Syracuse Approves Polywood Abatement

June 5, 2020 at 12:06 a.m.

By Denise Federow-

SYRACUSE – Syracuse council members approved a 10-year tax abatement for Polywood – PWI Realty at a special meeting Thursday following the Redevelopment Commission meeting.

Polywood is building a new manufacturing facility, expected to be a $12 million investment and to create 300 jobs at a rate of pay of $25 an hour. The abatement is 100% the first year and 5% the 10th and final year, prompting Council President Paul Stoelting to ask how the bond gets paid if the abatement is 100%.

Jim Higgins, of London Witte Group, the town’s financial advisor, explained the bond is paid with increments gained from the Polywood site – which was declared a tax increment finance district earlier that morning by the Redevelopment Commission – and that the bond is structured to “follow the path of Polywood’s roll out.”

Polywood is planning to build a 300,000- to 400,000-square-foot facility on the site of the current Harold Schrock Athletic facility; and in return for the city selling the land for a nominal price, is contributing $500,000 toward the town’s purchase of land and a new athletic complex off Kern Road, the former Black Walnut Farm.

The council unanimously approved the tax abatement.

In a related matter, the council approved a resolution transferring that 6.96 acres of real estate at 900 Brooklyn St. to the Syracuse Redevelopment Commission. Dennis Otten, of Bose McKinney and Evans, bond counsel for the town, said the Redevelopment Commission has more leeway in transferring real estate for economic development and once the resolution is passed will be able to move forward with transferring that property to PWI Realty under the terms of the agreement.

The council unanimously approved this resolution as well.

Regarding the Medusa Street project, Town Manager Mike Noe explained that when the water lines were put in on Medusa Street it “totally destroyed the street.”

The project originally called for replacing some sidewalk but now the town has to pave the whole street to Front Street, which will cost an additional $85,000. Noe was under the impression that the water portion of the project took all of the Community Crossing grant funds.

Clerk-Treasurer Paula Kehr-Wicker had better news, though. She said the Community Crossing Grant of $339,597.75 and the town’s match of 25% of the project’s cost was for multiple street and water projects and some came in under the estimated cost. Therefore, she thinks there will still be some grant funds that could be used for the additional cost. Whatever amount is not covered with the council’s approval she said could be taken from local roads and streets fund or motor vehicle highway fund.

She said if the same contractor does the work they’d just need a change order. If a different contractor is used, they probably still wouldn’t need to bid it out based on the amount.

The council approved authorizing Noe to determine which vendor would do the work and for Kehr-Wicker to pay for the excess out of LRS or MVH funds.

Then on an employee vacation matter, Noe explained to the council that when he hired Aaron Dixon for the wastewater department, he made him some offers to come to Syracuse without realizing he should have checked first. He said Dixon had three weeks’ vacation at his previous job so Noe offered him two weeks, but according to the employee handbook he shouldn’t receive that before his first anniversary date. Noe also offered him a raise when he got his CDL license and wanted to be able to keep his word.

Stoelting thought that because of COVID they could have a little leeway and said if that was the terms of the contract, because Dixon had experience, he was OK with it.

Council Member Larry Siegel said he shared a similar view, but cautioned Noe that moving forward he should check with the city attorney first.

Kehr-Wicker said since they used the word contract, she wanted to point out that all the municipal clerks and human resource representatives she’s talked to said, “When it comes to municipal employees, our contract is our ordinance so if we’re hiring people and giving them more than our contract – our salary and benefits ordinance – it has to go through a process to amend the ordinance.”

But she deferred to the city attorney and the council to make that decision. When asked about the salary increase upon receiving the CDL, she said as long as it’s within a certain range stated in the ordinance and in this case it is.

The council approved allowing Dixon to have five days of vacation six months prior to when he would have earned it.

There was discussion about how to conduct future meetings. Stoelting suggested holding the meetings in the pavilion at Crosson Mill Park, across the street from the municipal building, especially with budget meetings coming up. He thought it best to be in person but didn’t feel they were ready to meet in council chambers yet. He also suggested moving the meetings to 6 p.m. instead of 7 p.m., especially if they’re meeting outdoors.

Kehr-Wicker questioned the media present about all the meeting changes after submitting meeting dates and times at the beginning of the year and was advised that as long as they follow Open Door laws and give 48 hours notice, it should be fine.

After the discussion the council decided to hold its regularly scheduled meeting on June 16 via Zoom at 6 p.m. and plan to hold the July meeting at 6 p.m. at the pavilion.

SYRACUSE – Syracuse council members approved a 10-year tax abatement for Polywood – PWI Realty at a special meeting Thursday following the Redevelopment Commission meeting.

Polywood is building a new manufacturing facility, expected to be a $12 million investment and to create 300 jobs at a rate of pay of $25 an hour. The abatement is 100% the first year and 5% the 10th and final year, prompting Council President Paul Stoelting to ask how the bond gets paid if the abatement is 100%.

Jim Higgins, of London Witte Group, the town’s financial advisor, explained the bond is paid with increments gained from the Polywood site – which was declared a tax increment finance district earlier that morning by the Redevelopment Commission – and that the bond is structured to “follow the path of Polywood’s roll out.”

Polywood is planning to build a 300,000- to 400,000-square-foot facility on the site of the current Harold Schrock Athletic facility; and in return for the city selling the land for a nominal price, is contributing $500,000 toward the town’s purchase of land and a new athletic complex off Kern Road, the former Black Walnut Farm.

The council unanimously approved the tax abatement.

In a related matter, the council approved a resolution transferring that 6.96 acres of real estate at 900 Brooklyn St. to the Syracuse Redevelopment Commission. Dennis Otten, of Bose McKinney and Evans, bond counsel for the town, said the Redevelopment Commission has more leeway in transferring real estate for economic development and once the resolution is passed will be able to move forward with transferring that property to PWI Realty under the terms of the agreement.

The council unanimously approved this resolution as well.

Regarding the Medusa Street project, Town Manager Mike Noe explained that when the water lines were put in on Medusa Street it “totally destroyed the street.”

The project originally called for replacing some sidewalk but now the town has to pave the whole street to Front Street, which will cost an additional $85,000. Noe was under the impression that the water portion of the project took all of the Community Crossing grant funds.

Clerk-Treasurer Paula Kehr-Wicker had better news, though. She said the Community Crossing Grant of $339,597.75 and the town’s match of 25% of the project’s cost was for multiple street and water projects and some came in under the estimated cost. Therefore, she thinks there will still be some grant funds that could be used for the additional cost. Whatever amount is not covered with the council’s approval she said could be taken from local roads and streets fund or motor vehicle highway fund.

She said if the same contractor does the work they’d just need a change order. If a different contractor is used, they probably still wouldn’t need to bid it out based on the amount.

The council approved authorizing Noe to determine which vendor would do the work and for Kehr-Wicker to pay for the excess out of LRS or MVH funds.

Then on an employee vacation matter, Noe explained to the council that when he hired Aaron Dixon for the wastewater department, he made him some offers to come to Syracuse without realizing he should have checked first. He said Dixon had three weeks’ vacation at his previous job so Noe offered him two weeks, but according to the employee handbook he shouldn’t receive that before his first anniversary date. Noe also offered him a raise when he got his CDL license and wanted to be able to keep his word.

Stoelting thought that because of COVID they could have a little leeway and said if that was the terms of the contract, because Dixon had experience, he was OK with it.

Council Member Larry Siegel said he shared a similar view, but cautioned Noe that moving forward he should check with the city attorney first.

Kehr-Wicker said since they used the word contract, she wanted to point out that all the municipal clerks and human resource representatives she’s talked to said, “When it comes to municipal employees, our contract is our ordinance so if we’re hiring people and giving them more than our contract – our salary and benefits ordinance – it has to go through a process to amend the ordinance.”

But she deferred to the city attorney and the council to make that decision. When asked about the salary increase upon receiving the CDL, she said as long as it’s within a certain range stated in the ordinance and in this case it is.

The council approved allowing Dixon to have five days of vacation six months prior to when he would have earned it.

There was discussion about how to conduct future meetings. Stoelting suggested holding the meetings in the pavilion at Crosson Mill Park, across the street from the municipal building, especially with budget meetings coming up. He thought it best to be in person but didn’t feel they were ready to meet in council chambers yet. He also suggested moving the meetings to 6 p.m. instead of 7 p.m., especially if they’re meeting outdoors.

Kehr-Wicker questioned the media present about all the meeting changes after submitting meeting dates and times at the beginning of the year and was advised that as long as they follow Open Door laws and give 48 hours notice, it should be fine.

After the discussion the council decided to hold its regularly scheduled meeting on June 16 via Zoom at 6 p.m. and plan to hold the July meeting at 6 p.m. at the pavilion.
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