Town of Irondequoit

East Irondequoit Central School District

County of Monroe Industrial Development Agency

MARCH 2009

Summary of the New Medley Centre

Pilot Agreement

Summary of the New Medley Centre

Pilot AgreementImportant Information

The proposed payment in-lieu-of-tax agreement which is summarized in this Summary, including without limitation the proposed PILOT Increment Financing set forth in that agreement, is being considered by the County of Monroe Industrial Development Agency(COMIDA) at the request of the developer, the Town of Irondequoit and the East Irondequoit Central School District under SpecialPrograms as adopted in COMIDA’s Uniform Tax Exemption Policy.

This PowerPoint presentation is intended only to provide a brief, non-binding and non-legal explanation of certain terms and conditions of the proposed payment in-lieu-of tax agreement to be entered into by and between the developer and COMIDA with respect to that proposed redevelopment project for the Medley Centre site in the Town of Irondequoit, New York. This PowerPoint presentation does not set out all of the relevant terms and conditions of that agreement and reference should be made to the full document for that purpose. While this PowerPoint presentation should assist the public in understanding the significant changes to the existing PILOT Agreement that have been negotiated, it is not a legal document and the proposed payment in-lieu-of-tax agreement which is summarized in this PowerPoint presentation will be interpreted and implemented in accordance with and pursuant to its terms.

Medley Centre History

� Former Irondequoit Mall� Opened In 90’s

� Initially Strong Sales

� Decline by Mid 90’s

� 2005 Purchase by Bersin Properties� Renamed Medley Centre

� 2005 PILOT Agreement

� Still in Effect At This Time

� Empire Zone Designation

Medley Centre Revitalization Plans

� Mixed Use Destination

� Community-Like Development

� Office, Hotel, Retail, Entertainment, and Residential

� $260,000,000 and 350,000 Square Feet of Development Planned Within 4-6 years

� Live-Work-Play Environment

� May Reposition Irondequoit as “Destination”

� May Expand Tax Base

� New Housing Opportunities

GOALS FOR THE NEW MEDLEY CENTRE PILOT

� Town and District Revenues Not Reduced

� Predictable Future Revenue Stream

� Predictable Increases In Future Revenue

� Opportunity to Participate in Success of the Development

� Measurable Milestones

Properties Included

�All Existing Medley Properties

�Several Adjoining Properties

�Possible Additions

�Bordering the Existing Mall

Relocation of Existing Tenants

Components of PILOT Payments

� Types of Pilot Payments� Annual Payments

� Base Amount

� Current Payments• Plus Current Payments from Added Parcels

• Initially Approximately $323,000 /Year

� Will Increase at 5%/Year

� Net present Value Paid at Ist Permanent Financing

� Increment Amount

� Difference Between the Base Amount and the Taxes That Would Be Paid on If Full Assessed Value Were On The Tax Roles• Includes All Future Improvements

• Used To Fund Development

Components of PILOT Payments (cont.)

� Participation Payments� Unique to New Medley PILOT

� Wanted To Participate In the Success of the Project

� Estimated Assessments in Years 21-30 of PILOT Agreement

� 2.7% of All New Permanent Financing

� Paid at Time of Financing

� Supplemental Payments� Enforcement Payments Made For Missing Milestones

� Failure to Meet Milestone Within 90 Days of Target

� Failure to Meet Milestone After 91 Days Target

Components of PILOT Payments (cont.)

� Other PILOT Payments� $100,000 To School District to Defray Costs of Agreement

� $250,000 To Town when PILOT Goes Into Effect

� $250,000 To Town at Ist Building Permit

� $500,000 Within 1 Year After PILOT Goes Into Effect

� Payments Reflect Repayment of Incremental Costs of the District and the Town By Developer

Development Milestones

� Important To Target and Measure Development Progress

� Three Milestone Measurement Periods

� 2 Years After The New PILOT

� $90,000,000 of Investment

� 3 Years After The New PILOT

� $165,000,000 of Investment

� 4 years After The New PILOT

� Investment Goal: $260,000,000

� Additional Improvement Goal: 350,000 Square Feet

� Milestone Dates May Be Delayed Up to 2 Years Due to Market Conditions or Litigation Preventing the Developer from Proceeding

Development Milestones Enforcement

� Supplemental Payments

� Desire for the Site to be Developed Promptly

� Consequences of Missing Milestone

� Two Types of Supplemental Payments

� A Milestone Miss 0-90 Days of Target

� Multiple of % Missed Times Base Amount

� Multipliers Are 3x, The Percentage Short Fall For Each of The 1st, 2nd & 3rd Milestones

� A Milestone Miss of 91 Days Plus

� 5x, 7.5x, & 10x Base Amounts For 1st, 2nd & 3rd Milestones Respectively

Job Creation Milestones

� Baseline Jobs: 2 Full Time

� Job Creation by the Anniversary Date� 4th -150 with 50 Full Time

� 5th- 300 with 100 Full Time

� 6th- 600 with 200 Full Time

� 7th- 900 with 300 Full Time

� 8th- 1000 with 400 Full Time

� 9th- 1100 with 500 Full Time

� 10th- 1200 with 500 Full Time

� Local Labor Requirements

Additional Points

� Term of Agreement� Existing PILOT to 12/31/20

� New Term the Same Except at Permanent Financing the Term Will Continue 30 Years From Date of Financing

� Risk of Developer Default and Underpayment of PILOT Payments Reduced by Prepayments Early in Agreement Timeline

� Allocation of Base Payments, Participation Payments, and Supplemental Payments Divided Among the Taxing Jurisdiction In Proportion to Their Tax Rates