Tompkins County Industrial Development Agency

401 E. MLK Jr., Street, Suite 402B, Ithaca, New York 14850 • phone: (607) 273-0005 • fax: (607) 273-8964

Administration provided by TCAD

TOMPKINS COUNTY INDUSTRIAL DEVELOPMENT AGENCY

BOARD OF DIRECTORS MEETING

• Thursday, September 19, 2013 •

3:30 PM Old Jail Conference Room

125 E. Court Street, Ithaca NY

AGENDA 1. CALL TO ORDER 2. PRIVILEGE OF THE FLOOR 3. BUSINESS

Global Phoenix/Kaida Computer Technologies Refinance Resolution Ithacare – Longview Easement Resolution Hotel Ithaca and Conference Center Application TCIDA Uniform Tax Exemption Policy (UTEP)/Recapture Policy/Application Updates

4. STAFF REPORT 5. APPROVAL OF MEETING MINUTES – June 20, 2013 6. ADJOURNMENT

Next Meeting: October 17, 2013

RESOLUTIONAuthorization to execute mortgage documents for revolving line of credit to be obtained by Global

Phoenix Computer Technologies Solutions, Inc. and secured by property leased to the Agency by Kaida

Computer Technologies, Inc.

A regular meeting of the Tompkins County Industrial Development Agency was convened onSeptember 19, 2013 at 3:30 p.m.

The following resolution was duly offered and seconded, to wit:

RESOLUTION AUTHORIZING THE TOMPKINS COUNTY INDUSTRIALDEVELOPMENT AGENCY TO EXECUTE A MORTGAGE AND OTHERDOCUMENTS RELATED TO A REVOLVING LINE OF CREDIT FOR GLOBALPHOENIX COMPUTER TECHNOLOGIES SOLUTIONS, INC. AND SECURED BYPROPERTY CONVEYED TO THE AGENCY TO KAIDA COMPUTERTECHNOLOGIES, INC.

WHEREAS, by Title 1 of Article 18-A of the General Municipal Law of the State of New York,as amended, and § 895-b of the General Municipal Law of the State of New York, as amended(hereinafter collectively called the “Act”), TOMPKINS COUNTY INDUSTRIAL DEVELOPMENTAGENCY (hereinafter called the “Agency”) was created with the authority and power to own, lease andsell property for the purpose of, among other things, acquiring, constructing and equipping civic,industrial, manufacturing and commercial facilities as authorized by the Act; and

WHEREAS, the Company leased property to the Agency by Lease Agreement dated March 20,2008 and the property is described in Schedule A of the said Lease Agreement (“the Property”), allpursuant to an Inducement Resolution adopted by the Tompkins County Industrial Development Agencyon September 7, 2007; and

WHEREAS, Global Phoenix Computer Technologies Solutions, Inc. operates its business on theProperty; and

WHEREAS, Global Phoenix Computer Technologies Solutions, Inc. has received a commitmentfrom First Niagara Bank, N.A. (“the Bank”) for a revolving line of credit (“the Line of Credit”) in anamount that varies at different times of the year between $500,000 (the “Non-Seasonal MaximumAmount”) and $2,500,000 (the “Seasonal Maximum Amount”); and

WHEREAS, as collateral for the Line of Credit, the Bank requires a second mortgage on theProperty (“the Mortgage”); and

WHEREAS, the Mortgage must be executed by the Agency, because the Agency holds aleasehold interest in the Property;

NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE TOMPKINSCOUNTY INDUSTRIAL DEVELOPMENT AGENCY AS FOLLOWS:

IDA\Kaida2013LoanResolution- Page 1 -

WHEREAS, the Agency will not provide financial assistance to the Company related to the Lineof Credit and Mortgage;

NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE TOMPKINSCOUNTY INDUSTRIAL DEVELOPMENT AGENCY AS FOLLOWS:

Section 1. The findings of the Agency as set forth in the Inducement Resolution dated September7, 2007 are incorporated herein.

Section 2. The Agent Agreement dated March 20, 2008 is hereby extended until December 31,2013, for the purpose of entering into an additional mortgage on the Property with theBank, to secure the Line of Credit.

Section 3. The Chairperson, Vice Chairperson and/or the Executive Director of the Agency arehereby authorized, on behalf of the Agency, to negotiate and execute the Mortgage andany and all other affidavits, certificates and documents related thereto (collectively, the“related documents”) as may be required to (1) obtain the Line of Credit referred toabove and (2) pay for the costs and expenses incidental to the Line of Credit, provided:

a. No Event of Default under this Agreement or under any of the other Loan Documentsshall have occurred and be continuing; and

b. The execution of the Mortgage and related documents (1) is permitted by law in effectat the time, and (2) will serve the public purposes of the Act; and

c. The Company shall be responsible for and shall pay, from the proceeds thereof orotherwise, the costs and expenses incidental to the Line of Credit and the Mortgage,including, without limitation, actual counsel fees for Agency’s counsel; and

e. The Mortgage and any related documents, as appropriate, shall contain the non-recourse/special obligation provisions as set forth in the Installment Sale Agreementbetween the Agency and each Company.

Section 4. The officers, employees and agents of the Agency are hereby authorized and directed forand in the name and on behalf of the Agency to do all acts and things required and toexecute and deliver all such certificates, instruments and documents, to pay all such fees,charges and expenses and to do all such further acts and things as may be necessary or,in the opinion of the officer, employee or agent acting, desirable and proper to effect thepurposes of the foregoing resolutions and to cause compliance by the Agency with all ofthe terms, covenants and provisions of the documents executed for and on behalf of theAgency.

Section 5. These resolutions shall take effect immediately.

IDA\Kaida2013LoanResolution- Page 2 -

The question of the adoption of the foregoing resolution was duly put to a vote by roll call, whichresulted as follows:

Member names Yea Nea Abstain AbsentMartha Robertson, Chair [ ] [ ] [ ] [ ]Jim Dennis, Vice Chair [ ] [ ] [ ] [ ]Svante L. Myrick, Secretary [ ] [ ] [ ] [ ]Larry Baum, Treasurer [ ] [ ] [ ] [ ]Will Burbank [ ] [ ] [ ] [ ]Nathan Shinagawa [ ] [ ] [ ] [ ]Grace Chiang [ ] [ ] [ ] [ ]

The resolution was thereupon duly adopted.

I, Svante L. Myrick, as Secretary of the Tompkins County Industrial Development Agency,hereby certify that the above is a true and correct copy of a duly authorized resolution of the TompkinsCounty Industrial Development Agency.

Dated: September ______, 2013 ___________________________________________________Svante L. Myrick, Secretary of the Tompkins CountyIndustrial Development Agency

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AMENDED RESOLUTIONEasement across Ithacare / Longview project property

A regular meeting of the Tompkins County Industrial Development Agency was convened onSeptember 19, 2013 at 3:30 p.m.

The following resolution was duly offered and seconded, to wit:Resolution authorizing the Tompkins County Industrial Development Agency to execute allnecessary documents to grant a permanent easement along the western boundary of propertydescribed in a deed recorded in the Tompkins County Clerk’s office in Liber 869 of Deeds atpage 296, in the Town of Ithaca, Tompkins County, New York (re: tax map no. 39.-1-1.31) tothe Town of Ithaca for a trail that will connect with other trails for a link to Buttermilk FallsState Park as part of the Town’s open space plan, and a temporary easement for constructionof the trail. WHEREAS, title to the property more particularly described in a deed recorded in the Tompkins

County Clerk’s office in Liber 869 of Deeds at page 296 (“the Property”) was conveyed to the TompkinsCounty Industrial Development Agency (“the Agency”) by said Deed from Ithacare Center Service Company,Inc. (“the Company”) pursuant to an Inducement Resolution adopted by the Agency; and

WHEREAS, the Company seeks to grant the Town of Ithaca (“the Town”) a permanent easementalong the western boundary of the Property for a trail that will connect with other trails for a link to ButtermilkFalls State Park as part of the Town’s open space plan, and a temporary easement for construction of the trail(“the Easements”); and

WHEREAS, the instrument(s) granting the Easements must be executed by the Agency, because theAgency holds fee title to the Property;

NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE TOMPKINS COUNTYINDUSTRIAL DEVELOPMENT AGENCY AS FOLLOWS:

Section 1. The Chair, Vice Chair and/or the Administrative Director of the Agency are hereby authorized,on behalf of the Agency, to execute:

(a) the Easements and any amendments thereof;(b) all other necessary documents;

subject to review of such documents by legal counsel for the Agency; and, where appropriate, the Secretaryof the Agency is hereby authorized to attest to the Agency documents, all with such changes, variations,omissions and insertions as the Chair, Vice Chair and/or Administrative Director of the Agency shall approve,the execution thereof by the Chair, Vice Chair and/or Administrative Director of the Agency to constituteconclusive evidence of such approval; provided in all events recourse against the Agency is limited to theAgency’s interest in the Project.

Section 2. The Company shall be required to pay any and all costs incurred by the Agency in connectionwith this resolution and the Easements, including but not limited to the Agency’s attorney’s fees.

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IDA\Ithacare-Longview 2013 Easement.res

Section 3. These resolutions shall take effect immediately.

The question of the adoption of the foregoing resolution was duly put to a vote by roll call, whichresulted as follows:

Member names Yea Nea Abstain AbsentMartha Robertson, Chair [ ] [ ] [ ] [ ]Jim Dennis, Vice Chair [ ] [ ] [ ] [ ]Svante L. Myrick, Secretary [ ] [ ] [ ] [ ]Larry Baum, Treasurer [ ] [ ] [ ] [ ]Will Burbank [ ] [ ] [ ] [ ]Nathan Shinagawa [ ] [ ] [ ] [ ]Grace Chiang [ ] [ ] [ ] [ ]

The resolution was thereupon duly adopted.

I, Svante L. Myrick, as Secretary of the Tompkins County Industrial Development Agency, herebycertify that the above is a true and correct copy of a duly authorized resolution of the Tompkins CountyIndustrial Development Agency.

Dated: September ______, 2013 ___________________________________________________Svante L. Myrick, Secretary of the Tompkins County IndustrialDevelopment Agency

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CITY OF ITHACA 108 East Green Street — 3rd Floor Ithaca, New York 14850-5690 DEPARTMENT OF PLANNING, BUILDING, & ECONOMIC DEVELOPMENT DIVISION OF PLANNING & ECONOMIC DEVELOPMENT JOANN CORNISH, DIRECTOR OF PLANNING & ECONOMIC DEVELOPMENT PHYLLISA A. DeSARNO, DEPUTY DIRECTOR FOR ECONOMIC DEVELOPMENT Telephone: Planning & Econ. Develop. – 607-274-6550 ! Community Development/IURA – 607-274-6559 E-Mail: dgrunder@cityofithaca.org E-Mail: iura@cityofithaca.org Fax: 607-274-6558 Fax: 607-274-6558

TO: Svante Myrick, Mayor Common Council

Aaron Lavine, City Attorney Ray Benjamin, Acting Superintendent of Public Works Edward Marx, Tompkins County Commissioner of Planning Gary Ferguson, Downtown Ithaca Alliance (DIA) Julie Holcomb, City Clerk Nels Bohn, Director, Ithaca Urban Renewal Agency (IURA) Phyllisa DeSarno, Deputy Director for Economic Development Planning & Development Board Tompkins County Industrial Development Agency (TCIDA)

FROM: Jennifer Kusznir, Economic Development Planner DATE: August 9, 2013 RE: City of Ithaca Community Investment Incentive Tax Abatement Program (CIITAP):

Hart Hotels, Inc. Project Application

On August 19, 2013, the City of Ithaca will hold a Public Information Session for the proposed Hart Hotels, Inc. expansion project, to be located at the existing Holiday Inn location, which will be renamed as a part of this project. The Public Information Session will begin at 5:30 PM, in Common Council Chambers, Third Floor, City Hall, 108 East Green Street, Ithaca. In accordance with CIITAP, the developer and project team will present information about the project and answer questions from the public. The project will demolish three guestroom wings and replace them with a new eight-story tower of 97 guestrooms. The existing tower and commercial building will be saved, but fully renovated. The hotel room count will decrease from 181 to 177. Convention and meeting space will be expanded from 4,000 square feet to 15,000 square feet, including a new 6,000 square-foot ballroom, with seating capacity of over 400. A new café will be created on the ground floor of the new tower, with street presence on South Cayuga Street, and a rooftop entertainment complex will be added to the top of the new tower. The project will also include first-floor workforce housing units for up to 15 employees. Please find attached the completed CIITAP application. If you have questions or require additional information, please feel free to contact me at: jenniferk@cityofithaca.org.

Department of Assessment 128 East Buffalo Street

Jay Franklin Inclusion through Diversity Irene Kehoe Director Assistant Director

Mail Address: Tel: 607-274-5517 128 East Buffalo Street Fax: 607-274-5507 Ithaca, New York 14850 assessment@tompkins-co.org http://www.tompkins-co.org/assessment/

August 12, 2013 Lenroc LLC Attn: David Hart 609 Dingens St Buffalo NY 14206 Dear Mr Hart, Based upon the proposed project for parcel 70.-7-4.2 located in the City of Ithaca, it is safe to say that this project will result in an increase in the assessed value of over $500,000. If you require further information, please do not hesitate to ask. Sincerely,

Jay Franklin Director of Assessment

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Hart Hotels Ithaca Hotel Project ― Public Information Session ―

Meeting Minutes August 19, 2013 – 5:30 p.m.

Common Council Chambers ― 3rd Floor, City Hall

Introductions

JOANN CORNISH, City of Ithaca, Director of Planning, Building, and Economic Development JENNIFER KUSZNIR, City of Ithaca, Economic Development Planner

HEATHER FILIBERTO, Tompkins County Area Development (TCAD), Director of Economic Development Services

DAVID HART, Hart Hotels, Ithaca Hotel Project, Developer

Project Approvals to Date

Cornish briefly summarized project approvals completed to date:

• December 12, 2011 – Submission of Site Plan Review Application • February 3, 2012 – Revised Drawings Submitted • February 23, 2012 – Neighborhood Meeting #1 • March 19, 2012 – Neighborhood Meeting #2 • March 27, 2012 – Negative Declaration of Environmental Significance issued by

the Planning Board. (Review included: Construction Impacts; Stormwater Pollution Prevention Plan; Aesthetics; Impact on Historic Resources; Transportation; Noise and Odors; Public Health; and Growth and Character of Community.)

• April 3, 2012 – Area Variance granted for relief from two-story minimum to allow the one-story conference center.

• County Planning Department determined project has no negative inter-community or county-wide impacts.

• June 7, 2012 – Revised Drawings Submitted • July 10, 2012 – Revised Drawings Submitted • July 24, 2012 – Preliminary and Final Site Plan Approval issued by Planning Board. • January 11, 2013 – Asbestos Survey Submitted & Noise Impact Assessment

Submitted • June 7, 2013 – Revised Drawings Submitted

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Overview of Community Investment Incentive Tax Abatement Program (CIITAP)

Kusznir briefly summarized the City’s CIITAP process and the minimum size, density, and location criteria. Minimum eligibility criteria are as follows:

• Minimum Size – Projects must be able to demonstrate that they will increase the property value.

• Minimum Density – Projects must be at least 3 stories in height or be a major restoration of an existing structure.

• Project must be located in the City of Ithaca Density District shown below.

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Overview of Tompkins County Industrial Development Agency (TCIDA)

Filiberto summarized the role of the IDA and the full application process. After a project receives City endorsement, the IDA has a preliminary meeting to review the application and schedules a public hearing. After the public hearing is held, the IDA has a subsequent meeting to review the comments received and consider the project for abatement.

Project Presentation

Owner and applicant, David Hart, then presented an overview of the proposed development project. Plans include closing the entire hotel in November of this year. The existing two-story wings, each containing 22 rooms, will be demolished, while the existing tower will undergo complete renovation. Once this work is completed, the hotel will partially re-open with 80 guest rooms in May 2014, while construction on a new tower continues for an additional year. The work is expected to be completed in May 2015. The hotel will contain 177 total guest rooms. In addition to the hotel, a 15,000 square-foot conference center will be added to the north side of the hotel. The conference center will seat up to 400 and will not only used for conferences, but for large-scale events, weddings, etc. The existing ballroom and meeting spaces will remain and be used for smaller venues and breakout spaces when needed. A restaurant/bar and entertainment space will be located on the roof of the new tower. Hart is also proposing to offer housing on the premises for approximately 12-15 employees, at a reduced rental rate.

Questions & Answers

Applicable questions from attendees and developer responses are summarized below, but are not recorded verbatim.

Public Comment: Proposed conference center is not large enough to attract a large conference.

Developer Response: The site is being utilized to its maximum capacity. This proposal is expected to be able to attract small- to medium-sized conferences.

Public Comment: Will the Holiday Inn brand name be dropped?

Developer Response: Yes.

Public Comment: Increased traffic and car pollution will have negative health impacts. This project will result in more cars and more traffic.

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Public Comment: Roof-top entertainment space appears to be facing the residential area. The developer should consider reversing the location of the entertainment area, so the noise will be on the Cayuga Street side, away from the residences to the west.

Developer Response Due to the building height and the proposed sound attenuation (glass panels), as shown in the Noise Impact Assessment, the noise is not expected to impact neighboring properties.

Public Comment: Who will pay for the parking?

Developer Response: The guests will pay for their own parking.

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Public Comment: The City needs low-cost meeting space for community groups. Would the developer consider allowing non-profits and other community groups to use the conference space at a reduced rate, when it is not being used for other functions?

Developer Response: The Holiday Inn currently hosts the Rotary Club and plans to continue this service. They may consider offering similar services to other groups, but this has not yet been determined.

Public Comment: For the workforce housing units, if an employee quits their job, would they need to vacate their property by the end of the week?

If some units are not used by employees, would the owner consider making them available to the public?

Developer Response: The units are intended to be used by employees on a short-term basis; however, all the details have not yet been thought through. If an employee leaves their job, they would certainly be given adequate time to secure other living arrangements, but the expectation would be that the units are for employees.

Public Comment: Will employees who take advantage of the housing have reduced wages?

Developer Response: No, it is intended to be an added benefit.

Public Comment: Has this housing arrangement ever been done before?

Developer Response: The Holiday Inn currently has been testing similar arrangements on a very limited basis.

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Public Comment: As general manager of the Statler Hotel and Chair of the Tompkins County Strategic Tourism Planning Board, the area needs more conference space. Low mid-week occupancy is not good for employees. Hotels are always looking for additional employees on the weekends, but cannot support the same number of employees on weekdays.

Public Comment: Nearly 70% of property in the City is off the tax rolls; the last thing the City needs is more tax abatement. What if the lifecycle of the hotel is less than the abatement period? The abatement is unfair to existing businesses. Average tax payers are bearing the burden of big developers getting property tax abatements. Large projects will increase traffic in the City. It is also unfair for the City to provide parking to the developers. The City should not be maintaining and paying for parking for the developer.

Developer Response: The property will not be tax-exempt. The property will still pay significant taxes, even if it receives the abatement. The abatement is only for a portion of the taxes, and only on the increased investment to the property, not on any of the existing property values. Should the business fail, then the investment would remain and another owner would take it over. The investment is completely private; the only City investment would be to forgive a portion of the additional taxes, which would only be generated if this project moves forward.

Mayor Response: The City has already constructed the garages and has to maintain them; however, there are about 450 vacant spaces. The more the spaces remain vacant, the more the City has to subsidize the costs of maintaining them.

When considering this project, the question should not be whether or not to build additional hotel rooms. The market has determined it can support more hotel rooms. The question is whether to the hotel rooms will be built in the City or in our neighboring communities. If the hotels are downtown, then the guests are less likely to rely on their personal vehicles.

Public Comment: Speaking from personal experience, planning a wedding in Ithaca is extremely difficult, because of the limited available large-function space. The conference space will have a profound impact on the community.

(Rick Adie, General Manager, Statler Hotel)

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Public Comment: The current living wage for this area is $12.62/hour. Paying employees a living wage is a very important issue for this area. Developing a plan to address living wage issues for your employees would generate a lot of support for this project. Also, a diversity plan is essential and should not only address diversity in lower-level employees, but should include diversity in the management staff.

Developer Response: Diversity is very important to us and we certainly understand it should extend beyond lower-level employees. We also understand that diversity goes beyond race. We offer flexible shifts for working parents and have many single mothers who work for us. We understand employees need to be allowed to make their families their number one priority and we work with our employees to allow them to have that balance.

Public Comment: As general manger for the Holiday Inn for the last 4½ years, I can say that they are an excellent employer. For the first 5-6 months after taking this position, my mother was very ill and the Hart family allowed me to work half-time and still paid me for full-time. This company is extremely supportive of their employees.

Mayor Comment: The City is launching a hospitality training program and is looking for hotels to host the people in training; and I want to thank Mr. Hart for considering being a host hotel.

Developer Response: These programs are beneficial to us. We are always looking for good associates. We would rather have associates who want to learn and have a good attitude, regardless of whether they have any previous experience.

Public Comment: The workforce housing is a great benefit. Is there a policy for how long employees will be able to live in these units?

Developer Response: The details have not yet been established; however, the current plan is to have them used for short-term occupancy, until they can get settled in the community. The occupancy rules will need to be established.

Public Comment: The Ithaca/Tompkins County Convention & Visitors Bureau has economic data to support the demand for a conference center and the beneficial economic impacts that can result from having one located downtown.

(Tiffany Gallagher, Holiday Inn General

Manager)

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Public Comment: As an event planner, I can also confirm that event space is needed.

Public Comment: Will you use local contractors?

Developer Response: The main contractor will likely be the Krog Corporation from Buffalo. We have worked with them in the past. However, we will try to use local trades, where they are available.

Public Comment: This project will have an impact on McGraw House.

Developer Response: We did a sound study and we do not feel it will have a negative impact on the McGraw House.

Public Comment: Would it be possible to host an informative meeting about the construction, for the public?

Developer Response: Yes, as we get closer to construction we will hold a public meeting to discuss the construction plans.

Public Comment: This project will generally be positive. However, the Marriott has a commitment of wages for their housekeeping staff, that was established when it purchased the land from the City. This arrangement would put them at a disadvantage to the Hart Hotels project. As this project is considered, the wages for the housekeeping staff will be an issue.

(Will Burbank, IDA Member)

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I. Objective

In conjunction with the goals of the Tompkins County Comprehensive Plan, the objective of the CIITAP is to encourage development in the City that would increase jobs, increase the tax base, promote density in the City core, to encourage rehabilitation and redevelopment of underutilized sites and to help create a vibrant downtown center. Specifically the goals, as stated in the Tompkins County Comprehensive Plan, are as follows:

■ Strengthen and enhance the City of Ithaca’s downtown area as the urban center of the county.

■ Increase the amount and density of housing and business space in the central business districts throughout the county.

■ Promote greater density by encouraging development of existing “gaps” left by abandoned buildings and vacant parcels.

II. Eligibility Criteria

Project sponsors applying for tax abatement(s) under the City of Ithaca Community Investment Incentive Program must meet the following size, density, and location requirements:

1.) Project Size Requirement - In order to meet the minimum project size requirement to be eligible for tax abatements under the CIITAP program, a project must provide a letter from the Tompkins County Assessment Office that states that the project will result in an estimated increase in the assessed value of the property by at least $500,000.

2.) Project Density Requirement - In order to meet the minimum density requirement to be eligible for tax abatement under the CIITAP program, a project must either:

Contain a minimum of 3 occupiable stories in height.

or

Must be a major restoration of an existing structure.

The Community Investment Incentive Tax Abatement Program (CIITAP) is a property tax abatement program that allows property owners to apply for abatement for a portion of their property taxes for a period of up to 7 years.

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3.) Project Location Requirement - In order to meet the location requirement to be eligible for tax abatement under the CIITAP program, a project must either:

Be located in the City of Ithaca Density District

or

Be a redevelopment of a Brownfield site that is registered as a DEC inactive hazardous waste site. http://www.dec.ny.gov/cfmx/extapps/derexternal/index.cfm?pageid=3

Eligibility is determined by the Mayor of the City of Ithaca, based on the above-stated criteria. Once eligibility has been determined, the Mayor will provide a letter of endorsement to the Tompkins County Industrial Development Agency (IDA). (See Section IV for complete application process.)

II. Density District Boundary

III. Incentive Package

Property Tax Abatement – The standard CIITAP property tax abatement will begin at 90% in year one and decrease in equal increments over seven (7) years. Applicants may

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request a enhanced property tax abatement that begins at 100% in year one and decreases in equal increments over ten (10) years if the applicant can demonstrate financial need as determined by a review by IDA administrative staff of the project pro forma and demonstration of an annual return on investment less than 20% in the first five years. The abatement will only impact taxes on improvements to the property and not taxes on the existing value. The IDA retains the ability to offer more than the standard abatement package based on an analysis of the impact on the economy, the needs of the business, and input from the City of Ithaca. The IDA may negotiate additional abatements based on financial need.

• Sales Tax Abatement – The applicant will be exempt from both the local and State portion of sales tax on construction materials, equipment, and furnishings associated with the project.

• Mortgage Recording Tax – The applicant will be exempt from the State portion of the Mortgage Recording Tax ($2.50 per $1,000)

IV. Application Process

Tompkins County Area Development, Inc. (TCAD) provides administrative and marketing services to the IDA. Potential applicants should contact the City Planning Department to schedule a meeting with Planning Staff and TCAD staff to determine project eligibility. If the project appears to be eligible, TCAD will assist with completing the application for assistance. It is strongly advised that potential applicants schedule the initial eligibility determination meeting as early in the process as possible in order to determine if the dollar value of the proposed incentives exceeds the associated fees. Based on the nature of the project and the incentives requested, the following will occur:

1. Eligibility Determination Meeting - A developer seeking a tax abatement under this program must first have a joint meeting with staff from TCAD and the City Planning Department.

2. CIITAP Application - A developer must submit a completed CIITAP application to the City of Ithaca Planning Department. The application will be reviewed for completeness and will be submitted to the Mayor for consideration.

3. Public Information Session – The City will schedule a public information session, at which the developer will be responsible for presenting information about the project and answering questions from the public. The City will advertise the public information session with a press release to the local media. The developer is responsible for posting the property at least 5 days prior to the public information session, with the date, time and location of the meeting.

4. City Approval– A City CIITAP Review Committee, consisting of the Mayor, the Director of Planning and Development, and the Director of the community development for the IURA, will consider project

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approval, based on the stated criteria density, size, and location. If criteria are satisfied, the CIITAP review committee will forward the completed application, along with a letter of approval to the IDA.

5. IDA Application –A developer will submit a standard IDA application to the IDA for consideration in addition to the CIITAP application and Mayor’s approval letter. The IDA will make an independent determination of the project.

6. Public Hearing – Following an initial review, the IDA will, if favorably disposed toward a project, schedule a public hearing on the proposed incentive package. Standard IDA policies apply with regards to public hearing notification and other requirements.

7. IDA Determination – Following a public hearing, the IDA will make a conditioned determination on the project. No final decision may be reached by the IDA until SEQR requirements have been met by the developer.

8. Notification and Reporting – The IDA will notify the City of Ithaca and appropriate taxing jurisdictions once a project is approved. The IDA may diminish or rescind incentives should the project materially change. IDA agreements generally have claw back requirements.

9. Applications under this policy may not be accepted after December 31, 2017 unless the IDA and City of Ithaca vote to extend the policy beyond that date.

Refer to the Tompkins County Industrial Development Agency Mission, Policies and Procedures for additional information.

V. Application Fees

The applicant is responsible for payment of the following fees associated with the CIITAP process.

1. Administrative Fees -The applicant is responsible for paying the IDA Administrative Fee at the time of closing. This fee will be equal to 1% of the total value of expenses that are positively impacted by IDA incentives. This includes the value of construction of improvements to property that is impacted by property and sales tax abatement and the value of furniture, fixtures and equipment that are impacted by sales tax abatement. It will not include any purchases, such as manufacturing equipment, where the IDA does not deliver an incentive. Soft Costs (legal, consulting, financial, architectural and engineering fees) will be included in the amount considered as total value of expenses. In an attempt to make its incentive program cost effective for smaller projects, the IDA will reimburse the applicant for 100% of the Administrative Fee, IDA Counsel Fee, and IDA Bond Counsel Fee associated with the IDA involvement in the project if the total project cost is less than $1 Million. For total project cost greater than $1 Million but less than $2 Million, the reimbursement of fees will be reimbursed on a sliding scale that declines

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from 100% to 0% gradually based on project size. There will be no reimbursement of fees for projects with costs over $2 Million. The reimbursement will take the form of additional property tax abatement credited to the business in the initial years of the Payment In Lieu of Tax agreement (PILOT). The IDA retains the right to determine the credit the applicant will receive. For projects where there is no property tax abatement, there will not be any form of fee reimbursement.

2. IDA Counsel Fees – The applicant is also responsible for paying the IDA for all legal costs it incurs including IDA Counsel and Bond Counsel fees.

3. Applicant Attorney Fees – The applicant is responsible for its own attorney fees associated with closing IDA incentives.

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III. Tax Abatement Application

CIITAPCIITAP Application for Tax AbatementApplication for Tax Abatement

The City of Ithaca Community Investment Incentive Program provides incentives for investment in the City. The incentives include property tax reductions and/or abatements for a period of up to 7 years. Applicants and projects must meet the minimum eligibility requirements (see application Part 5) in order to apply for the program

Part 1. –Applicant Information

Application Date:____/____/_____ Company/Applicant Name:________________________________________________

Primary Contact:________________________________________________________

Address:_________________________City:__________State:______Zip:__________

Phone:___________________________Email:_________________________________

Applicant Attorney:______________________________________________________

Attorney Address:_________________City:__________State:______Zip:__________

Attorney Phone:___________________Email:_________________________________

Applicant Accountant:____________________________________________________

Accountant Address:________________City:__________State:_____Zip:_________

Accountant Phone:_________________Email:________________________________

Applicant Engineer/Architect:______________________________________________

Address:_________________________City:__________State:______Zip:__________

Phone:___________________________Email:_________________________________

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Will a separate company hold title to/own property in question that is separate from the operating company? If yes, please provide the name and contact information for that entity.

Company Name:________________________________________________

Primary Contact:________________________________________________________

Address:_________________________City:__________State:______Zip:__________

Phone:___________________________Email:_________________________________

Describe the terms and conditions of the lease between the applicant and the owner of the property:__________________________________________________________

________________________________________________________________________

Part 2. –Business History

Year Company was Founded:______

Type of Ownership (Corporation, LLC, Sole Proprietor):_____________________

Product or Service:___________________________________________________

____________________________________________________________________

Major Customers:_____________________________________________________

_____________________________________________________________________

Major Suppliers:______________________________________________________

_____________________________________________________________________

Major Local Competitors:_______________________________________________

______________________________________________________________________

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Part 3. –Project Description

Project Narrative:________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

Project Location:________________________________________________________

Property Size (acres) - both existing & proposed:_____________________________

Building Size (square feet) - both existing & proposed:_________________________

Proposed Project Start & Completion Dates:_________________________________

Do you certify that this project will not result in the relocation of all or part of any business or jobs from another county within New York State to Tompkins County? ______Yes ______No

List the names, nature of business of proposed tenants, and percentage of total square footage to be used for each tenant (additional sheets may be attached, if necessary):______________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

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Part 4. –Project Costs

Value of land to be acquired (if any):________________________________________

Value of buildings to be acquired (if any):____________________________________

Cost of New Construction:___________________% subject to local sales tax_______

Value of Improvements:_____________________% subject to local sales tax_______

Value of Equipment to be Acquired:___________% subject to local sales tax_______

Other:____________________________________% subject to local sales tax_______

Total:____________________

Part 5. – Criteria

Will the proposed project result in an increase to the tax roll value of new real property by at least $500,000? ________

Does this project contain at least three occupiable stories? __________________

Proposed Height (in stories and feet):___________________

Does the project include a rehab of an existing structure? ____________

Is the project located in the City of Ithaca Density District? __________

Does the project contain the redevelopment of a Brownfield site? _________

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IV. Certification___________________________________________________

_______________________________________________________deposes that he/she is the _______________ (Name of chief executive officer of company submitting application) (Title)

Of ___________________ , the corporation named in the attached application; That he/she has (Company Name)

read the foregoing application and knows the contents thereof; that the same is true to his

knowledge. Deponent further says that the reason this verification is made by the

deponent and not by ____________________________ is because the said company is a corporation. (Company Name)

The grounds of deponent’s belief relative to all matters in the said application which are

not stated upon his own personal knowledge, are investigations which deponent has

caused to be made concerning the subject matter of this application as well as information

acquired by deponent in the course of his duties as an officer of and from the books and

papers of said corporation.

As an officer of said corporation (hereinafter referred to as the “Applicant”), deponent

acknowledges and agrees that applicant shall be and is responsible for all costs incurred

by the nonprofit Tompkins County Industrial Development Agency (hereinafter referred

to as the “Agency”) acting in behalf of the attached application whether or not the

application, the project it describes, the attendant negotiations and ultimately the

necessary issue of bonds or transfer of title are ever carried to successful conclusion. If,

for any reason whatsoever, the Applicant fails to conclude or consummate necessary

negotiations or fails to act within a reasonable or specified period of time to take

reasonable, proper, or requested action, or withdraws, abandons, cancels, or neglects the

application or if the Agency or Applicant are unable to find buyers willing to purchase

the total bond issue required or financing for the project, then upon presentation of

invoice, the Applicant shall pay to the Agency, its agents, or assigns all actual costs

involved in conduct of the application, up to that date and time, including but not limited

to fees of bond counsel for the Agency and fees of general counsel for the Agency. Upon

successful conclusion and sale of the required bond issue or transfer of title the Applicant

shall pay to the Agency an administrative fee set by the Agency, not to exceed an amount

equal to 1% of the total project cost. The cost incurred by the Agency and paid by the

Applicant, including bond counsel, the Agency’s general counsel’s fees and the Agency’s

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administrative fees, may be considered as a cost of the project and included as part of the

resultant bond issue.

___________________________________________________

(Signature of chief officer of company submitting application)

NOTARY

Sworn to before me this

_______ day of ______________, 20______

____________________________________

V. Completion Status (To be Completed by Staff)

Eligibility Criteria:

Size ________________

Density ________________

Location ________________

Additional Documentation Submitted: _____________

Staff Review Date______________

Mayor’s Endorsement date_____________

TOMPKINS COUNTY

INDUSTRIAL DEVELOPMENT AGENCY

Mission, Policies and Procedures

Adopted: July 16, 1992 Revised: December 16, 1993, March 20, 1997, September 16, 1999,

November 16, 2000, September 20, 2001, October 4, 2002, April 2, 2004, April 6, 2007, July 17, 2007, December 7, 2007, January 16, 2009, December 8, 2009, May 18, 2012, January 2013

MISSION The primary mission of the Tompkins County Industrial Development Agency (IDA) is to offer economic incentives to Tompkins County businesses in order to create and retain quality employment opportunities and strengthen the local tax base. The IDA targets the industrial sector and will only consider other sectors if certain criteria are met. POLICIES A. Eligible Projects In general, the IDA avoids offering incentives to businesses that will compete with or displace existing Tompkins County businesses. It prefers to assist those businesses that have a market for products or services extending beyond Tompkins County including "back office" operations and regional or national headquarters. The IDA will also assist companies selling their product or service in the County when it is clear their primary competition is from outside of the County. Types of eligible projects:

1. Industrial - The IDA targets the industrial sector because of the quality of the jobs this sector creates and because it is unlikely applicants will be competing with other Tompkins County businesses. The IDA defines 'industrial' very broadly to include computer software, agri-business, printing, publishing, and research and development.

2. Retail/Commercial Projects - The IDA will only consider retail/commercial projects under the following conditions: a. The project is a critical part of a larger, planned development.

b. The project must be endorsed, by the appropriate municipal governing body or a committee appointed by the

municipal governing body. c. In addition to these local policies, New York State prohibits retail projects unless some of the following

conditions are met; the project:

i. Is considered a tourism destination facility ii. Is operated by a not-for-profit corporation iii. Will locate outside of the State without IDA assistance iv. Is located in a highly distressed area v. Makes available goods or services not reasonably accessible vi. Preserves or increases permanent jobs

3. As of January 2008, the TCIDA no longer issue tax-exempt bonds. Tompkins County Development

Corporation (TCDC) has been set up to take over this feature. Please see www.tompkinsdc.org Not-for-Profit Projects - The IDA views its principle role as assisting industrial projects, however New York State

law now makes it possible for the IDA to help not-for-profit corporations finance certain facilities through the issuance of bonds. The IDA recognizes not-for-profit corporations as vital to the community, therefore, job creation is not the primary consideration when reviewing these projects. The IDA will only consider not-for-profit projects that meet the conditions of either item “a.” or item “b.”; and the conditions of item “c.” (see below):

a. IDA incentives will assist the applicant deliver services important to the health, well-being or quality-of-life of

local residents.

Heather Filiberto� 9/11/13 9:52 AMDeleted: through a formal resolution,

TCIDA Mission, Policies and Procedures p. 2

b. The applicant’s operation has important and measurable direct or indirect benefits to the Tompkins County

economy in terms of property tax, sales tax and employment. IDA incentives will help support the ability of the applicant to operate in an efficient and productive manner.

c. IDA incentives will not result in an unfair competitive advantage with similar for-profit or not-for-profit

operations in the County. 4. Community Investment Incentive Tax Abatement Program (CIITAP) for City of Ithaca Downtown Projects – for

application process and incentives to be delivered, please refer to the separate policy.

5. Energy-Related Investment Projects: The IDA wishes to encourage local businesses to invest in facilities and equipment that will increase energy efficiency and/or transition to renewable energy sources, reduce operating costs, and lower emissions. The IDA will consider offering sales tax abatement to encourage these types of investments. The IDA will require a completed standard application and a separate statement that includes details on the proposed investment and the resulting reduction in energy use. To be considered, projects should meet NYSERDA or LEED criteria. The successful applicant will not need to report on job creation after completion of the project, but will be expected to report on energy use, comparing pre project and post project data.

6. IDA Lansing Town Center Incentive Zone Program Projects– for application process and incentives to be delivered,

please refer to the separate policy IDA Lansing Town Center Incentive Zone Program. B. Fees The applicant is responsible for paying the IDA Administrative Fee at the time of closing. This fee will be equal to 1% of the total value of expenses that are positively impacted by IDA incentives. This includes the value of construction of improvements to property that is impacted by property and sales tax abatement and the value of furniture, fixtures and equipment that are impacted by sales tax abatement. It will not include any purchases, such as manufacturing equipment, where the IDA does not deliver an incentive. Soft Costs (legal, consulting, financial, architectural and engineering fees) will be included in the amount considered as total value of expenses. The applicant is also responsible for paying the IDA for all legal costs it incurs including IDA Counsel and Bond Counsel fees. In an attempt to make its incentive program cost effective for smaller projects, the IDA will reimburse the applicant for 100% of the Administrative Fee, IDA Counsel Fee, and IDA Bond Counsel Fee associated with the IDA involvement in the project if the total project cost is less than $1 Million. For total project cost greater than $1 Million but less than $2 Million, the reimbursement of fees will be reimbursed on a sliding scale that declines from 100% to 0% gradually based on project size. There will be no reimbursement of fees for projects with costs over $2 Million. The reimbursement will take the form of additional property tax abatement credited to the business in the initial years of the Payment In Lieu of Tax agreement (PILOT). The IDA retains the right to determine the credit the applicant will receive. For projects where there is no property tax abatement, there will not be any form of fee reimbursement. For Civic Facility projects where the debt is restructured and for all other projects where the debt is refinanced or restructured, the IDA fee will be 1% of the debt service saved over the term of the new financing that results from the restructuring or refinancing or $1,000, whichever is greater. C. Property Tax Abatement for Standard Industrial Applications The IDA is not required to pay real property taxes on any property it acquires. The IDA will require the applicant to make Payment In Lieu of Tax (PILOT) payments to all of the taxing authorities according to the following guidelines. 1. The following will be the standard property tax abatement offered to qualified businesses: YEAR ABATEMENT 1 90% 2 77% 3 64% 4 51% 5 39% 6 26% 7 13%

TCIDA Mission, Policies and Procedures p. 3

2. The standard abatement will only impact taxes on improvements to the property and not taxes on existing property. 3. The IDA retains the ability to offer more than the standard abatement based on an analysis of the impact on the

economy and the needs of the business. All appropriate taxing authorities will be notified of the reasons for deviation from standard policy and given an opportunity to review and comment on each project seeking a higher level of abatement before final IDA approval.

An applicant’s request for more than the standard abatement, should be supported by appropriate financial documentation that clearly substantiates the need for the deviation. This documentation should include a comparison of standard vs. proposed abatement, and an explanation of the financial assumptions used in the analysis.

D. Sales Tax Abatement The applicant will be exempt from both the local and State portion of sales tax on construction materials, equipment, and furnishings associated with the project. Pursuant to GML Section 875, the IDA shall confer an amount of sales tax exemption allowable on a project-by-project basis. The IDA is required by State law to recapture sales tax exemptions claimed by project agents in excess of the actual amount conferred by the IDA. Project agents are required to comply with all sales tax reporting requirements pursuant to GML Section 875. The IDA may grant sales tax abatement on the value of improvements to a project in which the IDA already holds title. The project owner or occupant must submit a standard application to the IDA, providing information on the nature of the improvements, economic impact, and the need for IDA incentives. E. Miscellaneous Taxes and Fees The applicant is responsible for paying all Special Assessments, Revenue Stamps, Recording and Filing Fees, Transfer Taxes, Estate Taxes, and that portion of the Mortgage Tax ($5 per $1,000) that is allocated to the local municipality. The applicant does not have to pay the portion of the Mortgage Recording Tax ($2.50 per $1,000) that is allocated to the State. F. Local Purchasing and Hiring Practices The IDA requests all recipients of IDA incentives to make every effort to purchase goods and services from Tompkins County businesses and to hire Tompkins County residents. The IDA is especially supportive of projects that make a specific commitment to hire women and minorities during the construction phase or as permanent full-time workers of the project’s operating businesses. The IDA may require detailed information concerning the applicant's past and projected purchasing and employment practices. G. PILOT Mortgages    The Agency shall require the establishment of a PILOT Mortgage as a condition within the closing documents in order to secure the position of the PILOT payments versus other secured and unsecured claims. The purpose of a PILOT Mortgage is to secure unpaid PILOT payments within a lien against the project real estate. The lender agrees that the PILOT Mortgage will have priority over any contemporaneous mortgage given to secure the rights of bondholders or to secure any conventional financing. This would make the PILOT a secured obligation. The Agency may negotiate alternate forms of security to insure payments under the PILOT. No mortgage recording tax associated with the PILOT Mortgage will be paid. PROCEDURES A. Application Tompkins County Area Development, Inc. (TCAD), provides administrative and marketing services to the IDA. Potential applicants should work with TCAD to determine whether the proposed project is eligible. If the project appears to be eligible, the applicant will be invited to submit an application for assistance. The application will be presented to the IDA board for its review. Based on the nature of the project and the incentives requested, the following will occur:

TCIDA Mission, Policies and Procedures p. 4

1. If the project meets the goals of the IDA and the applicant is requesting the standard incentives and the project’s value is less than $100,000, the IDA can approve the project at the initial meeting. If the project’s value exceeds $100,000, the IDA will instead adopt a resolution describing its intent to provide assistance and the nature of that assistance.

2. If the applicant is requesting more than the standard incentives, all local taxing authorities that would be impacted

will be notified and given an opportunity to comment on the project before IDA approval. 3. If the project is commercial or retail in nature, the IDA can approve the project only if the above-stated criteria have

been met and contingent on support by the appropriate local government. 4. If the applicant is requesting tax exempt bonding assistance, a Public Hearing and approval by the Tompkins County

Legislature may be required. In some cases, preliminary approval can be granted contingent upon successful completion of these requirements. All municipal and taxing authorities impacted by the project will be notified of the public hearing within fifteen days. If after holding a public hearing, the project changes by 5% then a new public hearing must be held.

5. For non tax exempt bond projects valued over $100,000, a Public Hearing will be held in the city, town or village

where the project is located, with ten days public notice and ten days notice to the CEO of each affected municipality and school district.

Public Hearing notice for bond projects is fifteen days. Public Hearing notice for non-bond projects is ten days.

B. Notification and Reporting

1. The appropriate municipal authorities will be notified and invited to comment if a proposed IDA action will result in the relocation of a business from that municipality.

2. All appropriate taxing authorities will receive a copy of the PILOT Agreement not more than fifteen days after the

project closes, and have certain rights related to payment in lieu of taxes. Late payments will be imposed a 5% penalty for the first month, plus one percent thereafter, and tax-affected jurisdictions may take direct action against project occupants if payments are delinquent.

3. Applicants will notify the State Job Service and any appropriate employment and training agencies, such as

PIC/JTPA, regarding job openings that result from the project. Except as otherwise provided by collective bargaining agreements, applicants will agree to give first consideration to appropriate referrals from these agencies.

4. Businesses will be required to submit an employment report on an annual basis to include information on general

job categories, salary, and women and minority employees, as well as a report on outstanding debt associated with the project.

5. When the IDA approves issuing incentives to a developer who has presented certain tenant companies as

beneficiaries of these incentives, the IDA should be notified about any tenant company changes. The IDA has the right to determine if a new tenant company falls within the IDA’s project guidelines, and may re-evaluate its original project approval based on this determination.

6. Under certain circumstances, a Governor's order concerning affirmative action will be in effect.

Tompkins County Industrial Development Agency Economic Incentive Recapture Policy

Introduction Recapture policies are a response to a concern that public sector economic development incentives are not achieving desired results. There have been several national, high profile examples of large public sector investments in private sector developments that, by any measure, have not yielded the new jobs or taxes projected. Tompkins County has been fortunate in that the return on public sector investment in private sector development has generally met or exceeded expectations. As the County moves forward with a more aggressive economic development strategy, perhaps including an external marketing campaign, it is appropriate to adopt a policy that maximizes the return on public investment in economic development. Application for Economic Development Assistance It is assumed that existing applications for assistance require historical and projected financial information as well as detailed information concerning the incentive requested. These applications will be modified to include the following: 1. A list of all public subsidies received by the applicant or the applicant’s parent company during

the preceding ten (10) years to include the following: a. the type of subsidy received such as property tax abatement, industrial revenue bonds, direct

loans or loan guarantees, grants, technical assistance or employee training; b. the amount and term of the subsidy; c. the public benefit that was projected such as job retention or increased property tax revenues; d. the public benefit received; e. name and contact information for organization granting subsidy.

2. A description of the construction jobs resulting from the proposed project, including the following:

a. the estimated total number of jobs that will be held by Tompkins County residents; b. the estimated wages and value of fringe benefits to be provided.

3. A description of the permanent jobs resulting from the proposed project, including the following: a. existing employment by category with wages and benefits; b. projected new employment by year for three (3) years by category with wages and benefits.

4. A description of the jobs that will be lost, if any, as a result of the proposed project, including wage

and benefit information. This particularly related to productivity improvements. 5. A description of non-employment-related economic benefits, including the following:

a. property taxes and special assessments by jurisdiction for three (3) years; b. sales tax on construction materials, furnishing and fixtures for the initial project; c. mortgage recording tax; d. purchases from local suppliers or subcontractors on an annual basis for three (3) years.

Tompkins County Industrial Development Agency Economic Incentive Recapture Policy, p. 2 6. A summary of the company’s products and markets particularly as they relate to possible

competition with other Tompkins County companies. Reporting Requirements 1. On an annual basis for the duration of the term of the assistance provided, the company will provide

the following information: a. average annual employment by category with wage, benefits and residence of employee; b. property taxes and special assessments paid; c. local and New York State sales tax paid; d. any other information relevant to the project that the IDA deems appropriate.

Recapture Provisions 1. In accordance with Section 875(3) of the New York General Municipal Law, if a Company receives

New York State and local sales and use tax exemption benefits ("sales and use tax exemption benefits") from the IDA, and it is determined that: (i) the Company is not entitled to the sales and use tax exemption benefits; (ii) the sales and use tax exemption benefits are in excess of the amounts authorized by the IDA to be taken by the Company; (iii) the sales and use tax exemption benefits are for property or services not authorized by the IDA as part of the Project; or (iv) the sales and use tax exemption benefits are taken in cases where the Company fails to comply with a material term or condition to use property or services in the manner approved by the IDA in connection with the Project, then the Company will (i) cooperate with the IDA in its efforts to recover or recapture any sales and use tax exemption benefits, and (ii) promptly pay over any such amounts to the IDA. In the event that the Company fails to pay over such amounts to the IDA, the New York State Tax Commissioner may assess and determine New York State and local sales and use taxes due from the Company, together with any relevant penalties and interest due on such amounts.

2. If the company shifts production activity to a facility outside of Tompkins County and, as a result,

fails to achieve the economic benefits projected, then the IDA will declare the agreement to be in default and require the value of the incentives utilized to date to be repaid, with interest (determined as the New York State legal interest rate).

3. If it is determined that the economic benefits projected have not been achieved for reasons other than

described above, then the IDA will afford the company a hearing where the company can be heard as to the issue. The following criteria will be used to determine if a valid explanation exists for failure to achieve the economic benefits projected by the company. a. Natural Disaster: if a natural disaster such as a fire, flood, or tornado disrupts the business b. Industry Trends: An evaluation of industry trends will be made relevant to the company, and a

determination reached as to whether the company is in a market that is declining. International and national data will be used in the evaluation. An industry is considered in decline when, measured by the appropriate SIC code, it experiences employment or revenue declines--beyond its control--of 10% or more over 3 years.

c. Loss of Major Supplier or Customer: if the loss of a customer or supplier represents 15% or more of the sales of the company

d. Productivity Improvements: if new technology, equipment or general productivity improvements result in the need for less than projected employees or investment

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Tompkins County Industrial Development Agency Economic Incentive Recapture Policy, p. 3

e. Unfair Competition: if an international competitor utilizes an unfair competitive advantage to acquire market share

4. If the IDA, based on criteria outlined in points 2 and 3 above, then determines that the company’s

reasons for failing to meet the economic benefit projections are invalid, the IDA can declare the agreement to be in default by written notice to the Company and require the value of in the incentive utilized to date to be repaid, with interest. Interest shall be due from the date when the Company failed to achieve the economic benefits projected by the Company to the date of payment, at the rate of interest for judgments set forth in New York Civil Practice Law and Rules §5004 and any future amendments thereof. The taxing jurisdictions will receive the recaptured property tax, plus the estimated interest income the taxing jurisdictions would have earned if they had collected the taxes when due, as calculated and determined by the Finance Director of Tompkins County. The remainder of the interest shall constitute an Administrative Fee of the Agency and shall be retained by the Agency and used for future economic development activities.

5. The IDA granting the economic incentive retains all rights to impose, delay or waive penalties. 6. The policy is effective as of the date of project approval and applies to all current and future

projects. 9/2013

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Tompkins County IDA DRAFT Meeting Minutes

June 20, 2013 Old Jail Conference Room

125 E. Court Street, Ithaca, NY

Present: Martha Robertson, Larry Baum, Svante Myrick, Jim Dennis, Grace Chiang, Excused: Will Burbank, Nathan Shinagawa Staff Present: Michael Stamm, Heather Filiberto, Ina Arthur (recording), Mariette Geldenhuys CALL TO ORDER The meeting was called to order at 3:35 PM ADDITIONS TO THE AGENDA - None PRIVILEGE OF THE FLOOR - None BUSINESS William George Agency/George Junior School District – Lease Amendment Resolution Ms. Geldenhuys gave background on the need for the resolution. In 2000, the TCIDA helped the George Junior School (now the William George Agency) gain access to tax exempt bonds. The WGA is now working with DASNY to receive funding to renovate the buildings that were constructed using the bond financing. Modifications to the closing documents from the 2000 transaction are what this resolution will allow. A verification of the easement termination and amendments to the assignment of lease and lease between the William George Agency and the George Junior School District are needed from the TCIDA. The IDA is involved nominally since the agency helped in the original financing. Larry Baum moved to approve the resolution. Jim Dennis seconded the motion. The motion passed unanimously. Mr. Baum asked by the WGA is going to DASNY for financing instead of the TCIDA? Mr. Stamm stated that DASNY can offer the school credit enhancement which the IDA cannot. Longview – NYSEG Easement Resolution Ms. Geldenhuys explained that an easement for NYSEG to work on the Longview property is required. Jim Dennis moved to approve the resolution. Larry Baum seconded the motion. The motion passed unanimously. NYS IDA Legislation – Review of Changes Ms. Filiberto reported on the changes to the NYS IDA Legislation of March 28, 2013. The state has restored the IDA restrictions on retail projects that had expired in 2008. This means a project where 1/3

2

of the costs are for a retail establishment. There are exceptions: If the projects is: a tourism facility, the goods/services are deemed necessary to an underserved area, or the project is in a highly distressed area then these new/restored provisions do not apply. There are also new reporting procedures for sales tax exemptions to projects approved after March 28, 2013. The prior sales tax “estimate” on applications will now be considered a cap to the amount of sales tax exemption available to a project. The estimate can be amended if needed after the fact. Also, annual reporting and posting of state forms on the IDA website are required. 2012 IDA Employment and Activity Report Mr. Stamm reported on the 2012 IDA employment and activity report. This is a snap shot of the active projects under PILOTs. The State only reviews active projects and the jobs they are producing. Past projects whose PILOTs have expired are no longer considered even though the jobs still exist and new jobs from the projects grow. Mr. Stamm stated that TCAD is creating a larger report that looks at the big picture. The job creation performance for current projects is 73% this is due mainly to Ithaco/Goodrich relocating. Ms. Robertson asked if future reports could have a column for benefits offered. STAFF REPORT Mr. Stamm reported that staff is working with Hart Hotels on an application that should come to the IDA soon. The hotel will be closed for six months during construction and then be at half revenue for an additional year. Harold Square is moving along. The required height variance has passed common council and now the City’s planning department is reviewing its site plan. The first floor of the building will be retail, floors 2-4 will be offices and the remaining five floors will be apartments. Mr. Stamm reported that the Emerson project developer has a purchase offer from the company. Ms. Filiberto reported that the new state program “Tax Free NY” has been renamed “Start Up NY.” Existing businesses cannot access this program. A new business that is aligned with a SUNY or other College in NY State must locate within a one-mile radius of campus. A ten-year tax exemption to the business and income tax exemption for employees will be offered. Ms. Robertson asked if this would be a PILOT? No, a tax exemption. Mr. Myrick stated if a start up locates in the area for 10 years, that would be long enough to put down roots and to probably keep the company here. Ms. Robertson stated that we should make the most of the program – the public should be educated.

3

Ms. Robertson asked about the hot-spot $100,000 incubator program offered by the Regional Councils. Ms. Filiberto stated that the Southern Tier Region is trying to figure which of the three schools should apply – Cornell, Binghamton U. or Corning CC. Ms. Filiberto reported that the Black Oak Wind Farm has released its draft SEQR which is available on its website. A public hearing has been set for July 10th and comments will be taken until July 22nd. The subcommittee will reconvene in August. All the taxing authorities have or will have opted out of the State law allowing tax exemptions to the wind turbines. So the company will be coming to the TCIDA for insentives. APPROVAL OF MEETING MINUTES Jim Dennis moved to approved the draft minutes from the March 20, 2013 and April 2, 2013 Board Meetings. Svante Myrick seconded the motion. The motion passed unanimously. ADJOURNMENT The meeting adjourned 4:50 PM