St. Lawrence County Industrial Development Agency
Human Services Center
80 State Highway 310 Suite 6, Canton, New York 13617-1496
Phone: (315) 379-9806 Fax: (315) 386-2573
Patrick J. Kelly
Chief Executive Officer
PROJECT ACTIVITY REPORT
Project:
Project Address:
Application Date:
Board Approval Date:
Financing Date:
Affinity Potsdam Cottages
204, 206 & 208 Main Street
Potsdam, NY 13676
June 8, 2012
December 11, 2012
December 21, 2012
Project Overview:
Affinity Potsdam Cottages is a Limited Liability Company headquartered in Buffalo, New York. The Company applied
to the St. Lawrence County Industrial Development Agency for financial assistance to construct up to 50 residential
buildings containing up to 100 units of student housing to be operated by the Company as a for-rent commercial
student housing facility.
The Company requested assistance from the St. Lawrence County Industrial Development Agency in the form of
sales and use tax exemptions with respect to the qualifying personal property; a mortgage recording tax exemption
on the property, and a Payment in Lieu of Taxes (“PILOT”) agreement. The PILOT, deviating from the Agency’s
standard tax exemption policy, required the consent of the local affected taxing jurisdictions.
Actions Taken:
The St. Lawrence County Industrial Development Agency accepted the Company’s application, authorized the
issuance of deviation notices to the local affected taxing jurisdictions, and authorized the holding of a public hearing.
A public hearing on the project was held July 5, 2012.
The project has not received the consent of the local affected taxing jurisdictions necessary to receive a Payment In
Lieu of Taxes Agreement under the terms of the SLCIDA’s Uniform Tax Exemption Policy.
On December 11, 2012 the SLCIDA approved exemptions in the form of Sales and Use Tax Exemption and
Mortgage Recording Tax exemptions.
Economic Indicators:
See Cost-Benefit Analysis, next page.
FOR AGENCY USE ONLY
COST/BENEFIT ANALYSIS: As required by Section 869-A3 of New York General Municipal Law.
Estimated COST of Agency Assistance:
Estimated BENEFIT of Agency Assistance:
ESTIMATED EXEMPTIONS:
EMPLOYMENT COMPARISON:
Do not include construction jobs relating to the Project.
Double click on chart to enter data
Pre-Project
Employment
2. Mortgage Recording Tax Exemption
a. Projected Amount of Mortgage:
Mortgage Recording Tax Rate:
b. Estimated Exemption:
$15,000,000
0.75%
$112,500
3. Real Property Tax Exemption
Property Location:
a. Investment in Real Property
(Total Project Cost):
b. Pre-project assessment:
c. Projected post-project assessment
d. Equalization Rate (for reference only)
e. Increase in Assessed Value of Property
f. Total Applicable Tax Rates per $1,000
g. Ten Year Total Taxes (e X f X 10)
h. PILOT Payments with Standard IDA Pilot
(g X .25)
i. Net Exemption Amount (g - h)
PAYROLL COMPARISON:
Double click on chart to enter data
Total Payroll Total Payroll Total Payroll
Total Payroll
1st Year
2nd Year
3rd Year
Before
after Project after Project after Project
Completion Completion Completion
Project
Total New
Payroll
$0
$0 $140,000
$0
ESTIMATED OTHER BENEFITS:
$0
$0
Sales Tax Revenue
If the project will result in the manufacturing of selling of
a new product, estimate the amount of annual sales
taxes that will be generated on retail sales of the new
product. Otherwise, enter “N/A”. $
4. Interest Exemption (Bond Only )
a. Total Estimated Interest Expense
(assuming taxable interest)
b. Total Estimated Interest Expense
(assuming tax exempt interest rate)
c. Interest Exemption (a – b)
TOTAL ESTIMATED EXEMPTION
Full Time
Part Time
Seasonal
Total:
Current
Jobs
0
0
0
0
Post-Project Employment
Total
New
Jobs
4
1
1
6
0
0
4
1
1
6
Created
Year 3
$5,600,000
7%
$392,000
Created
Year 2
a. Amount of Project Cost Subject to Tax:
Sales and Use Tax Rate:
b. Estimated Exemption:
Created
Year 1
Double click chart to enter data
1. Sales and Use Tax Exemption
$0.00
$504,500
$200,000 $200,000 $540,000
If the Project will result in increased production or sales
of an existing product, estimate the amount of annual
sales tax that will be generated on the retail sales of the
increased production. Otherwise, enter “N/A”. $
Real Property Taxes
Estimate the amount of annual real property taxes that
will be payable on the Project (at the end of the PILOT
Agreement, if any). Otherwise, enter “N/A”. $280,500
What other benefits will the Project bring to the community
and region? New modern housing option to assist the
community in remaining competitive in attracting
students.