Stallion Inc. - Good Jobs New York

BUILD NYC RESOURCE CORPORATION
PROJECT COST/BENEFIT ANALYSIS
April 9, 2015
APPLICANT
Stallion Inc.
36-08 34th Street (a/k/a 36-20 34th Street)
Long Island City, New York 11106
PROJECT LOCATION
36-08 34th Street (a/k/a 36-20 34th Street)
Long Island City, New York 11106
A. Project Description:
Stallion Inc. and its affiliated real estate holding company, IPA 34th Street LLC (the
“Company”), is a New York corporation that is a manufacturer, wholesaler, and distributor of fur
apparel and fashion accessories.
The Company is seeking approval for the issuance of approximately $7,220,000 in taxexempt revenue bonds and approximately $670,000 in taxable revenue bonds. Proceeds from
the tax-exempt bonds, will be used to: (i) refund the approximately $6,065,000 outstanding
amount of the New York City Industrial Development Agency Industrial Development
Revenue Bonds, Series 2007 A and B (Stallion, Inc. Project), which were issued in the
original principal amount of $7,000,000 and the proceeds of which were used for the
acquisition, improvement and equipping of an approximately 30,000 square foot
manufacturing and distribution facility located on an approximately 15,450 square foot
parcel of land located at 36-08 34th Street (a/k/a 36-20 34th Street), in the Long Island City
section of Queens (the “Facility”), (ii) refund the approximately $1,155,000 outstanding
amount of the New York City Industrial Development Agency Industrial Development
Revenue Bonds, Series 2007 C and D (Stallion, Inc. Project), which were issued in the
original principal amount of $1,530,000 and the proceeds of which were used to make
additional improvements and renovations to the Facility. Proceeds from the taxable bonds
will be used to pay certain costs related to the issuance of the bonds. The Facility is owned
by IPA 34th Street LLC and leased to and operated by Stallion Inc.
B. Costs to City (New York City taxes to be exempted):
Mortgage Recording Tax Benefit:
Estimated NYC Forgone Income Tax on Bond Interest:
(estimated NPV 25 years @ 6.25%)*
Total Cost to NYC
$
128,213
$
39,709
167,922
*The exact amount of personal income tax revenue that will be lost as a result of this transaction depends on factors
including (but not limited to) the percentage of bond bought by entities subject to New York City personal income
taxes, the interest income generated from the bonds and the tax rate applied to bond purchasers.
C. Benefit to City (Estimated NYC direct and indirect taxes to be
generated by Company) (estimated NPV 25 years @ 6.25%):
$4,530,616
Core Application - Project Information
Background
The Borrower, a New York corporation, is a manufacturer, wholesaler and distributor of fur apparel and fashion accessories. The Borrower’s operations
are focused on a single industry, fur retailing through the operation of retail stores and wholesaling.
Retail operations comprise approximately 85% of the Borrower’s total net sales with wholesale operations accounting for the remaining 15%. Stallion
retails its fur products through the trade name Dennis Basso, which is a multinational brand synonymous with luxury fur. Stallion also provides its retail
customers a program of fur services, including cleaning, storage, repair, and restyling.
The Borrower’s offices are located at 36-20 34th Street, Long Island City, NY 11106. IPA 34th Street LLC (“IPA”), an affiliate of the Borrower, currently
owns the property and leases it to the Borrower.
Proposed Project Activities
Please provide answers to the following four questions on a separate page.
1. Please provide a brief overview of the entire proposed Project. If necessary, break down by tax lot to describe activities at each
Project Location. – Refunding of NYC IDA Series 2007ABC&D Bonds and related COI
2. Please provide a brief description of how the proposed Project will affect current operations. – Annual Interest Savings
3. Please provide a brief description of renovations/construction of the proposed Project.- NONE
4. Please provide a brief timeline for the entire proposed Project. – Subject to NYC approval. Investor has already provided Term Sheet.
Project Financing
Amounts provided should be aggregates for all Project Locations. –
Sources of Funds
(If needed use an additional sheet to indicate all sources and uses)
Uses of Funds
Bond
Proceeds
Commercial
Financing
(Loan 1)
Commercial
Financing
(Loan 2)
Affiliate/
Employee
Loans
Capital
Campaign
Company
Funds
Other
(Identify):
Total Uses
Land & Building
Acquisition
Construction Hard
Costs
Construction Soft
Costs
Fixed Tenant
Improvements
Furnishings &
Equipment
Debt Service
Reserve Fund
Capitalized Interest
Costs of Issuance
Fees (explain):
Other (explain)
Refinancing
7,800,000
7,800,000
Total Sources
7,800,000
7,800,000
Operating Pro Forma (for NYCIDA applicants only)
Please provide an operating pro forma or other financial analysis demonstrating how NYCIDA assistance is needed in order to make the Project feasible.
2
Core Application - Proposed Project Packet (2 of 2)
Please complete Proposed Project Packet for EACH Project Location
Employment Information
The following information will be used as part of the Agency’s calculation of the benefit of the Project, and as a basis for the comparison with the
employment information that the Applicant will be required to report on an annual basis for the term of the Project Agreement.
For all responses below, please note that part-time employees work an average of between 17.5 and 35 hours per week, and full-time employees
work 35 hours or more per week. Hourly wages should represent the pay rate and are exclusive of overtime. For any salaried employees,
please divide the annual salary by 1,820 (working hours per year) to produce an hourly wage. Wage information should exclude principals.
1. Anticipated Facility Operations Start Date at Project Location: 2007
2. Regarding employees the Applicant employed throughout New York City as of the last pay period:
Number of part-time employees: 0
Number of full-time employees: 44
3. Regarding employment if Applicant currently occupies and operates at the Project Location:
Hourly wage of lowest compensated part-time employee: n/a
Hourly wage of lowest compensated full-time employee: 11.50
Number of part-time employees: 0
Number of full-time employees: 44
4. Regarding employees the Applicant expects to employ throughout New York City on the Facility Operations Start Date:
Number of part-time employees: 0
Number of full-time employees: 44
How many of these employees are expected to be relocated to the Project Location on or about the Facility Operations Start Date?
Number of part-time employees: 0
Number of full-time employees: 0
5. Regarding all employees at the Project Location on the Facility Operations Start Date:
Average hourly wage per part-time employee: n/a
Average hourly wage per full-time employee: 17.85
Hourly wage of highest compensated part-time employee: n/a
Hourly wage of highest compensated full-time employee: 31.15
Hourly wage of lowest compensated part-time employee: n/a
Hourly wage of lowest compensated full-time employee: 11.50
Number of part-time employees: 0
Number of full-time employees: 44
6. Estimated New-growth Employment. Complete the following chart to indicate the number of new employees that are expected to be hired at the
Project Location in each year. Note: Year 1 is the year following the Facility Operations Start Date; Year 2 is the second year following that date;
Year 3 is the third, etc.
Years following
Facility Operations
Start Date
1
2
3
4
5
6
Total New
Growth
7
Permanent Full-time
0
0
0
0
0
0
0
0
Permanent Part-time
0
0
0
0
0
0
0
0
Wage and Benefits Information
7.
For all new employees at the Project Location (again, excluding Principals) expected to be hired during the three-year period following
the Facility Operations Start Date, please project the following:
Average hourly wage per part-time employee: n/a
Average hourly wage per full-time employee: N/A
Hourly wage of lowest compensated part-time employee: n/a
Hourly wage of lowest compensated full-time employee: N/A
8.
Generally describe all other forms of compensation and benefits that Permanent Employees will receive. Examples: healthcare, employercontributions for retirement plans, on-the-job training, reimbursement for educational expenses, etc. healthcare
9.
Please indicate whether the Applicant or any of its Affiliates will be required to provide health coverage to its employees pursuant to the federal
Patient Protection and Affordable Care Act (the “Act”). If yes, please provide an overview of the applicable requirements under the Act and an
explanation of how the Applicant plans to comply with such requirements. If no, please explain why. Yes – Full compliant with Affordable Care Act
10. Is your company currently providing paid sick time to employees in accordance with the Earned Sick Time Act (Chapter 8 of Title 20 of the NYC
Administrative Code) and otherwise in compliance with such law? If yes, please provide an explanation of your company’s paid and unpaid sick
time policy. Yes, same as required by NYC law. If no, please explain why.
4
617.20
Appendix B
Shorr Environmental Assessment Form
Instructions
for Completing
Part 1 - Project Information. The applicant or project sponsor is responsible for the completion of Part I. Rcspon cs
become part of the application lor approval or funding, are subject to public review, and may be subject to further verification.
Complete Part I based on information currently available, If additional research or investigation would be needed to fully
respond to any item. please answer as thoroughly as possible based on current in/ormation.
Complete all items in Part I. You may also provide any additional information which you believe will be needed
to the lead agency; attach additional pages as necessary to supplement any item.
Part J - Project and Sponsor
or useful
by
Information
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Name of Action or Project:
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Project Location (describe, and attach a location map):
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Brief Description of Proposed Action:
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Name of Applicant or Sponsor:
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1. Does the proposed action only involve the legislative adoption of a plan, local law, ordinance,
administrative nile, or regulation?
1 r Yes, attach a narrative description of the intent of the proposed action and the environmental resources that
may be affected in the municipality and proceed to Par! 2. If no, continue 10 question 2.
NO
2. Docs the proposed action require a permit, approval or funding from any other governmental Agency?
If Yes, list agcncy(s) name and permit Of approval:
NO
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3.a. Tot,1I acreage
b. Total acreage
c. Total acreage
or controlled
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YES
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D
-YES
0
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of the site of the proposed action?
______~_
acres
to be physically disturbed?
(project site and any contiguous properties) owned
I <; '-{$~.!<.'-'" acros-eby the applicant or project sponsor?
4. Check all land uses that occur 011. adjoining and near the proposed action.
DUrban
0 Rural (non-agriculture)
Industrial
0 Commercial
o Forest
o Parkland
¢
DAgriclilture
DAquatic
OOthcr
DResidential
(specify): .
(suburban)
___
0-
I
Page 1 01'4
5. Is the proposed action,
a. A'permittcd
NO
b. Consistent with the adopted comprehensive
6. Is the proposed action consistent
landscape:
plan?
with the predominant
YES
character ofthe existing built or natural
YES
7. Is the site of the proposed action located in, or does it adjoin, a state listed Critical Environmental
lfYt.!s, identify: _______ •
~---...... ~....•....
Area?
NO
YES
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0
NO
YES
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8. a. Will the proposed action result in a substantial
h. Are public transportation
servicets)
c. Are any pedestrian accommodations
increase in traffic above present levels?
0 0
Po 0'
available at or near the site of the proposed action?
or bicycle routes available on or near site of the proposed action?
~
9. Does the proposed action meet or exceed the state energy code requirements?
II'the proposed action will exceed requirements, describe design features and technologies:
~-
--..-..-..-.--.-- ...~.----,
--~.- ...-._---.----_._-,-10. Will the proposed action connect to an existing public/private water supply:
.·'M· •••
____ ._.M_
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If No. describe method for providing potable water:
........... _._- .._ ...... __ ._-_ ......... _--...
.... -.-.-- .... ~-.--..---,
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II. Will the proposed action connect to existing wastewater
If No, describe method for providing wastewater
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utilities?
treatment: __
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D. a. Does any
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NO
YES
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NO
YES
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YES
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YES
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NO
action, or lands adjoining the proposed action, contain
regulated by a federal, state or local agency?
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hx D
sensitive area?
b. Would the proposed action physically alter, or encroach into. any existing wetland or watcrbody?
IfYes, identify the wetland or waterbody and extent of alterations in square feet or acres: _________
..
D
INO
portion of the site of the proposed
wetlands or other waterbodics
YES
I
12. a. Does the site contain a structure that is listed on either the Stale or National Register of' Historic
Places?
b. Is the proposed action located in an archeological
NO
D [2?
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-....
__
,
N/A
0 IR1 D
0 [~ D
NO
D 161
use under the zoning regulations?
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14. Identify the typical habitat types that occur on, or are likely 10 be found on the project site. Check all that apply:
D Early mid-successional
D Agricultural/grasslands
DShoreline
DForest
D Wetland
DUrban
DSuburban
15. Does the site of the proposed action contain any species or animal, or associated
by the State or Federal government as threatened or endangered?
NO
habitats, listed
D
NO/ YES
16. Is the project site located in the 100 year flood plain?
~
NO
17. Will the proposed action create storm water discharge. either from point or non-point sources?
(rYes,
a. Will storm water discharges flow to adjacent properties?
NO DYES
!)ct
'>t
b. Will storm water discharges
If Yes, briefly describe:
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be directed
10 established
~_,~~h
••
YES
conveyance
----
__
.
Page 2 of of
systems (~ff
and storm drains)?
.
NO
DYES
--~--~----.-,...~.---------.
-
I I
YES
0
18. Does the proposed action include construction or other activities that result in the impoundment
water or other liquids (e.g. retention pond, waste lagoon, dam)?
lf Yes, explain purpose and size:
----.......... ~....-- --~-----
NO
of
21 0
-.-.- . . ---.---------.-- ..-.~--.---.-.
...
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19. Has the site of the proposed action or an adjoining property been the location of an active or closed
solid waste management facility?
If Yes, describe:
._..-.- •... .•.
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_
._----
---_._
.-.----.
YES
._. ....... -.--------
NO
YES
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----
20. Has the site of the proposed action or an adjoining property been the subject of remediation
NO
YES
(ongoing or
completed) for hazardous waste?
If Yes, describe:
.-----..----..~
-_._. __ .__ .•... _._--.---.
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,
1-I AFFIIUl THAT TIlE. INFORiVIATION PROVIDED ABOVE IS TRUE AND ACCURATE TO THE BEST OF MY
KNOWLEDGE
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Applicant/sponsor "~me, - -"i~.Cf.~~
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. ignature: --~:~
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Date:
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Part 2 - Impact Assessment. The Lead Agency is responsible for the completion of Part 2, Answer all of the following
questions in Part 2 using the information contained in Pari I and other materials submitted by the project sponsor or
otherwise available to the reviewer, When answering the questions the reviewer should be guided by thc concept "Have my
responses been reasonable considering the scale and context of the proposed action?"
I
No, or
small
impact
1
1
may
occur
L
\ViII the proposed action create a material conflict with an adopted land use plan or zoning
regulations?
')
Will the proposed action result in a change in the use or intensity of use of land?
3.
Will thc proposed action impair thc character or quality of the existing community?
4.
Will the proposed action have an impact on the environrncmal characteristics that caused the
establishment of a Critical Environmental Area (CEA)'J
5. \Vill the proposed action result in an adverse change in the existing level of'traffic or
affect existing infrastructure
D
6.
Will the proposed action cause an increase in the use of energy and it fails to incorporate
reasonably available energy conservation or renewable energy opportunities?
0
7.
Will the proposed action impact existing:
a. public / private water supplies?
D
D
b. public / private wastewater treatment utilities?
I
8.
9.
\
for mass transit, biking or walkway?
D
D
D
D
Will the proposed action impair the character or quality of important historic, archaeological.
architectural or aesthetic resources?
Will the proposed action result in .111 adverse change to natural resources (e.g., wetlands,
watcrbodies, groundwater. air quality, nom and fauna)?
Page 3 of4
D
D
Moderate
to large
impncr
may
occur
0
0
0
0
0
0
0
0
0
D
No, or
small
impact
may
occur
10. Will the proposed action result in an increase in the potential for erosion, flooding or drainage
problems?
11. Will the proposed action create a hazard to environmental
resources or human health?
0
0
Moderate
to large
impact
may
occur
0
0
Part 3 - Determination of significance. The Lead Agency is responsible for the completion of Part 3. For every
question in Part 2 that was answered "moderate to large impact may occur", or if there is a need to explain why a particular
clement of the proposed action mayor will not result in a significant adverse environmental impact, please complete Part 3.
Part 3 should, in sufficient detail, identify the impact, including any measures or design clements that have been included by
the project sponsor to avoid or reduce impacts. Part 3 should also explain how the lead agency determined that the impact
mayor will not be significant. Each potential impact should be assessed considering its setting, probability of occurring,
duration. irreversibility, geographic scope and magnitude. Also consider the potential for shan-term, long-term and
cumulative impacts.
o
o
Check this box if you have determined, based on the information
action may result in one or more potentially
environmental impact statement is required.
Check this box if you have determined, based on the information
that the proposed action will not result in any significant adverse
that the proposed
--,----_ ..... _-------
Print or Type Name of Responsible Officer in Lead Agency
PRINT
and analysis above, and any supporting documentation,
environmental impacts.
Date
Name of Lead Agency
Signature of Responsible
and analysis above, and any supporting documentation,
large or significant adverse impacts and an
Officer in Lead Agency
Tille of Responsible Ol1icer
Signature of Pre parer (if different from Responsible Ot~
Page 4 of 4
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