Transcript NYCIDA Board of Directors Meeting

NYCIDA Board of Directors
Meeting
February 14, 2012
Minutes of the January 10, 2012
Meeting
Seth Pinsky
Interim Financial Statements
(December 2011)
Bulent Celik
Approval of Selected Trustees
Approval of Trustee Fees
Joseph Gill
Actions Requested
• To approve two Bond Trustees, proposed by
staff, to perform Bond Trustee services for the
Agency’s Bond Financings and PILOT Trustee
services for the applicable Bond Financings and
Straight Lease Transactions.
• To approve Bond Trustee fees that the approved
firms will be permitted to charge for the services
in connection therewith.
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Summary
 Proposed Trustees
– BNY Mellon Trust Company, N.A.
– U.S. Bank National Association
 Proposed Fees
Initial Acceptance Fee per Series
For New Issues
$500
Annual Administration Fee Per
Series
$500
Counsel Fees
Not to exceed $3,000
Out-of-Pocket Expenses
At cost
Fees for PILOT Trustee Services
(Only applicable to BNY Mellon)
$10 per wire/check received
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Officer Appointment
Seth Pinsky
Appointments of
Committee Members
Heidi Springer
Appointments of Committee Members
 Audit Committee – Eugene Lee
 Finance Committee – Marya Cotten
 Governance Committee – Matthew Mirones
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Accurate Specialty
Metal Fabricators, Inc.
Tabby Gillim
64-20 Admiral Avenue, Queens, NY
Block 3608, Lot 61
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Project Summary
 Accurate is seeking to acquire, renovate and
equip a 29,000 SF facility in Queens
 Currently leasing a 28,000 SF facility in
Brooklyn
 Project will be entirely funded by the company
and its affiliates
 All 44 current employees to be relocated
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Current Location: 1333 Flushing Ave, Brooklyn
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•
•
•
28,000 SF
Inefficient layout, odd configuration of buildings
Foreman cannot oversee all employees at once
Narrow doorways make moving materials and products difficult
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Proposed Location: 64-20 Admiral Ave, Queens
Advantages:
• 29,000 SF
• One large, open space
• Will allow Accurate to set up assembly line style production
• All employees visible to foreman
• Wide doorways to easily move materials and products
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Employment Summary
 Employment (on-site)
To be re-located from 1330 Flushing:
New Jobs within Three Years:
Total
 Estimated Average Hourly Wages:
44 jobs
1 job
45 jobs
$26.37
 Employee Benefits:
– All field mechanics at ASMF belong to Local Union 28 of the Sheet Metal
Worker’s International Association.
– Time and a half for overtime
– 11 paid holidays
– One annual sick day and one annual personal day
– Vacation benefits
– Employer contributions to the Workers' Welfare Fund (New York)
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Actions Requested

Approval of and Inducement and Authorizing Resolution for an IIP
transaction for Accurate Specialty Metal Fabricators
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Fresh Direct, LLC and
U.T.F. Trucking, Inc.
Michael Toth
Fresh Direct, LLC
 Fresh Direct plans to build a new $112.6 million state-ofthe-art 500,000 square foot facility in the Bronx
o
o
o
o
Will retain nearly 2,000 existing jobs
Create almost 1,000 new jobs
Create approximately 684 construction jobs
A significant investment by a growing industrial
business in a community in need of jobs
$16,235
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Fresh Direct: Proposed Bronx Location
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Fresh Direct: Proximity to South Bronx Greenway
Fresh
Direct Site
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Summary of Assistance
IDA:
o $74.0 million Industrial Incentive Program
o Up to $10.5 million asset acquisition
EDC:
o $1.0 million Industrial Development Loan Program
o $4.9 million Business Incentive Rate (“BIR”) energy discounts
The Project is estimated to generate $255 million in City tax
revenues.
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
New Facility Rendering
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Manhattan Beer Distributors, LLC
Heidi Springer
Site Map: Proposed Assemblage at East 149th St., Bronx
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Project Background
 Currently leasing a 225,000 SF facility at 400 Walnut
Ave., Bronx
 2009 Agreement to purchase and renovate 1080
Leggett Ave., Bronx will be terminated
– Total amount of sales tax and property tax benefits received
will be subject to future recapture in agreement for proposed
new project
– Escrow account to be established to hold potential recapture
funds between termination and closing of the proposed new
project
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Project Summary
 Assemblage of four parcels located at E. 149th St. in
the Bronx to create an approximately 19.3 acre
distribution facility with rail access
– Parcels have 4 buildings containing, 292,500 SF of space
 Total project costs are estimated to be: $60,407,000
 Project will be funded through commercial loans and
company equity
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Project Summary (con’t.)
 Employment (on-site)
To be re-located from 400 Walnut:
To be re-located from Brooklyn:
To be grown
Total
 Estimated Average Hourly Wages:
 Employee Benefits
528 jobs
67 jobs
25 jobs
620 jobs
$17.97
– Paid sick time up to 6 days/year
– Paid vacation time of 5 days after 1 year of service increasing
to 25 days after 15 years
– Medical and dental plans
– All non-union supervisory employees are provided group life
insurance
– 401K for non-union employees and Company-funded pension
for union employees
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Actions Requested


Approval of and Inducement and Authorizing Resolution for an IIP
transaction for Manhattan Beer Distributors LLC
Approval to enter into an Escrow Agreement related to the potential
recapture liability related to the to-be-terminated 1080 Leggett Ave.
Agreement.
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Proposal for Purchase Contract for
Accounting Policies and
Procedures Manual
Spencer Hobson
Bulent Celik
Proposal for Purchase Contract for
Harlem Incubator
Alejandro Baquero
Project Background
 Nine incubators established to date in different NYC
neighborhoods
 More than 100,000 sf affordable real estate created for
start-up companies, freelancers, entrepreneurs, and small
businesses
 Incubators support approx. 550 businesses, over 800
jobs, and have attracted over $78 million in VC funding
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Project Summary
 Incubator to be located along 125th Street or its
immediate vicinity
 Key consultant responsibilities
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–
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Develop the incubator
Launch and lease the incubator
Manage the incubator
Report on incubator operations and collaborate on publicity
 Competitive, publicly-advertised RFP released 11/11
 Consultant team to be selected in the coming weeks
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Actions Requested

Authorization to purchase consultant services to develop and launch
incubator space in Harlem, preferably along or within the immediate
vicinity of 125th Street
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Proposal for Purchase Contract for
Industrial Business Support Services
Miquela Craytor
Employment in the industrial sector continues to makes up
16.4% of private sector employment in NYC
Industrial Employment in US and
NYC has been on a decline
The size of industrial businesses also
decreased
However, industrial remains a
significant part of NYC’s economy
Historical industrial employment
Average # of employees
NYC Industrial employment (jobs)
120
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100
-14%
86
80
13
-22.8%
-34%
60
13.7
66
12
40
20
NYC
US
11
10.6
10
0
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
TOTAL 495,444
80,603
(16%)
Manufacturing
124,306
(25%)
Transportation
& Warehousing
117,483
(24%)
Construction
173,052
(35%)
Wholesale Trade
1
Source: 1990-2009, NYS Dept. of Labor, QCEW , 1990 = 100
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Source: 1990-2009, NYS Dept. of Labor, QCEW
Source: NYS Dept. of Labor, QCEW , 2009
Industrial represents 16.4% of NYC private sector employment
Increasing share of smaller industrial businesses
Stable Subsectors:
− Construction, warehousing, transportation
− Food manufacturing, short-run fashion production
− Custom fabrication
Note: Industrial sector is primarily comprised of the subsectors of Manufacturing, Transportation and Warehousing, Construction and Wholesale
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
The City looks to build upon its ongoing investment and
support of industrial businesses

The City established 16 Industrial Business Zones in 2006
 Committed not to rezone IBZs to allow residential uses
 Tax credits are offered to encourage industrial relocation
into IBZs
 Four IBZs experienced industrial job growth between 2000
and 2008 – North Brooklyn, Hunts Point, East New York
and Brooklyn Navy Yard
 The Bloomberg Administration proposed a suite of
22 initiatives to address the following challenges
facing the overall sector:
 Scarcity of industrial space in appropriate size,
condition and configuration
 Limited financing resources for smaller
industrial businesses across business cycles
 Lack of entrepreneurial support
Sources: NYC Small Business Services/NYCEDC
PLUTO, May 2009 (09v1), NYC DCP, NYC DDC, NYC DOT
Brooklyn Army Terminal
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Industrial Business Support Services
Program
description and
objective
The Program will help small industrial businesses through the support services
provided by local economic development corporations (the “LDCs”)
Assistance
provided
• Provide a range of support, education and technical services to New York City
industrial businesses, including but not limited to customers in the following
subsectors: Manufacturing, Construction, Wholesale Trade, Repair and
Maintenance, Transportation and Warehousing, Motion Picture and Sound
Recording, and Waste Management and Remediation Services.
• Conduct an assessment of all clients using standard intake procedures, and
provide services appropriate to each customer’s unique needs.
• Enable Industrial Business Zone enterprises to take advantage of small-business
services and assistance offered by the City and to track such assistancerelationships.
Budget
The Agency’s purchase through EDC would subdivide as follows:
• Approximately $35,800 in service-purchases from each of Brooklyn East,
Manhattan, and Staten Island
• Approximately $62,500 in service-purchases from each of Bronx, Queens East,
Queens West, Brooklyn North, and Brooklyn South
Subcontractor
New York City Business Assistance Corporation (“NYBAC”)
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NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY