Details for FITZGERALD MORRIS BAKER FIRTH, P.C. -LEGALS - Ad from 2022-08-02

NOTICE OF PUBLIC HEARING
ON PROPOSED PROJECT
AND FINANCIAL ASSISTANCE
RELATING THERETO
Notice is hereby given by the Counties of Warren and Washington
Industrial Development Agency (the “Agency”) that a public hearing (the
“Public Hearing”) pursuant to Section 859-a of the General Municipal
Law of the State of New York (the “Act”) and Section 147(f) of the
Internal Revenue Code of 1986, as amended (the “Code”) will be held by
the Agency on the 11th day of August, 2022 at 4:00 o’clock p.m., local
time, in connection with the Morcon, Inc. Project, as described below.
The Public Hearing will be held electronically via video conference call.
Members of the public may attend the Public Hearing by viewing and
commenting on the Project and the benefits to be granted to Morcon,
Inc., a New York State business corporation (the “Company”) by the
Agency during the Public Hearing by joining the Zoom meeting or calling
in:
Join Zoom Meeting
https://us02web.zoom.us/j/87557986397?pwd=MnJTZzgyclBlL1Jvcjd
JM2d1dWRJQT09
Meeting ID: 875 5798 6397
Passcode: 689666
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+1 646 931-3860 US (New York)
Meeting ID: 875 5798 6397
Passcode: 689666
Comments may also be submitted to the Agency in writing or
electronically. Minutes of the Public Hearing will be transcribed and
posted on the Agency’s website.
The Company has submitted an application (the “Application”)
to the Agency, a copy of which Application is on file at the office of
the Agency, which Application requested that the Agency consider
undertaking a project (the “Project”) for the benefit of the Company, said
Project consisting of the following: (A) (1) the acquisition of an interest or
interests in a parcel of land located at 62 Owl Kill Road, in the Town of
White Creek, Washington County, New York (the “Land”), together with
the existing building located on the Land and known as the Morcon, Inc.
Corporate Headquarters and Manufacturing Site (the “Facility”); (2) the
reconstruction and renovation of the Facility in three phases including (a)
the construction of an approximately 40,000 square foot expansion for
material storage and distribution at the Facility (the “First Expansion”), (b)
the construction of an approximately 15,000 square foot expansion for
reshoring of paper production at the Facility (the “Second Expansion,”
and collectively with the First Expansion, the “Expansions”), and (c) the
installation of an updated sprinkler system and water storage system to
service the completed Facility and Expansions (the “Water System,” and
collectively with the Expansions, the “Additions”), and (3) the acquisition
and installation thereon and therein of various machinery and equipment
(the “Equipment”) (the Land, the Facility, the Equipment and the
Additions hereinafter collectively referred to as the “Project Facility”), all
of the foregoing to constitute, when complete, a manufacturing facility
containing approximately 70,000 square feet of space to be owned and
operated by the Company for the purpose of converting towel, tissue,
and napkin products and other directly or indirectly related activities;
(B) the financing of all or a portion of the costs of the foregoing by the
issuance of taxable and/or tax-exempt revenue bonds of the Agency in
one or more issues or series in an aggregate principal amount sufficient
to pay all or a portion of the cost of undertaking the Project, together
with necessary incidental costs in connection therewith, presently
estimated to equal approximately $13,825,000, but in any event not to
exceed $18,000,000 (the “Obligations”); (C) the payment of a portion
of the costs incidental to the issuance of the Obligations, including
issuance costs of the Obligations and any reserve funds as may be
necessary to secure the Obligations; (D) the granting of certain other
“financial assistance” (within the meaning of Section 854(14) of the Act)
with respect to the foregoing, including exemption from certain sales
taxes, deed transfer taxes, mortgage recording taxes and real property
taxes (collectively with the Obligations, the “Financial Assistance”);
and (E) the lease (with an obligation to purchase) or sale of the Project
Facility to the Company or such other person as may be designated by
the Company and agreed upon by the Agency.
The Agency is considering whether (A) to undertake the Project, (B) to
finance the Project by issuing, from time to time, the Obligations, (C) to
use the proceeds of the Obligations to pay the cost of undertaking the
Project, together with necessary incidental costs in connection therewith,
and (D) to provide certain exemptions from taxation with respect to the
Project, including (1) exemption from mortgage recording taxes with
respect to any documents, if any, recorded by the Agency with respect
to the Project in the office of the County Clerk of Washington County,
New York or elsewhere, (2) exemption from transfer taxes on any real
estate transfers, if any, with respect to the Project, (3) exemption from
sales taxes relating to the acquisition, construction, equipping and
installation of the Project Facility, and (4) in the event that the Project
Facility would be subject to real property taxation if owned by the
Company but shall be deemed exempt from real property taxation
due to the involvement of the Agency therewith, exemption from real
property taxes (but not including special assessments and special ad
valorem levies), if any, with respect to the Project Facility, subject to
the obligation of the Company to make payments in lieu of taxes with
respect to the Project Facility. If any portion of the Financial Assistance
to be granted by the Agency with respect to the Project is not consistent
with the Agency’s uniform tax exemption policy, the Agency will follow
the procedures for deviation from such policy set forth in Section 874(4)
of the Act prior to granting such portion of the Financial Assistance.
If issuance of the Obligations is approved, interest on the Obligations
will not be excludable from gross income for federal income tax purposes
unless (A) pursuant to Section 147(f) of the Code and the regulations
of the United States Treasury Department thereunder (the “Treasury
Regulations”), the issuance of the Obligations is approved by the Board
of Supervisors of Washington County, New York after the Agency has
held a public hearing on the nature and location of the Project Facility
and the issuance of the Obligations; (B) pursuant to Section 144(a)(12)
of the Code, at least ninety-five percent (95%) of the net proceeds of the
Obligations are used to provide a “manufacturing facility,” as defined in
Section 144(a)(12)(C) of the Code; and (C) pursuant to Section 146 of
the Code, there is allocated to the Obligations a portion of the private
activity bond volume cap of the Agency and/or the State of New York
sufficient to equal the face amount of the Obligations.
If the Agency determines to proceed with the Project and the
issuance of the Obligations, (A) the Project Facility will be leased (with
an obligation to purchase) or sold by the Agency to the Company or its
designee pursuant to a project agreement (the “Agreement”) requiring
that the Company or its designee make payments equal to debt service
on the Obligations and make certain other payments to the Agency and
(B) the Obligations will be a special obligation of the Agency payable
solely out of certain of the proceeds of the Agreement and certain other
assets of the Agency pledged to the repayment of the Obligations.
THE OBLIGATIONS SHALL NOT BE A DEBT OF THE STATE OF NEW
YORK OR WARREN OR WASHINGTON COUNTIES, NEW YORK, AND
NEITHER THE STATE OF NEW YORK NOR WARREN OR WASHINGTON
COUNTIES, NEW YORK SHALL BE LIABLE THEREON.
The Agency has not yet made a determination pursuant to Article 8
of the Environmental Conservation Law (the “SEQR Act”) regarding the
potential environmental impact of the Project.
The Agency will at said time hear all persons with views on either the
location and nature of the proposed Project, or the Financial Assistance
being contemplated by the Agency in connection with the proposed
Project. A copy of the Application filed by the Company with the Agency
with respect to the Project, including an analysis of the costs and
benefits of the Project, is available for public inspection during business
hours at the offices of the Agency. A transcript or summary report of the
hearing will be made available to the members of the Agency.
Additional information can be obtained from, and written comments
may be addressed to: Dave O’Brien, Chairman, Counties of Warren
and Washington Industrial Development Agency, 5 Warren Street,
Suite 210, Glens Falls, New York 12801; Telephone: 518-792-1312 and
electronically at info@warren-washingtonida.com.
Dated: July 29, 2022.
COUNTIES OF WARREN AND
WASHINGTON INDUSTRIAL
DEVELOPMENT AGENCY
PUB: August 2, 2022

BY: /s/ David O’Brien
Chairman

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