Project: Project Address: St. Lawrence County Industrial Development Agency Human Services Center 80 State Highway 310 Suite 6, Canton, New York 13617-1496 Phone: (315) 379-9806 Fax: (315) 386-2573 Patrick J. Kelly Chief Executive Officer PROJECT ACTIVITY REPORT Affinity Potsdam Cottages 204, 206 & 208 Main Street Potsdam, NY 13676 Application Date: June 8, 2012 Board Approval Date: December 11, 2012 Financing Date: December 21, 2012 Project Overview: Affinity Potsdam Cottages is a Limited Liability Company headquartered in Buffalo, New York. The Company applied to the St. Lawrence County Industrial Development Agency for financial assistance to construct up to 50 residential buildings containing up to 100 units of student housing to be operated by the Company as a for-rent commercial student housing facility. The Company requested assistance from the St. Lawrence County Industrial Development Agency in the form of sales and use tax exemptions with respect to the qualifying personal property; a mortgage recording tax exemption on the property, and a Payment in Lieu of Taxes ( PILOT ) agreement. The PILOT, deviating from the Agency s standard tax exemption policy, required the consent of the local affected taxing jurisdictions. Actions Taken: The St. Lawrence County Industrial Development Agency accepted the Company s application, authorized the issuance of deviation notices to the local affected taxing jurisdictions, and authorized the holding of a public hearing. A public hearing on the project was held July 5, 2012. The project has not received the consent of the local affected taxing jurisdictions necessary to receive a Payment In Lieu of Taxes Agreement under the terms of the SLCIDA s Uniform Tax Exemption Policy. On December 11, 2012 the SLCIDA approved exemptions in the form of Sales and Use Tax Exemption and Mortgage Recording Tax exemptions. Economic Indicators: See Cost-Benefit Analysis, next page.
FOR AGENCY USE ONLY COST/BENEFIT ANALYSIS: As required by Section 869-A3 of New York General Municipal Law. Estimated COST of Agency Assistance: ESTIMATED EXEMPTIONS: Double click chart to enter data 1. Sales and Use Tax Exemption a. Amount of Project Cost Subject to Tax: $5,600,000 Sales and Use Tax Rate: 7% b. Estimated Exemption: $392,000 2. Mortgage Recording Tax Exemption a. Projected Amount of Mortgage: $15,000,000 Mortgage Recording Tax Rate: 0.75% b. Estimated Exemption: $112,500 3. Real Property Tax Exemption Property Location: a. Investment in Real Property (Total Project Cost): b. Pre-project assessment: c. Projected post-project assessment d. Equalization Rate (for reference only) e. Increase in Assessed Value of Property f. Total Applicable Tax Rates per $1,000 g. Ten Year Total Taxes (e X f X 10) $0 h. PILOT Payments with Standard IDA Pilot (g X.25) $0 i. Net Exemption Amount (g - h) $0 4. Interest Exemption (Bond Only ) a. Total Estimated Interest Expense (assuming taxable interest) b. Total Estimated Interest Expense (assuming tax exempt interest rate) c. Interest Exemption (a b) $0.00 TOTAL ESTIMATED EXEMPTION $504,500 $0 Estimated BENEFIT of Agency Assistance: EMPLOYMENT COMPARISON: Do not include construction jobs relating to the Project. Double click on chart to enter data Pre-Project Employment Post-Project Employment Created Year 1 Created Year 2 Created Year 3 Total New Jobs Current Jobs Full Time 0 4 1 1 6 Part Time 0 0 Seasonal 0 0 Total: 0 4 1 1 6 PAYROLL COMPARISON: Double click on chart to enter data Total Payroll Before Project Total Payroll 1st Year after Project Completion Total Payroll 2nd Year after Project Completion Total Payroll 3rd Year after Project Completion $0 $140,000 $200,000 $200,000 ESTIMATED OTHER BENEFITS: Total New Payroll Sales Tax Revenue If the project will result in the manufacturing of selling of a new product, estimate the amount of annual sales taxes that will be generated on retail sales of the new product. Otherwise, enter N/A. $ If the Project will result in increased production or sales of an existing product, estimate the amount of annual sales tax that will be generated on the retail sales of the increased production. Otherwise, enter N/A. $ Real Property Taxes Estimate the amount of annual real property taxes that will be payable on the Project (at the end of the PILOT Agreement, if any). Otherwise, enter N/A. $280,500 What other benefits will the Project bring to the community and region? New modern housing option to assist the community in remaining competitive in attracting students.