St. Lawrence County Industrial Development Agency Ernest J. LaBaff Industrial Building ~ 19 Commerce Lane, Suite 1 ~ Canton, New York 13617 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: Hoosier Magnetics, Inc 110 Denny Street Ogdensburg, New York 13669 08/08/2013 10/24/2013 10/28/2013 Project Overview: Hoosier Magnetics, Inc. located at 110 Denny Street, Ogdensburg, produces ferrite powder which is the major raw material for permanent magnets. The magnets power many appliances around us. Hoosier has become a global supplier to the low energy ferrite markets and has customers in Europe, Asia, South American and the U.S. The Company has requested that the St. Lawrence County Industrial Development Agency provide a Sales and Use Tax Exemption and Real Property Tax Abatement for the Company’s new Employee and Maintenance Facility. The cost of the new project will be $100,000. This new Employee and Maintenance Facility is a property improvement that will help with the maintenance staff efficiency and employee morale. The project will also improve the overall appearance of the plant. Actions Taken: St. Lawrence County IDA Sales & Use Tax Exemption ............................................................. Not to Exceed $10,000 Real Property Tax Abatement…………………………………………………………………………………..……….$27,605 Economic Enhancement Training Fund ................................................................................................................$5,000 Economic Indicators: Jobs Maintained and Generated: This project is expected to retain approximately 30 FT jobs and create 2 FT jobs with in a three-year period. Improved Corporate Performance: This project will result in improved corporate performance through the improved and enhanced maintenance staff efficiency and employee morale of Hoosier Magnetics. See attached Cost-Benefit Analysis ***FOR AGENCY USE ONLY*** COST/BENEFIT ANALYSIS (As required by Section 869-A3 of New York General Municipal Law) Project Applicant: Hoosier Magnetics, Inc. 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: 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) 0.75% $0 Ogdensburg City $100,000 $1,428,284 $1,498,284 100.00% $70,000 $52.58 $36,806 a. Total Estimated Interest Expense (assuming taxable interest) b. Total Estimated Interest Expense (assuming tax exempt interest rate) TOTAL ESTIMATED EXEMPTIONS Comments: PAYROLL COMPARISON: Double click on chart to enter data Total Payroll Total Payroll Total Payroll Total Payroll 1st Year after 2nd Year after 3rd Year after Project Project Project Before Project Completion Completion Completion $1,591,051 $1,665,349 $1,674,501 $1,674,501 ESTIMATED OTHER BENEFITS: $9,202 $27,605 4. Interest Exemption (Bond Only ) c. Interest Exemption (a – b) Full Time Part Time Seasonal Total: Current Jobs 30 0 0 30 Post-Project Employment Total New Jobs 2 0 0 2 0 0 0 0 0 0 0 0 2 0 0 2 Created Year 3 $74,000 8% $5,920 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 $33,525 Sales Tax Revenue If the project will result in the manufacturing or 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”. $ 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”. $3,680 What other benefits will the Project bring to the community and region?