NYCIDA Board of Directors Meeting February 14, 2012.
-
Upload
mildred-lang -
Category
Documents
-
view
215 -
download
0
Transcript of 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.
6NEW 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
Officer Appointment
Seth Pinsky
Appointments of Committee Members
Heidi Springer
9NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Appointments of Committee Members
Audit Committee – Eugene Lee
Finance Committee – Marya Cotten
Governance Committee – Matthew Mirones
Accurate Specialty Metal Fabricators, Inc.
Tabby Gillim
11NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
64-20 Admiral Avenue, Queens, NYBlock 3608, Lot 61
12NEW 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
13NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
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
14NEW 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
15NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
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)
16NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
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
18NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
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
19NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Fresh Direct: Proposed Bronx Location
20NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Fresh Direct: Proximity to South Bronx Greenway
Fresh Direct Site
21NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
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.
22NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
New Facility Rendering
Manhattan Beer Distributors, LLC
Heidi Springer
24NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
Site Map: Proposed Assemblage at East 149th St., Bronx
25NEW 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
26NEW 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
27NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
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
28NEW 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.
Proposal for Purchase Contract for Accounting Policies and Procedures Manual
Spencer Hobson
Bulent Celik
Proposal for Purchase Contract for Harlem Incubator
Alejandro Baquero
31NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
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
32NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
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
33NEW 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
Proposal for Purchase Contract for Industrial Business Support Services
Miquela Craytor
35NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
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%
36NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
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
37NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY
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