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?