nycida board of directors meeting february 14, 2012

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 TrusteesApproval of Trustee Fees

Joseph Gill

5NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY

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.


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

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

Accurate Specialty Metal Fabricators, Inc.

Tabby Gillim


64-20 Admiral Avenue, Queens, NYBlock 3608, Lot 61


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


Current Location: 1333 Flushing Ave, Brooklyn

• 28,000 SF• Inefficient layout, odd configuration of buildings• Foreman cannot oversee all employees at once• Narrow doorways make moving materials and products difficult


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


Employment Summary Employment (on-site)

To be re-located from 1330 Flushing: 44 jobs

New Jobs within Three Years: 1 job

Total 45 jobs

Estimated Average Hourly Wages: $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)


Actions Requested

Approval of and Inducement and Authorizing Resolution for an IIP transaction for Accurate Specialty Metal Fabricators

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-of-the-art 500,000 square foot facility in the Bronx

o Will retain nearly 2,000 existing jobso Create almost 1,000 new jobso Create approximately 684 construction jobso A significant investment by a growing industrial

business in a community in need of jobs

$16,235


Fresh Direct: Proposed Bronx Location


Fresh Direct: Proximity to South Bronx Greenway

Fresh Direct Site


Summary of Assistance

IDA:

o $74.0 million Industrial Incentive Programo Up to $10.5 million asset acquisition

EDC:

o $1.0 million Industrial Development Loan Programo $4.9 million Business Incentive Rate (“BIR”) energy discounts

The Project is estimated to generate $255 million in City tax revenues.


New Facility Rendering

Manhattan Beer Distributors, LLC

Heidi Springer


Site Map: Proposed Assemblage at East 149th St., Bronx


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


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


Project Summary (con’t.) Employment (on-site)

To be re-located from 400 Walnut: 528 jobs

To be re-located from Brooklyn: 67 jobs

To be grown 25 jobs

Total 620 jobs

Estimated Average Hourly Wages: $17.97 Employee Benefits

– 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


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.

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


Project Summary Incubator to be located along 125th Street or its

immediate vicinity

Key consultant responsibilities– 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


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

Proposal for Purchase Contract for Industrial Business Support Services

Miquela Craytor


10

50,000100,000150,000200,000250,000300,000350,000400,000450,000500,000

173,052

117,483

124,306

80,603

Employment in the industrial sector continues to makes up 16.4% of private sector employment in NYC

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

Source: 1990-2009, NYS Dept. of Labor, QCEW Source: NYS Dept. of Labor, QCEW , 2009

TOTAL 495,444

However, industrial remains a significant part of NYC’s economy

NYC Industrial employment (jobs)

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

10

11

12

13

14

The size of industrial businesses also decreased

Average # of employees

0

20

40

60

80

100

120

NYCUS

Industrial Employment in US and NYC has been on a decline

Historical industrial employment

Source: 1990-2009, NYS Dept. of Labor, QCEW , 1990 = 100

Note: Industrial sector is primarily comprised of the subsectors of Manufacturing, Transportation and Warehousing, Construction and Wholesale

Manufacturing

Transportation & Warehousing

Wholesale Trade

Construction

(16%)

(24%)

(35%)

-22.8%

10.6

13.7

66

86 (25%)

-34%

-14%


The City looks to build upon its ongoing investment and support of industrial businesses

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/NYCEDCPLUTO, May 2009 (09v1), NYC DCP, NYC DDC, NYC DOT

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

Brooklyn Army Terminal


Industrial Business Support Services

The Program will help small industrial businesses through the support services provided by local economic development corporations (the “LDCs”)

Program description and objective

Assistance provided

New York City Business Assistance Corporation (“NYBAC”)Subcontractor

Budget

• 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 assistance-relationships.

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

nycida board of directors meeting february 14, 2012

Documents

new issues

products difficult slide

tabby gillim slide

bulent celik slide

michael toth slide

jobs new jobs

meeting seth pinsky

bond trustee fees