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HomeMy WebLinkAboutNorth Fork Community Resource Center Capital Project NEWYORK Empire State STATE OF OPPORTUNITY Development , RECEIVED CERTIFIED MAIL RETURN RECEIPT REQUESTED February 9, 2022 Honorable Denis Noncarrow oll o Towyn Clerk Southold Town Clerk 53095 Route 25--PO Box 1179 Southold, NY 11971 RE: North Fork Community Resource Center Capital Project, Public Notice Dear Honorable Denis Noncarrow: I am hereby transmitting, for filing in your office, the General Project Plan of the New York State Urban Development Corporation ("UDC'), doing business as Empire State Development (the "Corporation"), together with the findings required pursuant to Sections 16-m and 10(g) of the UDC Act, for the North Fork Community Resource Center Capital Project in Suffolk County. This material is being filed pursuant to Section 16(2)of the UDC Act. In accordance with Section 16(2) of the Act and recent Legislation (S.50001/A.40001,amending subpart A of part BB of chapter 56 of the laws of 2021), a virtual public hearing to consider the Plan(s), open to all persons,will be held remotely by the Corporation on Tuesday,February 15.2022,from 2 p.m.to 4 p.m.utilizing the Zoom video communications and teleconferencing platform. Detailed instructions for participation in the virtual hearing can be viewed at https://esd.ny.gov/esd-media-center/public-notices. Additionally,the public is given an opportunity to comment on the Project(s) by submitting comments electronically to Landgprojectcomments@esd.ny.gov Subject: Comment— North Fork Community Resource Center Capital by 5:30 p.m.on Tuesday, February 15,2022. ESD is a corporate governmental agency and public benefit corporation of the State of New York created by the New York Urban Development Corporation Act of 1968 as amended. Therefore, pursuant to CPLR Section 8017, ESD is exempt from any fee which may be imposed in connection with your receipt of these materials. Sincerely, Cecilia Thomas I Loans&Grants 633 Third Avenue, New York, NY 10017 (212) 803-3621 Cecilia Thomas@esd.ny.gov Enclosure Empire State Development 633 Third Avenue,New York,NY 10017 (212)803-3100 1 www.esd.ny.gov NEWYORK Empire State STATE OF OPPORTUN"- Development FOR CONSIDERATION January 20, 2022 TO: The Directors FROM: Hope Knight SUBJECT: Regional Council Award—Southold (Long Island Region —Suffolk County) —North Fork Community Resource Center Capital—Regional Council Capital Fund (Capital Grant) REQUEST FOR: Findings and Determinations Pursuant to Section 10(g) of the Act; Authorization to Adopt the Proposed General Project Plan for the Purpose of Making a Grant;Authorization to Make a Grant and to Take Related Actions ESD Directors' Summary Community Action Southold Town Inc. d/b/a Center for Advocacy, Support & Transformation ("CAST," the "Grantee," or the "Organization"), a social services agency serving low-income individuals and families on the North Fork of Long Island, applied via the Long Island New York's Regional Economic Development Council's ("LIREDC") Consolidated Funding Application in July 2019 to acquire, renovate, and furnish a building in Greenport to serve as a resource center. Based on the LIREDC's regional goals to create a cohesive education and workforce training strategy with the goal of ensuring that workers from all of Long Island's communities are prepared to take advantage of new job opportunities in key economic growth sectors, the LIREDC recommended funding the project. In September 2020, ESD staff signed an Incentive Proposal with the Organization, agreeing to make a grant of up to $300,000 in order to pay a portion of the costs to acquire, renovate, and furnish a building in Greenport to serve as a resource center. In July 2021, ESD approved a modification to the project's scope, allowing the Organization to acquire real estate in Southold, rather than Greenport, in order to serve as CAST's new headquarters and a community resource center. The new facilities have been acquired by CAST, making them eligible for reimbursement. Total project costs were $2,800,000, including $500,000 in equity contributed by the Grantee. Because the Organization has satisfied its obligations under the Incentive Proposal, ESD is now recommending that the Board authorize the release of funds for this project. Empire State Development 633 Third Avenue,New York,NY 10017 (212)803-3100 1 www.esd.ny.gov S r General Project Plan I. Prosect Summary Grantee: Community Action Southold Town Inc. d/b/a Center for Advocacy, Support&Transformation ("CAST or the "Organization") ESD* Investment: A grant of up to $300,000 to be used for a portion of the cost of real estate acquisition * The New York State Urban Development Corporation doing business as Empire State Development "ESD" or the "Corporation") Project Location: 53930 Main Road, Southold;Suffolk County r. Proposed Project: Acquisition of real estate in order to serve as CAST's new headquarters, as well as a community resource center Project Type: Economic Growth Investment Capital Regional Council: The Long Island Regional Economic Development Council has been made aware of this item. The project is consistent with the Long Island Regional Economic Development Council Plan to create a cohesive education and workforce training strategy with the goal of ensuring that workers from all of Long Island's communities are prepared to take advantage of new job opportunities in key economic growth sectors. II. Prosect Cost and Financing Sources Financing Uses Amount Real Estate Acquisition 2,800,000 Total Project Costs'- $2,800,OOo{ Financing Sources Amount Percent Rate/Term/Lien ESD-Grant $300,000 11% Dime Bank Loan 2,000,000 71% 3.8°0/10 yrs/first lien on RE Grantee Equity 500,000 18% Total Project Financing S2,800,000 100% 2 Y III. Project Description A. Organization Industry: Social Services Organization History: Established in 1965, CAST is a social services agency serving low-income individuals and families on the North Fork of Long Island to address food, shelter, employment, and economic insecurity. CAST's mission is to provide a safety net for, as well as promote self-sufficiency to,the North Fork community. Ownership: CAST is a not-for-profit organization.- Size: CAST has a total of 14 employees, as well as approximately 80 volunteers. All facilities are located in Southold, NY. ESD Involvement: CAST applied via the Long Island New York's Regional Economic Development Council's Consolidated Funding Application in July 2019 acquire, renovate, and furnish a building in Greenport to serve as a resource center. The North Fork's popularity as a tourist destinated has spurred an increase in vineyards, hotels, and restaurants offering mostly low-wage jobs. The result was a growing number of workers under financial stress in a rural community with a cost of living about 50% higher than the national average. In September 2020, ESD made CAST an offer to make a grant of up to $300,000 in order to close a funding gap in the project budget;the Organization accepted ESD's offer in April 2021. In July 2021, ESD approved a modification to the project's scope, allowing the Organization to acquire real estate in Southold, rather than Greenport, in order to - serve as CAST's new headquarters and a community resource center. An ESD analysis and vetting of the Organization's attestations determined that without ESD assistance, the project would not have been feasible. Past ESD Support: This is the Organization's first project with ESD. B. The Project Completion: September 2021 Activity: The Organization purchased a property in Southold containing a 9,052 square-foot former church, as well as a 2,193 square-foot former parsonage. In addition to serving as CAST's new headquarters,the 3 v facilities will serve as a community resource center for low-income individual and families on the North Fork of Long Island. Results: CAST anticipates that the new facilities will allow them to serve at least 20% more families (661 families were served in 2020). The Organization will provide a multitude of educational and workforce training programs and classes, including an early literacy and parent support program, culinary and arts programs,job-readiness and employment assistance, as well as ESL (English as a Second Language), computer, and citizenship classes. CAST will also provide food, clothing, and emergency and benefit application assistance. Economic Growth Investment Project: No Benefit-Cost Analysis ("BCA") is required since these projects generate long-term benefits not captured in the short-term period used for the BCA and may involve no permanent job commitments. Grantee Contact: Cathy Demeroto, Executive Director 53930 Main Road, P.O. Box 1566 Southold, NY 11971 Phone: 631-477-1717 ESD Project No.: 133,362 Project Team: Origination Jenna Jalbert-DiMarco Project Management Jay Vido Contractor &Supplier Diversity Danah Alexander Finance Kathleen Uckert Environmental Soo Kang C. Financial Terms and Conditions 1. Upon execution of the grant disbursement agreement, the Organization shall pay a commitment fee of 1% of the $300,000 capital grant ($3,000.00) and reimburse ESD for all out-of-pocket expenses incurred in connection with the project. 2. The Organization will demonstrate no materially adverse changes in its financial condition prior to disbursement. 3. The Organization will be required to contribute a minimum of 10% of the total project cost in the form of equity contributed after the Organization's acceptance of ESD's offer. Equity is defined as cash injected into the project by the Organization or by investors, and should be auditable through Organization financial statements or Organization accounts, if so requested by ESD. Equity cannot be borrowed money secured by the assets in the project. i 4 4. Up to$300,000 will be disbursed to Grantee upon completion of the project substantially as described in these materials, and documentation of real estate acquisition project costs totaling$2,800,000, assuming that all project approvals have been completed and funds are available. Payment will be made upon presentation to ESD of an invoice and such other documentation as ESD may reasonably require. Expenses must be incurred on or after December 19, 2019,to be considered eligible project costs. All disbursements must be requested by April 1, 2023., 5. ESD may reallocate the project funds to another form of assistance, at an amount no greater than $300,000,for this project if ESD determines that the reallocation of the assistance would better serve the needs of the State of New York. In no event shall the total amount of any assistance to be so reallocated exceed the total amount of assistance approved by the Directors. 6. Grant funds will be subject to pro rata recapture if the property at the Project Location is sold within five years of disbursement of funds. The Recapture Amount is based on the time that has lapsed between when the Grant funds were disbursed and when the transfer occurred. The Recapture Amount shall be calculated by aggregating the Recapture Amount for each disbursement of the Grant,which in each instance shall be equal to: (i) 100%of the disbursed amount if the transfer occurred in,the calendar year that the disbursement was made, or in the first full calendar year after the disbursement was made; (i) 80%of the disbursed amount if the transfer occurred in the second full calendar year after the disbursement was made; (ii) 60%of the disbursed amount if the transfer occurred in the third full calendar year after the disbursement was made; (iii) 40% of the disbursed amount if the transfer occurred in the fourth full calendar year after the disbursement was made; (iv) 20%of the disbursed amount if the transfer occurred in the fifth full calendar year after the disbursement was made. IV. Statutory Basis—Regional Council Capital Fund The funding was authorized in the 2020-2021 New York State budget and reappropriated in the 2021-2022 New York State budget. No residential relocation is required as there are no families or individuals residing on the site. V. Environmental Review ESD staff has determined that the project constitutes a Type II action as defined by the New York State Environmental Quality Review Act and the,implementing regulations of the New York State Department of Environmental Conservation. No further environmental review is required 5 w in connection with the project. VI. Non-Discrimination and Contractor &Supplier Diversity Pursuant to New York State Executive Law Articles 15-A and 17-B, ESD recognizes its obligation under the law to promote opportunities for maximum feasible participation of certified Minority-and Women-owned Business Enterprises ("MWBEs") and Service-Disabled Veteran- Owned Businesses ("SDVOBs") in the performance of ESD projects and procurements. ESD Office of Contractor and Supplier Diversity have reviewed the project and have determined that there exists no potential for MWBE and SDVOB participation. As such, participation goals will not be established or required for this project. VII. ESD Employment Enforcement Policy ESD's Employment Enforcement Policy will not apply since the project will not directly create or retain jobs. VIII. ESD Financial Assistance Subject to Availability of Funds and Additional Approval The provision of ESD financial assistance is contingent upon the availability of funds and the approval of the State Division of the Budget. IX. Additional Submissions to Directors Resolutions New York State Map Project Finance Memorandum Project Photographs 6 g gra �c pia L� Y' l _ 1 pf 4Je� �Oe��F'i'0�� EY BOWES NEVUY®RI( EmlAre Stats C - -- - - �}�p• STATE OF .. .. e� Il OPPORTUNITY- Development ag9 arm ZIP 110017 $ 007-330 633 Third Avenue 02 New York, New York 10017 000 ' FR14 FEB 14 2022 Honorable Denis Noncarrow _ Southold Town Clerk 53095 Route 25 -- PO Box 1179 Southold, NY 11971 i 3 _4110 ,5481 ' ' ' . ff 7012 3464 20 - -- lt :f }ii # isilt fflff; '1bl{fi r#