120 unit apartment complex that is located at 100 wrecker. Um, Matt is here to discuss the, the, uh, project and then to. 7 "jspaeth@cityofutica.com" (1048797696) 00:00:52.050 --> 00:00:55.920 Then to answer any questions that you may have. 8 "jspaeth@cityofutica.com" (1048797696) 00:00:55.920 --> 00:01:10.110 Uh, who just joined us is Matt wells from and King, um, he is going to walk us through the bond process, or at least a little bit of the applicability to this kind of project. 9 "jspaeth@cityofutica.com" (1048797696) 00:01:10.110 --> 00:01:15.840 So, Matt meet Matt wells and, um. 10 "jspaeth@cityofutica.com" (1048797696) 00:01:15.840 --> 00:01:20.189 Good morning Thank you very much for having. 11 "Matt Sislen" (2069751296) 00:01:20.189 --> 00:01:39.870 We're excited about historical park apartments, and some of the things that we're planning to do there right now, like, Jack mentioned, it's a 120, approximately 120 apartment building complex for seniors. 12 "Matt Sislen" (2069751296) 00:01:39.870 --> 00:01:55.020 That's supported by a federal, uh, section 8 contract meaning the federal government pays the large majority of the rent and folks who live there, uh, need to earn before below a certain level of income. Um. 13 "Matt Sislen" (2069751296) 00:01:55.020 --> 00:02:06.960 And they're living there that now, like, Jack mentioned, what we're planning is a renovation, uh, substantial renovation of historical park apartments, both to improve the building and. 14 "Matt Sislen" (2069751296) 00:02:06.960 --> 00:02:24.300 Improve the condition of residents living, but also improve the exterior of the building beautify it. 4 to 5 make sure it's strong enough to stand and. 15 "Matt Sislen" (2069751296) 00:02:24.300 --> 00:02:44.300 Contribute to kind of the downtown area, uh, in a positive aesthetic way as well as, um, secure the area, um, to ensure that, um, there isn't any bad activity, um, from the neighborhood. Uh, so we're. 16 "Matt Sislen" (2069751296) 00:02:44.300 --> 00:03:04.300 We're, we're excited about what we're doing in historical park. We're planning to put about 9Million dollars and renovation costs into the property, uh, which we feel is necessitated by the state of the property. Um, and we're using a significant amount of federal subsidy, uh, bringing federal. 17 "Matt Sislen" (2069751296) 00:03:04.300 --> 00:03:14.220 Subsidy into Utica in order to do. So, um, so we're excited. We're excited about what it can do for the community in terms of making it a nicer. 18 "Matt Sislen" (2069751296) 00:03:14.220 --> 00:03:22.350 Neighborhood to be around, um, in terms of making it a safer neighborhood to be around, um, in terms of contributing to. 19 "Matt Sislen" (2069751296) 00:03:22.350 --> 00:03:39.570 Um, you cannot continued economic activities supported by the property, both by employees at the property by vendors to the property and by short term construction workers in order to execute the 9 dollars 1Million renovation plan. 20 "Matt Sislen" (2069751296) 00:03:39.570 --> 00:03:43.350 Um, and so we're, we're really excited about. 21 "Matt Sislen" (2069751296) 00:03:43.350 --> 00:03:51.180 Our plan for historical park, and we think it'll be a good thing both for the property and the community at large. 22 "jspaeth@cityofutica.com" (1048797696) 00:03:54.416 --> 00:04:04.494 Talk a little bit about your why the interest in this building your track record with these types of projects what's your portfolio was like? Yeah, sure. 23 "Matt Sislen" (2069751296) 00:04:04.494 --> 00:04:17.580 So this type of building is exactly what we look for when we're looking for properties that we, we want to work on. Um, it's, you know, historically. 24 "Matt Sislen" (2069751296) 00:04:17.580 --> 00:04:37.580 Been managed under managed, it was managed by a kid, uh, previously who who really didn't know what he was doing. And it was kind of using my understanding was kind of using family money to try and be a real estate developer, but didn't quite have the expertise yet. And building had has fallen a little bit and disrepair as a result of that. 25 "Matt Sislen" (2069751296) 00:04:37.580 --> 00:04:41.309 Um, and so. 26 "Matt Sislen" (2069751296) 00:04:41.309 --> 00:05:01.309 When we see that, we know we can make a difference and we like the type of difference. We can make section 8 supported properties where we can use low. And federal, low income housing tax credits is an incredible, incredibly powerful way to affect change on a building. And a community. 27 "Matt Sislen" (2069751296) 00:05:01.309 --> 00:05:18.419 We have the ability to invest so much money as a result of the federal dollars. Um, and so that that gets us excited. You know, my business partner is from the upstate New York area. You grew up right outside of Albany. So not quite but he, he's. 28 "Matt Sislen" (2069751296) 00:05:18.419 --> 00:05:28.289 Bounce around Utica wit, um, Syracuse as a kid and he's, he. 29 "Matt Sislen" (2069751296) 00:05:28.289 --> 00:05:32.459 Is really fond of that part of the state. 30 "Matt Sislen" (2069751296) 00:05:32.459 --> 00:05:45.749 And is excited about, you know, contributing and and giving back to that part of the state. Um, and so we've got a number of properties in upstate New York that we're doing a very similar. 31 "Matt Sislen" (2069751296) 00:05:45.749 --> 00:05:50.399 We're executing on a bit very similar business plan. Um. 32 "Matt Sislen" (2069751296) 00:05:50.399 --> 00:05:58.859 And so using federal, low income housing, tax credits, often supported by section 8, federal, uh, operating subsidy. 33 "Matt Sislen" (2069751296) 00:05:58.859 --> 00:06:03.599 Where we can do a big renovation and affect change for residents in communities. 34 "jspaeth@cityofutica.com" (1048797696) 00:06:07.749 --> 00:06:12.359 Okay. 35 "jspaeth@cityofutica.com" (1048797696) 00:06:12.359 --> 00:06:15.509 Any questions from the group sorry? 36 "jspaeth@cityofutica.com" (1048797696) 00:06:15.509 --> 00:06:22.649 No, I'd like to hear from that. I have a question for Matt. Oh, he just jump ahead. 37 "jspaeth@cityofutica.com" (1048797696) 00:06:22.649 --> 00:06:28.592 That you want to walk through the buying process sure. 38 "Matt Wells" (383618304) 00:06:28.592 --> 00:06:47.779 And I'll let, uh, Matt and others weigh in. I, there's a layer of, as he was, uh, alluding to of the federal, low income housing tax credit. That will make this a little bit different than a than a typical street, uh, a bond transaction that you may be a more used to from time to time. 39 "Matt Wells" (383618304) 00:06:47.779 --> 00:07:07.779 Uh, because there's aspects of the financing that will, uh, involve a lot of compliance with the low income housing tax credit regulations that, uh, other attorneys and, and, uh, deal participants will, uh, be paying special attention to. But today you're being asked to adopt an inducement resolution to kind of. 40 "Matt Wells" (383618304) 00:07:07.779 --> 00:07:18.329 Take the 1st step and moving forward with a project that you think is appropriate for the NDA and and good for the community, et cetera. Uh, as you normally would um. 41 "Matt Wells" (383618304) 00:07:18.329 --> 00:07:38.329 You know, assuming that were to be adopted, we'd move forward with executing inducement agreement and then start to plan the process of putting together the typical documents you'd see in a, in a bond transaction, uh, bonded, venture installments, sale agreement. Um, in order to give the. 42 "Matt Wells" (383618304) 00:07:38.329 --> 00:07:56.999 The appropriate, uh, ownership interest in order to, uh, provide financial assistance, both in the, in the form of, uh, issuing, uh, tax exempt bonds as well as the other financial assistance that's in play mortgage, recording, tax, sales, sales, news, tax pilot, et cetera. Um. 43 "Matt Wells" (383618304) 00:07:56.999 --> 00:08:16.999 So, those things will all be happening in concert in terms of the bond deal, it would be an adventure installment sale agreement, and a pleasant assignment to a a bond trustee that would be involved. Um, you know, Matt can correct me. I think, uh, they've been working, uh, frequently with, uh, paper Sandler as an underwriting bank. 44 "Matt Wells" (383618304) 00:08:16.999 --> 00:08:25.409 Placement agent, I, I would suspect that that may be the case here just for, in terms of deal, knowledge and efficiency. Um. 45 "Matt Wells" (383618304) 00:08:25.409 --> 00:08:43.405 I think they would likely be placing these bonds privately in, in order to, uh, appeal to the right type of investor to take advantage of a low income housing tax credit. Um, and again, Matt, correct me if I'm if I'm miss speaking on any of this, um, you got it. 46 "Matt Sislen" (2069751296) 00:08:43.405 --> 00:08:46.261 Um, but, um, you know. 47 "Matt Wells" (383618304) 00:08:46.261 --> 00:08:53.189 That process would play out over over the course of, uh, you know, a couple months here or so. And, um. 48 "Matt Wells" (383618304) 00:08:53.189 --> 00:09:13.189 You know, the would eventually get back involved as we're moving forward and and understanding the deal parameters and and, uh, terms a little bit more closely and, and, uh, you know, would would, uh, meet at adopt a final authorizing resolution and bond resolution in order to ultimately, uh, authorize. 49 "Matt Wells" (383618304) 00:09:13.189 --> 00:09:32.069 The issue of bonds by the FDA, which again would be needed to have the state and local issuer, um, requirement of the Internal Revenue Code Matt, um, in order to issue tax exempt bonds. Uh, so that's where the comes in. And and what they're able to do. Um, you know, I don't. 50 "Matt Wells" (383618304) 00:09:32.069 --> 00:09:46.619 I don't know, I've worked with the in the past, but, uh, you know, bond deals Fridays are less frequent these days now that, uh, civic facility financing isn't available to. Uh, so, um. 51 "Matt Wells" (383618304) 00:09:46.619 --> 00:09:58.679 You know, I I don't know how many bad deals you're doing on a annual or or or other basis, but been happy to answer additional questions. This, this particular project does not involve a, uh. 52 "Matt Wells" (383618304) 00:09:58.679 --> 00:10:10.769 But not for profit, 500 so, you know, civic facility issue is not there. Um, but, uh, low income housing is a type of financing, um, that, uh, the. 53 "Matt Wells" (383618304) 00:10:10.769 --> 00:10:28.593 Can't do so long as you determine it's in your best interests and that this project is commercial in nature and and otherwise meets your expectations and what you've been, uh, doing doing on that front. Uh, yeah. Uh, in recent history. So. 54 "jspaeth@cityofutica.com" (1048797696) 00:10:28.593 --> 00:10:37.635 This line this is Linda. Um, your application indicated that you thought keybanc would be a bad purchaser is that changed? They may be. 55 "Matt Sislen" (2069751296) 00:10:37.635 --> 00:10:53.155 Purchaser we were, we haven't, you know, that doesn't really get solidified until just before. Uh, we, we close on the bonds typically in the process and so key bank may maybe a bond purchaser. They may not be okay. 56 "jspaeth@cityofutica.com" (1048797696) 00:10:53.155 --> 00:11:09.059 Um, just as a matter of disclosure, um, does represent key bank on certain things um, no idea whether they would do it on this. So I prepared a waiver in case that 1st, um, gives us a new disclosure. Thank you. 57 "Matt Sislen" (2069751296) 00:11:09.059 --> 00:11:12.120 So. 58 "jspaeth@cityofutica.com" (1048797696) 00:11:12.120 --> 00:11:31.369 The idea has not done, we have not done mostly the risk to the idea. At this point, it's the same spec, I mean, there's the, the standard indemnities, the documentation is longer, and it's more complicated number 1 because, um, certain things have to be met for the tax exemption as well as the tax credits. 59 "jspaeth@cityofutica.com" (1048797696) 00:11:31.369 --> 00:11:50.519 And there's generally a trustee involved because of the buyer purchasers. But otherwise, I mean, in terms of the protections in place for the, the standard identities, the special obligation language, all of that is the same as it is. And what you're used to, and the standard lease lease back. So there's just. 60 "jspaeth@cityofutica.com" (1048797696) 00:11:50.519 --> 00:11:54.029 A couple more layers because of the tax exemption. Okay. 61 "jspaeth@cityofutica.com" (1048797696) 00:11:54.029 --> 00:11:58.459 A couple of good times. Yeah. To the extent that there's the other financial assistance. 62 "Matt Wells" (383618304) 00:11:58.459 --> 00:12:03.599 Beyond the, uh, the taxis have bond, uh, assistance. 63 "Matt Wells" (383618304) 00:12:03.599 --> 00:12:11.489 You know, the documents would be identical to what you typically use for, uh, pilot and the, like, is Linda points out. 64 "jspaeth@cityofutica.com" (1048797696) 00:12:15.578 --> 00:12:25.949 Keep in mind the inducement similar to the lease lease back. The inducement kicks it off. It's the 1st official action. Mm. Hmm. There's a lot that has to happen. 65 "jspaeth@cityofutica.com" (1048797696) 00:12:25.949 --> 00:12:32.039 Between inducement and close, and that is where the lawyers have lots of. 66 "jspaeth@cityofutica.com" (1048797696) 00:12:32.039 --> 00:12:38.759 Really fun conference calls and go do documents and all of that. So, this is literally the 1st step, but. 67 "jspaeth@cityofutica.com" (1048797696) 00:12:38.759 --> 00:12:42.809 Masterson yes, mark. 68 "jspaeth@cityofutica.com" (1048797696) 00:12:42.809 --> 00:12:48.739 Who owns the property? Who's the owner of the property right now? 69 "Matt Sislen" (2069751296) 00:12:48.739 --> 00:12:52.469 Company is, uh. 70 "Matt Sislen" (2069751296) 00:12:52.469 --> 00:13:04.205 We know the folks who are selling the property, uh, it's, uh, business partners, uh, ex, business partners that my current business partner. Wh, what's. 71 "jspaeth@cityofutica.com" (1048797696) 00:13:04.205 --> 00:13:06.410 Her name. 72 "Matt Sislen" (2069751296) 00:13:06.410 --> 00:13:10.349 Let's see, I think the name is here in the application. 73 "jspaeth@cityofutica.com" (1048797696) 00:13:20.566 --> 00:13:26.889 H, it's people who who's behind it who are, who is it? 74 "Matt Sislen" (2069751296) 00:13:26.889 --> 00:13:30.346 I'm sorry, based on what. 75 "jspaeth@cityofutica.com" (1048797696) 00:13:30.346 --> 00:13:32.967 Seattle Washington they are. 76 "Matt Sislen" (2069751296) 00:13:32.967 --> 00:13:35.689 [...]. 77 "jspaeth@cityofutica.com" (1048797696) 00:13:35.689 --> 00:13:38.607 Found it believe. 78 "Matt Sislen" (2069751296) 00:13:38.607 --> 00:13:42.064 Around a year. Okay. 79 "jspaeth@cityofutica.com" (1048797696) 00:13:42.064 --> 00:13:47.409 And it's being managed by, uh, a company in Massachusetts. Is that right? That's right. 80 "Matt Sislen" (2069751296) 00:13:47.409 --> 00:14:00.119 Smart management is very active throughout New England, and also in New York so that they manage all the properties we're looking at, and upstate New York. And so that would be. 81 "Matt Sislen" (2069751296) 00:14:00.119 --> 00:14:12.286 Uh, at least, I think 6 for us, uh, among, and I think they have other, um, they have other clients as well. Okay. I'll. 82 "jspaeth@cityofutica.com" (1048797696) 00:14:12.286 --> 00:14:16.185 How long have they been managing that property? 83 "Matt Sislen" (2069751296) 00:14:16.185 --> 00:14:19.499 About this, however, about a year. 84 "jspaeth@cityofutica.com" (1048797696) 00:14:22.786 --> 00:14:28.089 The kid you were talking about earlier they own that mismanaged it. Yeah, it was. 85 "Matt Sislen" (2069751296) 00:14:28.089 --> 00:14:34.199 The prior owner to, um, L. H. H. P. associates I'm I'm sorry I'm not. 86 "Matt Sislen" (2069751296) 00:14:34.199 --> 00:14:49.417 Remember the name exactly. The current owner uh, I don't really necessarily want to call him out by name, but he was a kid who was, you know, uh, 2425 years old and, uh, inexperienced, and was using something. 87 "jspaeth@cityofutica.com" (1048797696) 00:14:49.417 --> 00:14:52.081 All of us was even. 88 "Matt Sislen" (2069751296) 00:14:52.081 --> 00:15:06.889 Family money, I'm trying to do good bias family. Uh, and and this is a very technical area of housing ownership, given the population that we serve, and the technical aspects of section 8 housing, and a. 89 "Matt Sislen" (2069751296) 00:15:06.889 --> 00:15:26.889 Well, housing and housing of this vintage, which is really, you know, it's, it's over 50 years old hasn't had a renovation, uh, since it was built. And so it's a very technical, technically intense property to own both on the compliance side with, with the subsidy that you've. 90 "Matt Sislen" (2069751296) 00:15:26.889 --> 00:15:37.229 Had a report on and abide by all the restrictions of and also just to operate the property physically. Uh, and he, he was just a little bit of an overhead. 91 "jspaeth@cityofutica.com" (1048797696) 00:15:40.489 --> 00:15:44.729 Yeah, I think you said this is going to be the retirement. 92 "jspaeth@cityofutica.com" (1048797696) 00:15:44.729 --> 00:15:49.452 Housing essentially, or or is now that I'm not saying that correctly. 93 "Matt Sislen" (2069751296) 00:15:49.452 --> 00:16:05.014 Not necessarily retirement housing, it's housing for folks, 60 to an older. Uh, and that's a requirement of the, the federal subsidy contract. That's what the property now, and has been in place and will continue to be in place. Okay. 94 "jspaeth@cityofutica.com" (1048797696) 00:16:05.014 --> 00:16:08.159 So, um. 95 "jspaeth@cityofutica.com" (1048797696) 00:16:08.159 --> 00:16:13.559 My guess would be the most or all those people are not actively employed. 96 "jspaeth@cityofutica.com" (1048797696) 00:16:13.559 --> 00:16:19.688 That are either retired or on some other assistants? Yeah. 97 "Matt Sislen" (2069751296) 00:16:19.688 --> 00:16:32.910 I would say, definitely not all that. We definitely have residents that go out and work, but, you know, it's getting to that age where a lot of folks are not working. Okay. Um. 98 "Matt Sislen" (2069751296) 00:16:32.910 --> 00:16:36.213 I'm sorry, sir. 99 "jspaeth@cityofutica.com" (1048797696) 00:16:36.213 --> 00:16:45.719 Mark, um, how they connects to what I previously said on the commercial and support, believe it or not. There have been a lot of inquiries from. 100 "jspaeth@cityofutica.com" (1048797696) 00:16:45.719 --> 00:16:51.329 Particularly, the, the create people that were relocated to you to go. 101 "jspaeth@cityofutica.com" (1048797696) 00:16:51.329 --> 00:16:56.489 Of what the availability of senior housing was, because a lot of them have. 102 "jspaeth@cityofutica.com" (1048797696) 00:16:56.489 --> 00:17:03.239 Parents that they want to move with them so that he has been an issue, um, in terms of economic development. 103 "jspaeth@cityofutica.com" (1048797696) 00:17:03.239 --> 00:17:06.519 Okay, thanks. 104 "Matt Sislen" (2069751296) 00:17:06.519 --> 00:17:17.399 Yeah, and I will say, uh, you know, there's, there's again, there's, there's 3 active jobs full time at the property for property manager and maintenance folks. 105 "Matt Sislen" (2069751296) 00:17:17.399 --> 00:17:35.219 There's more than 7 different vendors, mostly local who support the operation of the property. We're building out, uh, kind of, you know, salon where there will be 2 seats. So that that's like, you know, 2 more jobs that we, we feel like we're creating. 106 "Matt Sislen" (2069751296) 00:17:35.219 --> 00:17:46.379 Uh, or opening up the opportunity for folks to create for themselves, uh, at this property, in addition to the significant amount of short term construction jobs and, and the. 107 "Matt Sislen" (2069751296) 00:17:46.379 --> 00:17:53.279 The capital that will flow to those construction jobs, and we expect that to reverberate through the local economy. 108 "jspaeth@cityofutica.com" (1048797696) 00:17:56.742 --> 00:18:01.439 Okay, okay. 109 "jspaeth@cityofutica.com" (1048797696) 00:18:01.439 --> 00:18:07.019 You got anything no. 110 "jspaeth@cityofutica.com" (1048797696) 00:18:07.019 --> 00:18:16.439 Yeah, so we also in the agenda, we didn't realize at the time that the agenda was prepared that there were also in a position to adapt secret today. 111 "jspaeth@cityofutica.com" (1048797696) 00:18:16.439 --> 00:18:21.269 Okay, we can do the inducement and see, it's a type 2 actions. So. 112 "jspaeth@cityofutica.com" (1048797696) 00:18:21.269 --> 00:18:24.779 All right. 113 "jspaeth@cityofutica.com" (1048797696) 00:18:24.779 --> 00:18:31.029 Okay, thanks, Matt. Thank you. Bye. Bye. 114 "Matt Sislen" (2069751296) 00:18:31.029 --> 00:18:33.436 Is my time to leave? Yeah. 115 "jspaeth@cityofutica.com" (1048797696) 00:18:33.436 --> 00:18:37.859 Yep. Okay. Any other questions I might be able to address before I go to say yeah. 116 "jspaeth@cityofutica.com" (1048797696) 00:18:37.859 --> 00:18:41.219 Matt, well stay, you can see if you want me to right? 117 "jspaeth@cityofutica.com" (1048797696) 00:18:41.219 --> 00:18:46.234 Don't really think it's necessary, but welcome to. Okay. All right. Uh. 118 "Matt Sislen" (2069751296) 00:18:46.234 --> 00:18:51.837 Thank you all very much. We appreciate it and I hope to see you soon. 119 "jspaeth@cityofutica.com" (1048797696) 00:18:51.837 --> 00:18:59.099 I'll be in touch. All right, thank you. Jack? Yep. 120 "jspaeth@cityofutica.com" (1048797696) 00:18:59.099 --> 00:19:05.939 So, I go back to the old, uh, so. 121 "jspaeth@cityofutica.com" (1048797696) 00:19:05.939 --> 00:19:25.939 Adult and we're putting ourselves in that position at all. No, no she will never let them know. Absolutely. I see a plan that we're just showing them. We're saying the problem with the hardest thing. We're not going to own this. No, the problem with the building is that we owned it. We don't do that anymore in danger in, um. 122 "jspaeth@cityofutica.com" (1048797696) 00:19:25.939 --> 00:19:40.889 The, the, uh, the spec, we're not going to take title. We'll never take title to anything ever again. So long as I'm sitting in the seat after when it comes to real estate, she doesn't even let me play with the Lincoln law. 123 "jspaeth@cityofutica.com" (1048797696) 00:19:40.889 --> 00:19:44.309 What do you think Mark. 124 "jspaeth@cityofutica.com" (1048797696) 00:19:44.309 --> 00:19:50.159 I don't know, I mean, you said you said. 125 "jspaeth@cityofutica.com" (1048797696) 00:19:50.159 --> 00:19:56.519 I took away from that is, you know, provide low income housing. You're essentially. 126 "jspaeth@cityofutica.com" (1048797696) 00:19:56.519 --> 00:20:05.459 Provide the income for low wage earners, people who are going to see different have job taking time to place. 127 "jspaeth@cityofutica.com" (1048797696) 00:20:05.459 --> 00:20:13.589 Right there's specific findings in the resolution. Yeah if you take a look here to speak up. 128 "jspaeth@cityofutica.com" (1048797696) 00:20:13.589 --> 00:20:17.699 Strategy that's exactly. So I don't have. 129 "jspaeth@cityofutica.com" (1048797696) 00:20:17.699 --> 00:20:21.269 You know, provide housing for their parents. 130 "jspaeth@cityofutica.com" (1048797696) 00:20:21.269 --> 00:20:25.199 And we're creating. 131 "jspaeth@cityofutica.com" (1048797696) 00:20:25.199 --> 00:20:32.849 Yeah, I'd be I think it's fine. I think it's both I mean, there will be people in there that are in the workforce. 132 "jspaeth@cityofutica.com" (1048797696) 00:20:32.849 --> 00:20:36.599 And there will also be people in there that again. 133 "jspaeth@cityofutica.com" (1048797696) 00:20:36.599 --> 00:20:49.019 I I don't, I can't say whether people located to there and bring their parents. I know there's been a lot of employees, and we have a birth of good quality, senior house. So. 134 "jspaeth@cityofutica.com" (1048797696) 00:20:49.019 --> 00:20:55.619 And if you take a look at the resolution, there are certain findings that. 135 "jspaeth@cityofutica.com" (1048797696) 00:20:55.619 --> 00:21:01.259 And do you want to go through them? 136 "jspaeth@cityofutica.com" (1048797696) 00:21:01.259 --> 00:21:04.979 Yeah, um. 137 "jspaeth@cityofutica.com" (1048797696) 00:21:04.979 --> 00:21:13.169 These these are deviation, but I think that that is. 138 "jspaeth@cityofutica.com" (1048797696) 00:21:13.169 --> 00:21:18.599 Yeah. 139 "jspaeth@cityofutica.com" (1048797696) 00:21:18.599 --> 00:21:27.362 I read them you're in here. No, I know Matt. What do you. 140 "Matt Wells" (383618304) 00:21:27.362 --> 00:21:31.635 To walk through the resolutions and the adjustment resolution. Well. 141 "jspaeth@cityofutica.com" (1048797696) 00:21:31.635 --> 00:21:35.249 We're looking specifically for the commercial findings. 142 "jspaeth@cityofutica.com" (1048797696) 00:21:35.249 --> 00:21:38.355 Yes. 143 "Matt Wells" (383618304) 00:21:38.355 --> 00:21:44.129 So, it's so the kinds of well deviating from, let's see, we, we. 144 "Matt Wells" (383618304) 00:21:44.129 --> 00:21:55.139 Spell out the, uh, to, to the financial assistance cause is gonna come in the form of sales, use, tax, mortgage, recording, tax and abatement of real property tax. Um. 145 "Matt Wells" (383618304) 00:21:55.139 --> 00:22:09.089 And the deviation is, uh, we talk about the nature of the proposed facility, the economic condition of the area, the impact, um, on existing and proposed business. Um, uh. 146 "Matt Wells" (383618304) 00:22:09.089 --> 00:22:18.839 The and increase the permanent private sector jobs, and additional sources of revenue to municipalities school district as being. 147 "Matt Wells" (383618304) 00:22:18.839 --> 00:22:25.589 The potential justifications for that deviation, um, in terms of the, uh. 148 "Matt Wells" (383618304) 00:22:25.589 --> 00:22:30.449 Commercial determination, I think what we. 149 "Matt Wells" (383618304) 00:22:30.449 --> 00:22:47.339 Suggest as we do, um, uh, we do reference it in 1 of the recitals. I'm trying to find it, but I think it's, you know, it's more based on the application and the documentation that they've provided in terms of the memorandum they provided the city of, uh. 150 "Matt Wells" (383618304) 00:22:47.339 --> 00:22:57.149 Housing study and the counties study on that effect and then it's not so much the, uh, recitals as actually. I think it's in maybe in the, um. 151 "Matt Wells" (383618304) 00:22:57.149 --> 00:23:02.789 Um, in the actual resolutions itself that they. 152 "Matt Wells" (383618304) 00:23:02.789 --> 00:23:09.839 You know, based on the application materials, you've received, you're coming to the determination, um. 153 "Matt Wells" (383618304) 00:23:09.839 --> 00:23:16.469 That, um, the. 154 "Matt Wells" (383618304) 00:23:16.469 --> 00:23:26.909 Application materials, uh, provide comfort that, uh, the project will promote employment opportunities and prevent economic deterioration in the city of. 155 "Matt Wells" (383618304) 00:23:26.909 --> 00:23:30.590 I would. 156 "jspaeth@cityofutica.com" (1048797696) 00:23:30.590 --> 00:23:37.924 I can have him more particularly well, it's in section. Yeah Yeah. Yeah. 157 "Matt Wells" (383618304) 00:23:37.924 --> 00:23:39.873 Um. 158 "jspaeth@cityofutica.com" (1048797696) 00:23:39.873 --> 00:23:44.129 Serving the supply of adequate, safe and sanitary. 159 "jspaeth@cityofutica.com" (1048797696) 00:23:44.129 --> 00:23:51.509 Low rent, housing, accommodations for persons and families of low income. 160 "jspaeth@cityofutica.com" (1048797696) 00:23:51.509 --> 00:23:59.129 And will promote job opportunities, health prosperity in the economic welfare of the inhabitants. Um. 161 "jspaeth@cityofutica.com" (1048797696) 00:23:59.129 --> 00:24:06.659 And serving the public purposes, How's it going to do that? 162 "jspaeth@cityofutica.com" (1048797696) 00:24:06.659 --> 00:24:18.899 I don't know other than what we've already seen it. I don't know what it is you're looking for it. Well, here's what I'm like. Oh, he says he's going to make the neighborhood safer. 163 "jspaeth@cityofutica.com" (1048797696) 00:24:18.899 --> 00:24:22.859 How's it going to do that? You're not going to change that neighborhood. 164 "jspaeth@cityofutica.com" (1048797696) 00:24:22.859 --> 00:24:33.179 By doing what he's doing I mean, well, the able to have safer, cleaner, better place to live, but. 165 "jspaeth@cityofutica.com" (1048797696) 00:24:33.179 --> 00:24:52.769 Well, for what I understand, and I think what they have represented is that the property is has not been managed. Well, it's in need of renovation. It's being it's been deteriorating and that generally that generally that type of flight generally. 166 "jspaeth@cityofutica.com" (1048797696) 00:24:52.769 --> 00:25:04.439 If it continues, you start to get a lower and lower and lower standard tenant. Obviously if you renovate it and it's clean sanitary, nice, safe housing. 167 "jspaeth@cityofutica.com" (1048797696) 00:25:04.439 --> 00:25:09.299 That is going to have a ripple effect of the area around it. I mean, it just does. 168 "jspaeth@cityofutica.com" (1048797696) 00:25:09.299 --> 00:25:16.169 So, other than that, I don't know, I, I'm just having a hard time buying it as a commercial project. 169 "jspaeth@cityofutica.com" (1048797696) 00:25:16.169 --> 00:25:21.419 Okay, it generally it's it's good. Yeah. 170 "jspaeth@cityofutica.com" (1048797696) 00:25:21.419 --> 00:25:28.289 If we were having some huge project, and they're putting on a temporary workers. 171 "jspaeth@cityofutica.com" (1048797696) 00:25:28.289 --> 00:25:35.009 I'd say, okay, there's a, there's a also. 172 "jspaeth@cityofutica.com" (1048797696) 00:25:35.009 --> 00:25:39.119 A wider expansion of using the. 173 "jspaeth@cityofutica.com" (1048797696) 00:25:39.119 --> 00:25:53.279 Expanding the powers of the idea of when there is a fighting that it's the project prevents further blight in an area. And I think this is a situation where that area is an area that. 174 "jspaeth@cityofutica.com" (1048797696) 00:25:53.279 --> 00:26:00.089 Does standpoint, and take have a new renovated building. There just generally has ripple effect. Is. 175 "jspaeth@cityofutica.com" (1048797696) 00:26:00.089 --> 00:26:06.419 But the findings, and what the, you know, what the state is any plans for. I mean, I know that. 176 "jspaeth@cityofutica.com" (1048797696) 00:26:06.419 --> 00:26:11.189 March dual residents to start to go on boarding them back there again. 177 "jspaeth@cityofutica.com" (1048797696) 00:26:11.189 --> 00:26:20.159 We already started building, so, I mean, is there anything kind of between there that would say, you know. 178 "jspaeth@cityofutica.com" (1048797696) 00:26:20.159 --> 00:26:25.739 Or is the thought that if you build that and you run away this and the area's going to start there. 179 "jspaeth@cityofutica.com" (1048797696) 00:26:25.739 --> 00:26:45.739 Hello, I keep going back to this place across from a brewery that was going to clean up the neighborhood and made it worse. Right? So, yeah, but then, you know, by the time that he got done, they were there for a little bit. They were, you know, getting people in and then all of a sudden now you can't evict them and they realize some of the times that they have shipping. Right? Well, that was. 180 "jspaeth@cityofutica.com" (1048797696) 00:26:45.739 --> 00:26:56.429 You couldn't affect anybody, you know, we ran into them it was bad, but we, we did have that update from global. 181 "jspaeth@cityofutica.com" (1048797696) 00:26:56.429 --> 00:27:16.429 Well, I told this board, but the mayor had, uh, met with them. You have police fire codes, um, and listen to them. So, they've got they got rid of the former management group that was in there and they had the management group had gotten in a guy that was like, you know, was a party organized. 182 "jspaeth@cityofutica.com" (1048797696) 00:27:16.429 --> 00:27:38.659 So, they got rid of him, they took manager and back into their own hands and so then they're going, you know, finally getting through all the infection part of it too. Yeah. Or nothing but nightmares for me. No, I've not heard anything good either. And if it gets to the mayor's ear, then it's just like, okay, I need a meeting right now. 183 "jspaeth@cityofutica.com" (1048797696) 00:27:38.659 --> 00:27:45.629 Postage to get that together and then we're trying to have meetings, like, once a month. 184 "jspaeth@cityofutica.com" (1048797696) 00:27:45.629 --> 00:27:54.929 You know, a phone call, at least just, you know, what's your progress? Are you doing? Yep, we've got, you know, more people. We've got more security cameras and that type of stuff. 185 "jspaeth@cityofutica.com" (1048797696) 00:27:54.929 --> 00:28:14.929 75, except for is showing the bytes what's the difference between this and help us? Uh, nothing it's just that the, the form and the form of the ownership that it is. So, Matt had mentioned that, uh, the, the, the was like a 501 C. 186 "jspaeth@cityofutica.com" (1048797696) 00:28:14.929 --> 00:28:21.809 3, sorry, this is a regular for profit type of organization so they go through the text except on. 187 "jspaeth@cityofutica.com" (1048797696) 00:28:21.809 --> 00:28:38.099 These, whereas if there are 501, they come through us, but they have to put the property into a, for profit, just like the standard. You know, even though that project is long, you know, I mean, it's still working on a pilot from us. 188 "jspaeth@cityofutica.com" (1048797696) 00:28:38.099 --> 00:28:50.039 For the new market tax credits, part of that is part of that. Right? This is 1 of the project structure is and obviously the sandwich was tax exempt. 189 "jspaeth@cityofutica.com" (1048797696) 00:28:50.039 --> 00:28:58.139 Well, right now they have a new Stanley theater LLC, which is the for profit. Um. 190 "jspaeth@cityofutica.com" (1048797696) 00:28:58.139 --> 00:29:06.359 Entity that actually owns the Stanley property and so that would be putting this on the tax rolls or is it. 191 "jspaeth@cityofutica.com" (1048797696) 00:29:06.359 --> 00:29:12.989 It is currently painful taxes. Okay. Yeah. It just got off. It had some type of a pilot. 192 "jspaeth@cityofutica.com" (1048797696) 00:29:12.989 --> 00:29:16.769 Which is not unheard of for the original. 193 "jspaeth@cityofutica.com" (1048797696) 00:29:16.769 --> 00:29:20.159 Uh, you know, like rental apartment buildings. 194 "jspaeth@cityofutica.com" (1048797696) 00:29:20.159 --> 00:29:25.919 So you have the 4 properties that are owned by box that you have Lily and Cooper, Brandon keys. 195 "jspaeth@cityofutica.com" (1048797696) 00:29:25.919 --> 00:29:41.219 Then they started with a pilot, but it was more of a shelf rent type of pilot. So, when they come back to the city, the city, and I help put it together, but has like a, you know, just like where we look at 7% of effective, gross income. 196 "jspaeth@cityofutica.com" (1048797696) 00:29:41.219 --> 00:29:47.969 There's this 10, because these, these projects, when they 1st started rolling between 3 and a half to 6%. 197 "jspaeth@cityofutica.com" (1048797696) 00:29:47.969 --> 00:30:07.969 Effective gross income, so we said, look if you're not building a new building and you're just going to make some modifications so we're going to increase it to 10%. Okay. So that's how that is done from the city. But ours is, you know, a different structure. Um, with respect to your point, um, I found the findings that we were looking at and this, these are the findings of the idea. 198 "jspaeth@cityofutica.com" (1048797696) 00:30:07.969 --> 00:30:13.349 Consider today that do relate to whether or not the project is a commercial project. 199 "jspaeth@cityofutica.com" (1048797696) 00:30:13.349 --> 00:30:22.079 Um, 1, and so, in addition to promoting employment, preventing a kind of deterioration, what other specific findings we've done in the past, and I would suggest. 200 "jspaeth@cityofutica.com" (1048797696) 00:30:22.079 --> 00:30:28.799 The board consider here 1, the project will help stabilize the neighborhood and encourage further development. 201 "jspaeth@cityofutica.com" (1048797696) 00:30:28.799 --> 00:30:32.849 And that does seem to happen if 1 building gets renovated. 202 "jspaeth@cityofutica.com" (1048797696) 00:30:32.849 --> 00:30:52.849 The idea is to give a domino effect on that, to the project includes community building. I don't think it does that provide services to vulnerable. It does not preserve and enhance existing affordable housing renovation to the property changing and population serve to better suit needs. 203 "jspaeth@cityofutica.com" (1048797696) 00:30:52.849 --> 00:31:01.709 Will fill the demand for affordable housing for senior and disabled populations identified in the housing study commission about a city of and that is. 204 "jspaeth@cityofutica.com" (1048797696) 00:31:01.709 --> 00:31:05.459 That's the finding that I think is important. 205 "jspaeth@cityofutica.com" (1048797696) 00:31:05.459 --> 00:31:12.059 So that those are findings that we've done in the past that support, finding that it is commercial. 206 "jspaeth@cityofutica.com" (1048797696) 00:31:12.059 --> 00:31:20.399 Around the corner, you also have those West street apartments, they put that big bank, you know, so it's. 207 "jspaeth@cityofutica.com" (1048797696) 00:31:20.399 --> 00:31:27.809 Yeah, there's some improvements to that neighborhood. So it's now we've done similar to this before this. The 1st. 208 "jspaeth@cityofutica.com" (1048797696) 00:31:27.809 --> 00:31:33.869 We've done similar projects, we haven't done this finance and structure, but in terms of. 209 "jspaeth@cityofutica.com" (1048797696) 00:31:33.869 --> 00:31:38.009 Affordable, we've done that we've done lease lease backs. 210 "jspaeth@cityofutica.com" (1048797696) 00:31:38.009 --> 00:31:45.539 And we've done other ones that hit tax credits, but we've never done the combination. What makes us more different is the combination of the tax credit. 211 "jspaeth@cityofutica.com" (1048797696) 00:31:45.539 --> 00:31:55.139 And the tax exempt finance, honestly, part of the reason you're seeing that now is because of the rise in interest rates. 212 "jspaeth@cityofutica.com" (1048797696) 00:31:55.139 --> 00:32:04.349 It used to be that the differential between Texas separates and taxable rates was it's significant. So it did make sense to have the expense of. 213 "jspaeth@cityofutica.com" (1048797696) 00:32:04.349 --> 00:32:24.349 Going through a full tax exempt bond issuance, but now you've got a wider spread so that over the course of the project, it makes sense to revoke the tax exempt. So, that's I think that's the reason why this seems a little bit different, because it is, as we're doing, we're doing tech the, there's a tech exam portion. 214 "jspaeth@cityofutica.com" (1048797696) 00:32:24.349 --> 00:32:33.479 The financing that we haven't done before, but in terms of making those commercial findings and all that, we definitely have a precedent for that. 215 "jspaeth@cityofutica.com" (1048797696) 00:32:33.479 --> 00:32:45.299 That'd be similar. This project is similar to just in what it's doing, so it's taking an existing building renovating it. 216 "jspaeth@cityofutica.com" (1048797696) 00:32:45.299 --> 00:32:56.579 Uh, although students like this, chances are part of it 5 times, you know, where we, you know, there's been an existing building it has those folks in it. They just want to. 217 "jspaeth@cityofutica.com" (1048797696) 00:32:56.579 --> 00:33:03.599 You know, change it, you know, update it and do all that and they have the availability through the low income housing tech price. 218 "jspaeth@cityofutica.com" (1048797696) 00:33:03.599 --> 00:33:07.049 So, their brand new projects would be, um. 219 "jspaeth@cityofutica.com" (1048797696) 00:33:07.049 --> 00:33:27.049 Like, a default wall and in sunset. Yeah. So we, we've done a bulk. We just haven't done the tax exempt side of it because they're, I mean, there hasn't been Matt there hasn't been tax exempt issued in the last 10 years. I mean, cause the rate we're making an attempt to. 220 "jspaeth@cityofutica.com" (1048797696) 00:33:27.049 --> 00:33:47.049 I mean, it's just the rates it does, so and the staff changes, it changes the financial picture. Yeah, but the commercial findings, the prevention economic flight supporting housing in accordance, which is a city of Utica housing study. All of that is applicable here. And we. 221 "jspaeth@cityofutica.com" (1048797696) 00:33:47.049 --> 00:33:51.299 Definitely get precedent a lot of precedent for it. 222 "jspaeth@cityofutica.com" (1048797696) 00:33:51.299 --> 00:34:08.879 That happens all the zeros off. Would it be kinda scary into this when you look at 21Million dollars? So, if we're not at risk for you are not at risk at all. You're I mean, it's that part of it is the same as every other deal that we've done. 223 "jspaeth@cityofutica.com" (1048797696) 00:34:08.879 --> 00:34:14.969 Okay, well, at this point, we'll be looking at just a nuisance. 224 "jspaeth@cityofutica.com" (1048797696) 00:34:14.969 --> 00:34:19.199 We would just introducing it and finding. 225 "jspaeth@cityofutica.com" (1048797696) 00:34:19.199 --> 00:34:39.199 Making decisions, so there will be a public hearing. It's just like, there's a lot there's a lot that has to happen because it's closing yeah. Between now and the closing. I mean, so this induces it. I mean, they have to obviously get their financing together. That's the big. 226 "jspaeth@cityofutica.com" (1048797696) 00:34:39.199 --> 00:34:47.279 Part of it. Um, so there's, there's a lot that would have to happen between now, but this, this does kick it off. 227 "jspaeth@cityofutica.com" (1048797696) 00:34:47.279 --> 00:35:01.019 We've got a chance the way. That was good. Yeah, you can weigh in. There's ample opportunities. It's gonna be a public hearing and then before anything happens, there has to be a final approving, um, resolution. So you'll get a 2nd shot. 228 "jspaeth@cityofutica.com" (1048797696) 00:35:01.019 --> 00:35:04.979 Although once you do it, I mean, I can't. 229 "jspaeth@cityofutica.com" (1048797696) 00:35:04.979 --> 00:35:12.179 If you do say it, and they get their financing, we'd have to be a really solid reason not to not to close. 230 "jspaeth@cityofutica.com" (1048797696) 00:35:16.949 --> 00:35:25.559 We don't know much more about the owner right? The current yeah, no, I know that there's been issues there. Um. 231 "jspaeth@cityofutica.com" (1048797696) 00:35:25.559 --> 00:35:45.059 I don't know if I have pulled, like, a lot of times the, that I pull a police report. What kind of calls have there been nuisance calls and he started a fire you know, somebody got beat up or something like that. I have not on this project and there was something there recently. 232 "jspaeth@cityofutica.com" (1048797696) 00:35:45.059 --> 00:35:54.809 Yeah, I mean, there's, there's stuff that Lily and Cooper all the time. I'm familiar, I think, in his brother, if you want to just close out that place. Yes. Yeah. 233 "jspaeth@cityofutica.com" (1048797696) 00:35:54.809 --> 00:36:01.469 Something they've made it to the newspaper. Yeah, I, I don't remember. I remember there was something I didn't remember there. 234 "jspaeth@cityofutica.com" (1048797696) 00:36:01.469 --> 00:36:09.239 Particular, I wonder is in Washington Tuesday? Yeah, Washington, DC or Washington Washington watching Seattle, Seattle. 235 "jspaeth@cityofutica.com" (1048797696) 00:36:09.239 --> 00:36:14.189 I'm just curious to know how they identify a property that they want. They want it for a year. 236 "jspaeth@cityofutica.com" (1048797696) 00:36:14.189 --> 00:36:18.209 Yeah, I, I'm just curious. How did they say oh. 237 "jspaeth@cityofutica.com" (1048797696) 00:36:18.209 --> 00:36:34.799 Here's your heart. Here's a great answer that he said that his partner so they do this. They've done several of these. Yeah, his partner Mark s, his partner is from outside of Albany so he, they identified upstate as a target for this. 238 "jspaeth@cityofutica.com" (1048797696) 00:36:34.799 --> 00:36:38.459 And they've done, so so, I mean, they are. 239 "jspaeth@cityofutica.com" (1048797696) 00:36:38.459 --> 00:36:43.889 Appear to going to be more local than Seattle, Washington, which is. 240 "jspaeth@cityofutica.com" (1048797696) 00:36:43.889 --> 00:36:47.219 Goodness oh, yeah. I just think that the cost. 241 "jspaeth@cityofutica.com" (1048797696) 00:36:47.219 --> 00:36:52.270 A year later they're getting rid of it. Yeah. 242 "Matt Wells" (383618304) 00:36:52.270 --> 00:36:59.429 We've got 2 or 3 projects going on in New York state right now and I think some current whole things that have a. 243 "Matt Wells" (383618304) 00:36:59.429 --> 00:37:03.440 Then a longer standing. 244 "jspaeth@cityofutica.com" (1048797696) 00:37:03.440 --> 00:37:12.149 I mean, it sounds like the Seattle folks might have just come in on a temporary basis, you know, maybe to get some credits or something and really have not been managing it. 245 "jspaeth@cityofutica.com" (1048797696) 00:37:12.149 --> 00:37:21.809 So, I mean, if in fact, these guys and it sounds, I mean, it sounds like they're going to be more responsible owners than what we currently have. I mean. 246 "jspaeth@cityofutica.com" (1048797696) 00:37:21.809 --> 00:37:31.529 Guys before the shipping guys were the original owners, I think quite a bit, because they've only owned it for a year. 247 "jspaeth@cityofutica.com" (1048797696) 00:37:31.529 --> 00:37:38.879 They've only able to present things for people in 50 years or something. Yeah Yeah. 248 "jspaeth@cityofutica.com" (1048797696) 00:37:44.639 --> 00:37:52.409 Well, we have a, do we have a quorum here? 249 "jspaeth@cityofutica.com" (1048797696) 00:37:52.409 --> 00:37:58.739 Um, so the vote would have to be 2 or 3, right to pass. 250 "jspaeth@cityofutica.com" (1048797696) 00:37:58.739 --> 00:38:04.469 Yeah, but I like this though. Yeah, I really wish down here. Yeah. 251 "jspaeth@cityofutica.com" (1048797696) 00:38:04.469 --> 00:38:08.519 I believe to say about this. 252 "jspaeth@cityofutica.com" (1048797696) 00:38:08.519 --> 00:38:13.230 Table for the next meeting that he has. 253 "jspaeth@cityofutica.com" (1048797696) 00:38:13.230 --> 00:38:21.450 Yeah, I think you're on the fast track for this. They're very we'll speak up or I, you've talked to them. 254 "jspaeth@cityofutica.com" (1048797696) 00:38:21.450 --> 00:38:33.690 No, well, I mean, just, they're looking to do something by November. Yeah. I'm closing on this project, like, oh, you know, with the state yeah. To get there. 255 "jspaeth@cityofutica.com" (1048797696) 00:38:33.690 --> 00:38:37.470 keybanc buys a lot of buttons. I know for the, uh. 256 "jspaeth@cityofutica.com" (1048797696) 00:38:37.470 --> 00:38:41.160 Housing visions, they did all the stuff that Mayfield and. 257 "jspaeth@cityofutica.com" (1048797696) 00:38:41.160 --> 00:38:54.000 A Kemble, 10 and stuff like that a key bankers to buy all their buttons, you know, with the base on keybanc where they are, what banking is right now is there a market open stuff? 258 "jspaeth@cityofutica.com" (1048797696) 00:38:54.000 --> 00:39:05.460 Uh, there I wouldn't say it's wide open. I, I'd be surprised if 1 thing audit generally the trustee will buy it and it gets spread among institutional buyers. 259 "jspaeth@cityofutica.com" (1048797696) 00:39:05.460 --> 00:39:09.750 But again, this, this whole concept. 260 "jspaeth@cityofutica.com" (1048797696) 00:39:09.750 --> 00:39:20.760 That you seem to be troubled by we have done this this is we have done, like, the only like I say, again, being competitive. The only difference here is the financing. 261 "jspaeth@cityofutica.com" (1048797696) 00:39:20.760 --> 00:39:30.030 But the whole, the findings, the, the renovation, the low income, this is like the 61 we've done, so yeah. Okay. 262 "jspaeth@cityofutica.com" (1048797696) 00:39:30.030 --> 00:39:38.910 Have you talked to Buffalo? Yeah, I sent the materials. He said he was out for tomorrow. Generally. He has like a talk to him. 263 "jspaeth@cityofutica.com" (1048797696) 00:39:38.910 --> 00:39:46.290 I have not no, no, I, I don't we can call I don't recall. 264 "jspaeth@cityofutica.com" (1048797696) 00:39:46.290 --> 00:39:50.520 Any anyone voting against the heat code. 265 "jspaeth@cityofutica.com" (1048797696) 00:39:50.520 --> 00:40:03.390 I don't recall voting against the other ones, so it's all different stories. Yeah, I believe development goals. Yeah Yeah. Yeah. He's involved with a lot of that. Right right. 266 "jspaeth@cityofutica.com" (1048797696) 00:40:03.390 --> 00:40:21.300 I think he has, like, a year, like a standing bank meeting on the 2nd, Wednesdays, or I didn't I kind of didn't expect him to be here and I'm like, you know, choice, but just trying to keep our Wednesday. We can't meet that can't meet that. But I so, Laura points out in their application. 267 "jspaeth@cityofutica.com" (1048797696) 00:40:21.300 --> 00:40:27.900 And we're not going to be able to meet this, but they had wanted to get the, um, bonds closed paid. 268 "jspaeth@cityofutica.com" (1048797696) 00:40:27.900 --> 00:40:34.350 October 31st, and that's not going to happen, but you're talking about definitely closing this year. 269 "jspaeth@cityofutica.com" (1048797696) 00:40:34.350 --> 00:40:39.570 Which means if you take what now, it wouldn't go out until November and there really would be time. 270 "jspaeth@cityofutica.com" (1048797696) 00:40:39.570 --> 00:40:43.590 To do it then. So, um. 271 "jspaeth@cityofutica.com" (1048797696) 00:40:43.590 --> 00:40:52.800 All right is your question more about the tax exempt structure, or the commercial structure that you wanted John? 272 "jspaeth@cityofutica.com" (1048797696) 00:40:52.800 --> 00:41:00.030 The commercial structure. Okay. I mean, if we didn't have these, the tax exempt bonds, then this is no different than. 273 "jspaeth@cityofutica.com" (1048797696) 00:41:00.030 --> 00:41:11.160 Uh, you know, all of a sudden, you know, has like, 3 people, my garden has, you know, 3 or 4 should even, uh, senior place down in up in North Utica there. 274 "jspaeth@cityofutica.com" (1048797696) 00:41:11.160 --> 00:41:17.910 Because I think 5 employees yeah. Yeah. So we've done all that housing projects are not. 275 "jspaeth@cityofutica.com" (1048797696) 00:41:17.910 --> 00:41:33.390 That job driven, they're not no between between all of the projects that we have, except for default, because they have kind of a full time staff. Um, there's probably no more than 30 employees throughout all of these different projects. 276 "jspaeth@cityofutica.com" (1048797696) 00:41:33.390 --> 00:41:37.080 There's 3 here there's by there couple there. 277 "jspaeth@cityofutica.com" (1048797696) 00:41:37.080 --> 00:41:41.670 Jake, did you share this memo format with the board? 278 "jspaeth@cityofutica.com" (1048797696) 00:41:41.670 --> 00:41:46.920 I saw you sent out the attachments, but I didn't see the memorandum go out. 279 "jspaeth@cityofutica.com" (1048797696) 00:41:46.920 --> 00:41:55.050 I thought that I did. Oh, maybe maybe not. I'm sorry. Yeah. It's the whole support project. 280 "jspaeth@cityofutica.com" (1048797696) 00:41:55.050 --> 00:41:58.560 Sorry, I've been a few days. 281 "jspaeth@cityofutica.com" (1048797696) 00:41:58.560 --> 00:42:03.660 Here's the memo that. 282 "jspaeth@cityofutica.com" (1048797696) 00:42:03.660 --> 00:42:10.230 The applicant sent, and I presume the board had gotten that. 283 "jspaeth@cityofutica.com" (1048797696) 00:42:10.230 --> 00:42:21.180 But that might answer some of your. 284 "jspaeth@cityofutica.com" (1048797696) 00:42:21.180 --> 00:42:31.950 Yeah, anything yeah, yeah I didn't I think it was just left off. The attachments went out. Well, the attachments yeah that's just studying the study. The articles, right? 285 "jspaeth@cityofutica.com" (1048797696) 00:42:31.950 --> 00:42:43.605 Yeah. 286 "jspaeth@cityofutica.com" (1048797696) 00:42:51.190 --> 00:42:59.010 Do you want to take a look at that? 1? I got a stack. Mm. Hmm. 287 "jspaeth@cityofutica.com" (1048797696) 00:43:04.740 --> 00:43:14.670 Is in the event. 288 "jspaeth@cityofutica.com" (1048797696) 00:43:14.670 --> 00:43:19.500 Because, actually, if if keeping eyes them. 289 "jspaeth@cityofutica.com" (1048797696) 00:43:19.500 --> 00:43:27.150 And if, uh, proposals to represent keybanc, I'm gonna have to come back to right cause right now we don't know. So, I'm just. 290 "jspaeth@cityofutica.com" (1048797696) 00:43:27.150 --> 00:43:31.770 On the side of being cautious yes. Yes. 291 "jspaeth@cityofutica.com" (1048797696) 00:43:31.770 --> 00:43:37.530 I'm sorry. 292 "jspaeth@cityofutica.com" (1048797696) 00:43:37.530 --> 00:43:42.750 There's 2 there I flagged 1. 293 "jspaeth@cityofutica.com" (1048797696) 00:43:42.750 --> 00:43:46.849 I think if key bank ultimately ends up. 294 "Matt Wells" (383618304) 00:43:46.849 --> 00:44:02.750 Purchasing the bonds that get placed by Piper Sandler, the chances of them utilizing us are probably remote, given that, um, purchases of these types of bonds with a low income housing tax credit attached are pretty. 295 "Matt Wells" (383618304) 00:44:02.750 --> 00:44:08.625 Sophisticated and there's a few law firms that that represent. 296 "jspaeth@cityofutica.com" (1048797696) 00:44:08.625 --> 00:44:09.529 We purchased. 297 "Matt Wells" (383618304) 00:44:09.529 --> 00:44:15.120 And know how to deal and interact with the housing and Urban development. 298 "Matt Wells" (383618304) 00:44:15.120 --> 00:44:18.870 And the tax credits to go along with them. 299 "Matt Wells" (383618304) 00:44:18.870 --> 00:44:24.613 That we don't tend to do too frequently. 300 "jspaeth@cityofutica.com" (1048797696) 00:44:24.613 --> 00:44:28.294 Well, I, if it happens on compared to you yeah. 301 "Matt Wells" (383618304) 00:44:28.294 --> 00:44:31.547 That is impossible, but I think it may not be necessary. 302 "jspaeth@cityofutica.com" (1048797696) 00:44:31.547 --> 00:44:34.489 Yeah, it's not like, but. 303 "Matt Wells" (383618304) 00:44:34.489 --> 00:44:39.831 I'm not saying not to have it. I just. 304 "jspaeth@cityofutica.com" (1048797696) 00:44:45.000 --> 00:44:53.940 Yeah. 305 "jspaeth@cityofutica.com" (1048797696) 00:44:53.940 --> 00:44:57.930 Good. 306 "jspaeth@cityofutica.com" (1048797696) 00:45:01.590 --> 00:45:09.810 These meetings generally under an hour, I've got another board meeting at 10, so I'm gonna have to leave you with. 307 "jspaeth@cityofutica.com" (1048797696) 00:45:09.810 --> 00:45:22.890 I know I'm getting close on that all in favor. Well, this is for this meeting. 308 "jspaeth@cityofutica.com" (1048797696) 00:45:29.160 --> 00:45:33.030 You guys all sitting behind this project. 309 "jspaeth@cityofutica.com" (1048797696) 00:45:33.030 --> 00:45:41.670 Right yeah, I get it for me, it's just a, it's what we've done, you know, our bread and butter for the past couple few years. 310 "jspaeth@cityofutica.com" (1048797696) 00:45:41.670 --> 00:45:49.140 And it's just the structure of the area of ideas that we haven't really dealt with, which was correct. 311 "jspaeth@cityofutica.com" (1048797696) 00:45:49.140 --> 00:45:52.200 Yeah, that's the 1st, 1 for me. Okay. 312 "jspaeth@cityofutica.com" (1048797696) 00:45:52.200 --> 00:45:58.170 Yeah, I mean, in the past, no, it's it's. 313 "jspaeth@cityofutica.com" (1048797696) 00:45:58.170 --> 00:46:12.270 Seriously, I, I'm being totally repetitive. It's exactly what we've done with the tax exempt component from their financing. Usually they just go out to a bank and they get they're financing and we don't get involved with it. 314 "jspaeth@cityofutica.com" (1048797696) 00:46:12.270 --> 00:46:17.550 It's kinda like that, except that we have to be involved. 315 "jspaeth@cityofutica.com" (1048797696) 00:46:17.550 --> 00:46:29.580 Because of the tax exam, you know, takes us that nature of the financing, which just means more lawyers and more papers. But in terms of the exposure to the, the commercial findings of the, it's. 316 "jspaeth@cityofutica.com" (1048797696) 00:46:29.580 --> 00:46:32.848 Same awesome. 317 "Matt Wells" (383618304) 00:46:32.848 --> 00:46:44.220 So, I think the other the other layer, and I'm not a full blown tax lawyer, but what I, the way I understand it is, um, by, involving an, and utilizing volume cap from the state. 318 "Matt Wells" (383618304) 00:46:44.220 --> 00:46:48.030 It will create automatic eligibility. 319 "Matt Wells" (383618304) 00:46:48.030 --> 00:47:01.080 For the low income housing tax credit that makes these projects viable. So I think that's why it's important in this situation for them to go through an NDA and get the tax exempt on financing and volume cap. 320 "jspaeth@cityofutica.com" (1048797696) 00:47:04.803 --> 00:47:10.590 You anticipate we'll see more of these the right software. They are. 321 "jspaeth@cityofutica.com" (1048797696) 00:47:10.590 --> 00:47:17.700 You know, you take a look at each project to the extent, and we go and they put money into it. If. 322 "jspaeth@cityofutica.com" (1048797696) 00:47:17.700 --> 00:47:22.500 You know, it includes the new products, but you can't deny that and that's. 323 "jspaeth@cityofutica.com" (1048797696) 00:47:22.500 --> 00:47:26.580 What's the. 324 "jspaeth@cityofutica.com" (1048797696) 00:47:26.580 --> 00:47:32.850 It's about 45 for us. Yeah. 325 "jspaeth@cityofutica.com" (1048797696) 00:47:32.850 --> 00:47:43.860 Larger agency yeah, the the agency fee on this is probably in the 145,000 range. Okay. 326 "jspaeth@cityofutica.com" (1048797696) 00:47:43.860 --> 00:47:49.530 You know, I guess I'm not going to pose it, but. 327 "jspaeth@cityofutica.com" (1048797696) 00:47:49.530 --> 00:47:57.750 I'm not going to prove this for the reasons with these guys are floating just like that's too much bullshit for me. This, this isn't, you know. 328 "jspaeth@cityofutica.com" (1048797696) 00:47:57.750 --> 00:48:02.700 Providing affordable home with we're preventing homelessness on. 329 "jspaeth@cityofutica.com" (1048797696) 00:48:02.700 --> 00:48:17.970 It's gonna happen. No closer in retirement mode. I finished. Yeah, I think you and I had talked or something to the, uh. 330 "jspaeth@cityofutica.com" (1048797696) 00:48:17.970 --> 00:48:28.950 You know, the snowplow guy, and the, the landscaping guy, you know, we've no, 1 has ever brought those, those types of jobs to us. So that's good. 331 "jspaeth@cityofutica.com" (1048797696) 00:48:28.950 --> 00:48:40.020 Kind of a stretch there are going to have this whole on, which is a little bit different than some other places. They just don't have the tire function to reduce homelessness. 332 "jspaeth@cityofutica.com" (1048797696) 00:48:40.020 --> 00:48:54.780 Mark, some, that language comes from the spreadsheet and preventing economic deterioration is preventing light and deterioration is a very standard finding. When you go into an area like. 333 "jspaeth@cityofutica.com" (1048797696) 00:48:54.780 --> 00:49:11.190 Where this area is, and there is just a sense and in acceptance under the regulations in the law, but if you go in and renovate a property like that, that it, it will tend to prevent further white. It would encourage further investment. And that has happened. 334 "jspaeth@cityofutica.com" (1048797696) 00:49:11.190 --> 00:49:26.970 I mean, that is absolutely yeah, but what's the best example around the ceiling the almost across the street you know, I mean, they cross the street I've sold, they tried to buy 1 it was all the 1 on the corner is a client of mine. He sold. 335 "jspaeth@cityofutica.com" (1048797696) 00:49:26.970 --> 00:49:46.970 So, that area, there's somebody going in that block is actually owns that plan. So, if somebody's, they're putting working on it and look yeah. Rightly auto parts is going into the original 1. so, what's what's happened around pacemaker all those apartments, you know, the dual hardware and all that but areas booming. I've got people. 336 "jspaeth@cityofutica.com" (1048797696) 00:49:46.970 --> 00:49:55.080 Content can be all the time to solve some of those buildings 1 of the big things. Like, when it comes to low income, is that. 337 "jspaeth@cityofutica.com" (1048797696) 00:49:55.080 --> 00:49:59.670 1 of and 1 of the deviations that you use, or, uh. 338 "jspaeth@cityofutica.com" (1048797696) 00:49:59.670 --> 00:50:08.340 Is being in the empire empire zones, you know, that was a qualifier. We still have that question on our application. 339 "jspaeth@cityofutica.com" (1048797696) 00:50:08.340 --> 00:50:20.970 The only reason why we have an empire zone is because we have a number of census tracks, which this is located in, that are low, low income, high poverty, high unemployment. 340 "jspaeth@cityofutica.com" (1048797696) 00:50:20.970 --> 00:50:31.230 So, that's 1 of the biggest catches that we use for some of these projects sometimes is just merely by the fact that according to a federal census tract to which the empire result was built on. 341 "jspaeth@cityofutica.com" (1048797696) 00:50:31.230 --> 00:50:38.670 You know, this is low, low, low, low, low, low. If you go to North America, there is no. 342 "jspaeth@cityofutica.com" (1048797696) 00:50:38.670 --> 00:50:57.570 You put that, because for a number no, no, no, no legally legally. I mean, you could not with the findings. Yeah. Cause you're not in the zone. You're not in what was the economics of this, this type of file. It's it's targeted to this area. This type of area, so. 343 "jspaeth@cityofutica.com" (1048797696) 00:50:57.570 --> 00:51:01.260 I mean, this is what was intended when. 344 "jspaeth@cityofutica.com" (1048797696) 00:51:01.260 --> 00:51:08.940 They, they with the emphasis on credits, and the reason why the city in particular is. 345 "jspaeth@cityofutica.com" (1048797696) 00:51:08.940 --> 00:51:23.040 Is again, because of low income housing census tracks, when I make a loan for, uh, you know, through the program or, uh, you know, I mean, I do economic development all the rest of these people are working on community development. 346 "jspaeth@cityofutica.com" (1048797696) 00:51:23.040 --> 00:51:29.610 Boys and girls clubs, this, that and the other thing helping with housing program, that's where I think we're drifting into it. 347 "jspaeth@cityofutica.com" (1048797696) 00:51:29.610 --> 00:51:33.450 Well, just to show you that, you know, that's. 348 "jspaeth@cityofutica.com" (1048797696) 00:51:33.450 --> 00:51:40.320 Those organizations can't can't provide the financing opportunities that we have. 349 "jspaeth@cityofutica.com" (1048797696) 00:51:40.320 --> 00:51:49.080 So, that's why we do help and that's, you know, if if housing wasn't something that we should be looking at. 350 "jspaeth@cityofutica.com" (1048797696) 00:51:49.080 --> 00:51:54.750 Then it wouldn't be acceptable place for us to put our benefits. Okay. 351 "jspaeth@cityofutica.com" (1048797696) 00:51:54.750 --> 00:51:59.340 Alright, I'm ready. 352 "jspaeth@cityofutica.com" (1048797696) 00:51:59.340 --> 00:52:02.970 A special wording, so the resolution. 353 "jspaeth@cityofutica.com" (1048797696) 00:52:02.970 --> 00:52:16.320 Yeah, yeah, I'm sorry my bad with historical part departments concern in a district inducement resolution, relating to the HP unit preservation facility. 354 "jspaeth@cityofutica.com" (1048797696) 00:52:16.320 --> 00:52:36.320 Taking official preliminary action toward the provision of financial assistance, including the issuance of tax exempt bonds estimated at 21,200,000 dollars exemptions from sales tax, valued value, estimated at 326,745 dollars exemptions from. 355 "jspaeth@cityofutica.com" (1048797696) 00:52:36.320 --> 00:52:51.360 Board is reporting tax value estimated at 159,000 reduction of a of real property taxes for a period of 30 years value estimated and is only at 2643. 356 "jspaeth@cityofutica.com" (1048797696) 00:52:51.360 --> 00:53:04.770 So, you know, we're really close to what, uh, the current state mortgage really real property tax is so that the benefit is very, very small the email. 357 "jspaeth@cityofutica.com" (1048797696) 00:53:04.770 --> 00:53:15.390 For the pilot, we're also asking new secrets. Correct which financial assistance is a deviation from the agencies uniform tax exemption policy. 358 "jspaeth@cityofutica.com" (1048797696) 00:53:15.390 --> 00:53:26.460 Yeah, yeah, we'll do a separate site 1st, and then sequence and it's a 12nd failure. 359 "jspaeth@cityofutica.com" (1048797696) 00:53:26.460 --> 00:53:38.100 Most so most, I don't have any language for the seeker, but, uh, just for this project to pass a seeker is a type 2. 360 "jspaeth@cityofutica.com" (1048797696) 00:53:38.100 --> 00:53:46.623 Most of the type to add to it. So, on the basis of it gives you a negative deck. 361 "Matt Wells" (383618304) 00:53:46.623 --> 00:53:53.446 You you can feed from section 1 of the inducement resolution if you need some language Laura. 362 "jspaeth@cityofutica.com" (1048797696) 00:53:53.446 --> 00:53:58.860 Yeah, I can I'll fill that in later. Okay. All right. Okay. 363 "jspaeth@cityofutica.com" (1048797696) 00:53:58.860 --> 00:54:09.390 I just, I'm just going to kind of run through thanks. Thanks. Bye. Thanks. Bye. Thank you. Bye. Thank you. Thanks. Great day. Any questions to me. 364 "jspaeth@cityofutica.com" (1048797696) 00:54:09.390 --> 00:54:18.570 Peace we have 1400 broad, which was a, uh, an extension of the sales tax exemption. 365 "jspaeth@cityofutica.com" (1048797696) 00:54:18.570 --> 00:54:34.710 For that, uh, the former Pepsi building, the warehouse and supply they moved in there. There had some delays per the letter that I had sent around and we were just here to ratify. So we need a another vote. 366 "jspaeth@cityofutica.com" (1048797696) 00:54:34.710 --> 00:54:39.090 When we ratify, because I don't have like a 1st and 2nd for anybody. 367 "jspaeth@cityofutica.com" (1048797696) 00:54:39.090 --> 00:54:42.540 When we approved via email, um. 368 "jspaeth@cityofutica.com" (1048797696) 00:54:42.540 --> 00:54:59.640 I don't know, it's like, oh, s***, I'm here to ratify. Okay 1500 sales tax exemption extension. Do we still call for a 1st and 2nd, even though we voted electronically for this or via? Well, you can't. 369 "jspaeth@cityofutica.com" (1048797696) 00:54:59.640 --> 00:55:10.770 Electronically yeah, yeah, right. That's right. Yeah. So just go around and do that. Okay. Yeah. Okay. All right. Thank you. Thank you. 370 "jspaeth@cityofutica.com" (1048797696) 00:55:10.770 --> 00:55:15.810 Well, 1st, and 2nd, for the 1400 extension motion. 371 "jspaeth@cityofutica.com" (1048797696) 00:55:15.810 --> 00:55:28.680 Oh, okay. Austin, Austin was a ratify the lease back amendment for August and apartments. Oh, I see. Again, we're just here to, uh. 372 "jspaeth@cityofutica.com" (1048797696) 00:55:28.680 --> 00:55:34.980 We had the consensus a long time ago, but 2 meetings ago. Okay. 373 "jspaeth@cityofutica.com" (1048797696) 00:55:34.980 --> 00:55:37.980 Hello thanks Thank you. Okay. 374 "jspaeth@cityofutica.com" (1048797696) 00:55:37.980 --> 00:55:40.980 Budget, I sent you out the budget. 375 "jspaeth@cityofutica.com" (1048797696) 00:55:40.980 --> 00:55:47.580 Uh, pretty simple compared to what we had last year, a couple changes in the amount of agency fees. 376 "jspaeth@cityofutica.com" (1048797696) 00:55:47.580 --> 00:55:56.550 Uh, that we have been getting the admin fees. We're close to what we have gotten in the past. 377 "jspaeth@cityofutica.com" (1048797696) 00:55:56.550 --> 00:56:01.170 I'll do this 1 budget this 1. 378 "jspaeth@cityofutica.com" (1048797696) 00:56:01.170 --> 00:56:06.930 Yeah, I should approve the budget. 379 "jspaeth@cityofutica.com" (1048797696) 00:56:06.930 --> 00:56:10.740 All right. 380 "jspaeth@cityofutica.com" (1048797696) 00:56:10.740 --> 00:56:17.370 Motion to adjourn this meeting or anything else on your, uh, no, not for the idea. So I can. 381 "jspaeth@cityofutica.com" (1048797696) 00:56:17.370 --> 00:56:20.940 3rd. 382 "jspaeth@cityofutica.com" (1048797696) 00:56:20.940 --> 00:56:26.520 I got to start with the hour. I will. 383 "jspaeth@cityofutica.com" (1048797696) 00:56:26.520 --> 00:56:32.160 All right now we got the meeting, I got to get settled here. 384 "jspaeth@cityofutica.com" (1048797696) 00:56:32.160 --> 00:56:47.160 Check so, yeah, the 2 guys got a phone call John yeah. Hold on. And well, John, you know, he always has meetings, but it's not sexy. 385 "jspaeth@cityofutica.com" (1048797696) 00:56:47.160 --> 00:56:53.670 Yeah, it's been taking pizza caregivers, so he's been taking care of or some boot transfer. John's been there. 386 "jspaeth@cityofutica.com" (1048797696) 00:56:53.670 --> 00:56:58.080 Um, and haven't had a a procedure done. 387 "jspaeth@cityofutica.com" (1048797696) 00:56:58.080 --> 00:57:15.540 Uh, about a week ago, so he had a follow up appointment for yeah, I found the church. Okay. Um, we can come to church. 388 "jspaeth@cityofutica.com" (1048797696) 00:57:15.540 --> 00:57:18.540 That's good. That's what I have introduced.