4.16 REVISED 4.16
SUPPORT Warren Washington IDA—Afrim Sports—Adirondack Dome—Support Payment in Lieu Taxes PILOT—5-6-2024
RESOLUTION SUPPORTING COUNTIES OF WARREN AND
WASHINGTON INDUSTRIAL DEVELOPMENT AGENCY (WWIDA)
DECISION TO DEVIATE FROM ITS TAX EXEMPTION POLICY IN
REFERENCE TO THE APPLICATION OF AFRIM SPORTS-326
SHERMAN AVENUE ASSOCIATES LLC FOR PURCHASE AND
DEVELOPMENT OF ADIRONDACK SPORTS COMPLEX (DOME)
RESOLUTION NO.: ,2024
INTRODUCED BY:
WHO MOVED ITS ADOPTION •
SECONDED BY:
WHEREAS, Afrim Sports — 326 Sherman Avenue Associates, LLC (Afrim) seeks to
purchase and improve the Adirondack Sports Complex (Dome) in the Town and has made
application to the Counties of Warren and Washington Industrial Development Agency
(WWIDA)for certain tax abatement, and
WHEREAS, if approved, Afrim's application to WWIDA would constitute a deviation
from WWIDA's Uniform Tax Exemption Policy, and
WHEREAS, under the WWIDA Uniform Tax Exemption Policy, deviations may be
approved where special circumstances are present and with certain other approvals, including in
this case;the approval of the Town of Queensbury, and
WHEREAS, WWIDA has provided the Town with a Memorandum dated April 10, 2024
with proposed PILOT schedule for the Town Board's review and consideration,and
WHEREAS, the Town has reviewed all information provided and it appears that Afrim's
proposal presents special circumstances sufficient to warrant WWIDA's deviation from its
Uniform Tax Exemption Policy,
NOW,THEREFORE,BE IT
RESOLVED, that the Queensbury Town.Board hereby expresses its support of WWIDA's
decision to provide financial assistance via investment incentives to Afrim consistent with
WWIDA's April 10,2024 Memorandum,and
BE IT FURTHER,
RESOLVED, that the. Town Board further approves of the proposed deviation from the
WWIDA's Uniform Tax Exemption Policy that the application proposes, and
BE IT FURTHER
RESOLVED, that the Town Board hereby authorizes and directs the Town Clerk to send a
certified copy of this Resolution to the WWIDA at 5 Warren Street Glens Falls,NY 12801,and
BE IT FURTHER,
RESOLVED, that the Town Board further authorizes and directs the Town Supervisor,
Deputy Town Supervisor, Town Counsel and/or Town Clerk to take such other and further actions
as may be necessary to effectuate the terms of this Resolution.
Duly adopted this 6th day of May,2024,by the following vote:
AYES :
NOES :
ABSENT:
2
AFRIM SPORTS—326 Sherman Avenue Associates LLC Application For The
ADIRONDACK SPORTS COMPLEX (The "Dome") Project For Benefits From The
WARREN & WASHINGTON INDUSTRIAL DEVELOPMENT AGENCY
From: Chuck Barton, Chief Executive Officer4*e ' As�h�ngton
IDA
Date: April 10, 2024 Promoting Local Investment
The purpose of this memorandum is to set forth the facts and considerations utilized by the
Counties of Warren and Washington Industrial Development Agency ("WWIDA") in
rendering a decision to provide financial assistance via investment incentives to Afrim Sports
— 326 Sherman Avenue Associates LLC (Afrim) for the purchase and further development
of the Adirondack Sports Complex (Dome)in Queensbury,NY. This is a multi-sport facility
on a 19.4-acre site with 108,000 square feet of climate-controlled indoor space and over nine
acres of outdoor sports fields. The original facility was built in 2004. It is owned by M&C
Ventures LLC and operated by Adirondack Sports Complex LLC, led by Doug and Teresa
Miller, who have recently announced interest in retiring.
This document recognizes several factors considered by the WWIDA and is intended to
provide a concise record of the issues considered as well as the justification for the
investment incentive package,if offered by the WWIDA Board. Please note this is a unique
application with the request of property tax exemption from not only incremental property
improvements but ALSO base property taxes. This will be a Deviation from WWIDA's
Uniform Tax Exemption Policy and require formal approval from the Town of Queensbury.
COMPANY DESRIPTION
Afrim Sports mission is to "Grow and improve sports in our community by providing state
of the art facilities, first class youth programing, and competitive leagues for all ages and skill
levels."
The business has locations in Albany, Bethlehem/Glenmont, Colonie, Latham, and
Malta/Mechanicville with turfed indoor facilities serving as the home for many clubs,
colleges, and leagues. All facilities have synthetic turf fields, tiered seating for fans, and
comprehensive concession stands.The newest location,Afrim's Sports Park in Colonic,NY,
includes four outdoor turf fields, a domed field, and the Tavern on the Turf restaurant.
The facilities provide soccer, lacrosse, field hockey, flag-football, softball, baseball, and
fitness for people of all ages. Practices,games, tournaments,youth programs,and camps are
offered year-round. Afrim Sports employs over 75 part- and full-time employees as coaches,
referees, office staff, maintenance/field crews, and facility staff at its combined facilities.
Many people are graduates from local high schools and colleges.
PROJECT DESCRIPTION
The Dome is located at 326 Sherman Avenue, Queensbury, NY. The Lot Tax ID is 309.5-
1-3.11. Various site images are below.
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Page 2
Afrims Sports intends to enhance the Queensbury facility and programs with several
initiatives:
• Convert one outdoor grass fields into a turf field, allowing for an extended period of
use during the year and a better-quality playing surface,attracting local school and club
sports teams who want to practice in conditions that their own facilities cannot
provide.
• Replace the batting cages within the Dome with an additional basketball/volleyball
court,which will draw an estimated additional 250 visitors a week.
• Add 100 parking spaces to accommodate the greater site use.
• Introduce the youth program, "Soccer Kidz", proven in the Capital District for
children ages 2-9. This is expected to increase youth participation by 650-900.
• Add four soccer tournaments (and continue to host 16 softball tournaments) annually.
• Increase custom merchandise sales by approximately $50,000 annually.
• Increase food and drink sales by approximately$40,000 annually.
• Hire 8-10 full-time equivalents (up from the three individuals currently working at the
Dome). This equivalent hiring includes seasonal and part-time employees during
tournaments and the summer season.
The Afrim Sports estimated total project investment is $3,385,000. The land, building and
asset acquisition cost is $2,185,000 and targeted for mid-2024. The direct site investment
will be —$1,100,000 for the outdoor turf field, parking lot, facility renovations, and
equipment. Material cost will be —$600,000 with half sourced in New York State.
Construction labor costs will be —$500,000. Construction is expected to be completed within
two years.
•
Financing for the project will be finalized with Afrim Sports established local banking
institution and a US Small Business Administration loan. Afrim recognizes the investment
incentives are contingent upon the financing approval.
Pap_3_�._.._..-_....._.... _- ___
REGIONAL MARKET and ECONOMIC IMPACT
An Economic Impact Analysis of the Dome project was provided by Sciocchetti Taber
PLLC. The analysis was based on public information sources and Afrim Sports' experience.
NASA's SEDAC Population Estimation Service shows that the region around the Dome is
a well-populated,primarily suburban market.The market of potential participants using drive
times from the Dome demonstrates that the facility will have a large local and sub-regional
population base to draw from, which will be capable of supporting the updated facility.
Populations within 15-, 30-, and 60-minutes driving are 80,157, 182,741, and 752,835,
respectively.
Median household incomes levels within a 60-minute drive are higher than the national
average. This is a favorable indicator that the local and sub-regional base will be able to
afford fair-market rates to use the fields and participate in programs.
The study explains, "In order to further understand the opportunity to draw non-local
visitors for tournaments and events,we must examine the regional market (within 250 miles,
or roughly four hours driving) to analyze the number of players in the region....Regionally,
there are nearly 2,500,000 soccer players -more than enough to support the additional
tournaments planned.....at the Dome and the assumption that such tournaments will draw
a high percentage of non-local teams." (The report realistically notes that not all participants
play soccer at a competitive level.)
The study further explains, "The primary driver of increased economic impact is the
addition of four major regional soccer tournaments, which draw non-local visitors
who stay in hotel rooms and buy meals in the local market. ...Typically, about 70% of
tournament attendees are non-local visitors, meaning each tournament would attract over
1,176 non-local visitors to the area. With four new tournaments planned, this means that
Queensbury will receive over 4,704 new non-local visitors for the period of the tournament
each year....Based on the Afrim Sports' experience and data available from similar markets,
it can be expected that non-local visitors will stay in hotels for two nights at each tournament,
with an average of three people sleeping in each room, generating an additional 3,136
hotel room nights per year."
The study continues to explain,"...each non-local visitor is projected to spend $173.60 per
day based on local market data and reasonable estimates. Each person will spend $72.67 per
day on lodging (based on an average daily rate of$218 [based on seven nearest hotel chains]
and three people per room) and over $100 per day on dining/groceries, transportation,
entertainment/attractions, retail, and other miscellaneous expenses in the local
market......the additional soccer tournaments held by...the Dome will generate 9,408 non-
local visitor days, and each non-local visitor will spend approximately $173.60 per day, for a
total direct [non-local visitor] spending figure of$1,633,228 per year."
Page 4 — _
Furthermore, the report estimates that non-local visitor activity generates over$75,000
in Sales and Occupancy taxes and facilitates over $700,000 of Indirect/Induced
Spending.
ANALYSIS OF PILOT AND ABATEMENT REQUEST
The ADK Dome project consists of a facility that will be primarily used in making sales of
goods and services to customers who personally visit the site. This retail activity includes
non-regional visitors for tournaments and other activities. Furthermore, the Dome is a
unique recreational facility that is enclosed and operates year-round. There is no similar
facility in Warren and Washington counties. The closest dome-type facility is in the Albany
area. The uniqueness of the facility along with the attraction of non-regional visitors qualifies
the project for WWIDA investment incentives.
The investment incentives requested for the Project are the following:
1. Property tax incentives in the form of a PILOT. Afrim Sports is applying for a
deviation from the WWIDA's Uniform Tax Exemption Policy requiring Town of
Queensbury approval. The PILOT schedule proposes pre-determined annual tax
payments to the taxing jurisdictions as follows: $5,000 in years 1-3, $10,000 in years
4-5, $15,000 in years 6-7, $20,000 in years 8-9, and $25,000 in year 10. Said payments
are to be made to the taxing jurisdictions based on a pro-rata basis based on current
tax rates. This totals $130,000 over ten years versus an estimate of$364,540 based on
payments calculated on the current tax rates and assessed values, without escalation.
The estimated property tax benefit is $234,540 over 10 years. (See Incentive
Estimation in the Appendix.)
2. State and County sales tax abatement totaling 7%based on up to $575,000 subject
to sales tax. The WWIDA calculates this estimated benefit at $40,250.
3. Mortgage tax abatement of 1.25% from an estimated non-SBA financing loan of
$1,117,500. The WWIDA calculates this estimated benefit at $13,969.
The proposed total investment incentives for Afrim Sports before administrative fees is
estimated at $288,759. The application states, "The Adirondack Dome is an existing
operation that was unable to operate successfully by the prior owner and has been operating
at a loss. In order for [Afrim] to be successful in its operation of the facility it must control
the initial overhead costs and expenses, enabling it to invest revenues back into the operation
—creating more programs, leagues, events, and tournaments. Without the Agency providing
the Financial Assistance the Applicant would not be able to control the Project Costs and
Operating Expenses to the extent that the Project Proforma is sufficient enough to secure
the Project Financing."
— — -- Page 5 -- — — — —
COMMUNITY AND ECONOMIC IMPACTS:
Specific community and economic benefits of the Project include:
1. Support the regional sports and recreational services for people of all ages.
2. Generate an estimated 4-5 construction jobs with 50%of construction materials
at —$300,000 value sourced in Warren County.
3. Support an estimated 8 Full-Time Equivalent employment positions with
estimated total annual wages and benefits of$250,000 (includes part-time hourly wage
positions). Three position retained and five positions added.
4. Generate non-local visitor spending of at least $800,000 per year. The addition
of four major regional soccer tournaments is estimated by the applicant to annually
attract 4,704 new non-local visitors, generating an additional 3,136 hotel room nights,
and generating direct non-local visitor spending of $1,633,228. This estimate is
conservatively factored by 50%.
5. Generate non-local visitor Sales and Occupancy Taxes of at least $37,000 per
year. This estimate, based on the non-local visitor activity mentioned above, is
conservatively factored by 50%.
6. Generate additional Sales Tax of $7,000 per year from Dome merchandise and
food sales.
7. Generate estimated PILOT payments of$130,000 over ten years.
8. Generate Community Cost Benefit Ratio estimated at 1 to 40 over the ten years.
The estimated "cost" of all State, County, and Town incentives is $288,759. The
estimated "benefits" to the community is $11.5 million. The Community Net Benefit
estimated is $11.2 million over ten years before any net present value adjustment. (See
Cost Benefit Analysis in the Appendix.)
9. The net present value adjusted Community Net Benefit is $8.8 million over ten
years at a 4% net present value rate each year. (See Cost Benefit Analysis in the
Appendix.)
In conclusion, approving the Afrim Sports application would enable the acquisition and
improvement of the Adirondack Dome recreational service and be in the economic -and
community interests of the residents of Warren and Washington Counties.
Page 6
•
' IDA
IdIin-
Promoting Local Investment
5 Warren Street, Glens Falls, NY 12801
IDA Project Applicant: Afrim Sports —326 Sherman Avenue Associates LLC
Project Name: Afrim's Adirondack Sports Complex (the "Dome")
Project Type: Sports and Recreation
Project Street Location: 326 Sherman Avenue
Project Municipality: Town of Queensbury
Parcel Identification: 309.5-1-3.11
Project Description: Site Acquisition and Improvements
Total Project Investment: $3,385,000
Project Material Terms: $1,100,000 (new turf field, expand parking lot, and renovations)
IDA Benefits Provided: Mortgage Exemption (excluding SBA loan),
Sales and Use Tax Exemption, and
PILOT
Community Benefits: a. Support regional sports and recreational services.
(over ten years) b. Support at local construction activity
c. Support at least 8 Full-Time Equivalent jobs.
d. Generate over $800,000 annually non-local visitor spending
e. Generate over $37,000 annually Sales & Occupancy Tax
f. Generate over $7,000 annually in Dome Sales Tax
g. Generate PILOT payments of$130K.
h. Community Cost Benefit Ratio: 1 to 40
i. Net Community Benefit: $8.8M (NPV @ 4%).
_.__-_— - - _ - - Page. __-. - - - -
i
AFRIM SPORTS ADK DOME INCENTIVES ESTIMATION
CUSTOM INCENTIVE PACKAGE Requiring Special Approval 04 03 2024
Est.Incr. Estimated 2024 County 2024 Town 2023-24
Base Value Construction$ New Tax Rate/ Tax Rate/ Village Tax School Tax
309.5-1-3.11 Value@ 50% Assessed 1000 1000 Rate/1000 rate/1000
$1,188,200 $550,000 $1,738,200 $3.85900 $0.82100 $0.00000 $1629229
18.40% 3.91% 0.00% 77.68% BASE&
INCREM.
COUNTY VILLAGE SCHOOL FULL ESTIMATED
PILOT TOWN PILOT PILOT PILOT PAYMENT NET
PILOT YEAR %PAYMENT AMOUNT AMOUNT AMOUNT AMOUNT TOTAL PILOT W/O PILOT EXEMPTION
1 14% $920 $196 $0 $3,884 $5,000 $36,454 $31,454
2 14% $920 $196 $0 $3,884 $5,000 $36,454 $31,454
3 14% $920 $196 $0 $3,884 $5,000 $36,454 $31,454
4 27% $1,840 $391 $0 $7,768 ,$10,000 $36,454 $26,454
5 27% $1,840 $391 $0 $7,768 $10,000 $36,454 $26,454
6 41% $2,760 $587 $0 $11,653 $15,000 .; $36,454 $21,454
7 41% $2,760 $587 $0 $11,653 $15,000 $36,454 $21,454
8 55% $3,680 $783 $0 $15,537 $20,000 $36,454 $16,454
9 55% $3,680 $783 $0 $15,537 $20,000 $36,454 $16,454
10 69% $4,600 $979 $D $19,421 $25,000 $36,454 $11,454
Totals $23,921 $5,089 $0 $100,990 $130,000 $364,540 $234,540
BASE&INCREMENTAL
FULL ANNUAL PAYMENT $6,708 $1,427 $0 $28,319 ====> $36,454
Estimated Tax Exemptions: Estimated Cost Benefit Ratio: I have read and reviewed the Section V
Assumption information completed by the WWIDA.
Property $234,540
Sales&Use 7% $40,250 : $575,000. Estimated Total Project Cost $3,385,000 Name:
Mortgage 1.25% $13,969 $1,117,500 Gross Benefit All Incentives $288,759
Gross Benefit $288,759 Benefit/Cost Ratio 8.53% Signature:
IDA Fee 0.9% ($30,465) $3,385,000
IDA Legal Est. ($12,000)
Net Benefit $246,294 Date: