Herkimer County IDA approves financial-assistance package and bond authorization for Sherpa Auto LLC property purchase

The Herkimer County Industrial Development Agency approved an application from Sherpa Auto LLC for financial assistance to purchase an industrial property and moved forward on related bond and tax-exemption paperwork at a special virtual meeting. The board approved the application, a finance-committee recommendation for bond issuance, a CEQA environmental review, and a pilot (payment-in-lieu-of-taxes) deviation; final bond terms will be set by the county lender.

The approvals matter because the action clears Sherpa Auto to complete the initial purchase phase of a planned redevelopment and sets the framework for how property taxes will be phased in. Agency staff described this as the first step in a multi-stage project that will later require separate approvals for demolition, construction and any additional financing.

Agency staff outlined the request as an acquisition-only package at this stage. The applicant is proposing a roughly 1,000,000-square-foot facility; the packet lists an estimated project cost of about $2,700,000 for the initial phase. Agency staff told the board the current approvals are for purchase of the property only; future demolition or build-out was not part of the immediate approvals and will require separate review and action.

On financing, the board approved a finance-committee recommendation and a bond resolution framework that authorizes issuing obligations with an estimated amount of $2.5 million and an upper “not to exceed” cap of $4.5 million. Agency counsel explained the higher cap functions as a cushion so the agency or county would not need to return for board approval if the project costs exceed the initial estimate; the board emphasized that the county, as potential lender, will decide the final loan amount and terms. Agency staff said the county’s attorneys were scheduled to meet later the same day to discuss the specific terms; staff committed to circulating those terms to the board once they are received.

The board also reviewed and accepted an environmental determination under the California Environmental Quality Act process included with the bond materials; staff concluded the acquisition constitutes an “unlisted action” and that a negative declaration applies at this acquisition stage because no construction is proposed yet.

Finally, the board approved a pilot deviation for property taxes tied to the acquisition. Staff described the proposed pilot as five years of no property tax payments followed by a phased-in payment schedule; the transcript contains two descriptions of the post-five-year escalation (one reference to 10% increases each year to year 10 and another reference to a 20% start in year six and 20% thereafter). The board did not adopt any construction- or demolition-related approvals at this meeting.

Votes at a glance

- Motion to accept Sherpa Auto LLC application for financial assistance (purchase of property): mover Jim; second Corey. Roll-call recorded yes votes from Albrecht, Basslow, Day, Borecky, Bono and Mendel; outcome: approved.

- Motion to accept finance-committee recommendation regarding bond issuance (packet pages 14–17): mover not specified; second not specified. Roll-call recorded yes votes (names recorded in the transcript during roll call); outcome: approved. The motion authorized proceeding toward a bond resolution framework with an estimated amount of $2.5 million and an administrative “not to exceed” cap of $4.5 million.

- Bond resolution (authorization to proceed subject to county terms and counsel review): mover and second not specified on the record; roll-call recorded board members voting yes (names recorded in the transcript during roll call); outcome: approved. Final loan terms will be set by the county lender and reviewed by agency counsel and bond counsel prior to closing.

- CEQA environmental determination (negative declaration for acquisition stage, packet pages 18–35): mover not specified; roll-call recorded yes votes from Paul Lowe, Patlow, Mitchell and others recorded in roll call; outcome: approved.

- Pilot deviation (payment-in-lieu-of-taxes schedule for the acquisition): mover not specified; roll-call recorded yes votes during roll call; outcome: approved.

Board members and staff repeatedly emphasized that the approvals at this meeting cover the property acquisition and the authorization framework only; funding amounts and loan terms will be finalized by the county and communicated to the board after the county’s attorneys meet to discuss the deal. Agency staff noted that at closing any outstanding liens, unpaid property taxes, or utility arrears on the property will need to be paid from sale proceeds.

The board adjourned after the recorded votes. Staff said they will circulate the county’s finalized terms after the 2:00 p.m. meeting between agency and county counsel and confirmed further approvals will be required before demolition or construction work begins.