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2007-06-19 SP MTG27 SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 1 SPECIAL TOWN BOARD MEETING June 19,2007 4:30 p.m. MTG. #27 RES. 307-309 TOWN BOARD MEMBERS PRESENT SUPERVISOR DANIEL STEC COUNCILMAN ROGER BOOR COUNCILMAN RICHARD SANFORD COUNCILMAN JOHN STROUGH COUNCILMAN TIM BREWER Representative of Tribune Media Representative of EDC Representatives of Queensbury School District Supervisor Stec-Opened the meeting. 1.0 RESOLUTION: RESOLUTION APPROVING ANN W A TSONffWO WOMEN AND A SHOW'S TRANSIENT MERCHANT/ TRANSIENT MERCHANT MARKET APPLICATION RESOLUTION NO.: 307,2007 INTRODUCED BY: Mr. Roger Boor WHO MOVED ITS ADOPTION SECONDED BY: Mr. John Strough WHEREAS, Ann W atson/Two Women and a Show has submitted an application to the Queensbury Town Board for a Transient Merchant/Transient Merchant Market License to conduct a transient merchant market for the Adirondack Art & Craft Show from August lOthth - 1ih, 2007 at the Adirondack Sports Complex, 326 Sherman Avenue, Queensbury in accordance with the provisions of Town Code Chapter 160, and WHEREAS, in accordance with Queensbury Town Code Chapter 160, 9160- 8(2)(b), the Town Board, "at its discretion, may forward the application to the Town Planning Board for site plan review comments," and WHEREAS, the Town Board is duly qualified to act as lead agency for compliance with the State Environmental Quality Review Act (SEQRA) which requires environmental review of certain actions undertaken by local governments, and SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 2 WHEREAS, the Town Board has advised Doug Miller, owner of the Adirondack Sports Complex, that he must seek approval for a modification to the existing site plan approval to address the outstanding site deficiencies and also that he may seek a generic approval recommendation from the Planning Board relative to the conduct of all future transient merchant markets at the Complex. The site plan modification approval must be completed before the Town Board will consider and/or approve such future transient merchant markets at the Complex, and the generic recommendation, if issued, will be considered by the Town Board when reviewing future transient merchant market applications for the complex, NOW, THEREFORE, BE IT RESOLVED, that the Queensbury Town Board, after considering the proposed action, reviewing the Environmental Assessment Form and thoroughly analyzing the action for potential environmental concerns, determines that the action will not have a significant effect on the environment and hereby authorizes and directs the Town Supervisor to complete the Environmental Assessment Form by checking the box indicating that the proposed action will not result in any significant adverse impacts, and BE IT FURTHER, RESOLVED, that the Town Board approves of a Negative Declaration and authorizes and directs the Town Clerk's Office and/or Department of Community Development to file any necessary documents in accordance with the provisions of the general regulations of the Department of Environmental Conservation, and BE IT FURTHER, RESOLVED, that in accordance with the requirements set forth in Queensbury Town Code 9160-8, the Town Board hereby grants a Transient Merchant/Transient Merchant Market License to Ann Watson/Two Women and a Show (Watson) to conduct a transient merchant market for the Adirondack Art & Craft Show from August 10th - 1ih, 2007 at the Adirondack Sports Complex, 326 Sherman Avenue, Queensbury, subject to the following: 1. Watson must pay all fees as required by Town Code Chapter 160; 2. Watson must submit a bond in the amount of $10,000 as required by Chapter 160; 3. Watson must submit proof of authorization to do business in N ew York and authorization of agent to receive service of summons or other legal process in SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 3 New York; 4. The License shall be valid only from August 10th - 1ih, 2007 during the hours of 5:00 - 9:00 p.m. on Friday the loth, 9:00 a.m. - 6:00 p.m. on Saturday the 11th, and 10:00 a.m. - 4:00 p.m. on Sunday the 1ih, and the license shall expire immediately thereafter; 5. The Transient Merchant License shall not be assignable; and 6. Watson must comply with all regulations specified in Town Code 9160-8. Duly adopted this 19th day of June, 2007, by the following vote: AYES Mr. Boor, Mr. Sanford, Mr. Strough, Mr. Brewer, Mr. Stec NOES None ABSENT: None Discussion held after vote: Councilman Brewer-I do not want to hold this application up either but if this process happens again I will vote no. With no review I think it is a shame that all things considered it should have been reviewed and I do not see a reason it shouldn't have and we still could have reviewed it. 2.0 DISCUSSION: TRIBUNE MEDIA PILOT Supervisor Stec-Reviewed the previous meeting regarding Tribune Media Pilot, we last left it that we had some questions, asked Len Fosbrook to speak to the Board Len Fosbrook President ofEDC-Met with Queensbury School Board, attending was Dave Williams President of Tribune was present. In general the Board is in favor however, Tim Place Queensbury School Business Manager raised concerns with the Pilot. Noted he presented at that meeting new numbers, we have agreed to meet and hammer out the issues. Still at issue is Tribunes desire to consolidate two locations on a new plot of land on the Connector Road. Sixty-six thousand square foot building, four hundred employees with a sixteen million dollar annual payroll, the estimated cost of the building between ten and twelve million dollars. BBL is developing a cost analysis it is somewhere in the range of ten million five hundred thousand. What we are projecting to come out of the Pilot is about one point three million plus or minus in revenue toward the taxing districts, there will be projected fund of four hundred and thirteen thousand dollars, actually one point three plus or minus revenue to the school, it will add no additional cost of the school. Weare not moving new families into the community these are families already here. Noted this is a catalyst for other SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 4 business that may want to move to the newly designed corridor. Spoke to Town Assessor Helen Otte, about a verification of our assessment that in year ten or eleven that the value on that property with the building will be in the neighborhood of seven million dollars. The Assessor came up with an independent evaluation of about seven point one million. Weare comfortable with the seven million that we are basing the standard pilot on it is a valid number. Councilman Strough-The building will cost a half million dollars not including property and the value is seven? Len F osbrook - That is assessed value, for the purposes of the Empire Zone there is a different calculation that has to be used. Counsel for Tribune - The whole premise is based upon maximizing the credit that you can achieve under the Empire Zone program combining it with the IDA Pilot. Under Empire Zone program the maximum eligible real property taxes under the pilot is the Federal Cost Basis of the Real Property times the affected County Tax Rate, as reported by the Board of Real Property Services to the Commissioner of Tax and Finance. In 2006 the rate was twenty dollars per one thousand. Under the Empire Zone's Program they would look at. . . cost basis of real property and they would use that rate to come up what credit they would give as a maximum credit under the Empire Zones Program. Len Fosbrook-Not only do you look at the building or the income the building produces but you can look at your cost of construction and also the cost of some of the internal parts of the building. It allows that number to escalate much higher than you would have in this case for an assessed value for taxation purposes. Counsel for Tribune- Noted that Federal Cost Basis can be fixtures, but it cannot be furniture it cannot be removable equipment it has to be for Federal Cost Basis property that can be capitalized. In this project they are looking at maybe twelve million dollars and we are estimating between ten and eleven in actual Federal Cost Basis. Spoke on standard pilot based on assessment you pay zero taxes for five years and fifty percent of the taxes for the remaining five years, our goal was to get zero taxes for fifteen years. We took the Empire Zone Program and the IDA and put them together. Under Empire Zone Program we can get zero taxes for ten years, in order to get the remaining five years we said lets combine the two programs. The company pays full taxes for the first ten years and then it will track the standard pilot, for the first five years the taxing jurisdiction will get zero, that money will be diverted into a project fund which will go to the company to go back into the project the remaining year six through ten it will track the standard pilot that says that stream of income of pilot payments half will go to the taxing jurisdiction and half will be diverted to an escrow account and that account will build up and in year eleven to fifteen the taxing jurisdiction will get paid their taxes out of that fund. We have plugged numbers into the model and there are variables, the assessment of seven million and looking at what is going into the building we are coming up with a Federal cost basis between ten and eleven, so we took ten point five and we accomplished zero SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 5 taxes for fifteen years and a project fund of roughly four hundred thousand dollars and our numbers does slightly better than the standard pilot. Councilman Boor-Is subletting allowed under this? Councilman for Tribune-Under the Empire Zone Program a tenant could also be allowed to avail themselves to credit for the property taxes, 1. through a pilot directly responsible for the taxes under a written lease 2. pay the taxes to the taxing jurisdiction. Councilman Boor- We did not want this transferable. Councilman for Tribune-Under this structure it would be a legal relationship between the entity and the IDA. Supervisor Stec- What happens when a company that has the Empire Zone doesn't meet the requirements that they got the Empire Zone for? Len Fosbrook- They can become decertified. Councilman Boor-Is it going to be Tribune Media that has the line of credit? Counsel for Tribune-There is going to an entity that is going to be the Empire zone, it will be an LLC that is made up of 50% Tribune 50% BBL. Councilman Sanford-Question if there are guarantees in place? Unknown-Noted there are no bonds. Councilman Sanford-How is the project being financed? Counsel for Tribune-The are financing it privately. Councilman Boor-I do not think the town is on the hook for anything here, with the exception of things that we do not have control over, such as the Village of East Lake George should that be successful it is likely the Town would have to reinstitute a town tax in which case it would have an affect on the Town. I want us to be cautious. Supervisor Stec-I do not have a number to offer you, I think it would be safe to say it would be a small number. Counsel for Tribune-If that was the case the rate that is reported yearly, would increase because now you would have an additional percentage in there. Councilman Boor-This does not affect any special district tax? Len Fosbrook- They would pay that in full. Councilman Sanford-I look at this as the value to Tribune, I compared it to a scenario as if there as some organization that had no pilot. I compared that to the enhanced Pilot. I substituted the tax rates used in your enhanced and SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 6 standard model spread sheet using a seven million assessed value, over 15 years I came up with two million nine hundred and thirty seven thousand eight hundred and sixty one dollars and the school tax amount was two point four six million and the County was four hundred and seventy six thousand. Another way to look at it, if we were to give them a lump sum of money today to satisfy their obligation for the fifteen year period of time what would the equate to? I included to the net present value of the non pilot tax obligations I included seed costs which would be land, sewer, and engineering and totals you gave me and I did not discount them at all because they would be paid at project initiation. I did the net present value of the taxes, I came up with one million nine hundred and sixty one thousand eight hundred and seventy two dollars, constitutes the net present value of the tax benefit if it was paid in a lump sum today. This is what they are getting in terms of the deal and they are paying no consideration for it. Questioned if the workforce is reduced is the pilot affected? Is there a thresholds established? Counsel of Tribune- There is a provision in the IDA Uniform Exemption Policy that allows the IDA to implement those procedures. Councilman Sanford-What does the IDA pay to taxing bodies and where does the IDA get that money? Counsel for Tribune-Under the Pilot all the payments are paid to the IDA and then the IDA under a regular pilot will take that fifty percent of the real taxes then they pay that out in apportion to all the tax jurisdictions. So, the school district would get roughly 80% the County 20%. With the deviation and this is what consent we are asking for is to allow the IDA instead of remitting all of money to the affected tax jurisdiction pro rata they will keep a portion of it to fund these two escrow accounts. Len Fosbrook- The entity pays the taxes and then receives a rebate on their taxes that are filed with the State of New York. Councilman Sanford-If we expend a significant amount of money on Empire Zone credits for this particular projects are we putting some other worthy company at a disadvantage because we have exhausted and hit the ceiling of what we have? Len Fosbrook-No. It is limited by the fact in order to become a certified company you have to meet the Empire Zone Plan you have to meet a cost benefit ratio, and you have to be located in the Empire zone. We only have six areas within the County that are designated Empire Zone area, they are basically industrial parks and those places we want to encourage. Councilman Sanford-Questioned if they have ever reached their ceiling? Counsel for Tribune-No, it is done by space. Len Fosbrook-Only the land to be maxed out. Councilman Sanford-I also looked at school, they need to make their own decisions. I looked at the school through a micro economic marginal tax SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 7 analysis basis, because you are not going to be bring in new employees to the area but merely relocating the existing employees I saw that the actual cost incurred by the school would be minimal or zero based on this transaction and therefore under a marginal analysis any contribution that covers a variable costs you have basically created a win situation. My calculations without a pilot the school would get two million point four six with the pilot they are going to receive one point three eight million, a loss of 44%. The costs associated with this project they are not going to be receiving increased infrastructure costs within the school system that it was appropriate to look at it in a marginal analysis way. Supervisor Stec- The way that I view this, I hope the school views it, they have their own vote in this and if don't like it they have the authority to stop it, so they can make their own decision. The way I look at that this is essentially found money to them in that you can look at it they are not going to get all the two and a half they are going to get one and a half million dollars revenue, nobody is getting anything from this property right now, and they are going to have a one and a half million dollar wind fall. Perhaps it could have been in an ideal world with no pilot a two and a half million dollar wind fall, but I look at it as a wind fall. Councilman Sanford-What this program means to Tribune, our resolution calls for three hundred and sixty four not four hundred employees, I took a look at the cost per employee if there was no pilot at all and then the seed money in there it would be nine thousand one hundred and nine dollars over the fifteen year period. With the enhanced pilot seven thousand three hundred and fifty seven dollars per employee. Using the net present value of the deal using the pilot equates to five thousand three hundred and ninety dollars. That is what we are saying as a community to keep this business, the pilot is worth five thousand three hundred and ninety dollars per worker at Tribune, that does not include the seed money. Questioned if Tribune had received benefits in the past? Len Fosbrook-They are a zoned certified business as of2003. Councilman Sanford-Questioned if this was a double dip? Len Fosbrook-No, it is a new entity that will be certified, which is comprised of components of Tribune and BBL. Councilman Sanford-I think this is extremely sweet heart of a deal for Tribune. I am going to support this project because one of my goals is to see the community grow and you do not grow by taking a step backwards. If this isn't good enough for them and they are looking for additional consideration I want to state for the record as far as I am concerned it is off the table. Councilman Boor-In proposed resolution, Section 4, implies that we will have further enhancements. . . requested that the resolution wording be changed to "The Town will not consider any further enhancements or benefits for the Project until the Company has provided a written commitment to proceed with the Project." SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 8 Supervisor Stec- This was the last outstanding significant hurdle for getting the project going and the sense of urgency is that although we have not had a commitment yet that the anticipation is, that they are going to try and get this in before winter construction becomes an issue. I think they are very serious, I suspect and I hope that we are eagerly anticipating an announcement in the near future. We have tried to make this an attractive site to secure these jobs to secure this business, our commitment is sterling in this. The Boards want their questions answered and I think you have done a good job trying to answer them. Councilman Strough-What are the concerns of the school, that should come in the mix because I always believe we put all the cards on the table. I like to make my approval of this of course I am in favor of the idea and I concur with Richard it is a sweet heart deal for Tribune. If all the other players thinks that it is fair and they have reviewed and analyzed this but my approval is going to be contingent on satisfying the schools concerns and I would also like to make my approval contingent that my approval of this is going to that LLC entity, Tribune and BBL. Any change of ownership or any change of use this is going to be renegotiated. Counsel Martin Auffredou- W e had a meeting last night with the School Board and Tribune, Len and Counsel, it was very productive meeting. The School Board endorses the idea of keeping Tribune in the area. They want Tribune to be in the that building and that building to be built they want the development to occur. The issue for us is what are we being asked to approve? We have been looking at this with two problems,!. the compressed time in which we have been asked to look at this 2. the gathering of data and information so we can make informed decisions. So, Tim and I can make a recommendation to our Board of Education and our Board of Education can make an informed decision. Weare still not there yet. I think the Board from my perspective was very uncomfortable with the information that it had and the information that it didn't have, and being asked to approve something which it was very uncertain about. In my view you are being asked to approve a concept you are not being asked to approve specifics. The resolution that is before the Board of Education talks about negotiated deviations now you can read that one of two ways, that they have already been negotiated which I know is not the case or they are to be negotiated which I think is the case. That is the school districts primary problem here is what we are being asked to accept. What we are being asked to approve a concept and then let Tribune and BBL and the IDA fill in the details. That is what we are being asked to accept. I believe that is not acceptable to the Board of Education or Tim Place. Len Fosbrook-We were asking you to accept the deviation from the norm to create a construction fund that you would accept a formula that paid the taxes, eighty to the school and twenty percent to the County. It was the formula and the right to create this fund and create the escrow fund to pay the tax. Counsel Auffredou- I do not think that the Board of Education, I know they do not have a problem with the pro rata distribution because that is the eight fifty-eight fifteen statutory provision, I do not think there is a problem with the concept of a project fund the concept of an escrow, I do not think there is SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 9 a problem with those dollars being diverted and repaid to the district. What we asked for was, the initial representation was that we would get as much or more than we would get under a standard pilot. It was acknowledged last night that is no longer the case. Len Fosbrook- You made that assumption on your own, you changed the numbers. . . Councilman Sanford-That have to work that out, I have one question, my understanding was that if everybody approves it this flow of funds is going to take place as detailed under the enhanced pilot on this spread sheet. Mr. Tim Place-When we were approached there were no numbers to go by (May 22nd.) I developed the spread sheet, I have come to realize that we were advised that our assumptions as the basis of our questions and actually the developments of this have changed. The resolution that we have been asked to approve and these numbers have no basis in relationship. We have been trying to nail down what the numbers are and quite frankly stopped plugging them in for the most part because they have changed at least ten times since our original discussions. When we asked if we could have some certainty as to the original, can you put a sentence in there that says we will basically be in the same place we were with the standard. We were told no that could not be the case. What our school board is being asked to do is divert our taxes and in essence also divert our ability to determine what happens as a result. It would be completely as far as I can see with very slight parameters in the resolution. .not really have any say in the distribution. Those numbers before you and the latest ones I did, which show about a nine hundred thousand dollar deviation from those numbers, I have come to the conclusion that as a resolution is written, I firmly believe that those numbers in front of you are inaccurate. Councilman Boor-I go back to Section 2 in this resolution that says this authorization is only applicable to the project as described to the Town at this meeting and in materials submitted for the Town Board's consideration with regard to this resolution. This is what we have been given and this resolution is tied to those numbers. Councilman Sanford-If there is differential between standard and enhanced on a net present value basis if you look at it that way what would be the differential to the school system between the two? Tim Place-It could be up to about seven hundred thousand dollars. Len Fosbrook-Over the life of fifteen years, sixty thousand dollars a year. Unknown- The Board wants to have from Tim exactly what the impact of the enhanced vs the standard pilot is. They seem not to have an issue in doing this, they do not want to make the decision unless they have an exact number. They are going to do that between now and Thursday. Counsel Auffredou-No, we never said we had to have an exact number we just said we needed to know what we are approving and as the resolution was presented we really have no idea. SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 10 Councilman Strough-I do not want the school to get the idea that the Board is going to leave them high and dry so I am suggesting and I think the consensus here is that we do support the concept. I think our support should be contingent on that we have to say our approval would be contingent on you satisfying the school's concerns. Supervisor Stec- They have a veto in this the fact is if they say no there is no pilot. Councilman Strough-If the nature of this entity changes they have to sit down and renegotiate this. Councilman Boor-Lets make it very clear that we in no way want to pressure you, your decision is absolutely your decision, our impact is considerably different than yours and we have much less at stake the down side even with a Village formation is minimal relative to what it could be in the case of school. Counsel Auffredou- I believe that between now and Thursday I am not sure our concerns are going to be adequately addressed we are going to try. Our suggestion is that the Town and the School District be parties to the agreement, that way we have a stake at the table for negotiation of the deviations. We know what the deviations are everyone goes into this with eyes wide open and that is where we would feel that we are at a comfort level. At that point in time if that happens we know where we are. This was implied if not talked about expressly last night the opportunity for the school district to be a party to the pilot agreement. I think it is something that can be done and I think it is something that would give the school board a certain degree of comfort knowing that we are going to be allowed to discuss this to participate in it and to know what we are getting into. Councilman Strough-Could we add to our resolutions that we believe that the school should be a party to the negotiations and agreements? Supervisor Stec-Again, that is between the school and them. Councilman Brewer-It is their approval not ours. Councilman Strough-I look at it as separate I look at it as one community. Councilman Brewer-I do to, John, but it is their approval not ours. Councilman Strough-When they stamp something in I want to make sure that all the i's are dotted and the t's are crossed. Discussion held regarding the wording of Section 4 of the resolution to change the word consent to consider. Agreed to by the Board. Councilman Boor-If the school in fact decides that they want to be a party to this I would like to think and their approval would be contingent on that, that I would like to think that we could also be brought back into it at a later date. SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 11 Town Counsel Noordsy-Ifyou approval isn't contingent upon that you depend on the other parties to agree to that. RESOLUTION CONSENTING TO DIVERSION OF CERTAIN PILOT PAYMENTS BY THE COUNTIES OF WARREN AND WASHINGTON INDUSTRIAL DEVELOPMENT AGENCY WITH RESPECT TO A CERTAIN PROJECT TO BE UNDERTAKEN BY TRIBUNE MEDIA SERVICES, INC., ON BEHALF OF ITSELF OR AN ENTITY TO BE FORMED AND AUTHORIZING THE SUPERVISOR TO EXECUTE AND DELIVER A CERTIFICATE IN FURTHERANCE OF SUCH PROJECT RESOLUTION NO.: 308,2007 INTRODUCED BY: Mr. Tim Brewer WHO MOVED ITS ADOPTION SECONDED BY: Mr. Daniel Stec WHEREAS, TRIBUNE MEDIA SERVICES, INC., together with BBL Development Group, in its own name or on behalf of an entity to be formed (collectively, the "Company"), has submitted an application (the "Application") to the Counties of Warren and Washington Industrial Development Agency (the "Agency") requesting the Agency's assistance with a certain project (the "Project") consisting of: (i) the acquisition by the Agency of fee title to or a leasehold or other interest to approximately 6.8 acres of real property located near or adjacent to Luzerne Road in the Town of Queensbury, New York such real property being portions ofTMID No's 309.10-1-82 and 309.10-1-84 (collectively the "Land"), (ii) the construction and equipping on the Land of an approximately 66,000 square feet of office building space and related improvements to be occupied by Tribune Media Services, Inc. (hereinafter referred to collectively as the "Improvements"), and (iii) the acquisition in and around the Improvements of certain items of equipment and other tangible personal property and equipment (the "Equipment" and, collectively with the Land and the Improvements, the "Facility"); and WHEREAS, in connection with the Application, and in furtherance of retaining the Company's 364 local jobs, the Company has requested the Agency's consideration of a deviation from the Agency's Uniform Tax Exemption Policy ("UTEP") to allow for a payment-in-lieu-of-tax agreement ("PILOT Agreement") to utilize a fixed valuation and carry a term of fifteen (15) years to be entered into by the Agency and the Company in connection with the Project (the "PILOT Deviation"); and SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 12 WHEREAS, the Company, in connection with its anticipated certification as a Qualified Empire Zone Enterprise ("QEZE") in the Warren County Empire Zone (the "Zone"), has also requested the Agency's support in establishing PILOT Project and Stabilization Funds in connection with the PILOT Agreement whereby the Agency, in accordance with Section 858(15) of the General Municipal Law and with the consent of the Town, the County of Warren (the "County") and the Queensbury Union free School District (the "School", and collectively with the Town and the County, the "Affected Taxing Jurisdictions"), would receive PILOT Payments from the Company for the first ten (10) PILOT Years in an amount equivalent to full taxes and divert certain negotiated amounts to support Project costs and to be held in trust for distribution to the Affected Taxing Jurisdictions in PILOT years 11 through 15 (collectively, the "PILOT Diversion"); and WHEREAS, in furtherance of the PILOT Diversion, the Company and the Agency have requested the consent of the Town pursuant to and in accordance with General Municipal Law Section 858(15). NOW, THEREFORE, BE IT RESOLVED BY THE TOWN BOARD OF THE TOWN AS FOLLOWS: Section 1. The Town hereby authorizes the Agency and the Company to undertake the PILOT Diversion in connection with the Project, as contemplated herein. Section 2. This authorization is only applicable to the Project as described to the Town at this meeting, and in materials submitted for the Town Board's consideration with regard to this Resolution. Section 3. The Supervisor of the Town is hereby authorized to execute and deliver a consent certificate (the "Certificate"), in the form attached hereto, such Certificate to be delivered to the Agency as evidence of the Town's consent to undertake the PILOT Diversion. Section 4. The Town will not consider any further enhancements or benefits for the Project until the Company has provided a written commitment to proceed with the Proj ect. Section 5. These Resolutions shall take effect immediately. Duly adopted this 19th day of June, 2007, by the following vote: SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 AYES NOES 13 Mr. Sanford, Mr. Strough, Mr. Brewer, Mr. Stec, Mr. Boor None ABSENT: None Analysis of 15 Enhanced PilOT versus Standard PilOT Tribune Media Proposed Construction of Building on 7 Acre Queensbury Parcel Stan atd 1I0t Taxable Assessment 52.700 52,700 52,700 52,700 3,552,700 3,552,700 3,552,700 3,552,700 3,552,700 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 Taxing Body Payments Received 1,104,59 1,148,86 1,194,71 1,242,67 87,112,20 90,593,85 94,217,60 97,983,47 101,891,44 208,810,00 217,140,00 225,820,00 234,850,00 244,230.00 School 92541 962.30 1,000.77 1,04083 72,97246 75,885.67 78,905.47 82,06737 85,335.85 174,860.00 181,860.00 189,140.00 196,70000 204.540.00 Town 0,00 0,00 0,00 0.00 0.00 0,00 0,00 000 0.00 0.00 0.00 0,00 000 0,00 County 179,18 186,56 193.94 201,84 14,139,75 14,708,18 15,312,14 15.916.10 16,55558 33,95000 35280,00 36680,00 38,150.00 39,690.00 Tribune Media Tribune Media/New Entity Pays 1,104.59 1,148.86 1,194.71 1,242.67 87,112.20 90,593.85 94,217.60 97,983.47 101,891.44 208,810.00 217,140.00 225,820.00 234,850.00 244,230.00 Empire Zone Credits 1,104.59 1,148.86 1,194.71 1,242.67 87,112.20 90,593.85 94,217.60 97,983.47 101,89144 208,810.00 0.00 0.00 0.00 0.00 Tribune Media/New Entity Net Pays 0.00 0.00 0.00 0.00 0,00 0.00 000 0.00 0.00 0.00 217,140.00 225,820.00 234,850.00 244,230.00 IDA IDA Receives 1,104.59 1,148.86 1,194.71 1,242.67 87,112.20 90,593.85 94,217.60 97,983.47 101,891.44 208,810,00 0.00 0.00 0.00 0.00 IDA Pays to Taxing Bodies 1,104.59 1,148.86 1,194.71 1,242,67 87,112.20 90,593,85 94,217.60 97,983.47 101,891.44 208,810.00 0.00 0.00 0.00 0.00 IDA Trust 8alance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 PILOT Assessment 10,500,000 10,500,000 10,500,000 10,500,000 10,500,000 10,500,000 10,500,000 10,500,000 10,500,000 0 0 0 0 Taxing Body Payments Received 1,104.59 1,148,86 1,194,71 1,242.67 108.211,92 112,540,39 117,042,01 121,723,69 126,592,64 140,466.25 182,548.36 221,323,03 255,457,44 262,890.52 School 925.41 96230 1,000.77 1040,83 90,647,34 94,269.13 98,02048 101,95131 106,023,54 117,628.12 152,88867 185,37348 213,959.88 220,167.99 Town 000 0.00 000 0.00 0.00 0,00 0.00 000 0.00 000 0.00 0.00 0.00 0.00 County 179.18 186.56 193.94 201.84 17,564.58 18,271,26 19,021.53 19,77238 20,569.10 22,83813 29,659.69 35,949.56 41497.56 42,722.54 Tribune Media Tribune Media/New Entity Pays 210,000.00218,400.00227,136.00236,221.44 245,670.30 255,497.11 265,716.99276,345.67 287,399.50 0.00 0.00 0.00 0.00 0.00 Empire Zone Credits 210,000.00218,400.00227,136.00236,221.44 245,670.30 255,497.11 265,716.99276,345.67 287,399.50 0.00 0.00 0.00 0.00 0.00 Tribune Media/New Entity Net Pays 0,00 0,00 0,00 0,00 0.00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0.00 IDA IDA Receives 210,000.00 218,400.00 227,136.00 236,221.44 245,670.30 255,497.11 265,716.99 276,345.67 287,399.50 0.00 0.00 0.00 0.00 0.00 IDA Pays Special District 25,000.00 26,000,00 27,040.00 28,121.60 29,246.46 30,416.32 31,632.98 32,898.29 34,214.23 Special District paid out of Escrow 35,582.80 37,006.11 38,486.35 40,025.81 41,626.84 IDA Pays to Taxing Bodies 1,104.59 1,148.86 1,194.71 1,242.67 108,211.92 112,540.39 117,042.01 121,723,69 126,592.64 0.00 0.00 0.00 0,00 0.00 IDA Escrow Receives 86,430.84 89,888.04 93,483,61 97,222.87 108,211.92 112,540.39 117,042.01 121,723.69 126,592.64 0.00 0.00 0.00 0.00 0.00 IDA Escrow Interest 3,457.23 7,191.04 11,218,03 15,555.67 20,506.37 25,828.24 31,543.05 37,673.72 44,244.37 38,972.19 31,748.90 22,626.48 11,712.21 IDA Escrow Pays 0 0 0 0 0 0 0 0 0 176,049.04 219,554,47 259,809,39 295,483.24 304,517 ,36 IDA Escrow Balance 86,430.84 179,776.11 280,45076 388,891.66 512,659.25 645,706.01 788,576.26 941,843 1,10&,109.36 974,304.69 793,722.41 565,661.92 292,805.16 0.00 IDA Project Fund Receives 97,464.57 101,363.10 105,417.68 109,634.30 Total of Stream to IDA Project Fund 413,880 Ye.Bf 1 8378% School Tax Rate 0.00% Town Tax rate 1-6.2::2% County Rate 100.00% Total Year 15 17.560 18.260 18.990 19.750 20.540 21,360 22.210 23.100 24.020 24.980 25.980 27.020 28.100 29.220 30.390 83,74% 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.0-0% 3.400 3.540 3.680 3.830 3.980 4.140 4.310 4.480 4,660 4,850 5.040 5.240 5.450 5.670 5.900 18,28% 20.96 21.80 22.67 23.58 24.52 25.50 26.52 27.58 28.68 29.83 31.02 32.26 33.55 34.89 36.29 100.00% Emp. Zone Max 20.00 20.80 21.63 22.50 23.40 24.33 25.31 26.32 27.37 28.47 Parcel Size 2006-07 Assessment Projected 2008-09 Assessment 7 Acres 52,700 $10,500,000 Standard Pilot pavments pass through IDA to tax bodies) Land Assessed only for years 1-5 50% Assessment for years 6-10 100% Assessment for vaars 11-15 Assumes Tax Rates increase 4'% per year Assumes Trust earns 4% interest per year Assumes Empire Zone Credit starts at $20 per thousand and increases by 4% per year Tribune Pilot Chart Increasing Distribution (HBROC-863910 v1) 6/21/2007 detail-2 100,00%1 Analysis of 15 Year Enhanced PILOT versus Standard 10 Year PILOT Time Value of Money - A look at Tax Revenues Received in Year 1 Dollars Standard Pilot Taxing Body Payments Received $1,104.59 $1,148.86 $1,194.71 $1,242.67 $87,112.20 $90,593,85 $94,217.60 $97,983.47 $101,891.44 $208,810.00 $217,140.00 $225,820.00 $234,850.00 $244,230.00 Value of Pa ment as of 2008-09 $1,104.59 $1,104.67 $1,104.58 $1,104.73 $74.463.88 $74,461,54 $74.461.54 $74,459.38 $74,451.07 $146.707.14 $146,692.00 $146,688.37 $146,686.62 $146,678.21 Enhanced Pilot Taxing Body Payments Received $1,104.59 $1,148.86 $1,194.71 $1,242.67 $108,211.92 $112,540.39 $117,042.01 $121,723.69 $126,592.64 $140,466.25 $182,548.36 $221,323.03 $255,457.44 $282,890.52 Value of Pa ment as of 2008-09 $1,104.59 $1,104.67 $1,104.58 $1,104.73 $92,500.00 $92,500.00 $92,500.00 $92,500.00 $92,500.00 $98,689.72 $123,323.13 $143,767.22 $159,557.96 $157,885.24 Assumes 4% discount rate per year Tribune Pilot Chart Increasing Distribution (HBROC-863910 v1) 6/21/2007 analysis-TVM-detail-2 $0.00 $1,607,339,39 $0.00 $1,110,168,31 $0.00 $1,653,487,08 Greater Revenue -$46,148 $0.00 $1,150,141,84 $39,973.53 SPECIAL TOWN BOARD MEETING 06-19-2007 MTG. #27 16 Councilman Strough- Yes, but I am amending my yes with the fact that I want a serious negotiation and my full approval is going to be predicated upon satisfying the concerns of the school. RESOLUTION ADJOURNING TOWN BOARD MEETING RESOLUTION NO. 309.2007 INTRODUCED BY: Mr. Roger Boor WHO MOVED FOR ITS ADOPTION SECONDED BY: Mr. Tim Brewer RESOLVED, that the Town Board of the Town of Queensbury hereby adjourns its Special Town Board Meeting, Duly adopted this 19th day of June, 2007 by the following vote: AYES: Mr, Boor, Mr, Sanford, Mr, Strough, Mr, Brewer, Mr, Stec NOES: None ABSENT: None Respectfully submitted, Miss Darleen M, Dougher Town Clerk-Queensbury