OLD NEWS

231 New York Road

Plattsburgh , NY 12903
For Immediate Release

Date: April 3, 2006

Contact: Dennis R. Doyle
Tel.: (518) 561-0232

PLATTSBURGH -- The Plattsburgh Airbase Redevelopment Corp. (PARC) has contributed nearly $3 million in taxes to local taxing jurisdictions since its voluntary Payment-in-Lieu-of-Taxes (PILOT) program went into effect in calendar 2001 and PARC began paying special district taxes on New Base property three years ago.

A report compiled by PARC's Finance Department, issued today at a meeting of the organization's Board of Directors, shows that the Plattsburgh City and Peru Central School Districts , the City of Plattsburgh and Clinton County have shared in $1,867, 405 in tax monies generated via the PARC PILOT. Since 2004, meanwhile, PARC has paid $959,781 in special district taxes to the Town of Plattsburgh , which ratified the PILOT agreement but does not receive payments under it. Virtually all of the New Base lies within Town boundaries.

Only properties owned, occupied or leased by PARC produce tax revenue under the PILOT. The total does not reflect additional and substantial tax proceeds collected by the taxing entities from businesses operating at PARC that own their land and buildings or from residential property owners and landlords who live on or rent former base property.

“We believe that PARC's accomplishments in expanding and improving the community's tax base will be a cornerstone of its legacy,” commented Board Chairman Gilbert Duken, “so we asked for a review of PILOT data up to the current time. We feel the information demonstrates in another tangible manner that PARC has met its longstanding commitment to strengthen the North Country economy.

“Some may forget that PARC took the initiative in negotiating the PILOT agreements with the local taxing jurisdictions,” Duken continued. “The result of that effort is a new and ongoing stream of revenue from property that had never before been on the tax rolls.”

According to the report, PILOT payments are made in mid-year annually to the Peru and Plattsburgh school districts and annually to the City and County towards the end of the year.

PARC PILOT payments totaled $170, 638 in 2001, $382,711.94 in 2002 and peaked at $423,928.95 in 2003. They totaled $375, 896.53 in 2004, $337,952.19 in 2005 and $176,277.74 thus far in 2006, with payments to the City and County due before the end of the year.

The gradual decline, Duken said, reflects the upward trend in property sales and transfer to new owners. However, he added, the drop in no way diminishes the overall tax impact since businesses and developers who purchase property at PARC automatically assume the tax burden.

A breakdown shows that the Peru Central School District is the leading beneficiary of PARC PILOT payments with $959,585.43 in receipts covering the period of January 1, 2001 through June 30 th of this year. The Plattsburgh City School District has received $403,697.32 over the same span while payments to the City and County -- excluding those due at the end of 2006 -- have totaled $504,122.60.

PARC makes its special district tax payments to the Town near the beginning of the year. They totaled $316,622 in 2004, $309,420 in 2005 and rose to $333,379 for the current year.

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231 New York Road

Plattsburgh , NY 12903
For Immediate Release

Date: Monday, July 24, 2006

Contact: Dennis R. Doyle

Tel.: (518) 561-0232

PLATTSBURGH – As the mission of the Plattsburgh Airbase Redevelopment Corp. (PARC) winds down, more details about its long-term economic impact on the regional community are coming into focus.

That was the central theme today at the July meeting of PARC's Board of Directors, where Board members and PARC administrators discussed the results of two internal studies.

One shows that the City of Plattsburgh and Town of Plattsburgh combined gained $73 million in the assessed value of former federal property placed on their tax rolls over a 10-year period through PARC's economic development efforts. The second illustrates that PARC invested and managed more than $24 million in airport maintenance and capital improvements from 1996 until 2005, when Clinton County assumed responsibility for airfield operations.

During his remarks, Gilbert Duken, PARC's Board Chairman, said that, as of May 1, 2005 , property sales and new development within city boundaries had generated $52 million in new assessments. The tally for New Base property within the Town -- exclusive of the airfield -- was $21 million, he said.

The base closed in September of 1995. None of the property comprising the 5,000-acre federal complex had ever before been on the tax rolls.

During his report to the Board, Marc Poirier, PARC's chief financial officer, pointed out that the assessment information on the City was provided by the Clinton County assessor. Data on the Town came from that municipality's assessor.

“The greater part of the assessed value of former base property within the city can be attributed to residential sales,” Poirier said. “The assessed value of New Base property in the Town is based almost exclusively on sales to commercial and industrial tenants.

“We expect that value will increase dramatically,” he continued, “as we sell and close on more buildings and we are able to market and sell vacant parcels and others that will come on line after current and planned demolition projects end. We look forward to continuing our mission and to helping the City and Town improve their overall assessed values.”

During its nearly 10-year term as caretaker of the aviation complex, PARC oversaw the expenditure of more than $13 million to maintain and operate Plattsburgh International Airport, including for upkeep, repairs and upgrades to facilities within the Public Benefit Conveyance (PBC) now occupied by tenants. An additional $11 million was spent on capital improvements, and they included expansion and renovation of aircraft hangars and nosedocks, installation of a fuel farm, construction of a tail enclosure facility for the large hangar, and the acquisition of additional assets for airfield operations.

“Our goal,” Duken said, “was to maintain the airfield as near as possible to FAA standards until Clinton County could take it over for posterity. PARC not only met that objective, it also conveyed a property that was turning a considerable profit at the time.”

Poirier noted that the funds spent by PARC in the PBC came from grants from the Economic Development Administration, the Empire State Development Corporation and from tenant income generated by PARC.

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Milestones

A chronological review of events & activities at PARC from fall 1995 through 2005

1995

* PAFB closes on September 29. Plattsburgh Intermunicipal Council dissolves as PARC is created to manage redevelopment of the former base.
* Seven-member Board of Directors (appointed by elected officials on the national, state and local levels) established to oversee redevelopment effort
* Board retains David Holmes as PARC's first President & CEO; Holmes recruits senior staff (attorney, administrative assistant, finance officer, marketing specialist) and caretaker staff (PARC's payroll, at one point in the early stages of its existence, exceeded 130 employees)
* PARC receives initial grants from New York State and the Office of Economic Adjustment
* PARC negotiates fire support contracts with City of Plattsburgh Fire Department (Old Base) and South Plattsburgh Fire Department (New Base)

1996

* Comprehensive Base Reuse Plan and Final Environmental Impact Statement completed
* PARC, USAF negotiate initial caretaker agreement
* Aviation feasibility study initiated
* Wood Group Aero leases former Test Cell for repair/overhaul of industrial & aviation jet engines; becomes PARC's initial aviation-related tenant
* Marc Barie appointed CEO (succeeding Holmes)
* PARC receives NYSDOT grants to begin certification of airfield for charter and general aviation operations

1997

* Air Force Record of Decision designates PARC as the planning LRA (local reuse agency)
* Community debates Authority issue
* PARC holds first auction to dispose of surplus Air Force property; similar auctions would occur in 2001, 2003 and twice during 2004; all auctions combined generated $728,896.20 for investment in PARC's redevelopment efforts
* PHISH concert in August attracts thousands; has significant economic impact but creates major airfield cleanup headache for PARC

1998

* Authority initiative fails; CCIDA designated “eligible applicant” for Economic Development Conveyance (EDC)
* Ice Storm support (PARC provides machinery, equipment, vehicles and supplies for relief effort; opens dormitories and gymnasia that eventually house more than 1,000 National Guard troops, utility workers, Red Cross personnel and other volunteers)
* Central Heat Plant closes; PARC negotiates with USAF to convert 25 buildings to independent heating systems; NYSEG brings natural gas to the former base
* PARC designated as Economic Development Zone (EDZ)
* Rail link project funded by PARC-negotiated NYSDOT grant
* Marc Barie resigns; Dan Wieneke appointed CEO (Wieneke creates PARC “management team” concept)
* 15 Capehart residences on Old Base demolished, paving the way for groundbreaking for Lake Forest Senior Retirement Community
* USAF Thunderbirds headline two-day Air Show; event loses money but proves to be valuable marketing tool

1999

* Select Group memorandum of understanding (MOU) signed
* Hamilton Street and Arizona Avenue gates open
* PARC hosts 1 st community open house program
* Groundbreaking for 1 st new industrial building (76,500 s.f. structure occupied today by Multina Corp.); four others – including the 50,000 s.f. spec building that houses Ayerst Labs' warehouse operation and the 80,000 s.f. Cornell Trading building – would follow
* PrimeLink agrees to bring fiber optic technology to PARC and its tenants, providing a major boost to PARC's marketing efforts
* Rail link constructed
* PARC maintains NASA certification as inactive runway for space shuttle support
* Former bowling alley renovated (largely in-house) for occupancy by Northern Parts & Service
* Above-ground heating pipe removal and asbestos abatement project begins
* Macro International joins PARC's tenant fold
* Pratt & Whitney delivers signed lease to PARC on Christmas Eve

2000

* PARC staff complete and submit first EDC application
* Aircraft operations begin; PARC and Clinton County launch discussions on future airport move
* Caretaker agreement extension approved by USAF
* Nexia Biotechnology moves into former weapons storage facilities
* Pratt & Whitney moves into newly renovated main hangar and nearby maintenance building
* Site Selection magazine names Plattsburgh as #7 on its list of America 's Top 100 Small Cities for Corporate Facilities, identifies PARC as the catalyst for the ranking
* PARC initiates PILOT agreement negotiations with five local taxing jurisdictions
* Select Group rehab project begins
* Clinton Community College announces plans to occupy two former PAFB dorms by fall
* Heritage Trail opens along shoreline of historic Lake Champlain
* Two-square-mile area at PARC designated as Empire Zone
* PARC reports it has achieved financial self-sufficiency
* PrimeLink and Northeast Group occupy facilities at PARC
* Massive subdivision of Old Base and New Base properties begins

2001

* CCIDA approves PILOT, its straight-lease agreement with PARC and a Lease in Furtherance of Conveyance with AFBCA
* PARC takes title to first parcels of former base, transfers land and buildings to Select Group
* Demolition (financed by proceeds from the Select Group housing sale) begins on dilapidated housing on both the Old Base and New Base
* Plattsburgh moves up to #5 on Site Selection magazine's list of America 's Top 100 Small Cities for Corporate Facilities
* PARC reaches agreement with CVPH to lease (and subsequently acquire) the former Fitness Center for conversion to a physical therapy facility
* Charter aircraft land at PARC in support of ORDA-sponsored winter sports activities
* PILOT agreement reached; PARC makes first payment ($77,000) to local taxing jurisdictions in April; payment total would reach $400,000 before the end of the year
* Workforce Investment Board announces plans to open a business-employment resource center (known today as “OneWorkForce”) in Building 104 on Old Base
* Select Group launches Phase I (116 units) of its housing sale in a community renamed “Lake Country Development, LLC”; project sells out in less than one month
* 2000-acre FTZ established at PARC
* Pratt & Whitney adds 747 aircraft to its jet engine testing fleet
* Peru Central School closes Northside School ; moves faculty and students to Peru campus
* In wake of terrorist attacks on 9/11, PARC loses $2.5 million in state funding

2002

* City of Plattsburgh takes over Old Base infrastructure; moves its Public Works Department to the New Base Vehicle Maintenance Building (to allow Bombardier to expand operations)
* Clinton Community College announces plans to open second dorm, convert former base library to satellite student union & cafeteria facility
* Developers purchase 17-acre site on Old Base for Heritage Heights housing project
* Pending approval of the subdivision of 70 parcels on 350 acres, Town of Plattsburgh makes clear its intent to take of the New Base infrastructure by January 1, 2003 ;
* Brownstones go on the market as centerpiece of Planned Unit Development; attract bids ranging to $2 million
* Phase II of Select Group housing sells out in a matter of weeks
* The City of Plattsburgh adds Sailors Beach and Marina to its recreational inventory
* The Battle of Plattsburgh Association and PARC ink agreement allowing BOPA to take over one building on the Old Base with an option to lease eight more of historical significance
* Clinton County opts to apply for Public Benefit Conveyance to take possession of PARC airfield
* Oval West LLC of Burlington , Vt. Wins bid for Planned Unit Development (including 17 Brownstones)
* For the 4 th consecutive year, PARC shows an increase in rents, profits and net assets as well as a clean audit report
* Clearing of land begins for nine-hole expansion at the Barracks Golf Club

2003

* Seton Catholic Central School announces plans to purchase former Northside School
* PARC and the Town sign agreement on the transfer of the New Base infrastructure, effective January 1, 2004
* Plans to move Canadian-Pacific rail yard from downtown Plattsburgh to New Base solidified, clearing the way for waterfront revitalization
* City of Plattsburgh takes ownership of Old Base gym, chapel and US Oval
* Plattsburgh advances to #3 on the Site Selection list
* Clinton County takes deed to flight line
* PARC reaches sale agreement with private developer for 22 US Oval; begins planning for move to Southside School to make room for new City Court and office facilities
* BOPA exercises its option to expand its holdings on the Old Base as well as adjacent land
* Town of Plattsburgh approves subdivision plan for 350 acres on New Base
* Last of renovated base housing in Select Group project (316 units total) is sold
* PARC creates $100,000 scholarship endowment fund with the Plattsburgh College Foundation
* Cornell Trading announces plans to build an 80,000 s.f. warehouse and product distribution center on the west side of the airfield at PARC

2004

* PARC invites Clinton County and representatives of other local taxing jurisdictions to participate in negotiations with Precision Jet Management (PJM) to open a proposed full-service, one-stop aviation center (e.g., aircraft refurbishing & painting, aircraft sales, refueling, pilot & mechanic training) on the airfield; project would dominate PARC operations as well as regional news coverage throughout most of 2004
* Seton Catholic breaks ground for new gym adjoining former Northside School
* PARC board authorizes demolition contract to remove Capehart housing on southeastern side of Old Base to spur development of Pine Harbour project (a proposed 60-unit “enriched-living center and memory-care facility” planned jointly by Lake Forest and CVPH)
* Homeland Security announces plans to station surveillance aircraft at PARC
* PARC and Clinton County sign MOU with PJM
* PARC petitions state for revision of Empire Zone boundaries
* PrimeLink purchases former communications building on Kansas Avenue
* City Court relocates to PARC
* PARC makes first installment in three-year, $50,000 gift to the Clinton Community County Foundation Scholarship Fund
* PARC named “Economic Development Partner of the Year” by the Plattsburgh- North Country Chamber of Commerce
* PARC implements employee retrenchment program; downsizes from 56 to 36 staff immediately and shrinks to fewer than 25 within a year's time
* Lake Forest purchases its 15-acre complex
* Plattsburgh occupies the #2 spot on Site Selection magazine's list of top small cities for economic development largely on expansion at PARC, specifically the Ayerst Labs and Cornell Trading projects
* PARC donates hundreds of items of surplus medical equipment and supplies to the Plattsburgh-base Mission of Hope project
* Cornell Trading formally dedicates its new facility; opens with 42 employees
* County rejects PJM deal
* PARC and NYSEG complete agreement for takeover of New Base utilities
* County ends contract with PARC to market the flight line
* Homeland Security begins Plattsburgh mission in October
* Final audit of caretaker agreement between PARC and AFBCA is declared free of all abnormalities

2005

* In January, Board approves transfer of 25 properties on former base to new owners
* PARC outlines $9.3 million in projects remaining to complete its mission (they include asbestos abatement and demolition of the former base hospital and central heating plant and the demolition of four dormitories and 81 residential buildings)
* PARC advertises and initiates public sale of remaining Air Force surplus property via bid procedure
* PARC announces plans to move Clyde Lewis Park to east side of Route 9; budgets more than $200,000 to support the move and establishes $50,000 annuity for upkeep by the City of Plattsburgh
* Larkin Realty of Burlington undertakes renovation of former ROTC building on Old Base for luxury condominiums
* PARC contributes $50,000 -- payable over two years -- to the North Country Cultural Center for the Arts in support of the Strand Theater restoration project
* The Barracks Golf Club opens new nine holes
* PARC dedicates significant portion of state funding to support proposed Pratt & Whitney expansion of main aircraft hangar
* Clinton County takes over marketing of flight line
* PARC and Clinton County reach agreement on terms for land sales within EDC2 boundaries
* Dan Wieneke resigns as PARC CEO; Board implements shared leadership structure
* PARC initiates a second phase of staff reductions with the intent to downsize to fewer than 15 employees by October of 2006
* Four additional residential properties on Old Base go on sale at asking prices ranging from $200,000 to $575,000
* Pine Harbour breaks ground for new facility on former Old Base property

-0-

Executive Summary
of the PARC Board of Directors Meeting
February 23, 2009

Directors Present: Gil Duken and Kevin Carroll

Directors Present Via Phone: Don Garrant and Marion Bourdeau

Directors Excused: Henry Fortin, Jim King and Steve Bouyea

Others Present: Bruce Steadman, Lee Mitchell, Bob Davis, Phil Dixon and Dennis Doyle

Call to Order: Chairman Duken called the meeting to order at 8:07 a.m.

Pledge of Allegiance:

Public Welcome and Invitation to Comment: None

Prior Minutes:

Chairman Duken asked for a motion to approve the minutes of the December 15, 2008 meeting. Motion to approve by Mr. Garrant, seconded by Mr. Carroll. 4-0 in favor thereof.

Chairman’s Report: Mr. Duken noted the bleak economic reports that dominate the daily news cycle. On the one hand, he said, we are deeply sympathetic with people everywhere who are feeling the effects of the current recession. On the other, he continued, it is reassuring to hear and read that our region is weathering the storm rather well in comparison with other parts of our state and the nation; that business growth and job creation are continuing in several sectors of our local economy. The Glens Falls National Bank’s recent two-page advertisement in Strictly Business magazine illustrates this point, he said. It urges us to “turn down the gloom and doom.” The ad acknowledges that our community does indeed face some stiff economic challenges, but its central theme is that “if we look around, we’ll see plenty of reason for optimism.” The bank ad, he stated, goes on to cite the new NovaBus manufacturing plant and the 300 jobs it brings to the community. It notes the recent $33 million investment in CVPH Medical Center, impressive growth at Plattsburgh International Airport, and, among other developments, the major expansion at Champlain Centre to accommodate Target and other retailers.

This upbeat approach by this community bank, other regional businesses and some local economic professionals, Mr. Duken continued, has not been lost on management at PARC. Mindful of its own progress in recent history, and in the interest of accentuating the positive, fostering productive dialog and engendering community spirit, PARC has launched a “Good News Blog” on its web site. He stated that the blog can be accessed by visiting the web site homepage at www.parc-usa.com. The blog, he noted, will be devoted to opinions, musings and anecdotes pertaining to good news in the North Country on topics ranging from individual achievements, business and investment developments, to commentary on noteworthy projects, sports and scholarship activities, and any other subject that highlights the favorable and the bullish. He said that PARC hopes it accomplishes its underlying purpose: To help sustain morale for the duration of the economic downturn.

Mr. Duken said that PARC continues to market its properties aggressively. Staff plan to meet soon with members of the Clinton County Board of Realtors to acquaint them with remaining real estate sales opportunities available here and to enlist their support in bringing developers and investors to the table. In conclusion, he stated that PARC is generally optimistic about prospects for success in their marketing initiatives for 2009.

Committee Reports: None

Chief Executive Officer: Since there were no committee reports, Mr. Steadman requested department reports.

Engineering Department Report: Mr. Davis stated that PARC went before the Town of Plattsburgh Planning Board on February 10th and received preliminary approval on PARC Subdivision Phase VII which includes three lots at the south end of Willow Drive. PARC will go before the same Planning Board again soon for final approval, and then will be able to transfer at least one of those parcels. As the marketing campaign continues, Mr. Davis said, preparations for the upcoming Realtors meeting are being finalized.

Finance Department Report: Mrs. Mitchell reported that year-to-date rents through January 31st are fully collected. Other highlights of her report, which cover a two month period (December 2008 and January 2009), included:
• Although there were no property closings during the last two months, PARC expects to close on Lot 9 in the early spring. In addition, closing documents are currently underway to transfer Lot 78 along Arizona Avenue and for the sale of small parcels that have been further subdivided out of Lots 48 and 51 and will be sold to existing owners at PARC to allow them to expand their property.
• The Empire State Development Corporation Phase 12 Grant is approximately 57% complete as of January 31st, and a reimbursement request for costs paid through that date is under review for payment.
• PARC has received notification that the ESDC Phase 13 Grant amount is reduced to $752,000 as part of the New York State deficit reduction plan. We are revising our application and the capital project list accordingly.
• PARC’s current staff remains unchanged at seven full time employees.
• Work continues with the Air Force and regulatory agencies to bring the FOSET process to a successful close and to take title to those related properties.
• PARC continues to work closely with NBT, and expects finalization of its credit line renewal process by month’s end. The renewal terms will be effective through the balance of calendar 2009.
• The records storage project for the finance department is ongoing.

Legal Report: None.

Chief Executive Officer Comments: Mr. Steadman took a moment to acknowledge with sadness the passing of Clyde Lewis. He said that there is an entry on PARC’s blog this morning which celebrates the life of Mr. Lewis. Every one knows, he continued, that Mr. Lewis was the father of the Plattsburgh Air Force Base, and that his work in the 50's to bring the base here is legendary. Mr. Steadman said his personal relationship with Mr. Lewis over the years was extremely positive.

• Taking excerpts from the blog, Mr. Steadman said that Mr. Lewis was somewhat loathe to be on the PARC bandwagon in the early years because he’d always hoped that there was an opportunity for the Air Force to return to Plattsburgh. In recent years, however, he was an enthusiastic supporter of PARC. He was extremely gracious whenever he was asked to participate in any public event, and he was always very kind in his comments and providing advice. When Mr. Lewis was interviewed a couple of years ago for the PARC book, “Flying High Again,” Mr. Steadman said, author Marion Calabro asked him -- among all the wonderful memories that he carried with him in his exciting and very active life -- to name his most important or satisfying achievement. He said it occurred when the President of Notre Dame University asked him as a freshman to serve at the President’s Sunday mass. He said he accepted immediately and wound up serving at Sunday masses for the rest of his four years at Notre Dame. Even well into his 90's, Mr. Steadman said, Mr. Lewis’s memory was razor sharp. He could quote the date and time of almost any event. Mr. Lewis was a great man, kind and gracious, Mr. Steadman said, and deserving of the gratitude of the entire community for his devotion to the betterment of Plattsburgh and for being a shining example of grace, faith, intellect and determination. He will be missed.

Old Business: None.

New Business: None.

Public Comments: None.

Chairman: Mr. Duken asked for adjournment to retire to Executive Session. Motion by Mrs. Bourdeau; seconded by Mr. Carroll. 4-0 in favor thereof.

Call to Order: On a motion by Mr. Garrant, seconded by Mr. Carroll, Mr. Duken reconvened the public meeting. 4-0 in favor thereof.

Mr. Garrant moved to adopt a resolution on the topic of a Records Retention Policy, seconded by Mrs. Boudreau. 4-0 in favor thereof.

Mrs. Bourdeau moved to adopt a resolution on the topic of the Champlain Valley Educational Services, seconded by Mr. Garrant. 4-0 in favor thereof.

Mr. Duken asked for adjournment from Public Session. Motion by Mr. Garrant, seconded by Mrs. Boudreau. 4-0 in favor thereof.