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IDA noncompliant with own by-laws; appointment OK by state by-laws

Aug 9, 2019

By Patricio Robayo - staff writer

By: Patricio Robayo | Democrat
The Sullivan IDA
MONTICELLO — Are the County of Sullivan Industrial Development Agency operating by their own by-laws?

Grahamsville resident Ken Walter doesn't think so and he questioned the Sullivan County Legislature last month about it.
According to section 203 of the IDA by-laws “No Board member shall serve as the… Chief Operating Officer… while also serving as a member of the Board.”

On November 2 of last year, Ed Sykes was appointed as the new Chief Operating Officer after Steve White stepped down. Sykes also is a long-time board member of the Sullivan County IDA.

According to the Executive Director of the IDA Jennifer Flad, “This section of the [Sullivan County's] IDA's by-laws reflects an earlier version of the New York State Public Authorities Law, which has since been updated. 

“NYS Law no longer restricts the CEO or other officers from serving on the Board of Directors,” Flad said.
“Next week the IDA Board will consider a resolution authorizing the amendment of the by-laws to lift this restriction in accordance with current NYS Law.”

On the August 12 agenda for the IDA, an executive session is scheduled to occur “To Obtain the Advice of Agency Counsel Relating to Agency By-Laws and Policies (Attorney-Client Privilege).”

Also on the agenda is a resolution to amend and restate the agency's by-laws.

General Municipal Law of New York State Article 18-A, discusses the law that governs the industrial development agencies in New York State.

According to the counsel for the IDA Walter Garigliano, the IDA has engaged other counsel to assist with amending the by-laws.
Garigliano also cited the change in New York State law that now allows for members to become an officer for the IDA.

“The [Sullivan County] IDA by-laws were not amended to reverse the prohibition [of serving in two capacities] which I expect is simply an oversight,” said Garigliano.

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