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PHONE: 315.435.3770 FAX: 315.435.3669 ONGOVED.COM Meeting Agenda April 14, 2020 8:00AM Call to Order the Regular Meeting of the Agency A. Approval of Minutes-March 17, 2020 B. Treasurers Report C. Payment of Bills D. Conflict of Interest Action Items:
TC Syracuse Development Associates, LLC is requesting a waiver from the Local Access Policy with respect to no more than 30% of the project’s total labor cost.
Agency Action Requested:
a. Resolution to accept request for waiver to the Local Access Policy.
Representative: Robert Petrovich
TC Syracuse Development Associates, LLC is requesting an interim sales and use tax exemption. Agency Action Requested a. Resolution to grant an interim sales and use tax exemption.
Representative: Robert Petrovich
Tessy Plastics is proposing an expansion of their Elbridge, NY manufacturing facility. This site is located in the Town of Elbridge. Ratification by the Board of the SEQR Resolution, the Final Approving Resolution and any further actions in connection therewith.
Agency Action Requested: A resolution of the Board to authorize sales tax abatement, mortgage tax exemption and real property tax abatement.
a. Ratification of Resolutions SEQR Resolutions Final Approving Resolution Representative: Robert Petrovich
Cicero Energy Storage I, LLC, is proposing the construction of a 5-megawatt solar facility in the Town of Cicero.
Agency Action Requested:
a. A Resolution of the Board describing the proposed project and the financial assistance the Agency may provide and authorizing a public hearing for the project. Agency benefits requested include a Payment in Lieu of Tax Agreement, Sales Tax Abatement, and Mortgage Recording Tax Abatement. Representative: Kevin McAuliffe, Barclay Damon, LLC
Cicero Energy Storage II, LLC, is proposing the construction of a 5-megawatt solar facility in the Town of Cicero.
Agency Action Requested:
a. A Resolution of the Board describing the proposed project and the financial assistance the Agency may provide and authorizing a public hearing for the project. Agency benefits requested include a Payment in Lieu of Tax Agreement, Sales Tax Abatement, and Mortgage Recording Tax Abatement. Representative: Kevin McAuliffe, Barclay Damon, LLC
An agreement between CNYIBA and OCIDA.
Agency Action Requested:
a. A Resolution Authorizing the Execution of a Consulting Services Agreement. Representative: Robert Petrovich 7. Barbagallo’s Tavern, Inc.
Agency Action Requested:
a. A Resolution Authorizing the Execution of Lender Documents.
Representative: Robert Petrovich Adjourn 2
Onondaga County Industrial Development Agency Regular Meeting Minutes March 17, 2020 A regular meeting of the Onondaga County Industrial Development Agency was held on Tuesday, March 17, 2020 at 333 West Washington Street, Syracuse, New York in the large conference room on the first floor.
Patrick Hogan called the meeting to order at 8:00 am with the following:
PRESENT:
Patrick Hogan Fanny Villarreal
Kevin Ryan Susan Stanczyk Steve Morgan Janice Herzog
ABSENT:
Victor Ianno
ALSO PRESENT:
Robert Petrovich, Executive Director Nancy Lowery, Secretary Nate Stevens, Treasurer Karen Doster, Recording Secretary Carolyn Evans-Dean, Economic Development Jeffrey Davis, Barclay Damon Law Firm (Teleconference) Amand Mirabito, Barclay Damon Law Firm (Teleconferenc) Angela Orlandella, Barclay Damon Law Firm (Teleconference) Brian Gerling, Bond Schoeneck & King (Teleconference) Paul Reichel, Bond Schoeneck & King (Teleconference) Melissa Clark, Abundant Solar Power (SK1), LLC (Teleconference) Chris Carrick, CNY Regional Planning Board (Teleconference) APPROVAL OF REGULAR MEETING MINUTES – FEBRUARY 11, 2020 Upon a motion by Janice Herzog, seconded by Steve Morgan, the OCIDA Board approved the regular meeting minutes of February 11, 2020. Motion was carried.
TREASURER’S REPORT Nate Stevens gave a brief review of the Treasurer’s Report for the month of February 2020. Upon a motion by Fanny Villarreal, seconded by Janice Herzog, the OCIDA Board approved the Treasurer’s Report for the month of February 2020. Motion was carried.
Nate Stevens gave a brief review of the Payment of Bills Schedule #441.
Upon a motion by Janice Herzog, seconded by Fanny Villarreal, the OCIDA Board approved the Payment of Bills Schedule #441 for $108,632.95 and PILOT payments to Town of DeWitt for $29,218.00, Town of Manlius for $15,959.81, Town of Van Buren for $34,804.00, Baldwinsville Central School District for $204,861.00, East Syracuse Minoa Central School District for $155,264.00 and Onondaga County for $92,699.63. Motion was carried.
The Conflict of Interest Statement was circulated and there were no conflicts reported. The conflict of interest will be emailed to Board Members present via teleconference to sign off.
Upon a motion by Fanny Villarreal, seconded by Janice Herzog, the OCIDA Board approved a resolution adopting the 2020 budget. Motion was carried.
Nate Stevens stated Nancy Lowery held the public hearing.
Angela Orlandella stated that Tessy Plastics is doing an $18,000,000 expansion which is divided $8,000,000 for the building construction and $10,000,000 in equipment. She stated that the expansion involves additional warehouse space but also internal space for clean rooms etc. to expand the manufacturing operation.
2 Robert Petrovich stated that since Barclay Damon is representing Tessy on this transaction, staff has been working with Brian Gerling and Paul Reichel from Bond Schoeneck & King who have been representing the Agency for this transaction. He stated they have been working through the benefit package that will be voted on shortly.
Steve Morgan asked if there were any comments at the public hearing. Nancy Lowery stated that there were no negatives. She stated that there were folks that came to listen from the Town Board and from the School. She stated they both offered support for the project. Patrick Hogan asked what the employment numbers will be after the expansion is completed. Angela Orlandella stated that right now in Elbridge there are about 564 employees and companywide there are about 975. She stated they are looking to create 150 jobs in the next 3 years with 50 the first year.
Upon a motion by Janice Herzog, seconded by Susan Stanczyk, the OCIDA Board approved a resolution authorizing sales tax abatement, mortgage tax exemption and real property tax abatement for the Tessy Plastics Corporation project. Motion was carried.
Melissa Clark stated that Abundant Solar had originally discussed how the ownership of the SK1 Solar array would work over the long term in September-October. She stated that they did mention there would be a transfer of the asset prior to construction and it was included in the original application. She stated that they are on the cusp of moving to construction and as a consequence in order to get the financing appropriately in place True Green Capital has created a special purpose entity called Solarize NY Holdings LLC. She stated that they have purchased the shares in the SK1 LLC and they are here today to request approval of this change in ownership to move forward with the project with the funding in place.
Jeff Davis stated that from a SEQR perspective the project has been reviewed and adopted. He stated that the request for change in ownership has no significant impact on the SEQR resolution so there is no change to that.
3 Chris Carrick stated that he wanted to remind the Board that the CNY Regional Planning and Development Board has partnered with Abundant to construct a number of solar projects on municipal properties. He stated Skaneateles is the first in Onondaga County but there will be several more coming before the Board in the coming months. He stated the change in membership interest is fairly typical for the financing of these solar projects because of the way the federal investment credit works to finance the projects.
Upon a motion by Janice Herzog, seconded by Fanny Villarreal, the OCIDA Board approved a resolution consenting to the sale of the membership interest of the Abundant Solar Power (SK1) LLC project. Motion was carried.
Robert Petrovich stated that at the prior meeting there was conversation about a relationship we are entering with the Central New York IBA in order to enhance opportunities and work relative to import/export in particular with our FTZ. He stated the CNYIBA has some skill sets that we think we should utilize in terms of moving the needle on our FTZ related activities for constituents in our universe. He stated this was an opportunity for us over the course of this year for staff to work with Steve King of CNYIBA to see if we can expand our FTZ90 and meet the needs of folks that have expressed an interest in services related to import/export. He stated that he is seeking a resolution authorizing his execution of the contract negotiated with CNYIBA for services they are going to be providing, 200 hours over the course of this year. He stated they will be working with us and we will compensate them $35,000 for that effort.
Kevin Ryan asked if the Board has seen a copy of the agreement. Robert Petrovich stated that he believes the Board may have seen a draft a while back but the agreement is available to look at. He stated it is straightforward.
Patrick Hogan asked about terms of the money going back and forth. Robert Petrovich stated that in terms of the money they have to provide services and we can choose to pay them. He stated Barclay Damon drafted the agreement for us. He stated that CNYIBA has looked at it, they are satisfied with what was presented as an agreement, they signed it and now he is waiting 4 authorization from the Board for him to sign it. He stated that it is $35,000 paid in quarterly installments based upon the work completed. He stated that it is up to $35,000 and we will not exceed that.
Patrick Hogan asked if the Board will get a chance to review it going forward. Robert Petrovich stated that staff will provide updates through the course of the year.
Fanny Villarreal stated that she would like to see the agreement before voting. Robert Petrovich stated that the draft went out previously but he will send the agreement out today. He suggested tabling the vote for now. Patrick Hogan agreed to table.
Upon a motion by Fanny Villarreal, seconded by Janice Herzog, the OCIDA Board approved a resolution adopting the 2019 Agency audit. Motion was carried.
Nate Stevens asked Brian Gerling and Paul Reichel to discuss SEQR for the Tessy Plastics project.
Paul Reichel stated that in connection with the Agency’s approval, Tessy Plastics project will also need the SEQR review. He stated that Tessy submitted an environmental assessment form with its application along with the negative declaration and determination by the Town Planning Board that the project will not have an impact on the environment. He asked the Board to approve a resolution accepting the determination by the Planning Board that it will not have a significant effect on the environment.
Upon a motion by Kevin Ryan, seconded by Fanny Villarreal, the OCIDA Board approved a resolution accepting the SEQR determination by the Town of Elbridge Town Planning Board that the project will not result in a significant adverse environmental impact. Motion was
carried.
5 Patrick Hogan thanked everyone because we are in a new normal and especially the County Executive and the Governor of the State with the open meeting laws and the Economic Development staff.
Upon a motion by Fanny Villarreal, seconded by Patrick Hogan, the OCIDA Board adjourned the meeting at 8:57 am. Motion was carried.
_________________________________ Robert M. Petrovich, Executive Director 6
PHONE: 315.435.3770 • FAX: 315.435.3669 March 31, 2020
Revenue / Expense / Income Current Period Current YTD Amount Change to Budget Operating Revenue 1,851,261 2,193,808 1,526,000 667,808 Administrative Expense 42,376 123,740 900,000 (776,260) Operating/Program Exp. 10,070 30,011 626,000 (595,989) Net Ordinary Income 1,798,816 2,040,057 - 2,040,057 Current Assets Current YTD Prior YTD Total Cash 2,825,604 1,918,544 Less Pass Through Received 25,750 - Available Cash 2,799,854 1,918,544 Receivables (less pass through rec.) 1,845,914 973,947 Grant Reimbursements 268,733 268,733 Total 4,914,501 3,161,224 Reserve for Contracts County Operations 2020 776,260 Marketing 14,737 Professional Services 55,000 Website Design 180 333 W. Washington St 2020 Rent 65,000 WPCP Sewer Design Engineering 108,151 OBG WPCP Engineering - OBG WPCP Drone Flyover - OBG WPCP CO #2 Site Selection - OBG WPCP CO #3 Additional Studies (2,418) OBG WPCP CO #4 Additional Studies 563,498 JMT 800 Hiawatha Engineering 25,000 National Grid WPCP Engineering Gas 200,000 National Grid WPCP Engineering Electric 175,000 Total 1,980,408 Receivables 0-120 days 1,623,890 > 120 days 490,757 Total 2,114,647 Onondaga County Industrial Development Agency
March 2020
Income
2116.1 Agency Fees 1,851,125.00 Total 2116 Fees 1,851,125.00 Total 500 Operating Revenue 1,851,125.00
2401 Interest Income 87.28 501.2 Other Non-Operating Revenue 49.00 Total 501 Non-Operating Revenue 136.28
528 Pass thru Income 10,371.00 529 PILOT Income 34,776.45 Total 534 Pilot & Pass Thru Revenue 45,147.45 Total Income $1,896,408.73 GROSS PROFIT $1,896,408.73 Expenses
6407 Administrative Expense 42,375.91 6408 Board Mtg Exp 395.63 6409 Conference Attendence 1,954.93 6410 Office Expense 335.62 Total 6400 Operating Expense 45,062.09
6510.2 Site Analysis 5,555.50 6510.7 WPCP Marketing 1,828.00 Total 6510 White Pine Commerce Park 7,383.50 Total 6500 Agency Program Expenses 7,383.50
6605.1 Pass thru Expense 10,371.00 6605.2 PILOT Expense 34,776.45 Total 6605 Pilot & Pass Thru Expenses 45,147.45 Total 6600 Non-Operating Expenses 45,147.45 Total Expenses $97,593.04 NET OPERATING INCOME $1,798,815.69 NET INCOME $1,798,815.69 Accrual Basis Monday, April 6, 2020 11:08 AM GMT-04:00 1/1 Onondaga County Industrial Development Agency
As of March 31, 2020
Current Assets Bank Accounts 200 Cash 0.00 200.1 Cash - M & T Checking 1,944,628.87 200.2 Cash - M & T Money Maker Savings 889,882.55 200.4 Destiny USA Restricted Cash -8,957.82 210 Petty Cash 50.00 Total 200 Cash 2,825,603.60 Total Bank Accounts $2,825,603.60 Accounts Receivable 380 Accounts Rec.
380.222 Bank of NY -2.00 Total 380.2 PILOTs Rec -2.00 380.6 A/R Agency Fees 1,744,604.03 Total 380 Accounts Rec. 1,744,602.03 Total Accounts Receivable $1,744,602.03 Other Current Assets 391 Long Tern Receivable 222,024.00
392.065 Simple Admit Current -0.32 392.066 Aquari current -0.24 Total 392 Loans Receivable -0.56
393.1 ESD WPCP 134,366.66 393.2 Nat Grid WPCP 134,366.66 Total 393 Grant Reimbursements 268,733.32 Total Other Current Assets $490,756.76 Total Current Assets $5,060,962.39 Accrual Basis Monday, April 6, 2020 11:06 AM GMT-04:00 1/3 Onondaga County Industrial Development Agency
As of March 31, 2020
Fixed Assets
101 White Pines Commerce Park 1,520,401.50
101.101 CHA GEIS 1 267,452.05 101.102 CHA GEIS 2 219,439.36 101.104 GEIS Reg Plan Board Overview 19,797.74 Total 101.1 WPCP GEIS 506,689.15 101.2 WPCP Legal 69,774.25 101.3 Engineering Services 52,675.00 101.301 Temporary Access 4,055.44 101.4 Environmental/Demo Services 10,318.98 Total 101.3 Engineering Services 67,049.42
101.501 Land Purchases 1,160,063.57 101.502 Closing Costs 3,168.14 Total 101.5 Land Acquisition Costs 1,163,231.71 Total 101 White Pines Commerce Park 3,327,146.03 106 North Salina Properties 0.00 106.1 435 North Salina 17,083.55 106.3 435 North Salina Building 634,421.53 Total 106 North Salina Properties 651,505.08 107 800 Hiawatha 604,840.42 Total 100 Land 4,583,491.53
104.1 Office Furniture 1,429.00 104.2 Equipment 1,432.40 Total 104 Machinery & Equipment 2,861.40 211 A/D Office Furniture -2,861.00 213 A/D Buildings -48,801.00 Total Fixed Assets $4,534,690.93 Other Assets 240 Blue Sky Redevelopment 1,641.76 Total Other Assets $1,641.76 TOTAL ASSETS $9,597,295.08 Accrual Basis Monday, April 6, 2020 11:06 AM GMT-04:00 2/3 Onondaga County Industrial Development Agency
As of March 31, 2020
Liabilities Current Liabilities Other Current Liabilities 600 Accounts Payable 0.00 600.1 Due to Related Party - OED 123,740.47 600.206 Mileage Reimbursement 81.41 600.207 EPP App Deposit 250.00 600.208 BlueRock Energy Agreement Deposit 25,000.00 Total 600 Accounts Payable 149,071.88
602 Pass Thru Payable 10,871.00 603 PILOT Pass Thru 108,838.05 Total 601 PILOT and Pass Thru Payable 119,709.05
631.17 Van Buren 0.20 Total 631.1 Towns 0.20
631.335 Liverpool -0.01 631.337 Lyncourt 0.01 631.34 Marcellus 0.01 631.345 North Syracuse -0.01 Total 631.3 Schools 0.00 631.4 Onondaga County 1.93 Total 631 Due to Other Governments 2.13 Total Other Current Liabilities $268,783.06 Total Current Liabilities $268,783.06 Total Liabilities $268,783.06 Equity 3900 Equity Unreserved 4,569,787.87 3901 Equity-Investment Fixed Assets 2,345,838.63 463 Reserve For Contracts 1,980,407.91 465 Equity - Unreserved -1,607,578.91 Net Income 2,040,056.52 Total Equity $9,328,512.02 TOTAL LIABILITIES AND EQUITY $9,597,295.08 Accrual Basis Monday, April 6, 2020 11:06 AM GMT-04:00 3/3
PAYMENT OF BILL - SCHEDULE #442 April 14, 2020
1. ONONDAGA COUNTY $ 123,740.47 1st Quarter 2020 OED Administrative Expenses Payment 2. BROWN & BROWN EMPIRE STATE $ 5,664.00
3. REPUBLIC PARKING SYSTEM $ 4.00 Inv# 20-03-305 Meeting Parking 4. FEDEX $ 49.69 Inv#6-951-09261, Shipping to SSG Atlanta 5. ADVANCE MEDIA NEW YORK $ 160.20 Publing Hearing Notices; Taft Solar, Tracey Road & Tessy 6. ONONDAGA CIVIC DEVELOPMENT CORP. $ 15,408.06 1st Quarter 2020 Rent and Office Machine Payments 7. HARRIS BEACH PLLC $ 2,011.00 Inv#2361534, WPCP Land Purchase 8. BARCLAY DAMON LLP $ 14,969.42 Inv#5064017, 5064019 & 5064018, Legal thru 2/29/2020 9. THE NEW YORK, SUSQUEHANA & WESTERN RAILWAY* $ 500.00
TOTAL $ 162,506.84 * Ratification of Check dated April 8, 2020 1
PAYMENT OF BILL - SCHEDULE #442 April 14, 2020 PILOT Payments 1. CITY OF SYRACUSE $ 8,604.73 1st Quarter 2020 COR Inner Harbor Master PILOT Payment 2. SYRACUSE CSD $ 15,358.48 1st Quarter 2020 COR Inner Harbor Master PILOT Payment 3. ONONDAGA COUNTY $ 10,813.24 1st Quarter 2020 COR Inner Harbor Master PILOT Payment TOTAL $ 34,776.45 1
DESCRIPTION TERM CONTRACT PAID OUTSTANDING ONONDAGA COUNTY OED 2020 1-1-20-12-31-20 $900,000.00 $123,740.47 $776,259.53 MARKETING 1-1-20-12-31-20 $15,000.00 $262.76 $14,737.24 PROFESSIONAL SERVICES 1-1-20-12-31-20 $55,000.00 $0.00 $55,000.00 WEBSITE DESIGN 8/31/16-12-31-20 $10,000.00 $9,820.00 $180.00 333 W. WASHINGTON ST 2020 RENT 1-1-20-12-31-20 $65,000.00 $0.00 $65,000.00 WPCP SEWER DESIGN ENGINEERING 1/31/16-1/31/17 $268,628.00 $160,476.55 $108,151.45 OBG WPCP ENGINEERING 2/28/17-2/28/18 $99,370.00 $99,370.00 $0.00 OBG WPCP CO #1 DRONE FLYOVER 4/30/17-4/30/18 $3,300.00 $3,300.00 $0.00 OBG WPCP CO #2 SITE SELECTION 9/30/17-9-30-18 $25,646.02 $25,646.02 $0.00 OBG WPCP CO #3 ADDITIONAL STUDIES 9/30/17-9-30-18 $65,000.00 $67,418.47 -$2,418.47 OBG WPCP CO #4 ADDITIONAL STUDIES 11/30/18-11/30/19 $800,000.00 $236,501.84 $563,498.16 JMT 800 HIAWATHA ENGINEERING 2/13/19-12-31-20 $25,000.00 $0.00 $25,000.00 NATIONAL GRID WPCP ENGINEERING GAS 11/29/18-11/29/19 $403,100.00 $203,100.00 $200,000.00 NATIONAL GRID WPCP ENGINEERING ELECTRIC 11/29/18-11/29/19 $375,000.00 $200,000.00 $175,000.00 $3,110,044.02 $1,129,636.11 $1,980,407.91
AGENCY FEES RECEIVABLE $1,623,890.00 ACCOUNTS RECEIVABLE GENERAL $0.00 QUASI-EQUITY LOAN RECEIVABLE $0.00 GRANTS RECEIVABLE $268,733.00 LONG TERM RECEIVABLE $222,024.00 TOTAL $2,114,647.00 Onondaga County Industrial Development Agency Project Summary 4/7/2020 1. Project Cicero Energy Storage I, LLC 2. Project Number 3101-20-05A 3. Location Town of Cicero 4. School District North Syracuse CSD
5. Tax Parcel(s) 054.-01-15.1 Village - 7.Total Project Cost $ 12,198,381 8. Total Jobs 0 Land $ - 8A. Job Retention 0 Site Work $ 336,979 8B: Job Creation 0 Building $ - (Next 5 Years) Furniture & Fixtures $ - Equipment $ 4,281,402 Equipment Subject to NYS Production Exemption $ - Engineering/Architecture Fees $ 80,000 Financial Charges $ - Legal Fees $ - Other- Solar Installation Labor $ 7,500,000 Cost Benefit Analysis Cicero Energy Storage I, LLC Project Description Fiscal Impact ($) Abatement Cost $1,048,187 Sales Tax $768,000 Mortgage Tax $68,618 Property Tax Relief (PILOT) $211,569 New Investment $12,702,584 PILOT Payments $350,723 Project Wages (10 years) $0 Cicero Energy Storage I LLC is proposing to construct a 5 MW photovoltaic solar facility with a Construction Wages $0 battery energy storage system on lands located at Totman Road in the Town of Cicero. Employee Benefits (10 years) $0 Project Capital Investment $12,198,381 New Sales Tax Generated $0 Agency Fees $153,480 Benefit:Cost Ratio 12 :1 Cicero Energy Storage I, LLC 4/8/2020 A) PILOTS Estimate Table Worksheet Current Revenue Generated by Parcel $ 11,550 Projected Year 1 Revenue to be generated as a result of the project: $ 22,500 Total Project Cost $ 12,198,381 OCIDA Estimate of Project Value $ 1,070,351 Projected MW to be generated 5 North Syracuse Full Tax Payment without Year Onondaga County Town of Cicero CSD Total PILOT PILOT Net Exemption 15.0% 16.6% 68.4% 100.0% 2019-2020 $ 1,731 $ 1,917 $ 7,903 $ 11,550 1 $ 3,371 $ 3,734 $ 15,395 $ 22,500 $ 11,781 $ (10,719) 2 $ 3,439 $ 3,809 $ 15,702 $ 22,950 $ 12,017 $ (10,933) 3 $ 3,507 $ 3,885 $ 16,016 $ 23,409 $ 12,257 $ (11,152) 4 $ 3,578 $ 3,963 $ 16,337 $ 23,877 $ 12,502 $ (11,375) 5 $ 3,649 $ 4,042 $ 16,664 $ 24,355 $ 12,752 $ (11,602) 6 $ 3,722 $ 4,123 $ 16,997 $ 24,842 $ 13,007 $ (11,834) 7 $ 3,797 $ 4,205 $ 17,337 $ 25,339 $ 13,268 $ (12,071) 8 $ 3,873 $ 4,289 $ 17,683 $ 25,845 $ 13,533 $ (12,312) 9 $ 3,950 $ 4,375 $ 18,037 $ 26,362 $ 13,804 $ (12,559) 10 $ 4,029 $ 4,463 $ 18,398 $ 26,890 $ 14,080 $ (12,810) 11 $ 4,110 $ 4,552 $ 18,766 $ 27,427 $ 14,361 $ (13,066) 12 $ 4,192 $ 4,643 $ 19,141 $ 27,976 $ 14,649 $ (13,327) 13 $ 4,276 $ 4,736 $ 19,524 $ 28,535 $ 14,942 $ (13,594) 14 $ 4,361 $ 4,831 $ 19,914 $ 29,106 $ 15,240 $ (13,866) 15 $ 4,448 $ 4,927 $ 20,313 $ 29,688 $ 15,545 $ (14,143) 16 $ 4,537 $ 5,026 $ 20,719 $ 30,282 $ 66,533 $ 36,250 17 $ 4,628 $ 5,126 $ 21,133 $ 30,888 $ 67,863 $ 36,975 18 $ 4,721 $ 5,229 $ 21,556 $ 31,505 $ 69,220 $ 37,715 19 $ 4,815 $ 5,333 $ 21,987 $ 32,136 $ 70,605 $ 38,469 20 $ 4,911 $ 5,440 $ 22,427 $ 32,778 $ 72,017 $ 39,239 21 $ 5,010 $ 5,549 $ 22,875 $ 33,434 $ 73,457 $ 40,023 22 $ 5,110 $ 5,660 $ 23,333 $ 34,102 $ 74,926 $ 40,824 23 $ 5,212 $ 5,773 $ 23,800 $ 34,785 $ 76,425 $ 41,640 24 $ 5,316 $ 5,888 $ 24,276 $ 35,480 $ 77,953 $ 42,473 25 $ 5,422 $ 6,006 $ 24,761 $ 36,190 $ 79,513 $ 43,323 $ 107,983 $ 119,607 $ 493,091 $ 720,682 $ 932,251 $ 211,569
1. Fill in all blanks using “none”, “not applicable” or “not available”. If you have any questions about the way to respond, please call the Onondaga County Industrial Development Agency at 315-435-3770. 2. If providing an estimate put “(est.)” after the figure or answer. If more space is needed to answer any specific question, attach a separate sheet.
3. If the OCIDA Board approves benefits, it is the company’s responsibility to obtain and submit all necessary forms and documents. (ST-60, PILOT Agreement) 4. When completed, return this Application by mail or fax to the Agency at the address indicated below. A signed application may also be submitted electronically in PDF format to Nate Stevens at nstevens@ongov.net. An Application will not be considered by the Agency until the Application fee has been received.
5. The Agency will not give final approval for this Application until the Agency receives a completed NYS Full Environmental Assessment Form concerning the Project, which is the subject of this Application. The form is available at http://www.dec.ny.gov/permits/6191.html. 6. Please note the Public Officers Law declares all records in the possession of the OCIDA (with certain limited exceptions) are open to public inspection and copying. If the Applicant is of the opinion that there are elements of the Project which are in the nature of trade secrets which, if disclosed to the public or otherwise widely disseminated, would cause substantial injury to the Applicant’s competitive position, this
Applicant must identify such elements in writing and request that such elements be kept confidential. In accordance with Article 6 of the Public Officer’s Law, the OCIDA may also redact personal, private, and/or proprietary information from publicly disseminated documents.
7. The Applicant will be required to pay the Agency Application fee and, if accepted as a project of the agency, all administrative and legal fees as stated in Section VI of the Application.
This Application Local Access Agreement Employment Plan Conflict of Interest A feasibility statement indicating the need for the requested benefits Description of project, Site Plans/Sketches, and Maps NYS Full Environmental Assessment Form A check payable to the Agency in the amount of $1,000 A check payable to Barclay Damon LLP in the amount of $2,500 9. This Application was adopted by the OCIDA Board on November 19, 2019.
Onondaga County Industrial Development Agency Page 1 It is the policy of the Agency that any project receiving benefits from the Onondaga County Industrial Development Agency will utilize 100% local contractors and local labor for the construction period of the project unless a waiver is granted in writing by the Agency. Return to:
Onondaga County Industrial Development Agency Attn: Nate Stevens 333 W. Washington Street, Suite 130 Syracuse, NY 13202 Phone: 315-435-3770 | Fax: 315-435-3669 nstevens@ongov.net
Please answer all questions. Use “None”, “Not Applicable” and “See Attached” where necessary.
A) Applicant information-company receiving benefits:
Applicant Name: Cicero Energy Storage I, LLC
Applicant Address: 7 Times Square Tower, Suite 3504 New York, NY 10036 Phone: (215) 287- 4398 Fax:
Website:
convergent.com E-mail: bkoze@ convergentep.com Federal ID#: 84-4974034 NAICS:
State and Year of Incorporation/Organization: __________________________________________ 2020 - Delaware Will a Real Estate Holding Company be utilized to own the Project property/ facility? ☐Yes ☐No What is the name of the Real Estate Holding Company:
Federal ID#:
State and Year of Incorporation/Organization:
List of stockholders, members, or partners of Real Estate Holding Company:
________________________________________________________________________________ B) Individual Completing Application:
Name: Becky Koze Title: Vice President of Development Address: 7 Times Square Tower, Suite 3504 New York, NY 10036 Phone: (215) 287- 4398 Fax:
E-mail: bkoze@ convergentep.com Onondaga County Industrial Development Agency Page 2 C) Company Contact (if different from individual completing application):
Name:
Title:
Address:
Phone: Cell Phone:
E-mail:
D) Company Counsel:
Name of Attorney: Kevin McAuliffe Firm Name: Barclay Damon LLP Address: 125 E. Jefferson Street Syracuse, New York Phone: (315) 425-2875 Cell Phone: (315) 382-8703 E-mail: kmcauliffe@barclaydamon.com E) Business Organization (check appropriate category):
☐ Corporation ☐Partnership ☐ Public Corporation ☐Joint Venture ☐ Sole Proprietorship ☐Limited Liability Company Others (please specify):
Year Established: 2020 State in which Organization is established: Delaware F) List all stockholders, members, or partners with % of ownership greater than 5% : SEE ATTACHED SHEET.
Name % of ownership Onondaga County Industrial Development Agency Page 3 G) Applicant Business Description:
Please attach a description of your company’s background, products, customers, goods and services. Estimated % of sales within Onondaga County: _______________________________________ 100% Estimated % of sales outside Onondaga County but within New York State: 0 Estimated % of sales outside New York State but within the U.S.: 0 Estimated % of sales outside the U.S.: 0 (*Percentage to equal 100%) H) What percentage of your total annual supplies, raw materials and vendor services are purchased from firms in Onondaga County. Include list of vendors, raw material suppliers and percentages for each. Provide supporting documentation including estimated percentages of local purchases. Please attach this information.
I) Applicant History: If the answer to any of the following is “Yes”, please explain below. If necessary, attach additional information.
☐Yes ☐No plaintiff or defendant in any civil or criminal litigation?
criminal offense (other than a minor traffic violation)? ☐Yes ☐No 3. Has any person listed in Section I ever been in receivership or declared bankruptcy? ☐Yes ☐No Please attach any explanations:
J) Has the Project Beneficiary received assistance from OCIDA, SIDA, New York State or the Onondaga Civic Development Corporation in the past? If yes please attach an explanation and please give year, project name, description of benefits and address of project. ☐Yes ☐No Onondaga County Industrial Development Agency Page 4
A) Project Location: Location where the investment will take place. If company is moving, the new location should be entered here and the current location should be in Section I. Address: Totman Road Legal Address (if different):
City: Village/Town: Cicero Zip Code: 13039 School District: North Syracuse Tax Map Parcel ID(s): 054-01-15.1 Current Assessed Value: $334,900 Sq. Footage of Existing Building: N/A Census Tract:
B) Type (Check all that apply):
☐New construction ☐Purchase of machinery and/or equipment ☐Expansion/Addition to current facilities ☐Brownfield/Remediated Brownfield ☐Renovation of existing facility ☐LEED Certification ☐Acquisition of existing facility/property ☐Other:
☐Demolition and Construction C) Please attach a summary of how this project will help your business grow. Will it set the company up for revenue growth? Will it mitigate cost? Will it provide more flexibility? D) Description of Project: Please provide a detailed narrative of the proposed Project. This narrative should include, but is not limited to:
☐ (i) the size of the Project in square feet and a breakdown of square footage per each intended use;
☐ (ii) the size of the lot upon which the Project sits or is to be constructed; ☐ (iii) the current use of the site and the intended use of the site upon completion of the Project;
☐ (iv) the principal products to be produced and/or the principal activities that will occur on the Project site; and ☐ (v) an indication as to why the Applicant is undertaking the Project and the need for the requested benefits. Please separately attach the description and any copies of site plans, sketches or maps.
Onondaga County Industrial Development Agency Page 5 E) Select Project Type for all end users at Project site (you may check more than one): **Please check any and all end users as identified below ☐ Industrial ☐Bank Office ☐ Acquisition of Existing Facility ☐Retail ☐ Housing ☐Mixed Use ☐ Equipment Purchase ☐Facility for Aging ☐ Multi-Tenant ☐Civic Facility (not for profit) ☐ Commercial ☐Other 5MW Photovoltaic solar facility/15 MWh BESS F) For the Agency to consider this Project, please provide the following information: 1. Does the project consist of new construction or expansion or substantial renovation of an existing facility?
☐Yes ☐No 2. Will the project create new employment opportunities or retain existing jobs that may otherwise be lost?
☐Yes ☐No 3. Does the project beneficiary serve a customer base primarily outside of Onondaga County?
☐Yes ☐No G) Will the completion of the Project result in the removal of an industrial or manufacturing plant of the company from one area of the state to another area of the state OR in the abandonment of one or more plants or facilities of the company located within the state? Please explain if you answer “Yes” by attaching a response.
☐Yes ☐No H) Please attach a description of any compelling circumstances the Agency should be aware of while reviewing this application.
I) Environmental Information 1. Please attach the appropriate Environmental Impact Forms to your application. Here is a link to the SEQR forms:
a. http://www.dec.ny.gov/permits/6191.html
☐Yes ☐No If yes, please attach an explanation.
Onondaga County Industrial Development Agency Page 6
A) Project Costs and Finances Description of Costs Total % of Total Total Private Expenditure Budget Budget to be (should be less than or Amount Procured in equal to total budget Onondaga amount) County Land Acquisition N/A Site Work/Demo $ 336,979 Building Construction & Renovation N/A Furniture & Fixtures N/A Equipment (solar) $4,281,402 Equipment Subject to NYS Production Sales Tax Engineering/Architect Exemption $80,000 sFinancial Charges TBD Legal TBD Other (BESS) $7,500,000 Management/Developer Fees 0 Total Project Cost 12,198,381 Note: Do not include OCIDA fees, OCIDA application fees or OCIDA legal fees as part of the Total Project Cost. You may attach a separate chart if needed.
B) TOTAL Capital Costs $ 12,198,381 Project refinancing: estimated amount (for refinancing of existing debt only) $0 Sources of Funds for Project Costs:
1. Bank Financing $ _______________
2. Equity (excluding equity that is attributed to grants/tax credits) $ 3,049,381 3. Tax Exempt Bond Issuance (if applicable) $ _______________ 0 4. Taxable Bond Issuance (if applicable) $ 0 Onondaga County Industrial Development Agency Page 7
and tax credits) $ 0 -Identify each state and federal grant/credit:
$ $ $ 6. Total Sources of Funds for Project Costs $ _______________
C) Employment and Payroll Information *Full Time Equivalent (FTE) is defined as one employee working no less than 40 hours per week or two or more employees together working a total of 40 hours per week.
☐Yes ☐No If yes, provide number of FTE jobs at the facility:
Estimate the number of FTE jobs to be retained as a result of this Project: 0 Estimate the number of construction jobs to be created by this Project: 50-75 Estimate the average length of construction jobs to be created (months):
Current annual payroll at facility:
Average annual growth rate of wages:
Please list, if any, benefits that will be available to either full and/or part time employees:
Average annual benefit paid by the company ($ or % salary) per FTE job:
Average growth rate of benefit cost:
Amount or percent of wage employees pay for benefits:
Provide an estimate of the number of residents in the Economic Development Region (Onondaga, Madison, Cayuga, Oneida, Oswego, and Cortland Counties) to fill new FTE jobs:
Onondaga County Industrial Development Agency Page 8 D) New Employment Benefits N/A i. Complete the following chart indicating the number of FTE jobs presently employed at the Project and the number of FTE jobs that will be created at the Project site at the end of the first, second, third, fourth and fifth years after the Project is completed. Jobs should be listed by title of category (see below), including FTE independent contractors or employees of independent contractors that work at the Project location. Do not include construction workers.
ii. Feel free to include additional information or a substitute chart if you think additional material would add clarity.
Current & Planned Full Salary Current Estimated Number of FTE Jobs Time Occupations (Job (Annual or Number of added each year after project Titles) Hourly) FTEs Year 1 Year 2 Year 3 Year 4 Year 5 completion Job Creation Subtotal For purposes of completing the chart, please list the job titles that will be increasing in number. If possible, please attach a brief description that outlines what each job entails. If you prefer, you may attach a job chart of your own that outlines the job growth projections regarding the project.
E) Financial Assistance sought (estimated values):
☐ Real Property Tax Abatement (PILOT): TBD ☐ Mortgage Recording Tax Exemption (.75% of amount mortgaged): 68,617.50 ☐ Sales and Use Tax Exemption (4% Local, 4% State): $768,000 ☐ Tax Exempt Bond Financing (Amount Requested): N/A ☐ Taxable Bond Financing (Amount Requested): N/A Onondaga County Industrial Development Agency Page 9 F) Mortgage Recording Tax Exemption Benefit Calculator: Amount of mortgage that would be subject to mortgage recording tax:
Mortgage Amount (include sum total of construction/permanent/ bridge financing): $ 9,149,000 Estimated Mortgage Recording Tax Exemption Benefit (product of mortgage amount as indicated above, multiplied by .0075): $ 68,617.50 G) Sales and Use Tax Benefit Calculator: Gross amount of costs for goods and services that are subject to State and local Sales and US tax – said amount to benefit from the Agency’s Sales and Use Tax exemption benefit:
$ 9,600,000 Estimated State and local Sales and Use Tax Benefit (product of 8% multiplied by the figure, above) (This should match the amount in section “E” on this page, this calculation only exists to help you with your estimate):
$ 768,000 Onondaga County Industrial Development Agency Page 10
Section IV of this Application will be: (i) completed by IDA Staff based upon information contained within the Application, and (ii) provided to the Applicant for ultimate inclusion as part of this completed Application prior to the completed application being provided to the OCIDA Board.
A) PILOTS Estimate Table Worksheet OCIDA estimate of current value New construction and renovation costs OCIDA estimate of increase in value OCIDA estimated value of completed project OCIDA estimate of taxes that would have been collected if the project did not occur Scheduled PILOT payments PILOT Exemption County Local School Total Full Tax Net Exemption Year % PILOT PILOT PILOT PILOT Payment Amount Amount Amount w/o PILOT
Estimates provided are based on current property tax rates and assessment value (current as of date of application submission) and have been calculated by IDA staff Onondaga County Industrial Development Agency Page 11
In absence of a waiver permitting otherwise, every project seeking the assistance of the Onondaga County Industrial Development Agency (Agency) must use local general contractors, sub- contractors, and labor for one-hundred percent (100%) of the construction of new, expanded, or renovated facilities. The project’s construction or project manager need not be a local company. Noncompliance may result in the revocation and/or recapture of all benefits extended to the project by the Agency. Local Labor is defined as laborers permanently residing in the State of New York counties of Cayuga, Cortland, Herkimer, Jefferson, Madison, Oneida, Onondaga, Oswego, Tompkins, and Wayne. Local (General/Sub) Contractor is defined as a contractor operating a permanent office in the State of New York counties of Cayuga, Cortland, Herkimer, Jefferson, Madison, Oneida, Onondaga, Oswego, Tompkins and Wayne. The Agency may determine on a case-by-case basis to waive the Local Access Policy for a project or for a portion of a project where consideration of warranty issues, necessity of specialized skills, significant cost differentials between local and non-local services or other compelling circumstances exist. The procedure to address a local labor waiver can be found in the OCIDA handbook, which is available upon request.
Prior to issuance of any NYS Tax & Finance ST-60 forms, the Applicant must submit a Contractor Status Report to the Agency.
In consideration of the extension of financial assistance by the Agency Cicero Energy Storage I, LLC (the Company) understands the Local Access Policy and agrees to complete Appendix C of the Agency’s application at the time of the application to the Agency and as part of a request to extend the valid date of the Agency’s tax-exempt certificate for the Project. The Company understands that an Agency tax-exempt certificate is typically valid for 12 months from the effective date of the project inducement and extended thereafter upon request by the Company. The Company further understands that any request for a waiver to this policy must be submitted in writing and approved by the Agency.
I agree to the conditions of this agreement and certify all information provided regarding the construction and employment activities for the project as of 3/4/2020 (date). Company: Cicero Energy Storage I, LLC Representative for Contract: Becky Koze __ Address: 7 Times Square Tower, Suite 3504 City: New York State: NY Zip: 10036 Phone: (215) 287- 4398 Email: bkoze@ convergentep.com Project Address: Totman Road City: Cicero State: NY Zip: 13039 General Contractor: TBD Contact Person:
Address: City: State: Zip: Phone: Email:
Authorized Representative: Title:
Signature:
Onondaga County Industrial Development Agency Page 12
Payment Terms:
Application & Processing Fee (payable at the time of application): $1,000 Legal Deposit (payable at the time of application): $2,500 Agency Fee for Bond Projects: Payable at Closing Agency and Legal Fees for all other projects: Due and Payable at Inducement * A sales tax certificate (ST-60) will not be issued until the Agency Fee is Paid in Full Agency Fees: The project cost is the Total Project Cost from section III A Benefit Sought Fee Charged Mortgage Recording Tax and/or Sales Tax exemptions: 0.01 X the project cost Additional Fee for PILOT Agreement Projects: 0.0025 X the project cost Fee for bond financing, refinancing & refunding: 0.0025 X the project cost Note: For Manufacturing Projects under $10 million the fee is reduced by: 0.0025 X the project cost Agency Legal Fees: The project cost is the Total Project Cost from section III A Fee for first $20 million: 0.0025 of the project cost Fee for expenses above $20 million: 0.00125 of the project cost In addition to the foregoing, Applicants are responsible for payment of all costs and expenses incurred by OCIDA in connection with application or Project including without limitation publication, copying costs, SEQRA compliance and fees and costs to OCIDA’s attorneys, engineers, and consultants. OCIDA reserves the right to require a deposit to cover anticipated costs. Application fees are payable at time application/request is submitted. All fees are non-refundable. Applicants for bond transactions are responsible for payment of a Bond Issuance Charge payable to the State of New York. Applicants are also responsible for payment of post-closing fees and costs associated with the appointment of additional agents.
OCIDA reserves the right to modify this schedule at any time and assess fees and charges in connection with other transactions such as grants of easement or lease or sale of OCIDA-owned property.
Onondaga County Industrial Development Agency Page 13
Information to be Provided by Companies: Each Company agrees that to receive benefits from the Agency it must, whenever requested by the Agency or required under applicable statutes or project documents, provide and certify or cause to be provided and certified such information concerning the Company, its finances, its employees and other topics which shall, from time to time, be necessary or appropriate, including but not limited to, such information as to enable the Agency to make any reports required by law or governmental regulation.
Recapture of Benefits: It is the policy of the Agency to recapture the value of a PILOT, any sales and use tax exemption, and mortgage recording tax exemption in accordance with the Laws of the State and the provisions contained herein. Before receiving benefits, the Company must attest in writing to its understanding of, and agreement to, the recapture provisions contained in State Law and herein. To the extent permitted by State law, the recapture provisions contained herein may be modified from time to time by the Agency at its sole discretion.
Recapture of a PILOT, Sales Tax and the Mortgage Recording Tax Exemptions: If the number of full time equivalent jobs to be maintained or created in connection with a project falls below 75% of the number projected in the Company’s application to the Agency, or if there are material violations of the project agreements, then the value of the property tax, sales and use tax and mortgage recording tax benefits extended to the project by the Agency may be subject to recapture. When deciding whether or not to recapture benefits and the amount of such recapture, the Agency may consider the potential future benefit of the business to the community.
Recapture Payment: The recapture payment paid by the Company to the Agency shall be determined (1) by the difference between any PILOT payments made by the Company and the property taxes that would have been paid by the Company if the property were not under the supervision, jurisdiction or control of the Agency, (2) the value of any mortgage recording tax exemption, if awarded to the Company and (3) the amount of sales and use tax that would have been paid if an exemption was not granted.
Recapture of the PILOT, Sales Tax or Mortgage Recording Tax: The Recapture Schedule for a Payment in Lieu of Tax Agreement, Sales Tax or the Mortgage Recording Tax is as follows: Time from Project Completion Tax Savings Recaptured
Distribution of the Recapture Payment: Any funds recaptured as a result of the recapture payment shall be distributed to the affected taxing jurisdictions in the same proportion as if the payments were paid or owed by the Company on the date of recapture.
Onondaga County Industrial Development Agency Page 14 Additional Conditions for the Recapture of Sales and Use Tax: As of April 1, 2013, New York State law requires Industrial Development Agencies to recapture sales tax benefits where: A project is not entitled to receive the benefits:
Exemptions received exceed the amount authorized by the Agency;
Exemptions are claimed by the Project for unauthorized property or services; or A project fails to use property in the manner required by its IDA agreements. 1. Distribution of Sales and Use Tax. Project operators must cooperate with the Agency in its effort to recapture all sales and use tax benefits received by the Company by promptly paying the recapture amount as determined by the Agency. The amount to be recaptured will be dictated by State Law or this UTEP Policy, which ever may be applicable. The Agency shall remit the recaptured sales and use tax benefits to the State within 30 days of receipt.
2. Compliance Report. Annually, the Agency will file an annual compliance report with the State of New York detailing its recapture terms and its activities to recapture benefits, including any attempt to recapture benefits from an Agency project.
A “Full Time Permanent Employee” shall mean
payroll, who has worked at the project location for a minimum of thirty hours per week for not less than four consecutive weeks and who is entitled to receive the usual and customary fringe benefits extended by Company to other employees with comparable rank, duties and hours; or
Company’s payroll, who have worked at the project location for a combined minimum of thirty hours per week for not less than four consecutive weeks and who are entitled to receive the usual and customary fringe benefits extended by Company to other employees with comparable rank, duties and hours. I have read the foregoing and agree to comply with all the terms and conditions contained therein as well as policies of the Onondaga County Industrial Agency.
Name of Applicant Company _________________________________ Cicero Energy Storage I, LLC Signature of Officer or Authorized Representative: _________________________________ Name & Title of Officer or Authorized Representative: _________________________________ Date: ______________ Onondaga County Industrial Development Agency Page 15
Jobs Listings: In accordance with §858-b(2) of the New York General Municipal Law, the
Applicant understands and agrees that if the Project receives any Financial Assistance from the Agency, except as otherwise provided by collective bargaining agreements, new employment opportunities created as a result of the Project will be listed with the New York State Department of Labor Business Services and with the administrative entity of the service delivery area created by the Workforce Innovation and Opportunity Act of 2014 in which the Project is located. In Onondaga County, please contact CNY Works. Additionally, the applicant is encouraged to review the services provided by JOBSPlus! for candidate matching services.
Are the employees of your company currently covered by a collective bargaining agreement? ☐Yes ☐No If yes, name and location:
Is the labor pool in Onondaga County and/or the CNY Economic Development Region adequate to fill new positions?
☐Yes ☐No Enter Company Name in three (3) places below and sign by an authorized company officer: In consideration of the benefits provided by the Onondaga County Industrial Development Agency (OCIDA), Cicero Energy Storage I, LLC , project beneficiary, also agrees to report to OCIDA on the number of new employment opportunities created in connection with industrial or commercial projects financed by the proceeds of such benefits to be listed with the New York State Department of Labor Business Services and CNY Works.
Cicero Energy Storage I, LLC , project beneficiary, also agrees to report to OCIDA on or before March 1 of each year the status of employment opportunities filed with the New York State Department of Labor Business Services, including the number of new employment opportunities created, the number listed, and the number filled for the year ending the prior December 31. Cicero Energy Storage I, LLC , project beneficiary, further agrees that, to the extent practicable and feasible, and subject to the requirements of any existing collective bargaining agreement, the project beneficiary shall fill at least 10% of new employment opportunities with persons eligible for service under the Workforce Innovation and Opportunity Act of 2014.
Name of Applicant Company: ______________________________________________________ Cicero Energy Storage I, LLC Signature of Officer or Authorized Representative: ______________________________________ Name & Title of Officer or Authorized Representative: ___________________________________ Date: ______________ Onondaga County Industrial Development Agency Page 16 NYS Department of Labor:
Roy Jewell Associate Business Service Representative
roy.jewell@labor.ny.gov www.labor.ny.gov CNY Works Chris Kennedy Business Development Specialist
ckennedy@cnyworks.com www.cnyworks.com Onondaga County Industrial Development Agency Page 17
Agency Board Members
Agency Officers/Staff 1. Robert M. Petrovich
Agency Legal Counsel & Auditor 1. Jeffrey Davis, Esq., Barclay Damon LLP 2. Amanda Mirabito, Esq., Barclay Damon LLP 3. Michael G. Lisson, CPA, Grossman St. Amour Certified Public Accountants PLLC The Applicant has received from the Agency a list of members, officers and staff of the Agency. To the best of my knowledge, no member, officer or employee of the Agency has an interest, whether direct or indirect, in any transaction contemplated by this Application, except as hereinafter described:
Name of Applicant Company _________________________________ Cicero Energy Storage I, LLC Signature of Officer or Authorized Representative: _________________________________ Name & Title of Officer or Authorized Representative: _________________________________ Date: ______________ Onondaga County Industrial Development Agency Page 18
Becky Koze (Name of CEO or other authorized representative of
Applicant) confirms and says that he/she is the ____________________ VP Development (title) of ____________________ Cicero Energy Storage I, LLC (name of corporation or other entity) named in the attached Application (the “Applicant”), that he/she has read the foregoing Application and knows the contents thereof, and hereby represents, understands, and otherwise agrees with the Agency and as follows:
A. First Consideration for Employment: In accordance with §858-b (2) of the New York General Municipal Law, the Applicant understands and agrees that if the Project receives any Financial Assistance from the Agency, except as otherwise provided by collective bargaining agreements, where practicable, the Applicant will first consider persons eligible to participate in WIA programs who shall be referred by the CNY Works for new employment opportunities created as a result of the Project.
B. Other NYS Facilities: In accordance with §862 (1) of the New York General Municipal Law, the Applicant understands and agrees that projects which will result in the removal of an industrial or manufacturing plant of the project occupant from one area of the state to another area of the state or in the abandonment of one or more plants or facilities of the project occupant within the state is ineligible for Agency Financial Assistance, unless otherwise approved by the Agency as reasonably necessary to preserve the competitive position of the project in its respective industry or is reasonably necessary. C. Annual Sales Tax Filings: In accordance with §874(8) of the New York General Municipal Law, the Applicant understands and agrees that if the Project receives any sales tax exemptions as part of the Financial Assistance from the Agency, the Applicant agrees to file, or cause to be filed, with the New York State Department of Taxation and Finance, the annual form prescribed by the Department of Taxation and Finance, describing the value of all sales tax exemptions claimed by the Applicant and all consultants or subcontractors retained by the Applicant.
D. Outstanding Bonds: The Applicant understands and agrees to provide on an annual basis any information regarding bonds, if any, issued by the Agency for the project that is requested by the Comptroller of the State of New York.
E. Employment Reports: The Applicant understands and agrees that, if the Project receives any financial assistance from the Agency, the Applicant agrees to file with the Agency, at least annually or as otherwise required by the Agency, reports regarding the number of people employed at the project site, salary levels, contractor utilization and such other information (collectively, “Employment Reports”) that may be required from time to time on such appropriate forms as designated by the Agency. Failure to provide Employment Reports within 30 days of an Agency request shall be an Event of Default under the PILOT Agreement between the Agency and Applicant and, if applicable, an Event of Default under the Agent Agreement between the Agency and Applicant. In addition, a Notice of Failure to provide the Agency with an Employment Report may be reported to Agency board members, with said report being an agenda item subject to the open Onondaga County Industrial Development Agency Page 19 meetings law.
F. Absence of Conflicts of Interest: The Applicant has received from the Agency a list of the members, officers and employees of the Agency. No member, officer or employee of the Agency has an interest, whether direct or indirect in any transaction contemplated by this Application, except as hereinafter described in Section X.
G. Compliance: The Applicant understands and agrees that it is in substantial compliance with applicable local, state, and federal tax, worker protection, and environmental laws, rules, and regulations.
H. The Applicant understands and agrees that the provisions of Section 862(1) of the New York General Municipal Law, as provided below, will not be violated if financial assistance is provided for the proposed Project:
§ 862. Restrictions on funds of the Agency. (1) No funds of the Agency shall be used in respect of any project if the completion thereof would result in the removal of an industrial or manufacturing plant of the project occupant from one area of the state to another area of the state or in the abandonment of one or more plants or facilities of the project occupant located within the state, provided, however, that neither restriction shall apply if the agency shall determine on the basis of the application before it that the project is reasonably necessary to discourage the project occupant from removing such other plant or facility to a
location outside the state or is reasonably necessary to preserve the competitive position of the project occupant in its respective industry.
I. The Applicant confirms and acknowledges that the owner, occupant or operator receiving financial assistance for the proposed Project is in substantial compliance with applicable local, state, and federal tax, worker protection and environmental laws, rules and regulations.
J. The Applicant confirms and acknowledges that the submission of any knowingly false or knowingly misleading information may lead to the immediate termination of any financial assistance and the reimbursement of an amount equal to all or part of any tax exemption claimed by reason of the Agency’s involvement in the Project.
K. The Applicant confirms and hereby acknowledges that as of the date of this Application, the Applicant is in substantial compliance with all provisions of Article 18-A of the New York General Municipal Law, including, but not limited to, the provision of Section 859- a and Section 862(1) of the New York General Municipal Law.
L. The Applicant and the individual executing this Application on behalf of Applicant acknowledge that the Agency and its counsel will rely on the representations and covenants made in this Application when acting hereon and hereby represents that the statements made herein do not contain any untrue statement of a material fact and do not omit to state a material fact necessary to make the statement contained herein not misleading.
Onondaga County Industrial Development Agency Page 20 M. The OCIDA has the right to request and inspect supporting documentation regarding attestations made on this application.
N. Hold Harmless Agreement: Applicant hereby releases Onondaga County Industrial Development Agency and the members, officers, servants, agents and employees thereof (the "Agency") from, agrees that the Agency shall not be liable for, and agrees to indemnify, defend and hold the Agency harmless from and against any and all liability arising from or expense incurred by: (A) the Agency's examination and processing of, and action pursuant to or upon, the attached Application, regardless of whether or not the Application or the Project described therein or the tax-exemptions and other assistance requested therein are favorably acted upon by the Agency; (B) the Agency's acquisition, construction, and/or installation of the Project described therein and (C) any further action taken by the Agency with respect to the Project, including without limiting the generality of the foregoing, all cause of action and attorney's fees and any other expenses incurred in defending any suits or action which may arise as a result of any of the foregoing. If, for any reason, the Applicant fails to conclude or consummate necessary negotiations, or fails, within a reasonable or specified period of time, to take reasonable, proper or requested action, or withdraws, abandons, cancels or neglects the Application, or if the Agency or the Applicant are unable to reach final agreement with respect to the Project, then, and in the event, upon presentation of an invoice itemizing the same, the
Applicant shall pay to the Agency, its agents or assigns, all costs incurred by the Agency in the process of the Application, including attorney's fees, if any.
Onondaga County Industrial Development Agency Page 21 Name of Applicant Company _______________________________________ Cicero Energy Storage I, LLC Signature of Officer or Authorized Representative: _________________________________ Name & Title of Officer or Authorized Representative: _________________________________ Date: ______________
COUNTY OF ONONDAGA )ss.;
, being first duly sworn, deposes and says:
(Applicant) and that I am duly authorized on behalf of the Applicant to bind the
Applicant. 2. That I have read and attached Application, I Know the contents thereof, and that to the best of my knowledge and belief, this Application and the contents of this Application are true, accurate and complete (Signature of Officer) Subscribed and affirmed to me under penalties of perjury this day of , 20 .
(Notary Public) End of Application Rev 1-9-20 Onondaga County Industrial Development Agency Page 22 Project Narrative Cicero Energy Storage 1 LLC Cicero Energy Storage 1 LLC (“CES1 LLC”) proposes to construct a 5-megawatt (MW) photovoltaic solar facility with a 20 MWh battery energy storage system on lands located at Totman Road and Northern Boulevard in the Town of Cicero (the “Project”). The Project will be constructed on approximately 23 acres of a 90.4-acre parcel, which is situated in the Industrial zoning district. CES1 LLC will lease approximately 91 acres from the landowner, Riccelli Enterprises, LLC. The proposed installation is permitted subject to site plan review and approval by the Town of Cicero Planning Board. CES1 LLC received site plan approval on December 18, 2019.
The solar facility will consist of two (2) 3,200 kW DC photovoltaic arrays including all panels and single axis tracking. Each DC will be coupled with its associated power conversion unit. Other project components will include various electrical appurtenances, such as transformers and inverters. In addition to the photovoltaic system this Project also proposes the construction of a rechargeable lithium-ion battery energy storage facility consisting of six (6) 8-ft x 20-ft containers which house the batteries. The purpose of the battery system is to manage peak load situations where peak solar energy generation and peak demand in the National Grid electric distribution lines do not match. The battery enclosures are equipped with a fully integrated thermal management system, fire suppression systems, and control systems. These containers accompanied by external transformers and other associated equipment, are placed on concrete foundations within a gravel pad and connected to this site’s electrical inverters. From the inverters all electricity generated by the solar facility or stored in the batteries is conveyed to the Point of Interconnection (POI) to National Grid electric distribution lines.
Generally, minor cuts and fills will be required to develop this Project’s access road, posts, and battery equipment pads. The Project proposes to access the solar facility location off of Northern Boulevard. At the entrance to the solar facility, the Project will construct a new 15-ft wide gravel access road. The solar facility will be enclosed with an industrial grade, weatherproof chain link fence, approximately 6 feet in height.
This Project is being constructed pursuant to a Request for Proposal (“RFP”) published by National Grid for Non-Wires Alternative (“NWA”) Solutions to relieve an area of electrical stress served by the Pine Grove Substation. The loading at the Pine Grove Substation serving the Town of Cicero has increased to a level at which it is projected to be overloaded to 100% or higher of its emergency rating in the event of an outage of one of the station transformer banks. In accordance with the RFP, National Grid sought NWA solutions that could provide delivery infrastructure avoidance value or other reliability and operational benefits. A NWA Solution is any strategy that addresses an electrical system need, such as peak demand management or reliability, with a solution that does not involve building new transmission and distribution lines or substation infrastructure. NWA solutions can be any one type or combination of distributed energy resources including, energy efficiency, demand response, energy storage systems, or distributed generation that can be deployed individually or as a portfolio. The implementation of NWA solutions also aligns with principles set forth by the Public Service Commission in regard to reforming the Energy Vision. As such, the Project benefits the immediate community by reducing electrical stress on the Pine Groves Substation and offers a NWA Solution to ensure system reliability and operational benefits, ultimately saving energy costs to ratepayers.
Onondaga County Industrial Development Agency Project Summary 4/7/2020 1. Project Cicero Energy Storage II, LLC 2. Project Number 3101-20-06B 3. Location Town of Cicero 4. School District North Syracuse CSD
5. Tax Parcel(s) 054.-01-02.0 Village - 7.Total Project Cost $ 12,255,581.00 8. Total Jobs 0 Land $ - 8A. Job Retention 0 Site Work $ 394,179 8B: Job Creation 0 Building $ - (Next 5 Years) Furniture & Fixtures $ - Equipment $ 4,281,402 Equipment Subject to NYS Production Exemption $ - Engineering/Architecture Fees $ 80,000 Financial Charges $ - Legal Fees $ - Other- Solar Installation Labor $ 7,500,000 Cost Benefit Analysis Cicero Energy Storage II, LLC Project Description Fiscal Impact ($) Abatement Cost $901,012 Sales Tax $768,000 Mortgage Tax $68,938 Property Tax Relief (PILOT) $64,074 New Investment $12,900,595 PILOT Payments $490,819 Project Wages (10 years) $0 Cicero Energy Storage II LLC is proposing to construct a 5 MW photovoltaic solar facility with a Construction Wages $0 battery energy storage system on lands located at 6256 Island Rd in the Town of Cicero Employee Benefits (10 years) $0 Project Capital Investment $12,255,581 New Sales Tax Generated $0 Agency Fees $154,195 Benefit:Cost Ratio 14 :1 Cicero Energy Storage II, LLC 4/8/2020 A) PILOTS Estimate Table Worksheet Current Revenue Generated by Parcel $7,036 Projected Year 1 Revenue to be generated as a result of the project: $22,500 Total Project Cost $ 12,255,581.00 OCIDA Estimate of Project Value $ 1,070,350.50 Projected MW to be generated 5 North Syracuse Full Tax Payment without Year Onondaga County Town of Cicero Total PILOT Net Exemption
15.0% 16.6% 68.4% 100.0% 2019-2020 $ 1,054 $ 1,168 $ 4,814 $ 7,036 1 $ 3,371 $ 3,734 $ 15,395 $ 22,500 $ 7,176.42 $ (15,324) 2 $ 3,439 $ 3,809 $ 15,702 $ 22,950 $ 7,319.95 $ (15,630) 3 $ 3,507 $ 3,885 $ 16,016 $ 23,409 $ 7,466.35 $ (15,943) 4 $ 3,578 $ 3,963 $ 16,337 $ 23,877 $ 7,615.67 $ (16,262) 5 $ 3,649 $ 4,042 $ 16,664 $ 24,355 $ 7,767.99 $ (16,587) 6 $ 3,722 $ 4,123 $ 16,997 $ 24,842 $ 7,923.35 $ (16,918) 7 $ 3,797 $ 4,205 $ 17,337 $ 25,339 $ 8,081.81 $ (17,257) 8 $ 3,873 $ 4,289 $ 17,683 $ 25,845 $ 8,243.45 $ (17,602) 9 $ 3,950 $ 4,375 $ 18,037 $ 26,362 $ 8,408.32 $ (17,954) 10 $ 4,029 $ 4,463 $ 18,398 $ 26,890 $ 8,576.48 $ (18,313) 11 $ 4,110 $ 4,552 $ 18,766 $ 27,427 $ 8,748.01 $ (18,679) 12 $ 4,192 $ 4,643 $ 19,141 $ 27,976 $ 8,922.97 $ (19,053) 13 $ 4,276 $ 4,736 $ 19,524 $ 28,535 $ 9,101.43 $ (19,434) 14 $ 4,361 $ 4,831 $ 19,914 $ 29,106 $ 9,283.46 $ (19,823) 15 $ 4,448 $ 4,927 $ 20,313 $ 29,688 $ 9,469.13 $ (20,219) 16 $ 4,537 $ 5,026 $ 20,719 $ 30,282 $ 60,335 $ 30,053 17 $ 4,628 $ 5,126 $ 21,133 $ 30,888 $ 61,542 $ 30,654 18 $ 4,721 $ 5,229 $ 21,556 $ 31,505 $ 62,772 $ 31,267 19 $ 4,815 $ 5,333 $ 21,987 $ 32,136 $ 64,028 $ 31,892 20 $ 4,911 $ 5,440 $ 22,427 $ 32,778 $ 65,309 $ 32,530 21 $ 5,010 $ 5,549 $ 22,875 $ 33,434 $ 66,615 $ 33,181 22 $ 5,110 $ 5,660 $ 23,333 $ 34,102 $ 67,947 $ 33,844 23 $ 5,212 $ 5,773 $ 23,800 $ 34,785 $ 69,306 $ 34,521 24 $ 5,316 $ 5,888 $ 24,276 $ 35,480 $ 70,692 $ 35,212 25 $ 5,422 $ 6,006 $ 24,761 $ 36,190 $ 72,106 $ 35,916 $ 107,983 $ 119,607 $ 493,091 $ 720,682 $ 784,756 $ 64,074
1. Fill in all blanks using “none”, “not applicable” or “not available”. If you have any questions about the way to respond, please call the Onondaga County Industrial Development Agency at 315-435-3770. 2. If providing an estimate put “(est.)” after the figure or answer. If more space is needed to answer any specific question, attach a separate sheet.
3. If the OCIDA Board approves benefits, it is the company’s responsibility to obtain and submit all necessary forms and documents. (ST-60, PILOT Agreement) 4. When completed, return this Application by mail or fax to the Agency at the address indicated below. A signed application may also be submitted electronically in PDF format to Nate Stevens at nstevens@ongov.net. An Application will not be considered by the Agency until the Application fee has been received.
5. The Agency will not give final approval for this Application until the Agency receives a completed NYS Full Environmental Assessment Form concerning the Project, which is the subject of this Application. The form is available at http://www.dec.ny.gov/permits/6191.html. 6. Please note the Public Officers Law declares all records in the possession of the OCIDA (with certain limited exceptions) are open to public inspection and copying. If the Applicant is of the opinion that there are elements of the Project which are in the nature of trade secrets which, if disclosed to the public or otherwise widely disseminated, would cause substantial injury to the Applicant’s competitive position, this
Applicant must identify such elements in writing and request that such elements be kept confidential. In accordance with Article 6 of the Public Officer’s Law, the OCIDA may also redact personal, private, and/or proprietary information from publicly disseminated documents.
7. The Applicant will be required to pay the Agency Application fee and, if accepted as a project of the agency, all administrative and legal fees as stated in Section VI of the Application.
This Application Local Access Agreement Employment Plan Conflict of Interest A feasibility statement indicating the need for the requested benefits Description of project, Site Plans/Sketches, and Maps NYS Full Environmental Assessment Form A check payable to the Agency in the amount of $1,000 A check payable to Barclay Damon LLP in the amount of $2,500 9. This Application was adopted by the OCIDA Board on November 19, 2019.
Onondaga County Industrial Development Agency Page 1 It is the policy of the Agency that any project receiving benefits from the Onondaga County Industrial Development Agency will utilize 100% local contractors and local labor for the construction period of the project unless a waiver is granted in writing by the Agency. Return to:
Onondaga County Industrial Development Agency Attn: Nate Stevens 333 W. Washington Street, Suite 130 Syracuse, NY 13202 Phone: 315-435-3770 | Fax: 315-435-3669 nstevens@ongov.net
Please answer all questions. Use “None”, “Not Applicable” and “See Attached” where necessary.
A) Applicant information-company receiving benefits:
Applicant Name: Cicero Energy Storage II, LLC
Applicant Address: 7 Times Square Tower, Suite 3504 New York, NY 10036 Phone: (215) 287- 4398 Fax:
Website:
convergentep.com E-mail: bkoze@convergentep.com Federal ID#: 84-4974909 NAICS:
State and Year of Incorporation/Organization: __________________________________________ 2020 - Delaware Will a Real Estate Holding Company be utilized to own the Project property/ facility? ☐Yes ☐No What is the name of the Real Estate Holding Company:
Federal ID#:
State and Year of Incorporation/Organization:
List of stockholders, members, or partners of Real Estate Holding Company:
________________________________________________________________________________ B) Individual Completing Application:
Name: Becky Koze Title: Vice President of Development Address: 7 Times Square Tower, Suite 3504 New York, NY 10036 Phone: (215) 287- 4398 Fax:
E-mail: bkoze@convergentep.com Onondaga County Industrial Development Agency Page 2 C) Company Contact (if different from individual completing application):
Name:
Title:
Address:
Phone: Cell Phone:
E-mail:
D) Company Counsel:
Name of Attorney: Kevin McAuliffe Firm Name: Barclay Damon LLP Address: 125 E. Jefferson Street Syracuse, New York Phone: (315) 425-2875 Cell Phone: (315) 382-8703 E-mail: kmcauliffe@barclaydamon.com E) Business Organization (check appropriate category):
☐ Corporation ☐Partnership ☐ Public Corporation ☐Joint Venture ☐ Sole Proprietorship ☐Limited Liability Company Others (please specify):
Year Established: 2020 State in which Organization is established: Delaware F) List all stockholders, members, or partners with % of ownership greater than 5% : SEE ATTACHED SHEET.
Name % of ownership Onondaga County Industrial Development Agency Page 3 G) Applicant Business Description:
Please attach a description of your company’s background, products, customers, goods and services. Estimated % of sales within Onondaga County: _______________________________________ 100% Estimated % of sales outside Onondaga County but within New York State: 0 Estimated % of sales outside New York State but within the U.S.: 0 Estimated % of sales outside the U.S.: 0 (*Percentage to equal 100%) H) What percentage of your total annual supplies, raw materials and vendor services are purchased from firms in Onondaga County. Include list of vendors, raw material suppliers and percentages for each. Provide supporting documentation including estimated percentages of local purchases. Please attach this information.
I) Applicant History: If the answer to any of the following is “Yes”, please explain below. If necessary, attach additional information.
☐Yes ☐No plaintiff or defendant in any civil or criminal litigation?
criminal offense (other than a minor traffic violation)? ☐Yes ☐No 3. Has any person listed in Section I ever been in receivership or declared bankruptcy? ☐Yes ☐No Please attach any explanations:
J) Has the Project Beneficiary received assistance from OCIDA, SIDA, New York State or the Onondaga Civic Development Corporation in the past? If yes please attach an explanation and please give year, project name, description of benefits and address of project. ☐Yes ☐No Onondaga County Industrial Development Agency Page 4
A) Project Location: Location where the investment will take place. If company is moving, the new location should be entered here and the current location should be in Section I. Address: 6256 Island Road Legal Address (if different):
City: Village/Town: Cicero Zip Code: 13039 School District: North Syracuse Tax Map Parcel ID(s): 054-01-02.0 Current Assessed Value: $204,000 Sq. Footage of Existing Building: N/A Census Tract:
B) Type (Check all that apply):
☐New construction ☐Purchase of machinery and/or equipment ☐Expansion/Addition to current facilities ☐Brownfield/Remediated Brownfield ☐Renovation of existing facility ☐LEED Certification ☐Acquisition of existing facility/property ☐Other:
☐Demolition and Construction C) Please attach a summary of how this project will help your business grow. Will it set the company up for revenue growth? Will it mitigate cost? Will it provide more flexibility? D) Description of Project: Please provide a detailed narrative of the proposed Project. This narrative should include, but is not limited to:
☐ (i) the size of the Project in square feet and a breakdown of square footage per each intended use;
☐ (ii) the size of the lot upon which the Project sits or is to be constructed; ☐ (iii) the current use of the site and the intended use of the site upon completion of the Project;
☐ (iv) the principal products to be produced and/or the principal activities that will occur on the Project site; and ☐ (v) an indication as to why the Applicant is undertaking the Project and the need for the requested benefits. Please separately attach the description and any copies of site plans, sketches or maps.
Onondaga County Industrial Development Agency Page 5 E) Select Project Type for all end users at Project site (you may check more than one): **Please check any and all end users as identified below ☐ Industrial ☐Bank Office ☐ Acquisition of Existing Facility ☐Retail ☐ Housing ☐Mixed Use ☐ Equipment Purchase ☐Facility for Aging ☐ Multi-Tenant ☐Civic Facility (not for profit) ☐ Commercial ☐Other 5MW Photovoltaic solar facility/15 MWh BESS F) For the Agency to consider this Project, please provide the following information: 1. Does the project consist of new construction or expansion or substantial renovation of an existing facility?
☐Yes ☐No 2. Will the project create new employment opportunities or retain existing jobs that may otherwise be lost?
☐Yes ☐No 3. Does the project beneficiary serve a customer base primarily outside of Onondaga County?
☐Yes ☐No G) Will the completion of the Project result in the removal of an industrial or manufacturing plant of the company from one area of the state to another area of the state OR in the abandonment of one or more plants or facilities of the company located within the state? Please explain if you answer “Yes” by attaching a response.
☐Yes ☐No H) Please attach a description of any compelling circumstances the Agency should be aware of while reviewing this application.
I) Environmental Information 1. Please attach the appropriate Environmental Impact Forms to your application. Here is a link to the SEQR forms:
a. http://www.dec.ny.gov/permits/6191.html
☐Yes ☐No If yes, please attach an explanation.
Onondaga County Industrial Development Agency Page 6
A) Project Costs and Finances Description of Costs Total % of Total Total Private Expenditure Budget Budget to be (should be less than or Amount Procured in equal to total budget Onondaga amount) County Land Acquisition N/A Site Work/Demo 394,179 Building Construction & Renovation N/A Furniture & Fixtures N/A Equipment (Solar) 4,281,402 Equipment Subject to NYS Production Sales Tax Engineering/Architect Exemption 80,000 sFinancial Charges TBD Legal TBD Other (BESS) 7,500,000 Management/Developer Fees 0 Total Project Cost 12,255,581 Note: Do not include OCIDA fees, OCIDA application fees or OCIDA legal fees as part of the Total Project Cost. You may attach a separate chart if needed.
B) TOTAL Capital Costs $ 12,255,581 Project refinancing: estimated amount (for refinancing of existing debt only) $0 Sources of Funds for Project Costs:
1. Bank Financing $ _______________
2. Equity (excluding equity that is attributed to grants/tax credits) $ 3,063,881 3. Tax Exempt Bond Issuance (if applicable) $ _______________ 0 4. Taxable Bond Issuance (if applicable) $ 0 Onondaga County Industrial Development Agency Page 7
and tax credits) $ 0 -Identify each state and federal grant/credit:
$ $ $ 6. Total Sources of Funds for Project Costs $ _______________
C) Employment and Payroll Information *Full Time Equivalent (FTE) is defined as one employee working no less than 40 hours per week or two or more employees together working a total of 40 hours per week.
☐Yes ☐No If yes, provide number of FTE jobs at the facility:
Estimate the number of FTE jobs to be retained as a result of this Project: 0 Estimate the number of construction jobs to be created by this Project:
Estimate the average length of construction jobs to be created (months):
Current annual payroll at facility:
Average annual growth rate of wages:
Please list, if any, benefits that will be available to either full and/or part time employees:
Average annual benefit paid by the company ($ or % salary) per FTE job:
Average growth rate of benefit cost:
Amount or percent of wage employees pay for benefits:
Provide an estimate of the number of residents in the Economic Development Region (Onondaga, Madison, Cayuga, Oneida, Oswego, and Cortland Counties) to fill new FTE jobs:
Onondaga County Industrial Development Agency Page 8 D) New Employment Benefits N/A i. Complete the following chart indicating the number of FTE jobs presently employed at the Project and the number of FTE jobs that will be created at the Project site at the end of the first, second, third, fourth and fifth years after the Project is completed. Jobs should be listed by title of category (see below), including FTE independent contractors or employees of independent contractors that work at the Project location. Do not include construction workers.
ii. Feel free to include additional information or a substitute chart if you think additional material would add clarity.
Current & Planned Full Salary Current Estimated Number of FTE Jobs Time Occupations (Job (Annual or Number of added each year after project Titles) Hourly) FTEs Year 1 Year 2 Year 3 Year 4 Year 5 completion Job Creation Subtotal For purposes of completing the chart, please list the job titles that will be increasing in number. If possible, please attach a brief description that outlines what each job entails. If you prefer, you may attach a job chart of your own that outlines the job growth projections regarding the project.
E) Financial Assistance sought (estimated values):
☐ Real Property Tax Abatement (PILOT): TBD ☐ Mortgage Recording Tax Exemption (.75% of amount mortgaged): 68,937.75 ☐ Sales and Use Tax Exemption (4% Local, 4% State): 768,000 ☐ Tax Exempt Bond Financing (Amount Requested): N/A ☐ Taxable Bond Financing (Amount Requested): N/A Onondaga County Industrial Development Agency Page 9 F) Mortgage Recording Tax Exemption Benefit Calculator: Amount of mortgage that would be subject to mortgage recording tax:
Mortgage Amount (include sum total of construction/permanent/ bridge financing): $ 9,191,700 Estimated Mortgage Recording Tax Exemption Benefit (product of mortgage amount as indicated above, multiplied by .0075): $ 68,937.75 G) Sales and Use Tax Benefit Calculator: Gross amount of costs for goods and services that are subject to State and local Sales and US tax – said amount to benefit from the Agency’s Sales and Use Tax exemption benefit:
$ 9,600,000 Estimated State and local Sales and Use Tax Benefit (product of 8% multiplied by the figure, above) (This should match the amount in section “E” on this page, this calculation only exists to help you with your estimate):
$ 768,000 Onondaga County Industrial Development Agency Page 10
Section IV of this Application will be: (i) completed by IDA Staff based upon information contained within the Application, and (ii) provided to the Applicant for ultimate inclusion as part of this completed Application prior to the completed application being provided to the OCIDA Board.
A) PILOTS Estimate Table Worksheet OCIDA estimate of current value New construction and renovation costs OCIDA estimate of increase in value OCIDA estimated value of completed project OCIDA estimate of taxes that would have been collected if the project did not occur Scheduled PILOT payments PILOT Exemption County Local School Total Full Tax Net Exemption Year % PILOT PILOT PILOT PILOT Payment Amount Amount Amount w/o PILOT
Estimates provided are based on current property tax rates and assessment value (current as of date of application submission) and have been calculated by IDA staff Onondaga County Industrial Development Agency Page 11
In absence of a waiver permitting otherwise, every project seeking the assistance of the Onondaga County Industrial Development Agency (Agency) must use local general contractors, sub- contractors, and labor for one-hundred percent (100%) of the construction of new, expanded, or renovated facilities. The project’s construction or project manager need not be a local company. Noncompliance may result in the revocation and/or recapture of all benefits extended to the project by the Agency. Local Labor is defined as laborers permanently residing in the State of New York counties of Cayuga, Cortland, Herkimer, Jefferson, Madison, Oneida, Onondaga, Oswego, Tompkins, and Wayne. Local (General/Sub) Contractor is defined as a contractor operating a permanent office in the State of New York counties of Cayuga, Cortland, Herkimer, Jefferson, Madison, Oneida, Onondaga, Oswego, Tompkins and Wayne. The Agency may determine on a case-by-case basis to waive the Local Access Policy for a project or for a portion of a project where consideration of warranty issues, necessity of specialized skills, significant cost differentials between local and non-local services or other compelling circumstances exist. The procedure to address a local labor waiver can be found in the OCIDA handbook, which is available upon request.
Prior to issuance of any NYS Tax & Finance ST-60 forms, the Applicant must submit a Contractor Status Report to the Agency.
In consideration of the extension of financial assistance by the Agency Cicero Energy Storage II, LLC (the Company) understands the Local Access Policy and agrees to complete Appendix C of the Agency’s application at the time of the application to the Agency and as part of a request to extend the valid date of the Agency’s tax-exempt certificate for the Project. The Company understands that an Agency tax-exempt certificate is typically valid for 12 months from the effective date of the project inducement and extended thereafter upon request by the Company. The Company further understands that any request for a waiver to this policy must be submitted in writing and approved by the Agency.
I agree to the conditions of this agreement and certify all information provided regarding the construction and employment activities for the project as of 3/4/2020 (date). Company: Cicero Energy Storage II, LLC Representative for Contract: Becky Koze __ Address: 7 Times Square Tower, Suite 3504 City: New York State: NY Zip: 10036 Phone: (215) 287- 4398 Email: bkoze@convergentep.com Project Address: 6256 Island Road City: Cicero State: NY Zip: 13039 General Contractor: TBD Contact Person:
Address: City: State: Zip: Phone: Email:
Authorized Representative: Title:
Signature:
Onondaga County Industrial Development Agency Page 12
Payment Terms:
Application & Processing Fee (payable at the time of application): $1,000 Legal Deposit (payable at the time of application): $2,500 Agency Fee for Bond Projects: Payable at Closing Agency and Legal Fees for all other projects: Due and Payable at Inducement * A sales tax certificate (ST-60) will not be issued until the Agency Fee is Paid in Full Agency Fees: The project cost is the Total Project Cost from section III A Benefit Sought Fee Charged Mortgage Recording Tax and/or Sales Tax exemptions: 0.01 X the project cost Additional Fee for PILOT Agreement Projects: 0.0025 X the project cost Fee for bond financing, refinancing & refunding: 0.0025 X the project cost Note: For Manufacturing Projects under $10 million the fee is reduced by: 0.0025 X the project cost Agency Legal Fees: The project cost is the Total Project Cost from section III A Fee for first $20 million: 0.0025 of the project cost Fee for expenses above $20 million: 0.00125 of the project cost In addition to the foregoing, Applicants are responsible for payment of all costs and expenses incurred by OCIDA in connection with application or Project including without limitation publication, copying costs, SEQRA compliance and fees and costs to OCIDA’s attorneys, engineers, and consultants. OCIDA reserves the right to require a deposit to cover anticipated costs. Application fees are payable at time application/request is submitted. All fees are non-refundable. Applicants for bond transactions are responsible for payment of a Bond Issuance Charge payable to the State of New York. Applicants are also responsible for payment of post-closing fees and costs associated with the appointment of additional agents.
OCIDA reserves the right to modify this schedule at any time and assess fees and charges in connection with other transactions such as grants of easement or lease or sale of OCIDA-owned property.
Onondaga County Industrial Development Agency Page 13
Information to be Provided by Companies: Each Company agrees that to receive benefits from the Agency it must, whenever requested by the Agency or required under applicable statutes or project documents, provide and certify or cause to be provided and certified such information concerning the Company, its finances, its employees and other topics which shall, from time to time, be necessary or appropriate, including but not limited to, such information as to enable the Agency to make any reports required by law or governmental regulation.
Recapture of Benefits: It is the policy of the Agency to recapture the value of a PILOT, any sales and use tax exemption, and mortgage recording tax exemption in accordance with the Laws of the State and the provisions contained herein. Before receiving benefits, the Company must attest in writing to its understanding of, and agreement to, the recapture provisions contained in State Law and herein. To the extent permitted by State law, the recapture provisions contained herein may be modified from time to time by the Agency at its sole discretion.
Recapture of a PILOT, Sales Tax and the Mortgage Recording Tax Exemptions: If the number of full time equivalent jobs to be maintained or created in connection with a project falls below 75% of the number projected in the Company’s application to the Agency, or if there are material violations of the project agreements, then the value of the property tax, sales and use tax and mortgage recording tax benefits extended to the project by the Agency may be subject to recapture. When deciding whether or not to recapture benefits and the amount of such recapture, the Agency may consider the potential future benefit of the business to the community.
Recapture Payment: The recapture payment paid by the Company to the Agency shall be determined (1) by the difference between any PILOT payments made by the Company and the property taxes that would have been paid by the Company if the property were not under the supervision, jurisdiction or control of the Agency, (2) the value of any mortgage recording tax exemption, if awarded to the Company and (3) the amount of sales and use tax that would have been paid if an exemption was not granted.
Recapture of the PILOT, Sales Tax or Mortgage Recording Tax: The Recapture Schedule for a Payment in Lieu of Tax Agreement, Sales Tax or the Mortgage Recording Tax is as follows: Time from Project Completion Tax Savings Recaptured
Distribution of the Recapture Payment: Any funds recaptured as a result of the recapture payment shall be distributed to the affected taxing jurisdictions in the same proportion as if the payments were paid or owed by the Company on the date of recapture.
Onondaga County Industrial Development Agency Page 14 Additional Conditions for the Recapture of Sales and Use Tax: As of April 1, 2013, New York State law requires Industrial Development Agencies to recapture sales tax benefits where: A project is not entitled to receive the benefits:
Exemptions received exceed the amount authorized by the Agency;
Exemptions are claimed by the Project for unauthorized property or services; or A project fails to use property in the manner required by its IDA agreements. 1. Distribution of Sales and Use Tax. Project operators must cooperate with the Agency in its effort to recapture all sales and use tax benefits received by the Company by promptly paying the recapture amount as determined by the Agency. The amount to be recaptured will be dictated by State Law or this UTEP Policy, which ever may be applicable. The Agency shall remit the recaptured sales and use tax benefits to the State within 30 days of receipt.
2. Compliance Report. Annually, the Agency will file an annual compliance report with the State of New York detailing its recapture terms and its activities to recapture benefits, including any attempt to recapture benefits from an Agency project.
A “Full Time Permanent Employee” shall mean
payroll, who has worked at the project location for a minimum of thirty hours per week for not less than four consecutive weeks and who is entitled to receive the usual and customary fringe benefits extended by Company to other employees with comparable rank, duties and hours; or
Company’s payroll, who have worked at the project location for a combined minimum of thirty hours per week for not less than four consecutive weeks and who are entitled to receive the usual and customary fringe benefits extended by Company to other employees with comparable rank, duties and hours. I have read the foregoing and agree to comply with all the terms and conditions contained therein as well as policies of the Onondaga County Industrial Agency.
Name of Applicant Company _________________________________ Cicero Energy Storage II, LLC Signature of Officer or Authorized Representative: _________________________________ Name & Title of Officer or Authorized Representative: _________________________________ Date: ______________ Onondaga County Industrial Development Agency Page 15
Jobs Listings: In accordance with §858-b(2) of the New York General Municipal Law, the
Applicant understands and agrees that if the Project receives any Financial Assistance from the Agency, except as otherwise provided by collective bargaining agreements, new employment opportunities created as a result of the Project will be listed with the New York State Department of Labor Business Services and with the administrative entity of the service delivery area created by the Workforce Innovation and Opportunity Act of 2014 in which the Project is located. In Onondaga County, please contact CNY Works. Additionally, the applicant is encouraged to review the services provided by JOBSPlus! for candidate matching services.
Are the employees of your company currently covered by a collective bargaining agreement? ☐Yes ☐No If yes, name and location:
Is the labor pool in Onondaga County and/or the CNY Economic Development Region adequate to fill new positions?
☐Yes ☐No Enter Company Name in three (3) places below and sign by an authorized company officer: In consideration of the benefits provided by the Onondaga County Industrial Development Agency (OCIDA), Cicero Energy Storage II, LLC , project beneficiary, also agrees to report to OCIDA on the number of new employment opportunities created in connection with industrial or commercial projects financed by the proceeds of such benefits to be listed with the New York State Department of Labor Business Services and CNY Works.
Cicero Energy Storage II, LLC , project beneficiary, also agrees to report to OCIDA on or before March 1 of each year the status of employment opportunities filed with the New York State Department of Labor Business Services, including the number of new employment opportunities created, the number listed, and the number filled for the year ending the prior December 31. Cicero Energy Storage II, LLC , project beneficiary, further agrees that, to the extent practicable and feasible, and subject to the requirements of any existing collective bargaining agreement, the project beneficiary shall fill at least 10% of new employment opportunities with persons eligible for service under the Workforce Innovation and Opportunity Act of 2014.
Name of Applicant Company: ______________________________________________________ Cicero Energy Storage II, LLC Signature of Officer or Authorized Representative: ______________________________________ Name & Title of Officer or Authorized Representative: ___________________________________ Date: ______________ Onondaga County Industrial Development Agency Page 16 NYS Department of Labor:
Roy Jewell Associate Business Service Representative
roy.jewell@labor.ny.gov www.labor.ny.gov CNY Works Chris Kennedy Business Development Specialist
ckennedy@cnyworks.com www.cnyworks.com Onondaga County Industrial Development Agency Page 17
Agency Board Members
Agency Officers/Staff 1. Robert M. Petrovich
Agency Legal Counsel & Auditor 1. Jeffrey Davis, Esq., Barclay Damon LLP 2. Amanda Mirabito, Esq., Barclay Damon LLP 3. Michael G. Lisson, CPA, Grossman St. Amour Certified Public Accountants PLLC The Applicant has received from the Agency a list of members, officers and staff of the Agency. To the best of my knowledge, no member, officer or employee of the Agency has an interest, whether direct or indirect, in any transaction contemplated by this Application, except as hereinafter described:
Name of Applicant Company _________________________________ Cicero Energy Storage II, LLC Signature of Officer or Authorized Representative: _________________________________ Name & Title of Officer or Authorized Representative: _________________________________ Date: ______________ Onondaga County Industrial Development Agency Page 18
Becky Koze (Name of CEO or other authorized representative of
Applicant) confirms and says that he/she is the ____________________ VP Development (title) of ____________________ Cicero Energy Storage II, LLC (name of corporation or other entity) named in the attached Application (the “Applicant”), that he/she has read the foregoing Application and knows the contents thereof, and hereby represents, understands, and otherwise agrees with the Agency and as follows:
A. First Consideration for Employment: In accordance with §858-b (2) of the New York General Municipal Law, the Applicant understands and agrees that if the Project receives any Financial Assistance from the Agency, except as otherwise provided by collective bargaining agreements, where practicable, the Applicant will first consider persons eligible to participate in WIA programs who shall be referred by the CNY Works for new employment opportunities created as a result of the Project.
B. Other NYS Facilities: In accordance with §862 (1) of the New York General Municipal Law, the Applicant understands and agrees that projects which will result in the removal of an industrial or manufacturing plant of the project occupant from one area of the state to another area of the state or in the abandonment of one or more plants or facilities of the project occupant within the state is ineligible for Agency Financial Assistance, unless otherwise approved by the Agency as reasonably necessary to preserve the competitive position of the project in its respective industry or is reasonably necessary. C. Annual Sales Tax Filings: In accordance with §874(8) of the New York General Municipal Law, the Applicant understands and agrees that if the Project receives any sales tax exemptions as part of the Financial Assistance from the Agency, the Applicant agrees to file, or cause to be filed, with the New York State Department of Taxation and Finance, the annual form prescribed by the Department of Taxation and Finance, describing the value of all sales tax exemptions claimed by the Applicant and all consultants or subcontractors retained by the Applicant.
D. Outstanding Bonds: The Applicant understands and agrees to provide on an annual basis any information regarding bonds, if any, issued by the Agency for the project that is requested by the Comptroller of the State of New York.
E. Employment Reports: The Applicant understands and agrees that, if the Project receives any financial assistance from the Agency, the Applicant agrees to file with the Agency, at least annually or as otherwise required by the Agency, reports regarding the number of people employed at the project site, salary levels, contractor utilization and such other information (collectively, “Employment Reports”) that may be required from time to time on such appropriate forms as designated by the Agency. Failure to provide Employment Reports within 30 days of an Agency request shall be an Event of Default under the PILOT Agreement between the Agency and Applicant and, if applicable, an Event of Default under the Agent Agreement between the Agency and Applicant. In addition, a Notice of Failure to provide the Agency with an Employment Report may be reported to Agency board members, with said report being an agenda item subject to the open Onondaga County Industrial Development Agency Page 19 meetings law.
F. Absence of Conflicts of Interest: The Applicant has received from the Agency a list of the members, officers and employees of the Agency. No member, officer or employee of the Agency has an interest, whether direct or indirect in any transaction contemplated by this Application, except as hereinafter described in Section X.
G. Compliance: The Applicant understands and agrees that it is in substantial compliance with applicable local, state, and federal tax, worker protection, and environmental laws, rules, and regulations.
H. The Applicant understands and agrees that the provisions of Section 862(1) of the New York General Municipal Law, as provided below, will not be violated if financial assistance is provided for the proposed Project:
§ 862. Restrictions on funds of the Agency. (1) No funds of the Agency shall be used in respect of any project if the completion thereof would result in the removal of an industrial or manufacturing plant of the project occupant from one area of the state to another area of the state or in the abandonment of one or more plants or facilities of the project occupant located within the state, provided, however, that neither restriction shall apply if the agency shall determine on the basis of the application before it that the project is reasonably necessary to discourage the project occupant from removing such other plant or facility to a
location outside the state or is reasonably necessary to preserve the competitive position of the project occupant in its respective industry.
I. The Applicant confirms and acknowledges that the owner, occupant or operator receiving financial assistance for the proposed Project is in substantial compliance with applicable local, state, and federal tax, worker protection and environmental laws, rules and regulations.
J. The Applicant confirms and acknowledges that the submission of any knowingly false or knowingly misleading information may lead to the immediate termination of any financial assistance and the reimbursement of an amount equal to all or part of any tax exemption claimed by reason of the Agency’s involvement in the Project.
K. The Applicant confirms and hereby acknowledges that as of the date of this Application, the Applicant is in substantial compliance with all provisions of Article 18-A of the New York General Municipal Law, including, but not limited to, the provision of Section 859- a and Section 862(1) of the New York General Municipal Law.
L. The Applicant and the individual executing this Application on behalf of Applicant acknowledge that the Agency and its counsel will rely on the representations and covenants made in this Application when acting hereon and hereby represents that the statements made herein do not contain any untrue statement of a material fact and do not omit to state a material fact necessary to make the statement contained herein not misleading.
Onondaga County Industrial Development Agency Page 20 M. The OCIDA has the right to request and inspect supporting documentation regarding attestations made on this application.
N. Hold Harmless Agreement: Applicant hereby releases Onondaga County Industrial Development Agency and the members, officers, servants, agents and employees thereof (the "Agency") from, agrees that the Agency shall not be liable for, and agrees to indemnify, defend and hold the Agency harmless from and against any and all liability arising from or expense incurred by: (A) the Agency's examination and processing of, and action pursuant to or upon, the attached Application, regardless of whether or not the Application or the Project described therein or the tax-exemptions and other assistance requested therein are favorably acted upon by the Agency; (B) the Agency's acquisition, construction, and/or installation of the Project described therein and (C) any further action taken by the Agency with respect to the Project, including without limiting the generality of the foregoing, all cause of action and attorney's fees and any other expenses incurred in defending any suits or action which may arise as a result of any of the foregoing. If, for any reason, the Applicant fails to conclude or consummate necessary negotiations, or fails, within a reasonable or specified period of time, to take reasonable, proper or requested action, or withdraws, abandons, cancels or neglects the Application, or if the Agency or the Applicant are unable to reach final agreement with respect to the Project, then, and in the event, upon presentation of an invoice itemizing the same, the
Applicant shall pay to the Agency, its agents or assigns, all costs incurred by the Agency in the process of the Application, including attorney's fees, if any.
Onondaga County Industrial Development Agency Page 21 Name of Applicant Company _______________________________________ Cicero Energy Storage II, LLC Signature of Officer or Authorized Representative: _________________________________ Name & Title of Officer or Authorized Representative: _________________________________ Date: ______________
COUNTY OF ONONDAGA )ss.;
, being first duly sworn, deposes and says:
(Applicant) and that I am duly authorized on behalf of the Applicant to bind the
Applicant. 2. That I have read and attached Application, I Know the contents thereof, and that to the best of my knowledge and belief, this Application and the contents of this Application are true, accurate and complete (Signature of Officer) Subscribed and affirmed to me under penalties of perjury this day of , 20 .
(Notary Public) End of Application Rev 1-9-20 Onondaga County Industrial Development Agency Page 22 Project Narrative Cicero Energy Storage 2 LLC Cicero Energy Storage 2 LLC (“CES2 LLC”) proposes to construct a 5-megawatt (MW) photovoltaic solar facility with a 15 MWh battery energy storage system on lands located at 6256 Island Road in the Town of Cicero (the “Project”). The Project will be constructed on approximately 21 acres of a 39.5-acre parcel, which is situated in the Industrial zoning district. CES2 LLC will lease approximately 41.7 acres from the landowner, Lombardi Family Properties Inc.
The proposed installation is permitted subject to site plan review and approval by the Town of Cicero Planning Board. CES2 LLC received site plan approval on December 18, 2019.
The solar facility will consist of two (2) 3,200 kW DC photovoltaic arrays including all panels and single axis tracking. Each DC will be coupled with its associated power conversion unit. Other project components will include various electrical appurtenances, such as transformers and inverters. In addition to the photovoltaic system this Project also proposes the construction of a rechargeable lithium-ion battery energy storage facility consisting of six (6) 8-ft x 20-ft containers which house the batteries. The purpose of the battery system is to manage peak load situations where peak solar energy generation and peak demand in the National Grid electric distribution lines do not match. The battery enclosures are equipped with a fully integrated thermal management system, fire suppression systems, and control systems. These containers accompanied by external transformers and other associated equipment, are placed on concrete foundations within a gravel pad and connected to this site’s electrical inverters. From the inverters all electricity generated by the solar facility or stored in the batteries is conveyed to the Point of Interconnection (POI) to National Grid electric distribution lines.
Generally, minor cuts and fills will be required to develop this Project’s access road, posts, and battery equipment pads. The Project proposes to access the solar facility location off of Island Road. At the entrance to the solar facility, the Project will construct a new 15-ft wide gravel access road. The solar facility will be enclosed with an industrial grade, weatherproof chain link fence, approximately 6 feet in height.
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