Utica Harbor Point board tables consulting agreements tied to DASNY grant, seeks letter of intent before construction

At a meeting of the Utica Harbor Point Development Corporation, board members discussed two consulting agreements linked to a Dormitory Authority of the State of New York (DASNY) grant for site work near the 33 Building and the adjacent vacant lot and then tabled the resolutions pending further negotiation and a signed letter of intent with a prospective developer.

The items under discussion were (1) a proposal from EM Structural to design ground-improvement work and provide construction administration for the ground-improvement contract — a scope the corporation staff described as necessary for installing and grouting auger columns to strengthen soft soils — and (2) a proposal for engineering services from Ramble to design utility extensions (water, sewer, gas, electric), oversee some interior demolition of the 33 Building and provide full construction inspection for the projects funded by the DASNY award.

Paul (staff member) said the EM Structural proposal was for $30,000 to produce plans and specifications and to administer the ground-improvement contract. Paul added that “the only work we're doing is, design at this point” and explicitly that “you would not absolutely not start construction until the letter of, intent was” executed, signaling the corporation’s intent to withhold construction starts until legal commitments by the prospective developer were in place.

Board members asked whether the DASNY-funded work ties the corporation to a single developer and whether it would create a precedent for using state grant dollars on one parcel and not another (the transcript refers to the 33 Building and a separate 17 Building). Staff replied that the DASNY scope as submitted to the agency refers generically to a developer and to pad‑ready work for the site adjacent to the 33 Building; the grant text does not, in staff’s reading, name Mohawk Valley Gardens (MVG) as the exclusive beneficiary. One board member noted that MVG had been active in lobbying for the funding and had been involved in negotiations since 2022.

Discussion also covered whether the corporation should require a signed letter of intent (LOI) from any prospective purchaser before the corporation executes the consulting contracts or allows construction to begin. Several directors asked that any authorization to execute professional services agreements be made contingent on execution of a letter of intent with an acceptable prospective developer; a motion to amend the resolution to add that contingency was proposed.

After debate, directors moved to rescind the earlier passage of the first motion and then voted to table the two consulting‑agreement resolutions. The board also approved a motion to go into executive session to discuss negotiation strategy and the disposition of real property; members indicated staff would contact the prospective developer (identified in the discussion as Rob Ash of MVG) and his counsel for an update before returning to open session. Staff reported that the DASNY disbursement/authorization paperwork has been returned to the agency and the corporation is awaiting the final agreement.

Clarifying details recorded in the meeting include: the EM Structural proposal specifically covers plans/specs and construction administration for ground improvement and is priced at $30,000; a speaker recalled the broader project budget figure for the utility/demolition/inspection work as about $1.86–$1.89 million but said they could not confirm that number on the record; DASNY grant reimbursement is structured as a reimbursement after documented expenditures; the immediate scope funded by DASNY covers both ground improvement on the vacant lot adjacent to 33 and interior gutting of the 33 Building.

The board left the record that design work (plans and specifications) may proceed under the corporation’s authority, but that no construction work would begin until an acceptable LOI is executed and any remaining contractual and grant conditions are satisfied. The corporation scheduled staff to contact MVG’s representatives and return with an update at a future meeting.

The matter will return to the board once staff reports back from negotiations, after the executive‑session discussions and when the letter of intent and any agency disbursement agreement are in place.