Sample EB5 Business Plan [Unlocked by Www.freemypdf.com]

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S u l l iv a n Co u n t y , N e w Y o r k

Busine ss P lanJUNE 1, 2012

Prepared for: Empire Region Development Empire, New York

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........................................................................................................................................ 1 1.0 Executive Summary ............................................................................................... 11 .1 P ro jec t Ove rv ie w ..................................................................................................................... 1 1 .2 J ob Cre atio n Ove rv ie w and NAICS Co de s ......................................................................... 2 1.2.1 Jo b Creatio n Ov erv iew ................................................................ .......................................2 1.2.2 NAICS Co d es ................................ ...................................................................................... 2 1 .3 Ma rke t P o te ntia l ..................................................................................................................... 4 1 .3 .1 Dema n d Det ermin an t s ................................................................ ....................................51 .3 .1 .1 S ta te To u rism ...................................................................................................................................... 5 1 .3 .1 .2 Re gion a l To u rism .............................................................................................................................. 5

1 .3 .2 Out look ................................ .............................................................................................. 6 1.4 Financial Summary ............................................................................................................... 8 1.4 .1 In vest ment S umma ry ................................................................ ......................................8 1 .4 .2 Fun din g Obj ec t ives ................................................................ ..........................................8 1 .4 .3 Gen era l Assumpt ion s ................................................................ ......................................8 1 .4 .4 Proj ec t Budget ..................................................................................................................9 1 .4 .5 Proj ec t Timelin e ............................................................................................................ 10 1 .4 .6 Va lua t ion ................................ ........................................................................................ 10 1 .4 .7 In vest or Opportun it y ................................................................ ................................... 10 1 .4 .8 Reven ue S t rea ms ........................................................................................................... 12 1 .4 .9 Reven ue Growt h by St rea ms ...................................................................................... 12 1 .4 .1 0 Proj ect ed An nua l Reven ue ....................................................................................... 13 1 .4 .1 1 Fin anc ia l High ligh t s ................................................................ ................................... 13 1 .4 .1 2 Operat in g Profit Compa red t o Ca sh Reserves ..................................................... 14 1 .4 .1 3 Gross Reven ue Compa red t o Ca sh Ba lan c es ........................................................ 14 1 .4 .1 4 Reven ue Compa red to Operat in g Profit ................................ ................................ 15 1 .4 .1 5 Reven ue Compa red to Gross Profit ................................................................ ........ 15 1 .4 .1 6 Reven ue Compa red to Own er Equit y ................................ .................................... 16 1 .5 Compliance with the M att er of Ho .................................................................................. 16 1 .6 Va lue Proposition ............................................................................................................... 17

2.0 Welcome to the Catskills ....................................................................................19 3.0 Coun ty Indus try P illars and Drivers of Ch ange ..................................................22 4.0 New York Tourism ...............................................................................................27 5.0 Empire Town Center ...........................................................................................315 .1 The Location a nd De scription of Area .......................................................................... 31 5.1 The Project ........................................................................................................................... 33

6.0 Targeted Em p loym ent Area ................................................................................37 7.0 New York State .....................................................................................................38

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8.0 Sullivan County ....................................................................................................428 . Sullivan County s Economic Outlook .................................................................. 45 8.2 Sullivan County Transportation Inf rastructure ........................................................ 46 8.3 Unemployment .................................................................................................................... 47

9.0 Town of Empire, Sullivan County, New York ..................................................48 10.0 Employment and Econ omic Impacts ..............................................................5210 .1 Assum ptions ....................................................................................................................... 52 1 0 .2 P ro jec te d Eco no mic Impac ts ............................................................................................ 53 10.2. 1 Pro jected Eco n o mic Imp acts fo r Entire Pro ject ......................................................... 53 10.2. 2 Co n stru ctio n Job s Ov erv iew Ph ases I and II ................................ .............................. 5310 .2 .2 .1 10 .2 .2 .2 10 .2 .2 .3 10 .2 .2 .4 To tal To tal To tal To tal Co nstru ctio n Jo bs Anticip ated fro m Pro ject ................................................................. 5 3 Jo bs Anticipate d fro m Retail R eve nu e a nd O perati ng Ex pe nse .............................. 5 4 Jo bs Anticipate d fro m Ho tel Re venu e an d Op erating Exp ens e ............................... 5 4 Jo bs Anticipate d fro m Apartme nt Re v enu e an d Op erating Exp ens e ...................... 5 4

11.0 E-Verify ...............................................................................................................55 12.0 Management Summ ary .....................................................................................561 2 .1 Orga niza tio na l Struc ture .................................................................................................. 56 1 2 .2 P rinc ipa ls .............................................................................................................................. 56

13.0 Target Market Analysis ....................................................................................5713.1 Sullivan County Target Market An alysis ................................................................... 57 13.2 Demographic Analysis .................................................................................................... 57 1 3 .2 .1 Empire Region Demogra ph ic Overvie w ................................ ............................... 58 1 3 .2 .2 S ulliva n Coun t y Demogra ph ic Overvie w ................................ ............................. 59 1 3 .2 .3 Town of Empire Demogra ph ic Overvie w ............................................................ 60

14.0 Market Analys is ...................................................................................................6114.1 Economic Developmen t .................................................................................................. 62 1 4 .1 .1 Employmen t Impac ts from Pa st or Pla nn ed Coun t y Proj ec t s .......................... 62 1 4 .2 Ta rge t Ma rket for Apa rtme nt Units ............................................................................. 63 14.3 Home Site Sales ................................................................................................................. 66 14.4 Tourism ............................................................................................................................... 67 236116 Residential Construction New Multif a mily Housing Construction (except Operative Builders) .................................................................................................................. 68 2 3 62 20 Comm e rcia l a nd Institutiona l Building Construction ...................................... 74 237210 Land Development in the United St ate s .............................................................. 80 531110 Lessors of Residential Buildings and Dwellings ............................................... 86 5 3 1 1 2 0 L e s so r s o f N o n r e s id e n t ia l B u i ld i n g s ( e x c e p t M in iw a r e h o u se s ) .................. 91 531210 Of f ic es of Real Estat e Agents and Brokers .......................................................... 96 721110 Hotels (except Casino Hote ls) and Mo tels ........................................................101

15.0 Financial Plan ................................................................................................. 1071 5 .1 B a la nce Sheet P ro jec tio n .................................................................................................107

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1 5 .2 F ive - Ye a r Annua l Inco me Sta te ment ............................................................................108 1 5 .3 F ive -Ye a r Annua l Ca sh F lo w .........................................................................................109

Con tac t: Con tac t E -ma il: Te le phone Numbe r : Fa x Nu mbe r: Nu mbe r of Fu ll -Tim e Employee s: EB-5 Financ ing Sou ght: Loca tion :

Da v e Anheu se r Da v e@ Empire Re g ion De ve lopmen t.c om 8 88 -88 8 -1 21 2 8 88 -88 8 -1 21 2

1 84 7 .30

$ 80 Million In te rse ction o f G len Wild Roa d & Em p ire Re gio n Drive Em p ire Re gio n , Ne w Yo rk (9 0 m in u te s n o rth west o f Ne w Yo rk City; im m edia te ly o ff Exit 1 0 9 o f High wa y 17 (fu tu re In te rsta te 86 )

Lan d:

1. 2. 3. 4.

Appro ximatel y 6 0 0 acres 4 64 bu ildable acr es 3 32 acres zo ne d high- de nsit y resi de ntial 1 32 acres zo ne d co mm ercial/hig h -d ensit y resid ential

Projec t Profile :

1. 1 20 ,0 00 squ are feet o f lifest yle r etail 2. 90 -ro o m limited service ho tel 3. 3 84 mu ltifamily a partme nt u nits with a mi x o f o ne, two and three bedro o ms 4. 1 78 single famil y lo ts 5. 1 ,0 95 to wnho u se lots 6. 1 ,0 00 ,00 0 gallo n wastewater treatm ent f acilit y 7. 1 ,0 00 ,00 0 gallo n water s ystem an d sto rag e Th e p rojec t ha s been p re -m a rketed to a spec ific m a rke t, wh ich ha s p ro duce d ove r 3 ,0 00 e xp re ssion s o f in te re st. 1. 2. 3. 4. 5. La nd assem blag e Glo bal rezo ning o f parc els Co mpletio n o f preliminar y site plan Co mpletio n o f certain site en gineeri ng Ado ptio n o f FEIS & acce ptan ce o f Findings Statem ent b y the To wn 6. Mark eting pro gra m h as i de ntifie d o ver 3 ,0 0 0 po tential bu yers to date

Ta rg e t Ma rke t :

Ke y Mile stone s Ach ie ve d :

Th is doc um ent is a bu sine ss p la n an d no t an o ffe rin g o f sec u ritie s. I t co nta in s co n fiden tia l and p ro p rie ta ry in fo rm ation fo r the Em p ire To wn Cen te r.

1.0 Executive SummaryA para di gm shi ft i n the way most fami li es li ve and work has sl owl y al tered the fac e of the Ameri c an way of l i fe over t he l ast hundre d years. Long- si nc e abandone d are the tra di ti onal li vi ng arrangements where famil i es l i ved together i n the same house hol d or eve n i n the same nei ghborhood or ci ty. Unde ni abl y, the ec onomic c hanges have fostered some of thi s but there are new sets of rul es bei ng e vol ve d for c ommuni ti es. After a dec ades - l ong hi atus where c ommuni ty was an oft- forgotten c onc ept, those of l i ke mi nd who want to l i ve and work i n t he s ame area are forgi ng new c ommuni ti es. T hi s is not al ways easy c onsi deri ng that many c ommuni ti es saw thei r popul ati on base erode d by an unprec e dente d l oss of jobs and a housi ng market that s uf fere d as wel l . Mi xed- use c ommuni ti es, however, may wel l becom e the l i vi ng standar d i n the fut ure. After years of l i vi ng i n i solation, where the basic ac ti vi ti es of dai l y li fe li vi ng, worki ng, shoppi ng a nd pl ayi ng are c onnec ted sol el y by ri bbons of hi ghway, many Ameri c ans now want nei ghborhoods that offer a ri c her v ari ety of experi enc es and si mpl i fy thei r c ompl ex l i festyl es. Comm uni ti es woul d be nei ghborhoods, w here a broad array of ac ti vi ti es and desti nati ons c reate the c ondi ti ons that attrac t peopl e, and where resi de nts and vi si tors al i ke feel c omfortabl e, wel come and safe. Very i mportantl y, they wo ul d pro vi de jobs as wel l . The Empire Town Center will be such a proj ect, exemplifying the rebirth of this hamlet tha t wa s econom ica lly deva sta ted a long with the rest of Sulliva n County.

1.1 Project OverviewLoc ated only 8 miles kilometers from New York City in the stat e s souther n ti er, Em pi re T own Ce nter si ts on 60 0 ac res of pri me real estate di rec tl y off of exi t 109 on State Route 17/Federal Interstate 86 i n Sul l i van Co unty , New York. T he projec t's master pl an i ncl udes l i festyl e retail , a li mi ted ser vi c e hotel , apartment uni ts, and bui l di ng l ots for both si ngl e - famil y homes and hi ghde nsi ty townho use l ots.

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T he master pl an i nc l udes the fol l owi ng c omponents that wi l l c reate a sel f c ontai ned c ommuni ty for tho se that wil l be c omi ng to Sul li van Co unty to parti c i pate i n i ts regrowth: 120,000 square feet of l i festyl e retail 90- room li mi ted ser vi c e hotel 384 apartment uni ts wi th a mi x o f one, two and three be drooms 178 si ngl e fami l y l ots 1,095 townho use l ots 1,000,000 gall on wastewater treatment fac il i ty 1,000,000 gall on water system and storage

1.2 Job Creation Overview and NAICS CodesJob c reati on i s the foremost c onsi derati on wi th the Em pi re T own Ce nter projec t. T he total number of jobs to be created i n a rural- desi gnated area i s shown below al ong wi th an over vi ew of t he a ppl i cabl e NAICS c odes.

1.2.1 Job Creation OverviewImpac t Type Dire c t Effec t In dire c t Effec t In duce d Effec t Tota l Effec t Employmen t 1 ,1 04 .7 2 12 .2 1 27 .4 1 ,4 44 .2 La bor Inc ome $ 21 ,5 62 ,11 2 $ 7 ,02 9 ,3 27 $ 4 ,74 9 ,7 19 $ 33 ,3 41 ,15 8 Va lu e Adde d $ 14 3 ,891 ,6 34 $ 17 ,3 16 ,16 7 $ 10 ,5 75 ,00 2 $ 17 1 ,782 ,8 03 Ou tpu t $ 21 2 ,221 ,6 61 $ 28 ,7 13 ,74 4 $ 16 ,6 20 ,34 1 $ 25 7 ,555 ,7 45

1.2.2 NAICS CodesT hi s projec t i nvol ves se ve n di ffere nt N AICS c odes bec ause i t i nvol ves both c onstruc ti on and the sal e or l easi ng of that whic h i s c onstruc ted. T he NAICS c odes are: 236116 Residen t ia l Cons truct ion , N ew Mu lt ifam ily Hou s ing Co nstruc t ion (excep t Op erat ive Bu ilders) T hi s Uni ted States i ndustry c ompri ses general contrac tor establi shments responsi bl e for the c onstruc ti on of new m ul ti famil y resi denti al housi ng uni ts (e.g., hi gh- ri se, garden, town ho use apartme nts, and c ondomi ni ums where eac h uni t i s not separated from i ts nei ghbors by a ground- to- roof wall ). Mul ti famil y 2

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desi gn- bui l d fi rms and m ul ti fami l y housi ng c onstruc ti on management fi rms ac ti ng as general c ontrac tors are i ncl ude d i n thi s i ndustry. 236220 Comm ercia l and Inst itu t iona l Bu ild ing Constru ct io n T hi s i ndustry c ompri ses establi shments pri maril y responsi bl e for the c onstruc ti on (i ncl udi ng new work, addi ti ons, al terati ons, mai ntenanc e, and repai rs) of c ommerc ial and i nsti tuti onal bui l di ngs and rel ated str uc tures, s uc h as stadi ums, grai n el evators, and i ndoor swi mmi ng fac ili ti es. T hi s i ndustry i ncl udes establ ishments res ponsi bl e f or the onsi te assembl y of modul ar or prefabri c ated c ommerc ial and i nsti tuti onal bui l di ngs. Inc l ude d i n thi s i ndustry are c ommerc ial and i nsti tuti onal bui l di ng general c ontrac tors, c ommerci al and i nsti tuti onal buil di ng operati ve b ui l ders, c ommerci al and i nsti tuti onal bui l di ng desi gn- bui l d fi rms, and c ommerci al and i nsti tuti onal buil di ng projec t c onstruc ti on management fi rms. Ac cordi ng to the Uni te d States Cens us l i st of c orrespondi ng i nde x entri es, 237210 Land Develo pm ents in th e Un ited S tates T hi s Uni ted States i ndustry c ompri ses establi shments pri maril y engaged i n servi c i ng land a nd s ub di vi di ng real property i nto l ots for subseq uent sal e to bui l ders. Ser vi c i ng of l and may i nc l ude e xc avati on work for the i nstal lation of roads and uti l i ty li nes. T he e xtent of work may vary from projec t to projec t. Land s ub di vi si on prec edes b ui l di ng ac ti vi ty and t he s ubseq uent b ui l di ng i s often resi de nti al , but may al so be commercial trac ts and i ndustri al parks. T hese establi shments may do all the work themsel ves or s ubc ontrac t the work to others. Establ ishments that perform onl y the l egal subdi vi si on of land are not i ncl ude d i n thi s i ndustry. 531110 Lessors of Res id ent ia l Bu ild ing s and Dw ellings T hi s i ndustry c ompri ses establi shments pri maril y engaged i n ac ti ng as l essors of bui l di ngs use d as resi denc es or dwel li ngs, suc h as si ngl e - famil y homes, apartment b ui l di ngs, and tow n homes. Inc l ude d i n thi s i ndustry are owner l essors and establ ishments renti ng real estate and t hen ac ti ng as l essors i n subl easi ng i t to others . T he establi shments i n thi s i ndustry may manage the pro perty t hemsel ves or have another establ ishment manage i t for t hem.

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531120 Lessors of Nonres id ent ia l Bu ild ings ( excep t M in iwarehou ses ) T hi s i ndustry c ompri ses establi shments pri maril y engaged i n ac t i ng as l essors of bui l di ngs (e xc ept mi ni warehouses and sel f - storage uni ts) t hat are not use d as resi denc es or dwel li ngs. Incl ude d i n thi s i ndustry are: (1) owner - l essors of nonresi de nti al bui l di ngs; (2) establ i shments renti ng real estate and t hen ac ti ng as l essors i n subl easi ng i t to others; and (3) establi shments pro vi di ng f ul l servi c e offi c e spac e, whether o n a l ease or servi c e c ontrac t basi s. T he establi shments i n thi s i ndustry may manage t he pro perty the msel ves or have another establi shment manage i t for them . 531210 Offices of Rea l Es tate Ag ents and Brokers T hi s i ndustry c ompri ses establi shments pri mari l y engaged i n ac ti ng as agents and/or brokers i n one or more of the fol l owi ng: (1) sel l i ng real estate for others; (2) b uyi ng real estate for others; and (3) re nti ng real estate for others. 721110 Hotels ( except Cas ino Hot els ) and Mo tels T hi s i ndustry c ompri ses establ ishments pri maril y engaged i n provi di ng short term l odgi ng i n faci li ti es known as hotels, motor hotel s, resort hotel s, and motel s. T he establi shments may offer food and be verage ser vi c es, rec reati onal servi c es, c onferenc e rooms and c onve nti on servi c es, l aundry servi c es, parki ng, and other ser vi c es.

1.3 Market PotentialT here are many fac tors that wi ll i nfl uenc e the suc c ess of thi s projec t . T rends i n the housi ng and to uri sm i ndustry are paramount wi th t he ongoi ng ef forts of Sul l i van Co unty to attrac t and grow busi ness a c ri tic al component. Potenti al growth i n Sul l i van County for t he i ndustry sec tors i n whic h thi s projec t will parti c i pate i s shown bel ow.Description Real estate establishments Retail Tourism Second Homes Construction of other new residential structures Construction of new nonresidential commercial structures 2012 $380,290,558 $279,185,295 $141,082 $129,046 $99,900,291 $62,946,455 2013 $570,435,837 $291,748,634 $144,750 $140,014 $111,888,325 $68,045,118 2014 $605,232,423 $304,877,322 $148,369 $151,636 $123,077,158 $73,216,547 2015 $642,756,833 $318,596,802 $152,523 $158,156 $135,384,874 $77,097,024

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1.3.1 Demand Determi nants1.3.1.1 State Tour ism T he New York State vi si tor ec onomy rebounde d i n 2010, rec overi ng 94% of the l osses experi enc ed duri ng t he rec ession. Room demand grew 8.5% i n 2010; and room rates grew 6.1%. Ai r passenger ac ti vi ty i nc reased 3.7% for JFK and L GA c ombi ne d. A c ombi nati on of hi gher fuel pri c es and a ddi ti onal dri ve vi si tors pushe d spendi ng at gasoli ne stati ons up 14%. Vi si tor spendi ng grew 8.7% i n 2010. T ouri sm empl oyment grew more modestl y at 2.1%, as busi nesses remai ned c auti ous i n hi ri ng an d i nc reased hours of c urrent em pl oyees i n some c ases. T hus, personal i nc ome generate d by vi si tors grew 4.4%. 1.3.1.2 Regiona l Tour ism New York Ci ty, Lo ng Isl and and H udson Val l ey together c ompri se nearl y 80% of New York S tate tra vel er spe nd, of w hi c h the H udson Val l ey is ei ght perc ent . T ouri sm i s an i ntegral part of every New York region s economy, generati ng from 6% to 17% of em pl oyment. T ouri sm is most i mportant to the Adi rondac ks and Catski ll s, generati ng17% and 15% of total em pl oyment, res pec ti vel y. T ouri sm i n the Catski l ls is a nearl y $1 bi lli on i ndustry, supporti ng 16,666 jobs. T ravel er spendi ng i n the Catski l ls regi on expande d by 5.4% i n 2010. T ravel ers spent $997 mi ll ion i n the Catski ll s regi on i n 2010ac ross a di verse range of sec tors. Spe ndi ng on l odgi ng and expe nses rel ated to sec ond homes c ompri sed 35% and26% of the total , respec ti vel y. In the Catski l ls region, 10.8% of all l abor i nc ome is generated by to uri sm. Sullivan County is the most dependent upon tourism with 15.7% of a ll labor incom e genera ted by visitors. T ouri sm i n the Catski ll s regi on generated $123 mi lli on i n state and l oc al taxes i n 2010. Sal es, property , and hotel be d taxes generate d over $61 mi lli on i n l oc al taxes. 5

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1.3.2 OutlookMu lt ifam ily Un it Cons truct ion In t he fi ve years to 2016 , the number of em pl oyees i s expec te d to i nc rease on average 8.3% per year to 39,396 as firms hi re to meet the i nc reased de mand for i ndustry ser vi c es. Wages are forecast to raise an average annual rate of about 10.2% to $2.3 bill ion, wi th a shortage i n sk i ll ed workers forci ng c ompani es to c ompete for i ndi vi dual s. In c ontrast to em pl oyment and wages, t he number of enter pri ses is forecast to rise onl y 6.4% to 2,777 due to c onsoli dati on ac ti vi ty. Larger fi rms are also forec ast to gai n market share as they c onti nue to e xpand and di versi fy operati ons i n an attem pt to l ower operati on ri sks. Com m ercial Bu ild ing Constru ct io n T he i ndustry wi l l begi n a sl ow rec overy i n 2012. Over t he fi ve years to 2016 reve nue i s projec ted to i nc rease at an annual average rate of 6.4% to $139.7 bi lli on. Industry growth wi l l be dri ven by c onti nue d i m proveme nts i n the Uni te d S tates ec onomy, wi th demand for c onstruc ti on projec ted to stea di l y rise as busi nesses begi n to expand o perati ons. T he i ndus try wi l l experi enc e i nc reased merger and ac qui si ti on ac ti vi ty i n the ne xt fi ve years, as more establi shed fi rms c ompete over market share as the c onstruc ti on markets rec over. Land Dev elopm en t T hi s growth i s forec ast to conti nue over t he fi ve years to 2016, wi th i ndustry reve nue anti c i pated to i nc rease at an average annual rate of 8.7% to total $26.6 bi lli on. Duri ng t hi s peri od, growth wi l l be supporte d by i mpro veme nts i n the general ec onomy. In addi ti on, t he i ndustry wi ll benefi t from i mproveme nts i n housi ng demand, l endi ng ac ti vi ty and real estate val ues. Howe ver, i ndustry reve nue wi l l fail to grow to i ts 2006 peak of $34.2 bil li on due to the severi ty of the real estate market and ec onomi c c oll apse of 2007 and 2008. Apartm ent Leas ing Over t he fi ve years to 2016, i ndustry re venue i s fo rec ast to i nc rease at an average annual rate of 2.9% to $135.5 bill ion i n 2016. Duri ng thi s peri od, the c ombi nati on of stil l- weak demand for homeownershi p and general ec onomic i mproveme nt wi l l li kel y dri ve re ve nue growth. Homeownershi p l e vel s are 6

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expec te d to remai n fl at o ver t he majori ty of the years to 2016, due to el evate d unem pl oyment and i nterest rates, c onti nue d ti ght l endi ng standar ds and c hanges i n c onsumer senti ment toward ho usi ng. Uni te d States demographi c c hanges, parti c ul arl y regardi ng po pul at i on trends and mari tal rates, wil l li kel y l i mi t demand for homeownershi p. Com m ercial Spac e L eas ing Fortunatel y for i ndustry o perators, t he market i s tur ni ng around due to gradual ec onomic recovery. As a resul t, i ndustry reve nue i s expec ted to ri se 5.1% i n 2011 and 4.8% per year to $184.0 bi lli on over the fi ve years to 2016. Si mil arl y, i ndustry profi tabil i ty (earni ngs before i nterest and ta xes) i s expec ted to ri se from 48.3% i n 2011 to 55.3% by 2016. Im pro veme nts i n t he ge neral ec onomy will l ead to i ndus try growth as new busi nesses enter the market and e xi sti ng fi rms expand o perati ons. Wi thi n t he c orporate sec tor, i ndustry growth wi l l be dri ven by a drop i n une m pl oyment and an i nc rease i n busi ness - to- busi ness ac ti vi ti es. For the retail market, l ower une m pl oyment and i mpro ve d c onsumer c onfi denc e wi ll dri ve de mand for retai l spac e as firms expand o perati ons to meet the dema nd. T hi s rebound wi l l not occ ur wi thout some hur dl es, t ho ugh; the i ndustry wi l l still fac e c onsoli dati on, pri vati zation and del e veragi ng. Real Estat e Sa les T he i ndustry i s expec te d to ret urn to growth i n 2011, as revenue i nc reases by 3.6%. T he ret urn to growth wi l l be dri ven by i mpro veme nts i n the real estate market. Industry growth i s expec te d to gradual l y i nc rease over the fi ve year s to 2016, as fall out from the s ub pri me c risis di ssi pates and real estate demand and pri c es ri se. In addi ti on to the housi ng sec tor, the c ommerci al segment will al so affec t i ndustry parti c i pants bec ause demand for c ommerci al real estate is forec ast to be weak i n the fi rst part of t he next fi ve years due to o verbui l di ng and ti ght c re di t markets. As a resul t, revenue i s expec ted to i nc rease at an average annual rate of 5.5% to $118.9 bi lli on i n the fi ve years to 2016.Annual i ndustry growth i s expec ted to c onti nue to ri se t hroug ho ut t he ne xt fi ve years, due to stea dy i m prove ments i n c onsumer senti ment, s pe ndi ng and unem pl oyment. Real estate pri c es are anti ci pated to rec over as the demand for proper ty i nc reases. Resi denti al and 7

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c ommerci al c onstruc ti on i s al so projec ted to resume i n t he l atter part of t he ne xt fi ve years, as the real estate sec tor tri es to meet i nc reased demand. Hotels and Mot els Over the ne xt fi ve years, i t i s forec ast that the i ndustry wi ll begi n to expand agai n, parti c ul arl y i nto segment s suc h as e xtende d- stay hotel s, bouti que hotel s, spa and heal th retreats and resorts. Industry pl ayers wi ll al so make i nroads i nto de vel opi ng regi ons abroad, suc h as Chi na, Indi a, Eastern Euro pe and So uth Ameri c a. Over the fi ve y ears to 2016 , revenue i s projec te d to i nc rease at an average annual rate of 2.6% to $144.3 bi lli on.

1.4 Financial SummaryD ue to i ts numero us b usi ness advantages, management bel i eves t hat: (i ) the Em pi re Town Center wi l l be profi tabl e; and (i i ) eac h Li mi ted Partner wi ll ac hi eve a reasonabl e return on i ts i nvestme nt. Wi th t he exc e pti on of the fi rst two years, whi c h are c onstruc tion years, t he Com pany a nti c i pates that i t wi ll be abl e to operate the projec t on a profi tabl e basi s and di stri bute di vi de nds and net c ash fl ow not l ess freque ntl y than annual l y.

1.4.1 Investment SummaryT he Com pany seeks to c onstruc t and de vel op a m ul ti phase projec t i n the T own of Empi re, S ul l i van Co unty , New York usi ng EB- 5 funds to de vel op the projec t, whi c h wi ll c reate di rec t, i ndi rec t and i nduc ed jo bs. A projec t ti mel i ne, sourc es and uses of f unds for the projec t, and pro forma fi nanc i al i nformation are i ncl ude d herei n.

1.4.2 Funding Objec tivesT he Com pany woul d l i ke to obtai n f undi ng i n the amount of $80,000,000 thro ugh the EB5 i nvestme nt progra m to enabl e i t to obtai n the eq ui pment and faci li ti es neede d to start o perati ons i n a desi gnate d r ural area.

1.4.3 General Assumptions1. Founder has i nveste d t he nec essary c api tal to bri ng T he Com pany to thi s poi nt. 8

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2. T he Com pany i s seeki ng an E B5 i nvestment . 3. Re ve nue Projec ti ons: In ac cordanc e wi th Re ve nue Assum pti ons and Re ve nue Metri c s 5. Di rec t Costs and Al l owanc es: In acc ordanc e wi th Reve nue Ass um pti ons and Re venue Metri c s 6. Expe nses Adverti si ng: $50,000 De prec i ati on: $50,000 Interest : % 7. Tax burden: 20%

1.4.4 Projec t BudgetExistin g Mo rtga ge Lo an Clo sin g Co st Lender Lo an Clo sin g Co st - Le ga l Mo rtga ge Ta x In te re st Re se rve S ub to ta l Ne t Projec t Pro cee ds De v e lopmen t Costs - Soft Costs En ginee rin g / Co n su ltan ts Arc h itec t De ve lope r Fee Pre -Clo se Bu dge t - Ma rke tin g Pre -Clo se Bu dge t - Misce llane ou s Tota l De ve lopment Costs - Soft Costs De v e lopmen t Costs - H a rd Costs Ho te l Ap a rtm en t Re ta il Wa te r We lls Se we r Ro a ds S to rm Wate r Man a gem en t Misce llaneo u s S ite Wo rk / Bla stin g Tota l De ve lopment Costs - H a rd Costs TO TAL PRO JECT CO ST 1 .0 0% $ 4 ,65 0 ,0 00 $ 80 0 ,000 $ 19 1 ,500 $ 32 1 ,000 $ 8 ,40 0 ,0 00 $ 14 ,3 62 ,50 0 $ 65 ,6 37 ,50 0 $ 1 ,50 0 ,0 00 $ 1 ,00 0 ,0 00 $ 2 ,10 0 ,0 00 $ 1 ,50 5 ,0 00 $ 64 5 ,000 $ 6 ,75 0 ,0 00 $ 7 ,65 0 ,0 00 $ 29 ,8 37 ,50 0 $ 10 ,5 00 ,00 0 $ 90 0 ,000 $ 2 ,70 0 ,0 00 $ 4 ,50 0 ,0 00 $ 80 0 ,000 $2,00 0 ,0 00 $ 58 ,8 87 ,50 0 $ 80 ,0 00 ,00 0

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1.4.5 Projec t TimelineMont h One Mont h Two Mont h Thr ee Mont h Four Mont h Fiv e Yea r One Yea r Two Yea r Thr ee Yea r Four Yea r Fiv e Yea r Six Yea r Seve n

A dm in istra t iv e P ha se L eg a l F rame wo rk Obt a in Pe rm it s C o n st ru ct io n Hot e l A p artme nt s R et a il S ite De ve lopm ent Op era t io n

1.4.6 ValuationBased upon the pro forma fi nanc i al projec tions, i t i s antic i pated t hat the Com pany wi l l generate si gni fic ant retur ns on i nvestme nt . CAP Rate Based ValuationsYEAR 2 2 2 3 3 3 4 4 4 5 5 5 EBITDA -$ 79 3,35 0 -$ 79 3,35 0 -$ 79 3,35 0 $ 7 ,4 07 ,82 2 $ 7 ,4 07 ,82 2 $ 7 ,4 07 ,82 2 $ 1 6,17 0 ,4 35 $ 1 6,17 0 ,4 35 $ 1 6,17 0 ,4 35 $ 1 8,28 4 ,6 88 $ 1 8,28 4 ,6 88 $ 1 8,28 4 ,6 88 CAP RATE 7 .50 % 8 .00 % 8 .50 % 7 .50 % 8 .00 % 8 .50 % 7 .50 % 8 .00 % 8 .50 % 7 .50 % 8 .00 % 8 .50 % VALUE 0 0 0 $ 9 8,77 0 ,9 60 .0 0 $ 9 2,59 7 ,7 75 .0 0 $ 8 7,15 0 ,8 47 .0 6 $ 2 15 ,6 05 ,80 0.00 $ 2 02 ,1 30 ,43 7.50 $ 1 90 ,2 40 ,41 1.76 $ 2 43 ,7 95 ,84 0.00 $ 2 28 ,5 58 ,60 0.00 $ 2 15 ,1 13 ,97 6.47

1.4.7 Investor OpportunityT he pote nti al rate of retur n on $500,000 i nvestme nt i s shown bel ow. 10

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Investor Opportunity Return-On-Investment IRR Calculation, DCF Equity Growth Estimation AVERAGE Investor Return ScheduleYear 1 Investment Offerings Total Investment Opportunity Investment Value Year 2 Year 3 Year 4 Year 5

60.73% 25.21% 42.97%

1 $500,000 $500,000

0 $0 $714,848

0 $0 $1,022,014

0 $0 $1,461,169

0 $0 $2,089,026

Investment Value

$2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 1 2 3 4 5

Investment Value

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1.4.8 Revenue StreamsYear 1 REVENUE STREAMS Apartment NOI Residential Lot Sales Commercial NOI Hotel NOI $$$$$$$$$$$ 1 ,37 5 ,06 4 $ 5 ,35 3 ,01 7 $ 58 6, 87 5 $ 90 6, 05 0 $ 8 ,22 1 ,00 6 $ 2 ,83 9 ,33 9 $ 11 ,8 60 ,9 72 $ 1 ,21 0 ,78 3 $ 1 ,09 2 ,85 4 $ 17 ,0 03 ,9 48 $ 2 ,93 1 ,39 3 $ 13 ,1 36 ,8 59 $ 1 ,61 6 ,38 8 $ 1 ,45 4 ,39 9 $ 19 ,1 39 ,0 39 Year 2 Year 3 Year 4 Year 5

DIRECT COSTS Vacancy Direct Costs $$$$$$$$$$$$$$$$$$$$$$$$$-

GROSS PROFIT

$-

$-

$ 8 ,22 1 ,00 6

$ 17 ,0 03 ,9 48

$ 19 ,1 39 ,0 39

1.4.9 Revenue Growth by StreamsRevenue Growth by Revenue Stream20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Apartment NOI Residential Lot Sales Total Annual Rev

Year 1 $-

Year 2 $-

Year 3 1,375,064 5,353,017 $8,221,006

Year 4 2,839,339 11,860,972 $17,003,948

Year 5 2,931,393 13,136,859 $19,139,039

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1.4.10 Projec ted Annual RevenueProjected Annual Revenue

$19,139,039 $17,003,948

$8,221,006

$Year 1

$Year 2 Year 3 Year 4 Year 5

1.4.11 Financ ial HighlightsFinancial Highlights20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 (2,000,000) Revenue Direct Costs Gross Margin Total Operating Expenses Operating Profit Year 1 774,000 (774,000) Year 2 793,350 (793,350) Year 3 8,221,006 8,221,006 813,183 7,407,822 Year 4 17,003,948 17,003,948 833,513 16,170,435 Year 5 19,139,039 19,139,039 854,351 18,284,688

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1.4.12 Operating Profit Compared to Cash ReservesOperating Profit and Cash Reserves

Operating Profit

Cash

1.4.13 Gross Revenue Compared to Cash Balanc esGross Revenue Compared to Cash Balances$70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $Year 1 Year 2Gross Revenue

Year 3Cash End of Year

Year 4

Year 5

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1.4.14 Revenue Compared to Operating ProfitRevenue Compared to Operating Profit$20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Year 1 ($5,000,000)Revenue Operating Expenses Operating Profit

100% 100%

100%

0.0%

0.0% Year 2 Year 3 Year 4 Year 5

1.4.15 Revenue Compared to Gross ProfitRevenue Compared to Gross Profit$20,000,000 $15,000,000 $10,000,000 $5,000,000 0.0% $Year 1 Year 2Revenue

100% 100%

100%

0.0% Year 3 Year 4 Year 5

Direct Costs

Gross Margin

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1.4.16 Revenue Compared to Owner EquityRevenue Compared to Owner Equity$200,000,000

$150,000,000

$100,000,000

$50,000,000

$Year 1 Year 2Gross Revenue

Year 3

Year 4

Year 5

Shareholder Equity

1.5 Compliance with the Matter of HoT he de vel opers of Em pi re T own Center Pl ac e anti ci pate the use of q ual i fi ed forei gn i nvestors to partici pate i n the fi nanc i ng of thi s projec t. T hi s i nvestment wi ll be i n the form of i nvestment thro ugh t he Uni te d States Ci ti zenshi p and Immi grati on Servi c e (USCIS) E B- 5 vi sa pi l ot program and wi l l be admi ni stered by the Mi dwest Ce nter for Forei gn Investment (MCF I) a Regi onal Center desi gnate d by the US CIS. MCFI wi l l admi ni ster and manage t he f unds of forei gn i nvestors seeki ng vi sas through the EB - 5 vi sa pi l ot program. 1. EB- 5 vi sa pi l ot program i nvestme nts req ui re that c ertai n c ondi ti ons are met i n order for the i nvestment to qual i fy for thi s program. T hese i ncl ude the fol l owi ng: 2. T he i nvestme nt m ust c reate ten (10) new jobs. T hese jobs must be sustai ned for two (2) years and t hey m ust i ni ti al l y be i denti fi ed and de fi ne d by a job c reati on study rec ogni zed by the US CIS (IMPL AN or RIMS II). 3. An i nvestme nt of $1,000,000 is requi red i n al l areas t hat have not been 16

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desi gnate d by the gover nor of a state as a Targeted Em pl oyment Area (T EA) or as a Rural Area as de fi ne d by US CIS g ui del i nes. 4. T he forei gn i nvestor seeki ng an EB - 5 vi sa must be treate d the same as a U.S, c i tizen i nvesti ng i n the same projec t. 5. The foreign investor s capital contribution to the project whether in the form of a loan or an equi ty i nvestment m ust be at risk, exac tl y the same as the ri sk assume d by al l other i nvestors i n t he projec t. 6. T he term of the i nvestme nt m ust be at l east two (2) years or l onger and there can be no guarantee of an exit strategy or a defined term of the i nvestme nt for the forei gn i nvestor. 7. In the f ut ure , other r ul es and reg ul ati ons may be prom ul gated by the USCIS a nd wi l l al so appl y. The developers of Empire Town Center have agreed to comply with these rules and regulations and will provide MCFI and/or the USCIS with all information available to them concerning jobs created (direct, indirect and imputed), TEA or RA status of the project and the financial status of the investment on a quarterly basis in order to meet these requirements and comply with all USCIS rules and regulations.

1.6 Value Proposit ionT he Com pany i s taki ng adva ntage of an o pe n - for- busi ness strategy that i s bei ng aggressi vel y pursue d by S ul l i van Co unty and of some trends t hat wi l l enabl e i t to establi sh a ni c he foothol d i n t hi s market. s importantly, the Compan y s managerial staff has decades - l ong experi enc e i n eac h of the Com pany segments t hey wi ll oversee. It i s thi s experi enc e that w i ll enabl e the e nter pri se to fl ouri sh. T he key val ue- adde d c ompo nents to thi s projec t are: Job Creatio n: T he projec t wi ll c reate i n exc ess of 1,800 jobs i n Sul l i van Co unty . Workforce Hous ing : T he projec t wi ll create affordabl e rental housi ng

that meets the i nc ome requi rements of l ocal workers and i s al igned wi th the Count y s efforts to c reate suc h housi ng. Furt her, thi s housi ng i s

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fi ll i ng a voi d i n Sul l i van Co unty for new re ntal housi ng that has exi sted for al most fi ve years. L ifesty le C en ter: T he de vel opment of the Em pi re Regi on as a l i festyl e c enter wi ll encourage those who l i ve there to be a part of t he c ommuni ty and to s pend t hei r money t here. Hotel: Co nstr uc ti on of the hotel wi ll pro vi de not o nl y perma nent jobs but wi ll c ontri bute overal l to Sul l i van Count y s tourism initiatives.

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2.0 Welcome to the Catskills

At onc e buc olic and a touri st mecc a for casi no afic ionados , S ul li van Co unty has been known nati onall y and i nternati onal l y si nc e the 1600s for i ts beauty and the hardi ness of resi dents . Famous as merica s wilderness, it is little wonder t hat a regi on so vi vi d wi th nat ural beauty, so enti c i ng to the senses, so abunda nt i n the f ul l ness of eac h passi ng season, shoul d weather c hangi ng tastes and fanc i es to ri se, i n one renai ssanc e after anoth er, to bec ome the desti nati on of c hoi c e.

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When t he c enter of t he c ounty got rai l servi c e wi th the c ompl eti on of the Empi re & Port Jervi s Rail road i n 1871, and t he New York & Oswego Mi dl and Rai l road (l ater the Ontari o & Western) i n 1872, resorts began t o spri ng up there, as wel l . Soon t housands of vi si tors a year were spendi ng t hei r summers i n the c ool and heal th - restori ng mountai ns. F r o m 1 8 9 0 t o a b o ut 1 9 1 5 , t he c o u nt y e nj o y e d a n u n pa r a l l el e d pr o s pe r i t y a s a ppr o xi m a t e l y 2 00 ho t e l s s uc h a s t he W a w o n da a n d Ye L a nc a s hi r e Inn i n L i b e r t y , t he W hi t e S ul ph ur S pr i ng s H o us e , t he Co l um b i a F a r m s a nd rophy s Mountain House in Hurle yvil le, and t he M a ns i o n H o us e a nd t he K e nm o r e i n W hi t e L a k e , t hr i ve d . T hese hotel s were l argel y wood frame b ui l di ngs of Vi c torian arc hi tec ture, and were al l Genti l e owned. Whi l e at fi rst they offere d t hei r guests si mpl y fresh ai r, cl ean water, farm fresh vegetabl es and mi l k, and pl enty of shade , by 1895 l awn tenni s had bec ome an attrac tion, and by 1897 gol f was offered . The count y s fi rst gol f c ourse was opene d that year at the T rout Vall ey Farm on the Bea verki ll , and several more, i ncl udi ng t hree offi c ial ni ne- hol e c ourses, foll owed by 1901. T ravel ers to the Catskill s have shape d t he hi story of the regi on, even as the streams and ri vers, mountai ns and forests have sha pe d the majesti c l andsc ape . From enl i ghtened and ski l l ful Nati ve Ameri c ans, to pi oneeri ng earl y i mmi grants, dreamy and aesthe ti c Vic torian el i te, phi l osophers and c ounter c ul tural i sts, artists and robber barons, educ ato rs and advent urers and entre prene urs, ra di c al thi nkers, extreme athl etes, and soul f ul sojourners, all have taken i n the fragrant mo untai n ai r and pure l ake waters. 20

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T he Hudson Ri ver Sc hool of Pai nti ng put t he breathtaki ng sc enery of the Catski ll region o n c anvas. Jo hn B urro ughs, pi oneeri ng natural i st and c onservati oni st, preserve d the sanc ti ty of thi s wil d regi on for generati ons. T he Roc kefel l ers, the Gherrys and t he Gho ul ds bui l t resorts for the pri vi l eged and matc hed t he untame d e xtravaganc e of nat ure wi th or derl y arc hi tec tural beauty. T he Catski ll s provi de t he perfec t envi ronment i n w hi c h to redi scover hi story i n the stone ho uses of Hurl ey, go fl y- fishi ng at Bea verki ll Stream, or vi si t the snowy summi t of the di amond sl ope at Bel l eayre Mountai n. Even now, the pro xi mi ty to New York Ci ty and easy acc essi bi li ty from other major Eastern c i ti es makes the Catskil ls an i deal refuge for tra vel ers that are l oc al , nati onal and i nter nati onal ali ke.

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3.0 County Industry Pillars and Drivers of ChangeD uri ng the c urre nt rec ession, the County has seen many busi ness cl osures i n two of i ts major ec onomic sec tors. Vi l lages and haml ets thro ugho ut the Co unty and Mai n Street areas have e xperi enc ed a sharp i nc rease i n vac anci es and busi ness cl osures foll owi ng a s li ght resurgenc e i n these areas i n the pre vi ous decade. Two of Sullivan Count y s major employment sectors, agriculture and touri sm, have bee n dec li ni ng for dec ades. Moreover, ac ross vi rtual l y all sec tors, wages are insufficient to meet families needs. T hi s presents many c hall enges and S ul l i van Co unty i s pre pari ng l ong - term strategi es to meet them . Empire Region Development believes tha t this proj ect will be a n integra l pa rt of the eff ort to revita lize this community by rebuilding a susta inable economy a nd repla cing the ba dly -deteriora ted inventory of renta l units with ones tha t ca n m eet the dema nd f or housing in this County. Com prehe nsi ve ec onomi c de vel opme nt pl anni ng i s i nc reasi ngl y i mportant as c ounti es attempt to s ustai n themsel ves i n the fac e of t he c urrent ec onomic dow nt urn. Sul l i van County shares muc h i n c ommon wi th others througho ut the regi on i n terms of i ts agric ul ture and touri sm - based ec onomy, i ts proxi mi ty to major c enters of popul ati on and c ommerc e, abundant nat ural resourc es, a rel ati ve l ac k of i nfrastruc ture, and i ts demographi c profi l es. Sul l i van County strategi es are refl ec ted i n two doc ume nts i n parti c ul ar the Sul l i van Co unty Ec onomi c Devel opment S trategy and Pl an as wel l as the Sul l i van 2020: Defi ni ng an Image and Managi ng Change roa dma p. T ogether wi th agric ul ture, t he Co unty vi ews touri sm as a c ri tical c omponent of the ec onomy and an opport uni ty to be c api talized upon. T o hel p i de nti fy and reach the Count y s potential as a tourist destination, the Ec onomic Devel opment Corporati o n has beg un a to uri sm and ec onomic de vel opme nt i ni ti ati ve. Cri ti cal to the suc c ess of thi s ec onomic de vel opme nt effort i s the c reati on of tec hnol ogy i nfrastruc ture that c an meet the nee ds of o ur resi de nts, b usi nesses and vi si tors.

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Some key c omponents of t he 2020 pl an are: Natural Resourc e Management Land Use Pl anni ng and Zoni ng Informati on T ec hnol ogy Infrastruc t ure T ransportati on Infrastruc t ure Comm uni ty De vel opme nt and Ho usi ng Ec onomic Devel opme nt Facil i ti es Devel opme nt. Without proj ects such a s this one, the County will not be a ble to implement its pla n a nd meet its obj ectives. Below a re some of the sta rtup or expa nsion proj ects in the County tha t a re contributing to j ob growth a nd stabiliza tion. Concord Resor t and Cas ino T hi s si te si ts di rec tl y o ff of Interstate 86 Exi t 106 and i s l ess than 4 mil es from Em pi re T own Center . T hi s projec t i s a joi nt ve nt ure of E m pi re Resorts , Inc ., whi c h is c ontrol l ed by the Genti ng Group of Mal aysia , and E ntertai nment Pro perty T rust, whi c h is a $2.9 bil li on real es tate i nvestme nt tr ust. Ge nti ng Gro up i s one of the l argest c ongl omerates i n Asi a wi th hol di ngs i n e xc ess of $40 bil li on. It i s al so one of the to p gami ng and c asi no operators i n Asi a (Resorts Worl d) and was the ori gi nal fi nanci al bac ker of Foxwoods Cas i no i n Co nnec ti c ut. T ogether, Em pi re Resorts and Entertai nment Pro perty T r ust ha ve al ready i nveste d i n exc ess of $300,000,000 i n Sul l i van Co unty , w here t he Em pi re T own Ce nter i s l oc ated. T he Conc ord projec t wi ll create i n exc ess of 2000 i mmedi ate c onstruc ti on jobs and o ver 1500 permanent jobs.

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Stewart In ternat io na l Airport T he Stewart Inter nati onal Ai rport i s l oc ated appro xi matel y 60 mi l es (100km) north of New York Ci ty and l ess than 45 mi nutes from the Em pi re T own Ce nter si te. T he NY/NJ Port Aut hori ty has engaged i n a 500 mil li on dol l ar pl an to overha ul the enti re ai rport. T he pl an i nc l udes major renovati ons, the addi ti on of a new termi nal , and f ur ther e xpandi ng t he c argo facil i ti es. FedEx mai ntai ns a large di stri buti on c enter near the ai rport an d the USDA has an i nspec ti on fac ili ty that proc esses the pro duc ts of i mporters . T he Port Authori ty i ntends on uti l izi ng the Stewart Internati onal Ai rport as a reli ef ai rport for the three mai n New York area ai rports (Newark, LaGuardi a, and JF K). T hey esti mate that they c an c urre ntl y handl e fi ve ti mes i ts present passenger vol ume. T he Port Aut hori ty pl ans to i nvest appro xi matel y $500 mil li on through 2016 to upgra de and e xpand t he ai rport. Assumi ng t hat the expa nsi on all ows the ai rport to acc om modate percent more cargo and meets the Port uthority s stated goal of 1.5 mil li on total passengers, the ai rport c oul d c onservati vel y support a pproxi matel y 2,850 addi ti onal jobs by 2016. Orange Reg iona l Med ica l C ent er Orange Regi onal Medi cal Center (ORM C) i s a 501(c )(3), non- profi t organizati on. Formed by the merger of Ar den Hi l l Hospi tal and Horton Medi c al Center, Orange Regi onal provi des 450 beds and empl oys over 2,400 heal thc are professi onals i ncl udi ng o ver 550 doc tors. In a ddi ti on to two mai n hospi tal c ampuses, Orange Regi onal pro vi des several out pati ent l oc ati ons.

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Cent er for D iscov ery Ac cordi ng to an i nde pe nde nt anal ysis, T he Center for Di scovery i s one of the l argest ec onomi c engi nes i n Sul l i van Co unty 's hi story, pro vi di ng more t han 1,400 jo bs and generati ng an ec onomic i mpac t of $134 mil li on annual l y. Statewi de, that stri ki ng fi gure j um ps another $50 mi lli on, meani ng t hat T he Center's total annual ec onomic i mpac t i n New York i s an i mpressi ve $184 mi lli on. Wi th a propose d $20 mill ion do l l ar projec t to bui l d a Hi gh- Risk Assessment Cl i nic i n Harris that wil l add some 200 new jobs i n Phase One and an a ddi ti onal 200 i n Phase T wo, T he Center wi l l bec ome an eve n l arger ec onomic engi ne i n the years ahead. T hey c urrentl y empl oy over 1,400 i ndi vi dual s and e xpec t to add another 1000 new jobs over the c ourse o f the next three years wi th mul ti pl e projec ts suc h as the Hi gh- Ri sk Assessment Cl i ni c . Crystal Run H ea lth care Crystal Run Heal thc are c onsists of 11 faci li ti es throug ho ut t he H udso n Val l ey on e of whi c h i s a 127,000- square feet me di c al c enter l oc ated l ess than 1 mil e away from Em pi re T own Center . Em pire Cas ino an d Raceway Em pi re Casi no and Rac eway adde d o ver $25 mi lli on to the S ul l i van Co unty ec onomy and generate d o ver $37 mill ion annual l y i n reve nues for the regi on and the state, acc ordi ng to a new ec onomic i mpac t anal ysi s c onduc ted by an i nde pendent fi rm. T hi s anal ysi s al so esti mates that 25

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580 loc al , ful l and part - ti me jobs are supporte d by t he c asi no. T he New York Gami ng Associ ati on (NYGA) a two- part report o utl i ni ng the posi ti ve ec onomic i mpac t gami ng has had o n t he l oc al ec onomy . Bethel Woods Bethel Woods Center for the Arts, a $100 mi lli on projec t that ope ne d i n J ul y 2006, is one of the l argest ec onomic de vel opment endeavors t he regi on has seen i n rec ent ti mes. In 2010, Bethel Woods drew more than 224,000 peopl e to i ts shows, exhi bi ts and e duc ati onal programs. It generate d 467 di rec t and i ndi rec t jobs from empl oyees who work on t he mani c ure d grounds and rol l i ng hi l ls of the arts c ente r. Tourism In addi ti on to Bet hel Woods and Em pi re Casi no and Rac eway, the Em pi re Motor Cl ub and Hol i day Mountai n Ski and F un Park have c ontri bute d to Sul l i van Co unt y s to urism industry . Em pi re Motor Cl ub, whi c h ope ne d i n 2008 , is North merica s premi er automoti ve resort and pri vate rac etrac k. It attrac ts users and vi si tors from the New York Ci ty and New Jersey areas. T o date , t he fac i li ty has de vel ope d 200 of t hei r 670 avail abl e ac res and pl ans to add more ame ni ti es i n the f ut ure. Hol i day Mountai n i s located l ess than a mi l e away from Empi re T own Center and offers year ro und attrac ti ons for the fami l y . Other to uri sm attrac ti ons i n Sul l i van Co unty i nc l ude a number of fame d gol f c ourses suc h as Grossi nger and t he Monster, and uns ur passed fl y- fi shi ng.

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4.0 New York TourismFor the past several years, touri sm i n New York and i n the Sout hwestern Regi on has rebounde d and c reated an envi ronment for renewe d efforts to aggressi vel y purs ue t hi s very l uc rati ve ave nue. New York Stat e Tour ism Tren ds in 2011 T he recovery of New York State s touri sm ec onomy acc el erated i n 2011, growi ng 8.1% after an 8.7% expansi on i n 2010. As a resul t, travel er spendi ng reac he d a new hi gh of $53.8 bil li on. Key i ndustry data provi de de tai ls of t he hi st ori c e xpa nsi o n: Room demand s urge d, growi ng 5.2% i n 2011. And room rates i nc reased 5.2% equati ng to a total hotel revenue i nc rease of 10.6% ac cordi ng to Smi th T ravel Researc h. Ai r passenger ac ti vi ty i nc reased 1.9% for JFK and LG A c ombi ned w hi l e ai rfares at these ai rports i nc reased 10 %. A c ombi nati on of hi gher fuel pri c es and a ddi ti onal dri ve vi si tors pushe d spendi ng at gasoli ne stati ons up 21%. Di rec t touri sm empl oyment grew 3.8% to reac h a new hi gh i n 2011 whil e associ ated personal i nc ome expande d 6.9%. T ravel and to uri sm remai ns a vi tal and growi ng c omponent of t he New York State ec onomy. Spe ndi ng by vi si tors to New York grew 8.1% i n 2011 to $53.8 bil li on. T hi s spendi ng ge nerate d $87 bi lli on i n total busi ness sal es i ncl udi ng i ndi rec t and i nduc e d i m pac ts More than 694,000 jobs were sustai ned by touri sm ac ti vi ty last year wi th total i nc ome of $28 bil li on. 8.0% (1 i n 13) of all New York state empl oyment i s sustai ned by to uri sm, ei ther di rec tl y or i ndi rec tl y. New York State touri sm generated $6.9 bill ion i n state and l ocal taxes i n 2011. 27

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T ra vel e r s pe n di ng c o nti nue d to e xpa n d i n 2011 , gr owi ng 8 .1 % a f te r a n 8.7 % r eb o un d i n 20 10. As a res ul t , t he t o uri s m ec o no m y r eac he d a ne w hi g h i n 201 1, wi t h $53.8 bi l l i o n i n tra vel er s pe n di ng. T ra vel e r s pe n di ng gro w t h has a ve rag e d 5 % pe r yea r fr o m 20 03 - 2011 (c o m po un d a nn ual gr o wt h) . Reg iona l Tour ism New York Ci ty, Lo ng Isl and and H udson Val l ey together c ompri se nearl y 80% of New York S tate tra vel er spe nd, of w hi c h the H udson Val l ey is ei ght perc ent . T ouri sm i s an i ntegral part of every New York re gion s economy, generati ng from 6% to 17% of em pl oyment. T ouri sm is most i mportant to the Adi rondac ks and Catski ll s, generati ng17% and 15% of total em pl oyment, res pec ti vel y. T ouri sm i n the Catski l ls is a nearl y $1 bi lli on i ndustry, supporti ng 16,666 jobs. T ravel er spendi ng i n the Catski l ls regi on expande d by 5.4% i n2010. T ravel ers spent $997 mi ll ion i n the Catski ll s regi on i n 2010ac ross a di verse range of sec tors. Spe ndi ng on l odgi ng and expe nses rel ated to sec ond homes c ompri sed 35% and26% of the total , r espec ti vel y. In t he Catski ll s regi on, 10.8% of all l abor i ncome is generated by touri sm. Sullivan County is the m ost dependent upon tourism with 15.7% of a ll la bor incom e genera ted by visitors. T ouri sm i n the Catski l ls region generate d $123 mil li on i n stat e and l ocal taxes i n 2010. Sal es, property, and hotel be d taxes generate d over $61mil li on i n l oc al taxes. 28

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Traveler sp end ing growth T ravel er spendi ng c onti nue d to expand i n 2011, growi ng 8.1% after an 8.7% rebound i n 2010. As a resul t, the to uri sm ec onomy reac hed a new hi gh i n 2011, wi th $53.8 bi lli on i n travel er spe ndi ng. T ravel er spendi ng growth has average d 5% per year from 2003 - 2011 (c ompound a nnual growth). New York Stat e Tour ism Markets Uni te d States domesti c markets suppl i ed 70% ($38 bill i on) of the New York Stat e s traveler spendi ng base i n 2011. Inter nati onal markets represente d 30% ($16 bi lli on) of the spendi ng base. Travel Spend ing By S ector T ravel er s pendi ng i nc reased the most at gasoli ne stati ons as fuel pri c es rose more than 20% i n 2011. Spe ndi ng i n the l o dgi ng sec tor also expande d a robust 11% i n 2011. Al l sec tors reac hed new hi ghs e xc ept for rec reati on & enter tai nment, whi c h remai ns sl i ghtl y bel ow i ts 2008 peak. T ravel ers i nc reased t hei r spe ndi ng ac ross all sec tors i n 2011. Su llivan Cou nty It i s bel i eved t hat the ec onomi c de vel opme nt strategi es of Sul li van Co unty, New York wil l bec ome a spri ngboard for growth i n the retail , rental housi ng and touri st i ndustri es . T he fol l owi ng eve nts ha ve al ready oc c urred as part of the

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Count y s growth str ategy and t he Come dy Hal l of Fame Devel opme nt projec t will become an active catalyst in the communit y s growth. T housands of new jobs have al ready been reali zed and are anti c i pated by projec ts suc h as the expansi on of Stewart Inter nati onal Ai rport and the Sul l i van County c asi no T he i nfrastruc ture i mpro veme nts t hat ha ve been real i zed and that are pl anne d wi l l c ontri bute to the c onti nue d regrowth of t hi s area T he popul ati on base i n thi s area i s not expec te d to c hange i n numbers that are statistic all y si gni fic ant for the ne xt t hi rty years A 2010 County- c ommi ssi oned re port has al ready i de nti fi ed the nee d for i nc reased worker housi ng i n S ul l i van County and urge d that t hi s be made a pri ori ty T he touri sm i ndustry has al ready reali zed si gni fic ant growth over the pa st two years and a c onc erted e ffort i s underway to sustai n t hi s growth. Potenti al growth i n Sul li van Co unty for the i ndustry sec tors i n whic h this projec t wi ll parti ci pate i s shown bel ow.

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5.0 Empire Town Center5.1 The Location and Description of AreaT he Em pi re Regi on i s c urrentl y home to several thousand sc attered si ngl e- famil y homes and c abi ns around Lake Lo ui se Mari e, Wol f Lake, Masten Lake, Yankee Lake and Lake Wa nasi nk, al l of whic h are wi thi n fi ve mi l es of Empi re T own Ce nter . T he De partment of T ransportati on i s c urrentl y engaged i n a mul ti - bill ion dol l ar projec t to revi tal ize New York State Route 17 and c onvert i t to Uni te d S tates Federal Interstate 86 (I- 86). T he I- 86 projec t is c urrentl y foc used on exi ts 106- 110 and i s esti mated to be c ompl eted b y May 2015 .T he I- 86hi ghway i s i ntende d to form the major thoroug hfare al ong the souther n ti er of New York State c onnec ti ng New York Ci ty to Eri e, P A. T he Uni te d States i nterstate hi ghway network was c onstruc ted as the pri mary bac kbone of c ommerc e, and I- 86 i s sl ated to spur ec onomic devel opment al ong the enti re souther n regi on of New York State. T his roadway al so forms the pri mary artery between New York Ci ty and Cornel l Uni versi ty, whi c h rec entl y was awarde d the o pport uni ty to c onstruc t a two bi lli on do l l ar tec hnol ogy c enter i n New York Ci ty. T he Em pi re Regi on i s l oc ated wi thi n an area c all ed the Catski l l Mountai ns. T he regi on, whi c h l i es adjac ent to the Appal ac hian Mountai ns, was a popul ar resort area duri ng t he mi d to l ate twenti eth c entury. N umero u s resorts were l oc ated i n the Catski ll s and were po pul ar vac ation desti nati ons for resi dents of New York Ci ty. T he l and si ts a quarter o f a mil e east of the Neversi nk Ri ver and sl opes gentl y north to vi stas that ha ve magni fi c ent vi ews of t he Catski ll Moun tai ns. T he c ommerci al porti on of the projec t i s vi si bl e from both East and Westbound traffi c on Interstate 86. T he property i s si tuated i n the T own of Empi re that i s

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l oc ated on the Eastern Si de of S ul l i van Co unty bor deri ng Orange Co unty, whi c h has been a nd c onti nues to be one of the fastest growi ng counti es i n New York State and t he Nort heastern Uni te d States. Besi des servi ng the ec onomi c growth expec te d wi thi n S ul l i van Co unty, the Em pi re T own Center al so serves as an attrac ti ve c ommuter c ommuni ty and second- home market for peo pl e from t he N ew York Ci ty me tro area, as i t is l ess than a 90 - mi nute dri ve. Em pi re T own Center i s al so onl y 20 mi nutes away from the New Jersey T ransi t T rai n l i ne, whi c h connec ts to New York Ci ty's Pe nn Stati on. Em pi re T own Cente r wi ll serve as an anc hor to Sul l i van Co unty on t he Eastern si de wi th Bet hel Woods Performi ng Arts Ce nter 25 mi nutes away on S ul l i van Co unty 's Western si de. Em pi re T own Ce nter i s 50 mi nutes from Newburg , New York's Stewart ai rport, whi c h was the former St ewart Ai r Forc e base. Stewa rt was c onverte d to c ommerc ial t raffic a l i ttl e over a dec ade ago and was rec entl y taken o ver by t he New York/New Jersey Port Aut hori ty who o perates JFK, LaGuar di a and Newark Internati onal ai rports. T he takeover by the Port A ut hori ty of Stewart Inter nati onal was dri ve n by the goal of easi ng the congesti on of New York Ci ty's other three ai rports and bei ng uti l i zed to shi ft the si gni ficant c argo fl ow from JFK to Stewart. Stewart Ai rport has one of the l ongest runways i n the c ountry at 12,000 feet. It i s still used today by the presi de nt w hen tra vel i ng to the Uni te d Nati ons for l andi ng Ai r Forc e One. Em pi re T own Center i s also l ocated l ess than 40 Mi l es away from Woodbury Common Premi um Outl ets, a major attrac tion for touri sts from al l over the worl d. It i s al so c onsi dere d t he worl d's l argest c ol l ec ti on of l uxury desi gner and name brand o utl ets. Some outl ets c l ai m that more than 50% of profi ts c ome from Japanese and Chi nese to uri sm. T here are dai l y tour b uses and shuttl es to and from New York Ci ty.

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5.1 The Project

T he de vel opme nt of t he Em pi re T own Center has been di vi de d i nto two phases, Phase I and P hase II. Phase I wi ll i ncl ude t he c onstruc ti on of a 90 - room hotel , 60,000 square feet of retail spac e, 384 apartment uni ts, and t he bal anc e of i nfrastruc ture req ui red for the c ommerci al spac e and 1,273 ful l y i mpro ve d resi denti al l ots. T hi s phase consists of four separate c omponents that wi l l be compl eted by the sec ond hal f of year three of t he

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projec t. T he fi rst c omponent i s a 90- room li mi ted- servi c e hotel . Construc ti on of the hotel wil l c ommenc e i n year one and i s antic i pated to be ful l y operational by year three. T he second c ompone nt i s the de vel opme nt of 60,000 square feet of c ommerci al retai l spac e (16 x 1,500 squar e feet, 5 x 4,000 square feet, 2 x 8,000 square feet). Constr uc ti on of the retail spac e wi ll begi n i n year two and wi l l be ful l y l easabl e by the sec ond hal f of year t hree. T he thi rd c ompone nt i s the de vel opment of a 384 - uni t apartme nt wi th a mi x i ncl udi ng one, two, and three be droom uni ts, whi c h will al so be ful l y operati onal by the sec ond hal f of year three. T he fi nal c omponent of t hi s Phase i s the de vel opme nt of the majori ty of the i nfrastruc ture (water wel ls, sewers, roads, etc .) requi red for the resi denti al lots and c ommerci al spac e. Construc ti on wi ll i ni ti ate i n year one and wi ll conti nue i nto Phase II. Re nderi ngs of t hi s de vel opment are shown bel ow. Phase II wil l i ncl ude t he de vel opme nt of another 60,00 0 square feet of retai l spac e (16 x 1,5 00 square feet, 5 x 4,000 square feet, 2 x 8,000 square feet) an d the remai ni ng i nfrastruc t ure req ui re d. T he commerci al retai l spac e has been desi gne d to c reate a true feel i ng of a town c enter where peo pl e go to work, shop, be e ntertai ne d, and s pend a c asual day. T hi s phase offici al l y c ommenc es the second hal f of year three. Constr uc ti on is esti mated to be c ompl eted by the end of year t hree, and t he s pac e to be ful l y l easabl e by year four.

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Sullivan County, New York

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6.0 Targeted Employment AreaT he Em pi re State Regi onal Center rec ei ve d a l etter desi gnati ng the area i n whi c h thi s projec t i s l ocated as a rural area, exc erpte d i n part as fol l ows: For pur poses of the Immi grati on Ac t of 1990, a "rural area" is de fi ne d as an area other than a Metropol i tan Stati sti cal Area or a ci ty or town of 20,000 popul ati on or more. Sul li van Co unty i s not i n a Metropoli tan Statistic al Area and has no ci ti es or towns greater than 20,000. It therefore q ual i fi es as a rural area under thi s de fi ni ti on. T he federal Offic e of Management and B udget de termi nes the s pec i fic c ri teria for desi gnati on of areas as Metropol i tan Statistic al Areas and t he l ast c hange i n those c ri teria was made i n 2003. Sul l i van Co unty 's status has not c hange d si nc e that ti me. As the Go vernor's desi gnate d l ea d agenc y for c erti fic ation of T argeted Em pl oyment Areas under t he Immi grati on Ac t of 1990, I am abl e to c erti fy that the T own of Em pi re i n S ul l i van County i s a rural area for these pur poses.

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7.0 New York StatePopulation 1990 Population 2000 Population 2010 Population 2015 Population 1990-2000 Annual Rate 2000-2010 Annual Rate 2010-2015 Annual Rate 2010 Male Population 2010 Female Population 2010 Median Age 1 7 ,99 0 ,45 5 1 8 ,97 6 ,45 7 1 9 ,54 3 ,73 1 1 9 ,73 6 ,74 9 0 . 54 % 0 . 29 % 0 . 20 % 4 8 .4 % 5 1 .6 % 3 7 .7

In the i denti fi ed area, the c urrent year popul ati on i s 19,543,731. In 2000, the Cens us c ount i n the area was 18,976,457. T he rate of c hange si nc e 2000 was 0.29 perc ent annual l y. T he fi ve - year projec tion for the po pul ati on i n the area i s 19,736,749, represe nti ng a c hange of 0.20 perc ent annual l y from 2010 to 2015. Currentl y, the popul ati on i s 48.4 perc ent mal e and 51.6 perc ent femal e. Popu lat io n by Em p loym ent Currentl y, 90.3 perc ent of the c i vil ian labor forc e i n the i denti fi ed area is empl oye d and 9.7 per c ent are unem pl oye d. In c ompari son, 89.2 perc ent of the Uni te d States ci vi li an l abor forc e i s empl oyed, and 10.8 perc ent are unem pl oyed. In fi ve years the rate of empl oyment i n t he area will be 92.0 perc ent of the ci vi l ian l abor forc e, and unem pl oyment w i l l be 8.0 perc ent. T he perc entage of the Uni te d States c i vi l ian l abor forc e that wi ll be empl oyed i n fi ve years i s 91.2 perc ent and 8.8 perc ent wi l l be unem pl oyed. In 2000, 61.1 perc ent of the po pul ati on aged 16 years or ol der i n the area partici pate d i n the l abor forc e, and 0.2 perc ent were i n the Arme d Forc es. In the c urrent year, t he oc c upati onal di stri buti on of the em pl oyed popul ati on i s: 64.2 perc ent i n whi te collar jobs (compared to 61.6 perc ent of the Uni te d States empl oyment )

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19.4 perc ent i n se r vi c e jobs (c ompared to 17.3 perc ent of Uni te d States empl oyment) 16.4 perc ent i n bl ue c oll ar jobs (c ompared to 21.1 perc ent of Uni te d States empl oyment) In 2000, 56.3 perc ent of the area popul ati on drove al one to work, and 3.0 perc ent worked at home. T he average travel ti me to work i n 2000 was 31.7 mi nutes i n the area, c ompare d to t he U.S a verage of 25.5 mi nutes. In the c urrent year, t he e duc ati onal attai nment of the popul ati on aged 25 years or ol der i n the area was di stri bute d as fol l ows: 15.2 perc ent had not earne d a hi gh sc hool di pl oma (14.8 perc ent i n the Uni te d S tates) 28.9 perc ent were hi gh sc hool graduates onl y (29.6 perc ent i n the Uni te d States) 18.6 perc ent had c ompl ete d an Associ ate degree (7.7 perc ent i n the Uni te d States) 28.2 perc ent ha d a Bac hel or's degree (17.7 perc ent i n the Uni te d States) 14.1 perc ent ha d ear ne d a Master's/Professi onal /Doc torate Degree (10.4 perc ent i n the Uni te d States) Househo lds by Incom e Current me di an househol d i nc ome i s $58,128 i n the area, c ompared to $54,442 for all Uni te d States house hol ds. Me di an ho usehol d i nc ome i s projec ted to be $67,526 i n fi ve years.Me d ia n Hou se ho ld In come 1990 Median Household Income 2000 Median Household Income 2010 Median Household Income 2015 Median Household Income 1990-2000 Annual Rate 2000-2010 Annual Rate 2010-2015 Annual Rate $32,965 $43,582 $58,128 $ 67 ,5 26 2.83% 2.85% 3.04%

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Current average house hol d i nc ome i s $77,971 i n thi s area, c ompared to $70,173 for all U.S househol ds. Average ho usehol d i nc ome is projec ted to be $90,913 i n fi ve years. In 2000, average ho usehol d i nc ome was $61,856, c ompared to $44,121 i n 1990. Current per c api ta i nc ome is $29,455 i n the area, c ompared to t he Uni te d States per c api ta i nc ome of $26,739. T he per capi ta i nc ome i s projec ted to be $34,332 i n fi ve years. In 2000, the per c api ta i ncome was $23,389, c ompared to $16,501 i n 1990.A v era ge Ho u se ho ld In com e 1990 Average Household Income 2000 Average Household Income 2010 Average Household Income 2015 Average Household Income 1990-2000 Annual Rate 2000-2010 Annual Rate 2010-2015 Annual Rate Ho u sing 1990 T otal Housing Units 2000 T otal Housing Units 2010 T otal Housing Units 2015 T otal Housing Units 1990 Owner Occupied Housing Units 1990 Renter Occupied Housing Units 1990 Vacant Housing Units 2000 Owner Occupied Housing Units 2000 Renter Occupied Housing Units 2000 Vacant Housing Units 2010 Owner Occupied Housing Units 2010 Renter Occupied Housing Units 2010 Vacant Housing Units 2015 Owner Occupied Housing Units 2015 Renter Occupied Housing Units 2015 Vacant Housing Units 7,226,891 7,679,307 8 , 098 , 600 8 , 247 , 094 3 , 464 , 436 3 , 174 , 886 587,569 3 , 739 , 166 3 , 317 , 694 622,447 3 , 818 , 854 3,440,522 8 39 ,2 24 3,854,571 3,478,249 9 14 ,2 74 $44,121 $ 61 ,8 56 $77,971 $90,913 3.44% 2.29% 3.12%

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Currentl y, 47.2 perc ent of the 8,098,600 housi ng uni ts i n the area are owner occ upi e d; 42.5 perc ent, renter oc c upi e d; and 10.4 are vacant. In 2000, there were 7,679,307 housi ng uni ts: 48.7 perc ent owner oc c upi ed, 43.2 perc ent renter occ upi e d, and 8.1 perc ent vac ant. T he rate of c hange i n housi ng uni ts si nc e 2000 i s 0.52 perc ent. Me di an home val ue i n t he area i s $263,263, compared to a medi an home val ue of $157,913 for the Uni te d S tates . In fi ve years, me di an val ue i s projec ted to c hange by 4.83 per c ent annual l y to $333,214. From 2000 to the c urre nt year, me di an home val ue c hange by 5.81 perc ent annual l y. T he ho usehol d c ount i n t hi s area has c hanged from 710,916 i n 2000 to 797,056 i n the c urre nt year, a c hange of 1.12 perc ent annual l y. T he fi ve - year projec ti on of house hol ds i s 846,777, a c hange of 1.22 perc ent annual l y from the c urrent year total . Average ho usehol d si ze is c urrentl y 2.38, c ompared to 2.39 i n t he year 2000. T he number of fami l i es i n the c urre nt year i s 463,962 i n the s pec i fi ed are a. Unem p loym en t T he foll owi ng c hart shows that a compari son of the unem pl oyment tre nd for the State of New York over the past dec ade. Sout hwest B usi ness Servi c es c reated thi s c hart based upon B LS data. As t he c hart c l earl y i ndi c ates, after dec reasi ng between 2004 and 2006, the unem pl oyment rate has s pi ked s harpl y si nc e then. T he unem pl oyment rate i n the c ounty i s a major dri ver for projec ts suc h as this one, whi c h wi l l be a part of the re vi tal i zati on of Sul l i van Co unty.

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8.0 Sullivan CountyPopulation 1 99 0 P opulati on 2 00 0 P opulati on 2 01 0 P opulati on 2 01 5 P opulati on 1 99 0 -2 00 0 A nnual R ate 2 00 0 -2 01 0 A nnual R ate 2 01 0 -2 01 5 A nnual R ate 2 01 0 Male P opulat ion 2 01 0 F em ale P opulation 2 01 0 Median A ge 6 9 ,27 7 7 3 ,96 6 7 6 ,77 3 7 6 ,36 4 0 . 66 % 0 . 36 % -0 . 11 % 5 1 .0 % 4 9 .0 % 4 1 .7

In t he i denti fi e d area, the c urre nt year po pul ati on i s 76,773. In 2000, the Ce ns us c ount i n the area was 73,966. T he rate of c hange si nc e 2000 was 0.36 perc ent annual l y. T he fi ve - year projec ti on for the po pul ati on i n the area i s 76,364, representi ng a c hange of - 0.11 perc ent annual l y from 2010 to 2015. Curre ntl y, the po pul ati on i s 51.0 perc ent mal e and 49.0 perc ent femal e. Popu lat io n by Em p loym ent Currentl y, 91.1 perc ent of the c i vil ian labor forc e i n the i denti fi ed area is empl oye d and 8.9 perc ent are unem pl oye d. In c ompari son, 89.2 perc ent of the Uni te d States ci vi li an l abor forc e i s empl oyed, and 10.8 perc ent are unem pl oyed. In fi ve years the rate of empl oyment i n t he area will be 92.7 perc ent of the ci vi l ian l abor forc e, and unem pl oyment wi l l be 7.3 perc ent. T he perc entage of the Uni te d States c i vi l ian l abor forc e that wi ll be empl oyed i n fi ve years i s 91.2 perc ent and 8.8 perc ent wi l l be unem pl oyed. In 2000, 57.6 perc ent of the po pul ati on aged 16 years or ol der i n the area parti ci pate d i n t he l abor forc e . In the c urrent year, t he oc c upati onal di stri buti on of the em pl oyed popul ati on i s: 55.9 perc ent i n whi te collar jobs (compared to 61.6 perc ent of the Uni te d States empl oyment ) 23.8 perc ent i n ser vi c e jobs (c ompared to 17.3 perc e nt of Uni te d States empl oyment) 42

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20.3 perc ent i n bl ue c oll ar jobs (c ompared to 21.1 perc ent of Uni te d States empl oyment) In 2000, 76.7 perc ent of the area popul ati on drove al one to work, and 3.7 perc ent worked at home. T he average travel ti me to work i n 2 000 was 29.3 mi nutes i n the area, c ompare d to t he Uni te d States average of 25.5 mi nutes. In the c urrent year, t he e duc ati onal attai nment of the popul ati on aged 25 years or ol der i n the area was di stri bute d as fol l ows: 16.4 perc ent had not earne d a hi gh sc hool di pl oma (14.8 perc ent i n the Uni te d S tates ) 36.3 perc ent were hi gh sc hool graduates onl y (29.6 perc ent i n the Uni te d States ) 9.6 perc ent ha d c ompl ete d a n Assoc iate degree (7.7 perc ent i n the Uni te d States ) 11.5 perc ent ha d a Bac hel or's degree (17.7 perc ent i n the Uni te d States ) 9.8 perc ent had earne d a Master's/Professi onal /Doc torate Degree (10.4 perc ent i n the Uni te d States )

Househo lds by Incom e Current me di an househol d i nc ome i s $46,326 i n the area, c ompared to $54,442 for all Uni te d States house hol ds. Me di an ho usehol d i nc ome i s projec ted to be $52,505 i n fi ve years. In 2000, medi an househol d i nc ome was $36,872, compared to $27,582 i n 1990.Me d ia n Hou se ho ld In come 1 99 0 Median H ousehol d I ncom e 2 00 0 Median H ousehol d I ncom e 2 01 0 Median H ousehol d I ncom e 2 01 5 Median H ousehol d I ncom e 1 99 0 -2 00 0 A nnual R ate 2 00 0 -2 01 0 A nnual R ate 2 01 0 -2 01 5 A nnual R ate $ 32 ,9 65 $ 43 ,5 82 $ 58 ,1 28 $ 67 ,5 26 2 . 83 % 2 . 85 % 3 . 04 %

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Current average house hol d i nc ome i s $58,346 i n thi s area, c ompared to $70,173 for al l Uni ted States ho usehol ds. Average ho usehol d i nc ome i s projec ted to be $67,446 i n fi ve years. In 2000, average house hol d i nc ome was $48,359, compared to $33,977 i n 1990. Current per c api ta i nc ome is $23,545 i n the area, c ompared to t he Uni te d States per c api ta i nc ome of $26,739. T he per capi ta i nc ome i s projec ted to be $27,389 i n fi ve years. In 2000, the per c api ta i ncome was $18,892, c ompared to $12,567 i n 1990.A v era ge Ho u se ho ld In com e 1 99 0 A v erage H ousehold I ncom e 2 00 0 A v erage H ousehold I ncom e 2 01 0 A v erage H ousehold I ncom e 2 01 5 A v erage H ousehold I ncom e 1 99 0 -2 00 0 A nnual R ate 2 00 0 -2 01 0 A nnual R ate 2 01 0 -2 01 5 A nnual R ate Ho u sing 1 99 0 T otal H ousing U nits 2 00 0 T otal H ousing U nits 2 01 0 T otal H ousing U nits 2 01 5 T otal H ousing U nits 1 99 0 Owner Oc cup ied H ous ing U nits 1 99 0 R enter Occu pie d H ousing U nits 1 99 0 V acant H ousing U nits 2 00 0 Owner Oc cup ied H ous ing U nits 2 00 0 R enter Occu pie d H ousing U nits 2 00 0 V acant H ousing U nits 2 01 0 Owner Oc cup ied H ous ing U nits 2 01 0 R enter Occu pie d H ousing U nits 2 01 0 V acant H ousing U nits 2 01 5 Owner Oc cup ied H ous ing U nits 2 01 5 R enter Occu pie d H ousing U nits 2 01 5 V acant H ousing U nits $ 33 ,9 77 $ 48 ,3 59 $ 58 ,3 46 $ 67 ,4 46 3 . 59 % 1 . 85 % 2 . 94 %

4 1 ,81 4 4 4 ,73 0 5 0 ,31 1 5 2 ,18 7 1 6 ,88 2 7 , 694 1 7 ,23 8 1 8 ,83 4 8 , 827 1 7 ,06 9 2 0 ,12 2 9 , 530 2 0 ,65 9 2 0 ,19 4 9 , 510 2 2 ,48 3

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Currentl y, 40.0 perc ent of the 50,311 housi ng uni ts i n the area are owner occ upi e d; 18.9 perc ent, re nter oc c upi ed; and 41.1 are vac ant. In 2000, there were 44,730 housi ng uni ts - 42.1 perc ent owner oc c upi e d, 19.7 perc ent renter occ upi e d, and 38.2 perc ent vac ant. T he rate of c hange i n ho usi ng uni ts si nc e 2000 i s 1.15 perc ent. Me di an home val ue i n t he area i s $145,198, c ompared to a medi an home val ue of $157,913 for the Uni ted States In fi ve years, me di an val ue i s projec ted to c hange by 4. 06 perc ent annual l y to $177,137. From 2000 to the c urrent year, me di an home val ue c hange by 4.74 perc ent a nnual l y. T he house hol d c ount i n t hi s area has c hanged from 27,661 i n 2000 to 29,652 i n the c urre nt year, a c hange of 0.68 perc ent annual l y. T he fi ve - year projec ti on of house hol ds i s 29,704, a c hange of 0.04 perc ent annual l y from the c urrent year total . Average ho usehol d si ze is c urrentl y 2.42, c ompared to 2.50 i n t he year 2000. T he number of fami l i es i n the c urre nt year i s 19,432 i n the spec i fi ed ar ea.

8 .1 Sullivan County s 2012 Economic OutlookD uri ng the c urre nt rec ession, the County has seen many busi ness cl osures i n two of i ts major ec onomic sec tors. V i l lages and haml ets thro ugho ut the Co unty and Mai n Street areas have e xperi enc ed a sharp i nc re ase i n vac anci es and busi ness cl osures foll owi ng a sli ght resurgenc e i n these areas i n the pre vi ous dec ade . T wo of Sullivan Count y s major employment sectors, agriculture and touri sm, have bee n dec li ni ng for dec ades. Moreover, ac ross vi rtual l y all sec tor s, wages are insufficient to meet families needs. T hi s presents many c hall enges and S ul l i van Co unty i s pre pari ng l ong - term strategi es to meet them . Com prehe nsi ve ec onomi c de vel opme nt pl anni ng i s i nc reasi ngl y i mportant as c ounti es attempt to s ustai n them sel ves i n the fac e of the c urrent ec onomic dow nt urn. Sul l i van County shares muc h i n c ommon wi th others throug ho ut the regi on i n terms of i ts agric ul ture and tour ism based economy, i ts proxi mi ty to major c enters of popul ati on and c ommerc e, abundant nat ural resourc es, a rel ati ve l ac k of i nfrastruc ture, and i ts demographi c profi l es. S ul l i van Co unty strategi es are refl ec ted i n two doc uments i n parti c ul ar the Sul l i van Co unty Ec onomic Devel opment Strategy and Pl an as wel l as the Sul l i van 2020: Defi ni ng an Image and Managi ng Change roadma p.

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T ogether wi th agric ul ture, t he Co unty vi ews touri sm a s a c ri tical c omponent of the ec onomy and an opport uni ty to be c api talized upon. T o hel p i de nti fy and reac h the Count y s potenti al as a touri st desti nati on, t he E D C has beg un a touri sm and ec onomi c de vel opment i ni ti ati ve. Downtown re vi tali zati on, especi al ly i n the ri ver c orri dor, i s another pri ori ty for Sul l i van Co unty. Cri ti c al to our ec onomic de vel opme nt i s the c reati on of tec hnol ogy i nfrastruc ture that c an meet the nee ds of o ur resi de nts, b usi nesses and vi si tors. Some key c omponents of the 2020 pl an are: Natural Resourc e Management Land Use Pl anni ng and Zoni ng Informati on T ec hnol ogy Infrastruc t ure T ransportati on Infrastruc t ure Comm uni ty De vel opme nt and Ho usi ng Ec onomic Devel opme nt Facil i ti es Devel opme nt

8.2 Sullivan County Transportation InfrastructureThe Count y s strategic Mi d- Hudson l ocation offers a key advantage f or i ndi vi dual s or fi rms requi ri ng acc ess to truc k and ai r transportati on. S ul l i van Co unty Int ernati onal Ai rport has a newl y renovate d 6,300 foot runway, enhanc e d l andi ng and l i ghti ng systems on a 600 ac re parc el of l and. In a ddi ti on, Stewart Ai rport i n Newburgh has bec ome a true regi onal ai rport wi th dai l y fli ghts to major Americ an ci ti es. Wi th a new e xi t ramp c omi ng off of I- 84, Stewart can be reac hed from Monti c ell o i n l ess than an ho ur . T he onl y regul arl y sc hedul e d publ i c transportation between New York Ci ty and Sul l i van Co unty i s the Short Li ne Bus that runs between Monti c ell o and Port Authori ty. T he b us r uns about e very two ho urs, and ge neral l y takes cl ose to two hours.

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T he Port Jervi s trai n li ne, operated by New Jersey T ransi t i n c ooperati on wi th Metro North, runs from Port Jer vi s to New York Penn Stati on and takes about two and a hal

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