Updated Meeting Packet - St. Lawrence River Valley

ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
AGENDA
~Agenda Subject to Change~
March 28, 2017 at 6:00 PM
Town of Louisville Municipal Building

Robert McNeil, Chair

March 22, 2017
Approval of Minutes

February 21, 2017 ................................................................................................. 1-2
Financial Reports

December 2016 ..................................................................................................... 3-6

Resolution: Authorizing a loan of $1,000,000 to the Ogdensburg Bridge and Port
Authority (Tabled) ................................................................................................... 7

Resolution: Authorizing Adjustments to the RVRDA FY2016 Budget ................. 8

Resolution: Accepting FY2016 Audit ............................................................... 9-26

Resolution: Authorizing a Loan of up to $150,000 to Canexsys Networks, Inc.......
............................................................................................................................ 27
Call to Order
Roll Call and Determination
of Quorum
Public Notice
Presentations
Committee Reports
Old Business
New Business
Staff Report
Public Comment
Executive Session
Adjournment
St. Lawrence River Valley Redevelopment Agency
Minutes of February 21, 2017 Meeting ~ Town of Louisville Municipal Offices, Massena, NY
Call to Order: The meeting was called to order at 6:00 PM by Vice Chairman Strait.
Roll Call/Determination of Quorum: Messrs. Strait, Carroll, Forsythe, and Murphy attend. Mr. Strait
announces there is a quorum. Ms. Wilson from NYPA is also in attendance.
Public Notice: Public notifications were sent on February 15, 2017 to, at a minimum: St. Lawrence County’s
newspapers designated for the publication of local laws and other matters required by law to be published.
Notification also sent to other local media sources and websites.
Presentations: None
Approval of Minutes: Murphy/Carroll motion/second to approve minutes of the January 17, 2017 meeting.
Motion passes unanimously.
Financial Report: Mr. Kelly explains that there is no financial report for January because the 2016 audit is
underway.
Committee Reports: There were no committee reports.
Old Business:
Resolution: Authorizing a Loan to the OBPA: No motion is made to take the resolution off the table.
Staff Reports:
 Mr. Kelly reports that:
o The $214,000 ATL loan closed in January.
o The St. Lawrence Soyway project is still under development. As the project planning
moves forward, there have been changes relating to its financing and projected electric
usage.
o Potsdam Specialty Paper received a 400 kW Preservation Power allocation from NYPA.
o Kingston Pharma is leasing 5,000 s.f. in the Lot 18 building, with an option on another
5,000 s.f.
o North Country Dairy paid off their loans from the RVRA and the IDA-LDC. NC Dairy
anticipated that the project would create 54 jobs. As of 12/31/16 87 people were employed
at the North Lawrence plant. He points out the key role that a power application from
NYPA and the RVRDA financing had played a key role in the plant’s re-start.
o A Civic Development Corporation loan was beneficial in the recently-reported opening of
the Massena Boys and Girls Club.
o The current month-to-month tenant of the Lot 17 building (IDA-owned) is in discussions
to acquire the facility.
o The first phase of the J&L cleanup is under way (helped by $18,000 of CD/EI funds). A
requested change order from the cleanup contractor may limit the number of buildings to
be demolished in phase 1. The State just awarded St. Lawrence co. a $500,000 RestoreNY
grant that will help finance a later stage of the cleanup.
 Mr. Kelly summarizes the trade shows, both in and out-of-county, that staff would be participating
in over the next 10 months.
 Mr. Kelly says he expects that the Global Search will soon start. Ms. Wilson says that the RFP
should be on the street by 2/22 and that $500,000 is set as the fee for the scope of work, with
bonuses available for performance.
 Mr. Kelly says that the CD/EI materials are available to the public and that news releases were sent
out regarding the availability of funds for the 2017 program.
Page 1
Public Comment: None
Executive Session:
At 6:20 PM, Carroll/Murphy motion to go into executive session to discuss the financial/credit histories of
specific companies. Motion passes unanimously.
At 7:58 PM Carroll/Forsythe motion a return to open session. Motion passes unanimously.
New Business: Forsythe/Carroll motion to defer principal for a year on the RVRA’s working capital lineof-credit to Curran Renewable Energy, provided that Farm Credit East agrees to similar concessions that
will assist CRE to restructure its operations. Motion passes unanimously.
Adjournment:
The meeting is adjourned at 8:01 PM, upon the motion by Murphy/Carroll. Motion passes unanimously.
Page 2
St. Lawrence County SLRVRA
Balance Sheet
January through December 2016
RVRA
ASSETS
Current Assets
Checking/Savings
202 · Cash - RVRA
202E · Cash - RVRA - Community Bank
202A · Cash - RVRA - NBT
202B · Cash - RVRA - NBT_MoneyMkt
4,500,083.29
61,723.37
1.00
202C · Cash - RVRA - Key
2,435,214.49
202F · Cash - RVRA - NBT CDRS
1,000,180.77
Total 202 · Cash - RVRA
7,997,202.92
209 · Rental Security Deposits
Total Checking/Savings
531.69
7,997,734.61
Total Current Assets
7,997,734.61
Fixed Assets
100 · Massena Lot 18 (MIB18) RVRA
100A · MIB 18 - Building [ RVRA]
359,800.00
100B · MIB 18 - Bldg Deprec [RVRA]
-46,381.98
100C · MIB 18 - Improvements
Total 100 · Massena Lot 18 (MIB18) RVRA
58,122.00
371,540.02
101 · Massena Lot 19 (MIB19) RVRA
101A · MIB 19 - Building [RVRA]
340,200.00
101B · MIB 19 - Bldg Deprec [RVRA]
-49,806.17
101C · MIB 19 - Improvements
Total 101 · Massena Lot 19 (MIB19) RVRA
Total Fixed Assets
92,540.01
382,933.84
754,473.86
Other Assets
Bad Debt Allowance
555-B · Bad Debt Allowance[RVRDA]
Total Bad Debt Allowance
-175,000.00
-175,000.00
Mortgage Receivables [RVRA]
414 · M/R - High Peaks Winery [RVRA]
415 · M/R - FirstClassAire [RVRA]
500 · M/R - SLCIDACIB [RVRA]
Total Mortgage Receivables [RVRA]
31,811.68
45,195.08
636,080.53
713,087.29
Notes Receivable - [RVRA]
511 · N/R - Swift Labs [RVRA]
510 · N/R - SLCIDA Rail Loan [RVRA]
29,364.70
750,000.00
507 · N/R - Curran LOC [RVRA]
1,354,390.68
506 · N/R - Ansen 2015 [RVRA]
226,051.52
487 · N/R - StructuralWood - [RVRA]
81,007.08
495 · N/R - City of Ogdensburg [RVRA]
15,049.12
497 · N/R - BlastBoss [RVRA]
19,835.81
498 · N/R - Riverside Iron [RVRA]
78,162.01
503 · N/R - Town of Louisville [RVRA]
1,412.78
504 · N/R - Hozmerica [RVRA]
12,740.46
505 · N/R - Hoosier [RVRA]
79,942.53
Total Notes Receivable - [RVRA]
Page 3
2,647,956.69
St. Lawrence County SLRVRA
Balance Sheet
January through December 2016
RVRA
206 · Accrued Accounts Receivable
4,021.59
210 · Accrued Interest Receivable
6,047.45
220 · Due from Affiliate
220 · Due from Affiliate - Other
Total 220 · Due from Affiliate
Total Other Assets
2,842.24
2,842.24
3,198,955.26
TOTAL ASSETS
11,951,163.73
LIABILITIES & EQUITY
Current Liabilities
Other Current Liabilities
2101 · Rental Deposit
531.69
522 · Prepaid Reveivables
523 · Accrued Expenses Payable
Total Other Current Liabilities
Total Current Liabilities
531.25
19,977.96
21,040.90
21,040.90
Long Term Liabilities
Total Liabilities
21,040.90
Equity
3900 · Net Assets - Temp Restricted
12,409,064.64
Net Income
-478,941.81
Total Equity
11,930,122.83
TOTAL LIABILITIES & EQUITY
Page 4
11,951,163.73
St. Lawrence River Valley Redevelopment Agency
Income
OPERATING REVENUE- Other
2400 · Late Fees Received
2409B · Interest Income - Banks
2409L · Interest Income - Loans
2412 · Miscellaneous Income (App Fees)
2424 · National Grid Marketing Revenue
2016 Budget
December-16
YTD
Balance
50.00
6,500.00
40,000.00
2,500.00
0.00
49,050.00
0.00
132.82
8,677.46
0.00
0.00
8,810.28
60.00
4,987.02
56,120.96
2,200.00
25,000.00
88,367.98
(10.00)
1,512.98
(16,120.96)
300.00
(25,000.00)
(39,317.98)
1,500.00
1,500.00
125.00
125.00
31,250.00
31,250.00
(29,750.00)
(29,750.00)
2,500.00
3,725.00
6,000.00
500.00
7,196.00
19,921.00
60.00
0.00
0.00
0.00
13,008.20
13,068.20
220.00
3,932.00
1,929.16
0.00
13,008.20
19,089.36
2,280.00
(207.00)
4,070.84
500.00
(5,812.20)
831.64
(18,421.00)
(12,943.20)
12,160.64
(30,581.64)
49,630.00
49,630.00
4,359.59
4,359.59
51,065.04
51,065.04
(1,435.04)
(1,435.04)
6487408 · MIB19 - Maintenance Expense
6487411 · MIB19 - Insurance Expense
6487416 · MIB19 - Utility Expense
6487499 · MIB19 - Miscellaneous Expense
6487500 · MIB19 - Depreciation Expense
100.00
4,500.00
500.00
500.00
6,804.00
12,404.00
60.00
0.00
0.00
0.00
16,058.00
16,118.00
220.00
2,999.42
0.00
0.00
16,058.00
19,277.42
(120.00)
1,500.58
500.00
500.00
(9,254.00)
(6,873.42)
Total MASSENA INDUSTRIAL BUILDING LOT19
Community Development Projects
6460450-11 - CDEIP 2011
6460450-12 - CDEIP 2012
6460450-13 - CDEIP 2013
6460450-14 - CDEIP 2014
6460450-15 - CDEIP 2015
6460450-16 - CDEIP 2016
37,226.00
(11,758.41)
31,787.62
5,438.38
0.00
0.00
0.00
0.00
22,041.94
2,250.00
24,291.94
36,150.51
4,268.59
0.00
42,800.00
58,208.94
4,500.00
145,928.04
17,455.49
14,357.41
28,848.00
207,142.00
272,993.06
440,500.00
981,295.96
(24,291.94)
(145,928.04)
(981,295.96)
0.00
0.00
0.00
0.00
0.00
450.00
0.00
19,977.96
0.00
0.00
0.00
95,000.00
115,427.96
570.80
0.00
0.00
44,300.00
300,000.00
2,272.50
2,968.75
20,202.96
0.00
0.00
15.00
95,000.00
465,330.01
(70.80)
1,000.00
50.00
4,300.00
0.00
12,727.50
231.25
29,797.04
0.00
1,000.00
985.00
(95,000.00)
(44,980.01)
MASSENA INDUSTRIAL BUILDING LOT18
2422 - MIB18 - Rent
6486408 · MIB18 - Maintenance Expense
6486411 · MIB18 - Insurance Expense
6486416 · MIB18 - Utility Expense
6486499 · MIB18 - Miscellaneous Expense
6486500 · MIB18 - Depreciation Expense
Total MASSENA INDUSTRIAL BUILDING LOT18
MASSENA INDUSTRIAL BUILDING LOT19
2423 · Rental - MIB LOT19 (Fockler)
53,606.00
18,626.00
28,848.00
249,942.00
331,202.00
445,000.00
1,127,224.00
Total COMMUNITY DEVELOPMENT PROJECTS (1,127,224.00)
Operating Expenditures
6460411 · Insurance Expense
500.00
6460418 · Underwriting/Credit Report Expense
1,000.00
6460420 · Office Supplies Expense
50.00
6460430 · Contractual Expenses to MED
48,600.00
6460431 · Contractual Expenses to IDALDC
300,000.00
6460433 · Legal Expense
15,000.00
6460434 · Accounting Expense
3,200.00
6460436 · Marketing Expense
50,000.00
6460440 · Meeting Expense
0.00
6460443 · Other Travel Expense
1,000.00
6460499 · Miscellaneous Expense
1,000.00
6460555 · Bad Debt Allowance Expense
0.00
Total RVRA Operating Expenditures
420,350.00
Total Revenue $ 100,180.00 $ 13,294.87 $ 170,683.02 $
(70,503.02)
Total Expenditures $ 1,579,899.00 $ 168,906.10 $ 649,624.83 $
930,274.17
Net Income $ (1,479,719.00) $ (155,611.23) $ (478,941.81) $ (1,000,777.19)
Page 5
St. Lawrence River Valley Redevelopment Agency
Check Register
Date
Sales Receipt
Check
Check
Check
Check
Check
Deposit
Sales Receipt
Sales Receipt
Sales Receipt
Sales Receipt
Sales Receipt
Sales Receipt
Check
Sales Receipt
Sales Receipt
Sales Receipt
Sales Receipt
Sales Receipt
Check
Check
Check
Deposit
Deposit
Deposit
12/01/2016
12/01/2016
12/01/2016
12/01/2016
12/01/2016
12/01/2016
12/01/2016
12/06/2016
12/06/2016
12/09/2016
12/09/2016
12/09/2016
12/09/2016
12/13/2016
12/15/2016
12/15/2016
12/19/2016
12/21/2016
12/28/2016
12/31/2016
12/31/2016
12/31/2016
12/31/2016
12/31/2016
12/31/2016
Ck Num
378
1664
1665
1666
1667
1668
388
389
394
395
396
397
1669
407
408
412
413
415
1670
1671
1672
Name
Memo
Beginning Balance for Dec 2016 $
North Country Dairy
Final Payment
SLCIDALDC
50% to IDALDC
Ogdensburg Growth Fund Dev Corp 50% to OGF
Town of Massena.
WINTER CHILL
Pease and Gustafson, LLP
Legal Costs
Fockler Industries, LLC
Alcoa Diversification
NBT Bank
Interest
James Besaw
December Payment
Ansen Corp
December Payment
GMEDF
December Payment
SLCIDA
December Payment
Kingston Pharma LLC
December Payment
High peaks Winery LLC
December Payment
Ogdensburg Growth Fund Dev Corp 50% to OGF
GMEDF
December Payment
SLCIDA
December Payment
City of Ogdensburg
December Payment
Town of Louisville
December Payment
Development Auth. of the North Country
Reimb of Alcoa Diversification
Massena Electric Dept
MIB Utility Costs
Village of Massena, Water Dept
MIB Utility Costs
SLC IDA
Maint cost of MIB
Key Bank
Interest
NBT Bank
Interest
NBT Bank
CDRS Interest
Ending Balance for Dec 2016 $
Page 6
Amount
8,001,815.75
14,404.15
-7,202.07
-1,867.95
-22,041.94
-450.00
-4,500.00
1.99
125.00
3,738.99
2,481.72
4,156.76
1,166.67
252.45
-1,430.90
706.22
2,813.13
402.32
673.39
2,250.00
-266.91
-36.68
-120.00
1.37
2.07
127.39
7,997,202.92
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
Resolution No. RVR-16-09-10 (Tabled)
September 13, 2016
AUTHORIZING A LOAN OF $1,000,000 TO
OGDENSBURG BRIDGE AND PORT AUTHORITY
WHEREAS, the St. Lawrence County River Valley Redevelopment Agency seeks to
actively participate in economic development projects which result in the creation of jobs and
improvements to regional infrastructure, and
WHEREAS, the Ogdensburg Bridge and Port Authority (the “OBPA”) has received a variety
of grants and loans of $26,557,066 for improvements at the expansion of their Airport facilities, and
WHEREAS, the OBPA is also undertaking efforts to expand their Port facilities, and
WHEREAS, OBPA has requested the St. Lawrence River Valley Redevelopment Agency
provide $1,000,000 in working capital funding to assist with the completion of these projects, and
WHEREAS, the OBPA has an unencumbered property (OBPA Building #11) they will offer
as collateral for the requested loan, and
NOW, THEREFORE, BE IT RESOLVED the St. Lawrence River Valley Redevelopment
Agency agrees to authorize the St. Lawrence County Industrial Development Agency Local
Development Corporation to lend $1,000,000 from the St. Lawrence River Valley Economic
Development Fund to the OBPA, and
BE IT FURTHER RESOLVED that said loan of $1,000,000 shall be subject to the
following terms and conditions:
1. Interest Rate: [Tabled]
2. Term:
[Tabled]
To Table:
Move:
Second:
VOTE
Carroll
McNeil
Murphy
Paquin
Strait
Paquin
Murphy
AYE
NAY
ABSTAIN
ABSENT
X
X
X
X
X
I HEREBY CERTIFY that I have compared this copy of this
Resolution with the original record in this office, and that the
same is a correct transcript thereof and of the whole of said
original record.
/s/
Lori Sibley
Page 7
September 13, 2016
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
Resolution No. RVR-17-03-xx
March 28, 2017
AUTHORIZING ADJUSTMENTS TO THE ST. LAWRENCE RIVER VALLEY
REDEVELOPMENT AGENCY 2016 BUDGET
WHEREAS, Resolution RVR-15-10-10, adopted October 20, 2015, approved the 2016
Budget for the St. Lawrence River Valley Redevelopment Agency, and
WHEREAS, certain Agency expenditure and revenue accounts in the 2016 Budget
require modification,
NOW, THEREFORE, BE IT RESOLVED that St. Lawrence River Valley
Redevelopment Agency staff is directed to make the following modifications to the Agency’s
2016 Budget:
2409L · Interest Income - Loans
2422 - MIB Lot 18 Rent
2425 · National Grid Marketing Revenue
6460430 · Contractual Expenses to MED
6460432 · Other Legal Expense
6460436 - Marketing
6460450-11 · CDEIP 2011
6460450-12 · CDEIP 2012
6460450-13 · CDEIP 2013
6460450-14 · CDEIP 2014
6460450-15 · CDEIP 2015
6460450-16 · CDEIP 2016
6460555 · Bad Debt Expense
6486416 · MIB18 - Utility Expense
6486500 · MIB18 - Depreciation Expense
6487500 · MIB19 - Depreciation Expense
Move:
Second:
VOTE
McNeil
Strait
Murphy
Carroll
Forsythe
AYE
NAY
ABSTAIN
ABSENT
2016
Budget
40,000
1,500
0
48,600
15,000
50,000
53,606
18,626
28,848
249,942
331,202
445,000
0
6,000
7,196
6,804
Modified
Budget
56,121
31,250
25,000
44,300
2,273
20,203
36,151
4,269
0
42,800
58,209
4,500
95,000
1,929
13,008
16,058
Change
16,121
29,750
25,000
(4,300)
(12,728)
(29,707)
(17,456)
(14,358)
(28,848)
(207,142)
(272,993)
(440,500)
95,000
(4,071)
5,815
9,254
I HEREBY CERTIFY that I have compared this copy of
this Resolution with the original record in this office, and
that the same is a correct transcript thereof and of the
whole of said original record.
/s/
Lori Sibley
Page 8
03/28/17
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
Resolution No. RVR-17-03-xx
March 28, 2017
ACCEPTING 2016 AUDIT
WHEREAS, the St. Lawrence River Valley Redevelopment Agency has appointed the
firm of Pinto, Mucenski, Hooper, VanHouse and Company PC as its auditor for the years 2015
through 2017, and
WHEREAS, Pinto, Mucenski, Hooper, VanHouse and Company PC has submitted the
attached document entitled “St. Lawrence River Valley Redevelopment Agency Financial
Statements, December 31, 2016 and 2015;”
NOW, THEREFORE, BE IT RESOLVED that the St. Lawrence River Valley
Redevelopment Agency accepts and approves said report.
Move:
Second:
VOTE
McNeil
Strait
Murphy
Carroll
Forsythe
AYE
NAY
ABSTAIN
ABSENT
I HEREBY CERTIFY that I have compared this copy
of this Resolution with the original record in this office,
and that the same is a correct transcript thereof and of
the whole of said original record.
/s/
Lori Sibley
Page 9
03/28/17
S T. LA W RE N CE R IV E R V A L LE Y
RE D EV E LO P M EN T A G E NC Y
FI NA NC IA L S T A TEM EN T S AN D
SUP P L EM EN TA RY I N FO RM AT IO N
YE AR S E ND E D D E C E M B ER 3 1 , 2 0 1 6 a nd 2 0 1 5
Page 10
S T. LA W RE N CE R IV E R V A L LE Y R ED E VE L O P M EN T A G E N CY
P age s
I NDE P E ND E NT AUDI T OR ’ S R E P O RT
1 - 2
FI N AN CI AL ST AT E ME NT S
Sta te me n t s o f F i na nc ia l P o sit io n
Dece mb er 3 1 , 2 0 1 6 And 2 0 1 5
3
Sta te me n t s o f Ac ti v it ie s
fo r t he Yea r s E nd ed Dec e mb er 3 1 , 2 0 1 6 a nd 2 0 1 5
4
Sta te me n t s o f C as h F lo ws
fo r t he Yea r s E nd ed Dec e mb er 3 1 , 2 0 1 6 a nd 2 0 1 5
5
No te s to Fi na n ci al St at e me n t s
6 - 10
SUP P LE M ENT ARY I N F OR M AT I O N
11 - 12
Rep o r t o n I n ter na l Co n tr o l a nd Co mp li a nce
Page 11
13 - 15
IN D EP EN D EN T AU D I TO R' S R E P O R T
B o ar d o f D ir e cto r s
St. La wr e nc e Ri v er V al l e y R ed e ve lo p me n t Ag e n c y
Ca n to n, Ne w Yo r k
Re po rt o n t he F i na n cia l St a t e me nt s
W e ha v e a ud i ted t h e ac co mp a n yi n g f i na nc ia l s tat e me n ts o f t h e S t. La wr e nc e R i ver V al le y
Red e velo p me nt Age n c y ( S L RV R A) ( a no np r o f it o r ga n iz at io n) , wh ic h co mp r i se t he st ate me nt s
o f fi na n ci al p o s it io n a s o f D ece mb er 3 1 , 2 0 1 6 and 2 0 1 5 , and t h e r ela ted s ta te me n t s o f
act i vi tie s a nd ca s h flo ws fo r t h e year s t he n end ed , a nd t he r e la ted no t e s to t he fi n a nc ial
st ate me nt s.
Ma na g em e nt’ s Re sp o n si b ili ty f o r t he F ina nc ia l Sta tem en ts
Ma na ge me nt i s r e sp o n s ib le f o r t h e p r ep ar a tio n a nd fa ir p r e se n ta tio n o f t he se fi na n ci al
st ate me nt s i n acco r d a nc e wi t h ac co u nt i n g p r i nc ip le s ge n er a ll y a ccep ted in t he U n it ed S ta te s
o f A mer ic a; t hi s i nc l ud es t he d e si g n, i mp le me nt at io n, a nd ma i nt e na nc e o f i n ter n al co ntr o l
r ele v a nt to t he p r ep ar a t io n a nd fa ir p r e se nt at io n o f f i na nc ia l s tat e me n ts t h at ar e fr e e f r o m
ma ter ia l mi s s tat e me n t, wh et h er d ue to fr a ud o r er r o r .
A ud i to r’ s R esp o n sib il it y
O ur r e sp o ns ib i li t y i s to exp r e ss a n o p i nio n o n t he se f i na nc ia l s ta te me n t s b a sed o n o u r a ud i ts .
W e co nd uct ed o ur a ud i ts i n ac co r d a nc e wi t h aud it i n g sta nd ar d s g e ne r all y acc ep ted i n t h e
U ni ted St at es o f A me r ica a nd t he sta nd ar d s ap p li cab l e to f i na nc ia l a ud i t s co n ta i ned i n
Go ve rn m en t A u d it in g S ta n d a rd s, i s s ued b y t he Co mp tr o ll er Ge ne r al o f t h e U ni ted S ta te s .
T ho se s ta nd ar d s r eq u ir e t ha t we p l a n a nd p er fo r m t he a ud i t to o b t ai n r ea so nab l e a s s ur a n ce
ab o u t wh et h er t h e fi n a n cia l sta te me n t s a r e fr e e fr o m mat er i al mi s sta te m en t.
An a ud it i n vo l v es p er f o r mi n g p r o c ed ur e s to o b tai n a ud i t e v id e n ce ab o ut t h e a mo u n ts a nd
d is clo s ur e s i n t h e f i na nc ia l s tat e me n ts . T he p r o ced ur e s s ele ct ed d e p end o n t he a ud ito r ’s
j ud g me nt , i nc l ud i n g t he as se s s me n t o f t he r is k s o f ma ter i al mi s s ta te m en t o f t he f i na n cia l
st ate me nt s, wh e t h er d u e to fr a ud o r er r o r . I n ma k i n g t ho se r i s k a ss es s me n t s, t he a ud ito r
co n s id er s i n ter na l co ntr o l r ele v a nt to t he e n ti t y’ s p r ep ar at io n a nd fa i r p r ese n ta tio n o f t h e
f i na nc ia l s ta te me n t s i n o r d er to d es i g n a ud i t p r o ced ur es t ha t ar e ap p r o p r ia te i n t h e
cir c u ms t a nc es , b u t no t fo r t h e p ur p o se o f e xp r es si n g a n o p i n io n o n t h e ef f ect i ve n es s o f t he
en ti t y’ s i nt er nal co n tr o l . Ac co r d i n g l y, we e xp r es s no s uc h o p i n io n. An a ud i t al so i nc l ud e s
ev al ua ti n g t h e ap p r o p r iat e ne ss o f acco u n ti n g p o li cie s us ed a nd t h e r ea so nab le n es s o f
si g n i fi ca nt ac co u nt i n g es ti ma te s mad e b y ma na g e me n t, a s we ll a s e va l ua ti n g t he o v er a ll
p r es e nta tio n o f t h e fi n a n cia l sta te me n t s.
W e b eli e ve t h at t he a ud it e v id e nc e we ha v e o b t ai ned i s s u f fi ci e nt a nd a p p r o p r iat e to p r o v id e
a b a si s fo r o ur a ud i t o p i nio n .
Page 12
Op i nio n
I n o ur o p i n io n, t he f i n an cia l s tat e me n ts r e f er r ed to
r esp ect s, t he fi na n ci al p o si tio n o f t h e S L RV R A as o f
ch a n ge s i n i ts n et a ss e ts a nd i t s ca s h f lo ws f o r t he
acco u nt i n g p r i nc ip le s g e ner al l y a ccep ted i n t h e U ni ted
ab o ve p r e se nt fa ir l y, i n al l ma ter ia l
D ece mb er 3 1 , 2 0 1 6 a nd 2 0 1 5 , a nd t h e
ye ar s t h e n e nd e d i n ac co r d a n ce wi t h
Sta te s o f Ame r ic a.
Ot he r Ma tt er s
Oth e r I n fo rma tio n
O ur aud it wa s co nd uct e d fo r t he p ur p o se o f fo r mi n g a n o p i nio n o n t he f i na nc ia l st ate me nt s a s
a wh o le. T he acco mp a n yi n g sc hed u le o f f u n ct io n al e xp e n s es o n P a g e 1 2 i s p r e se n ted fo r
p ur p o se s o f ad d i tio na l an al ys i s a nd i s no t a r e q ui r ed p ar t o f t he f i na n cia l st at e me n ts . S uc h
in f o r ma tio n i s t he r e sp o n sib il it y o f ma na g e me n t and wa s d er i v ed f r o m a nd r el at es d ir ec tl y to
th e u nd er l yi n g ac co u nt i n g a nd o t h er r eco r d s u s ed to p r ep ar e t he f i na n cia l s tat e me n t s. T he
in f o r ma tio n h as b ee n s ub j ect ed to t he a ud i ti n g p r o ced ur e s ap p li ed i n t h e a ud i t o f t he
f i na nc ia l s tat e me n ts a nd cer ta i n ad d iti o nal p r o c ed ur e s, i nc l ud i n g co mp ar i n g a nd r e co nci li n g
s uc h i n fo r ma tio n d ir ec tl y to t he u nd er l yi n g ac c o u n ti n g a nd o t her r eco r d s u sed to p r ep ar e t he
f i na nc ia l st ate me nt s o r to t he fi n a nc ial st ate me n t s t he ms e l ve s, and o t h er ad d i tio na l
p r o ced ur e s i n acco r d a nc e wi t h a ud it i n g st a nd ar d s g e ner a ll y ac cep t ed i n t he U n it ed Sta te s o f
A mer ica. I n o ur o p i n io n, t h e i n fo r ma t io n i s fai r l y s tat ed , i n a ll ma ter ia l r esp ec ts , i n r e lat io n
to t he fi n a nci al s tat e me nt s a s a wh o l e.
O t he r R epo rt i ng Re qu i red by Go v er nm en t Aud iti ng Sta nd a rd s
I n ac co r d a nc e wi t h Go vern men t A u d it in g S ta n d a rd s , we ha ve al so i s s ued o ur r ep o r t d at ed
Mar c h 1 5 , 2 0 1 7 , o n o u r co n s id er a tio n o f t he S L RV R A’ s i nt er na l c o nt r o l o ver f i na n cia l
r ep o r ti n g a nd o n o ur t es ts o f i t s co mp li a nce wi t h ce r ta i n p r o v is io n s o f la ws , r e g ula tio n s,
co n tr a ct s, gr a nt a gr ee m en t s and o t her ma tter s. T he p ur p o se o f t hat r e p o r t is to d e sc r ib e t h e
sco p e o f o ur t es ti n g o f i nter n al co ntr o l o ver f i na nc ia l r ep o r ti n g a nd co mp l ia nc e a nd t he
r es u lt s o f t h at te st i n g, and no t to p r o v id e a n o p i n io n o n i n ter n al co n tr o l o v er fi n a nci al
r ep o r ti n g o r o n co mp li an ce. T hat r ep o r t i s an i nt e gr a l p ar t o f a n aud it p er fo r me d i n
acco r d a n ce wi t h Go ve r n men t A u d i tin g S ta n d a rd s i n co n sid er i n g t he S L R V R A’ s i nte r nal
co n tr o l o ver f i na nc ia l r e p o r ti n g a nd co mp li a nce.
Mar c h 1 5 , 2 0 1 7
Page 13
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2016 AND 2015
12/31/2016
12/31/2015
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents
Cash - Security Deposits
Accounts Receivable
Accrued Interest Receivable
Due from Affiliate
Mortgages and Notes Receivable (Net of Allowance)
$
Total Current Assets
Fixed Assets - Net
LONG-TERM ASSETS
Mortgages and Notes Receivable - Net of Current Portion
TOTAL ASSETS
7,997,203
532
4,022
6,047
2,842
2,065,857
$
9,942,851
531
2,161
1,805
440,710
10,076,503
10,388,058
754,474
783,540
1,120,187
1,277,275
$
11,951,164
$
12,448,873
$
19,978
531
532
$
36,188
3,089
531
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts Payable
Deferred Rental Revenue
Security Deposits Payable
Total Current Liabilities
NET ASSETS
Temporarily Restricted
TOTAL LIABILITIES AND NET ASSETS
$
Page 14
21,041
39,808
11,930,123
12,409,065
11,951,164
$
12,448,873
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
STATEMENTS OF ACTIVITIES
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
2016
Temporarily
Restricted
Unrestricted
SUPPORT AND REVENUE
Rental Income
Interest Income - Banks
Interest Income - Loans
Grant Income
Miscellaneous Income
Net Assets Released
from Restrictions
$
Total Support and Revenue
-
$
Totals
82,315
4,987
56,121
25,000
2,260
$
2015
Temporarily
Restricted
Unrestricted
82,315
4,987
56,121
25,000
2,260
$
-
$
Totals
48,709
7,011
43,425
59,715
2,368
$
48,709
7,011
43,425
59,715
2,368
649,625
(649,625)
-
871,522
(871,522)
-
649,625
(478,942)
170,683
871,522
(710,294)
161,228
EXPENSES
Program Services
Management and General
643,797
5,828
-
643,797
5,828
865,257
6,265
-
865,257
6,265
Total Expenses
649,625
-
649,625
871,522
-
871,522
CHANGE IN NET ASSETS
-
Net Assets - Beginning of Year
-
Net Assets - End of Year
$
-
(478,942)
$
(478,942)
12,409,065
12,409,065
11,930,123
$ 11,930,123
Page 15
-
$
(710,294)
(710,294)
-
13,119,359
13,119,359
-
$ 12,409,065
$ 12,409,065
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
12/31/2016
OPERATING ACTIVITIES
Change in Net Assets
$
ADJUSTMENTS TO RECONCILE CHANGE IN NET ASSETS TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Depreciation
Bad Debt Reserve
Changes in Operating Assets and Liabilities
Cash - Security Deposits
Accrued Interest Receivable
Accounts Receivable
Due from Affiliate
Accounts Payable
Deferred Rental Revenue
Security Deposits Payable
Net Cash Provided (Used) By Operating Activities
INVESTING ACTIVITIES
New Mortgages and Notes
Payments Received on Mortgages and Notes
Fixed Asset Purchases
Net Cash Provided (Used) By Investing Activities
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - Beginning of Year
CASH AND CASH EQUIVALENTS - END OF YEAR
$
(710,294)
29,066
95,000
22,789
80,000
(1)
(4,242)
(1,861)
(2,842)
(16,210)
(2,558)
1
(531)
820
(2,161)
35,327
651
531
(382,589)
(572,868)
(2,378,231)
815,172
-
(157,287)
445,789
(949)
(1,563,059)
287,553
(1,945,648)
(285,315)
9,942,851
$
Page 16
(478,942)
12/31/2015
7,997,203
10,228,166
$
9,942,851
S T. LA W RE N CE R IV E R V A L LE Y R ED E VE L O P M EN T A G E N CY
NO T ES TO F IN AN CI A L S TA T EM EN T S
DE C EM B ER 3 1 , 2 0 1 6
NO T E 1 -
H I S TO R Y A ND B A S IS O F F IN AN CI A L S TA T EM EN T P R E S EN T A TI O N
T he S t. La wr e nc e R i ve r Val le y Red e v elo p me n t Age nc y ( S L R V R A) i s a j o int
act io n a g e nc y fo r me d o n J u ne 2 , 2 0 1 0 to ma k e u se o f c er ta i n Ne w Yo r k P o wer
Au t ho r it y ( NYP A) a s se t s fo r t he p ur p o s e s o f e co no mi c d e ve lo p me n t i n t he S t.
L a wr e n ce Va lle y a nd s u r r o u nd i n g co m m u n i tie s. U nd er t he 2 0 1 0 a gr ee me n t, t he
Ne w Yo r k P o wer Au t ho r it y ma d e a v ai lab le fo r e co no mi c d e ve lo p me n t p ur p o se s a
$ 1 6 mil lio n f u nd a nd 2 0 me g a wa t ts o f el ectr ic al p o we r ge ner at io n fr o m h yd r o elec tr ic fac il it ie s si t uat e d o n t h e S t. La wr e nc e R iv er . A p a r al le l a gr e e m en t, a lso
d ated J u ne 2 , 2 0 1 0 , b et we e n t he S LR VR A a nd t h e S t. La wr e nc e Co u n t y
I nd u str ia l D e ve lo p me n t Ag e nc y Lo ca l De ve lo p m en t Co r p o r a tio n ( S LC I D A - L D C)
p r o v id ed t he me c ha n i s m fo r ad mi n i st er i n g t he se as se t s. T he S LRV R A ha s no
e mp lo ye es .
As p er t h e 2 0 1 0 a g r e e me nt s, NYP A had p r o vi d ed t h e $ 1 6 mi l lio n to t h e
S L RV R A a nd t he S LC I D A- LD C.
O n Oc to b e r 1 8 , 2 0 1 3 , NYP A e x ec ut ed a n
agr ee me n t wi t h t he M as se n a El ectr ic Dep ar t me n t ( a s p r o p o sed i n th e 2 0 1 0
agr ee me n t s) t h at mad e t he 2 0 me g a wa t ts o f ele c tr ic it y al lo ca ted to t he S L RV R A
av ai lab l e fo r eco no mi c d ev elo p me n t p r o j e ct s i n St. La wr e nc e Co u nt y.
NO T E 2 -
SUM M ARY O F S I G NI FI CA NT A CCO UN T I N G PO LI C I ES
T he f i na nc ia l st at e me n t s o f St. La wr e n ce R i ve r Vall e y R ed e ve lo p me n t Age nc y
( S LRV R A) h a ve b ee n p r ep ar ed o n t he accr u al b as is . T h e si g n i fi ca nt a cco u nt i n g
p o lic ie s fo l lo wed a r e d e scr ib ed b elo w to e n h a nc e th e us e f ul ne s s o f t he f in a nc ial
st ate me nt s to t h e r e ad er .
F ina nc ia l St a t e me nt P r ese nt a t io n
T he S L R V R A ha s ad o p ted F AS B A S C 9 5 8 - 2 0 5 .
Und er t h i s s ta n d ar d , t he
S LRV R A i s r eq u ir ed to r ep o r t i n fo r mat io n r e g ar d i n g i t s fi na n ci al p o s itio n a nd
act i vi tie s a cco r d i n g to thr ee c la s se s o f net as se ts : u nr e str ic ted n et a s set s,
te mp o r ar il y r e str ic ted ne t a s se ts, a nd p er ma ne n tl y r e str ict ed ne t a s set s. I n
ad d it io n, t he S LRV R A is r eq uir ed to p r e se nt a sta te me n t o f ca s h f lo ws . As
p r o v id ed b y t hi s s ta te m en t, t he S L RV R A ha s ar r an g ed it s fi n a nc ial st at e me nt s to
p r es e nt t he t hr ee cl as s es o f n et a ss et s r eq u ir ed , a s ap p li cab l e.
Co nt ri bu t io n s
T he S L R V R A ha s a l so ad o p ted F A S B A S C 9 5 8 - 6 0 5 . I n a cco r d a n ce wi t h t h is
st a nd ar d , co ntr ib ut io ns r ece i ved ar e r e co r d e d as u nr e str ict ed , te mp o r ar i l y
r es tr i cted , o r p er ma ne n tl y r e str ic ted s up p o r t d ep e nd i n g o n t he e x is te nce o r
na t ur e o f a n y d o no r r e st r ict io n s.
Us e o f E st i ma t e s
T he p r ep ar a tio n o f fi na n cia l st at e me n ts i n co n fo r mit y wi t h a cco u nt i n g p r i ncip le s
ge n er a ll y ac cep ted i n t h e U ni ted S ta te s o f Amer ica r eq u ir e s ma na g e me n t to ma k e
es ti ma te s a nd as s u mp tio n s t hat a f f ect c er ta i n r e p o r ted a mo u nt s a nd d is clo s ur e s.
Acco r d i n gl y, ac t ua l r e s u lt s co u ld d i f f er fr o m t ho se es ti ma t es .
Page 17
NO T E 2 -
SUM M ARY O F S I G NI FI CA NT A CCO UN T I N G PO LI C I ES ( Co n ti n u e d )
Ca s h a n d Ca s h Eq u iv a l ent s
Fo r t he p ur p o se s o f r ep o r ti n g ca s h f lo ws , ca s h a nd ca s h eq u i va le n ts i n cl ud e ca s h
o n h a nd , a mo u nt s d u e f r o m b a n k s, a nd sa vi n g s i n str u me n t s wi t h a ma tu r i t y o f
le ss t ha n t hr e e mo n t hs.
M o rt g a g es a n d No t e s R eceiv a b le
Mo r t ga g es a nd no te s r ecei v ab l e ar e r ep o r ted a t t he ir p r i n cip a l a mo u n t s
o ut s ta nd i n g, n et o f a llo wa n ce s fo r p o s sib le cr ed it lo ss e s. I nt er e st r e ve n ue o n t h e
mo r t ga ge s a nd no te s ar e a cr ed it to i nt er e st i nco me b a sed o n lo a n p r i ncip al
a mo u n t s o ut s ta nd i n g at ap p r o p r ia te i nt er e st r at e s.
Te mp o ra r ily Re st rict ed Net A ss et s
T he te mp o r ar i l y r e s tr ic t ed n et a s se ts r ep r e se n t a ct i vi t y r el at ed to a $ 1 6 ,0 0 0 ,0 0 0
gr a n t fr o m t he Ne w Yo r k P o we r Au t ho r it y.
In co me Ta xe s
T he S LRV R A is e x e mp t f r o m f ed er a l i nco me t a x u nd er Se ct io n 5 0 1 ( c) ( 3 ) o f t h e
I n ter na l R e ve n ue Co d e and i s al so d ul y e stab li s hed u nd er S ect io n 4 0 2 o f t he
No t - Fo r -P r o fi t Co r p o r at io n la w o f t he S ta te o f Ne w Yo r k. Fo r t a x r ep o r ti n g
p ur p o se s, t h e acco u n t s o f t he S LR VR A ar e co n so lid a ted wit h t ho s e o f t h e
S L CI D A- L D C fo r r ep o r t in g a s a co mb i n ed e n ti t y .
Adv ert i s ing
T he S L R V R A e xp e ns e s ad ver ti si n g co s t s as th e y ar e i n c ur r ed . A d ver ti s i n g
exp e ns e s fo r t he ye ar s end ed D ece mb er 3 1 , 2 0 1 6 a nd 2 0 1 5 we r e $ 2 0 , 2 0 3 a nd
$ 3 6 ,9 4 6 , r e sp e ct i vel y.
De prec ia t io n
Dep r e cia tio n i s c alc u la t ed o n b ui ld i n g s a nd i m p r o ve me nt s o n t he s tr a i g ht - l i ne
me t ho d o v er t he a ss et s es ti ma ted u se f ul l i fe . D ep r ec iat io n e xp e n se fo r th e ye ar s
end ed D ece mb er 3 1 , 2 0 1 6 a nd 2 0 1 5 we r e $ 2 9 ,0 6 6 , a nd $ 2 2 ,7 8 9 , r e sp ec t iv el y.
NO T E 3 -
M O RT GA G E S AN D N O T E S R E C E IV AB L E
T he S L R V R A c ar r i es i ts mo r t ga ge s a nd no t e s r ecei v ab le at co st r ec o g n izi n g
in ter es t i n co me o n t h e a ccr ua l b as i s a s sp eci f ied in t he var io us a gr ee me nt s. T h e
S LRV R A e va l uat e s t he co ll ect ab i li t y o f it s mo r tg a ge s a nd no te s r e cei v ab le a nd
th e B o ar d es tab li s he s wr i te -o f f s wh e n co n s id er ed nec e ss ar y. T h er e wer e no
wr i te -o f f s d ur i n g t he y ear s e nd ed D ece mb er 3 1 , 2 0 1 6 a nd 2 0 1 5 . T h e a mo u n t
ad d ed to t he lo a n lo s s r ese r ve at De ce mb er 3 1 , 2 0 1 6 a nd 2 0 1 5 wa s $ 9 5 ,0 0 0 a nd
$ 8 0 ,0 0 0 , r e sp ec ti v el y. T he lo a n lo s s r e ser v e at D ece mb er 3 1 , 2 0 1 6 and 2 0 1 5
wa s $ 1 7 5 ,0 0 0 a nd $ 8 0 , 0 0 0 , r e sp ec ti ve l y.
Page 18
NO T E 3 -
M O RT GA G E S AN D N O T E S R E C E IV AB L E ( Co nt i n ued )
Mo r t ga g es a nd no te s r ecei v ab l e b a la nc es at Dece mb er 3 1 , 2 0 1 6 a nd 2 0 1 5
co n s is ted o f t he fo l lo wi n g:
Ansen
BlastBoss, Inc.
City of Ogdensburg
Curran Renewable Energy
First Class Aire
High Peaks Winery
Hoosier Magnetics
Hozmerica, LLC
Massena BDC Rail
NC Dairy, LLC
Nicholville Telephone Co.
Riverside Iron, LLC
SLCIDA - CIB
SLCIDA Rail Loan
SLIC Network Solutions
Structural Wood
Swift Labs
Town of Louisville
Town of Massena
Date
Due
Interest
Rate
Original
Amount
03/04/16
06/17/14
01/26/15
03/16/16
09/12/14
04/30/14
09/18/15
07/21/15
05/05/14
12/02/11
12/09/11
06/27/14
12/04/14
08/30/16
12/09/11
12/20/11
09/22/16
03/23/15
11/19/13
03/01/16
05/01/19
01/26/20
03/01/17
09/01/29
05/01/29
09/01/20
07/01/20
12/30/16
12/01/16
12/01/18
07/01/24
11/01/21
09/01/19
12/01/18
12/01/21
10/01/23
03/01/17
03/01/16
2.750%
2.650%
1.000%
2.750%
2.625%
2.625%
2.625%
2.625%
0.000%
2.625%
4.000%
2.625%
1.000%
1.500%
4.000%
2.625%
2.750%
1.000%
1.000%
$ 241,954
37,788
23,532
1,356,278
51,500
36,500
100,000
17,500
197,504
400,000
388,926
100,000
700,000
750,000
436,074
150,000
30,000
16,000
60,557
Less Allowance for Bad Debts
Balance
2016
$
226,051
19,836
15,049
1,354,391
45,195
31,812
79,943
12,740
78,162
636,081
750,000
81,007
29,365
1,412
3,361,044
(175,000)
$ 3,186,044
Balance
2015
$
27,667
19,302
47,652
34,020
98,330
15,823
197,504
77,386
194,679
86,564
668,177
214,284
94,516
9,384
12,697
1,797,985
(80,000)
$ 1,717,985
F ut ur e ma t ur i ti es o f t h e mo r t ga ge s a nd no t es r e c ei vab le a r e a s fo llo ws :
Dece mb er 3 1 , 2 0 1 7
2018
2019
2020
2021
T her ea f ter
$
$
NO T E 4 -
2 ,2 4 0 ,8 5 7
1 3 2 ,4 5 7
1 3 0 ,8 2 9
1 0 7 ,5 2 7
9 1 ,0 8 9
6 5 8 ,2 8 5
3 ,3 6 1 ,0 4 4
LO AN S IN AR R EA R S
T her e a r e no lo a n s i n ar r ear s a t t h is t i me.
NO T E 5 -
LO AN S IN D EF AU L T
T her e a r e no lo a n s i n d e fa u lt at t h is ti me.
NO T E 6 -
LO AN S WR I T T EN O F F
T her e wer e no lo a ns wr it te n o f f i n 2 0 1 6 o r 20 1 5 .
r es er ve.
Page 19
S ee No te 3 fo r l o an lo s s
NO T E 7 -
CO M M UNIT Y D EV E L O P M EN T EN V IRO NM EN T A L IM PRO V EM E NT
PRO J E C TS
T he S L R V R A mad e gr a nt a war d s d ur i n g t he ye ar s 2 0 1 1 t hr o u g h 2 0 1 6 as p ar t o f
it s Co m mu n i t y De ve lo p me n t E n v ir o n me n ta l I m p r o ve me nt P r o j ec t s ( CD E I P ), as
au t ho r i zed b y t he J u n e 2 , 2 0 1 0 co ntr ac ts . T he o r i gi na l gr a n t a war d a m o u n ts a nd
exp e nd i t ur e s a s o f De ce mb e r 3 1 , 2 0 1 6 ar e as f o l lo ws :
Date of
Grant
Award
Award
NO T E 8 -
Balance
of Grant
Expended
2011
2012
2013
2014
2015
2011
2012
2013
2014
2015
2016
$
540,000
556,694
403,899
415,152
364,146
475,640
$
55,000
-
$ 254,807 $ 100,000 $
4,315 $ 72,280
483,552
53,874
15,000
194,798
140,253
40,000
59,081
208,271
40,937
-
Total
$ 2,755,531
$
55,000
$ 738,359
$ 348,672
$ 218,649
$ 361,488
2016
$
Remaining
36,151
4,268
42,800
58,209
4,500
$
17,447
28,848
105,000
265,000
471,140
$ 145,928
$
887,435
F I XE D AS S E T S
Fi x ed a s set s at Dec e mb e r 3 1 , 2 0 1 6 a nd 2 0 1 5 co n si s ted o f :
2016
Ma ss e na Lo t 1 8 - B u ild i n g a nd I mp r o ve me nt s
Ma ss e na Lo t 1 9 - B u ild i n g a nd I mp r o ve me nt s
L es s : Acc u mu l a ted Dep r eci at io n
NO T E 9 -
$ 417,922
4 3 2 ,7 4 0
8 5 0 ,6 6 2
( 9 6 ,1 8 8 )
$ 7 5 4 ,4 7 4
2015
$ 4 1 7 ,9 2 2
4 3 2 ,7 4 0
8 5 0 ,6 6 2
( 6 7 ,1 2 2 )
$ 7 8 3 ,5 4 0
SUB S E QU E N T EV E N T S
Ma na ge me nt ha s r e v ie we d a nd e val u at ed all eve n t s a nd t r a n sac tio n s f r o m
J an ua r y 1 , 2 0 1 7 t hr o u g h Mar c h 1 5 , 2 0 1 7 , t h e d a te t h e fi n a nci al st at e me nt s wer e
av ai lab l e to b e i s s ued , fo r p o s sib le d i sclo s u r e a nd , o r , r eco g n it io n i n t he
f i na nc ia l st ate me nt s. T her e wer e no e ve n t s o r tr an s act io n s t hat e x i st ed wh ic h
wo u ld p r o vid e ad d it io n al p er t i ne n t i n fo r ma tio n ab o ut co nd it io n s at t he b ala nce
s hee t d a te wh i c h ar e r eq ui r ed to b e r eco g n ized o r d is clo sed i n t he a cco m p an yi n g
f i na nc ia l s ta te me n t s.
NO T E 1 0 - CO N C EN T RA T IO N O F CR E DI T R IS K
At De ce mb e r 3 1 , 2 0 1 6 , th e S L R V R A had b a n k b ala nc e s to ta li n g $ 7 ,9 9 5 , 9 8 5 . A
co mb i na tio n o f f ed er a l d ep o s ito r y i n s ur a n ce a n d se c ur i ti es p l ed ged a n d h eld b y
th e b a n k f u l l y co ver ed t he se b a n k b a la n ce s.
Page 20
NO T E 1 1 - RE CO G N IT IO N O F C ER T A IN G R AN T R EV EN U E AN D EXP E ND I TU R E S
Occa s io na ll y, t he S L R V R A ( t h e “gr a n te e”) ap p l ie s fo r a nd r ec ei ve s gr a nt s f r o m
go ver n me nt a ge nc ie s and o t her o r g a ni zat io n s.
T h es e gr a n ts ar e u s ua ll y
“r ei mb ur s e me n t gr a nt s” , i.e., t h e mo n ie s fr o m the gr a n t ar e o nl y p a i d to th e
gr a n te e a s r e i mb ur se me nt s a ft er t h e gr a n tee ha s d o c u me n t ed to t he gr an to r t hat
th e gr a n tee ha s a c hi e v ed d e fi ned b e nc h ma r ks , p aid o ut r eq u ir ed f u nd s, a nd
o th er wi s e co mp li ed wi t h a ll o t her r eq uir ed g r a nt co nd i tio n s. P r o j ec ts in wh i c h
s uc h g r a nt s ar e i n vo l v e d o f te n sp a n se ver al fi s cal ye ar s a nd lo n g d e la ys i n t h e
r ei mb ur se me n t p r o c es s ar e fr eq ue nt .
Co n seq ue n tl y, i n ca se s i n vo l vi n g
r ei mb ur se me n t gr a nt s, t he S LR V R A d o e s no t a ccr ue e xp ec ted gr a n t r e ve n u e o r
r ece i vab l es u n ti l i t ha s co mp li ed wi t h t he co nd itio n s o f t he gr a n t a gr e e me nt( s)
and s ub mi t ted t he ne ces s a r y d o c u me n ta tio n t ha t wi l l t r i g ger t he p a y me n t
p r o ce ss.
U n ti l s uc h d o cu me n t at io n h as b e e n s ub mi tted , and a cce p ted , t he
gr a n to r s ti ll h as s ub s ta n tia l d is cr e tio n to d e n y o r r ed uce p a y me n t. Acc o r d i n g l y,
at year e nd t he S L R V R A d o e s no t ac cr ue a n y exp e ns e s o r p a yab le s a s so ci ated
wi t h i te ms to b e p a id o ut fo r f u t ur e gr a n t r ei m b ur se me n t u n ti l t h e S LRV R A is
sa ti s fi ed t ha t it ha s co mp lied wi t h all gr a n t r ei mb ur s e me n t eli g ib i li t y
r eq u ir e me n t s. T he se i te ms ar e u s ua ll y p aid o ut in t h e s ub s eq ue n t p er io d a nd wi l l
b e r eco r d ed a s p r o j ect e xp e n se s. As o f D ece mb er 3 1 , 2 0 1 6 , t h er e wer e no a ct i ve
gr a n t s o f t hi s na t ur e.
T he S LR V R A al so f u nd s a gr a nt p r o gr a m o f it s o wn – t he Co m mu n i t y
De ve lo p me n t E n v ir o n me nt al I mp r o ve me nt P r o gr a m. S i n ce t h es e gr a nt s ar e al so
r ei mb ur se me n t gr a n ts , t he S LRV R A ad o p t s t he s a me p o l ic y wh e n ac ti n g a s a
gr a n to r t h at is d es cr ib e d ab o v e wh e n it is a gr an tee , i. e., i t d o e s n ’t a ccr ue t h e
exp e ns e u n ti l t h e gr a nte e ha s d o c u me nt ed sa ti s f acto r il y t ha t it ha s co mp lied wi t h
th e gr a nt co nd it io ns . As o f D ece mb er 3 1 , 2 0 1 6 , th er e wer e no ac ti v e gr a n t s o f
th i s na t ur e.
NO T E 1 2 - RE L A T ED PA R TY T R AN SA C TI O N S
T he S L R V R A i s r ela ted to t he fo l lo wi n g e n ti ti es :
•
St. L a wr e nce Co u n t y I n d u str ia l De v elo p me n t A ge n c y Lo c al D e ve lo p me nt
Co r p o r a tio n ( S L C I D A- L DC )
- P r o gr a m Ad mi n i s tr a ti v e Agr e e me n ts .
•
Gr ea ter Ma s se na E co no mi c De ve lo p me n t F u nd ( GME DF)
- P ar ti cip a tio n Lo a n Ag r ee me n ts .
Ad mi n is tr a ti v e fe es p a i d to t he S LCI D A - L D C b y S L R V R A to t aled $ 3 0 0 ,0 0 0 fo r
b o t h 2 0 1 6 a nd 2 0 1 5 .
A p ar t ic ip a tio n lo a n a g r ee me n t b e t we e n t h e G MED F a nd t he S LR V R A r e s ul ted
in a n acco u n t p a yab l e to t he S L RV R A b y t h e GM ED F o f $ 2 ,8 4 2 at
Dece mb er 3 1 , 2 0 1 6 .
Page 21
SUP P L EM EN TA RY I N FO RM AT IO N
Page 22
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
SCHEDULE OF FUNCTIONAL EXPENSES
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
Program
EXPENSES
Advertising
Accounting
Contractual
Community Development
D & O Insurance
Depreciation
Insurance
Legal Expenses
Miscellaneous
Office Supplies
Repairs and Maintenance
Underwriting Fees
Utilities
Bad Debt Reserve
Total Expenses
2016
Management
and General
Totals
Program
2015
Management
and General
Totals
$
20,203
344,300
145,928
29,066
6,931
440
1,929
95,000
$
2,969
571
2,273
15
-
$
20,203
2,969
344,300
145,928
571
29,066
6,931
2,273
15
440
1,929
95,000
$
36,946
348,600
361,488
22,789
11,092
169
550
3,623
80,000
$
3,783
454
1,920
30
78
-
$
36,946
3,783
348,600
361,488
454
22,789
11,092
1,920
30
78
169
550
3,623
80,000
$
643,797
$
5,828
$
649,625
$
865,257
$
6,265
$
871,522
Page 23
IN D EP EN D EN T AU D I TO R’ S R EP O R T O N I NT E RN A L CO N T RO L O V ER
F I NA NC IA L R EP O R T I N G A ND O N CO M PL I AN CE A ND O T H ER M AT T E RS
B AS E D O N A N A UD I T O F F IN AN C IA L S TA T EM EN T S P E RF O RM E D I N
AC CO R DA NC E W I TH GO V E RN M ENT AU DI T IN G ST AN D A RD S
Page 24
IN D EP EN D EN T AU D I TO R’ S R EP O R T O N I NT E RN A L CO N T RO L O V ER
F I NA NC IA L R EP O R T I N G A ND O N CO M PL I AN CE A ND O T H ER M AT T E RS
B AS E D O N A N A UD I T O F F IN AN C IA L S TA T EM EN T S P E RF O RM E D I N
AC CO R DA NC E W I TH GO V E RN M ENT AU DI T IN G ST AN D A RD S
B o ar d o f D ir e cto r s
St. La wr e nc e Ri v er V al l e y R ed e ve lo p me n t Ag e n c y
Ca n to n, Ne w Yo r k
W e ha v e a ud i ted , i n acc o r d an ce wi t h t he a ud i ti n g sta nd ar d s g e ner a ll y a c cep ted i n t he U ni ted
Sta te s o f Ame r i ca a nd t he s ta nd ar d s ap p l ic ab le to f i na nc ia l a ud it s co n tai n ed i n Go ve rn men t
Au d it in g S ta n d a rd s is s ued b y t he Co mp tr o ll er Ge ner al o f t he U n ited St ate s, t he fi na n ci al
st ate me nt s o f t he St. La wr e nc e R i ver Va lle y R e d ev elo p me n t Ag e nc y ( S L R V R A) ( a no np r o fi t
o r ga n iz at io n) , wh i c h co mp r i se t he st ate me nt o f fi n a nci al p o si tio n a s o f D ece mb er 3 1 , 2 0 1 6 ,
and t he r e lat ed st ate me nt s o f a ct i vi tie s a nd c as h f lo ws f o r t he ye ar t he n e nd ed , a nd t he
r ela ted no t es to t he f i na nc ia l s tat e me n ts , a nd ha ve is s ued o ur r ep o r t t he r eo n d a t ed
Mar c h 1 5 , 2 0 1 7 .
In t er na l Co nt ro l O v e r F ina nc ia l Re po r t i ng
I n p la n ni n g a nd p er fo r mi n g o ur a ud it o f t h e f i na nc ia l s ta te me n t s, we co n sid er ed t h e
S LRV R A’ s i n ter n al co n tr o l o v er f i na nc ia l r ep o r ti n g ( i nt er na l co n tr o l) t o d ete r mi ne t h e a ud it
p r o ced ur e s t hat ar e ap p r o p r iat e i n t he cir c u ms t a nce s fo r t he p u r p o se o f e xp r e s si n g o ur
o p i nio n o n t he fi n a nci al sta te me n t s, b ut no t fo r the p ur p o se o f e xp r e s si n g a n o p i n io n o n t h e
ef f ec ti ve n e ss o f t he S L RV R A’ s i n ter na l co n tr o l. Acco r d i n g l y, we d o n o t e xp r e s s a n o p i nio n
o n t he e f f ec ti v e ne ss o f t he S L R V R A’ s i nt er na l c o nt r o l.
A d ef ic ien c y in in te rn a l co n t ro l e x is t s wh e n t he d e si g n o r o p er a tio n o f a co n tr o l d o es no t
allo w ma n a ge me nt o r e mp lo ye e s, i n t he n o r mal co ur se o f p er fo r mi n g t hei r a s si g n ed
f u nc tio n s, to p r e v e nt , o r d ete ct a nd co r r e ct, mi s s tat e me n t s o n a t i m el y b a si s. A ma te ria l
wea kn e ss i s a d e f ic ie nc y , o r a co mb i n at io n o f d e f ici e nc ie s, i n i n ter n al co nt r o l, s u c h t h at t her e
is a r ea so nab le p o s s ib i l it y t h at a ma t er ia l mi s s tat e me n t o f t he e n ti t y’ s fi n a nc ial st at e me n ts
wi l l no t b e p r e ve n ted , o r d etec ted a nd co r r ec ted o n a t i me l y b a si s. A s ig n if ica n t d ef ic ien c y
is a d e f ic ie nc y, o r a co mb i nat io n o f d e fi ci e nci e s, i n i n ter n al co ntr o l t h a t i s le s s s e ver e t h a n a
ma ter ia l we a k ne s s, ye t i mp o r ta n t e no u g h t o mer i t a tte n tio n b y t ho s e c ha r ged wi t h
go ver n a nce .
O ur co n sid e r at io n o f i nt er na l co nt r o l wa s f o r th e l i mi ted p ur p o se d esc r ib ed i n t he f ir st
p ar a gr ap h o f t h i s sec tio n a nd wa s no t d e si g n ed to id e nt i f y a ll d e f ici e nc ie s i n i n ter na l co ntr o l
th at mi g h t b e ma te r ia l wea k ne s se s o r s i g ni f ica n t d ef ic ie nc ie s. G i ve n t h e se l i mi ta tio n s, d ur i n g
o ur a ud it we d id no t i d en ti f y a n y d e f ic ie nc ie s i n i n ter na l co ntr o l t h at we c o n s id er to b e
ma ter ia l we a k ne s se s. H o we ver , ma ter i al we a k n es se s ma y e x is t t hat h a v e n o t b e e n id e nt i fi ed .
Page 25
Co mp l ia nce a n d O t he r M a t t ers
As p ar t o f o b t ai n i n g r e a so nab le a s s ur a n ce ab o ut wh e t her t he S L RV R A’ s f i na nc ia l sta te me n t s
ar e fr ee fr o m ma te r ia l mi s st at e me n t, we p e r f o r med te st s o f i t s co m p lia n ce wi t h c er t ai n
p r o v is io n s o f la ws , r e g ul at io n s, co ntr ac ts, a nd gr a n t a gr e e me n ts , no n c o mp lia n ce wi t h wh ic h
co u ld ha v e a d ir e ct a nd mat er ia l e f fec t o n t he d eter mi n a tio n o f fi n a nci al st ate me nt a mo u n ts .
Ho we v er , p r o v id i n g a n o p i nio n o n co mp li a nce wi t h t ho se p r o v is io n s was no t a n o b j ec ti ve o f
o ur a ud it, a nd acco r d i n gl y, we d o no t e xp r e s s s uc h a n o p i n io n. T he r es ul t s o f o ur te st s
d is clo sed no i ns ta nc e s o f no nco mp lia n ce o r o t her ma tt er s t h at ar e r e q ui r ed to b e r ep o r ted
u nd er Go v e rn men t A u d it in g S ta n d a rd s .
Pur po se o f t h is Re po rt
T he p ur p o s e o f t hi s r ep o r t i s so l el y to d e scr ib e t he sco p e o f o ur t es ti n g o f i nt er nal co ntr o l
and co mp li a nce a nd t h e r es u lt s o f t hat te st i n g, a nd no t to p r o vid e an o p i n io n o n t he
ef f ec ti ve n e ss o f t he O r ga n iza tio n ’ s i nt er nal co nt r o l o r o n co mp li a nce . T his r ep o r t i s a n
in te gr al p ar t o f a n a ud i t p er fo r me d i n a cco r d a nc e wi t h Go ve rn men t A u d itin g S ta n d a rd s i n
co n s id er i n g t h e Or ga n iza tio n ’ s i nt er na l co n t r o l a nd co mp lia n ce.
Ac co r d i n g l y, t hi s
co m mu n ic at io n i s no t s u itab le fo r a n y o t her p ur p o se.
Mar c h 1 5 , 2 0 1 7
Page 26
ST. LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY
Resolution No. RVR-17-03-xx
March 28, 2017
AUTHORIZING A LOAN OF UP TO $150,000 to Canexsys Networks, Inc.
WHEREAS, the St. Lawrence River Valley Redevelopment Agency (“RVRA”) seeks to
actively participate in economic development projects which result in the creation of jobs, and
WHEREAS, the RVRA has partnered with the St. Lawrence County Industrial Development
Agency Local Development Corporation (“SLCIDA-LDC”) as prescribed in certain agreements
among multiple parties dated June 2, 2010 for the purpose of providing assistance to such projects, and
WHEREAS, Canexsys Networks, Inc. (the “Company”) has applied for loan financing as part
of a project to acquire the former Newell Building in Ogdensburg, New York, and to set up a
manufacturing operation within the facility (the “Project”), and
WHEREAS, the project will include improvements to the a long vacant facility, and
NOW, THEREFORE, BE IT RESOLVED that the St. Lawrence River Valley
Redevelopment Agency agrees to authorize the SLCIDA-LDC to lend up to $150,000 from the
RVRA’s Economic Development Fund to Canexsys Networks, Inc., and
BE IT FURTHER RESOLVED that said loan of up to $150,000 shall be subject to the
following terms and conditions:
1. Principal
2. Interest
Rate
3. Term
4. Security
5. Other
Move:
Second:
VOTE
McNeil
Strait
Murphy
Carroll
Forsythe
Up to $150,000
One-half of prime rate plus 1, the actual rate to be determined at closing and
adjusted at the end of every five years
Seven (7) year amortization schedule
 Co-proportional first mortgage with all other public lenders on real estate
located at 100 Patterson Street, Ogdensburg
 Co-proportional first security interest in all machinery and equipment and
furniture and fixtures owned by Canexsys Networks, Inc. and located at 100
Patterson Street, Ogdensburg.
 Unlimited Personal Guarantee of William Fry
 Evidence of at least $150,000 in funding from both the St. Lawrence County
Industrial Development Agency Local Development Corporation (IDALDC)
and the Greater Massena Economic Development Fund (GMEDF) loan funds
 Evidence of owner equity in the project of a least $725,000
 Evidence of additional funding in the project of in the amount of at least
$2,550,000
 As required by the IDALDC and GMEDF loan funds the company agrees to
create at least 10 FTE new jobs over the next three years
AYE
NAY
ABSTAIN
ABSENT
I HEREBY CERTIFY that I have compared this copy of
this Resolution with the original record in this office, and
that the same is a correct transcript thereof and of the whole
of said original record.
/s/
Lori Sibley
Page 27
03/28/17

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