October 2024 – Audit — 10-10-24 OCIDA Regular Meeting Board Packet ================================================================== 335 MONTGOMERY STREET, FLOOR 2M, SYRACUSE, NY 13202 315.435.3770 • ECONOMICDEVELOPMENT@ONGOV.NET • ONGOVED.COM Regular Meeting Agenda October 10, 2024 8:30 AM Call to Order the Regular Meeting of the Agency A. Approval of Minutes: September 12, 2024 B. Treasurer’s Report C. Payment of Bills D. Conflict of Interest Action Items: 1. Homegrown2, LLC (3101-24-06A) Initial Meeting The applicant is proposing to construct a 110-suite extended stay hotel in the Town of Salina. Agency Action Requested: a. A resolution of the Board accepting the application from the company, inducing the project and authorizing a public hearing. Representative: Kevin McAuliffe 2. Breckenridge Group Syracuse New York, LLC (3101-15-12A) Modification Meeting Breckenridge is requesting the Board to consent to the sale of its interest in its 2016 project facility. Agency Action Requested: a. A resolution of the Board consenting to the sale and assignment of the right, title and interest in a certain project facility by Breckenridge Group Syracuse New York, LLC to SO Aspen Syracuse Owner LLC. Representative: Chris Andreucci, Harris Beach 3. Review of 2025 Agency Budget Agency Action Requested: a. Approval of the 2025 Agency Budget. Representative: Nate Stevens, Treasurer 335 MONTGOMERY STREET, FLOOR 2M, SYRACUSE, NY 13202 315.435.3770 • ECONOMICDEVELOPMENT@ONGOV.NET • ONGOVED.COM Regular Meeting Agenda October 10, 2024 8:30 AM Call to Order the Regular Meeting of the Agency A. Approval of Minutes: September 12, 2024 B. Treasurer’s Report C. Payment of Bills D. Conflict of Interest Action Items: 1. Homegrown2, LLC (3101-24-06A) Initial Meeting The applicant is proposing to construct a 110-suite extended stay hotel in the Town of Salina. Agency Action Requested: a. A resolution of the Board accepting the application from the company, inducing the project and authorizing a public hearing. Representative: Kevin McAuliffe 2. Breckenridge Group Syracuse New York, LLC (3101-15-12A) Modification Meeting Breckenridge is requesting the Board to consent to the sale of its interest in its 2016 project facility. Agency Action Requested: a. A resolution of the Board consenting to the sale and assignment of the right, title and interest in a certain project facility by Breckenridge Group Syracuse New York, LLC to SO Aspen Syracuse Owner LLC. Representative: Chris Andreucci, Harris Beach 3. Review of 2025 Agency Budget Agency Action Requested: a. Approval of the 2025 Agency Budget. Representative: Nate Stevens, Treasurer Page 1 of 107 4. Engineering Services – Contract Authorization Agency Action Requested: a. A resolution of the Board ratifying the execution and delivery of a contract with Barton and Loguidice, D.P.C. for work performed in connection with the environmental review of property under consideration for acquisition. Representative: Robert Petrovich, Executive Director 5. Reimbursement Acceptance Agency Action Requested: a. A resolution of the Board authorizing acceptance of funds for reimbursement in connection with the settlement agreement whereby the Agency acquired 3 parcels, in lieu of condemnation, at the White Pine Commerce Park. Representative: Jeff Davis, Agency Counsel Adjourn Page 2 of 107 Regular Meeting Minutes September 12, 2024 A regular meeting of the Onondaga County Industrial Development Agency was held on Thursday, September 12, 2024, at 335 Montgomery Street, Floor 2M, Syracuse, New York. Patrick Hogan called the meeting to order at 8:31 AM with the following: PRESENT: Patrick Hogan Susan Stanczyk Janice Herzog Kevin Ryan Elizabeth Dreyfuss Cydney Johnson ABSENT: Fanny Villarreal Page 1 of 107 4. Engineering Services – Contract Authorization Agency Action Requested: a. A resolution of the Board ratifying the execution and delivery of a contract with Barton and Loguidice, D.P.C. for work performed in connection with the environmental review of property under consideration for acquisition. Representative: Robert Petrovich, Executive Director 5. Reimbursement Acceptance Agency Action Requested: a. A resolution of the Board authorizing acceptance of funds for reimbursement in connection with the settlement agreement whereby the Agency acquired 3 parcels, in lieu of condemnation, at the White Pine Commerce Park. Representative: Jeff Davis, Agency Counsel Adjourn Page 2 of 107 Regular Meeting Minutes September 12, 2024 A regular meeting of the Onondaga County Industrial Development Agency was held on Thursday, September 12, 2024, at 335 Montgomery Street, Floor 2M, Syracuse, New York. Patrick Hogan called the meeting to order at 8:31 AM with the following: PRESENT: Patrick Hogan Susan Stanczyk Janice Herzog Kevin Ryan Elizabeth Dreyfuss Cydney Johnson ABSENT: Fanny Villarreal ALSO PRESENT: Robert M. Petrovich, Executive Director Jeffrey Davis, Esq., Agency Counsel Nate Stevens, Treasurer Alexis Rodriguez, Secretary McKenna Moonan, Assistant Secretary Robert Schoeneck, Office of Economic Development Grazi Zazzara, Paradise Companies 10, LLC APPROVAL OF REGULAR MEETING MINUTES – August 8, 2024 Upon motion by Janice Herzog, seconded by Kevin Ryan, the OCIDA Board approved the regular meeting minutes of August 8, 2024. Motion was carried. TREASURER’S REPORT Nate Stevens gave a brief overview of the Treasurer’s Report for the month of August 2024. Page 3 of 107 Upon motion by Susan Stanczyk, seconded by Janice Herzog, the OCIDA Board approved the Treasurer’s Report for the month of August 2024. Motion was carried. ALSO PRESENT: Robert M. Petrovich, Executive Director Jeffrey Davis, Esq., Agency Counsel Nate Stevens, Treasurer Alexis Rodriguez, Secretary McKenna Moonan, Assistant Secretary Robert Schoeneck, Office of Economic Development Grazi Zazzara, Paradise Companies 10, LLC APPROVAL OF REGULAR MEETING MINUTES – August 8, 2024 Upon motion by Janice Herzog, seconded by Kevin Ryan, the OCIDA Board approved the regular meeting minutes of August 8, 2024. Motion was carried. TREASURER’S REPORT Nate Stevens gave a brief overview of the Treasurer’s Report for the month of August 2024. Page 3 of 107 Upon motion by Susan Stanczyk, seconded by Janice Herzog, the OCIDA Board approved the Treasurer’s Report for the month of August 2024. Motion was carried. PAYMENT OF BILLS Nate Stevens gave a brief review of the Payment of Bills. Upon motion by Susan Stanczyk, seconded by Janice Herzog, the OCIDA Board approved the Payment of Bills. Motion was carried. PAYMENT OF BILLS Nate Stevens gave a brief review of the Payment of Bills. Upon motion by Susan Stanczyk, seconded by Janice Herzog, the OCIDA Board approved the Payment of Bills. Motion was carried. CONFLICT OF INTEREST DISCLOSURE The conflict of interest was circulated and there were no conflicts. CONFLICT OF INTEREST DISCLOSURE The conflict of interest was circulated and there were no conflicts. ACTION ITEMS 1. Paradise Companies 10, LLC (Project #3101-24-05A) Initial Meeting – Paradise Companies 10, LLC is proposing to demolish the existing dilapidated building located at 111 and 117 East Seneca Street in the Town of Manlius and construct an approximately 14,520 square foot mixed-use building in its place. The new building will contain approximately 13 residential units and a small commercial space. The applicant is requesting exemptions from certain sales and use taxes, real property taxes, real estate transfer taxes and mortgage recording taxes. Grazi Zazzara advised that they are proposing a new mixed-use housing development. Grazi stated that the ground floor will consist of 5 residential units, as well as commercial space. He stated that the top floor will consist of 8 units. Of the 13 units, 2 of the units will be workforce housing. All the units will be one bedroom. Grazi went on to state that he is currently developing a 19 unit building near where this proposed project is in the town of Manlius. Page 4 of 107 ACTION ITEMS 1. Paradise Companies 10, LLC (Project #3101-24-05A) Initial Meeting – Paradise Companies 10, LLC is proposing to demolish the existing dilapidated building located at 111 and 117 East Seneca Street in the Town of Manlius and construct an approximately 14,520 square foot mixed-use building in its place. The new building will contain approximately 13 residential units and a small commercial space. The applicant is requesting exemptions from certain sales and use taxes, real property taxes, real estate transfer taxes and mortgage recording taxes. Grazi Zazzara advised that they are proposing a new mixed-use housing development. Grazi stated that the ground floor will consist of 5 residential units, as well as commercial space. He stated that the top floor will consist of 8 units. Of the 13 units, 2 of the units will be workforce housing. All the units will be one bedroom. Grazi went on to state that he is currently developing a 19 unit building near where this proposed project is in the town of Manlius. Page 4 of 107 Janice Herzog asked about the location of the other project they are currently developing. Grazi Zazzara stated that the project is located where the old Eastern Hills Bible Church was. Grazi Zazzara discussed where the parking will be in proximity to the building. Sue Stanczyk asked whether the residents would have their own parking spaces. Grazi advised that that they will. Patrick Hogan asked what the approval status was of the Manlius planning board. Grazi advised that they met with them 2 days ago, however the project has not yet been approved, as they require an area variance to be approved beforehand. Grazi advised that the Village of Manlius applied for a restore grant in the amount of $700,000 for this project and it was awarded. Elizabeth Dreyfuss asked if they have worked on similar projects to this one, Grazi responded with some examples of projects they have worked on, but that this will be their first ground-up project. Patrick Hogan read the Agency Action Requested of “A resolution of the Board authorizing a public hearing." A motion was made by Janice Herzog and seconded by Susan Stanczyk. Motion was carried. Janice Herzog asked about the location of the other project they are currently developing. Grazi Zazzara stated that the project is located where the old Eastern Hills Bible Church was. Grazi Zazzara discussed where the parking will be in proximity to the building. Sue Stanczyk asked whether the residents would have their own parking spaces. Grazi advised that that they will. Patrick Hogan asked what the approval status was of the Manlius planning board. Grazi advised that they met with them 2 days ago, however the project has not yet been approved, as they require an area variance to be approved beforehand. Grazi advised that the Village of Manlius applied for a restore grant in the amount of $700,000 for this project and it was awarded. Elizabeth Dreyfuss asked if they have worked on similar projects to this one, Grazi responded with some examples of projects they have worked on, but that this will be their first ground-up project. Patrick Hogan read the Agency Action Requested of “A resolution of the Board authorizing a public hearing." A motion was made by Janice Herzog and seconded by Susan Stanczyk. Motion was carried. 2. Appointments – OCIDA Board to Appoint Robert Schoeneck as Agency Assistant Treasurer: Robert Petrovich shared that the Agency recommends appointing Robert Schoeneck as Agency Assistant Treasurer. Patrick Hogan read the Agency Action Requested of “A resolution of the Board appointing Robert Schoeneck as Agency Assistant Treasurer.” A motion to approve Agency Action Requested was made by Susan Stanczyk and seconded by Janice Herzog. Motion was carried. Motion to adjourn made by Janice Herzog and seconded by Susan Stanczyk at 8:42 AM. _________________________________ Alexis Rodriguez, Secretary Page 5 of 107 September 30,2024 Revenue / Expense / Income Current Period Current YTD Operating/Non-Op Revenue 152,330 3,264,348 Administrative Expense 55,547 473,963 Operating/Program Expense 16,067 468,668 Net Ordinary Income 80,716 2,321,717 2. Appointments – OCIDA Board to Appoint Robert Schoeneck as Agency Assistant Treasurer: Robert Petrovich shared that the Agency recommends appointing Robert Schoeneck as Agency Assistant Treasurer. Patrick Hogan read the Agency Action Requested of “A resolution of the Board appointing Robert Schoeneck as Agency Assistant Treasurer.” A motion to approve Agency Action Requested was made by Susan Stanczyk and seconded by Janice Herzog. Motion was carried. Motion to adjourn made by Janice Herzog and seconded by Susan Stanczyk at 8:42 AM. _________________________________ Alexis Rodriguez, Secretary Page 5 of 107 September 30,2024 Revenue / Expense / Income Current Period Current YTD Operating/Non-Op Revenue 152,330 3,264,348 Administrative Expense 55,547 473,963 Operating/Program Expense 16,067 468,668 Net Ordinary Income 80,716 2,321,717 Current Assets Current YTD Prior YTD Total Cash 5,892,428 9,248,910 Less Pass Through Received - 4,948,937 Available Cash 5,892,428 4,299,973 Receivables 337,050 536,222 Total 6,229,478 4,836,194 Page 6 of 107 Page 7 of 107 Page 8 of 107 Page 9 of 107 Page 10 of 107 Current Assets Current YTD Prior YTD Total Cash 5,892,428 9,248,910 Less Pass Through Received - 4,948,937 Available Cash 5,892,428 4,299,973 Receivables 337,050 536,222 Total 6,229,478 4,836,194 Page 6 of 107 Page 7 of 107 Page 8 of 107 Page 9 of 107 Page 10 of 107 ONONDAGA COUNTY INDUSTRIAL DEVELOPMENT AGENCY PAYMENT OF BILLS - SCHEDULE #498 October 10, 2024 ONONDAGA COUNTY INDUSTRIAL DEVELOPMENT AGENCY PAYMENT OF BILLS - SCHEDULE #498 October 10, 2024 GENERAL EXPENSES 1. BARCLAY DAMON* $ 3,007,750.00 Settlement In Lieu Of Condemnation 2. BARCLAY DAMON* $ 19,989.73 Closing Costs 3. BARCLAY DAMON** $ 1,072.50 Roth Steel Inv#5271336 4. BARCLAY DAMON** $ 2,437.50 Retained Corporate & Public Finance Matters, Inv#5296460 5. BARCLAY DAMON** $ 334.85 WPSTP Inv#5297447 6. BARCLAY DAMON** $ 54,986.04 OHB Redev, Inv#5297707 7 LOVELL AND ASSOCIATES LLC $ 3,000.00 September 2024 Consulting 8 BARCLAY DAMON $ 2,625.00 Retained Corporate & Public Finance Matters, Inv#5302570 9 BARCLAY DAMON $ 90.00 Roth Steel Inv#5303060 10 BARCLAY DAMON $ 1,343.00 OHB Redev, Inv#5302572 11 BARCLAY DAMON $ 177,777.78 August 2024 Legal Costs 11. JMT OF NEW YORK, INC $ 128,787.88 August 2024 Engineering Costs GENERAL EXPENSES 1. BARCLAY DAMON* $ 3,007,750.00 Settlement In Lieu Of Condemnation 2. BARCLAY DAMON* $ 19,989.73 Closing Costs 3. BARCLAY DAMON** $ 1,072.50 Roth Steel Inv#5271336 4. BARCLAY DAMON** $ 2,437.50 Retained Corporate & Public Finance Matters, Inv#5296460 5. BARCLAY DAMON** $ 334.85 WPSTP Inv#5297447 6. BARCLAY DAMON** $ 54,986.04 OHB Redev, Inv#5297707 7 LOVELL AND ASSOCIATES LLC $ 3,000.00 September 2024 Consulting 8 BARCLAY DAMON $ 2,625.00 Retained Corporate & Public Finance Matters, Inv#5302570 9 BARCLAY DAMON $ 90.00 Roth Steel Inv#5303060 10 BARCLAY DAMON $ 1,343.00 OHB Redev, Inv#5302572 11 BARCLAY DAMON $ 177,777.78 August 2024 Legal Costs 11. JMT OF NEW YORK, INC $ 128,787.88 August 2024 Engineering Costs 12. BARTON & LOGUIDICE, D.P.C. $ 3,723.35 Burnet Road Inv#146019 13. NEW YORK STATE ECONOMIC DEVELOPMENT COUNCIL $ 3,500.00 2025 NYSEDC Conference Sponsorship TOTAL $ 3,407,417.63 *Ratification of check dated September 10, 2024 **Ratification of checks dated September 16, 2024 Page 11 of 107 10/4/2024 Project Homegrown 2, LLC Project Number 3101-24-06A Town Salina School District Liverpool Tax Parcel(s) 075.-03-05.2 Project Type New Construction Village 0 12. BARTON & LOGUIDICE, D.P.C. $ 3,723.35 Burnet Road Inv#146019 13. NEW YORK STATE ECONOMIC DEVELOPMENT COUNCIL $ 3,500.00 2025 NYSEDC Conference Sponsorship TOTAL $ 3,407,417.63 *Ratification of check dated September 10, 2024 **Ratification of checks dated September 16, 2024 Page 11 of 107 10/4/2024 Project Homegrown 2, LLC Project Number 3101-24-06A Town Salina School District Liverpool Tax Parcel(s) 075.-03-05.2 Project Type New Construction Village 0 7.Total Project Cost $ 18,185,926 8. Total Jobs 40 Land Acquisition . 8A. Job Retention 0 Site Work/Demo $ 1,587,850 8B: Job Creation 40 Building Construction & Renovation $ 12,803,000 (Next 5 Years) Furniture & Fixtures $ 2,002,456 Equipment $ 545,000 Project Soft Cost $ 1,247,620 Community Investment /Abatement Project Description Fiscal Impact ($) Abatement Summary $1,755,732 Sales Tax Abatement $765,920 Mortgage Tax Abatement $105,000 7.Total Project Cost $ 18,185,926 8. Total Jobs 40 Land Acquisition . 8A. Job Retention 0 Site Work/Demo $ 1,587,850 8B: Job Creation 40 Building Construction & Renovation $ 12,803,000 (Next 5 Years) Furniture & Fixtures $ 2,002,456 Equipment $ 545,000 Project Soft Cost $ 1,247,620 Community Investment /Abatement Project Description Fiscal Impact ($) Abatement Summary $1,755,732 Sales Tax Abatement $765,920 Mortgage Tax Abatement $105,000 Property Tax Relief (PILOT) $884,812 The applicant is proposing to construct a 110 suite extended stay hotel in the Town Community Investment $36,351,912 of Salina. PILOT Payments ( - ) $803,111 Project Salaries and Benefits Estimated (10 yrs) $15,005,000 Construction Benefit Estimate $2,357,875 Total Project Cost $18,185,926 Investment:Abatement Ratio 21 :1 © 2024 Onondaga County Industrial Development Agency. All rights reserved. Page 12 of 107 Homegrown 2, LLC A) PILOTS Estimate Table Worksheet for 10 years OCIDA estimate of current market value $ 99,383 Projected building investment $ 12,803,000 Property Tax Relief (PILOT) $884,812 The applicant is proposing to construct a 110 suite extended stay hotel in the Town Community Investment $36,351,912 of Salina. PILOT Payments ( - ) $803,111 Project Salaries and Benefits Estimated (10 yrs) $15,005,000 Construction Benefit Estimate $2,357,875 Total Project Cost $18,185,926 Investment:Abatement Ratio 21 :1 © 2024 Onondaga County Industrial Development Agency. All rights reserved. Page 12 of 107 Homegrown 2, LLC A) PILOTS Estimate Table Worksheet for 10 years OCIDA estimate of current market value $ 99,383 Projected building investment $ 12,803,000 OCIDA estimate of increase in value $ 5,500,000 OCIDA estimated value after project is completed $ 5,599,383 Taxes that would have been collected if the project did not occur $ 29,959 Scheduled PILOT payments $ 803,111 OCIDA estimate of increase in value $ 5,500,000 OCIDA estimated value after project is completed $ 5,599,383 Taxes that would have been collected if the project did not occur $ 29,959 Scheduled PILOT payments $ 803,111 Full Tax County PILOT School PILOT YEAR Exemption % Town Village (NA) Total PILOT Payment w/o Net Exemption Amount District PILOT 1 100% $ 336.41 $ 314.90 $ 2,084.73 $ - $ 2,736.03 $ 154,152.18 $ 151,416.15 2 90% $ 2,242.09 $ 2,098.76 $ 13,894.36 $ - $ 18,235.20 $ 157,235.22 $ 139,000.02 3 80% $ 4,223.86 $ 3,953.85 $ 26,175.53 $ - $ 34,353.24 $ 160,379.93 $ 126,026.69 4 70% $ 6,284.01 $ 5,882.30 $ 38,942.40 $ - $ 51,108.71 $ 163,587.53 $ 112,478.82 5 60% $ 8,424.87 $ 7,886.31 $ 52,209.47 $ - $ 68,520.65 $ 166,859.28 $ 98,338.62 6 50% $ 10,648.85 $ 9,968.13 $ 65,991.65 $ - $ 86,608.63 $ 170,196.46 $ 83,587.83 7 40% $ 12,958.43 $ 12,130.06 $ 80,304.24 $ - $ 105,392.72 $ 173,600.39 $ 68,207.67 8 30% $ 15,356.12 $ 14,374.49 $ 95,162.92 $ - $ 124,893.53 $ 177,072.40 $ 52,178.87 9 20% $ 17,844.55 $ 16,703.84 $ 110,583.84 $ - $ 145,132.22 $ 180,613.85 $ 35,481.63 10 10% $ 20,426.36 $ 19,120.61 $ 126,583.52 $ - $ 166,130.49 $ 184,226.13 $ 18,095.63 TOTAL $ 98,746 $ 92,433 $ 611,933 $ - $ 803,111 $ 1,687,923 $ 884,812 Full Tax County PILOT School PILOT YEAR Exemption % Town Village (NA) Total PILOT Payment w/o Net Exemption Amount District PILOT 1 100% $ 336.41 $ 314.90 $ 2,084.73 $ - $ 2,736.03 $ 154,152.18 $ 151,416.15 2 90% $ 2,242.09 $ 2,098.76 $ 13,894.36 $ - $ 18,235.20 $ 157,235.22 $ 139,000.02 3 80% $ 4,223.86 $ 3,953.85 $ 26,175.53 $ - $ 34,353.24 $ 160,379.93 $ 126,026.69 4 70% $ 6,284.01 $ 5,882.30 $ 38,942.40 $ - $ 51,108.71 $ 163,587.53 $ 112,478.82 5 60% $ 8,424.87 $ 7,886.31 $ 52,209.47 $ - $ 68,520.65 $ 166,859.28 $ 98,338.62 6 50% $ 10,648.85 $ 9,968.13 $ 65,991.65 $ - $ 86,608.63 $ 170,196.46 $ 83,587.83 7 40% $ 12,958.43 $ 12,130.06 $ 80,304.24 $ - $ 105,392.72 $ 173,600.39 $ 68,207.67 8 30% $ 15,356.12 $ 14,374.49 $ 95,162.92 $ - $ 124,893.53 $ 177,072.40 $ 52,178.87 9 20% $ 17,844.55 $ 16,703.84 $ 110,583.84 $ - $ 145,132.22 $ 180,613.85 $ 35,481.63 10 10% $ 20,426.36 $ 19,120.61 $ 126,583.52 $ - $ 166,130.49 $ 184,226.13 $ 18,095.63 TOTAL $ 98,746 $ 92,433 $ 611,933 $ - $ 803,111 $ 1,687,923 $ 884,812 Year 0 1 2 3 4 5 Jobs Current/Actuals Creation Goals 36 1 3 Total Employment Goals 0 36 37 40 40 40 © 2024 Onondaga County Industrial Development Agency. All rights reserved. Page 13 of 107 Year 0 1 2 3 4 5 Jobs Current/Actuals Creation Goals 36 1 3 Total Employment Goals 0 36 37 40 40 40 © 2024 Onondaga County Industrial Development Agency. All rights reserved. Page 13 of 107 ONONDAGA COUNTY INDUSTRIAL DEVELOPMENT AGENCY ONONDAGA COUNTY INDUSTRIAL DEVELOPMENT AGENCY ONONDAGA COUNTY INDUSTRIAL DEVELOPMENT AGENCY APPLICATION FOR FINANCIAL ASSISTANCE 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 (the "Agency" or "OCIDA") at 315-435-3770. 2. In accordance with Section 224-a(8)(d) of Article 8 of the New York Labor Law, the Agency has identified that any "financial assistance" (within the meaning of Section 858 of the General Municipal Law) granted by the Agency to the Applicant consisting of sales and use tax exemption benefits, mortgage recording tax exemption benefits and real property tax exemption benefits, constitutes "public funds" within the meaning of Section 224-a(2)(b) of Article 8 of the New York Labor Law and such funds are not excluded under Section 224-a(3) of Article 8 of the New York Labor Law. The Agency hereby notifies the Applicant of the Applicant's obligations under Section 224-a (8)(a) of Article 8 of the New York Labor Law. 3. If the OCIDA Board approves benefits, it is the company's responsibility to obtain and submit all necessary forms and documents. ONONDAGA COUNTY INDUSTRIAL DEVELOPMENT AGENCY APPLICATION FOR FINANCIAL ASSISTANCE 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 (the "Agency" or "OCIDA") at 315-435-3770. 2. In accordance with Section 224-a(8)(d) of Article 8 of the New York Labor Law, the Agency has identified that any "financial assistance" (within the meaning of Section 858 of the General Municipal Law) granted by the Agency to the Applicant consisting of sales and use tax exemption benefits, mortgage recording tax exemption benefits and real property tax exemption benefits, constitutes "public funds" within the meaning of Section 224-a(2)(b) of Article 8 of the New York Labor Law and such funds are not excluded under Section 224-a(3) of Article 8 of the New York Labor Law. The Agency hereby notifies the Applicant of the Applicant's obligations under Section 224-a (8)(a) of Article 8 of the New York Labor Law. 3. If the OCIDA Board approves benefits, it is the company's responsibility to obtain and submit all necessary forms and documents. 4. All projects approved for benefits by the OCIDA Board will close with the Agency within 6-months of the OCIDA Board approval date. If this schedule cannot be met, the Applicant will need to submit a closing schedule modification written request to the Executive Director that will be presented to OCIDA Board for consideration. 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 athttps://extapps.dec.ny.gov/docs/permits eLoperations pdf/feafpartl.pdf 6. Public Officers Law stipulates all records in the possession of the Agency (with certain limited exceptions) are open to public inspection and reproduction. Should the Applicant believe there are project elements which are trade secrets if publicly disclosed or otherwise widely disseminated, would cause substantial injury to the Applicant's competitive position, the 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 Agency may also redact personal, private, and/or proprietary information from publicly disseminated documents. 4. All projects approved for benefits by the OCIDA Board will close with the Agency within 6-months of the OCIDA Board approval date. If this schedule cannot be met, the Applicant will need to submit a closing schedule modification written request to the Executive Director that will be presented to OCIDA Board for consideration. 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 athttps://extapps.dec.ny.gov/docs/permits eLoperations pdf/feafpartl.pdf 6. Public Officers Law stipulates all records in the possession of the Agency (with certain limited exceptions) are open to public inspection and reproduction. Should the Applicant believe there are project elements which are trade secrets if publicly disclosed or otherwise widely disseminated, would cause substantial injury to the Applicant's competitive position, the 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 Agency may also redact personal, private, and/or proprietary information from publicly disseminated documents. 7. The completed Application and associated fees MUST be received 10 business days prior to the upcoming OCIDA Board meeting in order to be placed on the agenda. A signed application may be submitted by mail, fax or electronically in PDF format to Nate Stevens at natestevensAongov.net. • 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 This Application was adopted by the OCIDA Board on February 15, 2024. Onondaga County Industrial Development Agency Page 1 Page 14 of 107 Return completed application to: Onondaga County Industrial Development Agency 335 Montgomery Street, Floor 2M Syracuse, NY 13202 Phone: 315-435-3770 I Fax: 315-435-3669 natestevens@ongov.net Section I: Applicant Information Submittal Date: September 30. 2024 A) Applicant/Project Operator information (company receiving benefits): 7. The completed Application and associated fees MUST be received 10 business days prior to the upcoming OCIDA Board meeting in order to be placed on the agenda. A signed application may be submitted by mail, fax or electronically in PDF format to Nate Stevens at natestevensAongov.net. • 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 This Application was adopted by the OCIDA Board on February 15, 2024. Onondaga County Industrial Development Agency Page 1 Page 14 of 107 Return completed application to: Onondaga County Industrial Development Agency 335 Montgomery Street, Floor 2M Syracuse, NY 13202 Phone: 315-435-3770 I Fax: 315-435-3669 natestevens@ongov.net Section I: Applicant Information Submittal Date: September 30. 2024 A) Applicant/Project Operator information (company receiving benefits): 1. Applicant/Project Operator: Homegrown2, LLC Applicant/Project Operator Address: 275 Elwood Davis Road, Liverpool, NY 13088 Phone: 315-703-7731 Fax: Website: Email: Tony.Mangano@hilton.com Federal ID#: NAICS: State of Incorporation: New York See link for your NYS incorporation information. https://apps.dos.ny.gov/publiclnquiry 2. Owner (if different from Applicant/Project Operator): Owner Address: Federal ID#: State of Incorporation: List of stockholders, members, or partners of Owner: See Addendum B) Applicant Business Organization (check appropriate category): ❑ Corporation ❑ Partnership ❑ Public Corporation ❑ Joint Venture ❑ Sole Proprietorship I] Limited Liability Company ❑ Other, explain List all stockholders, members, or partners with % of ownership greater than 5%: Name % of ownership *See Addendum Onondaga County Industrial Development Agency Page 2 Page 15 of 107 C) Applicant Business Description: 1. Applicant/Project Operator: Homegrown2, LLC Applicant/Project Operator Address: 275 Elwood Davis Road, Liverpool, NY 13088 Phone: 315-703-7731 Fax: Website: Email: Tony.Mangano@hilton.com Federal ID#: NAICS: State of Incorporation: New York See link for your NYS incorporation information. https://apps.dos.ny.gov/publiclnquiry 2. Owner (if different from Applicant/Project Operator): Owner Address: Federal ID#: State of Incorporation: List of stockholders, members, or partners of Owner: See Addendum B) Applicant Business Organization (check appropriate category): ❑ Corporation ❑ Partnership ❑ Public Corporation ❑ Joint Venture ❑ Sole Proprietorship I] Limited Liability Company ❑ Other, explain List all stockholders, members, or partners with % of ownership greater than 5%: Name % of ownership *See Addendum Onondaga County Industrial Development Agency Page 2 Page 15 of 107 C) Applicant Business Description: Estimated % of sales within Onondaga County: 3% Estimated % of sales outside Onondaga County but within New York State: 45% Estimated % of sales outside New York State but within the U.S.: 42% Estimated % of sales outside the U.S.: (*Percentage to equal 100%) 10% Applicant /Owner History: 1. Is the Owner and/or Applicant or any manager or owner of the Owner and/or Applicant now a plaintiff or defendant in any civil or criminal litigation? 0 No 0 Yes, explain 2. Has any owner of manager of the Owner and/or Applicant listed above ever been convicted of a criminal offense (other than a minor traffic violation)? 0 No 0 Yes, explain 3. Has any erson listed in Section I ever been in receivership or declared bankruptcy? E No LI Yes, explain D) Has the Applicant/Owner received assistance from Onondaga County Industrial Development Agency (OCIDA, Syracuse Industrial Development Agency (SIDA), New York State or the Onondaga Civic Development Corporation (OCDC) in the past? 0No 0 Yes, explain (Provide year, project name, benefit description, amounts, address) 2016-Prima Terra-OCIDA Assistance 2017-Etna Development -OCIDA Assistance Both projects received Mortgage Recording Tax and Sales Tax Exemptions E) Individual Completing Application: Estimated % of sales within Onondaga County: 3% Estimated % of sales outside Onondaga County but within New York State: 45% Estimated % of sales outside New York State but within the U.S.: 42% Estimated % of sales outside the U.S.: (*Percentage to equal 100%) 10% Applicant /Owner History: 1. Is the Owner and/or Applicant or any manager or owner of the Owner and/or Applicant now a plaintiff or defendant in any civil or criminal litigation? 0 No 0 Yes, explain 2. Has any owner of manager of the Owner and/or Applicant listed above ever been convicted of a criminal offense (other than a minor traffic violation)? 0 No 0 Yes, explain 3. Has any erson listed in Section I ever been in receivership or declared bankruptcy? E No LI Yes, explain D) Has the Applicant/Owner received assistance from Onondaga County Industrial Development Agency (OCIDA, Syracuse Industrial Development Agency (SIDA), New York State or the Onondaga Civic Development Corporation (OCDC) in the past? 0No 0 Yes, explain (Provide year, project name, benefit description, amounts, address) 2016-Prima Terra-OCIDA Assistance 2017-Etna Development -OCIDA Assistance Both projects received Mortgage Recording Tax and Sales Tax Exemptions E) Individual Completing Application: Name: Anthony Mangano Title: Partner Address: 275 Elwood Davis Road, Liverpool, NY 13088 phone: 315-703-7731 Cell Phone: E-mail: Tony.Mangano@hilton.com F) Company Contact (if different from individual completing application): Name: Title: Address: Phone: Cell Phone: Email: Onondaga County Industrial Development Agency Page 3 Page 16 of 107 G) Company Counsel: Name of Attorney: Kevin R. McAuliffe, Esq. Firm Name: Barclay Damon LLP Address: 125 East Jefferson Street, Syracuse, New York 13202 Phone: 315-425-2875 Cell Phone: 315-382-8703 Email: kmcauliffe@barclaydamon.com Onondaga County Industrial Development Agency Page 4 Page 17 of 107 Section II: Project and Site Information A) Project Location is where the investment will take place. If Applicant is moving, the new location should be entered here and the current location should be in Section I. Name: Anthony Mangano Title: Partner Address: 275 Elwood Davis Road, Liverpool, NY 13088 phone: 315-703-7731 Cell Phone: E-mail: Tony.Mangano@hilton.com F) Company Contact (if different from individual completing application): Name: Title: Address: Phone: Cell Phone: Email: Onondaga County Industrial Development Agency Page 3 Page 16 of 107 G) Company Counsel: Name of Attorney: Kevin R. McAuliffe, Esq. Firm Name: Barclay Damon LLP Address: 125 East Jefferson Street, Syracuse, New York 13202 Phone: 315-425-2875 Cell Phone: 315-382-8703 Email: kmcauliffe@barclaydamon.com Onondaga County Industrial Development Agency Page 4 Page 17 of 107 Section II: Project and Site Information A) Project Location is where the investment will take place. If Applicant is moving, the new location should be entered here and the current location should be in Section I. Address: 241 Elwood Davis Road Legal Address (if different): City: Town: Salina Village: Zip Code: 13088 School District: Liverpool Tax Map Parcel ID(s): 075.-03-05.2 Full Market Value: $99,383 Square Footage of Existing Building(s): N/A B) Project Activity (Check all that apply): E New construction O Acquisition of existing facility ❑ Expansion to current facilities ❑ Brownfield/Remediated Brownfield O Renovation of existing facility O Demolition and construction ❑ Purchase of machinery/equipment C) Select Project Type or Project End Use at site (you may check more thanone): Address: 241 Elwood Davis Road Legal Address (if different): City: Town: Salina Village: Zip Code: 13088 School District: Liverpool Tax Map Parcel ID(s): 075.-03-05.2 Full Market Value: $99,383 Square Footage of Existing Building(s): N/A B) Project Activity (Check all that apply): E New construction O Acquisition of existing facility ❑ Expansion to current facilities ❑ Brownfield/Remediated Brownfield O Renovation of existing facility O Demolition and construction ❑ Purchase of machinery/equipment C) Select Project Type or Project End Use at site (you may check more thanone): 0 Manufacturing O Mixed Use 0 Retail (see Section V) O Facility of Aging 0 Housing Project (see Section VII) O Distribution/Wholesale 0 Civic Facility (not for profit) O Commercial 0 Industrial 0 Renewable Energy Project (see Section VI) 0 Other, explain *Extended Stay Facility D) Project Narrative: Please check one of the two boxes below and attach statement. E1 A statement that the Project described in this application would not be undertaken but for the financial assistance provided by the Agency. 0 If the Project is going to advance regardless of any financial assistance from the Agency, please provide a statement indicating why the project should be considered by the Agency for any financial assistance. Onondaga County Industrial Development Agency Page 5 Page 18 of 107 E) Description of Project: Please attach a detailed narrative of the proposed Project. Please attached copies of site plans, sketches or maps. This narrative should include, but is not limited to: 0 Manufacturing O Mixed Use 0 Retail (see Section V) O Facility of Aging 0 Housing Project (see Section VII) O Distribution/Wholesale 0 Civic Facility (not for profit) O Commercial 0 Industrial 0 Renewable Energy Project (see Section VI) 0 Other, explain *Extended Stay Facility D) Project Narrative: Please check one of the two boxes below and attach statement. E1 A statement that the Project described in this application would not be undertaken but for the financial assistance provided by the Agency. 0 If the Project is going to advance regardless of any financial assistance from the Agency, please provide a statement indicating why the project should be considered by the Agency for any financial assistance. Onondaga County Industrial Development Agency Page 5 Page 18 of 107 E) Description of Project: Please attach a detailed narrative of the proposed Project. Please attached copies of site plans, sketches or maps. This narrative should include, but is not limited to: El (i) a description of your Company's background, customers, goods and services and the principal products to be produced and/or the principal activities that will occur on the Project site; ❑ (ii) the size of the Project in square feet and a breakdown of square footage per each intended use; ❑ (iii) the size of the lot upon which the Project sits or is to be constructed; ❑ (iv) the current use of the site and the intended use of the site upon completion of the Project; El (v) describe your method for site control (Own, lease, other). F) 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? 0 No 0 Yes G) Please describe any compelling circumstances the Agency should be aware of while reviewing this application. *See Addendum El (i) a description of your Company's background, customers, goods and services and the principal products to be produced and/or the principal activities that will occur on the Project site; ❑ (ii) the size of the Project in square feet and a breakdown of square footage per each intended use; ❑ (iii) the size of the lot upon which the Project sits or is to be constructed; ❑ (iv) the current use of the site and the intended use of the site upon completion of the Project; El (v) describe your method for site control (Own, lease, other). F) 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? 0 No 0 Yes G) Please describe any compelling circumstances the Agency should be aware of while reviewing this application. *See Addendum H) Local Approvals (Site Plan and Environmental Review) Have site plans been submitted to the appropriate town or local planning department? El No. When will the plans be submitted? 0 Yes, what is the status? Approved Has the project received site plan approval from the town or local planning board? 0 No, anticipated approval date. ElYes, date 7/15/2024 If yes, provide the Agency with a copy of the Planning Board's approval resolution along with the related SEQR determination. (NOTE: SEQR determination is required for final approval and sales tax agency appointment.) 1. Environmental Review Information a. Please attach the appropriate Environmental Impact Forms to your application. Here is a link to the SEQR forms: https://extapps.dec.ny.gov/docs/permits ej operations _pdf/feafpartl.pdf b. Has Lead Agency been established? 0 No 0 Yes, name of Lead Agency c. Have any environmental issues been identified on the property? E No El Yes, explain Onondaga County Industrial Development Agency Page 6 Page 19 of 107 Section III: FINANCIAL AND EMPLOYMENT INFORMATION A) Project Costs and Finances Description of Costs Total Budget Amount H) Local Approvals (Site Plan and Environmental Review) Have site plans been submitted to the appropriate town or local planning department? El No. When will the plans be submitted? 0 Yes, what is the status? Approved Has the project received site plan approval from the town or local planning board? 0 No, anticipated approval date. ElYes, date 7/15/2024 If yes, provide the Agency with a copy of the Planning Board's approval resolution along with the related SEQR determination. (NOTE: SEQR determination is required for final approval and sales tax agency appointment.) 1. Environmental Review Information a. Please attach the appropriate Environmental Impact Forms to your application. Here is a link to the SEQR forms: https://extapps.dec.ny.gov/docs/permits ej operations _pdf/feafpartl.pdf b. Has Lead Agency been established? 0 No 0 Yes, name of Lead Agency c. Have any environmental issues been identified on the property? E No El Yes, explain Onondaga County Industrial Development Agency Page 6 Page 19 of 107 Section III: FINANCIAL AND EMPLOYMENT INFORMATION A) Project Costs and Finances Description of Costs Total Budget Amount Land Acquisition $0 Site Work/Demo $1,587,850 Building Construction & Renovation $12,803,000 Furniture & Fixtures $2,002,456 Equipment $450,000 Project Soft Cost $1,247,620 Total Project Cost $18,185,926 Please have documentation available upon request. Do not include OCIDA fees, OCIDA application fees or OCIDA legalfees as part of the Total Project Cost. Sources of Funds for Project Costs: 1. Bank Financing $ 14,000,000 2. Equity $ 4,200,000 3. Tax Exempt Bond Issuance (if applicable) 4. Taxable Bond Issuance (if applicable) 5. Total Sources of Funds for Project Costs $ 18,200,000 6. Public Sources (Include sum total of all state and federal grants and tax credits) -Identify each state and federal grant/credit: Onondaga County Industrial Development Agency Page 7 Page 20 of 107 Land Acquisition $0 Site Work/Demo $1,587,850 Building Construction & Renovation $12,803,000 Furniture & Fixtures $2,002,456 Equipment $450,000 Project Soft Cost $1,247,620 Total Project Cost $18,185,926 Please have documentation available upon request. Do not include OCIDA fees, OCIDA application fees or OCIDA legalfees as part of the Total Project Cost. Sources of Funds for Project Costs: 1. Bank Financing $ 14,000,000 2. Equity $ 4,200,000 3. Tax Exempt Bond Issuance (if applicable) 4. Taxable Bond Issuance (if applicable) 5. Total Sources of Funds for Project Costs $ 18,200,000 6. Public Sources (Include sum total of all state and federal grants and tax credits) -Identify each state and federal grant/credit: Onondaga County Industrial Development Agency Page 7 Page 20 of 107 B) Employment and Payroll Information Full Time Equivalent (FTE) is defined as one employee working no less than 35 hours per week or two or more employees together working a total of 35 hours per week. 1. Are there people currently employed at the project site? E No 0 Yes, provide number of FTE jobs at the project site If you are relocating, are all employees moving to new site? 0 No, explain 0 Yes 2. Complete the following: 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 Estimate the average length of construction jobs to be created (months): 13 months Current annual payroll including the benefit cost: N/A Average salary amount that is an employee benefit (%): N/A Average annual growth salary/wage rate (%) NIA Provide an estimate of the number of residents in the Economic Development Region (Onondaga, Madison, Cayuga, Oneida, Oswego, and Cortland Counties) to 100% of FTE jobs fill new FTE jobs: B) Employment and Payroll Information Full Time Equivalent (FTE) is defined as one employee working no less than 35 hours per week or two or more employees together working a total of 35 hours per week. 1. Are there people currently employed at the project site? E No 0 Yes, provide number of FTE jobs at the project site If you are relocating, are all employees moving to new site? 0 No, explain 0 Yes 2. Complete the following: 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 Estimate the average length of construction jobs to be created (months): 13 months Current annual payroll including the benefit cost: N/A Average salary amount that is an employee benefit (%): N/A Average annual growth salary/wage rate (%) NIA Provide an estimate of the number of residents in the Economic Development Region (Onondaga, Madison, Cayuga, Oneida, Oswego, and Cortland Counties) to 100% of FTE jobs fill new FTE jobs: C) New Employment Benefits Complete the following chart indicating the number of FTE jobs currently employed by the Applicant, FTE jobs currently 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, and third, 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. Onondaga County Industrial Development Agency Page 8 Page 21 of 107 Please use this chart to illustrate the current employment: Job Title/Category Current Annual Pay Current Employment (FTE) Please use this chart to illustrate the projected employment growth: C) New Employment Benefits Complete the following chart indicating the number of FTE jobs currently employed by the Applicant, FTE jobs currently 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, and third, 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. Onondaga County Industrial Development Agency Page 8 Page 21 of 107 Please use this chart to illustrate the current employment: Job Title/Category Current Annual Pay Current Employment (FTE) Please use this chart to illustrate the projected employment growth: Job Title/Category Projected FTE Jobs FTE Jobs FTE Jobs FTE Jobs FTE Jobs Annual Pay Created Created Created Created Created Year 1 Year 2 Year 3 Year 4 Year 5 General Management $80,000 1 1 1 1 Department Supervisor/Sales $55,000 4 4 4 4 Customer Based Team Member $35,000 31 32 35 35 35 Note: Numbers are cumulative D)Financial Assistance sought: I] Real Property Tax Abatement (PILOT): Agency Staff will provide draft andfinal PILOT schedule: E Mortgage Recording Tax Exemption (.75% of mortgage): $105,000 E Sales and Use Tax Exemption (4% Local, 4% State): $765.920 0 Tax Exempt Bond Financing (Amount Requested): 0 Job Title/Category Projected FTE Jobs FTE Jobs FTE Jobs FTE Jobs FTE Jobs Annual Pay Created Created Created Created Created Year 1 Year 2 Year 3 Year 4 Year 5 General Management $80,000 1 1 1 1 Department Supervisor/Sales $55,000 4 4 4 4 Customer Based Team Member $35,000 31 32 35 35 35 Note: Numbers are cumulative D)Financial Assistance sought: I] Real Property Tax Abatement (PILOT): Agency Staff will provide draft andfinal PILOT schedule: E Mortgage Recording Tax Exemption (.75% of mortgage): $105,000 E Sales and Use Tax Exemption (4% Local, 4% State): $765.920 0 Tax Exempt Bond Financing (Amount Requested): 0 0 Taxable Bond Financing (Amount Requested): 0 Onondaga County Industrial Development Agency Page 9 Page 22 of 107 E) 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): $ 14,000,000 Estimated Mortgage Recording Tax Exemption Benefit (product of mortgage amount as indicated above, multiplied by .0075): $ 105,000 F) Sales and Use Tax Benefit Calculator: Gross amount of costs for goods and services that are subject to State and local Sales and Use Tax: $ 9,753,956 Estimated State and local Sales and Use Tax Benefit (product of 8% multiplied by the figure, above): $ 765,920 Onondaga County Industrial Development Agency Page 10 Page 23 of 107 Section IV: Estimate of Real Property Tax Abatement Benefits 0 Taxable Bond Financing (Amount Requested): 0 Onondaga County Industrial Development Agency Page 9 Page 22 of 107 E) 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): $ 14,000,000 Estimated Mortgage Recording Tax Exemption Benefit (product of mortgage amount as indicated above, multiplied by .0075): $ 105,000 F) Sales and Use Tax Benefit Calculator: Gross amount of costs for goods and services that are subject to State and local Sales and Use Tax: $ 9,753,956 Estimated State and local Sales and Use Tax Benefit (product of 8% multiplied by the figure, above): $ 765,920 Onondaga County Industrial Development Agency Page 10 Page 23 of 107 Section IV: Estimate of Real Property Tax Abatement Benefits This section of the Application will be: (i) completed by Agency 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 County Local School Full Tax Total Exemption PILOT PILOT PILOT Payment Net Exemption Year PILOT mount Amount Amount w/o PILOT 1 100 2 90 3 80 4 70 5 60 6 50 7 40 8 30 9 20 10 10 TOTAL 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. This section of the Application will be: (i) completed by Agency 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 County Local School Full Tax Total Exemption PILOT PILOT PILOT Payment Net Exemption Year PILOT mount Amount Amount w/o PILOT 1 100 2 90 3 80 4 70 5 60 6 50 7 40 8 30 9 20 10 10 TOTAL 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 Page 24 of 107 Onondaga County Industrial Development Agency Page 11 Page 24 of 107 SECTION: V For Retail Projects Only 1. Will the cost of the retail portion of the Project exceed one-third of the total project cost? El Yes ❑ No If yes, please answer, questions 2, 3 and/or 4 below. If yes, please explain how much the project will exceed one-third of the total project cost. 2. Is the Project located in a distressed area? A distressed area is a census tract that has a) A poverty rate of at least 20% or at least 20% of households receiving public assistance, and (b) an unemployment rate of least 1.25 times the statewide unemplo ment rate for the year to which the date relates. U Yes El No If yes, please provide the data and explain. 3. Is the Project likely to attract a significant number of visitors from outside of the economic development region? El Yes El No If yes, please provide a third party market study. *See Addendum 4. Is the predominate purpose of the Project to make available goods or services which would not, but for the Project, be reasonably accessible to the residents of the Town, Ci ,, County or Village of where the Project will be located. lJ Yes ❑ No SECTION: V For Retail Projects Only 1. Will the cost of the retail portion of the Project exceed one-third of the total project cost? El Yes ❑ No If yes, please answer, questions 2, 3 and/or 4 below. If yes, please explain how much the project will exceed one-third of the total project cost. 2. Is the Project located in a distressed area? A distressed area is a census tract that has a) A poverty rate of at least 20% or at least 20% of households receiving public assistance, and (b) an unemployment rate of least 1.25 times the statewide unemplo ment rate for the year to which the date relates. U Yes El No If yes, please provide the data and explain. 3. Is the Project likely to attract a significant number of visitors from outside of the economic development region? El Yes El No If yes, please provide a third party market study. *See Addendum 4. Is the predominate purpose of the Project to make available goods or services which would not, but for the Project, be reasonably accessible to the residents of the Town, Ci ,, County or Village of where the Project will be located. lJ Yes ❑ No If yes, please provide data and explain. *See Addendum Onondaga County Industrial Development Agency Page 12 Page 25 of 107 If yes, please provide data and explain. *See Addendum Onondaga County Industrial Development Agency Page 12 Page 25 of 107 SECTION VI: For Solar Projects Only Please answer all the questions as an addendum to this application: I. Describe the reasons why the Agency's financial assistance is necessary. Describe how the Project would be affected if these benefits were not provided. [see Section II (C)] 2. Is the Applicant leasing the property? ❑ Yes, please provide a copy of the lease ❑ No, purchased the property. Please provide documentation. 3. Has the Applicant provided written communication to the affected taxing jurisdictions notifying them of its intent to construct a renewable energy project? ❑ Yes ❑ No 4. Has the Applicant received a letter of support for the megawatt cost to be used as a basis for the PILOT from the town, city, and village where the Project is located? ❑ Yes, please provide copy of the letter. ❑ No 5. Has the Applicant received a letter of support for the megawatt cost to be used as a basis for PILOT from the school district? ❑ Yes, please provide copy of the letter. ❑ No 6. Is the entire parcel being used for the solar project? ❑ Yes ❑ No, have you reached out to the town assessor to discuss a subdivision or slash parcel? Explain: 7. Will the Applicant enter into a decommissioning plan with the host community, including financial assurance the plan can be executed? ❑ Yes, explain. ❑ No SECTION VI: For Solar Projects Only Please answer all the questions as an addendum to this application: I. Describe the reasons why the Agency's financial assistance is necessary. Describe how the Project would be affected if these benefits were not provided. [see Section II (C)] 2. Is the Applicant leasing the property? ❑ Yes, please provide a copy of the lease ❑ No, purchased the property. Please provide documentation. 3. Has the Applicant provided written communication to the affected taxing jurisdictions notifying them of its intent to construct a renewable energy project? ❑ Yes ❑ No 4. Has the Applicant received a letter of support for the megawatt cost to be used as a basis for the PILOT from the town, city, and village where the Project is located? ❑ Yes, please provide copy of the letter. ❑ No 5. Has the Applicant received a letter of support for the megawatt cost to be used as a basis for PILOT from the school district? ❑ Yes, please provide copy of the letter. ❑ No 6. Is the entire parcel being used for the solar project? ❑ Yes ❑ No, have you reached out to the town assessor to discuss a subdivision or slash parcel? Explain: 7. Will the Applicant enter into a decommissioning plan with the host community, including financial assurance the plan can be executed? ❑ Yes, explain. ❑ No *PLEASE SEE FOLLOWING PAGE FOR OCIDA SOLAR GUIDANCE & BEST PRACTICE Onondaga County Industrial Development Agency Page 13 Page 26 of 107 OCIDA Solar PILOTs Guidance and Best Practice OCIDA SOLAR PILOTs GUIDANCE AND BEST PRACTICE To be placed on the Agency meeting agenda, proposed solar projects must provide the Agency with the following in advance of the Project's first OCIDA Board meeting: *PLEASE SEE FOLLOWING PAGE FOR OCIDA SOLAR GUIDANCE & BEST PRACTICE Onondaga County Industrial Development Agency Page 13 Page 26 of 107 OCIDA Solar PILOTs Guidance and Best Practice OCIDA SOLAR PILOTs GUIDANCE AND BEST PRACTICE To be placed on the Agency meeting agenda, proposed solar projects must provide the Agency with the following in advance of the Project's first OCIDA Board meeting: I. Fully completed OCIDA application. 2. Copy of Environmental Assessment Form. 3. A SEQR resolution approved by a local municipality indicating the municipality that is lead agency, the type of action (I, II, or unlisted) and, if completed, the SEQR determination made by the municipality. 4. Copies of your zoning applications submitted to the local municipality. 5. Verification of parcel subdivision process with the town (if the entire parcel will not be used for the solar project). 6. A statement clarifying whether the applicant will lease or purchase the real property on which the Project is situated. If leased, provide a copy of the proposed or executed lease. If lease parcel is less than entire parcel then see 5 above. 7. A supporting document from the local town, village, city, and/or school district outlining the agreed upon cost per megawatt to be used as a basis for the PILOT. The Agency cannot create the PILOT schedule without this information. 8. Absent a showing otherwise by the Company, deemed acceptable by the Agency in the sole and absolute discretion, the Company must close with the Agency on a project prior to consideration of any requested organizational structure or project entity ownership changes. You will receive a draft Cost Benefit Analysis and a Draft PILOT schedule from this office. You may use these documents as your Project progresses through the Agency approval process. Agency staff are available to update these two documents as needed. I. Fully completed OCIDA application. 2. Copy of Environmental Assessment Form. 3. A SEQR resolution approved by a local municipality indicating the municipality that is lead agency, the type of action (I, II, or unlisted) and, if completed, the SEQR determination made by the municipality. 4. Copies of your zoning applications submitted to the local municipality. 5. Verification of parcel subdivision process with the town (if the entire parcel will not be used for the solar project). 6. A statement clarifying whether the applicant will lease or purchase the real property on which the Project is situated. If leased, provide a copy of the proposed or executed lease. If lease parcel is less than entire parcel then see 5 above. 7. A supporting document from the local town, village, city, and/or school district outlining the agreed upon cost per megawatt to be used as a basis for the PILOT. The Agency cannot create the PILOT schedule without this information. 8. Absent a showing otherwise by the Company, deemed acceptable by the Agency in the sole and absolute discretion, the Company must close with the Agency on a project prior to consideration of any requested organizational structure or project entity ownership changes. You will receive a draft Cost Benefit Analysis and a Draft PILOT schedule from this office. You may use these documents as your Project progresses through the Agency approval process. Agency staff are available to update these two documents as needed. Onondaga County Industrial Development Agency Page 14 Page 27 of 107 Onondaga County Industrial Development Agency Page 14 Page 27 of 107 SECTION VII: For Housing Projects Only Please answer all the questions as an addendum to this application: Defined terms: "Market Rate Housing": Housing units priced at the current rental rate for the area. "Workforce Housing": Housing consisting of a specified percentage of units (at least 10-15% per the PILOT Exemption Scale) with rent rates designated to an 80% household AMI as identified in the Workforce Housing AMI chart located on the Agency's website: (Housing Exhibit A) Income levels for individuals living in the specified Workforce Housing units shall not exceed 120% AMI. "Senior Lifestyle Communities": Housing communities for individuals 55 years or older. Communities may offer a variety of amenities, including but not limited to pools, community rooms, fitness centers, playgrounds, firepits, bocce/pickleball/tennis courts, picnic areas, spaces for relaxation and entertainment, safety amenities, on-site medical services, entertainment and dining, walkability, bike trails, and dog parks, playgrounds. SECTION VII: For Housing Projects Only Please answer all the questions as an addendum to this application: Defined terms: "Market Rate Housing": Housing units priced at the current rental rate for the area. "Workforce Housing": Housing consisting of a specified percentage of units (at least 10-15% per the PILOT Exemption Scale) with rent rates designated to an 80% household AMI as identified in the Workforce Housing AMI chart located on the Agency's website: (Housing Exhibit A) Income levels for individuals living in the specified Workforce Housing units shall not exceed 120% AMI. "Senior Lifestyle Communities": Housing communities for individuals 55 years or older. Communities may offer a variety of amenities, including but not limited to pools, community rooms, fitness centers, playgrounds, firepits, bocce/pickleball/tennis courts, picnic areas, spaces for relaxation and entertainment, safety amenities, on-site medical services, entertainment and dining, walkability, bike trails, and dog parks, playgrounds. 1. Describe the reasons why the Agency's financial assistance is necessary. Describe how the project would be impacted if these benefits were not provided. {Section II (D)) 2. Describe how the proposed housing project fulfills an unmet need in the community. 3. Please provide a market study documenting a need for the proposed project. 4. Describe how the proposed project aligns with the Plan Onondaga County comprehensive plan. (Plan Onondaga) 5. Is the Project considered infill in a populated area? If yes, please explain. 6. Is there additional infrastructure necessary to service the project? If yes, please explain. 7. Is the project a part of a larger mixed-use development? If yes, please describe. Please refer to the Housing Exhibit A (Housing Exhibit A) Onondaga County Industrial Development Agency Page 15 Page 28 of 107 Section VIII: Local Access Policy Agreement 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. 1. Describe the reasons why the Agency's financial assistance is necessary. Describe how the project would be impacted if these benefits were not provided. {Section II (D)) 2. Describe how the proposed housing project fulfills an unmet need in the community. 3. Please provide a market study documenting a need for the proposed project. 4. Describe how the proposed project aligns with the Plan Onondaga County comprehensive plan. (Plan Onondaga) 5. Is the Project considered infill in a populated area? If yes, please explain. 6. Is there additional infrastructure necessary to service the project? If yes, please explain. 7. Is the project a part of a larger mixed-use development? If yes, please describe. Please refer to the Housing Exhibit A (Housing Exhibit A) Onondaga County Industrial Development Agency Page 15 Page 28 of 107 Section VIII: Local Access Policy Agreement 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. In consideration of the extension of financial assistance by the Agency Homegrown2, LLC (the Company understands the Local Access Policy and agrees to abide by it. 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. 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. In consideration of the extension of financial assistance by the Agency Homegrown2, LLC (the Company understands the Local Access Policy and agrees to abide by it. 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 (date). If there are two applicants (Real Estate Holding and Operating Company) both need to complete this page. Applicant(s) Company: Homegrown2, LLC Representative for Contract: Anthony Mangano Address: 275 Elwood Davis Road, Liverpool, NY 13088 cit y: Liverpool State: New York Zip: 13088 Phone: 315-703-7731 Email: Tony.Mangano@hilton.corri Project Address: 241 Elwood Davis Rd., and 7th North St. City: Liverpool State: New York Zip: 13088 Signature: General Contractor: JW Construction Services, Inc. Contact Person: Wade Kline, President Address: 6805 Crossbow Drive City: East Syracuse State: NY Zip: 13057 Phone: 315-451-1048 Email: Authorizec, Repre entativ : resident Title: President Signature: C ..?ot.e-o % r> NN, Onondaga County Industrial Development Agency Page 16 Page 29 of 107 Section IX: Agency Fee Schedule I agree to the conditions of this agreement and certify all information provided regarding the construction and employment activities for the project as of (date). If there are two applicants (Real Estate Holding and Operating Company) both need to complete this page. Applicant(s) Company: Homegrown2, LLC Representative for Contract: Anthony Mangano Address: 275 Elwood Davis Road, Liverpool, NY 13088 cit y: Liverpool State: New York Zip: 13088 Phone: 315-703-7731 Email: Tony.Mangano@hilton.corri Project Address: 241 Elwood Davis Rd., and 7th North St. City: Liverpool State: New York Zip: 13088 Signature: General Contractor: JW Construction Services, Inc. Contact Person: Wade Kline, President Address: 6805 Crossbow Drive City: East Syracuse State: NY Zip: 13057 Phone: 315-451-1048 Email: Authorizec, Repre entativ : resident Title: President Signature: C ..?ot.e-o % r> NN, Onondaga County Industrial Development Agency Page 16 Page 29 of 107 Section IX: Agency Fee Schedule * Minimum Fee to be applied to all project receiving OCIDA benefits is 1% of the Total Project Cost (TPC ACTIVITY FEES COMMENTS Non- refundable Application Fee (All projects $1,000 except Solar Projects) Due at time of application Non-refundable Application Fee (Solar $10,000 Projects Only) Legal Deposit (All projects except Solar $2,500 Due at time of Projects) application Legal Deposit (Solar Projects Only) $5,000 Minimum Fee of 1% of TPC 1. Sales and Use Tax Exemption .01 X TPC Due at closing 2. Mortgage Recording Tax 3. PILOT is an additional fee .0025 X TPC (total X .0125) 4. Bond refinancing .0025 X TPC (total X .015) * Minimum Fee to be applied to all project receiving OCIDA benefits is 1% of the Total Project Cost (TPC ACTIVITY FEES COMMENTS Non- refundable Application Fee (All projects $1,000 except Solar Projects) Due at time of application Non-refundable Application Fee (Solar $10,000 Projects Only) Legal Deposit (All projects except Solar $2,500 Due at time of Projects) application Legal Deposit (Solar Projects Only) $5,000 Minimum Fee of 1% of TPC 1. Sales and Use Tax Exemption .01 X TPC Due at closing 2. Mortgage Recording Tax 3. PILOT is an additional fee .0025 X TPC (total X .0125) 4. Bond refinancing .0025 X TPC (total X .015) Projects that exceed $250,000,000 in Total Project Cost and/or create in excess of 500 new jobs, may be eligible to negotiate a non- TBD based on Executive Di rector Due at closing standard Agency fee with the Executive determination Director. Agency Legal Fees Due at closing Fee for first $20 million .0025 X of the project cost or bond amount Fee for expenses above $20 million .00125 X of project cost or bond amount Amendment or Modification of IDA documents, including but not limited to name $2500 All Projects (except Solar or organization change, refinancing, etc. Project) Due at time of Consent to the amendment or modification of $4500 Solar Projects Request IDA documents prior to closing on the project Attorney fees determined by shall be given at OCIDA's sole and absolute OCIDA Legal Representative. discretion. Projects that exceed $250,000,000 in Total Project Cost and/or create in excess of 500 new jobs, may be eligible to negotiate a non- TBD based on Executive Di rector Due at closing standard Agency fee with the Executive determination Director. Agency Legal Fees Due at closing Fee for first $20 million .0025 X of the project cost or bond amount Fee for expenses above $20 million .00125 X of project cost or bond amount Amendment or Modification of IDA documents, including but not limited to name $2500 All Projects (except Solar or organization change, refinancing, etc. Project) Due at time of Consent to the amendment or modification of $4500 Solar Projects Request IDA documents prior to closing on the project Attorney fees determined by shall be given at OCIDA's sole and absolute OCIDA Legal Representative. discretion. OCIDA reserves the right to modify this schedule at any time and assessfees 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 17 Page 30 of 107 Section X: Recapture of Tax Abatement/Exemptions Information to be Provided the Company: 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. Please refer to the OCIDA Uniform Tax Exemption Policy (UTEP). 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. If there are two applicants (Real Estate Holding and Operating Company) both need to complete this page. Name of Applicant(s) Company Hom own2, L Signature of Officer or Authorized Representative: OCIDA reserves the right to modify this schedule at any time and assessfees 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 17 Page 30 of 107 Section X: Recapture of Tax Abatement/Exemptions Information to be Provided the Company: 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. Please refer to the OCIDA Uniform Tax Exemption Policy (UTEP). 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. If there are two applicants (Real Estate Holding and Operating Company) both need to complete this page. Name of Applicant(s) Company Hom own2, L Signature of Officer or Authorized Representative: Name & Title of Officer or Authorized Representative: Anthony Mangano, Partner Date: Onondaga County Industrial Development Agency Page 31 of 107 Page 18 Section XI: Conflict of Interest Agency Board Members 1. Patrick Hogan, Chairperson 2. Janice Herzog, Vice Chairperson 3. Sue Stanczyk, Director 4. Kevin Ryan, Director 5. Fanny Villarreal, Director 6. Cydney Johnson, Director 7. Elizabeth Dreyfuss, Director Agency Officers/Staff 1. Robert M. Petrovich, Executive Director 2. Nathaniel Stevens, Treasurer 3. Alexis Rodriguez, Secretary 4. Karen Doster, Recording Secretary Agency Legal Counsel & Auditor 1. Jeffrey Davis, Esq., Barclay Damon LLP 2. Amanda Fitzgerald, Esq., Barclay Damon LLP 3. Michael G. Lisson, CPA, Grossman St. Amour Certified Public Accountants PLLC The Applicant(s) has received 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: If there are two applicants (Real Estate Holding and Operating Company) both need to complete this page. Name & Title of Officer or Authorized Representative: Anthony Mangano, Partner Date: Onondaga County Industrial Development Agency Page 31 of 107 Page 18 Section XI: Conflict of Interest Agency Board Members 1. Patrick Hogan, Chairperson 2. Janice Herzog, Vice Chairperson 3. Sue Stanczyk, Director 4. Kevin Ryan, Director 5. Fanny Villarreal, Director 6. Cydney Johnson, Director 7. Elizabeth Dreyfuss, Director Agency Officers/Staff 1. Robert M. Petrovich, Executive Director 2. Nathaniel Stevens, Treasurer 3. Alexis Rodriguez, Secretary 4. Karen Doster, Recording Secretary Agency Legal Counsel & Auditor 1. Jeffrey Davis, Esq., Barclay Damon LLP 2. Amanda Fitzgerald, Esq., Barclay Damon LLP 3. Michael G. Lisson, CPA, Grossman St. Amour Certified Public Accountants PLLC The Applicant(s) has received 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: If there are two applicants (Real Estate Holding and Operating Company) both need to complete this page. Name of Applicant(s) Company rown2, LLC Signature of Officer or Authorized Representative: Name & Title of Officer or Authorized Representative: Anthony angano, Partner Date: 74°a7 Onondaga County Industrial Development Agency Page 19 Page 32 of 107 Section XII: Representations, Certifications, and Indemnification If there are two applicants (Real Estate Holding and Operating Company) both need to complete this page. Anthony Mangano (Name of CEO or other authorized representative of Applicant)(s) confirms and says that he/she is the Partner (title) of Homegrown2, 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: Name of Applicant(s) Company rown2, LLC Signature of Officer or Authorized Representative: Name & Title of Officer or Authorized Representative: Anthony angano, Partner Date: 74°a7 Onondaga County Industrial Development Agency Page 19 Page 32 of 107 Section XII: Representations, Certifications, and Indemnification If there are two applicants (Real Estate Holding and Operating Company) both need to complete this page. Anthony Mangano (Name of CEO or other authorized representative of Applicant)(s) confirms and says that he/she is the Partner (title) of Homegrown2, 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. 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. For additional information on NYS sales and use tax see here. 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. 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. For additional information on NYS sales and use tax see here. C. 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. D. 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 Project closing documents. Please see this page for ST-340 form required in the above referenced employment report. Onondaga County Industrial Development Agency Page 20 Page 33 of 107 C. 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. D. 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 Project closing documents. Please see this page for ST-340 form required in the above referenced employment report. Onondaga County Industrial Development Agency Page 20 Page 33 of 107 E. Housing Reports and Information: The Applicant understands and agrees that if the Project is a housing project, the Applicant shall file with the Agency, at least annually or as otherwise required by the Agency, reports regarding the number of revenue-generating units constructed or reconstructed and the household income or tenant age, as applicable. Upon request of the Agency, the Applicant shall provide supporting documentation for all housing related information provided. Failure to provide such reports and supporting information shall be an event of default under the Project closing documents F. Prevailing Wage: The Applicant understands and agrees that, if the Project receives any financial assistance from the Agency, the Applicant shall determine whether the Project is a "covered project" pursuant to Section 224-a of Article 8 of the New York Labor Law and, if applicable, the Applicant shall comply with Section 224-a of Article 8 of the New York Labor Law; and the Applicant further covenants that the Applicant shall provide such evidence of the foregoing as requested by the Agency. E. Housing Reports and Information: The Applicant understands and agrees that if the Project is a housing project, the Applicant shall file with the Agency, at least annually or as otherwise required by the Agency, reports regarding the number of revenue-generating units constructed or reconstructed and the household income or tenant age, as applicable. Upon request of the Agency, the Applicant shall provide supporting documentation for all housing related information provided. Failure to provide such reports and supporting information shall be an event of default under the Project closing documents F. Prevailing Wage: The Applicant understands and agrees that, if the Project receives any financial assistance from the Agency, the Applicant shall determine whether the Project is a "covered project" pursuant to Section 224-a of Article 8 of the New York Labor Law and, if applicable, the Applicant shall comply with Section 224-a of Article 8 of the New York Labor Law; and the Applicant further covenants that the Applicant shall provide such evidence of the foregoing as requested by the Agency. 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. 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. 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: 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. 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. 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 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. § 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 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. J. 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. Onondaga County Industrial Development Agency Page 21 Page 34 of 107 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. K. The Agency has the right to request and inspect supporting documentation regarding attestations made on this application. J. 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. Onondaga County Industrial Development Agency Page 21 Page 34 of 107 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. K. The Agency has the right to request and inspect supporting documentation regarding attestations made on this application. L. 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, reconstruction, equipping 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. L. 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, reconstruction, equipping 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 22 Page 35 of 107 Name of Applicant Company: Homegrown2, LLC Signature of Officer or Authorized Representative: Name & Title of Officer or Authorized Representative: Anthony Mangano,Partner Date: q/11/2Pa Onondaga County Industrial Development Agency Page 22 Page 35 of 107 Name of Applicant Company: Homegrown2, LLC Signature of Officer or Authorized Representative: Name & Title of Officer or Authorized Representative: Anthony Mangano,Partner Date: q/11/2Pa STATE OF NEW YORK COUNTY OF ONONDAGA ) ss.; /7,V71-4p0// Ab4U6 etieVO , being first duly sworn, deposes and says: 1. That I am the lar:VrIL (Corporate Officer) of ilatie-6,--getha, (LC- - (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 (Signatur of Officer) Subscribed and affirmed to me under penalties of perjury this 5e, \3 Le" 24aref- 2; 20 2-q . M KJ, (Notary Public) Wiliam M. Mack Jr. Notary Public State of New York Qualified in Onon. Co. No. 011%6286450 My Commission Expires July 22, 20 2- , End of Application STATE OF NEW YORK COUNTY OF ONONDAGA ) ss.; /7,V71-4p0// Ab4U6 etieVO , being first duly sworn, deposes and says: 1. That I am the lar:VrIL (Corporate Officer) of ilatie-6,--getha, (LC- - (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 (Signatur of Officer) Subscribed and affirmed to me under penalties of perjury this 5e, \3 Le" 24aref- 2; 20 2-q . M KJ, (Notary Public) Wiliam M. Mack Jr. Notary Public State of New York Qualified in Onon. Co. No. 011%6286450 My Commission Expires July 22, 20 2- , End of Application Rev 2. 15.23 Onondaga County Industrial Development Agency Page 23 Page 36 of 107 OCIDA Application for Homegrown2, LLC Home2 Suites by Hilton ADDENDUM TO SECTION II: Project and Site Information D) Project Narrative, E) Description of Project, and G); and SECTION V: For Retail Projects Only 1), 3), and 4). Rev 2. 15.23 Onondaga County Industrial Development Agency Page 23 Page 36 of 107 OCIDA Application for Homegrown2, LLC Home2 Suites by Hilton ADDENDUM TO SECTION II: Project and Site Information D) Project Narrative, E) Description of Project, and G); and SECTION V: For Retail Projects Only 1), 3), and 4). The Proposed Project is a 110-suite extended stay hotel known as Home2 Suites by Hilton and has a unique design which will attract guests whose stay averages six to 14 days, as opposed to the average hotel stay of two days in the Central New York region. This means that the clientele are far more likely to be business groups engaging with local businesses, project developers, and educational institutions. The Project will operate with a Home2Suites franchise affiliated with Hilton. Homegrown2, LLC is owned by third-generation of the Emmi/Mangano families and will own and operate Home2 Suites by Hilton, which will be the family’s seventh hotel. The guest room size and components consist of two different studio layouts. Sixty-five percent (65%) of which include two queen beds with 419 square feet of space, accommodating up to six guests; and twenty-five (25%) of which contain a king-size bed with 344 square feet of space, accommodating up to four guests. The remaining ten percent (10%) of rooms will be one- bedroom private suites with a king-size bed with 539 square feet of space, which can accommodate up to four quests. All rooms have full-size sleeper sofas, dedicated work surfaces, refrigerators, dishwashers, and microwaves. The Proposed Project is a 110-suite extended stay hotel known as Home2 Suites by Hilton and has a unique design which will attract guests whose stay averages six to 14 days, as opposed to the average hotel stay of two days in the Central New York region. This means that the clientele are far more likely to be business groups engaging with local businesses, project developers, and educational institutions. The Project will operate with a Home2Suites franchise affiliated with Hilton. Homegrown2, LLC is owned by third-generation of the Emmi/Mangano families and will own and operate Home2 Suites by Hilton, which will be the family’s seventh hotel. The guest room size and components consist of two different studio layouts. Sixty-five percent (65%) of which include two queen beds with 419 square feet of space, accommodating up to six guests; and twenty-five (25%) of which contain a king-size bed with 344 square feet of space, accommodating up to four guests. The remaining ten percent (10%) of rooms will be one- bedroom private suites with a king-size bed with 539 square feet of space, which can accommodate up to four quests. All rooms have full-size sleeper sofas, dedicated work surfaces, refrigerators, dishwashers, and microwaves. In his letter dated July 17, 2024, Danny Liedka of Visit Syracuse Inc. has represented that the area is currently significantly underserved with regard to extended stay facilities even before taking into account the anticipated market impacts of the Micron Project. The letter goes on to highlight the negative impact that the lack of supply of this type of facility has on the business travelers, relocating employees, construction workers, medical visitors as well as the impact on the housing market as individuals rent homes that would otherwise be available for sale to permanent residents. Regarding the impact on the housing market, Mr. Liedka states that “Extended stay hotels would help alleviate this pressure by providing suitable short-term accommodations.” In his letter dated July 17, 2024, Danny Liedka of Visit Syracuse Inc. has represented that the area is currently significantly underserved with regard to extended stay facilities even before taking into account the anticipated market impacts of the Micron Project. The letter goes on to highlight the negative impact that the lack of supply of this type of facility has on the business travelers, relocating employees, construction workers, medical visitors as well as the impact on the housing market as individuals rent homes that would otherwise be available for sale to permanent residents. Regarding the impact on the housing market, Mr. Liedka states that “Extended stay hotels would help alleviate this pressure by providing suitable short-term accommodations.” The market study performed by Pinnacle Advisory Group identifies the extended stay demand as driven by the needs of consultants, film crews, construction crews as well as the demand generated by temporarily displaced homeowners and renters. Without taking into account the Micron impact as the timing of the anticipated additional demand is still unclear, Pinnacle estimates that the other market drivers will increase the demand from 2025 to 2026 in upper midscale extended stay facilities by 11,000 room nights with an additional increase of an additional 4,500 room nights in the following year. After the initial year of integration into the market, the Pinnacle Advisory Group study projects occupancy of 73% in 2027 and 74% for each year thereafter through 2030, which is indicative of a high demand for the type of rooms being proposed. Rosanne Pickard of Lockheed Martin in her letter dated August 5 in support of the Project identifies the need for more extended stay facilities proximate to Lockheed Martin and the fact 29629583.1 Page 37 of 107 that the demand for long-term occupancies in the area has manifested itself in the lack of availability of rooms for its visiting customers causing them to travel a greater distance to find suitable accommodations. Ms. Pickard has also identified the anticipated increase in their demand as Lockheed Martin has multiple new radar contracts coming online in the next several years. The market study performed by Pinnacle Advisory Group identifies the extended stay demand as driven by the needs of consultants, film crews, construction crews as well as the demand generated by temporarily displaced homeowners and renters. Without taking into account the Micron impact as the timing of the anticipated additional demand is still unclear, Pinnacle estimates that the other market drivers will increase the demand from 2025 to 2026 in upper midscale extended stay facilities by 11,000 room nights with an additional increase of an additional 4,500 room nights in the following year. After the initial year of integration into the market, the Pinnacle Advisory Group study projects occupancy of 73% in 2027 and 74% for each year thereafter through 2030, which is indicative of a high demand for the type of rooms being proposed. Rosanne Pickard of Lockheed Martin in her letter dated August 5 in support of the Project identifies the need for more extended stay facilities proximate to Lockheed Martin and the fact 29629583.1 Page 37 of 107 that the demand for long-term occupancies in the area has manifested itself in the lack of availability of rooms for its visiting customers causing them to travel a greater distance to find suitable accommodations. Ms. Pickard has also identified the anticipated increase in their demand as Lockheed Martin has multiple new radar contracts coming online in the next several years. Nick Paro, Town of Salina Town Supervisor in his letter dated July 31, 2024 indicates that this hotel will help Onondaga County continue to attract and accommodate both leisure and business travel to the area. Supervisor Paro also states that there have been recent closures of over 450 rooms within area hotels with no indication of reopening. He further states that this facility will help support the demand for overnight accommodations within the Town of Salina of major employers in the area such as Lockheed Martin, Crouse Hinds, those traveling to and from Hancock International Airport, and also the much anticipated Micron development in nearby Town of Clay. Nick Paro, Town of Salina Town Supervisor in his letter dated July 31, 2024 indicates that this hotel will help Onondaga County continue to attract and accommodate both leisure and business travel to the area. Supervisor Paro also states that there have been recent closures of over 450 rooms within area hotels with no indication of reopening. He further states that this facility will help support the demand for overnight accommodations within the Town of Salina of major employers in the area such as Lockheed Martin, Crouse Hinds, those traveling to and from Hancock International Airport, and also the much anticipated Micron development in nearby Town of Clay. A review of booking information for other hospitality facilities in the immediate area highlight the out of region draw of the proposed facility and the lack of local utilization. At the two Hilton chain facilities closest to the proposed location of the Project, on average, over the course of a year, only 9.5% of the occupants are from a CNY zip code. The reason local residents are in need of short-term accommodations are often due to a house fire or flooding, or scheduling issue moving into new housing. However, this clientele represents a small portion of the anticipated customer mix for this Project. Over 90% of residents are drawn to the area for businesses and government travel, entertainment such as concerts, sports events and tournaments or attendance at local educational facilities. Currently, over 30% of room occupants are from just 14 US and Canadian cities, such as Albany, Rochester, Buffalo and New York City, but also include Philadelphia, Chicago, Atlanta, Boston, Toronto and Dallas. The Project will support the County’s tourism goals for the following reasons: A review of booking information for other hospitality facilities in the immediate area highlight the out of region draw of the proposed facility and the lack of local utilization. At the two Hilton chain facilities closest to the proposed location of the Project, on average, over the course of a year, only 9.5% of the occupants are from a CNY zip code. The reason local residents are in need of short-term accommodations are often due to a house fire or flooding, or scheduling issue moving into new housing. However, this clientele represents a small portion of the anticipated customer mix for this Project. Over 90% of residents are drawn to the area for businesses and government travel, entertainment such as concerts, sports events and tournaments or attendance at local educational facilities. Currently, over 30% of room occupants are from just 14 US and Canadian cities, such as Albany, Rochester, Buffalo and New York City, but also include Philadelphia, Chicago, Atlanta, Boston, Toronto and Dallas. The Project will support the County’s tourism goals for the following reasons:  The current census of hospitality rooms in the greater Syracuse market has eliminated the ability of the community to meet the minimum standards for such events as the NCAA basketball regionals or other large regional demand events.  The recent announcement of the conversion of the University Sheraton and the Crowne Plaza to apartment facilities has further decreased the hotel room census in the near Syracuse market further hurting the region’s ability to attract other events.  Both the construction of and subsequent operation of the first phase of the Micron fabs will create a huge demand for extended stay suites as teams of consultants, engineers and other specialists provide support to the development of the Micron project. It is highly likely that all of these project support specialists will travel from outside the economic region and need accommodation for extended periods of time. The project will qualify as a tourism facility as the vast majority of the residents of the extended stay facility will be individuals who visit the site from outside the five County economic development region and provide a service in great demand and not otherwise available, as evidenced by the Market Study by Pinnacle Advisory Group. 29629583.1 Page 38 of 107  The current census of hospitality rooms in the greater Syracuse market has eliminated the ability of the community to meet the minimum standards for such events as the NCAA basketball regionals or other large regional demand events.  The recent announcement of the conversion of the University Sheraton and the Crowne Plaza to apartment facilities has further decreased the hotel room census in the near Syracuse market further hurting the region’s ability to attract other events.  Both the construction of and subsequent operation of the first phase of the Micron fabs will create a huge demand for extended stay suites as teams of consultants, engineers and other specialists provide support to the development of the Micron project. It is highly likely that all of these project support specialists will travel from outside the economic region and need accommodation for extended periods of time. The project will qualify as a tourism facility as the vast majority of the residents of the extended stay facility will be individuals who visit the site from outside the five County economic development region and provide a service in great demand and not otherwise available, as evidenced by the Market Study by Pinnacle Advisory Group. 29629583.1 Page 38 of 107 OCIDA Application for Homegrown2, LLC ADDENDUM TO SECTION I: Applicant Information B) Applicant Business Organization List of stockholders, members, or partners with % of ownership greater than 5% For Homegrown2, LLC: Mangano, LLC 50% Emmi, LLC 50% For Mangano, LLC: Rocco Mangano 33.33% Anthony Mangano 33.33% Rosemary Bianchetti 33.33% For Emmi, LLC: Anthony Emmi 16.66% Joseph Emmi 16.66% Carmen Emmi 16.66% Marc Emmi 16.66% Nanci Mathewson 16.66% Ross Emmi 16.66% Page 39 of 107 Guest Suite Types Refer to Prototype Drawings set for ADA suite layouts. King Studio Suite King One Bedroom Suite 0Q Studio Suite 344 sf 539 sf 419 sf OCIDA Application for Homegrown2, LLC ADDENDUM TO SECTION I: Applicant Information B) Applicant Business Organization List of stockholders, members, or partners with % of ownership greater than 5% For Homegrown2, LLC: Mangano, LLC 50% Emmi, LLC 50% For Mangano, LLC: Rocco Mangano 33.33% Anthony Mangano 33.33% Rosemary Bianchetti 33.33% For Emmi, LLC: Anthony Emmi 16.66% Joseph Emmi 16.66% Carmen Emmi 16.66% Marc Emmi 16.66% Nanci Mathewson 16.66% Ross Emmi 16.66% Page 39 of 107 Guest Suite Types Refer to Prototype Drawings set for ADA suite layouts. King Studio Suite King One Bedroom Suite 0Q Studio Suite 344 sf 539 sf 419 sf • Studio layout • Private bedroom Studio layout - One window • Two windows One window • Apartment shed refrigerator • Apartment sized refrigerator Apartment sized refrigerator • Full size dishwasher • Full slze dishwasher Full size dishwasher • Microwave • Microwave • Microwave • Dedicated work surface • Dedicated work surface • Dedicated work surface • Task chair • Task chair • Task chair • King Bed • Dedicated dining surface • Two Queen Beds • Full size sleeper sofa • 2 Dining chairs • Full size steeper sofa • Accommodates 4 guests • King Bed • Accommodates 6 guests • Full size sleeper sofa • Larger bathroom • Accommodates 4 guests • Studio layout • Private bedroom Studio layout - One window • Two windows One window • Apartment shed refrigerator • Apartment sized refrigerator Apartment sized refrigerator • Full size dishwasher • Full slze dishwasher Full size dishwasher • Microwave • Microwave • Microwave • Dedicated work surface • Dedicated work surface • Dedicated work surface • Task chair • Task chair • Task chair • King Bed • Dedicated dining surface • Two Queen Beds • Full size sleeper sofa • 2 Dining chairs • Full size steeper sofa • Accommodates 4 guests • King Bed • Accommodates 6 guests • Full size sleeper sofa • Larger bathroom • Accommodates 4 guests Home2 Suites / Guest Suites / 56 Page 40 of 107 Home2 Suites / Guest Suites / 56 Page 40 of 107 ZONING BOARD OF APPEALS Town of Salina July 15, 2024 A regular meeting of the Zoning Board of Appeals was held on Monday, June 15, 2024 2 at the Salina Town Hall, 201 School Road, and Liverpool at 7:00 P.M. Those present 3 were: 4 Chairman Mike Gunther 5 Member Richard Hunter [Excused] 6 Member John Muldoon 7 Member Michael Brigandi 8 Member Bill McGillivray 9 Member Judy Tassone 10 Attorney Joseph Frateschi Esq. [Excused] 11 Secretary Nancy O'Neil 12 Engineer Hannah Sheehan 13 Deputy Codes Director Peter Mitchell 14 15 16 Mr. Gunther welcomed those in attendance and explained the purpose of the meeting — 17 to hear a site plan and special permit approval consideration before the Zoning Board of 18 Appeals. 19 20 Mr. Gunther announced the Board and Ms. Hannah Sheehan as the representing 21 engineer. 22 23 APPROVAL OF MINUTES 24 25 Mr. Gunther entertained a motion to approve the minutes of July 1, 2024. Mr. Muldoon made 26 a motion, and the motion was seconded by Ms. Tassone. Mr. Gunther abstained, he was 27 excused from the July 1st meeting. It was unanimously carried by the remaining board 28 members. 29 30 OLD BUSINESS 31 32 075.-03-05.2 STEVE CALCERINOS, 241 ELWOOD DAVIS RD. 33 ZONED C-3, 4TH WARD 34 35 CASE # SITE -24-7 Applicant is seeking site plan review for a new 110 room hotel. 36 37 Mr. Steve Calocerinos, P.E. from LaBella Associates on behalf of Home 2 Suites is 38 representing the applicant is returning in front of the Board. The applicant is seeking a site 39 plan review for a new 110 room hotel located at 241 Elwood Davis Rd. Mr. Calocerinos 40 provides some review on outstanding comments: the applicant did submit their plans for 41 review to NYS Thruway Authority, capacity assurance from WEP for sewer, sent request to 42 CENTRO. Mr. Calocerinos did view the area for bus stops, there are currently four stops, 43 Elwood Davis and 7th North Street, one at Homewood Suites, one in front of BOCES and 44 another further down, there might not be a need for an addition stop. He uploaded 45 documents to the portal; photometric plan, lighting plan, landscape plan and they did a perk 46 test in the bottom of the proposed infiltration basin. He submitted an application for height 47 variance for the hotel and a waiver for parking within the front setback. 48 49 Mr. Gunther asks if they will be submitting a separate variance for signage. The applicant 50 has not finalized signage. Discussion continued with possible placement of signage, they 51 are considering only having two signs. 52 53 Mr. Muldoon inquires with the applicant regarding notification to the NYS Thruway Authority. 54 It is a requirement to notify the NYS Thruway Authority if the structure is going to face the 55 Thruway, the main entrance of this hotel will be facing the thruway. 56 ZONING BOARD OF APPEALS Town of Salina July 15, 2024 A regular meeting of the Zoning Board of Appeals was held on Monday, June 15, 2024 2 at the Salina Town Hall, 201 School Road, and Liverpool at 7:00 P.M. Those present 3 were: 4 Chairman Mike Gunther 5 Member Richard Hunter [Excused] 6 Member John Muldoon 7 Member Michael Brigandi 8 Member Bill McGillivray 9 Member Judy Tassone 10 Attorney Joseph Frateschi Esq. [Excused] 11 Secretary Nancy O'Neil 12 Engineer Hannah Sheehan 13 Deputy Codes Director Peter Mitchell 14 15 16 Mr. Gunther welcomed those in attendance and explained the purpose of the meeting — 17 to hear a site plan and special permit approval consideration before the Zoning Board of 18 Appeals. 19 20 Mr. Gunther announced the Board and Ms. Hannah Sheehan as the representing 21 engineer. 22 23 APPROVAL OF MINUTES 24 25 Mr. Gunther entertained a motion to approve the minutes of July 1, 2024. Mr. Muldoon made 26 a motion, and the motion was seconded by Ms. Tassone. Mr. Gunther abstained, he was 27 excused from the July 1st meeting. It was unanimously carried by the remaining board 28 members. 29 30 OLD BUSINESS 31 32 075.-03-05.2 STEVE CALCERINOS, 241 ELWOOD DAVIS RD. 33 ZONED C-3, 4TH WARD 34 35 CASE # SITE -24-7 Applicant is seeking site plan review for a new 110 room hotel. 36 37 Mr. Steve Calocerinos, P.E. from LaBella Associates on behalf of Home 2 Suites is 38 representing the applicant is returning in front of the Board. The applicant is seeking a site 39 plan review for a new 110 room hotel located at 241 Elwood Davis Rd. Mr. Calocerinos 40 provides some review on outstanding comments: the applicant did submit their plans for 41 review to NYS Thruway Authority, capacity assurance from WEP for sewer, sent request to 42 CENTRO. Mr. Calocerinos did view the area for bus stops, there are currently four stops, 43 Elwood Davis and 7th North Street, one at Homewood Suites, one in front of BOCES and 44 another further down, there might not be a need for an addition stop. He uploaded 45 documents to the portal; photometric plan, lighting plan, landscape plan and they did a perk 46 test in the bottom of the proposed infiltration basin. He submitted an application for height 47 variance for the hotel and a waiver for parking within the front setback. 48 49 Mr. Gunther asks if they will be submitting a separate variance for signage. The applicant 50 has not finalized signage. Discussion continued with possible placement of signage, they 51 are considering only having two signs. 52 53 Mr. Muldoon inquires with the applicant regarding notification to the NYS Thruway Authority. 54 It is a requirement to notify the NYS Thruway Authority if the structure is going to face the 55 Thruway, the main entrance of this hotel will be facing the thruway. 56 Page 41 of 107 57 Mr. McGillivray questions greenspace on the site plan. In the previous meeting it was stated 58 that there will be greenspace between the building, the sidewalk and both sides of the main 59 entrance. 60 61 Ms. Sheehan notes that she would like the applicant to notify CENTRO of the new 62 construction on Elwood Davis Rd, it is not necessary to request an additional stop. She will 63 be reviewing the perk test. Mr. Calocerinos has uploaded final information on the SWPP, he 64 will provide hard copies to Ms. Sheehan. 65 66 Mr. Gunther asked if anyone in the audience wanted to speak for or against this project. 67 None were noted. 68 69 Mr. Gunther closed the Public Hearing and asked for a determination. 70 71 Mr. Gunther made the motion that the Town of Salina Zoning Board of Appeals be the Lead 72 Agency, and Mr. Brigandi seconded the motion. It was unanimously carried by the remaining 73 board members 74 75 Mr. Gunther made a motion to approve the SEQR resolution as prepared by the Town of 76 Salina attorney finding no significant impact for the SEQR process, and Mr. Muldoon 77 seconded the motion. It was unanimously carried by the remaining board members. 78 79 Mr. Gunther makes a motion of a resolution, SITE 24-7, Katelyn Graham, 241 Elwood Davis so Rd, 075.-03-05.2 presenting a motion to approve a site plan package last dated April 24, 81 2024 prepared by LaBella Associates for property located at 241 Elwood Davis Road in the 82 Town of Salina in the County of Onondaga State of New York with the following conditions, 83 that an acceptable SWPP being submitted and approved by the Town ZBA engineer, the 84 Onondaga County Department of Water and Environmental Protection, the NYS Thruway 85 Authority and all other applicable jurisdictions. A site plan be provided and approved by the 86 Town ZBA engineer, the NYS Thruway and all other applicable jurisdictions the property 87 owner must maintain delineation between the NYS thruway authority ROW and the site, any 88 exterior signage must comply with the Town of Salina's codes and the NYS Thruway 89 advertising license and regulations and application providing capacity assurance letter from 90 WEP. This approval is was made with the further condition that the approval is for plans and 91 for other submitted documents, site plan documents that have been approved at the June 92 15th, 2024 ZBA meeting requires that all work shown be completed by the applicant in order 93 for the Certificate of Occupancy or Compliance be issued. Any proposed changes, additions 94 or deletions to the scope of work or materials to from the site plan documents are not 95 approved are subject to review, and Mr. McGillivray seconded the motion. 96 97 Mr. Gunther polled the board members. 98 Mr. Muldoon Yes 99 Mr. Brigandi Yes 100 Ms. Tassone Yes ioi Mr. McGillivray Yes 102 Mr. Gunther Yes 103 104 Site plan approved 105 106 NEW BUSINESS 107 108 045.-05-06.0 NICHOLAS MOORE, 3711 BREWERTON ROAD 109 ZONED C-2, 3RD WARD 1 10 I II CASE # SITE-24-10 Applicant is seeking a special use permit for a cannabis retail 1 12 establishment. 1 13 1 14 A representative for the applicant did not appear on behalf of the applicant. I 15 1 16 ADJOURNMENT 1 17 Page 41 of 107 57 Mr. McGillivray questions greenspace on the site plan. In the previous meeting it was stated 58 that there will be greenspace between the building, the sidewalk and both sides of the main 59 entrance. 60 61 Ms. Sheehan notes that she would like the applicant to notify CENTRO of the new 62 construction on Elwood Davis Rd, it is not necessary to request an additional stop. She will 63 be reviewing the perk test. Mr. Calocerinos has uploaded final information on the SWPP, he 64 will provide hard copies to Ms. Sheehan. 65 66 Mr. Gunther asked if anyone in the audience wanted to speak for or against this project. 67 None were noted. 68 69 Mr. Gunther closed the Public Hearing and asked for a determination. 70 71 Mr. Gunther made the motion that the Town of Salina Zoning Board of Appeals be the Lead 72 Agency, and Mr. Brigandi seconded the motion. It was unanimously carried by the remaining 73 board members 74 75 Mr. Gunther made a motion to approve the SEQR resolution as prepared by the Town of 76 Salina attorney finding no significant impact for the SEQR process, and Mr. Muldoon 77 seconded the motion. It was unanimously carried by the remaining board members. 78 79 Mr. Gunther makes a motion of a resolution, SITE 24-7, Katelyn Graham, 241 Elwood Davis so Rd, 075.-03-05.2 presenting a motion to approve a site plan package last dated April 24, 81 2024 prepared by LaBella Associates for property located at 241 Elwood Davis Road in the 82 Town of Salina in the County of Onondaga State of New York with the following conditions, 83 that an acceptable SWPP being submitted and approved by the Town ZBA engineer, the 84 Onondaga County Department of Water and Environmental Protection, the NYS Thruway 85 Authority and all other applicable jurisdictions. A site plan be provided and approved by the 86 Town ZBA engineer, the NYS Thruway and all other applicable jurisdictions the property 87 owner must maintain delineation between the NYS thruway authority ROW and the site, any 88 exterior signage must comply with the Town of Salina's codes and the NYS Thruway 89 advertising license and regulations and application providing capacity assurance letter from 90 WEP. This approval is was made with the further condition that the approval is for plans and 91 for other submitted documents, site plan documents that have been approved at the June 92 15th, 2024 ZBA meeting requires that all work shown be completed by the applicant in order 93 for the Certificate of Occupancy or Compliance be issued. Any proposed changes, additions 94 or deletions to the scope of work or materials to from the site plan documents are not 95 approved are subject to review, and Mr. McGillivray seconded the motion. 96 97 Mr. Gunther polled the board members. 98 Mr. Muldoon Yes 99 Mr. Brigandi Yes 100 Ms. Tassone Yes ioi Mr. McGillivray Yes 102 Mr. Gunther Yes 103 104 Site plan approved 105 106 NEW BUSINESS 107 108 045.-05-06.0 NICHOLAS MOORE, 3711 BREWERTON ROAD 109 ZONED C-2, 3RD WARD 1 10 I II CASE # SITE-24-10 Applicant is seeking a special use permit for a cannabis retail 1 12 establishment. 1 13 1 14 A representative for the applicant did not appear on behalf of the applicant. I 15 1 16 ADJOURNMENT 1 17 Page 42 of 107 1 18 Mr. Gunther entertained a motion to close the Zoning Board of Appeals at 7:17pm. Mr. 1 19 McGillivray made the motion. It was seconded by Mr. Brigandi and it was unanimously 120 carried. The meeting was adjourned. 121 122 123 Prepared By: 124 Nancy O'Neil, Secretary Page 43 of 107 Page 42 of 107 1 18 Mr. Gunther entertained a motion to close the Zoning Board of Appeals at 7:17pm. Mr. 1 19 McGillivray made the motion. It was seconded by Mr. Brigandi and it was unanimously 120 carried. The meeting was adjourned. 121 122 123 Prepared By: 124 Nancy O'Neil, Secretary Page 43 of 107 HOME2 SUITES 241 ELWOOD DAVIS ROAD SALINA, NY 13088 ▪ AN. ✓t: 37 HOME2 SUITES 241 ELWOOD DAVIS ROAD SALINA, NY 13088 ▪ AN. ✓t: 37 9CD 1. err DRAWING INDEX ff •1". PROJECT LOCATION eD4 COVER SHEET * 4,1;3 G101 GENERAL NOTES AND LEGEND C101 DOTING CONDITIONS AND DEMOLITION PLAN C201 SITE PLAN C202 EMERGENCY VEHICLE TURNING MOVEMENT 0301 UTILITY PLAN •;,4e. )4.Qt \ 0401 GRADING PLAN C402 EROSION AND SEDIMENT CONTROL PLAN 0501 DETAILS h est0.-- „ seStt to it 1,426 C502 DETAILS tt; J .5 fr4 C503 DETAILS 9CD 1. err DRAWING INDEX ff •1". PROJECT LOCATION eD4 COVER SHEET * 4,1;3 G101 GENERAL NOTES AND LEGEND C101 DOTING CONDITIONS AND DEMOLITION PLAN C201 SITE PLAN C202 EMERGENCY VEHICLE TURNING MOVEMENT 0301 UTILITY PLAN •;,4e. )4.Qt \ 0401 GRADING PLAN C402 EROSION AND SEDIMENT CONTROL PLAN 0501 DETAILS h est0.-- „ seStt to it 1,426 C502 DETAILS tt; J .5 fr4 C503 DETAILS Ome i t-vy M iddie 474 ' L100 L101 OVERALL PLANTING PLAN PLANTING PLAN Schaal LIDS PLANTING PLAN "IS • 4 tt . v6 LIDS PLANTING DETAILS A. NOTES 1.104 OVERALL PLANT SCHEDULE Ome i t-vy M iddie 474 ' L100 L101 OVERALL PLANTING PLAN PLANTING PLAN Schaal LIDS PLANTING PLAN "IS • 4 tt . v6 LIDS PLANTING DETAILS A. NOTES 1.104 OVERALL PLANT SCHEDULE giel" EOM 1050 ELECTRICAL LEGEND ELECTRICAL SITE PLAN LOCATION MAP SCALE N T s. E051 SITE LIGHTING PHOTOMETRIC PLAN E500 ELECTRICAL DETAILS giel" EOM 1050 ELECTRICAL LEGEND ELECTRICAL SITE PLAN LOCATION MAP SCALE N T s. E051 SITE LIGHTING PHOTOMETRIC PLAN E500 ELECTRICAL DETAILS PROJECT DATA HOMEGROWN2, LLC PARCEL INFORMATION 275 ELWOOD DAVIS ROAD NOMENNII12.ILL ELV/000 ItAvIS ROAD PlY I3088 SALINA, NY 13088 °A= PROJECT NO: 2240064 2.190ES 00.1 AUGUST 2024 PROJECT DATA HOMEGROWN2, LLC PARCEL INFORMATION 275 ELWOOD DAVIS ROAD NOMENNII12.ILL ELV/000 ItAvIS ROAD PlY I3088 SALINA, NY 13088 °A= PROJECT NO: 2240064 2.190ES 00.1 AUGUST 2024 LaBella Powered by partnership. 316 S. Clinton Street, 2nd Floor Syracuse, NY 13202 315-766-1128 labellapc.com Page 44 of 107 LaBella Powered by partnership. 316 S. Clinton Street, 2nd Floor Syracuse, NY 13202 315-766-1128 labellapc.com Page 44 of 107 GENERAL NOTES GRADING NOTES LEGEND D M LaBella Powered by partnership. I TX LOW2.70,2 51012, PE550.21.510.21E1.2155002.2 711250.222XXI WAAL COMO. 201.50.2.74151% 05.21411,02.114224 n.7200.5.2.46 RWATE.X3 2622.24.4442.20.2.50.62501052,1277 APEC4.2155W. EXISTING PROPOSED DESCRIPTION EXISTING PROPOSED DESCRIPTION ODER21024. 17.5002125.45 52117.711NEDEMARE WED. X 316 S. Clinton Street, 2nd Floor 502 MAW* fiCLOONGIN,02EXSITEANOACAXENT WO MOO . 21.22.7100115TEMEHRESDADLADED 01.52.2.5 n/INE 22211507 2...CONniOL Syracuse, NY 13202 110.2.5. 0.23.200.10 0.25 222022.5 SHALL 22.22TAXO POD. .21VGDOVEDIF 00515701201104 ADAI00 315-7661128 &XIX L05.41.5 0 xnx.0020 non 02..o 252.2.025 250.4250110254O 00.25.022.15 CONS.AED TO BE POT 02 1505 labellasc.com SPEC. 03115405.XEMEDESSMV 711 20.221.112 ADD 04222 220.0.4221.2720202 C05150120. Oxon 0 **.**** 01 1 GENERAL NOTES GRADING NOTES LEGEND D M LaBella Powered by partnership. I TX LOW2.70,2 51012, PE550.21.510.21E1.2155002.2 711250.222XXI WAAL COMO. 201.50.2.74151% 05.21411,02.114224 n.7200.5.2.46 RWATE.X3 2622.24.4442.20.2.50.62501052,1277 APEC4.2155W. EXISTING PROPOSED DESCRIPTION EXISTING PROPOSED DESCRIPTION ODER21024. 17.5002125.45 52117.711NEDEMARE WED. X 316 S. 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Of ALLE051010 MOVE GROUND AMA 5005. 041570. 00 20.511.52WEA. BELOW 020MOUTAX26.57DUCTURES DEXT.A.XES 520. ON 1,5 Nµ5 0. 211,45,550O6 ADO LOV1.24.0205L0 In5 52021.000 10 ACCDMIXD IDE ADIAMBIATE APE AM MANNER° 00500.0012 SMALL BE WORK Pon 2110505 Ann 2.11110.0271205 EMU BE 52.4710 APPROVAL X n55120.25. 02.54.6 NE DALT ADIPDVITAL AM LOGTIOX Of .524GROX ALL in no5.5Tno.4225. AND 24.72x.f. TA2 AMAX...CAM 70 ROAM° WODD. 0 TX LOW.. 5,0A AF PEOUDDA TO 7,222, mom 40.5.270 CONDON DX7 22022t SNALL IX 2.49.0 70 52XN TRAVELED WAS X TR APDXELINNYEEP AGE. 24.2246, THE 2.2202512AND D.. WO MIX OWNERS OEOXIATED DEPPESE50.42 MAY OEM*. PIE 5,1142522 Or 0.5.21.100 An525 lonnEnnES VIAL Pr NAINTANAD 2.27.720725 To2.250.2 WATU2.52222 2252.205 0.. 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SAVA. 05515150 NAM( 5 I 222.20.2/40552,25 NOTED 2202v5.2.2.572.204 05.20232TS AND 24202.710.20.0 XXI RAO. 5055505 552222 BE RAMEDLATELY /IMMO 70 .50145112X1205.522555 AnD L285.2.5500215SPRO4557 DANA. rivenn. ". 122555250.*P5RXDOVAXI WOW 05.51Alin.55512.11A5005210LI. 2.207 11.121. Ai MD 005770 DT XXXII A21.12.90 An. 400.2.75w2..2 211 2240064 05.26 APPROVAL. On. 2 LOOPMATO LOOM. 05125•701.2.51. 272022 RICE ADDIDIADOnARY SLR/ SNH STA.D MD.. O. -05 NS SITE NOTES .511r0,051 BID I OLL crwAr.550 sufixAcE 25222 85 nunnLoncE COX 0 22.22/4TAID7 CONCRETE onsES 2 222 222, 2222,2222. 202 2, 222,0220 , 2022202, 22,22 222 22. 222, 2 AUGUST 13, 2024 42.0222. VAIL 21CLOSLO L. SAVA. 05515150 NAM( 5 I 222.20.2/40552,25 NOTED 2202v5.2.2.572.204 05.20232TS AND 24202.710.20.0 XXI RAO. 5055505 552222 BE RAMEDLATELY /IMMO 70 .50145112X1205.522555 AnD L285.2.5500215SPRO4557 DANA. rivenn. 4 02.02242022940 0.051550 51.252 OVA 52.11.0 TOO 61200511.4 SO2La SALL BE MEM. IXERMAKE 02..0050.0 re. WAXED GENERAL NOTES 5200225050 PEP5051{2 MATO PLAUlala 0552100.45E*.AL. MEMOIR .50025D 02 0/2214.505 SIXOL .2 AND 05.112 ATLEAST no0.2.025 AND LEGEND 0.205EX705ED 500642.2 0.1VM MAME 4 02.02242022940 0.051550 51.252 OVA 52.11.0 TOO 61200511.4 SO2La SALL BE MEM. IXERMAKE 02..0050.0 re. WAXED GENERAL NOTES 5200225050 PEP5051{2 MATO PLAUlala 0552100.45E*.AL. MEMOIR .50025D 02 0/2214.505 SIXOL .2 AND 05.112 ATLEAST no0.2.025 AND LEGEND 0.205EX705ED 500642.2 0.1VM MAME C001 Page 45 of 107 C001 Page 45 of 107 ELWOOD LOT No. 8 LOCADON PLAN RpgO Scale ELWOOD LOT No. 8 LOCADON PLAN RpgO Scale EMMI COMMERCE PARK OEVELOPMENT, LLC kRepozro EMMI COMMERCE PARK OEVELOPMENT, LLC kRepozro C-3 PLANNED COMMERCIAL DISTRICT LOT 1 AREA-279± Acres T CO fp 1.14,) vr[ I CORTLAND. AND MADISON COUNTIES, NEW YORK C-3 PLANNED COMMERCIAL DISTRICT LOT 1 AREA-279± Acres T CO fp 1.14,) vr[ I CORTLAND. 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SO Erriernen 1.1anagerneru Agency Nolionol FIcnd Insurance Proram Flood e Rate “p Cornmuni, Pan, No. 360591 2069E, ZONE CHANGE RON N /0. setback 0-2 OFFICE AND LICHT DISTRICT INDUSTRIAL en Mnaimnri ne.g. or structures PARK DISTRICT To C-3 PLANNED COMMERCIAL DISTRICT PART Of LOT No 17 GRAPHIC SCALE , as well e nutside stn., ork State onIcrnotile inspect, TOWN OF SALINA ONONDAGA COUNTY. NEW YORK Erriernen 1.1anagerneru Agency Nolionol FIcnd Insurance Proram Flood e Rate “p Cornmuni, Pan, No. 360591 2069E, ZONE CHANGE RON N /0. setback 0-2 OFFICE AND LICHT DISTRICT INDUSTRIAL en Mnaimnri ne.g. or structures PARK DISTRICT To C-3 PLANNED COMMERCIAL DISTRICT PART Of LOT No 17 GRAPHIC SCALE , as well e nutside stn., ork State onIcrnotile inspect, TOWN OF SALINA ONONDAGA COUNTY. NEW YORK / _ IANUZI K ROMANS LAND SURVEMIS PG 3111 nAll MAR. 7. 2024 / _ IANUZI K ROMANS LAND SURVEMIS PG 3111 nAll MAR. 7. 2024 fiLL xe 320 Olt FO N. 1620 Page 46 of 107 0,LaBella Powered by partnership. 316 S. Clinton Street, 2nd Floor Syracuse. NY 13202 315.766-1126 la bells po,com fiLL xe 320 Olt FO N. 1620 Page 46 of 107 0,LaBella Powered by partnership. 316 S. Clinton Street, 2nd Floor Syracuse. NY 13202 315.766-1126 la bells po,com CERTP.I.: 0! nillifAIVIVI I PROFESSICM. MIER. LAND SORAII. 0,976 GEOLOGLALOTION me volOon ol 7709 f. /4 14 Lixl No 8 Set MO, torwrovson of ,enset • .em Derv, nr,c1.,Inter wire au,tr '-- ft Om MO seal /..byr.kina, are 01.1 CERTP.I.: 0! nillifAIVIVI I PROFESSICM. MIER. LAND SORAII. 0,976 GEOLOGLALOTION me volOon ol 7709 f. /4 14 Lixl No 8 Set MO, torwrovson of ,enset • .em Derv, nr,c1.,Inter wire au,tr '-- ft Om MO seal /..byr.kina, are 01.1 HOMEGROWN2, LLC 175 FLWOOD DAVIS ROAD SALINA W 13088 HOMEGROWN2, LLC 175 FLWOOD DAVIS ROAD SALINA W 13088 PIKS PM W VW, VA,in ka, GRUB. PIKS PM W VW, VA,in ka, GRUB. HOME2 SUITES SALINA, NEW YORK ELWOOD DAVIS ROAD SALM NY 13088 orsornool PnWLI RIMER 1240064 OPVITI BY 810/SBR /INIFWEIM RJS BID HOME2 SUITES SALINA, NEW YORK ELWOOD DAVIS ROAD SALM NY 13088 orsornool PnWLI RIMER 1240064 OPVITI BY 810/SBR /INIFWEIM RJS BID AUGUST 13, 1024 L AUGUST 13, 1024 L EXISTING CONDITIONS AND DEMOLITION PLAN DRAWING N.. EXISTING CONDITIONS AND DEMOLITION PLAN #® sc. i• -30. C101 Page 47 of 107 EXISTING CONDITIONS AND DEMOLITION PLAN DRAWING N.. EXISTING CONDITIONS AND DEMOLITION PLAN #® sc. i• -30. C101 Page 47 of 107 MA, SONS NC APPLICANT: MOME490.12. LaBella Powered by partnership 275EMOODAVVICAO 215 ELWOOD DANS ADM, tiVAPOOL LIVERPOOL AM INV 316 S. Clinton Street. 2nd Floor PAK. MI 10 NO ' -03-05 Syracuse. NY 13202 a75.11 , 315-766-1128 MA, SONS NC APPLICANT: MOME490.12. LaBella Powered by partnership 275EMOODAVVICAO 215 ELWOOD DANS ADM, tiVAPOOL LIVERPOOL AM INV 316 S. Clinton Street. 2nd Floor PAK. MI 10 NO ' -03-05 Syracuse. NY 13202 a75.11 , 315-766-1128 'MDR E lg • SORTS la belle pe tom L.3 RAW, tOrPalil. 'MDR E lg • SORTS la belle pe tom L.3 RAW, tOrPalil. PROPOVIV•PIONOPO 0 .000 A Y 20, 30, AIN, 7PO4P -0 ttr I PROPOVIV•PIONOPO 0 .000 A Y 20, 30, AIN, 7PO4P -0 ttr I MINGO, GIASIRD.1 AWSWelf ',DOOM CNICAFT;' MINGO, GIASIRD.1 AWSWelf ',DOOM CNICAFT;' ,s v.. of Herr , et,Fez. AV..= MU. 10 \ Set .011ar persmomens unerte ASPSAL1- o^ ,ern.q , SAM. PAW ME 0 SIMIVAIR blannp gra oda. smor Inere0 dterft art,Int 41,1 Mem ,elr sed.rotallgr, al,ta, ,s v.. of Herr , et,Fez. AV..= MU. 10 \ Set .011ar persmomens unerte ASPSAL1- o^ ,ern.q , SAM. PAW ME 0 SIMIVAIR blannp gra oda. smor Inere0 dterft art,Int 41,1 Mem ,elr sed.rotallgr, al,ta, PROPOSED EV ClIAPOING STATION ,Irr Of 61 as 6 a HO MEGROWN2, LLC 375 FLW000 DAVIS ROAD SAUNA. NV IMPS aa.a~l Ea PROPOSED EV ClIAPOING STATION ,Irr Of 61 as 6 a HO MEGROWN2, LLC 375 FLW000 DAVIS ROAD SAUNA. NV IMPS aa.a~l Ea 'ATV( PlICPOSEDDONCIETE • mar ROPY. CONDAPTE PO. (MI V.DA BOtalIDS (MI i p,DpDSED (PMII room um, NNe 'ATV( PlICPOSEDDONCIETE • mar ROPY. CONDAPTE PO. (MI V.DA BOtalIDS (MI i p,DpDSED (PMII room um, NNe HOME2 SUITES SALINA, NEW YORK ELWOOD DAVIS PM SAUK NY Mee DrSCMPIOI. HOME2 SUITES SALINA, NEW YORK ELWOOD DAVIS PM SAUK NY Mee DrSCMPIOI. Man! ILIA. 2240061 Man! ILIA. 2240061 BLPI060 PJS ISSUE3 FIR BID BLPI060 PJS ISSUE3 FIR BID AUGUST 11 2024 AUGUST 11 2024 DOMING IOW DOMING IOW SITE PLAN SITE PLAN SITE PLAN SCALE = 30- C201 Page 48 of 107 LaBella Powered by partnership 216S Clinton Street, 2nd Floor Syracuse, NY 13202 315-766-1128 leinellepc.com SITE PLAN SCALE = 30- C201 Page 48 of 107 LaBella Powered by partnership 216S Clinton Street, 2nd Floor Syracuse, NY 13202 315-766-1128 leinellepc.com CROSS SECTION CROSS SECTION UNIEDURVEDIAD 017 GDOLDGEN 018750 A la ARO. ol.DoetkurADOT I.DA 1.15. 770,15/4. IAD , to, oo Oft, ier,, MT DODD/ PArtitTO AMC DIDDLATkrofte UNIEDURVEDIAD 017 GDOLDGEN 018750 A la ARO. ol.DoetkurADOT I.DA 1.15. 770,15/4. IAD , to, oo Oft, ier,, MT DODD/ PArtitTO AMC DIDDLATkrofte HOMEGROWN2, LLC 275 FLWOOD DAVIS ROAD • SALINA. 8513088 4? HOME2 SUITES SALINA, NEW YORK ELWOOD DAV15 ROAD SALINA. NY 13088 --"" 2248861 KG a RE HOMEGROWN2, LLC 275 FLWOOD DAVIS ROAD • SALINA. 8513088 4? HOME2 SUITES SALINA, NEW YORK ELWOOD DAV15 ROAD SALINA. NY 13088 --"" 2248861 KG a RE I 1,51/FODOR BID I 1,51/FODOR BID AUGUST 13, 2024 DIADAUGRAIDF AUGUST 13, 2024 DIADAUGRAIDF EMERGENCY VEHICLE TURNING MOVEMENTS EMERGENCY VEHICLE TURNING MOVEMENTS ENADDH1D WAR, ENADDH1D WAR, EMERGENCY VEHICLE TURNING MOVEMENTS io do. SCAti r =de IT6I%!! C202 Page 49 of 107 O r-, LaBella s.. E Powered by partnership 3165 Comm! Sue.. 2nd Hoar Syracuse, NY 13202 315 , 766-1128 la bellapc Ann, EMERGENCY VEHICLE TURNING MOVEMENTS io do. SCAti r =de IT6I%!! C202 Page 49 of 107 O r-, LaBella s.. E Powered by partnership 3165 Comm! Sue.. 2nd Hoar Syracuse, NY 13202 315 , 766-1128 la bellapc Ann, MILL 71',36 7 WPM / 001.1010,00EVAL". CEPTIBUTE Of PUTOP.0010 MUM. RIVESSIDNAL flifih.01.010.1 .10 SCINV.10, 0 0.0 GEOLOGIC. 010.0 7 0"'"" 14 LIGn, =On =OTIO=ER Ai 11.001101 00.0n dr.,. 0.00000 lay.. .0 V. 3 Art MILL 71',36 7 WPM / 001.1010,00EVAL". CEPTIBUTE Of PUTOP.0010 MUM. RIVESSIDNAL flifih.01.010.1 .10 SCINV.10, 0 0.0 GEOLOGIC. 010.0 7 0"'"" 14 LIGn, =On =OTIO=ER Ai 11.001101 00.0n dr.,. 0.00000 lay.. .0 V. 3 Art ta7== -4:70:707=0Z0= 0 0. 0,0,11.000 Ow 0np0000.1000 su.e0 .5.2.0.00 , 1 IA:=0 ,174g 1allr ' e;== "" ." ellE . spa. mnipoon due ern. ta7== -4:70:707=0Z0= 0 0. 0,0,11.000 Ow 0np0000.1000 su.e0 .5.2.0.00 , 1 IA:=0 ,174g 1allr ' e;== "" ." ellE . spa. mnipoon due ern. HOMEGROWN2, LLC 275 FIAVOOD nams ROAD SALINA. NY 13088 L HOMEGROWN2, LLC 275 FIAVOOD nams ROAD SALINA. NY 13088 L CCORMA COMIE7101110 RAMC HOME2 SUITES SALINA, NEW YORK ELWOOD DANS ROAD SALINA NY 13008 CCORMA COMIE7101110 RAMC HOME2 SUITES SALINA, NEW YORK ELWOOD DANS ROAD SALINA NY 13008 PPPP'PP' 012 POE 01.0.100 vewrcr 0MR. 1240064 MOM 318/ SOH MTV 2115 BID PPPP'PP' 012 POE 01.0.100 vewrcr 0MR. 1240064 MOM 318/ SOH MTV 2115 BID AUGUST 13 2020 NAVAL AA. AUGUST 13 2020 NAVAL AA. UTILITY PLAN 0.1.04 WA. UTILITY PLAN 0.1.04 WA. UTILITY PLAN C 30 00 C301 Page 50 of 107 LaBella L.... Powered by partnership. 316 S. Clinton Street. 200 Floor Syracuse. NY 13202 315-166-1128 la belle pc eom J alklø1CAIED AUTMOMEAT,Ox.A., rola. ro.Faur.... IAS Sec 72096.14, ,Rrsor, mlen mon,reer ffirnlion kens. e.li.l.polins.......prlandlwge, wry g. surt,M1P,,Ineer. wind un., mItn6Ine 3nA mitallon.erre bte ohm. va UTILITY PLAN C 30 00 C301 Page 50 of 107 LaBella L.... Powered by partnership. 316 S. Clinton Street. 200 Floor Syracuse. NY 13202 315-166-1128 la belle pc eom J alklø1CAIED AUTMOMEAT,Ox.A., rola. ro.Faur.... IAS Sec 72096.14, ,Rrsor, mlen mon,reer ffirnlion kens. e.li.l.polins.......prlandlwge, wry g. surt,M1P,,Ineer. wind un., mItn6Ine 3nA mitallon.erre bte ohm. va HOMEGROWN2, LLC 275 MS0130 DAVIS ROAD SALINA. NY 130118 HOMEGROWN2, LLC 275 MS0130 DAVIS ROAD SALINA. NY 130118 HOME2 SUITES SALINA, NEW YORK ELWOOD WAS 60A0 SALIM. NY 13088 Deerrallai. HOME2 SUITES SALINA, NEW YORK ELWOOD WAS 60A0 SALIM. NY 13088 Deerrallai. PROFCT IAMB 2140064 KG 0.15 BIO PROFCT IAMB 2140064 KG 0.15 BIO AUGUST 13, 2024 GPMVI.NAME AUGUST 13, 2024 GPMVI.NAME GRADING PLAN OFIAMO.A0E.F1 C401 Page 51 of 107 Page 52 of 107 COMPREHENSIVE MARKET DEMAND STUDY AND FINANCIAL PROJECTIONS PROPOSED HOME2 SUITES ELWOOD DAVIS ROAD LIVERPOOL, NY 13088 PREPARED FOR: Tony Mangano and Carmen Emmi Homegrown2, LLC 275 Elwood Davis Road Liverpool, NY 13088 PREPARED BY: GRADING PLAN OFIAMO.A0E.F1 C401 Page 51 of 107 Page 52 of 107 COMPREHENSIVE MARKET DEMAND STUDY AND FINANCIAL PROJECTIONS PROPOSED HOME2 SUITES ELWOOD DAVIS ROAD LIVERPOOL, NY 13088 PREPARED FOR: Tony Mangano and Carmen Emmi Homegrown2, LLC 275 Elwood Davis Road Liverpool, NY 13088 PREPARED BY: RACHEL J ROGINSKY PRINCIPAL AND OWNER PINNACLE ADVISORY GROUP 288 GROVE STREET #397 BRAINTREE, MA 02184 RROGINSKY@PINNACLE-ADVISORY.COM 617.722.9916 Page 53 of 107 Pinnacle Advisory Group Boston Providence New York Washington D.C. Tampa Hospitality Consulting Asset Management Rachel J Roginsky, ISHC Valuation Consulting Principal Litigation Support RACHEL J ROGINSKY PRINCIPAL AND OWNER PINNACLE ADVISORY GROUP 288 GROVE STREET #397 BRAINTREE, MA 02184 RROGINSKY@PINNACLE-ADVISORY.COM 617.722.9916 Page 53 of 107 Pinnacle Advisory Group Boston Providence New York Washington D.C. Tampa Hospitality Consulting Asset Management Rachel J Roginsky, ISHC Valuation Consulting Principal Litigation Support September 26, 2023 Tony Mangano and Carmen Emmi Homegrown2, LLC 275 Elwood Davis Road Liverpool, NY 13088 Re: Proposed Home2 Suites — Liverpool, NY Dear Mr. Mangano and Mr. Emmi, In accordance with the terms of our engagement letter with You ("Client"), dated June 22, 2023, Pinnacle Advisory Group ("Pinnacle") has completed our research and analysis regarding the proposed construction of a 110-room Home2 Suites by Hilton ("Proposed Hotel"). As part of your due diligence, you have asked Pinnacle to prepare an independent, comprehensive market demand study evaluating the future operating potential of the Proposed Hotel. Our analysis included extensive market-based research including interviews with local hotel operators, a site and area review, an analysis of the existing competitive lodging facilities, as well as detailed financial projections. Per your direction, we have assumed an opening date of October 1, 2025 for the Proposed Hotel. The opinions contained in this report are based upon our fieldwork completed in August 2023. As in all studies of this type, the estimated annual performance levels for the hotel are based on competent and efficient management and presume no significant changes in the competitive dynamics in the market other than those specifically discussed in the report. Projections contained herein are based upon estimates and assumptions that are subject to uncertainty and variability. While we do not represent the projected results as those which will ultimately be achieved, we have prepared them conscientiously based upon the most reliable forms of information available to us and our extensive experience in the lodging and real estate industries. We have no obligation, unless subsequently so engaged, to update this study because of events occurring subsequent to the completion of this study. Additional assumptions and limiting conditions are presented at the end of this report. If there are any questions after you have had the opportunity to review the attached report, please do not hesitate to call us at your convenience. Thank you once again for the opportunity to be of service to you. Sincerely, September 26, 2023 Tony Mangano and Carmen Emmi Homegrown2, LLC 275 Elwood Davis Road Liverpool, NY 13088 Re: Proposed Home2 Suites — Liverpool, NY Dear Mr. Mangano and Mr. Emmi, In accordance with the terms of our engagement letter with You ("Client"), dated June 22, 2023, Pinnacle Advisory Group ("Pinnacle") has completed our research and analysis regarding the proposed construction of a 110-room Home2 Suites by Hilton ("Proposed Hotel"). As part of your due diligence, you have asked Pinnacle to prepare an independent, comprehensive market demand study evaluating the future operating potential of the Proposed Hotel. Our analysis included extensive market-based research including interviews with local hotel operators, a site and area review, an analysis of the existing competitive lodging facilities, as well as detailed financial projections. Per your direction, we have assumed an opening date of October 1, 2025 for the Proposed Hotel. The opinions contained in this report are based upon our fieldwork completed in August 2023. As in all studies of this type, the estimated annual performance levels for the hotel are based on competent and efficient management and presume no significant changes in the competitive dynamics in the market other than those specifically discussed in the report. Projections contained herein are based upon estimates and assumptions that are subject to uncertainty and variability. While we do not represent the projected results as those which will ultimately be achieved, we have prepared them conscientiously based upon the most reliable forms of information available to us and our extensive experience in the lodging and real estate industries. We have no obligation, unless subsequently so engaged, to update this study because of events occurring subsequent to the completion of this study. Additional assumptions and limiting conditions are presented at the end of this report. If there are any questions after you have had the opportunity to review the attached report, please do not hesitate to call us at your convenience. Thank you once again for the opportunity to be of service to you. Sincerely, ein,;tafA alaiatv,6.29zzi;-- Pinnacle Advisory Group www.pinnacle-advisory.com Page 54 of 107 288 Grove Street #397, Braintree, MA 02184- phone 617-722-9916 Proposed Home2 Suites — Liverpool NY ein,;tafA alaiatv,6.29zzi;-- Pinnacle Advisory Group www.pinnacle-advisory.com Page 54 of 107 288 Grove Street #397, Braintree, MA 02184- phone 617-722-9916 Proposed Home2 Suites — Liverpool NY TABLE OF CONTENTS METHODOLOGY OF ASSESSMENT 2 AREA ANALYSIS 4 SITE ANALYSIS 14 FACILITIES & OPERATING ASSUMPTIONS 16 COMPETITIVE LODGING MARKET 17 PROJECTED PERFORMANCE 28 PROJECTED FINANCIAL PERFORMANCE 31 ASSUMPTIONS & LIMITING CONDITIONS 43 ADDENDA 45 Pinnacle Advisory Group Page 55 of 107 METHODOLOGY OF ASSESSMENT Proposed Home2 Suites — Liverpool, NY TABLE OF CONTENTS METHODOLOGY OF ASSESSMENT 2 AREA ANALYSIS 4 SITE ANALYSIS 14 FACILITIES & OPERATING ASSUMPTIONS 16 COMPETITIVE LODGING MARKET 17 PROJECTED PERFORMANCE 28 PROJECTED FINANCIAL PERFORMANCE 31 ASSUMPTIONS & LIMITING CONDITIONS 43 ADDENDA 45 Pinnacle Advisory Group Page 55 of 107 METHODOLOGY OF ASSESSMENT Proposed Home2 Suites — Liverpool, NY METHODOLOGY OF ASSESSMENT The purpose of this engagement is to present our findings of potential future operating performance for the proposed 110-room Proposed Hotel to be located on Elwood Davis Road in Liverpool, New York. Our analysis includes a projection of occupancy, average rate, and EBITDA less Replace Reserve for five years following the expected opening. In the process of assessing the potential for hotel demand, we conducted extensive market-based research, which served as a foundation for the demand and performance projections made herein. Our findings are based on three areas of research: area and regional economic and demographic review, demand research, and a lodging supply analysis. Our review of the economic and demographic area included an analysis of the economic climate on a local and regional level. We examined the Onondaga County and the overall Syracuse MSA's existing employment distribution, tourism trends, commercial infrastructure, and transportation networks. We also reviewed future development projects and assessed the Proposed Hotel's ability to attract new demand to the area. We examined the competitive hotel supply as well as the overall Syracuse lodging market. In-person interviews and site inspections were conducted at the facilities deemed of most critical importance to this analysis. These interviews were supplemented with the collection of actual performance levels at the identified hotels. Furthermore, we interviewed city planning officials and developers active in the subject market area to ascertain the status of any on-going or proposed hotel developments. From the data that we collected in the market, we were able to analyze historical growth in lodging demand assessment and assessed future trends. The primary scope of work completed during our research and analysis included: 1. Examination of the site and evaluation of the surrounding environs with respect to its suitability for hotel operations; 2. Discussions with Client representatives to garner a clear understanding of the scope and nature of the proposed development; 3. Interviews and site inspections were conducted at the facilities deemed of most critical importance to this analysis. These interviews were supplemented with internet research and collection of operating and financial data for the remaining facilities; 4. Review of broader-based lodging supply and demand dynamics in the overall Syracuse lodging market; 5. Interviews with individuals about the area's lodging market in general as it would relate to the Proposed Hotel, including gathering detailed information regarding other proposed developments. These interviews were supplemented with research regarding the area economy and development patterns as well as via collection of economic and demographic data; 6. Interviews with major hotel company brand representatives; 7. Projections of occupancy and average rate for the Proposed Hotel for five years beginning on October 1, 2025; 8. Estimated revenues and expenses by department through EBITDA less Replacement Reserve for the first five years presented in the Uniform System of Accounts for Hotels; and 9. Preparation of this comprehensive report detailing our findings, conclusions, and assumptions for the 110-room Proposed Hotel. METHODOLOGY OF ASSESSMENT The purpose of this engagement is to present our findings of potential future operating performance for the proposed 110-room Proposed Hotel to be located on Elwood Davis Road in Liverpool, New York. Our analysis includes a projection of occupancy, average rate, and EBITDA less Replace Reserve for five years following the expected opening. In the process of assessing the potential for hotel demand, we conducted extensive market-based research, which served as a foundation for the demand and performance projections made herein. Our findings are based on three areas of research: area and regional economic and demographic review, demand research, and a lodging supply analysis. Our review of the economic and demographic area included an analysis of the economic climate on a local and regional level. We examined the Onondaga County and the overall Syracuse MSA's existing employment distribution, tourism trends, commercial infrastructure, and transportation networks. We also reviewed future development projects and assessed the Proposed Hotel's ability to attract new demand to the area. We examined the competitive hotel supply as well as the overall Syracuse lodging market. In-person interviews and site inspections were conducted at the facilities deemed of most critical importance to this analysis. These interviews were supplemented with the collection of actual performance levels at the identified hotels. Furthermore, we interviewed city planning officials and developers active in the subject market area to ascertain the status of any on-going or proposed hotel developments. From the data that we collected in the market, we were able to analyze historical growth in lodging demand assessment and assessed future trends. The primary scope of work completed during our research and analysis included: 1. Examination of the site and evaluation of the surrounding environs with respect to its suitability for hotel operations; 2. Discussions with Client representatives to garner a clear understanding of the scope and nature of the proposed development; 3. Interviews and site inspections were conducted at the facilities deemed of most critical importance to this analysis. These interviews were supplemented with internet research and collection of operating and financial data for the remaining facilities; 4. Review of broader-based lodging supply and demand dynamics in the overall Syracuse lodging market; 5. Interviews with individuals about the area's lodging market in general as it would relate to the Proposed Hotel, including gathering detailed information regarding other proposed developments. These interviews were supplemented with research regarding the area economy and development patterns as well as via collection of economic and demographic data; 6. Interviews with major hotel company brand representatives; 7. Projections of occupancy and average rate for the Proposed Hotel for five years beginning on October 1, 2025; 8. Estimated revenues and expenses by department through EBITDA less Replacement Reserve for the first five years presented in the Uniform System of Accounts for Hotels; and 9. Preparation of this comprehensive report detailing our findings, conclusions, and assumptions for the 110-room Proposed Hotel. Pinnacle Advisory Group Page 56 of 107 METHODOLOGY OF ASSESSMENT Proposed Home2 Suites — Liverpool, NY Our projections are specifically based on the following assumptions: • The Proposed Hotel will be managed by professional hotel management with experience in operating branded limited service hotels. • The hotel will be developed as a 110-unit Home2 Suites by Hilton hotel with standard brand quality and amenities. If there are any deviations to the aforementioned assumptions, our findings will be subject to change and those changes may be material. Pinnacle Advisory Group Page 57 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY Pinnacle Advisory Group Page 56 of 107 METHODOLOGY OF ASSESSMENT Proposed Home2 Suites — Liverpool, NY Our projections are specifically based on the following assumptions: • The Proposed Hotel will be managed by professional hotel management with experience in operating branded limited service hotels. • The hotel will be developed as a 110-unit Home2 Suites by Hilton hotel with standard brand quality and amenities. If there are any deviations to the aforementioned assumptions, our findings will be subject to change and those changes may be material. Pinnacle Advisory Group Page 57 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY AREA ANALYSIS The purpose of the area analysis is to review all available historical and projected economic and demographic data to determine whether the local market area will experience future economic growth, stability, or decline. In addition to predicting the direction of the economy, the rate of future change must be quantified. These trends are then correlated based on their propensity to reflect variances in lodging demand with the objective of forecasting the amount of growth or decline in transient visitation by individual market segments (e.g., corporate, group, leisure, and extended-stay). The subject site is in the village of Liverpool in Onondaga County, New York, in the western part of the town of Salina, which is northwest of Syracuse. Liverpool is part of the Syracuse MSA, which includes Onondaga, Oswego, and Madison counties. Historically, Syracuse has functioned as a major crossroad, first between the Erie Canal and its branch canals, then the railway network, and today at the intersection of Interstates 81 and 90. Syracuse's strategic central location and well-developed transportation network, including road, water, rail, and air services, make it a distribution hub for the Northeast. More than 50% of U.S. and Canadian manufacturing establishments are located within a 750-mile radius. Area Map Pennetiviiie AREA ANALYSIS The purpose of the area analysis is to review all available historical and projected economic and demographic data to determine whether the local market area will experience future economic growth, stability, or decline. In addition to predicting the direction of the economy, the rate of future change must be quantified. These trends are then correlated based on their propensity to reflect variances in lodging demand with the objective of forecasting the amount of growth or decline in transient visitation by individual market segments (e.g., corporate, group, leisure, and extended-stay). The subject site is in the village of Liverpool in Onondaga County, New York, in the western part of the town of Salina, which is northwest of Syracuse. Liverpool is part of the Syracuse MSA, which includes Onondaga, Oswego, and Madison counties. Historically, Syracuse has functioned as a major crossroad, first between the Erie Canal and its branch canals, then the railway network, and today at the intersection of Interstates 81 and 90. Syracuse's strategic central location and well-developed transportation network, including road, water, rail, and air services, make it a distribution hub for the Northeast. More than 50% of U.S. and Canadian manufacturing establishments are located within a 750-mile radius. Area Map Pennetiviiie Constantia Brewertor Cleveland Went Phoenix (4-) Oneida Lake Sylvan Beac Clay r) r 73) Cicero ( 717-.1 Baldwinsville Bridgeport North Lakeport Constantia Brewertor Cleveland Went Phoenix (4-) Oneida Lake Sylvan Beac Clay r) r 73) Cicero ( 717-.1 Baldwinsville Bridgeport North Lakeport Van Buren 9 Syracuse Salina Warners Canastota Minoa Jordan East Syracuse Lena Camillus Syracuse Chittenango Clockville Ethridge (11 Fayetteville 0'7) (7 , Manlius t14- Marcetlus Nedrow Van Buren 9 Syracuse Salina Warners Canastota Minoa Jordan East Syracuse Lena Camillus Syracuse Chittenango Clockville Ethridge (11 Fayetteville 0'7) (7 , Manlius t14- Marcetlus Nedrow Skaneateles lz) Cazenovia ri:73 Nelson k Marietta Lafayette Pompey Syracuse, the fifth largest city in the state, is the county seat of Onondaga County and it is the geographic center of New York State with a greater metropolitan population of 660,000. Syracuse is known for its rich history, cultural attractions, and outdoor recreation opportunities. During the summer months, tourists benefit from a variety of outdoor activities including golfing at numerous country clubs, hiking, camping, kayaking, fishing, and biking. The Upstate Medical University and Syracuse University provide economic stability to Syracuse as the area's largest employers. Economic and Demographic Analysis Based on the fieldwork conducted in the area and a review of a wide variety of economic and demographic data sources, we have evaluated a host of statistics to determine trends that will and do influence lodging Pinnacle Advisory Group Page 58 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY Skaneateles lz) Cazenovia ri:73 Nelson k Marietta Lafayette Pompey Syracuse, the fifth largest city in the state, is the county seat of Onondaga County and it is the geographic center of New York State with a greater metropolitan population of 660,000. Syracuse is known for its rich history, cultural attractions, and outdoor recreation opportunities. During the summer months, tourists benefit from a variety of outdoor activities including golfing at numerous country clubs, hiking, camping, kayaking, fishing, and biking. The Upstate Medical University and Syracuse University provide economic stability to Syracuse as the area's largest employers. Economic and Demographic Analysis Based on the fieldwork conducted in the area and a review of a wide variety of economic and demographic data sources, we have evaluated a host of statistics to determine trends that will and do influence lodging Pinnacle Advisory Group Page 58 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY demand. A primary source of economic and demographic statistics used in this analysis is Oxford Economics, the Bureau of Labor Statistics (BLS), the Census Bureau, and CoStar. The following paragraphs discuss the information derived from these and other sources, providing an economic frame of reference for the Proposed Hotel. The data is presented in five categories where available: the City of Syracuse, Onondaga County, the Syracuse Metropolitan Statistical Area (Syracuse MSA), the State of New York, and the United States. Diversified Economy: Although fairly muted for decades, the Syracuse Metropolitan area has a diverse economy, with sectors ranging from health care to education, insurance, engineering, advanced manufacturing, financial services, and transportation. While the region has a rich manufacturing legacy, over the past decade it has developed particularly strength and expertise in healthcare and emerging clusters such as bio, bioprocessing and medical devices, as well as electronic and wireless devices such as sensors, radar, and information technologies. In addition, the region is emerging as a national leader in clean tech, particularly related to renewable energy and environmental systems. This is based on its unique regional asset base which includes the New York Center of Excellence in Energy and Environmental Systems in Syracuse (CoE), environmental quality, biofuels and biomass, wind, fuel cells, solar, water quality and water resources, green buildings, and sustainable design. Population The following table outlines historical population trends for the city, county, MSA, state and country. Population Year Syracuse Onondaga County Syracuse MSA New York United States 2000 146,070 458,336 650,154 18,976,457 281,421,906 2010 145,170 467,026 662,577 19,378,102 308,745,538 2020 148,620 476,516 657,615 20,201,249 331,449,281 2022 144,451 468,249 653,633 19,677,151 333,287,557 Compound Annual Growth Rate (CAGR) CAGR 2000-2010 -0.06% 0.19% 0.19% 0.21% 0.93% CAGR 2010-2020 0.24% 0.20% -0.08% 0.42% 0.71% CAGR 2010-2022 -0.04% 0.02% -0.11% 0.13% 0.64% Source: Census.gov demand. A primary source of economic and demographic statistics used in this analysis is Oxford Economics, the Bureau of Labor Statistics (BLS), the Census Bureau, and CoStar. The following paragraphs discuss the information derived from these and other sources, providing an economic frame of reference for the Proposed Hotel. The data is presented in five categories where available: the City of Syracuse, Onondaga County, the Syracuse Metropolitan Statistical Area (Syracuse MSA), the State of New York, and the United States. Diversified Economy: Although fairly muted for decades, the Syracuse Metropolitan area has a diverse economy, with sectors ranging from health care to education, insurance, engineering, advanced manufacturing, financial services, and transportation. While the region has a rich manufacturing legacy, over the past decade it has developed particularly strength and expertise in healthcare and emerging clusters such as bio, bioprocessing and medical devices, as well as electronic and wireless devices such as sensors, radar, and information technologies. In addition, the region is emerging as a national leader in clean tech, particularly related to renewable energy and environmental systems. This is based on its unique regional asset base which includes the New York Center of Excellence in Energy and Environmental Systems in Syracuse (CoE), environmental quality, biofuels and biomass, wind, fuel cells, solar, water quality and water resources, green buildings, and sustainable design. Population The following table outlines historical population trends for the city, county, MSA, state and country. Population Year Syracuse Onondaga County Syracuse MSA New York United States 2000 146,070 458,336 650,154 18,976,457 281,421,906 2010 145,170 467,026 662,577 19,378,102 308,745,538 2020 148,620 476,516 657,615 20,201,249 331,449,281 2022 144,451 468,249 653,633 19,677,151 333,287,557 Compound Annual Growth Rate (CAGR) CAGR 2000-2010 -0.06% 0.19% 0.19% 0.21% 0.93% CAGR 2010-2020 0.24% 0.20% -0.08% 0.42% 0.71% CAGR 2010-2022 -0.04% 0.02% -0.11% 0.13% 0.64% Source: Census.gov Growth in the Syracuse MSA has been sluggish for a number of decades, with little increase in population or employment, like many other parts of upstate New York. According to census data, much of Upstate New York's population loss is due to internal migration, where people move to other locations in the United States. Between 2010 and 2020, the population of New York State grew by 0.42% on a compound annual basis, however most of New York's population growth was fueled by New York City and its suburbs, while rural counties in Upstate New York experienced losses. on Additionally, U.S. Census officials said data showed a similar trend nationwide: rural areas tended to lose population while cities and other urban centers gained population. New York's overall population growth lagged growing states in the South and the West. Local government leaders are focusing on the development of a robust nanotechnology sector, to boost the region's population through providing well-paying jobs to keep young people at home as they complete their education and to attract additional working-age people. Employment Employment is a key economic indicator on the regional level. The characteristics of an area's work force provide an indication of the type and amount of visitation that is likely to be generated by local businesses. Pinnacle Advisory Group Page 59 of 107 Growth in the Syracuse MSA has been sluggish for a number of decades, with little increase in population or employment, like many other parts of upstate New York. According to census data, much of Upstate New York's population loss is due to internal migration, where people move to other locations in the United States. Between 2010 and 2020, the population of New York State grew by 0.42% on a compound annual basis, however most of New York's population growth was fueled by New York City and its suburbs, while rural counties in Upstate New York experienced losses. on Additionally, U.S. Census officials said data showed a similar trend nationwide: rural areas tended to lose population while cities and other urban centers gained population. New York's overall population growth lagged growing states in the South and the West. Local government leaders are focusing on the development of a robust nanotechnology sector, to boost the region's population through providing well-paying jobs to keep young people at home as they complete their education and to attract additional working-age people. Employment Employment is a key economic indicator on the regional level. The characteristics of an area's work force provide an indication of the type and amount of visitation that is likely to be generated by local businesses. Pinnacle Advisory Group Page 59 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY The following chart provides a comparison of total employment trends in the MSA, state and nation. Total Employment Syracuse State of United Year MSA % Growth New York % Growth States % Growth 2013 298,298 8,883,124 143,940,000 2014 293,522 -1.6% 8,926,217 0.5% 146,318,000 1.7% 2015 292,068 -0.5% 9,037,180 1.2% 148,844,000 1.7% 2016 291,894 -0.1% 9,063,225 0.3% 151,436,000 1.7% 2017 294,804 1.0% 9,381,964 3.5% 153,334,000 1.3% 2018 298,514 1.3% 9,421,980 0.4% 155,763,000 1.6% 2019 300,472 0.7% 9,477,584 0.6% 157,534,000 1.1% 2020 286,785 -4.6% 8,638,876 -8.8% 147,812,000 -6.2% 2021 291,974 1.8% 8,889,563 2.9% 152,586,000 3.2% 2022 299,475 2.6% 9,207,903 3.6% 158,296,000 3.7% CAGR 2013 - 2022 0.0% 0.4% 1.1% YTD July 2022 301,726 9,240,249 158,272,000 YTD July 2023 300,104 -0.5% 9,268,326 0.3% 161,262,000 1.9% Source: Bureau Labor Statistics AREA ANALYSIS Proposed Home2 Suites — Liverpool NY The following chart provides a comparison of total employment trends in the MSA, state and nation. Total Employment Syracuse State of United Year MSA % Growth New York % Growth States % Growth 2013 298,298 8,883,124 143,940,000 2014 293,522 -1.6% 8,926,217 0.5% 146,318,000 1.7% 2015 292,068 -0.5% 9,037,180 1.2% 148,844,000 1.7% 2016 291,894 -0.1% 9,063,225 0.3% 151,436,000 1.7% 2017 294,804 1.0% 9,381,964 3.5% 153,334,000 1.3% 2018 298,514 1.3% 9,421,980 0.4% 155,763,000 1.6% 2019 300,472 0.7% 9,477,584 0.6% 157,534,000 1.1% 2020 286,785 -4.6% 8,638,876 -8.8% 147,812,000 -6.2% 2021 291,974 1.8% 8,889,563 2.9% 152,586,000 3.2% 2022 299,475 2.6% 9,207,903 3.6% 158,296,000 3.7% CAGR 2013 - 2022 0.0% 0.4% 1.1% YTD July 2022 301,726 9,240,249 158,272,000 YTD July 2023 300,104 -0.5% 9,268,326 0.3% 161,262,000 1.9% Source: Bureau Labor Statistics In 2019, the Syracuse MSA's employment was approximately 300 thousand. Similar to the country, which saw a decline of 6.2% in employment, the Syracuse MSA was impacted by the pandemic in 2020. The Syracuse MSA with 4.6% loss in employment did fare better than the State of NY with 8.8% employment decline. Since the low point in 2020, the Syracuse MSA's growth rate has lagged that of New York and the United States. Over the period of 2013 through 2022, the employment in Syracuse MSA is virtually unchanged, while New York state has shown 0.4% compound annual growth and the US has grown 1.9% on an annual compound basis. The following table outlines the current makeup of Greater Syracuse's employment by sector and its historic and five year forecasted growth compared to the United States. In 2019, the Syracuse MSA's employment was approximately 300 thousand. Similar to the country, which saw a decline of 6.2% in employment, the Syracuse MSA was impacted by the pandemic in 2020. The Syracuse MSA with 4.6% loss in employment did fare better than the State of NY with 8.8% employment decline. Since the low point in 2020, the Syracuse MSA's growth rate has lagged that of New York and the United States. Over the period of 2013 through 2022, the employment in Syracuse MSA is virtually unchanged, while New York state has shown 0.4% compound annual growth and the US has grown 1.9% on an annual compound basis. The following table outlines the current makeup of Greater Syracuse's employment by sector and its historic and five year forecasted growth compared to the United States. SYRACUSE - NY EMPLOYMENT BY INDUSTRY IN THOUSANDS CURRENT JOBS CURRENT GROWTH 10 YR HISTORICAL 6 YR FORECAST Industry Jobs LO Market US Market US PAwkot US Manufacturing 28 1.0 -2.66 0.50% 0.22% 0.75% -0.43% 0.05% Trade, Transportation and Utilities 66 1.0 0.34% 0.40% -0.34% 1.14% -0.60% 0.10% Retail Trade 36 1.1 1.34% 0.24% -0.85% 0.30% -0.71% 0.09% Financial Activities 15 0.8 0.50% 0.56% -1.10% 144% -0.65% 0.12% Government 64 1.3 -0.50% 1.49% 0.24% 0.32% 0.31% 0.41% Natural Resources, Mining and Construction 16 0.9 10.33% 1.89% 1.64% 2.40% -0.08% 0.22% Education and Health Services 65 1.2 -1.60% 2.98% 0.13% 1.78% 0.00% 0.68% Professional and Business Services 39 0.8 2.28% 1.37% 0.99% 2.09% -0.43% 0.36% Information 4 0.6 -244% -1.24% -1.79% 1.25% 0.08% 0.27% Leisure and Hospitality 31 0.9 4.24% 4.44% 0.01% 1.53% 0.19% 0.89% Other Services 13 1.0 3.19% 2.02% -0 73% 0.62% 0.19% 0.28% Total Employment 342 1.0 0.61% 1.66% 0.10% 1.32% -0.15% 0.38% Source: Oxford Economics La = Location Quotient SYRACUSE - NY EMPLOYMENT BY INDUSTRY IN THOUSANDS CURRENT JOBS CURRENT GROWTH 10 YR HISTORICAL 6 YR FORECAST Industry Jobs LO Market US Market US PAwkot US Manufacturing 28 1.0 -2.66 0.50% 0.22% 0.75% -0.43% 0.05% Trade, Transportation and Utilities 66 1.0 0.34% 0.40% -0.34% 1.14% -0.60% 0.10% Retail Trade 36 1.1 1.34% 0.24% -0.85% 0.30% -0.71% 0.09% Financial Activities 15 0.8 0.50% 0.56% -1.10% 144% -0.65% 0.12% Government 64 1.3 -0.50% 1.49% 0.24% 0.32% 0.31% 0.41% Natural Resources, Mining and Construction 16 0.9 10.33% 1.89% 1.64% 2.40% -0.08% 0.22% Education and Health Services 65 1.2 -1.60% 2.98% 0.13% 1.78% 0.00% 0.68% Professional and Business Services 39 0.8 2.28% 1.37% 0.99% 2.09% -0.43% 0.36% Information 4 0.6 -244% -1.24% -1.79% 1.25% 0.08% 0.27% Leisure and Hospitality 31 0.9 4.24% 4.44% 0.01% 1.53% 0.19% 0.89% Other Services 13 1.0 3.19% 2.02% -0 73% 0.62% 0.19% 0.28% Total Employment 342 1.0 0.61% 1.66% 0.10% 1.32% -0.15% 0.38% Source: Oxford Economics La = Location Quotient Like other parts of upstate New York, the Syracuse economy was historically centered on manufacturing, with companies such as Carrier, General Electric, and Lockheed Martin serving as major employers. Pinnacle Advisory Group Page 60 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY Like other parts of upstate New York, the Syracuse economy was historically centered on manufacturing, with companies such as Carrier, General Electric, and Lockheed Martin serving as major employers. Pinnacle Advisory Group Page 60 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY Syracuse's economy has faced challenges over the past decades as industrial jobs have left the area. Though manufacturing remains important to the area, the service sector has emerged as the region's main source of job creation. In particular, growth in the education and health sector has been a stabilizing force, with the Upstate Medical University and Syracuse University now the area's largest employers. At Mid-year 2023, the industries with the largest number of employees in the greater Syracuse area were Trade, Transportation and Utilities, Education and Health Services, and Government, each with approximately 65,000 employees. The Trade, Transportation and Utilities super sector consists of wholesale trade, retail trade, transportation and warehousing, and utilities. Syracuse is a major distribution center for the northeast. Many industries in the Syracuse Metro area are experiencing growth as a result of the recovery from the pandemic. Over the last ten years, construction and professional services have experienced the highest rates of growth. The Professional and Business Services sector includes legal services, accounting and tax preparation, architectural and engineering services, computer systems design, and management and technical consulting services. According to CoStar, Syracuse's employment is expected to experience employment decline of approximately .15% over the next five years, underperforming the growth rate forecasted for the country which is projected to grow at 0.38%. Note that location quotients are a way of quantifying how concentrated a particular industry sector is in the region as compared to the nation. Government and Education / Health Services are the sectors that show the strongest location quotient, followed by Manufacturing, Trade, and Other Services. Syracuse's economy has faced challenges over the past decades as industrial jobs have left the area. Though manufacturing remains important to the area, the service sector has emerged as the region's main source of job creation. In particular, growth in the education and health sector has been a stabilizing force, with the Upstate Medical University and Syracuse University now the area's largest employers. At Mid-year 2023, the industries with the largest number of employees in the greater Syracuse area were Trade, Transportation and Utilities, Education and Health Services, and Government, each with approximately 65,000 employees. The Trade, Transportation and Utilities super sector consists of wholesale trade, retail trade, transportation and warehousing, and utilities. Syracuse is a major distribution center for the northeast. Many industries in the Syracuse Metro area are experiencing growth as a result of the recovery from the pandemic. Over the last ten years, construction and professional services have experienced the highest rates of growth. The Professional and Business Services sector includes legal services, accounting and tax preparation, architectural and engineering services, computer systems design, and management and technical consulting services. According to CoStar, Syracuse's employment is expected to experience employment decline of approximately .15% over the next five years, underperforming the growth rate forecasted for the country which is projected to grow at 0.38%. Note that location quotients are a way of quantifying how concentrated a particular industry sector is in the region as compared to the nation. Government and Education / Health Services are the sectors that show the strongest location quotient, followed by Manufacturing, Trade, and Other Services. JOB GROWTH (YOY) 10% Forecast 5% 0% -- -5% -10% -15% _20% I l 1 I I I t i l l I I I I I t i l l 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 AR Syracuse - NY • United States Source: Oxford Economics Unemployment The following table details unemployment rates for the Onondaga County, the Syracuse MSA, State of New York, and the United States as a whole. Pinnacle Advisory Group Page 61 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY JOB GROWTH (YOY) 10% Forecast 5% 0% -- -5% -10% -15% _20% I l 1 I I I t i l l I I I I I t i l l 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 AR Syracuse - NY • United States Source: Oxford Economics Unemployment The following table details unemployment rates for the Onondaga County, the Syracuse MSA, State of New York, and the United States as a whole. Pinnacle Advisory Group Page 61 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY Unemployment Rate Onondaga Syracuse State of United Year County MSA New York States 2013 7.0% 7.7% 7.8% 7.4% 2014 5.6% 6.1% 6.3% 6.2% 2015 5.0% 5.5% 5.2% 5.3% 2016 4.6% 5.0% 4.9% 4.9% 2017 4.7% 5.0% 4.6% 4.4% 2018 4.0% 4.3% 4.1% 3.9% 2019 3.8% 4.1% 3.9% 3.7% 2020 8.0% 8.1% 9.9% 8.1% 2021 4.9% 5.0% 7.0% 5.4% 2022 3.3% 3.4% 4.3% 3.6% YTD July 2022 3.5% 3.6% 4.0% 3.5% YTD July 2023 3.0% 3.1% 3.9% 3.5% Source: Bureau Labor Statistics Unemployment Rate Onondaga Syracuse State of United Year County MSA New York States 2013 7.0% 7.7% 7.8% 7.4% 2014 5.6% 6.1% 6.3% 6.2% 2015 5.0% 5.5% 5.2% 5.3% 2016 4.6% 5.0% 4.9% 4.9% 2017 4.7% 5.0% 4.6% 4.4% 2018 4.0% 4.3% 4.1% 3.9% 2019 3.8% 4.1% 3.9% 3.7% 2020 8.0% 8.1% 9.9% 8.1% 2021 4.9% 5.0% 7.0% 5.4% 2022 3.3% 3.4% 4.3% 3.6% YTD July 2022 3.5% 3.6% 4.0% 3.5% YTD July 2023 3.0% 3.1% 3.9% 3.5% Source: Bureau Labor Statistics From 2013 to 2019, the unemployment rate in the Syracuse MSA improved year-after-year however it lagged behind the United States with the exception of 2014. The pandemic impacted all markets and in 2020, the unemployment rate in the MSA increased to just over 8%. By comparison, the State's reached 9.9% while the United States as a whole was 8.1%. Since this time, employment figures have greatly improved, with 2022's unemployment rate of 3.4% the lowest since 2013. Unemployment through July 2023 continued to show improvement over the prior year to date, with 0.5% point reduction to 3.1% Overall Area Growth The area's economy has been sluggish for several decades, with little growth in population or employment. Historically, the region's economy was centered around manufacturing, with major employers such as Carrier, General Electric, and Lockheed Martin. However, the service industry has emerged as the main source of job creation in recent years, with education and health services, call centers, and retail trade leading the trend. Regional economic factors Some developments and events of significance to the regional and local economy are highlighted in the following paragraphs: • In October 2022, Micron Technology announced plans to spend up to $100 billion over the next 20 years building a mega-complex of computer chip plants in Clay, NY, approximately a 15 minute drive from downtown Syracuse, in what would be the largest single private investment in New York history. This project was influenced by the passage of the CHIPS and Science ACT, which aimed to secure supply chains, boost R&D spending, and revitalize regions like upstate New York. If fully built, the project could employ up to 9,000 people, and create 40,000 other jobs among suppliers, construction firms, and other businesses. Micron Technology accounted it would begin construction in 2024. In Phase 1, the company will spend $20 billion to build its first plant, which it estimates will require about 5,000 workers for construction and initially employ 3,000 manufacturing workers. Should this project move forward, there will be increased demand for hotel accommodation, which will spur additional hotel construction / supply. There will also be Micron-driven increases in housing, schools, and all related support needs. From 2013 to 2019, the unemployment rate in the Syracuse MSA improved year-after-year however it lagged behind the United States with the exception of 2014. The pandemic impacted all markets and in 2020, the unemployment rate in the MSA increased to just over 8%. By comparison, the State's reached 9.9% while the United States as a whole was 8.1%. Since this time, employment figures have greatly improved, with 2022's unemployment rate of 3.4% the lowest since 2013. Unemployment through July 2023 continued to show improvement over the prior year to date, with 0.5% point reduction to 3.1% Overall Area Growth The area's economy has been sluggish for several decades, with little growth in population or employment. Historically, the region's economy was centered around manufacturing, with major employers such as Carrier, General Electric, and Lockheed Martin. However, the service industry has emerged as the main source of job creation in recent years, with education and health services, call centers, and retail trade leading the trend. Regional economic factors Some developments and events of significance to the regional and local economy are highlighted in the following paragraphs: • In October 2022, Micron Technology announced plans to spend up to $100 billion over the next 20 years building a mega-complex of computer chip plants in Clay, NY, approximately a 15 minute drive from downtown Syracuse, in what would be the largest single private investment in New York history. This project was influenced by the passage of the CHIPS and Science ACT, which aimed to secure supply chains, boost R&D spending, and revitalize regions like upstate New York. If fully built, the project could employ up to 9,000 people, and create 40,000 other jobs among suppliers, construction firms, and other businesses. Micron Technology accounted it would begin construction in 2024. In Phase 1, the company will spend $20 billion to build its first plant, which it estimates will require about 5,000 workers for construction and initially employ 3,000 manufacturing workers. Should this project move forward, there will be increased demand for hotel accommodation, which will spur additional hotel construction / supply. There will also be Micron-driven increases in housing, schools, and all related support needs. Pinnacle Advisory Group Page 62 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY • As home to myriad colleges and universities, including Syracuse University, SUNY Upstate Medical University, SUNY Environmental Science and Forestry, Le Moyne College, Onondaga Community College, Empire State College, Bryant & Stratton College, Pomeroy College of Nursing and St Josephy College of Nursing, the area has seen solid job growth in education services over this past cycle. One initiative is the recently launched Northeast University Semiconductor Network, which includes Clarkson, Columbia, Cornell, CUNY, RIT, RPI, SUNY Syracuse University and other regional universities outside of New York, to support diverse student programming and experiential learning opportunities in STEM fields. • In August 2022, Onondaga County legislators approved funding of $85 million to build a 600,000 gallon aquarium at the Syracuse Inner Harbor. A feasibility study estimated the aquarium will draw close to 500,000 visitors a year and generate $50 million in economic activity annually. Tourism Situated in the heart of New York State, located within 300 miles of the largest cities in the Northeast, the Greater Syracuse region offers a mix of urban and rural experiences for getaways. The Greater Syracuse area has over 170 parks, fields, and recreational areas, including Rosamond Gifford Zoo and Onondaga Lake Park, an 8+ mile linear greenway with trails, playgrounds, skate parks and dog parks. Annual attendance at the County's parks is approximately 3 million. The area is also noted for spectacular fall foliage which brings thousands of seasonal tourists (affectionately known as leaf peepers) to the area every autumn. To the west is the Finger Lakes Region, visited by nearly 6 million tourists annually. A true sports town, Syracuse has everything from Syracuse University Athletics to minor league baseball with the Syracuse Mets, the AHL Syracuse Crunch (affiliate of Tampa Bay Lightning). The JMA Wireless Dome is the home of Orange football, basketball, and lacrosse games, and features events such as spring commencement, concerts, and ice shows. Syracuse is home to the Great New York State Fair, held annually in late August, which attracted 1.3 million visitors in 2019. Destiny USA, the seventh largest shopping center in America, has over 250 places to shop, dine and play. The shopping center is visited by 26 million people annually. The Oneida Nation operates a large casino and resort in nearby Verona, NY which occasionally hosts events and concerts that overflow into nearby communities. Visitors of all ages can tour museums, enjoy music events and performances, and attend festivals, such as Syracuse Jazzfest, which has attracted 90,000 music fans during its seven day run. Office Market The Syracuse office market is spread over a large geographic area encompassing Onondaga, Madison, and Oswego Counties. The region encompasses some 30.4 million square feet of office inventory, only 17% of which is considered four- to five-star, 37% is three-star, with the majority of regional office space being in older, smaller, one- to two-star buildings. The current office vacancy rate of 5.7% is lower than its trailing three year average of 6.2%, which is also lower than the national trailing three year average of 12.0%. The market is 190,000 SF smaller than it was three years ago, as a result of 16,000 SF of construction outweighed by 210,000 SF of demolition. The largest concentration of office space is in Syracuse CBD, with 27% of the inventory, having a 5.5% vacancy rate. Greater Syracuse, which includes Syracuse University, contains 24% of the areawide office Pinnacle Advisory Group Page 62 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY • As home to myriad colleges and universities, including Syracuse University, SUNY Upstate Medical University, SUNY Environmental Science and Forestry, Le Moyne College, Onondaga Community College, Empire State College, Bryant & Stratton College, Pomeroy College of Nursing and St Josephy College of Nursing, the area has seen solid job growth in education services over this past cycle. One initiative is the recently launched Northeast University Semiconductor Network, which includes Clarkson, Columbia, Cornell, CUNY, RIT, RPI, SUNY Syracuse University and other regional universities outside of New York, to support diverse student programming and experiential learning opportunities in STEM fields. • In August 2022, Onondaga County legislators approved funding of $85 million to build a 600,000 gallon aquarium at the Syracuse Inner Harbor. A feasibility study estimated the aquarium will draw close to 500,000 visitors a year and generate $50 million in economic activity annually. Tourism Situated in the heart of New York State, located within 300 miles of the largest cities in the Northeast, the Greater Syracuse region offers a mix of urban and rural experiences for getaways. The Greater Syracuse area has over 170 parks, fields, and recreational areas, including Rosamond Gifford Zoo and Onondaga Lake Park, an 8+ mile linear greenway with trails, playgrounds, skate parks and dog parks. Annual attendance at the County's parks is approximately 3 million. The area is also noted for spectacular fall foliage which brings thousands of seasonal tourists (affectionately known as leaf peepers) to the area every autumn. To the west is the Finger Lakes Region, visited by nearly 6 million tourists annually. A true sports town, Syracuse has everything from Syracuse University Athletics to minor league baseball with the Syracuse Mets, the AHL Syracuse Crunch (affiliate of Tampa Bay Lightning). The JMA Wireless Dome is the home of Orange football, basketball, and lacrosse games, and features events such as spring commencement, concerts, and ice shows. Syracuse is home to the Great New York State Fair, held annually in late August, which attracted 1.3 million visitors in 2019. Destiny USA, the seventh largest shopping center in America, has over 250 places to shop, dine and play. The shopping center is visited by 26 million people annually. The Oneida Nation operates a large casino and resort in nearby Verona, NY which occasionally hosts events and concerts that overflow into nearby communities. Visitors of all ages can tour museums, enjoy music events and performances, and attend festivals, such as Syracuse Jazzfest, which has attracted 90,000 music fans during its seven day run. Office Market The Syracuse office market is spread over a large geographic area encompassing Onondaga, Madison, and Oswego Counties. The region encompasses some 30.4 million square feet of office inventory, only 17% of which is considered four- to five-star, 37% is three-star, with the majority of regional office space being in older, smaller, one- to two-star buildings. The current office vacancy rate of 5.7% is lower than its trailing three year average of 6.2%, which is also lower than the national trailing three year average of 12.0%. The market is 190,000 SF smaller than it was three years ago, as a result of 16,000 SF of construction outweighed by 210,000 SF of demolition. The largest concentration of office space is in Syracuse CBD, with 27% of the inventory, having a 5.5% vacancy rate. Greater Syracuse, which includes Syracuse University, contains 24% of the areawide office Pinnacle Advisory Group Page 63 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY inventory with a vacancy rate of 5.0%. NE Outer Onondaga County, which includes the Proposed Hotel site, contains approximately 4 million SF or 13% of the areawide office space, with a vacancy rate of 12.1%. The NE Outer Onondaga office submarket achieves a slightly higher market rent than Greater Syracuse and while slightly lower than Syracuse CBD. Industrial Market Pinnacle Advisory Group Page 63 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY inventory with a vacancy rate of 5.0%. NE Outer Onondaga County, which includes the Proposed Hotel site, contains approximately 4 million SF or 13% of the areawide office space, with a vacancy rate of 12.1%. The NE Outer Onondaga office submarket achieves a slightly higher market rent than Greater Syracuse and while slightly lower than Syracuse CBD. Industrial Market The Syracuse industrial market is spread over Onondaga, Madison, and Oswego counties, and contains 73.6 million SF of space, with a vacancy rate of 3.8%. Logistics space is the largest subtype with 35.6 million SF. Syracuse is located at the midpoint between Toronto and NYS (or Boston — check) and is a major distribution center for the Northeast. Amazon opened a newly constructed 3.8 million SF fulfillment center in Clay in May 2022 which employes nearly 1,000. Convention Center & Convention Demand Conventions, conferences, and meetings are engines for lodging demand in Syracuse. Oncenter is a three- building convention and entertainment complex in downtown Syracuse which includes the Nicholas J. Pirro Convention Center, with 99,000 square feet of meeting space and an attached 1,000 car garage, the Upstate Medical University Areana at Onondaga County War Memorial, a 6,230 seat multipurpose arena, and the John H. Mulroy Civic Center Theaters, with three theaters seating 2,742 in total. The following table outlines the number of room nights directly tied to convention activity from 2013 through 2023. The Syracuse industrial market is spread over Onondaga, Madison, and Oswego counties, and contains 73.6 million SF of space, with a vacancy rate of 3.8%. Logistics space is the largest subtype with 35.6 million SF. Syracuse is located at the midpoint between Toronto and NYS (or Boston — check) and is a major distribution center for the Northeast. Amazon opened a newly constructed 3.8 million SF fulfillment center in Clay in May 2022 which employes nearly 1,000. Convention Center & Convention Demand Conventions, conferences, and meetings are engines for lodging demand in Syracuse. Oncenter is a three- building convention and entertainment complex in downtown Syracuse which includes the Nicholas J. Pirro Convention Center, with 99,000 square feet of meeting space and an attached 1,000 car garage, the Upstate Medical University Areana at Onondaga County War Memorial, a 6,230 seat multipurpose arena, and the John H. Mulroy Civic Center Theaters, with three theaters seating 2,742 in total. The following table outlines the number of room nights directly tied to convention activity from 2013 through 2023. Convention Center Year Roomnights % Change 2013 30,000 2014 33,000 10.0% 2015 39,000 18.2% 2016 42,000 7.7% 2017 36,000 -14.3% 2018 113,000 * 213.9% 2019 54,000 -52.2% 2020 16,000 -70.4% 2021 30,000 87.5% 2022 51,000 70.0% 2023 53,000 3.9% CAGR 2013-2019 10.3% CAGR 2013-2023 5.9% * US Bowling Congress -10 month Build up Source: Visit Syracuse In 2017, the City of Syracuse renovated and reopened a new convention center hotel, which benefited convention activity from 2019 through today, outside of the pandemic years. Convention Center Year Roomnights % Change 2013 30,000 2014 33,000 10.0% 2015 39,000 18.2% 2016 42,000 7.7% 2017 36,000 -14.3% 2018 113,000 * 213.9% 2019 54,000 -52.2% 2020 16,000 -70.4% 2021 30,000 87.5% 2022 51,000 70.0% 2023 53,000 3.9% CAGR 2013-2019 10.3% CAGR 2013-2023 5.9% * US Bowling Congress -10 month Build up Source: Visit Syracuse In 2017, the City of Syracuse renovated and reopened a new convention center hotel, which benefited convention activity from 2019 through today, outside of the pandemic years. In 2018 Syracuse hosted the US Bowling Congress which was a 10 month build out to a championship event. When running, this event brought 400-600 participants every few days to the Syracuse area. Syracuse is not scheduled to host that again at this time. Convention pace for 2024 is slightly behind 2023's strong year, some of which was due to State Association rotation patterns and groups that were scheduled to meet in Syracuse in 2020 and 2021 that were pushed Pinnacle Advisory Group Page 64 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY In 2018 Syracuse hosted the US Bowling Congress which was a 10 month build out to a championship event. When running, this event brought 400-600 participants every few days to the Syracuse area. Syracuse is not scheduled to host that again at this time. Convention pace for 2024 is slightly behind 2023's strong year, some of which was due to State Association rotation patterns and groups that were scheduled to meet in Syracuse in 2020 and 2021 that were pushed Pinnacle Advisory Group Page 64 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY to 2023 due to the pandemic. Tentative booking numbers are strong. While Convention Center demand does not directly impact the Liverpool hotel market, there are events which can cause compression Education There are a number of colleges and universities located in the Syracuse MSA including Syracuse University, SUNY Upstate Medical University, SUNY College of Environmental Science and Forestry, Le Moyne College, and Onondaga Community College. Colleges and Universities are often generators of hotel demand from visiting professors and speakers, interviews, trustees, visiting sports teams, visiting parents, prospective students, and visiting for special events (i.e., graduation, reunion, homecoming, etc.). The extent of hotel demand, however, depends on a variety of factors including total enrollment, commuter school vs. non commuter school, academic reputation, strength, and size of athletic program, etc. Medical Centers Onondaga County's health care system includes five hospitals, two mental health centers, and a full range of long-term care facilities. The area's largest employer, the Upstate Medical University, is a medical school that includes University Hospital, the region's trauma center and pediatric emergency center. Crouse Hospital, St Joseph's Hospital Health Cener and Community General hospital include the regional neonatal center, high-risk obstetrics center, and cardiac surgery / cardiology programs. These hospitals drive lodging demand from families of patients, visiting physicians, pharmaceutical representatives, and personnel interviews throughout the year. Transportation The transportation infrastructure is an integral component to the success of any real estate development. The purpose of a well-organized transportation network is to provide businesses and customers with good locations, easy access, and functionalism. Syracuse is a major transportation hub within central New York State. Highway Transportation Syracuse is served by 1-90, the NYS Thruway, the major east - west highway across upstate New York, which intersects with Interstate 81, a major north-south highway from the Canadian border to Tennessee, serving New York cities of Binghamton, Syracuse, and Watertown. This easy access will allow the property to draw demand from commercial and tourism demand generators throughout the region. to 2023 due to the pandemic. Tentative booking numbers are strong. While Convention Center demand does not directly impact the Liverpool hotel market, there are events which can cause compression Education There are a number of colleges and universities located in the Syracuse MSA including Syracuse University, SUNY Upstate Medical University, SUNY College of Environmental Science and Forestry, Le Moyne College, and Onondaga Community College. Colleges and Universities are often generators of hotel demand from visiting professors and speakers, interviews, trustees, visiting sports teams, visiting parents, prospective students, and visiting for special events (i.e., graduation, reunion, homecoming, etc.). The extent of hotel demand, however, depends on a variety of factors including total enrollment, commuter school vs. non commuter school, academic reputation, strength, and size of athletic program, etc. Medical Centers Onondaga County's health care system includes five hospitals, two mental health centers, and a full range of long-term care facilities. The area's largest employer, the Upstate Medical University, is a medical school that includes University Hospital, the region's trauma center and pediatric emergency center. Crouse Hospital, St Joseph's Hospital Health Cener and Community General hospital include the regional neonatal center, high-risk obstetrics center, and cardiac surgery / cardiology programs. These hospitals drive lodging demand from families of patients, visiting physicians, pharmaceutical representatives, and personnel interviews throughout the year. Transportation The transportation infrastructure is an integral component to the success of any real estate development. The purpose of a well-organized transportation network is to provide businesses and customers with good locations, easy access, and functionalism. Syracuse is a major transportation hub within central New York State. Highway Transportation Syracuse is served by 1-90, the NYS Thruway, the major east - west highway across upstate New York, which intersects with Interstate 81, a major north-south highway from the Canadian border to Tennessee, serving New York cities of Binghamton, Syracuse, and Watertown. This easy access will allow the property to draw demand from commercial and tourism demand generators throughout the region. Interstate 690 runs east-west through the city, providing access to Interstate 90 as well as to Syracuse's northwestern and eastern suburbs. Interstate 481 forms an eastern loop around the city and continues to Fulton and Oswego, on the shore of Lake Ontario. The 1-81 Viaduct project announced by the New York State Department and Transportation and US Federal Highway Administration would redirect 1-81 traffic to the new 1-81 (existing 1-481) 4.5 miles north of the site. The existing 1-81 would be renamed BL-81. The construction could disrupt traffic for five years or more. Air Transportation Air transportation to the Syracuse area is provided at Syracuse Hancock International Airport (SYR). SYR is a joint civil-military airport approximately 5 miles northeast of downtown Syracuse and is a 4.6 miles drive from the proposed hotel. Pinnacle Advisory Group Page 65 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY Interstate 690 runs east-west through the city, providing access to Interstate 90 as well as to Syracuse's northwestern and eastern suburbs. Interstate 481 forms an eastern loop around the city and continues to Fulton and Oswego, on the shore of Lake Ontario. The 1-81 Viaduct project announced by the New York State Department and Transportation and US Federal Highway Administration would redirect 1-81 traffic to the new 1-81 (existing 1-481) 4.5 miles north of the site. The existing 1-81 would be renamed BL-81. The construction could disrupt traffic for five years or more. Air Transportation Air transportation to the Syracuse area is provided at Syracuse Hancock International Airport (SYR). SYR is a joint civil-military airport approximately 5 miles northeast of downtown Syracuse and is a 4.6 miles drive from the proposed hotel. Pinnacle Advisory Group Page 65 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY The airport completed a $62M renovation in 2018 which included larger windows and higher ceilings allowing more natural light, more modern check-in areas, a new flight museum highlighting the history of aviation locally and globally, and renovated passenger bridges connecting the terminal to the parking garage. The airport has $20M of projects in the planning or construction stages. Parking, which has reached capacity in recent peak travel times, is being expanded with new lots and the rebuilding of the parking garage. Car rental facilities will be moved from the terminal and parking garage to a new consolidated rental car facility and ground transportation center. The terminal and its two concourses will see additional boarding bridges and gate waiting area expansions. A new U.S. Customs and Border protection facility will be built to replace a smaller, outdated one. Delta and American are the primary passenger airlines at Syracuse with each carrying approximately 26% of the passengers for the fiscal year ending June 2023. Other airlines servicing SYR include Allegiant, Breeze, Frontier, JetBlue, Southwest, and United. Southwest entered the Syracuse market for the first time in 2021 and in March 2022 Breeze Airways began serving the airport. The following table presents passenger volume for SYR since 2013. The airport completed a $62M renovation in 2018 which included larger windows and higher ceilings allowing more natural light, more modern check-in areas, a new flight museum highlighting the history of aviation locally and globally, and renovated passenger bridges connecting the terminal to the parking garage. The airport has $20M of projects in the planning or construction stages. Parking, which has reached capacity in recent peak travel times, is being expanded with new lots and the rebuilding of the parking garage. Car rental facilities will be moved from the terminal and parking garage to a new consolidated rental car facility and ground transportation center. The terminal and its two concourses will see additional boarding bridges and gate waiting area expansions. A new U.S. Customs and Border protection facility will be built to replace a smaller, outdated one. Delta and American are the primary passenger airlines at Syracuse with each carrying approximately 26% of the passengers for the fiscal year ending June 2023. Other airlines servicing SYR include Allegiant, Breeze, Frontier, JetBlue, Southwest, and United. Southwest entered the Syracuse market for the first time in 2021 and in March 2022 Breeze Airways began serving the airport. The following table presents passenger volume for SYR since 2013. Syracuse Hancock International Airport Year Passengers % Change 2013 1,970,212 2014 1,961,361 -0.4% 2015 1,963,672 0.1% 2016 1,965,176 0.1% 2017 2,013,640 2.5% 2018 2,262,412 12.4% 2019 2,527,869 11.7% 2020 862,998 -65.9% 2021 1,662,277 92.6% 2022 2,482,823 49.4% June YTD 2019 1,203,739 June YTD 2020 560,775 -53.4% June YTD 2021 589,049 5.0% June YTD 2022 1,154,211 95.9% June YTD 2023 1,313,965 13.8% Source: Bureau Transportation Statistics Syracuse Hancock International Airport Year Passengers % Change 2013 1,970,212 2014 1,961,361 -0.4% 2015 1,963,672 0.1% 2016 1,965,176 0.1% 2017 2,013,640 2.5% 2018 2,262,412 12.4% 2019 2,527,869 11.7% 2020 862,998 -65.9% 2021 1,662,277 92.6% 2022 2,482,823 49.4% June YTD 2019 1,203,739 June YTD 2020 560,775 -53.4% June YTD 2021 589,049 5.0% June YTD 2022 1,154,211 95.9% June YTD 2023 1,313,965 13.8% Source: Bureau Transportation Statistics After year-after-year growth since 2014, passenger traffic through SYR reached its historic high in 2019, serving over 2.5 million passengers. As a result of the pandemic, traffic declined 65.9% in 2020 to 863 thousand. With considerable year-over-year growth in 2021 and 2022, passenger traffic at SYR was 98% of pre pandemic levels at the end of 2022. Year-to-date through June 2023, traffic has exceeded in 2019 during the same period. Hancock Field Air National Guard Base is the home station of the New York Air National Guard's 174th Attack Wing and the 274th Air Support Operations Squadron. The base employes approximately 2,000 personnel consisting of full-time Active Guard and Reserve, Air Reserve Technicians, and traditional part- time Air National Guardsmen. Pinnacle Advisory Group Page 66 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY After year-after-year growth since 2014, passenger traffic through SYR reached its historic high in 2019, serving over 2.5 million passengers. As a result of the pandemic, traffic declined 65.9% in 2020 to 863 thousand. With considerable year-over-year growth in 2021 and 2022, passenger traffic at SYR was 98% of pre pandemic levels at the end of 2022. Year-to-date through June 2023, traffic has exceeded in 2019 during the same period. Hancock Field Air National Guard Base is the home station of the New York Air National Guard's 174th Attack Wing and the 274th Air Support Operations Squadron. The base employes approximately 2,000 personnel consisting of full-time Active Guard and Reserve, Air Reserve Technicians, and traditional part- time Air National Guardsmen. Pinnacle Advisory Group Page 66 of 107 AREA ANALYSIS Proposed Home2 Suites — Liverpool NY Transit Systems Located approximately 2.5 miles from the proposed hotel site, the William F. Walsh Regional Transportation Center (RTC) is an intermodal transit station serving the Syracuse area. Amtrak Syracuse is served by the daily round trip of the Lake Shore Limited, connecting Boston and New York to Chicago. Two daily Empire Service round trips connect New York City and Niagara Falls via Albany, the state capital, and the Maple Leaf offers daily roundtrip service between New York City and Toronto. Bus Service Greyhound, Megabus, OurBus and Trailways provide long distance bus service to destinations including New York City, Boston, Buffalo, Albany, and Toronto. Centro bus routes connect Fulton, Liverpool Oswego, Phoenix, and Syracuse. Impact on Hotel Demand The COVID-19 pandemic created a global economic crisis with many countries still facing a recession or a depression. Economic indicators project continued slow and steady growth for the Syracuse MSA. Given the conservative approach New York took with the pandemic, the regional economy is expected to see moderate growth in 2023 and 2024, but still lagging behind many other states. Employment trends in the Syracuse MSA continue to improve. As of July 2023, the MSA's unemployment rate was slightly below the national and state rate. Syracuse is a regional tourist destination offering sporting events, museums, historical sites, tourist attractions and entertainment. The area will continue to attract leisure visitors year after year. Overall, based on our review of the leading economic indicators presented herein, we are of the opinion that the long-term prospects for the area are positive, and the economy will continue to gradually expand. Transit Systems Located approximately 2.5 miles from the proposed hotel site, the William F. Walsh Regional Transportation Center (RTC) is an intermodal transit station serving the Syracuse area. Amtrak Syracuse is served by the daily round trip of the Lake Shore Limited, connecting Boston and New York to Chicago. Two daily Empire Service round trips connect New York City and Niagara Falls via Albany, the state capital, and the Maple Leaf offers daily roundtrip service between New York City and Toronto. Bus Service Greyhound, Megabus, OurBus and Trailways provide long distance bus service to destinations including New York City, Boston, Buffalo, Albany, and Toronto. Centro bus routes connect Fulton, Liverpool Oswego, Phoenix, and Syracuse. Impact on Hotel Demand The COVID-19 pandemic created a global economic crisis with many countries still facing a recession or a depression. Economic indicators project continued slow and steady growth for the Syracuse MSA. Given the conservative approach New York took with the pandemic, the regional economy is expected to see moderate growth in 2023 and 2024, but still lagging behind many other states. Employment trends in the Syracuse MSA continue to improve. As of July 2023, the MSA's unemployment rate was slightly below the national and state rate. Syracuse is a regional tourist destination offering sporting events, museums, historical sites, tourist attractions and entertainment. The area will continue to attract leisure visitors year after year. Overall, based on our review of the leading economic indicators presented herein, we are of the opinion that the long-term prospects for the area are positive, and the economy will continue to gradually expand. Pinnacle Advisory Group Page 67 of 107 FACILITIES & OPERATING ASSUMPTIONS Proposed Home2 Suites — Liverpool NY Pinnacle Advisory Group Page 67 of 107 FACILITIES & OPERATING ASSUMPTIONS Proposed Home2 Suites — Liverpool NY SITE ANALYSIS The subject site is approximately 4.0 acres located on Elwood Davis Road in Liverpool NY. The Onondaga County Assessor Office identifies the property as Reputed Owner Emmi, LLC Tax Map # 75.-03-5.2 and Emmi Development Co., Reputed Owner, Tax Map # 75-03-11.1. The immediate area is a mixed-use neighborhood consisting of commercial buildings, including office, educational, medical, hotel, retail, and fast food restaurants, as well as tree-lined residential streets. The NY State Thruway parallels Elwood Davis Road. The site is currently unimproved. Access and Visibility The site is accessed Elwood Davis Road which may be accessed from Buckley Road to the East or 7th North Street on the South. The site is highly visible and accessible from the NY State Thruway, just 0.7 miles from Exit # 37, and 1.5 miles from Exit 36, which is IH-81. Syracuse Hancock International Airport is approximately 5 miles from the site, while the Syracuse Regional Transportation Center (Amtrak and Greyhound) are 2.5 miles away. The Proposed Hotel will offer free transportation to both locations. Proximity to Area Amenities With proximity to both the Thruway and IH-81, the site has easy access to Destiny USA shopping center and Armory Square with many retail and dining options, JMA Wireless Dome and Landmark Theater, Onondaga Lake Park, and NY State Fairgrounds. Proximity to Demand Generators Pinnacle Advisory Group Page 68 of 107 SITE ANALYSIS The subject site is approximately 4.0 acres located on Elwood Davis Road in Liverpool NY. The Onondaga County Assessor Office identifies the property as Reputed Owner Emmi, LLC Tax Map # 75.-03-5.2 and Emmi Development Co., Reputed Owner, Tax Map # 75-03-11.1. The immediate area is a mixed-use neighborhood consisting of commercial buildings, including office, educational, medical, hotel, retail, and fast food restaurants, as well as tree-lined residential streets. The NY State Thruway parallels Elwood Davis Road. The site is currently unimproved. Access and Visibility The site is accessed Elwood Davis Road which may be accessed from Buckley Road to the East or 7th North Street on the South. The site is highly visible and accessible from the NY State Thruway, just 0.7 miles from Exit # 37, and 1.5 miles from Exit 36, which is IH-81. Syracuse Hancock International Airport is approximately 5 miles from the site, while the Syracuse Regional Transportation Center (Amtrak and Greyhound) are 2.5 miles away. The Proposed Hotel will offer free transportation to both locations. Proximity to Area Amenities With proximity to both the Thruway and IH-81, the site has easy access to Destiny USA shopping center and Armory Square with many retail and dining options, JMA Wireless Dome and Landmark Theater, Onondaga Lake Park, and NY State Fairgrounds. Proximity to Demand Generators Pinnacle Advisory Group Page 68 of 107 FACILITIES & OPERATING ASSUMPTIONS Proposed Home2 Suites — Liverpool NY The site is located just over 1 mile from Lockheed Martin, a major corporate and extended stay demand generator and within a 15 minute drive from Syracuse University, SUNY Upstate Medical University, and Le Moyne College The following summarizes the advantages and disadvantages that we have identified for the subject site: Advantages • The site is easily accessible from the New York State Thruway via local roads from Exit 36 and Exit 37. Highway travelers and walk-in traffic will be likely. • The property is close to Lockheed Martin, a generator of corporate demand in the immediate area. • The location is proximate to four hotel properties the client currently owns and operates. • Convenient access to the area's highway network is provided by a nearby ramps to 1-90 and 1-81 which connect to Hancock Airport, downtown Syracuse, Syracuse University, and Destiny USA. Disadvantages • The 1-81 Viaduct project announced by the New York State Department and Transportation and US Federal Highway Administration would redirect 1-81 traffic to the new 1-81 (existing 1-481) 4.5 miles north of the site. The existing 1-81 would be renamed BL-81. The construction could disrupt traffic for five years or more. • Guests are likely to be car dependent. Limited supporting amenities, such as dining, shopping, or entertainment are located within walking distance of the proposed hotel. • Proximity to the NYS Thruway may create noise issues. Conclusion The subject site will benefit from its location near the intersection of 1-90 and 1-81. Access to the site from the within the region is quick and convenient. In summary, the site is considered to have very good attributes for hotel development. FACILITIES & OPERATING ASSUMPTIONS Proposed Home2 Suites — Liverpool NY The site is located just over 1 mile from Lockheed Martin, a major corporate and extended stay demand generator and within a 15 minute drive from Syracuse University, SUNY Upstate Medical University, and Le Moyne College The following summarizes the advantages and disadvantages that we have identified for the subject site: Advantages • The site is easily accessible from the New York State Thruway via local roads from Exit 36 and Exit 37. Highway travelers and walk-in traffic will be likely. • The property is close to Lockheed Martin, a generator of corporate demand in the immediate area. • The location is proximate to four hotel properties the client currently owns and operates. • Convenient access to the area's highway network is provided by a nearby ramps to 1-90 and 1-81 which connect to Hancock Airport, downtown Syracuse, Syracuse University, and Destiny USA. Disadvantages • The 1-81 Viaduct project announced by the New York State Department and Transportation and US Federal Highway Administration would redirect 1-81 traffic to the new 1-81 (existing 1-481) 4.5 miles north of the site. The existing 1-81 would be renamed BL-81. The construction could disrupt traffic for five years or more. • Guests are likely to be car dependent. Limited supporting amenities, such as dining, shopping, or entertainment are located within walking distance of the proposed hotel. • Proximity to the NYS Thruway may create noise issues. Conclusion The subject site will benefit from its location near the intersection of 1-90 and 1-81. Access to the site from the within the region is quick and convenient. In summary, the site is considered to have very good attributes for hotel development. Pinnacle Advisory Group Page 69 of 107 FACILITIES & OPERATING ASSUMPTIONS Proposed Home2 Suites — Liverpool NY Pinnacle Advisory Group Page 69 of 107 FACILITIES & OPERATING ASSUMPTIONS Proposed Home2 Suites — Liverpool NY FACILITIES & OPERATING ASSUMPTIONS The Client has provided us with all facility assumptions for the Proposed Hotel. The assumptions are inherently linked to our projections. A current site plan and development scheme is presented in the Addenda. Brand/Position • The Proposed Hotel will operate as a 110-room Home2 Suites. • As a Home2 Suites, the Proposed Hotel will be an upper-midscale, extended stay brand affiliated by Hilton. Home2 Suites compete directly with Marriott TownePlace Suites, Candlewood Suites by IHG, and Comfort Suites by Choice Hotels. • Per the 2023 US Home2 Suites Franchise Disclosure Document, as of December 31, 2022 there were 547 open properties, 63 projected new outlets in 2023, and 528 license agreements signed but outlets not open. The average mature (open 2 years) Home2 Suites in the United States attained 78% occupancy at $134 average rate. Amenities • Each room will have kitchen facilities including full size refrigerator, dishwasher, microwave, toaster, cookware and utensils, and real china place settings. • Free breakfast will be provided. • Home2 Market for sundry items and business services area in the lobby. • Brand standard guest laundry & exercise / Spin2 Cycle facility and indoor pool. • The facility will be pet friendly and have adequate on-site parking. Operations • We have assumed that the Proposed Hotel will open October 1, 2025. • The Proposed Hotel will be professionally managed and marketed by a professional hotel management company. FACILITIES & OPERATING ASSUMPTIONS The Client has provided us with all facility assumptions for the Proposed Hotel. The assumptions are inherently linked to our projections. A current site plan and development scheme is presented in the Addenda. Brand/Position • The Proposed Hotel will operate as a 110-room Home2 Suites. • As a Home2 Suites, the Proposed Hotel will be an upper-midscale, extended stay brand affiliated by Hilton. Home2 Suites compete directly with Marriott TownePlace Suites, Candlewood Suites by IHG, and Comfort Suites by Choice Hotels. • Per the 2023 US Home2 Suites Franchise Disclosure Document, as of December 31, 2022 there were 547 open properties, 63 projected new outlets in 2023, and 528 license agreements signed but outlets not open. The average mature (open 2 years) Home2 Suites in the United States attained 78% occupancy at $134 average rate. Amenities • Each room will have kitchen facilities including full size refrigerator, dishwasher, microwave, toaster, cookware and utensils, and real china place settings. • Free breakfast will be provided. • Home2 Market for sundry items and business services area in the lobby. • Brand standard guest laundry & exercise / Spin2 Cycle facility and indoor pool. • The facility will be pet friendly and have adequate on-site parking. Operations • We have assumed that the Proposed Hotel will open October 1, 2025. • The Proposed Hotel will be professionally managed and marketed by a professional hotel management company. Pinnacle Advisory Group Page 70 of 107 COMPETITIVE LODGING MARKET Proposed Home2 Suites — Liverpool NY Pinnacle Advisory Group Page 70 of 107 COMPETITIVE LODGING MARKET Proposed Home2 Suites — Liverpool NY COMPETITIVE LODGING MARKET Overall Syracuse Lodging Market Although the Proposed Hotel will not compete with all hotels in the overall Syracuse lodging market, it is important to understand the broader market, as a foundation for the competitive market, which will be defined in the following section. The tables below illustrate the historic performance of the overall Syracuse lodging market from 2013 through 2022. Historical Performance Syracuse Hotel Market Year Supply % Change Demand % Change Occupancy ADR % Change 2013 3,084,037 1,803,167 58.5% $98.43 - 2014 3,091,570 0.2% 1,808,443 0.3% 58.5% $99.91 1.5% 2015 3,089,546 -0.1% 1,749,641 -3.3% 56.6% $102.57 2.7% 2016 3,201,313 3.6% 1,784,845 2.0% 55.8% $103.03 0.4% 2017 3,396,596 6.1% 1,845,486 3.4% 54.3% $102.44 -0.6% 2018 3,478,022 2.4% 1,983,991 7.5% 57.0% $103.88 1.4% 2019 3,520,969 1.2% 1,943,489 -2.0% 55.2% $105.07 1.1% 2020 3,428,193 -2.6% 1,211,207 -37.7% 35.3% $87.25 -17.0% 2021 3,431,301 0.1% 1,697,757 40.2% 49.5% $104.20 19.4% 2022 3,429,826 0.0% 1,982,198 16.8% 57.8% $122.96 18.0% CAGR 2013-2019 2.2% 1.3% 1.1% CAGR 2013-2022 1.2% 1.1% 2.5% Source: CoStar COMPETITIVE LODGING MARKET Overall Syracuse Lodging Market Although the Proposed Hotel will not compete with all hotels in the overall Syracuse lodging market, it is important to understand the broader market, as a foundation for the competitive market, which will be defined in the following section. The tables below illustrate the historic performance of the overall Syracuse lodging market from 2013 through 2022. Historical Performance Syracuse Hotel Market Year Supply % Change Demand % Change Occupancy ADR % Change 2013 3,084,037 1,803,167 58.5% $98.43 - 2014 3,091,570 0.2% 1,808,443 0.3% 58.5% $99.91 1.5% 2015 3,089,546 -0.1% 1,749,641 -3.3% 56.6% $102.57 2.7% 2016 3,201,313 3.6% 1,784,845 2.0% 55.8% $103.03 0.4% 2017 3,396,596 6.1% 1,845,486 3.4% 54.3% $102.44 -0.6% 2018 3,478,022 2.4% 1,983,991 7.5% 57.0% $103.88 1.4% 2019 3,520,969 1.2% 1,943,489 -2.0% 55.2% $105.07 1.1% 2020 3,428,193 -2.6% 1,211,207 -37.7% 35.3% $87.25 -17.0% 2021 3,431,301 0.1% 1,697,757 40.2% 49.5% $104.20 19.4% 2022 3,429,826 0.0% 1,982,198 16.8% 57.8% $122.96 18.0% CAGR 2013-2019 2.2% 1.3% 1.1% CAGR 2013-2022 1.2% 1.1% 2.5% Source: CoStar The market experienced moderate growth in both supply and demand over the seven years between 2013 and 2019. Supply outpaced demand, increasing 2.5%, compounded annually, when compared to demand which increased 1.4. Occupancy in the overall Syracuse lodging market averaged 57% between 2012 and 2019 and average daily rate (ADR) increased 1.1% on a compound annual basis. During this same period, revenue per available room (RevPAR) increased 0.1% annually. The COVID-19 pandemic had a major impact on the Syracuse market. In 2020, occupancy declined from 55% to 35% while ADR declined over 17% to $87. Resulting RevPAR was down by 57%. Driven largely by an increase in leisure demand, the lodging market began to improve in 2021. By year end, demand had increased 40%, allowing occupancy to reach 50%. Because the recovery was a result of pent-up leisure demand matched with the economy's high inflationary environment, ADR increased 19% in 2021. As a result, RevPAR reached $51 in 2021, representing an increase to the prior year of almost 67%. The market's improvement and recovery continued through 2022; the market's occupancy ended the year at 58%, nearly back to its previous peak in 2013-2014. ADR growth was 18% in 2022, resulting in 117% penetration to pre-pandemic rate. Conclusion As outlined previously, Syracuse's economy is driven by a diverse set of growth engines which should provide it with a level of stability over the long-term. The area's rich history, amenities, and ease of access contribute to its ability to attract group and leisure travel. While the market remains reliant on its traditional industries such as manufacturing, education, and healthcare, it has also become a growing hub for film making and technology, all of which drive corporate travel throughout the calendar year. The market experienced moderate growth in both supply and demand over the seven years between 2013 and 2019. Supply outpaced demand, increasing 2.5%, compounded annually, when compared to demand which increased 1.4. Occupancy in the overall Syracuse lodging market averaged 57% between 2012 and 2019 and average daily rate (ADR) increased 1.1% on a compound annual basis. During this same period, revenue per available room (RevPAR) increased 0.1% annually. The COVID-19 pandemic had a major impact on the Syracuse market. In 2020, occupancy declined from 55% to 35% while ADR declined over 17% to $87. Resulting RevPAR was down by 57%. Driven largely by an increase in leisure demand, the lodging market began to improve in 2021. By year end, demand had increased 40%, allowing occupancy to reach 50%. Because the recovery was a result of pent-up leisure demand matched with the economy's high inflationary environment, ADR increased 19% in 2021. As a result, RevPAR reached $51 in 2021, representing an increase to the prior year of almost 67%. The market's improvement and recovery continued through 2022; the market's occupancy ended the year at 58%, nearly back to its previous peak in 2013-2014. ADR growth was 18% in 2022, resulting in 117% penetration to pre-pandemic rate. Conclusion As outlined previously, Syracuse's economy is driven by a diverse set of growth engines which should provide it with a level of stability over the long-term. The area's rich history, amenities, and ease of access contribute to its ability to attract group and leisure travel. While the market remains reliant on its traditional industries such as manufacturing, education, and healthcare, it has also become a growing hub for film making and technology, all of which drive corporate travel throughout the calendar year. Pinnacle Advisory Group Page 71 of 107 COMPETITIVE LODGING MARKET Proposed Home2 Suites — Liverpool NY Demand growth is expected to remain stable assuming broader economic trends remain favorable. Market ADR is expected to growth with inflationary levels. Competitive Lodging Market It is important to evaluate the current and prospective status of the lodging industry in the surrounding area, as well as a defined competitive supply of properties that are expected to compete with the Proposed Hotel. Following our analysis of the overall Syracuse lodging market dynamics, we have analyzed the area hotels based upon their physical characteristics, location, rate structure, brand affiliation, and core demand drivers in determining the competitive supply for the Proposed Hotel. We have identified a set of seven branded hotels which we believe will be directly competitive with the Proposed Hotel to varying degrees. This does not imply that these hotels are the only hotels catering to demand that is potentially available in the area. The defined supply is intended to represent the grouping of hotels for which performance measures and the general character of the market can be assessed when examining the potential future demand in the area. The following table lists the competitive hotels, both primary and secondary. Pinnacle defines the primary competitive set to be the five hotels within 1.0 miles of the Proposed Hotel. The Candlewood and the Holiday Inn Express are included in the STR report; however, these hotels are considered to be secondary competitors. Defined Com • etitive Set Aff. Open Dist from Property City, State _,Attakakiss RaJka.A.az.ftW Rooms Subj Homewood Suites by Hilton Syracuse Liverpool Liverpool, NY Upscale 1991 1991 102 0.1 Hampton Inn & Suites Syracuse North Airport Area North Syracuse Upper Midscale 2017 2017 124 0.4 Staybridge Suites Syracuse Liverpool Liverpool, NY Upscale 2011 2011 123 0.6 Tru by Hilton North Airport Airea Liverpool, NY Midscale 2018 2018 93 0.7 Holiday Inn & Suites Syracuse Airport - Liverpool Liverpool, NY Upper Midscale 2020 1950 137 0.7 Candlewood Suites Syracuse - Airport North Syracuse Midscale 2003 2003 124 2.5 Holiday Inn Express Syracuse Airport North Syracuse Upper Midscale 2007 2007 95 2.5 Source: STR, Compiled by Pinnacle Advisory Group Pinnacle Advisory Group Page 71 of 107 COMPETITIVE LODGING MARKET Proposed Home2 Suites — Liverpool NY Demand growth is expected to remain stable assuming broader economic trends remain favorable. Market ADR is expected to growth with inflationary levels. Competitive Lodging Market It is important to evaluate the current and prospective status of the lodging industry in the surrounding area, as well as a defined competitive supply of properties that are expected to compete with the Proposed Hotel. Following our analysis of the overall Syracuse lodging market dynamics, we have analyzed the area hotels based upon their physical characteristics, location, rate structure, brand affiliation, and core demand drivers in determining the competitive supply for the Proposed Hotel. We have identified a set of seven branded hotels which we believe will be directly competitive with the Proposed Hotel to varying degrees. This does not imply that these hotels are the only hotels catering to demand that is potentially available in the area. The defined supply is intended to represent the grouping of hotels for which performance measures and the general character of the market can be assessed when examining the potential future demand in the area. The following table lists the competitive hotels, both primary and secondary. Pinnacle defines the primary competitive set to be the five hotels within 1.0 miles of the Proposed Hotel. The Candlewood and the Holiday Inn Express are included in the STR report; however, these hotels are considered to be secondary competitors. Defined Com • etitive Set Aff. Open Dist from Property City, State _,Attakakiss RaJka.A.az.ftW Rooms Subj Homewood Suites by Hilton Syracuse Liverpool Liverpool, NY Upscale 1991 1991 102 0.1 Hampton Inn & Suites Syracuse North Airport Area North Syracuse Upper Midscale 2017 2017 124 0.4 Staybridge Suites Syracuse Liverpool Liverpool, NY Upscale 2011 2011 123 0.6 Tru by Hilton North Airport Airea Liverpool, NY Midscale 2018 2018 93 0.7 Holiday Inn & Suites Syracuse Airport - Liverpool Liverpool, NY Upper Midscale 2020 1950 137 0.7 Candlewood Suites Syracuse - Airport North Syracuse Midscale 2003 2003 124 2.5 Holiday Inn Express Syracuse Airport North Syracuse Upper Midscale 2007 2007 95 2.5 Source: STR, Compiled by Pinnacle Advisory Group Due to the Proposed Hotel's brand affiliation with Home2 Suites and its extended stay positioning we believe the Proposed Hotel will compete with a mix of hotels that are both extended-stay and transient oriented. For this reason, the set is made up of three extended stay hotels and four hotels which target a more traditional mix of lodging demand consisting of both transient and group. Of the 7 hotels, two are midscale hotels and two are upscale with the remaining 3 positioned as upper-midscale hotels, similar to the Proposed Hotel. The hotels are located in the Syracuse Surrounding or Syracuse CBD / Airport submarkets. Each of the competitive properties is discussed below. Homewood Suites by Hilton Syracuse Liverpool The Homewood Suites Liverpool is located at 275 Elwood Davis Road directly adjacent to the Proposed Hotel site via Elwood Davis Road. The property is owned by Emmi Commerce Park Development. The hotel opened in 1991 and is a 'Generation 1' Homewood Suites containing 102 true suites in three buildings and is in good condition. The Lodge building offers breakfast daily and 468 SF of meeting space. Recreational amenities include a fitness room and outdoor pool. Guestrooms feature a microwave, cooktop, full size refrigerator, dishwasher, coffee maker, pots and pans and service pieces. Shuttle service is provided to the airport. It is estimated that in 2022 the property had a mix of business equivalent to 10% corporate, 1% group, 29% leisure, and 60% extended stay. Due to the Proposed Hotel's brand affiliation with Home2 Suites and its extended stay positioning we believe the Proposed Hotel will compete with a mix of hotels that are both extended-stay and transient oriented. For this reason, the set is made up of three extended stay hotels and four hotels which target a more traditional mix of lodging demand consisting of both transient and group. Of the 7 hotels, two are midscale hotels and two are upscale with the remaining 3 positioned as upper-midscale hotels, similar to the Proposed Hotel. The hotels are located in the Syracuse Surrounding or Syracuse CBD / Airport submarkets. Each of the competitive properties is discussed below. Homewood Suites by Hilton Syracuse Liverpool The Homewood Suites Liverpool is located at 275 Elwood Davis Road directly adjacent to the Proposed Hotel site via Elwood Davis Road. The property is owned by Emmi Commerce Park Development. The hotel opened in 1991 and is a 'Generation 1' Homewood Suites containing 102 true suites in three buildings and is in good condition. The Lodge building offers breakfast daily and 468 SF of meeting space. Recreational amenities include a fitness room and outdoor pool. Guestrooms feature a microwave, cooktop, full size refrigerator, dishwasher, coffee maker, pots and pans and service pieces. Shuttle service is provided to the airport. It is estimated that in 2022 the property had a mix of business equivalent to 10% corporate, 1% group, 29% leisure, and 60% extended stay. Pinnacle Advisory Group Page 72 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY Hampton Inn & Suites The Hampon Inn & Suites Syracuse North Airport Area is located at 1305 Buckley Road in North Syracuse, 0.4 miles from the subject via Elwood Davis Road. The property is owned by Prima Terra Properties. The hotel opened in 2017 and offers 124 rooms and 1,066 SF of meeting space. Amenities include a free breakfast, indoor pool, fitness center, airport shuttle service, and lobby convenience shop. The property is in very good condition. it is estimated that the property had a mix of business equivalent to 46% corporate, 4% group, and 47% leisure in 2022. Pinnacle Advisory Group Page 72 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY Hampton Inn & Suites The Hampon Inn & Suites Syracuse North Airport Area is located at 1305 Buckley Road in North Syracuse, 0.4 miles from the subject via Elwood Davis Road. The property is owned by Prima Terra Properties. The hotel opened in 2017 and offers 124 rooms and 1,066 SF of meeting space. Amenities include a free breakfast, indoor pool, fitness center, airport shuttle service, and lobby convenience shop. The property is in very good condition. it is estimated that the property had a mix of business equivalent to 46% corporate, 4% group, and 47% leisure in 2022. Staybridge Suites The Staybridge Suites Syracuse Liverpool is located at 139 Electronics Parkway, approximately 0.6 mile from the Proposed Hotel site via 7th North Street. The property is owned by First Republic Corporation of America, who also own the closed 198-room Ramada hotel adjacent. The hotel opened in 2011 and has 123 primarily studio suite/rooms with full kitchens in one building. Amenities include free breakfast, fitness center, social hour, and business center. The property has been for sale for several years and is in a very worn condition. The property accommodates Air National Guard training groups at reduced government rates for periods up to six months at a time. It is estimated that the property had a mix of business equivalent to 20% corporate 5% group, 15% leisure, and 60% extended stay. Staybridge Suites The Staybridge Suites Syracuse Liverpool is located at 139 Electronics Parkway, approximately 0.6 mile from the Proposed Hotel site via 7th North Street. The property is owned by First Republic Corporation of America, who also own the closed 198-room Ramada hotel adjacent. The hotel opened in 2011 and has 123 primarily studio suite/rooms with full kitchens in one building. Amenities include free breakfast, fitness center, social hour, and business center. The property has been for sale for several years and is in a very worn condition. The property accommodates Air National Guard training groups at reduced government rates for periods up to six months at a time. It is estimated that the property had a mix of business equivalent to 20% corporate 5% group, 15% leisure, and 60% extended stay. Tru by Hilton Syracuse North Airport Airea The Tru by Hilton Syracuse North Airport Area, approximately 0.7 mile from the Proposed Hotel via 7th North Street, is located at 417 7th North Street, North Syracuse. Amenities include hot continental breakfast, fitness center, airport shuttle, and game room. The hotel opened in 2018 with 93 rooms and 2,300 SF of meeting space, is owned by ETNA Development, and is in very good condition. It is estimated that the 2022 business mix was 30% corporate, 20% group, and 50% leisure. Holiday Inn & Suites Syracuse Airport - Liverpool The Holiday Inn & Suites Syracuse Airport — Liverpool is located at 400 7th Street North, approximately 1.0 mile from the Proposed hotel. Originally built in 1950, the property has 137 rooms, 3,517 SF of meeting space and a restaurant / bar. The property has operated as a branded hotel and as an independent. The current owner, Sweet Home Hospitality, Inc, completed an extensive renovation in 2019 and affiliated with the Holiday Inn Brand in 2020. The hotel is in good condition, and the hotel's 2022 estimated mix of business was 30% corporate, 30% group, and 40% leisure. Tru by Hilton Syracuse North Airport Airea The Tru by Hilton Syracuse North Airport Area, approximately 0.7 mile from the Proposed Hotel via 7th North Street, is located at 417 7th North Street, North Syracuse. Amenities include hot continental breakfast, fitness center, airport shuttle, and game room. The hotel opened in 2018 with 93 rooms and 2,300 SF of meeting space, is owned by ETNA Development, and is in very good condition. It is estimated that the 2022 business mix was 30% corporate, 20% group, and 50% leisure. Holiday Inn & Suites Syracuse Airport - Liverpool The Holiday Inn & Suites Syracuse Airport — Liverpool is located at 400 7th Street North, approximately 1.0 mile from the Proposed hotel. Originally built in 1950, the property has 137 rooms, 3,517 SF of meeting space and a restaurant / bar. The property has operated as a branded hotel and as an independent. The current owner, Sweet Home Hospitality, Inc, completed an extensive renovation in 2019 and affiliated with the Holiday Inn Brand in 2020. The hotel is in good condition, and the hotel's 2022 estimated mix of business was 30% corporate, 30% group, and 40% leisure. Candlewood Suites Syracuse Airport The Candlewood Suites Syracuse Airport is located at 5414 South Bay Road in North Syracuse and is considered a secondary competitor. Opening in 2003 with 124 rooms and 638 SF Meeting space, the property was sold in January 2021 and again in April 2022. The current owner is WPP Group USA, Inc. The property had been accommodating long term guests such as families with small children, medical workers, and disabled veterans. In May 2023, the property allegedly began housing migrant families. The hotel is in very poor condition. The estimated 2022 mix of business was 10% corporate, 40% leisure, 50% extended stay. Holiday Inn Express Syracuse Airport The Holiday Inn Express Syracuse Airport is located at 5418 South Bay Road in North Syracuse and is considered a secondary competitor. The hotel opened in 2007 with 95 rooms and 400 SF of meeting space. The property traded in July 2022 after previous transactions in February 2020 and January 2021. Pinnacle Advisory Group Page 73 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY The property was undergoing a complete renovation in August 2023. The 2022 estimated demand mix was 40% corporate and 60% leisure. The following map presents the location of each of the aforementioned properties in relation to the Proposed Hotel. Candlewood Suites Syracuse Airport The Candlewood Suites Syracuse Airport is located at 5414 South Bay Road in North Syracuse and is considered a secondary competitor. Opening in 2003 with 124 rooms and 638 SF Meeting space, the property was sold in January 2021 and again in April 2022. The current owner is WPP Group USA, Inc. The property had been accommodating long term guests such as families with small children, medical workers, and disabled veterans. In May 2023, the property allegedly began housing migrant families. The hotel is in very poor condition. The estimated 2022 mix of business was 10% corporate, 40% leisure, 50% extended stay. Holiday Inn Express Syracuse Airport The Holiday Inn Express Syracuse Airport is located at 5418 South Bay Road in North Syracuse and is considered a secondary competitor. The hotel opened in 2007 with 95 rooms and 400 SF of meeting space. The property traded in July 2022 after previous transactions in February 2020 and January 2021. Pinnacle Advisory Group Page 73 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY The property was undergoing a complete renovation in August 2023. The 2022 estimated demand mix was 40% corporate and 60% leisure. The following map presents the location of each of the aforementioned properties in relation to the Proposed Hotel. Proposed Home 2 Suites Syracuse U,IUeU atoll Postal Spry Copy of Syracuse Home2 Comp locations xlsx ZO" ,ckle North Cant4wood Sneers 9 Homewood Suites Great Lakes Honda City 9 Holiday Inn Expresslitt Syracuse Airport, art HG 9 ALDI 9 Hampton Inn & Suites &alt., Rd 9 Flaming Grip Bt.-ft:19 Ruby Hilton 400.0x R0 Proposed Home 2 Suites Syracuse U,IUeU atoll Postal Spry Copy of Syracuse Home2 Comp locations xlsx ZO" ,ckle North Cant4wood Sneers 9 Homewood Suites Great Lakes Honda City 9 Holiday Inn Expresslitt Syracuse Airport, art HG 9 ALDI 9 Hampton Inn & Suites &alt., Rd 9 Flaming Grip Bt.-ft:19 Ruby Hilton 400.0x R0 3est Western Plus Holiday Inn & Suites •erpool-Syracuse Salina e )sttlIE RG 9 Staybridge lade, Fc6 St aybridoe Suit es Iles Syracuse a 3est Western Plus Holiday Inn & Suites •erpool-Syracuse Salina e )sttlIE RG 9 Staybridge lade, Fc6 St aybridoe Suit es Iles Syracuse a 9 Candlewood Suites 9 Nomeyea.d 9 9 Suites by Hilton Proposed licvne2 Suites MATTYDALE Ewlic"" Holiday Inn Express Hampton inn 09 1 9 Suites Syracuse North. Proposed Home 2 Suites Holiday Inn & Sudo Syracuse Syracuse Airp TrnIty Hilton GALEVILLE 9 Candlewood Suites 9 Nomeyea.d 9 9 Suites by Hilton Proposed licvne2 Suites MATTYDALE Ewlic"" Holiday Inn Express Hampton inn 09 1 9 Suites Syracuse North. Proposed Home 2 Suites Holiday Inn & Sudo Syracuse Syracuse Airp TrnIty Hilton GALEVILLE Competitive Set Performance During the course of our fieldwork, we obtained operating statistics from STR as well as interviews conducted with on-site management and various ownership entities. The following table presents the competitive lodging market's historical performance and key data points. Historical Market Performance Proposed Home2 Suites - Liverpool, NY Competitive Compelithre Year Supply %Change Demand %Change Occupancy tug ADR %Change iteoPAR %Change 2015 211,700 129,145 61.0% $101.79 $62.09 2016 211,700 0.0% 135,130 4.6% 63.8% 4.6% $100.24 -1.5% $63.99 3.0% 2017 242,080 14.4% 154,864 14.6% 64.0% 0.2% $101.80 1.5% $65.12 1.8% 2018 274,657 13.5% 175,082 13.1% 63.7% -0.4% $102.49 0.7% $65.33 0.3% 2019 287,620 4.7% 190,535 8.8% 66.2% 3.9% $100.57 -1.9% $66.62 2.0% 2020 287,681 0.0% 129,804 -31.9% 45.1% -31.9% $81.88 -18.6% $36.94 -44.5% 2021 287,985 0.1% 186,623 43.8% 64.8% 43.6% $94.46 15.4% $61.22 65.7% 2022 290,190 0.8% 214,889 15.1% 74.1% 14.3% $117.13 24.0% $86.74 41.7% CAGR 2015-2022 4.6% 7.5% 2.0% 4.9% Jun Y7D 2022 143,358 103,278 72.0% $111.52 $80.34 Jun YID 2023 144,438 0.8% 101,334 -1.9% 70.2% -1.9% $114.94 3.1% $80.64 0.4% Source: RR, compiled by Pinnacle Advisory Group Competitive Set Performance During the course of our fieldwork, we obtained operating statistics from STR as well as interviews conducted with on-site management and various ownership entities. The following table presents the competitive lodging market's historical performance and key data points. Historical Market Performance Proposed Home2 Suites - Liverpool, NY Competitive Compelithre Year Supply %Change Demand %Change Occupancy tug ADR %Change iteoPAR %Change 2015 211,700 129,145 61.0% $101.79 $62.09 2016 211,700 0.0% 135,130 4.6% 63.8% 4.6% $100.24 -1.5% $63.99 3.0% 2017 242,080 14.4% 154,864 14.6% 64.0% 0.2% $101.80 1.5% $65.12 1.8% 2018 274,657 13.5% 175,082 13.1% 63.7% -0.4% $102.49 0.7% $65.33 0.3% 2019 287,620 4.7% 190,535 8.8% 66.2% 3.9% $100.57 -1.9% $66.62 2.0% 2020 287,681 0.0% 129,804 -31.9% 45.1% -31.9% $81.88 -18.6% $36.94 -44.5% 2021 287,985 0.1% 186,623 43.8% 64.8% 43.6% $94.46 15.4% $61.22 65.7% 2022 290,190 0.8% 214,889 15.1% 74.1% 14.3% $117.13 24.0% $86.74 41.7% CAGR 2015-2022 4.6% 7.5% 2.0% 4.9% Jun Y7D 2022 143,358 103,278 72.0% $111.52 $80.34 Jun YID 2023 144,438 0.8% 101,334 -1.9% 70.2% -1.9% $114.94 3.1% $80.64 0.4% Source: RR, compiled by Pinnacle Advisory Group Between 2015 and 2022, supply within the competitive set increased 4.6% on a compound annual basis. Openings during this period included the 124-room Hampton Inn & Suites in 2017, and the 93-room Tru by Hilton in 2018. Market occupancy was steady, and the new supply was quickly absorbed after Covid. Pinnacle Advisory Group Page 74 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY The slight increase in rooms in 2021 was a result of the Holiday Inn & Suites increasing room count by one, and the 2022-2023 increase resulted from the Candlewood Suites adjusting its room count by six in May 2022. During that same period, from 2015 to 2022, demand increased 7.5% on a compound annual basis, outpacing supply. During this period, excluding 2020 and 2021, market occupancy averaged 67% for the competitive set. The average occupancy for the primary competitive set during this same time period was 71%, compared to 58% for the secondary competitors. Between 2015 and 2022, supply within the competitive set increased 4.6% on a compound annual basis. Openings during this period included the 124-room Hampton Inn & Suites in 2017, and the 93-room Tru by Hilton in 2018. Market occupancy was steady, and the new supply was quickly absorbed after Covid. Pinnacle Advisory Group Page 74 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY The slight increase in rooms in 2021 was a result of the Holiday Inn & Suites increasing room count by one, and the 2022-2023 increase resulted from the Candlewood Suites adjusting its room count by six in May 2022. During that same period, from 2015 to 2022, demand increased 7.5% on a compound annual basis, outpacing supply. During this period, excluding 2020 and 2021, market occupancy averaged 67% for the competitive set. The average occupancy for the primary competitive set during this same time period was 71%, compared to 58% for the secondary competitors. Similar to the overall Syracuse market, the competitive set of hotels were negatively impacted by the pandemic and experienced a dramatic decline in demand in 2020. As demand declined almost 32%, occupancy fell to 45%. With the loosening of COVID-19 restrictions, the competitive set of hotels benefited from the return of leisure travel. Lodging demand in the competitive set increased 44% in 2021 and 14% in 2022, improving market occupancy to 74% in 2022. The competitive market saw a decline of 1.2% in ADR between 2015 and 2019, ending at $101. The following year, 2020, ADR declined almost 19% to $82. Due to the dynamics of the pandemic, the recovery of the leisure segment, and absorption of the new supply, by year end 2022 competitive ADR of $117 was at 117% of pre-pandemic levels. Not only do the primary competitive properties have higher occupancies, but the ADR for the primary set is substantially higher than the secondary competitors. In 2022, the ADR in the primary set was $126 compared to $94 for the secondary competitors. Between 2015 and 2022, RevPAR in the competitive set increased 4.9% on a compound annual basis. Year to date June 2023, with the combination of a very slight increase in supply and softened demand, down 1.4% year over year, occupancy has dropped 1.8 percentage points. ADR continues to be strong, increasing 3.1% versus the prior year, resulting in virtually flat RevPAR. Seasonality Similar to the overall Syracuse market, the competitive set of hotels were negatively impacted by the pandemic and experienced a dramatic decline in demand in 2020. As demand declined almost 32%, occupancy fell to 45%. With the loosening of COVID-19 restrictions, the competitive set of hotels benefited from the return of leisure travel. Lodging demand in the competitive set increased 44% in 2021 and 14% in 2022, improving market occupancy to 74% in 2022. The competitive market saw a decline of 1.2% in ADR between 2015 and 2019, ending at $101. The following year, 2020, ADR declined almost 19% to $82. Due to the dynamics of the pandemic, the recovery of the leisure segment, and absorption of the new supply, by year end 2022 competitive ADR of $117 was at 117% of pre-pandemic levels. Not only do the primary competitive properties have higher occupancies, but the ADR for the primary set is substantially higher than the secondary competitors. In 2022, the ADR in the primary set was $126 compared to $94 for the secondary competitors. Between 2015 and 2022, RevPAR in the competitive set increased 4.9% on a compound annual basis. Year to date June 2023, with the combination of a very slight increase in supply and softened demand, down 1.4% year over year, occupancy has dropped 1.8 percentage points. ADR continues to be strong, increasing 3.1% versus the prior year, resulting in virtually flat RevPAR. Seasonality As is typical for lodging markets in upstate New York, the competitive market's occupancy is highest during June through October, averaging in the mid 70's. Shoulder periods of March, April, and May show reduced occupancies generally ranging in the high 60's while the lowest occupancy levels are in January, February, November, and December averaging in the low 50's. Demand in the greater Syracuse Market is influenced by university events such as graduation, parent's weekends, homecoming, and move-in, and sports events. Syracuse University sports are the most attended sporting events in the Syracuse area. Basketball games often draw over 30,000 fans, and football games over 40,000. The pattern is consistent with demand trends for transient commercial travel in the northeast - businesspeople reduce travel during the winter to avoid potential weather and travel delays. Peak demand is in August, with an average of 17,396 room nights of demand which is primarily leisure, driven by the NY State Fair and college / university move-in dates. Conversely, in January the market accommodated an average of 9,863 room nights of demand, primarily from commercial and business travelers. The chart below shows monthly average occupancy, Average Daily Rate (ADR) and demand levels for the non-pandemic years between 2015 and 2022. Pinnacle Advisory Group Page 75 of 107 As is typical for lodging markets in upstate New York, the competitive market's occupancy is highest during June through October, averaging in the mid 70's. Shoulder periods of March, April, and May show reduced occupancies generally ranging in the high 60's while the lowest occupancy levels are in January, February, November, and December averaging in the low 50's. Demand in the greater Syracuse Market is influenced by university events such as graduation, parent's weekends, homecoming, and move-in, and sports events. Syracuse University sports are the most attended sporting events in the Syracuse area. Basketball games often draw over 30,000 fans, and football games over 40,000. The pattern is consistent with demand trends for transient commercial travel in the northeast - businesspeople reduce travel during the winter to avoid potential weather and travel delays. Peak demand is in August, with an average of 17,396 room nights of demand which is primarily leisure, driven by the NY State Fair and college / university move-in dates. Conversely, in January the market accommodated an average of 9,863 room nights of demand, primarily from commercial and business travelers. The chart below shows monthly average occupancy, Average Daily Rate (ADR) and demand levels for the non-pandemic years between 2015 and 2022. Pinnacle Advisory Group Page 75 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY Monthly Statistics - Six Year Average 2015-2022 (exclude 2020-2021) % of Total Month Occupancy Rate Demand Demand Jan 47.3% $94.30 9,863 5.9% Feb 57.7% $97.23 10,907 6.5% Mar 63.1% $99.30 13,160 7.9% Apr 69.1% $101.39 13,959 8.4% May 69.3% $112.85 14,983 9.0% Jun 74.0% $104.63 15,790 9.5% Jul 73.1% $109.26 16,027 9.6% Aug 79.0% $113.42 17,396 10.4% Sept 71.3% $106.66 15,109 9.1% Oct 72.9% $108.01 16,057 9.6% Nov 59.1% $96.17 12,628 7.6% Dec 48.8% $92.56 10,730 6.4% Average/Total 65.5% $104.00 166,608 Source: STR, Compiled by Pinnacle Advisory Group PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY Monthly Statistics - Six Year Average 2015-2022 (exclude 2020-2021) % of Total Month Occupancy Rate Demand Demand Jan 47.3% $94.30 9,863 5.9% Feb 57.7% $97.23 10,907 6.5% Mar 63.1% $99.30 13,160 7.9% Apr 69.1% $101.39 13,959 8.4% May 69.3% $112.85 14,983 9.0% Jun 74.0% $104.63 15,790 9.5% Jul 73.1% $109.26 16,027 9.6% Aug 79.0% $113.42 17,396 10.4% Sept 71.3% $106.66 15,109 9.1% Oct 72.9% $108.01 16,057 9.6% Nov 59.1% $96.17 12,628 7.6% Dec 48.8% $92.56 10,730 6.4% Average/Total 65.5% $104.00 166,608 Source: STR, Compiled by Pinnacle Advisory Group The following table depicts average daily occupancy for the market over a trailing 12-month period from July through June, by day of the week. The table reflects data from June 2020 through July of 2023. It is intended to illustrate the average fluctuations in demand by day of the week throughout the year. Due to the reliance on leisure demand on the weekends from vacationers, leaf peepers, outdoor adventure enthusiasts, college sports enthusiasts, and various SMERF groups, the competitive market's peak occupancy nights are Friday and Saturday. Corporate provides strong demand on Tuesday, Wednesday, and Thursday. Conversely, the slowest night of the week is Sunday, with average occupancies in the high 50's while Tuesday through Saturday nights maintain occupancies usually averaging in the mid to high 70% range. Occupancy by Day of Week Analysis - Trailing 12 months Year Sun Mon Tue Wed Thu Fri Sat Total Year Jul 20 -Jun 21 45.9% 56.1% 58.8% 59.2% 56.7% 57.1% 58.2% 56.0% Jul 21 - Jun 22 58.3% 68.4% 74.0% 73.8% 72.0% 75.6% 77.7% 71.4% Jul 22 - Jun 23 58.1% 70.5% 76.6% 76.9% 74.2% 77.0% 78.2% 73.1% 3-Year Average 54.1% 65.0% 69.8% 70.0% 67.7% 70.0% 71.4% 66.9% Source: STR, Compiled by Pinnacle Advisory Group The following table depicts average daily occupancy for the market over a trailing 12-month period from July through June, by day of the week. The table reflects data from June 2020 through July of 2023. It is intended to illustrate the average fluctuations in demand by day of the week throughout the year. Due to the reliance on leisure demand on the weekends from vacationers, leaf peepers, outdoor adventure enthusiasts, college sports enthusiasts, and various SMERF groups, the competitive market's peak occupancy nights are Friday and Saturday. Corporate provides strong demand on Tuesday, Wednesday, and Thursday. Conversely, the slowest night of the week is Sunday, with average occupancies in the high 50's while Tuesday through Saturday nights maintain occupancies usually averaging in the mid to high 70% range. Occupancy by Day of Week Analysis - Trailing 12 months Year Sun Mon Tue Wed Thu Fri Sat Total Year Jul 20 -Jun 21 45.9% 56.1% 58.8% 59.2% 56.7% 57.1% 58.2% 56.0% Jul 21 - Jun 22 58.3% 68.4% 74.0% 73.8% 72.0% 75.6% 77.7% 71.4% Jul 22 - Jun 23 58.1% 70.5% 76.6% 76.9% 74.2% 77.0% 78.2% 73.1% 3-Year Average 54.1% 65.0% 69.8% 70.0% 67.7% 70.0% 71.4% 66.9% Source: STR, Compiled by Pinnacle Advisory Group The average daily rate is highest on Friday and Saturday nights as most of the visitors travel for pleasure or personal reasons and discounted corporate rates are less prevalent. Mid-week rates are dominated by corporate or government accounts which may be offered volume discounts. Sundays achieve the lowest rates throughout the week as leisure travelers check out prior to the start of the business week and hoteliers discount rates to capture the limited business available. Average Daily Rate by Day of Week Analysis - Trailing 12 months Sun Mon Tues Weds Thurs Fri Sat Total Year Jul 20 -Jun 21 $78.19 $79.43 $79.99 $80.33 $79.94 $84.16 $85.09 $81.11 Jul 21 - Jun 22 $100.79 $100.27 $102.77 $104.10 $104.31 $116.68 $119.01 $107.23 Jul 22 - Jun 23 $107.31 $109.12 $111.43 $113.95 $116.18 $132.66 $136.70 $118.81 Total 3 Yr $96.78 $97.53 $99.60 $100.95 $101.92 $113.91 $116.35 $104.22 Source: STR, Compiled by Pinnacle Advisor)/ Group Pinnacle Advisory Group Page 76 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY The average daily rate is highest on Friday and Saturday nights as most of the visitors travel for pleasure or personal reasons and discounted corporate rates are less prevalent. Mid-week rates are dominated by corporate or government accounts which may be offered volume discounts. Sundays achieve the lowest rates throughout the week as leisure travelers check out prior to the start of the business week and hoteliers discount rates to capture the limited business available. Average Daily Rate by Day of Week Analysis - Trailing 12 months Sun Mon Tues Weds Thurs Fri Sat Total Year Jul 20 -Jun 21 $78.19 $79.43 $79.99 $80.33 $79.94 $84.16 $85.09 $81.11 Jul 21 - Jun 22 $100.79 $100.27 $102.77 $104.10 $104.31 $116.68 $119.01 $107.23 Jul 22 - Jun 23 $107.31 $109.12 $111.43 $113.95 $116.18 $132.66 $136.70 $118.81 Total 3 Yr $96.78 $97.53 $99.60 $100.95 $101.92 $113.91 $116.35 $104.22 Source: STR, Compiled by Pinnacle Advisor)/ Group Pinnacle Advisory Group Page 76 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY Proposed New Supply During the course of our fieldwork, we contacted local developers, corporate franchise contacts, and planning representatives to ascertain the status of any on-going or proposed hotel developments. These interviews were further augmented by our interviews with management of the competitive properties. The proposed hotels which we have considered in our analysis are those which were either confirmed or highly likely to move forward and which would compete to varying degrees for demand with the Proposed Hotel. • A 165-key dual brand Fairfield Inn & Suites / Residence Inn is proposed near the existing TownePlace Suites in Liverpool (Clay), approximately 6.5 miles from the subject. Timing is uncertain. • An 80-key TownePlace Suites is proposed adjacent to St Joseph Medical Center, 3.5 miles from the proposed hotel site. Financing and incentives are uncertain. • Preliminary discussions are being made for a 120-key Element by Westin hotel next to the Aloft in Syracuse Inner Harbor, three miles from the proposed hotel site. Element is Marriott's wellness focused brand, with full kitchens. Financing and timing are uncertain. As these projects are all uncertain, in projecting the future market occupancy for the selected competitive set, we have only included the Proposed Hotel as new supply. Other hotels could open during our projection period. Should this take place, it could negatively impact the market and the projections for the Proposed Hotel. Market Segmentation Hotel room night demand in the subject market is comprised of demand from four primary segments: corporate transient, group, leisure, and extended stay. Based on conversations with management, brand representatives, and our analytical review, we have estimated the competitive set demand mix from 2017 to 2022. In 2022, leisure was the competitive set's largest demand segment representing approximately 39% of total demand. Corporate demand was 26% and extended stay made up 25%. The smallest segment was group, approximately 9% of total demand. This is reasonable as the majority of the competitive set are limited-service hotels which do not have facilities for group meetings. The competitive set has experienced a slight shift in demand mix due to the dynamics of the pandemic and its recovery. In 2020, the country was mostly closed to recreational travel, offices were closed with many working remotely, and group travel and meetings/events were restricted. Hotel demand shifted to extended stay with demand from nurses, construction crews, Air National Guard, and other first responders. As the recovery began in 2021, pent up leisure demand emerged and made up the majority of the market's demand. Corporate and group demand have been slower to recover. Diverse Demand Drivers The Syracuse lodging market benefits from a diverse range of demand drivers consisting of education, healthcare, leisure, corporate, and emerging tech. Syracuse draws visitors from nearby Rochester (85 miles west), Albany (135 miles southeast) and Utica (50 miles east), as well as other major cities nationally. Syracuse University is a significant demand driver for the city with over 23,000 students and 5,000 employees. Upstate Medical University Health System is the region's largest employer with approximately 10,000 employees, which serves Syracuse and other major cities throughout the center of the state. The New York State Fair is another demand driver that attracts millions of people to Syracuse every year for the 13-day spectacle of events and entertainment. Syracuse's mix of its downtown business corridor, Proposed New Supply During the course of our fieldwork, we contacted local developers, corporate franchise contacts, and planning representatives to ascertain the status of any on-going or proposed hotel developments. These interviews were further augmented by our interviews with management of the competitive properties. The proposed hotels which we have considered in our analysis are those which were either confirmed or highly likely to move forward and which would compete to varying degrees for demand with the Proposed Hotel. • A 165-key dual brand Fairfield Inn & Suites / Residence Inn is proposed near the existing TownePlace Suites in Liverpool (Clay), approximately 6.5 miles from the subject. Timing is uncertain. • An 80-key TownePlace Suites is proposed adjacent to St Joseph Medical Center, 3.5 miles from the proposed hotel site. Financing and incentives are uncertain. • Preliminary discussions are being made for a 120-key Element by Westin hotel next to the Aloft in Syracuse Inner Harbor, three miles from the proposed hotel site. Element is Marriott's wellness focused brand, with full kitchens. Financing and timing are uncertain. As these projects are all uncertain, in projecting the future market occupancy for the selected competitive set, we have only included the Proposed Hotel as new supply. Other hotels could open during our projection period. Should this take place, it could negatively impact the market and the projections for the Proposed Hotel. Market Segmentation Hotel room night demand in the subject market is comprised of demand from four primary segments: corporate transient, group, leisure, and extended stay. Based on conversations with management, brand representatives, and our analytical review, we have estimated the competitive set demand mix from 2017 to 2022. In 2022, leisure was the competitive set's largest demand segment representing approximately 39% of total demand. Corporate demand was 26% and extended stay made up 25%. The smallest segment was group, approximately 9% of total demand. This is reasonable as the majority of the competitive set are limited-service hotels which do not have facilities for group meetings. The competitive set has experienced a slight shift in demand mix due to the dynamics of the pandemic and its recovery. In 2020, the country was mostly closed to recreational travel, offices were closed with many working remotely, and group travel and meetings/events were restricted. Hotel demand shifted to extended stay with demand from nurses, construction crews, Air National Guard, and other first responders. As the recovery began in 2021, pent up leisure demand emerged and made up the majority of the market's demand. Corporate and group demand have been slower to recover. Diverse Demand Drivers The Syracuse lodging market benefits from a diverse range of demand drivers consisting of education, healthcare, leisure, corporate, and emerging tech. Syracuse draws visitors from nearby Rochester (85 miles west), Albany (135 miles southeast) and Utica (50 miles east), as well as other major cities nationally. Syracuse University is a significant demand driver for the city with over 23,000 students and 5,000 employees. Upstate Medical University Health System is the region's largest employer with approximately 10,000 employees, which serves Syracuse and other major cities throughout the center of the state. The New York State Fair is another demand driver that attracts millions of people to Syracuse every year for the 13-day spectacle of events and entertainment. Syracuse's mix of its downtown business corridor, Pinnacle Advisory Group Page 77 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY sports venues, historic museums, art galleries and outdoor activities complement the city's medical, commercial, and industrial centers, as well as the lodging market. Corporate Demand Corporate travelers are generally less rate sensitive and represent a desirable market that provides consistent demand at relatively high room rates. In addition to location considerations, primary selection criteria of individual corporate demand in the competitive market include proximity to their offices, high service expectations, quality of facilities and price/value. Corporate demand is comprised of business executives visiting their respective offices, traveling consultants and salespeople, and employees traveling for training purposes. Demand timing for this segment occurs Monday through Thursday, with the most frequent arrival days being Tuesday and Wednesday. The transient corporate segment accounted for 26% of total accommodated demand in 2022, equating to approximately 57,000 room nights. Demand from the transient corporate business traveler is often characterized by the following: • High degree of single occupancy • Average length of stay typically one to three nights • Efficient check-in / check-out procedures required • Frequently book rooms via the Internet • Seek high level of service and quality of facility • Require proximity to place of business and accessibility to major transportation routes Although the slowest segment to recover, we have projected corporate demand to increase 1% annually before stabilizing in fiscal year 2028. Based on our projected growth rates, we have projected the corporate segment to stabilize at approximately 61,000 room nights, approximately 8% greater than 2022 levels. Group Demand Group/meeting demand in the competitive market is comprised primarily of rooms-only groups, such as sports related (tournaments) and social groups (weddings, reunions, etc.). The group segment represented the smallest demand segment in the competitive set as many of the hotels in the market rely on higher rated transient demand and most have very limited amounts of meeting event space as select service hotels. In 2022, the group segment accounted for 9% of total accommodated demand, equating to approximately 19,000 room nights. As outlined previously, group demand has been negatively impacted by the pandemic. The group segment can be characterized by the following: • Require discounted room rates when compared to transient rates • Prefer being proximate to tourist destinations • Variety of room configuration required We have projected a slow and steady recovery in the group segment. We have projected group demand to increase 1% ??in fiscal year 2024 and 1%?? in fiscal year 2025 before stabilizing in fiscal year 2026. Based on our projected growth rates, we have projected the group segment to stabilize at approximately 21,000 room nights, approximately 11% higher than in 2022. Pinnacle Advisory Group Page 77 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY sports venues, historic museums, art galleries and outdoor activities complement the city's medical, commercial, and industrial centers, as well as the lodging market. Corporate Demand Corporate travelers are generally less rate sensitive and represent a desirable market that provides consistent demand at relatively high room rates. In addition to location considerations, primary selection criteria of individual corporate demand in the competitive market include proximity to their offices, high service expectations, quality of facilities and price/value. Corporate demand is comprised of business executives visiting their respective offices, traveling consultants and salespeople, and employees traveling for training purposes. Demand timing for this segment occurs Monday through Thursday, with the most frequent arrival days being Tuesday and Wednesday. The transient corporate segment accounted for 26% of total accommodated demand in 2022, equating to approximately 57,000 room nights. Demand from the transient corporate business traveler is often characterized by the following: • High degree of single occupancy • Average length of stay typically one to three nights • Efficient check-in / check-out procedures required • Frequently book rooms via the Internet • Seek high level of service and quality of facility • Require proximity to place of business and accessibility to major transportation routes Although the slowest segment to recover, we have projected corporate demand to increase 1% annually before stabilizing in fiscal year 2028. Based on our projected growth rates, we have projected the corporate segment to stabilize at approximately 61,000 room nights, approximately 8% greater than 2022 levels. Group Demand Group/meeting demand in the competitive market is comprised primarily of rooms-only groups, such as sports related (tournaments) and social groups (weddings, reunions, etc.). The group segment represented the smallest demand segment in the competitive set as many of the hotels in the market rely on higher rated transient demand and most have very limited amounts of meeting event space as select service hotels. In 2022, the group segment accounted for 9% of total accommodated demand, equating to approximately 19,000 room nights. As outlined previously, group demand has been negatively impacted by the pandemic. The group segment can be characterized by the following: • Require discounted room rates when compared to transient rates • Prefer being proximate to tourist destinations • Variety of room configuration required We have projected a slow and steady recovery in the group segment. We have projected group demand to increase 1% ??in fiscal year 2024 and 1%?? in fiscal year 2025 before stabilizing in fiscal year 2026. Based on our projected growth rates, we have projected the group segment to stabilize at approximately 21,000 room nights, approximately 11% higher than in 2022. Pinnacle Advisory Group Page 78 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY Leisure Demand In 2022, the leisure segment accounted for 39% of total accommodated demand, equating to approximately 72,000 room nights. As outlined previously, leisure demand was negatively impacted by the pandemic but was fully recovered in 2022. Demand generated by the leisure traveler is often characterized by the following: • High incidence of weekend occupancy • Average length of stay one to two nights • Relatively high percentage of multiple occupancy • Strong demand typically occurs during summer/fall months and holiday periods As presented previously, the leisure segment experienced a significant amount of growth in 2021 and 2022. For this reason, we do not believe the growth rates are sustainable. We have projected leisure demand to decrease 4% in fiscal year 2024 as the current leisure demand levels are not sustainable over the long term given much of it is pent-up from the pandemic, includes a significant amount of rewards travel which is not endless, matched with the slowing economy and high inflationary rates. We have projected the segment to increase 1% per fiscal year thereafter, stabilizing at approximately 87,000 room nights, about 21% higher than its 2022 levels. Extended Stay Demand Extended stay demand in the competitive market is comprised primarily of consultants, film crews, and construction crews as well as demand generated by temporarily displaced homeowners and renters. The extended stay segment has historically represented a strong demand segment in the competitive set as the extended stay supply is a significant portion of the overall set. In 2022, the extended stay segment accounted for 25% of total accommodated demand, equating to approximately 55,000 room nights. The extended stay segment can be characterized by the following: • Require discounted room rates when compared to transient rates • Prefer being proximate to corporate drivers • Quality food and beverage service preferred, especially complimentary breakfast • Suite style rooms with kitchens preferred Based on the trends exhibited by the extended stay segment and its direct connection to corporate travel, we have projected slow and steady growth in the segment. We have projected the extended stay demand to decrease 4% in fiscal year 2024 then grow 1% annually thereafter. Based on our projected growth rates, we expect this segment to stabilize at 58,000 room nights, approximately 5% higher than 2022 levels. Extraordinary (induced) Demand Extraordinary/Induced demand is defined as the incremental demand stimulated by the introduction of new supply, in excess of demand changes caused by external economic conditions. In other words, the introduction of a new hotel in a market can increase overall demand due to the capability of the market to capture additional demand on otherwise sold out nights, or due to the specific facilities or marketing efforts of one particular property. We have assumed the proposed hotel will induce new and unmet Pinnacle Advisory Group Page 78 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY Leisure Demand In 2022, the leisure segment accounted for 39% of total accommodated demand, equating to approximately 72,000 room nights. As outlined previously, leisure demand was negatively impacted by the pandemic but was fully recovered in 2022. Demand generated by the leisure traveler is often characterized by the following: • High incidence of weekend occupancy • Average length of stay one to two nights • Relatively high percentage of multiple occupancy • Strong demand typically occurs during summer/fall months and holiday periods As presented previously, the leisure segment experienced a significant amount of growth in 2021 and 2022. For this reason, we do not believe the growth rates are sustainable. We have projected leisure demand to decrease 4% in fiscal year 2024 as the current leisure demand levels are not sustainable over the long term given much of it is pent-up from the pandemic, includes a significant amount of rewards travel which is not endless, matched with the slowing economy and high inflationary rates. We have projected the segment to increase 1% per fiscal year thereafter, stabilizing at approximately 87,000 room nights, about 21% higher than its 2022 levels. Extended Stay Demand Extended stay demand in the competitive market is comprised primarily of consultants, film crews, and construction crews as well as demand generated by temporarily displaced homeowners and renters. The extended stay segment has historically represented a strong demand segment in the competitive set as the extended stay supply is a significant portion of the overall set. In 2022, the extended stay segment accounted for 25% of total accommodated demand, equating to approximately 55,000 room nights. The extended stay segment can be characterized by the following: • Require discounted room rates when compared to transient rates • Prefer being proximate to corporate drivers • Quality food and beverage service preferred, especially complimentary breakfast • Suite style rooms with kitchens preferred Based on the trends exhibited by the extended stay segment and its direct connection to corporate travel, we have projected slow and steady growth in the segment. We have projected the extended stay demand to decrease 4% in fiscal year 2024 then grow 1% annually thereafter. Based on our projected growth rates, we expect this segment to stabilize at 58,000 room nights, approximately 5% higher than 2022 levels. Extraordinary (induced) Demand Extraordinary/Induced demand is defined as the incremental demand stimulated by the introduction of new supply, in excess of demand changes caused by external economic conditions. In other words, the introduction of a new hotel in a market can increase overall demand due to the capability of the market to capture additional demand on otherwise sold out nights, or due to the specific facilities or marketing efforts of one particular property. We have assumed the proposed hotel will induce new and unmet Pinnacle Advisory Group Page 79 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY demand into the market given the strong performance of the two new properties that have been absorbed over the past five years. The concept of extraordinary (induced) demand can be summarized as situations in which supply creates demand. In other words, the opening of a property may accommodate demand which previously did not visit the market due to inadequate accommodations, or the unavailability of a branded product to which they are loyal. Potential induced demand for situations involving new supply can be estimated by evaluating the subject market's historical performance when a similar situation occurred; reviewing the performance of a comparable market when a similar situation occurred; interviewing potential users of the new facility; and/or examining the contribution that comes from either a central reservation system, or national sales network. Additionally, capacity constraints that exist within a defined market afford the opportunity for the re-introduction of accommodated demand into the market when new supply is added to the market's inventory. We have included induced demand from the Proposed Hotel. After considering previously unaccommodated demand due to sell-out nights as well as new demand that would be generated as a result of a new, unique hotel product (a mid-priced extended stay hotel), we have induced approximately 10,900 room nights into the market. As shown previously, the competitive set historically absorbed new supply largely as a result of induced demand. Based on our review of the historic supply and demand trends we believe this projection is reasonable. Market Demand Summary The following table summarizes our market demand projections. Pinnacle Advisory Group Page 79 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY demand into the market given the strong performance of the two new properties that have been absorbed over the past five years. The concept of extraordinary (induced) demand can be summarized as situations in which supply creates demand. In other words, the opening of a property may accommodate demand which previously did not visit the market due to inadequate accommodations, or the unavailability of a branded product to which they are loyal. Potential induced demand for situations involving new supply can be estimated by evaluating the subject market's historical performance when a similar situation occurred; reviewing the performance of a comparable market when a similar situation occurred; interviewing potential users of the new facility; and/or examining the contribution that comes from either a central reservation system, or national sales network. Additionally, capacity constraints that exist within a defined market afford the opportunity for the re-introduction of accommodated demand into the market when new supply is added to the market's inventory. We have included induced demand from the Proposed Hotel. After considering previously unaccommodated demand due to sell-out nights as well as new demand that would be generated as a result of a new, unique hotel product (a mid-priced extended stay hotel), we have induced approximately 10,900 room nights into the market. As shown previously, the competitive set historically absorbed new supply largely as a result of induced demand. Based on our review of the historic supply and demand trends we believe this projection is reasonable. Market Demand Summary The following table summarizes our market demand projections. Projected Supply and Demand, Competitive Market Year Annual Supply % Change Annual Demand % Change Occupancy 2022 Historical 290,175 215,086 74.1% 2024 290,175 0.0% 208,959 -2.8% 72% 2025 290,175 0.0% 208,959 0.0% 72% 2026 330,325 13.8% 219,744 5.2% 67% 2027 330,325 0.0% 224,115 2.0% 68% 2028 330,325 0.0% 226,357 1.0% 69% 2029 330,325 0.0% 226,357 0.0% 69% 2030 330,325 0.0% 226,357 0.0% 69% CAGR 2022 to 2030 1.6% 0.6% 2022 represents the last historical calendar year of data. Projection years are Fiscal Years ending September 30. Changes to supply include the addition of the Proposed Hotel (110 rooms) in October 2025. Source: Pinnacle Advisory Group Projected Supply and Demand, Competitive Market Year Annual Supply % Change Annual Demand % Change Occupancy 2022 Historical 290,175 215,086 74.1% 2024 290,175 0.0% 208,959 -2.8% 72% 2025 290,175 0.0% 208,959 0.0% 72% 2026 330,325 13.8% 219,744 5.2% 67% 2027 330,325 0.0% 224,115 2.0% 68% 2028 330,325 0.0% 226,357 1.0% 69% 2029 330,325 0.0% 226,357 0.0% 69% 2030 330,325 0.0% 226,357 0.0% 69% CAGR 2022 to 2030 1.6% 0.6% 2022 represents the last historical calendar year of data. Projection years are Fiscal Years ending September 30. Changes to supply include the addition of the Proposed Hotel (110 rooms) in October 2025. Source: Pinnacle Advisory Group We believe that the current trend of softening occupancy, particularly in Leisure demand, will continue in the short term, resulting in Fiscal Year 2024 competitive set occupancy down 2% points, at 72%. The components of the projected competitive market demand are shown in the table below. Pinnacle Advisory Group Page 80 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY We believe that the current trend of softening occupancy, particularly in Leisure demand, will continue in the short term, resulting in Fiscal Year 2024 competitive set occupancy down 2% points, at 72%. The components of the projected competitive market demand are shown in the table below. Pinnacle Advisory Group Page 80 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY Market Demand Projection Core Demand Projection 2024 2025 2026 2027 2028 2029 2030 Corporate -1.0% 0.0% 1.0% 1.0% 1.0% 0.0% 0.0% Group 0.0% 0.0% 1.0% 1.0% 1.0% 0.0% 0.0% Leisure -4.0% 0.0% 1.0% 1.0% 1.0% 0.0% 0.0% Ext Stay -4.0% 0.0% 1.0% 1.0% 1.0% 0.0% 0.0% Extraordinary Demand Corporate 0 0 2,600 700 0 0 0 Group 0 0 900 200 0 0 0 Leisure 0 0 2,600 700 0 0 0 Ext Stay 0 0 2,600 700 0 0 0 Total 0 0 8,696 2,174 0 0 0 Projected Demand Change -2.8% 0.0% 5.2% 2.0% 1.0% 0.0% 0.0% Projected Market Roomnights Corporate 56,300 56,300 59,400 60,700 61,300 61,300 61,300 Group 19,300 19,300 20,400 20,800 21,000 21,000 21,000 Leisure 80,900 80,900 84,400 85,900 86,700 86,700 86,700 Ext Stay 52,500 52,500 55,600 56,800 57,400 57,400 57,400 Total 209,000 209,000 219,800 224,200 226,400 226,400 226,400 Market Occupancy 72% 72% 67% 68% 69% 69% 69% Supply Change % 0.0% 0.0% 13.8% 0.0% 0.0% 0.0% 0.0% * Roomnights rounded to the nearest hundred. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group Market Demand Projection Core Demand Projection 2024 2025 2026 2027 2028 2029 2030 Corporate -1.0% 0.0% 1.0% 1.0% 1.0% 0.0% 0.0% Group 0.0% 0.0% 1.0% 1.0% 1.0% 0.0% 0.0% Leisure -4.0% 0.0% 1.0% 1.0% 1.0% 0.0% 0.0% Ext Stay -4.0% 0.0% 1.0% 1.0% 1.0% 0.0% 0.0% Extraordinary Demand Corporate 0 0 2,600 700 0 0 0 Group 0 0 900 200 0 0 0 Leisure 0 0 2,600 700 0 0 0 Ext Stay 0 0 2,600 700 0 0 0 Total 0 0 8,696 2,174 0 0 0 Projected Demand Change -2.8% 0.0% 5.2% 2.0% 1.0% 0.0% 0.0% Projected Market Roomnights Corporate 56,300 56,300 59,400 60,700 61,300 61,300 61,300 Group 19,300 19,300 20,400 20,800 21,000 21,000 21,000 Leisure 80,900 80,900 84,400 85,900 86,700 86,700 86,700 Ext Stay 52,500 52,500 55,600 56,800 57,400 57,400 57,400 Total 209,000 209,000 219,800 224,200 226,400 226,400 226,400 Market Occupancy 72% 72% 67% 68% 69% 69% 69% Supply Change % 0.0% 0.0% 13.8% 0.0% 0.0% 0.0% 0.0% * Roomnights rounded to the nearest hundred. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group As illustrated in the table above, we believe that market occupancy will stabilize by the end of fiscal year 2028. In fiscal year 2026 the Proposed Hotel will open, increasing market supply 14%. We have projected market demand to be stable while inducing new demand into the market with the opening of the Proposed Hotel; we have projected demand to increase 5% in the fiscal year 2026, however the market will dip to 67% occupancy. With no new supply in the fiscal year 2027 or 2028, we have projected the trend in demand growth to continue at a moderate pace, restabilizing occupancy at 69% in fiscal year 2028, two points above its historic average of 67% (excluding the pandemic years of 2020 and 2023). The stabilized market occupancy for the primary set will likely be in the low 70's. The stabilized occupancy is intended to reflect the anticipated results of the competitive set over the holding period, given any changes in the competitive environment and/or local economy. Although it is possible that the market will achieve occupancies above this stabilized level, we believe that it is equally possible for new competition and temporary downturns in hotel demand to force occupancy below this selected point of stability. Pinnacle Advisory Group Page 81 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY As illustrated in the table above, we believe that market occupancy will stabilize by the end of fiscal year 2028. In fiscal year 2026 the Proposed Hotel will open, increasing market supply 14%. We have projected market demand to be stable while inducing new demand into the market with the opening of the Proposed Hotel; we have projected demand to increase 5% in the fiscal year 2026, however the market will dip to 67% occupancy. With no new supply in the fiscal year 2027 or 2028, we have projected the trend in demand growth to continue at a moderate pace, restabilizing occupancy at 69% in fiscal year 2028, two points above its historic average of 67% (excluding the pandemic years of 2020 and 2023). The stabilized market occupancy for the primary set will likely be in the low 70's. The stabilized occupancy is intended to reflect the anticipated results of the competitive set over the holding period, given any changes in the competitive environment and/or local economy. Although it is possible that the market will achieve occupancies above this stabilized level, we believe that it is equally possible for new competition and temporary downturns in hotel demand to force occupancy below this selected point of stability. Pinnacle Advisory Group Page 81 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY PROJECTED PERFORMANCE Proposed Hotel - Projected Occupancy The extent to which the Proposed Hotel can capture demand in each of the previously mentioned demand segments was estimated by performing a fair share/penetration analysis based upon the competitive status of the hotel. Factors considered in this penetration analysis include the location, concept of the property, quality of the facilities, rate structure, and historic penetration levels. Within a defined market, if all properties had an equal competitive posture, a hotel's market penetration would correlate to the ratio of its guestrooms relative to the overall supply. Factors indicating a hotel would possess competitive advantages suggest a market penetration rate in excess of 100 percent of fair share, while competitive weaknesses are reflected in penetration rates of less than 100 percent. The Proposed hotel will be newly constructed and for this reason, we have assumed that the Proposed Hotel's facilities and overall quality will be considered superior to all of the properties in the competitive set. Additionally, although the Proposed Hotel will be an upper-midscale extended stay hotel, and branded similarly to two hotels in the set, the Proposed Hotel's positioning within the market with a well- known, proven brand, will help it to capture more than its fair share of the market. The following table illustrates our estimates of the Proposed Hotel's segmented penetration rates from fiscal year 2026 through 2030. PROJECTED PERFORMANCE Proposed Hotel - Projected Occupancy The extent to which the Proposed Hotel can capture demand in each of the previously mentioned demand segments was estimated by performing a fair share/penetration analysis based upon the competitive status of the hotel. Factors considered in this penetration analysis include the location, concept of the property, quality of the facilities, rate structure, and historic penetration levels. Within a defined market, if all properties had an equal competitive posture, a hotel's market penetration would correlate to the ratio of its guestrooms relative to the overall supply. Factors indicating a hotel would possess competitive advantages suggest a market penetration rate in excess of 100 percent of fair share, while competitive weaknesses are reflected in penetration rates of less than 100 percent. The Proposed hotel will be newly constructed and for this reason, we have assumed that the Proposed Hotel's facilities and overall quality will be considered superior to all of the properties in the competitive set. Additionally, although the Proposed Hotel will be an upper-midscale extended stay hotel, and branded similarly to two hotels in the set, the Proposed Hotel's positioning within the market with a well- known, proven brand, will help it to capture more than its fair share of the market. The following table illustrates our estimates of the Proposed Hotel's segmented penetration rates from fiscal year 2026 through 2030. Projected Penetration and Market Mix Roomnights 2026 2027 2028 2029 2030 Corporate 7,900 8,100 8,200 8,200 8,200 Group 1,700 1,800 1,800 1,800 1,800 Leisure 11,800 12,500 12,600 12,600 12,600 Ext Stay 6,100 6,900 7,000 7,000 7,000 Total 27,500 29,300 29,600 29,600 29,600 Penetration 2026 2027 2028 2029 2030 Corporate 110% 110% 110% 110% 110% Group 70% 70% 70% 70% 70% Leisure 115% 120% 120% 120% 120% Ext Stay 90% 100% 100% 100% 100% Total 103% 108% 108% 108% 108% Market Mix 2026 2027 2028 2029 2030 Corporate 29% 28% 28% 28% 28% Group 6% 6% 6% 6% 6% Leisure 43% 43% 43% 43% 43% Ext Stay 22% 24% 24% 24% 24% Total 100% 100% 100% 100% 100% Market Occupancy 67% 68% 69% 69% 69% Subject Occupancy 69% 73% 74% 74% 74% * Roomnights rounded to the nearest hundred. Assumes Proposed Hotel opens October 1, 2025 as a 110-room Home2 Suites. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group Projected Penetration and Market Mix Roomnights 2026 2027 2028 2029 2030 Corporate 7,900 8,100 8,200 8,200 8,200 Group 1,700 1,800 1,800 1,800 1,800 Leisure 11,800 12,500 12,600 12,600 12,600 Ext Stay 6,100 6,900 7,000 7,000 7,000 Total 27,500 29,300 29,600 29,600 29,600 Penetration 2026 2027 2028 2029 2030 Corporate 110% 110% 110% 110% 110% Group 70% 70% 70% 70% 70% Leisure 115% 120% 120% 120% 120% Ext Stay 90% 100% 100% 100% 100% Total 103% 108% 108% 108% 108% Market Mix 2026 2027 2028 2029 2030 Corporate 29% 28% 28% 28% 28% Group 6% 6% 6% 6% 6% Leisure 43% 43% 43% 43% 43% Ext Stay 22% 24% 24% 24% 24% Total 100% 100% 100% 100% 100% Market Occupancy 67% 68% 69% 69% 69% Subject Occupancy 69% 73% 74% 74% 74% * Roomnights rounded to the nearest hundred. Assumes Proposed Hotel opens October 1, 2025 as a 110-room Home2 Suites. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group Pinnacle Advisory Group Page 82 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY In the corporate segment, we have projected 110% penetration in year one and thereafter, and the capture of 8,200 room nights of corporate demand upon stabilization. This is supported by the strength of the Hilton marketing / reservation system. The Proposed Hotel will not offer meeting space and as such, will attract "rooms-only' groups such as social or sports groups with events at nearby facilities. As a result, we have projected group penetration to be 70% in all years. Based on these penetration rates, we have projected the Proposed Hotel to accommodate approximately 1,800 group room nights upon stabilization. The Proposed Hotel will be well positioned to capture leisure demand during weekends and peak seasonal periods due to its location near the NYS Thruway and 1-81, and ease of access to tourism demand generators throughout the region. Additionally, as a Home2 Suites its facilities and rooms are well positioned to attract families or double occupancy with longer lengths of stay. We have projected leisure penetration rate of 115% in year one, ramping up to a stabilized 120% in year two. Accommodating approximately 12,600 leisure room nights upon stabilization is reasonable when compared to the existing set of hotels and their segmentation while considering the different characteristics of the Proposed Hotel. The Proposed Hotel will be well positioned to capture extended stay demand due to its location near both the Thruway and 1-81, allowing easy access to all parts of Greater Syracuse. We believe that film crews, construction crews, government workers, and international visitors to Lockheed Martin will utilize the Proposed Hotel for long term stays. We have projected extended stay penetration rate of 90% in year one, ramping up to a stabilized 100% in year two. Accommodating approximately 7,000 room nights upon stabilization is reasonable when compared to the existing set of hotels and their segmentation while considering the characteristics of the Proposed Hotel. After considering the Proposed Hotel's anticipated market position and estimated level of patronage by market segment, the Proposed Hotel is forecasted to achieve an overall penetration level of 103% in year one, and 108% in year two and thereafter. Given the strong brand affiliation and the recovering market, we believe a three year ramp up period is reasonable for the Proposed Hotel. The stabilized penetration and occupancy levels reflect the anticipated results of the property over its lifetime, given any and all modifications in its life cycle. Therefore, the stabilized occupancy excludes from consideration any abnormal supply and demand circumstances, as well as any favorable or unfavorable non-recurring conditions that may result in atypically high or low occupancies. Although the Proposed Hotel may exceed this stabilized occupancy level, it is equally possible for new competition and temporary economic downturns to cause the Proposed Hotel's occupancy to perform below this selected stabilization level as well. Proposed Hotel - Projected Average Rate As an upper midscale branded extended stay hotel, the Proposed Hotel is advantageously positioned in the competitive market. In analyzing the ADRs achieved by the individual hotels within the competitive market in 2022, we positioned the Proposed Hotel at $133 (in 2022 dollars). We compared the published 2022 US Average ADR for mature hotels per the 2023 Franchise Disclosure Documents (FDD) for each of the Hilton branded properties in the comp set and positioned the Proposed Hotel Home2 Suites ADR accordingly. We have projected the Proposed Hotel to have a corporate rate of $130, a group rate of $125, and a leisure rate of $145. Lastly, we have projected extended stay rate to be $118. Pinnacle Advisory Group Page 82 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY In the corporate segment, we have projected 110% penetration in year one and thereafter, and the capture of 8,200 room nights of corporate demand upon stabilization. This is supported by the strength of the Hilton marketing / reservation system. The Proposed Hotel will not offer meeting space and as such, will attract "rooms-only' groups such as social or sports groups with events at nearby facilities. As a result, we have projected group penetration to be 70% in all years. Based on these penetration rates, we have projected the Proposed Hotel to accommodate approximately 1,800 group room nights upon stabilization. The Proposed Hotel will be well positioned to capture leisure demand during weekends and peak seasonal periods due to its location near the NYS Thruway and 1-81, and ease of access to tourism demand generators throughout the region. Additionally, as a Home2 Suites its facilities and rooms are well positioned to attract families or double occupancy with longer lengths of stay. We have projected leisure penetration rate of 115% in year one, ramping up to a stabilized 120% in year two. Accommodating approximately 12,600 leisure room nights upon stabilization is reasonable when compared to the existing set of hotels and their segmentation while considering the different characteristics of the Proposed Hotel. The Proposed Hotel will be well positioned to capture extended stay demand due to its location near both the Thruway and 1-81, allowing easy access to all parts of Greater Syracuse. We believe that film crews, construction crews, government workers, and international visitors to Lockheed Martin will utilize the Proposed Hotel for long term stays. We have projected extended stay penetration rate of 90% in year one, ramping up to a stabilized 100% in year two. Accommodating approximately 7,000 room nights upon stabilization is reasonable when compared to the existing set of hotels and their segmentation while considering the characteristics of the Proposed Hotel. After considering the Proposed Hotel's anticipated market position and estimated level of patronage by market segment, the Proposed Hotel is forecasted to achieve an overall penetration level of 103% in year one, and 108% in year two and thereafter. Given the strong brand affiliation and the recovering market, we believe a three year ramp up period is reasonable for the Proposed Hotel. The stabilized penetration and occupancy levels reflect the anticipated results of the property over its lifetime, given any and all modifications in its life cycle. Therefore, the stabilized occupancy excludes from consideration any abnormal supply and demand circumstances, as well as any favorable or unfavorable non-recurring conditions that may result in atypically high or low occupancies. Although the Proposed Hotel may exceed this stabilized occupancy level, it is equally possible for new competition and temporary economic downturns to cause the Proposed Hotel's occupancy to perform below this selected stabilization level as well. Proposed Hotel - Projected Average Rate As an upper midscale branded extended stay hotel, the Proposed Hotel is advantageously positioned in the competitive market. In analyzing the ADRs achieved by the individual hotels within the competitive market in 2022, we positioned the Proposed Hotel at $133 (in 2022 dollars). We compared the published 2022 US Average ADR for mature hotels per the 2023 Franchise Disclosure Documents (FDD) for each of the Hilton branded properties in the comp set and positioned the Proposed Hotel Home2 Suites ADR accordingly. We have projected the Proposed Hotel to have a corporate rate of $130, a group rate of $125, and a leisure rate of $145. Lastly, we have projected extended stay rate to be $118. Pinnacle Advisory Group Page 83 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY We then applied our market rate growth to these base rates, applying a slight discount to years one and two to account for the hotel's ramp up. Based on this positioning, the Proposed Hotel is projected to have a stabilized ADR index of 118%. Given the Proposed Hotel's offering as a Home2 Suites, we believe the hotel will be able to compete directly with the competitive set from the outset. When considering its room count, brand affiliation, and demand mix compared to its competitive set, we believe this ADR index is reasonable. Based on our segmented rates and the projected annual growth rates, we have projected that the Proposed Hotel achieves an ADR of $151 in year one of operation. Pinnacle Advisory Group Page 83 of 107 PROJECTED PERFORMANCE Proposed Home2 Suites — Liverpool NY We then applied our market rate growth to these base rates, applying a slight discount to years one and two to account for the hotel's ramp up. Based on this positioning, the Proposed Hotel is projected to have a stabilized ADR index of 118%. Given the Proposed Hotel's offering as a Home2 Suites, we believe the hotel will be able to compete directly with the competitive set from the outset. When considering its room count, brand affiliation, and demand mix compared to its competitive set, we believe this ADR index is reasonable. Based on our segmented rates and the projected annual growth rates, we have projected that the Proposed Hotel achieves an ADR of $151 in year one of operation. Projected Average Daily Rate Projected Historic Rate Rate Rate of Change 2022 Historical $133.28 2026 $150.56 12.97% 2027 $154.87 2.86% 2028 $159.52 3.00% 2029 $164.30 3.00% 2030 $169.23 3.00% Assumes Proposed Hotel opens October 1, 2025 as a 110-room Home2 Suites. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group Conclusion The table below summarizes the Proposed Hotel's projected performance, on an annual basis, for its first five years of operation. Projected Average Daily Rate Projected Historic Rate Rate Rate of Change 2022 Historical $133.28 2026 $150.56 12.97% 2027 $154.87 2.86% 2028 $159.52 3.00% 2029 $164.30 3.00% 2030 $169.23 3.00% Assumes Proposed Hotel opens October 1, 2025 as a 110-room Home2 Suites. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group Conclusion The table below summarizes the Proposed Hotel's projected performance, on an annual basis, for its first five years of operation. Projection of Occupancy, ADR, RevPAR and Room Revenue for Proposed Hotel Year Occupancy ADR % Change RevPAR % Change Rm Revenue 2026 69% $150.56 $103.32 4,140,000 2027 73% $154.87 2.9% $113.05 9.4% 4,530,000 2028 74% $159.52 3.0% $117.61 4.0% 4,720,000 2029 74% $164.30 3.0% $121.14 3.0% 4,860,000 2030 74% $169.23 3.0% $124.77 3.0% 5,000,000 Assumes Proposed Hotel opens October 1, 2025 as a 110-room Home2 Suites. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group Projection of Occupancy, ADR, RevPAR and Room Revenue for Proposed Hotel Year Occupancy ADR % Change RevPAR % Change Rm Revenue 2026 69% $150.56 $103.32 4,140,000 2027 73% $154.87 2.9% $113.05 9.4% 4,530,000 2028 74% $159.52 3.0% $117.61 4.0% 4,720,000 2029 74% $164.30 3.0% $121.14 3.0% 4,860,000 2030 74% $169.23 3.0% $124.77 3.0% 5,000,000 Assumes Proposed Hotel opens October 1, 2025 as a 110-room Home2 Suites. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group Projected Indices Year Occ Index ADR Index RevPAR Index 2026 103% 118% 121% 2027 108% 117% 126% 2028 108% 117% 126% 2029 108% 117% 126% 2030 108% 117% 126% Assumes Proposed Hotel opens October 1, 2025 as a 110-room Home2 Suites. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group Pinnacle Advisory Group Page 84 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY Projected Indices Year Occ Index ADR Index RevPAR Index 2026 103% 118% 121% 2027 108% 117% 126% 2028 108% 117% 126% 2029 108% 117% 126% 2030 108% 117% 126% Assumes Proposed Hotel opens October 1, 2025 as a 110-room Home2 Suites. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group Pinnacle Advisory Group Page 84 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY PROJECTED FINANCIAL PERFORMANCE Using our estimates of annual occupancies and average daily rates for the Proposed Hotel, coupled with our assumptions and recommendations regarding level of service and facilities, we have estimated the potential revenues and expenses by department, through EBITDA less Replacement Reserve, for the property's first five years of operation. Our statement of estimated operating results can be found at the end of this section and is stated in inflated dollars in the format prescribed by the Uniform Systems of Accounts for hotels. The following text describes our rationale for each line item of the financial projections. Our revenue and expense projections are meant to mirror a market-based operation. Select management companies may perform differently in each of the operating departments, however our aggregate expense estimates are meant to capture our opinion for what the property will achieve. The financial projections presented herein are supported by the actual financial performance of comparable, branded hotels in central New York State and the northeastern United States. Comparable Hotel Operating Results and Industry Averages Data from the following sources were used as the basis for the income and expense assumptions in our financial projection for the Proposed Hotel: • Financial operating data from ten comparable operations with approximately 80 to 200 guestrooms. To assist in our analysis while maintaining the confidentiality of the comparable financial statements, we have presented the information of each hotel listed anonymously so as to protect the confidentiality of this data. These properties included existing limited-service, branded hotels, most of which operate as extended stay. • Additionally, we utilized a Benchmarker report which aggregated financial operating data for eight comparable properties in New England and the Mid Atlantic. The aggregate data has been presented as Comparable H. • Data from STR's 2023 HOST Report that provides data for year-end 2022. Rather than summarizing all categories studied, we present the data for suburban, limited service hotels in New England and Mid-Atlantic regions (similar to that of the Proposed Hotel). Term of Analysis In the case of the Proposed Hotel, a five-year projection period was prepared based on the request of The Client. In keeping with the data provided and the projected opening date (October 1, 2025), we have utilized fiscal years beginning October 1 and ending September 30 in developing our forecast for the five- year period. Inflation of Growth in Revenues and Expenses The base revenue and expense categories are inflated to reflect current dollars for each projection year. Each category for the various revenues and expenses can be affected by different types of inflation, PROJECTED FINANCIAL PERFORMANCE Using our estimates of annual occupancies and average daily rates for the Proposed Hotel, coupled with our assumptions and recommendations regarding level of service and facilities, we have estimated the potential revenues and expenses by department, through EBITDA less Replacement Reserve, for the property's first five years of operation. Our statement of estimated operating results can be found at the end of this section and is stated in inflated dollars in the format prescribed by the Uniform Systems of Accounts for hotels. The following text describes our rationale for each line item of the financial projections. Our revenue and expense projections are meant to mirror a market-based operation. Select management companies may perform differently in each of the operating departments, however our aggregate expense estimates are meant to capture our opinion for what the property will achieve. The financial projections presented herein are supported by the actual financial performance of comparable, branded hotels in central New York State and the northeastern United States. Comparable Hotel Operating Results and Industry Averages Data from the following sources were used as the basis for the income and expense assumptions in our financial projection for the Proposed Hotel: • Financial operating data from ten comparable operations with approximately 80 to 200 guestrooms. To assist in our analysis while maintaining the confidentiality of the comparable financial statements, we have presented the information of each hotel listed anonymously so as to protect the confidentiality of this data. These properties included existing limited-service, branded hotels, most of which operate as extended stay. • Additionally, we utilized a Benchmarker report which aggregated financial operating data for eight comparable properties in New England and the Mid Atlantic. The aggregate data has been presented as Comparable H. • Data from STR's 2023 HOST Report that provides data for year-end 2022. Rather than summarizing all categories studied, we present the data for suburban, limited service hotels in New England and Mid-Atlantic regions (similar to that of the Proposed Hotel). Term of Analysis In the case of the Proposed Hotel, a five-year projection period was prepared based on the request of The Client. In keeping with the data provided and the projected opening date (October 1, 2025), we have utilized fiscal years beginning October 1 and ending September 30 in developing our forecast for the five- year period. Inflation of Growth in Revenues and Expenses The base revenue and expense categories are inflated to reflect current dollars for each projection year. Each category for the various revenues and expenses can be affected by different types of inflation, Pinnacle Advisory Group Page 85 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY although a general rate of changes has been applied to most revenue and expense line items. The Federal Reserve has an inflation target of 2.0% Historical Consumer Price Index per year, and between 2010 and 2019, until COVID and supply chain for All Urban Consumers (CPI-U): disruptions, CPI was keeping close to that target, as shown to the right. U.S. City Average, All Items, Index The onset of the global pandemic in early 2020 caused significant Annual Percent disruption to the US and global economies. With significant impact to the YFAR Index Change supply chain, prices soared in 2021 and 2022. Inflation increases varied 2010 218.1 1.6% by category. For example, from December 2021 to December 2022, 2011 224.9 3.1% energy prices increased 7.3 percent, a quarter of the rate at which they increased from 2020 to 2021. Fuel oil prices increased 41.5 percent from 2012 229.6 2.1% 2021 to 2022, approximately the same increase as the previous year. 2013 233.0 1.5% Utility (piped) gas service prices increased 19.3 percent from 2021 to 2014 236.7 1.6% 2022, compared with 24.1 percent a year earlier. From 2021 to 2022, 2015 237.0 0.1% electricity prices increased 14.3 percent, over twice the rate at which they 2016 240.0 1.3% increased from 2020 to 2021. Gasoline prices decreased 1.5 percent after 2017 245.1 2.1% increasing 49.6 percent the previous year. 2018 251.1 2.4% Forecasters expect short-term inflation rates to exceed the historical 2019 255.7 1.8% average of 2.4%. According to recent data, the unadjusted index for 12 2020 258.8 1.2% months, ending June 2023, increased 3.0 percent, representing the 2021 271.0 4.7% smallest 12-month increase since the period ending March 2021. 2022 292.7 8.0% According to the Federal Planning Bureau, average consumer price Average 2010-2019 1.8% inflation is expected to be 3.9% in 2023 and 3.4% in 2024. Average 2010-2022 2.4% Hotels and hospitality real estate are a labor-intensive business, highly Source: US Bureeau of Labor Statistic's _ sensitive to wage rate growth. On average, labor accounts for approximately 30% to 35% of total revenue. During the pandemic, many hospitality workers left the industry, and hotels in many markets were forced to offer higher wages to attract returning workers. The combination of higher wages due to a lack of employees willing to work in the hospitality sector, coupled with high inflation, have caused average hotel wages to increase faster than average wages throughout the general economy, according to the American Hotel and Lodging Association. Furthermore, other operating expenses impacted by high inflation such as food and beverage costs, insurance, and utilities have put additional pressure on hotel profits. Based on current CPI forecasts, we will use a long-term rate of 3.0% for projections of revenues and expenses to mirror what many hotel investors utilize for hotel financial projections. We deem this sufficient to reflect the near-term escalation with long-term moderation. There is one exception to the line items that deviate from this rate of growth in the context of this projection. The average daily room rate is projected based on historical trends and market trend projections, as outlined in the pervious sections of this report, rather than just on inflation. Pinnacle Advisory Group Page 85 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY although a general rate of changes has been applied to most revenue and expense line items. The Federal Reserve has an inflation target of 2.0% Historical Consumer Price Index per year, and between 2010 and 2019, until COVID and supply chain for All Urban Consumers (CPI-U): disruptions, CPI was keeping close to that target, as shown to the right. U.S. City Average, All Items, Index The onset of the global pandemic in early 2020 caused significant Annual Percent disruption to the US and global economies. With significant impact to the YFAR Index Change supply chain, prices soared in 2021 and 2022. Inflation increases varied 2010 218.1 1.6% by category. For example, from December 2021 to December 2022, 2011 224.9 3.1% energy prices increased 7.3 percent, a quarter of the rate at which they increased from 2020 to 2021. Fuel oil prices increased 41.5 percent from 2012 229.6 2.1% 2021 to 2022, approximately the same increase as the previous year. 2013 233.0 1.5% Utility (piped) gas service prices increased 19.3 percent from 2021 to 2014 236.7 1.6% 2022, compared with 24.1 percent a year earlier. From 2021 to 2022, 2015 237.0 0.1% electricity prices increased 14.3 percent, over twice the rate at which they 2016 240.0 1.3% increased from 2020 to 2021. Gasoline prices decreased 1.5 percent after 2017 245.1 2.1% increasing 49.6 percent the previous year. 2018 251.1 2.4% Forecasters expect short-term inflation rates to exceed the historical 2019 255.7 1.8% average of 2.4%. According to recent data, the unadjusted index for 12 2020 258.8 1.2% months, ending June 2023, increased 3.0 percent, representing the 2021 271.0 4.7% smallest 12-month increase since the period ending March 2021. 2022 292.7 8.0% According to the Federal Planning Bureau, average consumer price Average 2010-2019 1.8% inflation is expected to be 3.9% in 2023 and 3.4% in 2024. Average 2010-2022 2.4% Hotels and hospitality real estate are a labor-intensive business, highly Source: US Bureeau of Labor Statistic's _ sensitive to wage rate growth. On average, labor accounts for approximately 30% to 35% of total revenue. During the pandemic, many hospitality workers left the industry, and hotels in many markets were forced to offer higher wages to attract returning workers. The combination of higher wages due to a lack of employees willing to work in the hospitality sector, coupled with high inflation, have caused average hotel wages to increase faster than average wages throughout the general economy, according to the American Hotel and Lodging Association. Furthermore, other operating expenses impacted by high inflation such as food and beverage costs, insurance, and utilities have put additional pressure on hotel profits. Based on current CPI forecasts, we will use a long-term rate of 3.0% for projections of revenues and expenses to mirror what many hotel investors utilize for hotel financial projections. We deem this sufficient to reflect the near-term escalation with long-term moderation. There is one exception to the line items that deviate from this rate of growth in the context of this projection. The average daily room rate is projected based on historical trends and market trend projections, as outlined in the pervious sections of this report, rather than just on inflation. Rooms Revenue This line item is based on the number of occupied rooms multiplied by the average daily room rate for each respective year. Our projections for these components have been presented in the lodging market analysis section of this report. Occupancy has been rounded to the nearest whole percentage point for presentation purposes; however, revenues are based upon projected occupied room nights. Pinnacle Advisory Group Page 86 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites - Liverpool NY Projection of Occupancy, ADR, RevPAR and Room Revenue for Proposed Hotel Year Occupancy ADR % Change RevPAR % Change Rm Revenue 2026 69% $150.56 $103.32 4,140,000 2027 73% $154.87 2.9% $113.05 9.4% 4,530,000 2028 74% $159.52 3.0% $117.61 4.0% 4,720,000 2029 74% $164.30 3.0% $121.14 3.0% 4,860,000 2030 74% $169.23 3.0% $124.77 3.0% 5,000,000 Assumes Proposed Hotel opens October 1, 2025 as a 110-room Home2 Suites. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group Other Operated Departments Revenue Rooms Revenue This line item is based on the number of occupied rooms multiplied by the average daily room rate for each respective year. Our projections for these components have been presented in the lodging market analysis section of this report. Occupancy has been rounded to the nearest whole percentage point for presentation purposes; however, revenues are based upon projected occupied room nights. Pinnacle Advisory Group Page 86 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites - Liverpool NY Projection of Occupancy, ADR, RevPAR and Room Revenue for Proposed Hotel Year Occupancy ADR % Change RevPAR % Change Rm Revenue 2026 69% $150.56 $103.32 4,140,000 2027 73% $154.87 2.9% $113.05 9.4% 4,530,000 2028 74% $159.52 3.0% $117.61 4.0% 4,720,000 2029 74% $164.30 3.0% $121.14 3.0% 4,860,000 2030 74% $169.23 3.0% $124.77 3.0% 5,000,000 Assumes Proposed Hotel opens October 1, 2025 as a 110-room Home2 Suites. Projection years are Fiscal Years ending September 30. Source: Pinnacle Advisory Group Other Operated Departments Revenue Other operated departments for the Proposed Hotel consist of revenues generated through the telephone / telecommunication department as well as other minor revenue sources such as the Home2 Market convenience shop and guest laundry. The line item for the comparable properties may contain revenues from various other sources such as parking, making comparable data slightly less useful in this instance. The table below summarizes data from the several comparable hotels used to frame the analysis. The reported HOST data, showing the high, low, and average of each response is included in the table as well. Finally, our selection for stabilized projection is included. Other operated departments for the Proposed Hotel consist of revenues generated through the telephone / telecommunication department as well as other minor revenue sources such as the Home2 Market convenience shop and guest laundry. The line item for the comparable properties may contain revenues from various other sources such as parking, making comparable data slightly less useful in this instance. The table below summarizes data from the several comparable hotels used to frame the analysis. The reported HOST data, showing the high, low, and average of each response is included in the table as well. Finally, our selection for stabilized projection is included. Other Operated Departments Revenue Comparable Data (2022 Vs) Comparable Properties PAR POR Percent Comparable A $731 $2.79 1.9% Comparable B $896 $3.57 2.5% Comparable C -$5 -$0.02 0.0% Comparable D $194 $0.58 0.4% Comparable E $0 $0.00 0.0% Comparable F $242 $0.79 0.5% Comparable G $735 $3.22 2.3% Comparable H $390 $1.43 1.1% Comparable I $453 $1.46 1.2% Comparable J $720 $2.14 1.4% HOST high $1,787 $6.83 3.6% HOST average $1,139 $4.35 2.9% HOST low $475 $1.79 1.6% Stabilized Projection: $674 $2.51 1.8% Source: Pinnacle Advisory Group Other Operated Departments Revenue Comparable Data (2022 Vs) Comparable Properties PAR POR Percent Comparable A $731 $2.79 1.9% Comparable B $896 $3.57 2.5% Comparable C -$5 -$0.02 0.0% Comparable D $194 $0.58 0.4% Comparable E $0 $0.00 0.0% Comparable F $242 $0.79 0.5% Comparable G $735 $3.22 2.3% Comparable H $390 $1.43 1.1% Comparable I $453 $1.46 1.2% Comparable J $720 $2.14 1.4% HOST high $1,787 $6.83 3.6% HOST average $1,139 $4.35 2.9% HOST low $475 $1.79 1.6% Stabilized Projection: $674 $2.51 1.8% Source: Pinnacle Advisory Group Comparable properties range from $.00 to $3.57 POR, with the average of the most comparable properties at $2.56 per occupied room; the HOST data ranges from $1.79 to $6.83 POR. Based on our analysis, we have projected revenue of $2.51 per occupied room, which is consistent with detailed financials in the Syracuse market and the hotels above which are considered to be the most comparable. Miscellaneous Income Miscellaneous revenue represents miscellaneous sources of income that are presented on a net basis, including attrition and cancellation fees, certain discounts, and commissions for third party services such as vending and dry cleaning. Comparable data varies dramatically depending on what each property Pinnacle Advisory Group Page 87 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY Comparable properties range from $.00 to $3.57 POR, with the average of the most comparable properties at $2.56 per occupied room; the HOST data ranges from $1.79 to $6.83 POR. Based on our analysis, we have projected revenue of $2.51 per occupied room, which is consistent with detailed financials in the Syracuse market and the hotels above which are considered to be the most comparable. Miscellaneous Income Miscellaneous revenue represents miscellaneous sources of income that are presented on a net basis, including attrition and cancellation fees, certain discounts, and commissions for third party services such as vending and dry cleaning. Comparable data varies dramatically depending on what each property Pinnacle Advisory Group Page 87 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY includes in this line item. We have estimated this line item at $0.50 POR and expect that it will be primarily comprised of cancellation fees. Miscellaneous Revenue Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparable A $120 $0.46 C.3% Comparable B $0 $0.00 0.0% Comparable C $0 $0.00 0.0% Comparable D $445 $1.34 0.8% Comparable E $580 $2.08 1.8% Comparable F $661 $2.16 1.4% Comparable G $0 $0.00 0.0% Comparable H $179 $0.66 0.5% Comparable I $142 $0.46 0.4% Comparable) $224 $0.67 0.4% HOST high $690 $2.64 1.5% HOST average $447 $1.71 1.2% HOST low $208 $0.79 0.7% Stabilized Projection: $133 $0.50 0.4% Source: Pinnacle Advisory Group includes in this line item. We have estimated this line item at $0.50 POR and expect that it will be primarily comprised of cancellation fees. Miscellaneous Revenue Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparable A $120 $0.46 C.3% Comparable B $0 $0.00 0.0% Comparable C $0 $0.00 0.0% Comparable D $445 $1.34 0.8% Comparable E $580 $2.08 1.8% Comparable F $661 $2.16 1.4% Comparable G $0 $0.00 0.0% Comparable H $179 $0.66 0.5% Comparable I $142 $0.46 0.4% Comparable) $224 $0.67 0.4% HOST high $690 $2.64 1.5% HOST average $447 $1.71 1.2% HOST low $208 $0.79 0.7% Stabilized Projection: $133 $0.50 0.4% Source: Pinnacle Advisory Group Departmental Expenses Rooms Expense Rooms department expenses include expenses associated with the operation of the hotel's rooms department, including front office and housekeeping payroll, discounts and commissions, refunds, cable television expenses, guest room amenities and supplies, laundry, and cleaning supplies. The cost of providing brand standard complimentary breakfast is also included in the rooms department expenses. Many of these expenses increase on a variable basis — as more rooms are occupied, more housekeepers need to be staffed and more complementary food is required at breakfast. The table below summarizes the rooms expense for comparable hotel operations, the HOST report, as well as our stabilized projection. Because of the high variability of this expense, all of this data is presented and projected on a per occupied room basis. Departmental Expenses Rooms Expense Rooms department expenses include expenses associated with the operation of the hotel's rooms department, including front office and housekeeping payroll, discounts and commissions, refunds, cable television expenses, guest room amenities and supplies, laundry, and cleaning supplies. The cost of providing brand standard complimentary breakfast is also included in the rooms department expenses. Many of these expenses increase on a variable basis — as more rooms are occupied, more housekeepers need to be staffed and more complementary food is required at breakfast. The table below summarizes the rooms expense for comparable hotel operations, the HOST report, as well as our stabilized projection. Because of the high variability of this expense, all of this data is presented and projected on a per occupied room basis. Rooms Expense Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparable A $10,189 $38.85 26.5% Comparable B $10,318 $41.15 29.8% Comparable C $9,524 $38.58 33.1% Comparable D $11,478 $34.53 21.3% Comparable E $6,674 $23.96 21.3% Comparable F $8,618 $28.22 18.7% Comparable G $8,593 $37.71 27.2% Comparable H $8,372 $30.79 24.9% Comparable I $8,000 $25.73 21.0% Comparable _I $11,047 $32.83 22.3% HOST high $14,429 $55.14 30.6% HOST average $9,938 $38.00 27.4% HOST low $7,605 $28.71 25.8% Stabilized Projection: $8,610 $32.00 23.8% Source: Pinnacle Advisory Group Rooms Expense Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparable A $10,189 $38.85 26.5% Comparable B $10,318 $41.15 29.8% Comparable C $9,524 $38.58 33.1% Comparable D $11,478 $34.53 21.3% Comparable E $6,674 $23.96 21.3% Comparable F $8,618 $28.22 18.7% Comparable G $8,593 $37.71 27.2% Comparable H $8,372 $30.79 24.9% Comparable I $8,000 $25.73 21.0% Comparable _I $11,047 $32.83 22.3% HOST high $14,429 $55.14 30.6% HOST average $9,938 $38.00 27.4% HOST low $7,605 $28.71 25.8% Stabilized Projection: $8,610 $32.00 23.8% Source: Pinnacle Advisory Group Pinnacle Advisory Group Page 88 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY The comparable properties had an average rooms expense of $33 per occupied room and 23.2% of room sales. The HOST data presents a rooms expense average of approximately $38 per occupied room and 27.4% of room sales. Our projection of $32 per occupied room considers the extended stay positioning of the proposed hotel. The resulting rooms expense is 24% of room revenue, in line with the range offered by the comparable hotels. Other Department Expense Other department expenses for the Proposed Hotel consist of all costs associated with Other Operated Departments. Specifically, it includes expenses associated with in-room movies, the market sundry sales, vending, and guest laundry. The following table presents the data for the comparable properties as well as the HOST Data. Pinnacle Advisory Group Page 88 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY The comparable properties had an average rooms expense of $33 per occupied room and 23.2% of room sales. The HOST data presents a rooms expense average of approximately $38 per occupied room and 27.4% of room sales. Our projection of $32 per occupied room considers the extended stay positioning of the proposed hotel. The resulting rooms expense is 24% of room revenue, in line with the range offered by the comparable hotels. Other Department Expense Other department expenses for the Proposed Hotel consist of all costs associated with Other Operated Departments. Specifically, it includes expenses associated with in-room movies, the market sundry sales, vending, and guest laundry. The following table presents the data for the comparable properties as well as the HOST Data. Other Operated Departments Expense Comparable Data (2022 5's) Comparable Properties PAR POR Percent Comparable A 5357 $1.36 48.9% Comparable B $190 50.75 21.2% Comparable C 577 $0.31 -1612.4% Comparable D $143 $0.43 73.8% Comparable E 50 50.00 n/a Comparable F 5182 50.59 75.0% Comparable G $178 50.78 24.2% Comparable H 5171 50.63 43.8% Comparable I 5170 50.55 37.5% Comparable J $224 50.67 31.2% HOST high 5928 $3.55 116.4% HOST average $727 $2.78 71.7% HOST low $553 $2.09 51.9% Stabilized Projection: $271 51.01 40.1% Source:Pinnacle Advisory Group Other Operated Departments Expense Comparable Data (2022 5's) Comparable Properties PAR POR Percent Comparable A 5357 $1.36 48.9% Comparable B $190 50.75 21.2% Comparable C 577 $0.31 -1612.4% Comparable D $143 $0.43 73.8% Comparable E 50 50.00 n/a Comparable F 5182 50.59 75.0% Comparable G $178 50.78 24.2% Comparable H 5171 50.63 43.8% Comparable I 5170 50.55 37.5% Comparable J $224 50.67 31.2% HOST high 5928 $3.55 116.4% HOST average $727 $2.78 71.7% HOST low $553 $2.09 51.9% Stabilized Projection: $271 51.01 40.1% Source:Pinnacle Advisory Group Given the variances in the reporting by the comparable properties, we focused on detailed data provided by several select comparable hotels. The department is projected to have an expense ratio of approximately 40% of sales on a stabilized basis. Undistributed Operating Expenses Administrative & General (A&G) Fixed administrative and general expenses include the salaries of the general manager, personnel and accounting staff, building security, licenses, liability insurance, administrative telephone, office supplies, travel costs, and other miscellaneous expenses. Variable administrative and general expenses include credit card commission. The table that follows presents the data for the comparable properties, the HOST data, as well as our stabilized projection. Pinnacle Advisory Group Page 89 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites - Liverpool NY Given the variances in the reporting by the comparable properties, we focused on detailed data provided by several select comparable hotels. The department is projected to have an expense ratio of approximately 40% of sales on a stabilized basis. Undistributed Operating Expenses Administrative & General (A&G) Fixed administrative and general expenses include the salaries of the general manager, personnel and accounting staff, building security, licenses, liability insurance, administrative telephone, office supplies, travel costs, and other miscellaneous expenses. Variable administrative and general expenses include credit card commission. The table that follows presents the data for the comparable properties, the HOST data, as well as our stabilized projection. Pinnacle Advisory Group Page 89 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites - Liverpool NY Administrative and General Expense Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparabie A $2,899 $11.05 7.4% Comparable B $2,829 $11.28 8.0% Comparable C $2,456 $9.95 8.4% Comparable 0 $3,871 $11.64 7.1% Comparable E $2,920 $10.48 9.2% Comparable F $2,347 $7.69 4.8% Comparable G $2,329 $10.22 7.2% Comparable H $2,639 $9.71 7.7% Comparable I $2,868 $9.22 7.4% Comparable i $3,243 $9.64 6.4% HOST high $5,070 $19.37 11.6% HOST average $3,980 $15.21 10.7% HOST low $3,428 $12.94 10.2% Stabilized Projection: $2,457 $9.13 6.6% Source: Pinnacle Advisory Group Administrative and General Expense Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparabie A $2,899 $11.05 7.4% Comparable B $2,829 $11.28 8.0% Comparable C $2,456 $9.95 8.4% Comparable 0 $3,871 $11.64 7.1% Comparable E $2,920 $10.48 9.2% Comparable F $2,347 $7.69 4.8% Comparable G $2,329 $10.22 7.2% Comparable H $2,639 $9.71 7.7% Comparable I $2,868 $9.22 7.4% Comparable i $3,243 $9.64 6.4% HOST high $5,070 $19.37 11.6% HOST average $3,980 $15.21 10.7% HOST low $3,428 $12.94 10.2% Stabilized Projection: $2,457 $9.13 6.6% Source: Pinnacle Advisory Group Our projection for this expense was done on a per available room basis and percentage of sales. The ten comparable hotels had an average A&G expense of $2,840 per available room, ranging from $2,329 to $3,870. We have projected The Proposed Hotel to have a stabilized A&G expense of $2,457 per available room which equates to 6.6% of total revenue. The selected value is below the HOST data and recognizes the efficiency of the Home2 Suites business model. Information & Telecommunication Systems Expense The Information and telecommunication (IT) systems expenses include the salaries of personnel involved directly with the property's IT and telecommunication systems, costs associated with cell phones, internet services, local/long distance phone calls, any administrative and general costs for systems which manage and property's accounting, security, energy, centralized IT, rooms point of sales, etc., and any other miscellaneous expenses associated with IT. The table below presents the data for comparable properties, the HOST Data, and our stabilized projection. Pinnacle Advisory Group Page 90 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY Our projection for this expense was done on a per available room basis and percentage of sales. The ten comparable hotels had an average A&G expense of $2,840 per available room, ranging from $2,329 to $3,870. We have projected The Proposed Hotel to have a stabilized A&G expense of $2,457 per available room which equates to 6.6% of total revenue. The selected value is below the HOST data and recognizes the efficiency of the Home2 Suites business model. Information & Telecommunication Systems Expense The Information and telecommunication (IT) systems expenses include the salaries of personnel involved directly with the property's IT and telecommunication systems, costs associated with cell phones, internet services, local/long distance phone calls, any administrative and general costs for systems which manage and property's accounting, security, energy, centralized IT, rooms point of sales, etc., and any other miscellaneous expenses associated with IT. The table below presents the data for comparable properties, the HOST Data, and our stabilized projection. Pinnacle Advisory Group Page 90 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY Info & Telecom Systems Expense Comparable Data (2022 5's) Comparable Properties PAR P00 Percent Comparable A $0 $0.00 0.0% Comparable B $316 $1.26 0.9% Comparable C $0 $0.00 0.0% Comparable D $465 $1.40 0.9% Comparable E $416 $1.49 1.3% Comparable F $429 $1.41 0.9% Comparable G $328 $1.44 1.0% Comparable H $463 $1.70 1.4% Comparable I $613 $1.97 1.6% Comparable J $785 $2.33 1.6% HOST high $375 $1.43 0.8% HOST average $274 $1.05 0.7% HOST low $207 $0.78 0.7% Stabilized Projection: $400 $1.48 1.1% Source: Pinnacle Advisory Group Info & Telecom Systems Expense Comparable Data (2022 5's) Comparable Properties PAR P00 Percent Comparable A $0 $0.00 0.0% Comparable B $316 $1.26 0.9% Comparable C $0 $0.00 0.0% Comparable D $465 $1.40 0.9% Comparable E $416 $1.49 1.3% Comparable F $429 $1.41 0.9% Comparable G $328 $1.44 1.0% Comparable H $463 $1.70 1.4% Comparable I $613 $1.97 1.6% Comparable J $785 $2.33 1.6% HOST high $375 $1.43 0.8% HOST average $274 $1.05 0.7% HOST low $207 $0.78 0.7% Stabilized Projection: $400 $1.48 1.1% Source: Pinnacle Advisory Group Our projection of $400 per available room in 2022 dollars equates to 1.1% of sales. We believe this is reasonable versus to the comparable hotels which correctly report this line item (not including Comparable A and Comparable C). Sales and Marketing Expense Sales and marketing expenses include advertising and promotional expenses, internal merchandising expenses, and on-site sales and marketing staff. According to the Uniform System of Accounts for hotels, franchise fees and royalty fees, including frequent guest programs, are also included in this line item for the affiliation with a major lodging franchise system. The table below presents the data for the comparable properties as well as the HOST data on a per available room basis. Our projection of $400 per available room in 2022 dollars equates to 1.1% of sales. We believe this is reasonable versus to the comparable hotels which correctly report this line item (not including Comparable A and Comparable C). Sales and Marketing Expense Sales and marketing expenses include advertising and promotional expenses, internal merchandising expenses, and on-site sales and marketing staff. According to the Uniform System of Accounts for hotels, franchise fees and royalty fees, including frequent guest programs, are also included in this line item for the affiliation with a major lodging franchise system. The table below presents the data for the comparable properties as well as the HOST data on a per available room basis. Sales and Marketing Expense Comparable Data (2022 $'s) cornparabie Properties PAR P00 Percent Comparable A $6,131 $23.38 15.6% Comparable B $2,819 $11.24 7.9% Comparable C S2,583 $10.47 8.8% Comparable D $7,563 $22.75 13.9% Comparable E $3,560 $12.78 11.2% Comparable F $7,391 $24.20 15.2% Comparable G $3,024 $13.27 9.4% Comparable H $4,064 $14.95 11.9% Comparable I $5,019 $16.14 13.0% Comparable) $6,402 $19.03 12.7% HOST high $5,526 $21.29 13.2% HOST average $4,220 $16.14 11.4% HOST low $3,348 $12.70 9.4% Stabilized Projection: $4,421 $16.43 11.9% Source: F innode Advisory Group Sales and Marketing Expense Comparable Data (2022 $'s) cornparabie Properties PAR P00 Percent Comparable A $6,131 $23.38 15.6% Comparable B $2,819 $11.24 7.9% Comparable C S2,583 $10.47 8.8% Comparable D $7,563 $22.75 13.9% Comparable E $3,560 $12.78 11.2% Comparable F $7,391 $24.20 15.2% Comparable G $3,024 $13.27 9.4% Comparable H $4,064 $14.95 11.9% Comparable I $5,019 $16.14 13.0% Comparable) $6,402 $19.03 12.7% HOST high $5,526 $21.29 13.2% HOST average $4,220 $16.14 11.4% HOST low $3,348 $12.70 9.4% Stabilized Projection: $4,421 $16.43 11.9% Source: F innode Advisory Group The Proposed Hotel property is expected to execute a franchise agreement with Hilton. Most brands require a royalty fee ranging from 5.0% to 6.0% of rooms revenues as well as a marketing contribution Pinnacle Advisory Group Page 91 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY ranging from 2.5% to 4.0% of rooms revenues. Other reservation expenses and miscellaneous fees paid to the franchisor are accounted for in the rooms department line item. We projected this expense at 9.5% of revenues for franchise-related fees, including royalty, marketing fund and loyalty program expenses, plus $975 per available room for other marketing expenses, including sales support, advertising and other sales and marketing expenses. At a stabilized level of operations, sales marketing and franchise fees are projected to total $4,421 per available room (2022$) or 11.9% of sales, within the range of both the HOST data and the comparable data, which average 11.4% and 12.9% of sales, respectively. We have not assumed any initial franchise fee discounts in the first several years of operation Property Operations & Maintenance (PO&M) This expense consists of the payroll for the engineering department, as well as expenses associated with the upkeep of the building, grounds and landscaping, painting, and maintenance of the electrical and mechanical systems within the property. The table below presents the data for the comparable properties as well as the HOST data. The Proposed Hotel property is expected to execute a franchise agreement with Hilton. Most brands require a royalty fee ranging from 5.0% to 6.0% of rooms revenues as well as a marketing contribution Pinnacle Advisory Group Page 91 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY ranging from 2.5% to 4.0% of rooms revenues. Other reservation expenses and miscellaneous fees paid to the franchisor are accounted for in the rooms department line item. We projected this expense at 9.5% of revenues for franchise-related fees, including royalty, marketing fund and loyalty program expenses, plus $975 per available room for other marketing expenses, including sales support, advertising and other sales and marketing expenses. At a stabilized level of operations, sales marketing and franchise fees are projected to total $4,421 per available room (2022$) or 11.9% of sales, within the range of both the HOST data and the comparable data, which average 11.4% and 12.9% of sales, respectively. We have not assumed any initial franchise fee discounts in the first several years of operation Property Operations & Maintenance (PO&M) This expense consists of the payroll for the engineering department, as well as expenses associated with the upkeep of the building, grounds and landscaping, painting, and maintenance of the electrical and mechanical systems within the property. The table below presents the data for the comparable properties as well as the HOST data. Property Operation and Maintenance Expense Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparakpe A $1,543 $5.88 3.9% Comparable 6 $1,263 $5.04 3.6% Comparable C $1,484 $6.01 5.1% Comparable D $1,911 $5.75 3.5% Comparable E $1,473 $5.29 4.6% Comparable F $1,974 $6.47 4.1% Comparable G $1,288 $5.65 4.0% Comparable H $1,911 $7.03 5.6% Comparable I $1,236 $3.97 3.2% Comparable J $1,290 $3.83 2.6% HOST high $2,820 $10.78 5.7% HOST average $2,046 $7.82 5.4% HOST low $1,663 $6.28 5.1% Stabilized Projection: $1,452 $5.40 3.9% Source: Pinnacle Advisory Group Property Operation and Maintenance Expense Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparakpe A $1,543 $5.88 3.9% Comparable 6 $1,263 $5.04 3.6% Comparable C $1,484 $6.01 5.1% Comparable D $1,911 $5.75 3.5% Comparable E $1,473 $5.29 4.6% Comparable F $1,974 $6.47 4.1% Comparable G $1,288 $5.65 4.0% Comparable H $1,911 $7.03 5.6% Comparable I $1,236 $3.97 3.2% Comparable J $1,290 $3.83 2.6% HOST high $2,820 $10.78 5.7% HOST average $2,046 $7.82 5.4% HOST low $1,663 $6.28 5.1% Stabilized Projection: $1,452 $5.40 3.9% Source: Pinnacle Advisory Group Our projection for this expense was calculated on a per available room basis and for a stabilized level of operations. At $1,452 per available room, this projection yields an expense of 3.9% of total revenue at stabilization which is reasonable and supported by the historical and comparable information. Utilities Expense Utilities expense includes the cost of electricity, gas, water, and trash collection for the Proposed Hotel. The table below presents the data for the comparable properties as well as the HOST data on a per occupied room basis. Pinnacle Advisory Group Page 92 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY Our projection for this expense was calculated on a per available room basis and for a stabilized level of operations. At $1,452 per available room, this projection yields an expense of 3.9% of total revenue at stabilization which is reasonable and supported by the historical and comparable information. Utilities Expense Utilities expense includes the cost of electricity, gas, water, and trash collection for the Proposed Hotel. The table below presents the data for the comparable properties as well as the HOST data on a per occupied room basis. Pinnacle Advisory Group Page 92 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY Utilities Expense Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparab e A $781 $2.98 2.0% Comparable B $1,134 $4.52 3.2% Comparable C $1,826 $7.40 6.2% Comparable D $1,836 $5.52 3.4% Comparable E $1,267 $4.55 4.0% Comparable F $2,863 $9.38 5.9% Comparable G $1,242 $5.45 3.8% Comparable H $1,356 $4.99 4.0% Comparable I $1,528 $4.91 4.0% Comparable J $1,187 $3.53 2.3% HOST high $1,894 $7.24 4.1% HOST average $1,472 $5.62 3.9% HOST low $1,204 $4.54 3.8% Stabilized Projection: $1,344 $5.00 3.6% Source: Pinnacle Advisory Group Utilities Expense Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparab e A $781 $2.98 2.0% Comparable B $1,134 $4.52 3.2% Comparable C $1,826 $7.40 6.2% Comparable D $1,836 $5.52 3.4% Comparable E $1,267 $4.55 4.0% Comparable F $2,863 $9.38 5.9% Comparable G $1,242 $5.45 3.8% Comparable H $1,356 $4.99 4.0% Comparable I $1,528 $4.91 4.0% Comparable J $1,187 $3.53 2.3% HOST high $1,894 $7.24 4.1% HOST average $1,472 $5.62 3.9% HOST low $1,204 $4.54 3.8% Stabilized Projection: $1,344 $5.00 3.6% Source: Pinnacle Advisory Group Our projected cost of $5.00 per occupied room on a stabilized basis yields an overall ratio of 3.6% of total revenue, which is supported by the comparable properties that are newer and located in climates similar to central New York State. Management Fee The base management fee covers the cost of having a third-party management company operate the hotel, which is a common practice employed by the typical investor or developer. Industry standards for basic fees charged by third-party management typically range from 2.0% to 5.0% of total revenue, depending upon the complexity of the operation, revenue potential of the property and other strategic considerations. For the purpose of this projection, we have assumed a market based 3.0 % management fee throughout the entire projection period and have not factored in an incentive fee. We have not received any information or terms of the hotel management agreement. Property & Other Taxes Our projected cost of $5.00 per occupied room on a stabilized basis yields an overall ratio of 3.6% of total revenue, which is supported by the comparable properties that are newer and located in climates similar to central New York State. Management Fee The base management fee covers the cost of having a third-party management company operate the hotel, which is a common practice employed by the typical investor or developer. Industry standards for basic fees charged by third-party management typically range from 2.0% to 5.0% of total revenue, depending upon the complexity of the operation, revenue potential of the property and other strategic considerations. For the purpose of this projection, we have assumed a market based 3.0 % management fee throughout the entire projection period and have not factored in an incentive fee. We have not received any information or terms of the hotel management agreement. Property & Other Taxes For the purpose of this analysis, we have relied on projections provided by The Client and the actual property taxes at comparable hotels. In order to estimate the Proposed Hotel's property tax burden, we analyzed the assessed values of existing hotels in the immediate area (Liverpool and North Syracuse). The chart below illustrates the total assessed value for the existing hotels in Liverpool, including the Best Western Plus, which was not included in the competitive set. Onondaga County Hotel Properties 2022 Property Taxes Property Year Open Ratline Acres Assessed Value Value/Room County School Total Total / Key Homewood Suites 1991 102 3.6 4,076,000 39,961 54,623 98,687 153,310 1,503 Hampton Inn & Suites 2017 124 6.6 4,110,600 33,150 43,113 101,435 144,548 1,166 Tru by Hilton 2018 93 2.2 2,431,000 26,140 24,816 59,989 84,805 912 Best Western Plus 2003 61 2.1 2,000,000 32,787 29,987 37,015 67,002 1,098 Holiday Inn & Suites 1950 137 3.9 5,000,000 36,496 124,947 121,058 246,005 1,796 Average 33,707 139,134 1,295 Source: Onondaga County Tax Assessor, compiled by Pinnacle Advisory Group For the purpose of this analysis, we have relied on projections provided by The Client and the actual property taxes at comparable hotels. In order to estimate the Proposed Hotel's property tax burden, we analyzed the assessed values of existing hotels in the immediate area (Liverpool and North Syracuse). The chart below illustrates the total assessed value for the existing hotels in Liverpool, including the Best Western Plus, which was not included in the competitive set. Onondaga County Hotel Properties 2022 Property Taxes Property Year Open Ratline Acres Assessed Value Value/Room County School Total Total / Key Homewood Suites 1991 102 3.6 4,076,000 39,961 54,623 98,687 153,310 1,503 Hampton Inn & Suites 2017 124 6.6 4,110,600 33,150 43,113 101,435 144,548 1,166 Tru by Hilton 2018 93 2.2 2,431,000 26,140 24,816 59,989 84,805 912 Best Western Plus 2003 61 2.1 2,000,000 32,787 29,987 37,015 67,002 1,098 Holiday Inn & Suites 1950 137 3.9 5,000,000 36,496 124,947 121,058 246,005 1,796 Average 33,707 139,134 1,295 Source: Onondaga County Tax Assessor, compiled by Pinnacle Advisory Group The table below summarizes the tax expense in 2022 dollars for comparable hotel operations, the HOST report, as well as our stabilized projection. Pinnacle Advisory Group Page 93 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY Property and Other Taxes Expense Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparable A $1,173 $4.47 3.0% Comparable 8 5751 52.99 2.1% Comparable C $2,647 $10.72 9.0% Comparable D $1,209 $3.64 2.2% Comparable E $1,282 $4.60 4.0% Comparable F $1,546 $5.06 3.2% Comparable G $1,023 $4.49 3.2% Comparable li $1,391 $5.12 4.1% Comparable I $1,868 56.01 4.8% Comparable) $2,495 57.42 4.9% HOST high $3,151 $12.04 6.3% HOST average $1,669 $6.38 4.2% HOST low $862 $3.25 2.9% Stabilized Projection: $1,200 $4.46 3.2% Source: Pinnacle Advisory Group The table below summarizes the tax expense in 2022 dollars for comparable hotel operations, the HOST report, as well as our stabilized projection. Pinnacle Advisory Group Page 93 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY Property and Other Taxes Expense Comparable Data (2022 $'s) Comparable Properties PAR POR Percent Comparable A $1,173 $4.47 3.0% Comparable 8 5751 52.99 2.1% Comparable C $2,647 $10.72 9.0% Comparable D $1,209 $3.64 2.2% Comparable E $1,282 $4.60 4.0% Comparable F $1,546 $5.06 3.2% Comparable G $1,023 $4.49 3.2% Comparable li $1,391 $5.12 4.1% Comparable I $1,868 56.01 4.8% Comparable) $2,495 57.42 4.9% HOST high $3,151 $12.04 6.3% HOST average $1,669 $6.38 4.2% HOST low $862 $3.25 2.9% Stabilized Projection: $1,200 $4.46 3.2% Source: Pinnacle Advisory Group We have projected a property tax of approximately $1,200 per available room which equates to 3.2% of total sales. This projection is reasonable when considering the comparable hotels and their property tax expense on both a per available room basis as well as a percentage of sales. Insurance This expense reflects building and contents insurance to cover the property. The table below summarizes the comparable Insurance expense in 2022 dollars for ten comparable hotel operations, the HOST report, as well as our stabilized projection. We have projected a property tax of approximately $1,200 per available room which equates to 3.2% of total sales. This projection is reasonable when considering the comparable hotels and their property tax expense on both a per available room basis as well as a percentage of sales. Insurance This expense reflects building and contents insurance to cover the property. The table below summarizes the comparable Insurance expense in 2022 dollars for ten comparable hotel operations, the HOST report, as well as our stabilized projection. Insurance Expense Comparable Data (2022 $.$) Comparable Properties PAR POR Percent Comparable A $340 $1.30 0.9% Comparable B $415 $1.66 1.2% Comparable C $338 $1.37 1.2% Comparable D $840 $2.53 1.5% Comparable E $305 $1.10 1.0% Comparable F $514 $1.68 1.1% Comparable G $279 $1.23 0.9% Comparable H $277 $1.02 0.8% Comparable I $1,047 $3.37 2.7% Comparable J $776 $2.31 1.5% HOST high $632 $2.41 1.5% HOST average $538 $2.06 1.4% HOST low $434 $1.64 1.3% Stabilized Projection: $374 $1.39 1.0% Some:Pinnacle Advisory Group Insurance Expense Comparable Data (2022 $.$) Comparable Properties PAR POR Percent Comparable A $340 $1.30 0.9% Comparable B $415 $1.66 1.2% Comparable C $338 $1.37 1.2% Comparable D $840 $2.53 1.5% Comparable E $305 $1.10 1.0% Comparable F $514 $1.68 1.1% Comparable G $279 $1.23 0.9% Comparable H $277 $1.02 0.8% Comparable I $1,047 $3.37 2.7% Comparable J $776 $2.31 1.5% HOST high $632 $2.41 1.5% HOST average $538 $2.06 1.4% HOST low $434 $1.64 1.3% Stabilized Projection: $374 $1.39 1.0% Some:Pinnacle Advisory Group We have projected a stabilized insurance expense of $374 per available room in 2022 dollars, or an expense of 1.0% of sales. This projection is in line with the comparable properties. Reserve for Replacement A provision has been made in our projection regarding a reserve for periodic replacement of furnishings, fixtures, and equipment (FF&E) as well as other short-lived items pertaining to the physical asset and on- going operation as a hotel. Capital improvements are inevitable to maintaining the property in operable and marketable condition. This reserve fund will ensure that the Proposed Hotel will be able to maintain its competitive position in the market as assumed in our market analysis. Based on industry standards and similar hotel properties, we have allocated a 5.0 % reserve for replacement on a stabilized basis. Because Pinnacle Advisory Group Page 94 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY the property will be completely new construction, we have allocated a reserve of 3.0% in year 1 and 4.0% in year 2, and 5% thereafter as new properties do not typically require capital expenditures during the first several years of operation. Cash Flow Projections Our projections for the Proposed Hotel, prior to income taxes, interest, depreciation, and amortization, are presented on the following page. We have projected a stabilized insurance expense of $374 per available room in 2022 dollars, or an expense of 1.0% of sales. This projection is in line with the comparable properties. Reserve for Replacement A provision has been made in our projection regarding a reserve for periodic replacement of furnishings, fixtures, and equipment (FF&E) as well as other short-lived items pertaining to the physical asset and on- going operation as a hotel. Capital improvements are inevitable to maintaining the property in operable and marketable condition. This reserve fund will ensure that the Proposed Hotel will be able to maintain its competitive position in the market as assumed in our market analysis. Based on industry standards and similar hotel properties, we have allocated a 5.0 % reserve for replacement on a stabilized basis. Because Pinnacle Advisory Group Page 94 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY the property will be completely new construction, we have allocated a reserve of 3.0% in year 1 and 4.0% in year 2, and 5% thereafter as new properties do not typically require capital expenditures during the first several years of operation. Cash Flow Projections Our projections for the Proposed Hotel, prior to income taxes, interest, depreciation, and amortization, are presented on the following page. Pinnacle Advisory Group Page 95 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY Forecast of Income & Expense ($,000) Proposed Home2 Suites-Liverpool, NY Year (1) 2026 2027 2028 2029 ilk 2030 Number of Rooms: 110 110 110 110 110 Occupancy: 69% 73% 74% 74% 74% Average Rate: $150.56 $154.87 $159.52 $164.30 $169.23 Pinnacle Advisory Group Page 95 of 107 PROJECTED FINANCIAL PERFORMANCE Proposed Home2 Suites — Liverpool NY Forecast of Income & Expense ($,000) Proposed Home2 Suites-Liverpool, NY Year (1) 2026 2027 2028 2029 ilk 2030 Number of Rooms: 110 110 110 110 110 Occupancy: 69% 73% 74% 74% 74% Average Rate: $150.56 $154.87 $159.52 $164.30 $169.23 $ % $ % $ % $ REVENUES Rooms 4,148 97.7% 4,539 97.8% 4,722 97.8% 4,864 97.8% 5,009 97.8% Other Operated Departments 80 1.9% 85 1.8% 88 1.8% 90 1.8% 93 1.8% Miscellaneous Income 16 0.4% 17 0.4% 18 0.4% 18 0.4% 19 0.4% Total Revenue 4,244 100.0% 4,641 100.0% 4,828 100.0% 4,972 100.0% 5,121 100.0% $ % $ % $ % $ REVENUES Rooms 4,148 97.7% 4,539 97.8% 4,722 97.8% 4,864 97.8% 5,009 97.8% Other Operated Departments 80 1.9% 85 1.8% 88 1.8% 90 1.8% 93 1.8% Miscellaneous Income 16 0.4% 17 0.4% 18 0.4% 18 0.4% 19 0.4% Total Revenue 4,244 100.0% 4,641 100.0% 4,828 100.0% 4,972 100.0% 5,121 100.0% DEPARTMENTAL EXPENSES (2) Rooms 1,020 24.6% 1,084 23.9% 1,123 23.8% 1,156 23.8% 1,191 23.8% Other Operated Departments 32 40.0% 34 40.0% 35 39.8% 36 40.0% 37 39.8% Total Departmental Expenses 1,052 24.8% 1,118 24.1% 1,158 24.0% 1,192 24.0% 1,228 24.0% DEPARTMENTAL INCOME 3,192 75.2% 3,523 75.9% 3,670 76.0% 3,780 76.0% 3,893 76.0% DEPARTMENTAL EXPENSES (2) Rooms 1,020 24.6% 1,084 23.9% 1,123 23.8% 1,156 23.8% 1,191 23.8% Other Operated Departments 32 40.0% 34 40.0% 35 39.8% 36 40.0% 37 39.8% Total Departmental Expenses 1,052 24.8% 1,118 24.1% 1,158 24.0% 1,192 24.0% 1,228 24.0% DEPARTMENTAL INCOME 3,192 75.2% 3,523 75.9% 3,670 76.0% 3,780 76.0% 3,893 76.0% UNDISTRIBUTED OPERATING EXPENSES Administrative and General 291 6.9% 309 6.7% 320 6.6% 330 6.6% 340 6.6% Info & Telecom Systems 47 1.1% 50 1.1% 52 1.1% 54 1.1% 55 1.1% Sales and Marketing 539 12.7% 559 12.0% 576 11.9% 594 11.9% 612 12.0% Property Operation and Maintenance 172 4.1% 183 3.9% 189 3.9% 195 3.9% 201 3.9% Utilities 161 3.8% 170 3.7% 175 3.6% 181 3.6% 186 3.6% Total 1,210 28.6% 1,271 27.4% 1,312 27.1% 1,354 27.1% 1,394 27.2% GROSS OPERATING PROFIT 1,982 46.6% 2,252 48.5% 2,358 48.9% 2,426 48.9% 2,499 48.8% MANAGEMENT FEES 127 3.0% 139 3.0% 145 3.0% 149 3.0% 154 3.0% UNDISTRIBUTED OPERATING EXPENSES Administrative and General 291 6.9% 309 6.7% 320 6.6% 330 6.6% 340 6.6% Info & Telecom Systems 47 1.1% 50 1.1% 52 1.1% 54 1.1% 55 1.1% Sales and Marketing 539 12.7% 559 12.0% 576 11.9% 594 11.9% 612 12.0% Property Operation and Maintenance 172 4.1% 183 3.9% 189 3.9% 195 3.9% 201 3.9% Utilities 161 3.8% 170 3.7% 175 3.6% 181 3.6% 186 3.6% Total 1,210 28.6% 1,271 27.4% 1,312 27.1% 1,354 27.1% 1,394 27.2% GROSS OPERATING PROFIT 1,982 46.6% 2,252 48.5% 2,358 48.9% 2,426 48.9% 2,499 48.8% MANAGEMENT FEES 127 3.0% 139 3.0% 145 3.0% 149 3.0% 154 3.0% NON-OPERATING INCOME AND EXPENSES Property and Other Taxes 186 4.4% 195 4.2% 198 4.1% 200 4.0% 203 4.0% Insurance 46 1.1% 47 1.0% 49 1.0% 50 1.0% 52 1.0% Total 232 5.5% 242 5.2% 247 5.1% 250 5.0% 255 5.0% EBITDA 1,623 38.1% 1,871 40.3% 1,966 40.8% 2,027 40.9% 2,090 40.8% REPLACEMENT RESERVE 127 3.0% 186 4.0% 241 5.0% 249 5.0% 256 5.0% NON-OPERATING INCOME AND EXPENSES Property and Other Taxes 186 4.4% 195 4.2% 198 4.1% 200 4.0% 203 4.0% Insurance 46 1.1% 47 1.0% 49 1.0% 50 1.0% 52 1.0% Total 232 5.5% 242 5.2% 247 5.1% 250 5.0% 255 5.0% EBITDA 1,623 38.1% 1,871 40.3% 1,966 40.8% 2,027 40.9% 2,090 40.8% REPLACEMENT RESERVE 127 3.0% 186 4.0% 241 5.0% 249 5.0% 256 5.0% EBITDA LESS REPLACEMENT RESERVE 1,496 35.1% 1,685 36.3% 1,725 35.8% 1,778 35.9% 1,834 35.8% Notes (1) All years represent fiscal years beginning October land ending September 30. (2) Departmental expense ratios are expressed as a percentage of their respective departmental revenues. (3) Income before other deductions such debt service, interest, depreciation, amortization, and income taxes. (4) This forecast is intended to be read in conjunction with supporting documentation prepared by Pinnacle Advisory Group. Unauthorized use or reliance on this forecast is prohibited by Pinnacle Advisory Group. Source' Pinnacle Advisory Group Pinnacle Advisory Group Page 96 of 107 ASSUMPTIONS & LIMITING CONDITIONS Proposed Home2 Suites — Liverpool NY EBITDA LESS REPLACEMENT RESERVE 1,496 35.1% 1,685 36.3% 1,725 35.8% 1,778 35.9% 1,834 35.8% Notes (1) All years represent fiscal years beginning October land ending September 30. (2) Departmental expense ratios are expressed as a percentage of their respective departmental revenues. (3) Income before other deductions such debt service, interest, depreciation, amortization, and income taxes. (4) This forecast is intended to be read in conjunction with supporting documentation prepared by Pinnacle Advisory Group. Unauthorized use or reliance on this forecast is prohibited by Pinnacle Advisory Group. Source' Pinnacle Advisory Group Pinnacle Advisory Group Page 96 of 107 ASSUMPTIONS & LIMITING CONDITIONS Proposed Home2 Suites — Liverpool NY ASSUMPTIONS & LIMITING CONDITIONS This report, including our findings and projections, are subject to the following limitations: 1. Our conclusions are explicitly based upon the assumption that the Proposed Hotel will be a 110- room Home2 Suites. Our projections are directly related to this site and facility as specifically defined in this report. As in all studies of this type, the estimated results are based upon competent and efficient management and presume no significant change in the competitive position of the lodging industry in the immediate area set forth in our study. It is expressly understood that the conclusions of this analysis could change upon any deviation from these assumptions. 2. Pinnacle used reasonable professional judgment and commercially reasonable efforts to analyze the potential economic viability and/or feasibility of the Project. However, it is understood and agreed that there may be many foreseeable and unforeseeable factors that could potentially impact the success or failure of the Client's Project, including without limitation Force Majeure Events. As used herein "Force Majeure Events" include any event that is beyond the reasonable control of Client, such as changes in general economic conditions, acts of God, strikes, wars, civil commotions, acts of terrorism, cyber-attacks, acts of any governmental authority (including without limitation changes in laws, rules, or regulations), labor unrest (including work stoppages), adverse weather conditions, pandemics, epidemics, natural catastrophes and the like. It is understood and agreed by Client that nothing contained in any work prepared by Pinnacle (including any projections, budgets, and forecasts) should be construed or considered as an express or implied representation, warranty or guarantee to Client of any actual performance of the Project, and Pinnacle expressly disclaims any liability relating thereto and Client accepts such disclaimer. 3. It is expressly understood and agreed that Pinnacle's study and reports do not include any opinions or analysis regarding environmental, zoning, land use, ADA, architectural requirements, engineering requirements, licensing and/or other legal and regulatory requirements for the Project. Rather, the aforementioned issues described in the immediately preceding sentence are beyond the scope of Pinnacle's work and should be dealt with by Client separately through appropriate experts. 4. Pinnacle generally offers no opinions that are legal in nature and expressly disclaims any responsibility for the same and Client accepts such disclaimer. The Client, and not Pinnacle, is responsible for ensuring that the Project has met any and all necessary legal requirements to operate its business in accordance with the assumptions made by Pinnacle in its reports. 5. By reason of this assignment, Pinnacle shall not be required to give testimony, as an expert or otherwise, in connection with any legal action or arbitration unless express mutually acceptable prior arrangements have been made between Pinnacle and the Client in connection therewith. 6. Pinnacle shall be under no continuing duty to update its findings or analysis regarding the Project, nor shall Pinnacle be obligated to take into account changes in the market or other conditions that occur subsequent to Pinnacle's completion of its field work. Rather, Pinnacle's work shall be deemed completed as of the date of its last report. Additionally, Pinnacle shall not be obligated to discuss its findings with third parties who receive copies of the report through your distribution or otherwise. 7. It is agreed and understood that Pinnacle's liability for any work performed hereunder shall be limited to the total fees collected from this engagement, except in the case of a final non- ASSUMPTIONS & LIMITING CONDITIONS This report, including our findings and projections, are subject to the following limitations: 1. Our conclusions are explicitly based upon the assumption that the Proposed Hotel will be a 110- room Home2 Suites. Our projections are directly related to this site and facility as specifically defined in this report. As in all studies of this type, the estimated results are based upon competent and efficient management and presume no significant change in the competitive position of the lodging industry in the immediate area set forth in our study. It is expressly understood that the conclusions of this analysis could change upon any deviation from these assumptions. 2. Pinnacle used reasonable professional judgment and commercially reasonable efforts to analyze the potential economic viability and/or feasibility of the Project. However, it is understood and agreed that there may be many foreseeable and unforeseeable factors that could potentially impact the success or failure of the Client's Project, including without limitation Force Majeure Events. As used herein "Force Majeure Events" include any event that is beyond the reasonable control of Client, such as changes in general economic conditions, acts of God, strikes, wars, civil commotions, acts of terrorism, cyber-attacks, acts of any governmental authority (including without limitation changes in laws, rules, or regulations), labor unrest (including work stoppages), adverse weather conditions, pandemics, epidemics, natural catastrophes and the like. It is understood and agreed by Client that nothing contained in any work prepared by Pinnacle (including any projections, budgets, and forecasts) should be construed or considered as an express or implied representation, warranty or guarantee to Client of any actual performance of the Project, and Pinnacle expressly disclaims any liability relating thereto and Client accepts such disclaimer. 3. It is expressly understood and agreed that Pinnacle's study and reports do not include any opinions or analysis regarding environmental, zoning, land use, ADA, architectural requirements, engineering requirements, licensing and/or other legal and regulatory requirements for the Project. Rather, the aforementioned issues described in the immediately preceding sentence are beyond the scope of Pinnacle's work and should be dealt with by Client separately through appropriate experts. 4. Pinnacle generally offers no opinions that are legal in nature and expressly disclaims any responsibility for the same and Client accepts such disclaimer. The Client, and not Pinnacle, is responsible for ensuring that the Project has met any and all necessary legal requirements to operate its business in accordance with the assumptions made by Pinnacle in its reports. 5. By reason of this assignment, Pinnacle shall not be required to give testimony, as an expert or otherwise, in connection with any legal action or arbitration unless express mutually acceptable prior arrangements have been made between Pinnacle and the Client in connection therewith. 6. Pinnacle shall be under no continuing duty to update its findings or analysis regarding the Project, nor shall Pinnacle be obligated to take into account changes in the market or other conditions that occur subsequent to Pinnacle's completion of its field work. Rather, Pinnacle's work shall be deemed completed as of the date of its last report. Additionally, Pinnacle shall not be obligated to discuss its findings with third parties who receive copies of the report through your distribution or otherwise. 7. It is agreed and understood that Pinnacle's liability for any work performed hereunder shall be limited to the total fees collected from this engagement, except in the case of a final non- Pinnacle Advisory Group Page 97 of 107 ASSUMPTIONS & LIMITING CONDITIONS Proposed Home2 Suites — Liverpool NY appealable decision by a court of competent jurisdiction (or arbitrator if and only if the parties agree to arbitrate disputes) of fraud or gross negligence by Pinnacle. 8. Client shall indemnify, defend and hold harmless Pinnacle, and any and all of its employees, agents, contractors, consultants, officers, directors, and shareholders, from and against any and all claims, liabilities, damages, costs and expenses of any nature suffered or incurred Pinnacle Advisory Group (including, without limitation, reasonable attorneys' fees) arising out of or in connection with Pinnacle's performance of its duties under this Agreement, except for any claims, liabilities, damages, costs and expenses arising from Pinnacle's gross negligence or willful misconduct, as determined by a final non-appealable decision by a court of competent jurisdiction (or arbitrator if and only if the parties agree to arbitrate disputes). The above defense and indemnification obligations shall survive termination or expiration of this Agreement. 9. Pinnacle's work hereunder shall not be construed as offering any advice or opinions on whether to invest, lend or otherwise financially participate in the Project. Any business decisions made regarding whether to invest, lend or otherwise financially participate in the Project shall be the sole decision of the person so lending, investing or financially participating. 10. This document does not constitute a comprehensive market or financial feasibility study, which evaluated the projected net income of the hotel as compared with development costs. Such studies can be provided as a supplement under a separate proposal. 11. All direct and indirect information supplied by the Client and on-site management representatives is assumed to be reliable and correct. Pinnacle Advisory Group Page 97 of 107 ASSUMPTIONS & LIMITING CONDITIONS Proposed Home2 Suites — Liverpool NY appealable decision by a court of competent jurisdiction (or arbitrator if and only if the parties agree to arbitrate disputes) of fraud or gross negligence by Pinnacle. 8. Client shall indemnify, defend and hold harmless Pinnacle, and any and all of its employees, agents, contractors, consultants, officers, directors, and shareholders, from and against any and all claims, liabilities, damages, costs and expenses of any nature suffered or incurred Pinnacle Advisory Group (including, without limitation, reasonable attorneys' fees) arising out of or in connection with Pinnacle's performance of its duties under this Agreement, except for any claims, liabilities, damages, costs and expenses arising from Pinnacle's gross negligence or willful misconduct, as determined by a final non-appealable decision by a court of competent jurisdiction (or arbitrator if and only if the parties agree to arbitrate disputes). The above defense and indemnification obligations shall survive termination or expiration of this Agreement. 9. Pinnacle's work hereunder shall not be construed as offering any advice or opinions on whether to invest, lend or otherwise financially participate in the Project. Any business decisions made regarding whether to invest, lend or otherwise financially participate in the Project shall be the sole decision of the person so lending, investing or financially participating. 10. This document does not constitute a comprehensive market or financial feasibility study, which evaluated the projected net income of the hotel as compared with development costs. Such studies can be provided as a supplement under a separate proposal. 11. All direct and indirect information supplied by the Client and on-site management representatives is assumed to be reliable and correct. 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' -„I - i 0iF 1 1 I !1 II ila ! 1! WWI • r 'T li Ill • MIT C.C. . =Mill li Ill MINITErl lI Tar l I II ii• • NM 'lall 71Wil ll My NIL so OF . . I MOM ... .. i- I i I I I:j_ , :II 3 E ii ..4 . ' -„I - i 0iF 1 1 I !1 II ila ! 1! WWI • r 'T li Ill • MIT C.C. . =Mill li Ill MINITErl lI Tar l I II ii• • NM 'lall 71Wil ll My NIL so OF . . I SECOND - FOUP,TR FLOOR PLANS 0.0 I I -14111 Pinnacle Advisory Group Page 101 of 107 SECOND - FOUP,TR FLOOR PLANS 0.0 I I -14111 Pinnacle Advisory Group Page 101 of 107 VISIT SYRACUSE July 17, 2024 Mr. Robert Petrovich Onondaga County Industrial Development Agency 335 Montgomery Street, 2nd Floor Syracuse, NY 13202 Dear Mr. Petrovich, I am writing to express my enthusiastic support for the proposed new Home2 Suites extended stay hotel project in Salina. As President and CEO of Visit Syracuse, I have witnessed firsthand the growing need for such accommodations in our market, especially considering the recent announcement that Micron is moving its headquarters here. The relocation of Micron will have a profound impact on our community. The construction of their new headquarters alone is expected to create thousands of jobs, and the influx of their workforce, projected to exceed 30,000 employees, will significantly increase the demand for extended-stay accommodations. Currently, our area is significantly underserved in this regard, and this shortage is particularly impactful for several reasons: VISIT SYRACUSE July 17, 2024 Mr. Robert Petrovich Onondaga County Industrial Development Agency 335 Montgomery Street, 2nd Floor Syracuse, NY 13202 Dear Mr. Petrovich, I am writing to express my enthusiastic support for the proposed new Home2 Suites extended stay hotel project in Salina. As President and CEO of Visit Syracuse, I have witnessed firsthand the growing need for such accommodations in our market, especially considering the recent announcement that Micron is moving its headquarters here. The relocation of Micron will have a profound impact on our community. The construction of their new headquarters alone is expected to create thousands of jobs, and the influx of their workforce, projected to exceed 30,000 employees, will significantly increase the demand for extended-stay accommodations. Currently, our area is significantly underserved in this regard, and this shortage is particularly impactful for several reasons: 1. Business Travelers: Our city hosts numerous corporate events, conferences, and business meetings. Many professionals require longer stays due to project timelines or extended assignments. The lack of appropriate extended stay facilities forces them to seek accommodations far from their work sites or settle for less suitable options, negatively affecting their productivity and overall experience. 2. Relocating Employees: With Micron's headquarters move, many employees will be relocating to our city. These individuals and their families will need temporary housing while they settle into their new roles and find permanent homes. Extended stay hotels offer the perfect solution by providing a comfortable, home-like environment during this transitional period. 3. Construction Workers: The construction of Micron's new headquarters and other associated projects will require a substantial workforce over an extended period. These workers will need convenient and affordable housing options close to their job sites. Extended stay hotels would provide them with a practical solution, allowing them to focus on their work without the added stress of long commutes or unsuitable living arrangements. Page 102 of 107 1. Business Travelers: Our city hosts numerous corporate events, conferences, and business meetings. Many professionals require longer stays due to project timelines or extended assignments. The lack of appropriate extended stay facilities forces them to seek accommodations far from their work sites or settle for less suitable options, negatively affecting their productivity and overall experience. 2. Relocating Employees: With Micron's headquarters move, many employees will be relocating to our city. These individuals and their families will need temporary housing while they settle into their new roles and find permanent homes. Extended stay hotels offer the perfect solution by providing a comfortable, home-like environment during this transitional period. 3. Construction Workers: The construction of Micron's new headquarters and other associated projects will require a substantial workforce over an extended period. These workers will need convenient and affordable housing options close to their job sites. Extended stay hotels would provide them with a practical solution, allowing them to focus on their work without the added stress of long commutes or unsuitable living arrangements. Page 102 of 107 4. Impact on the Housing Market: The lack of extended stay hotels puts additional pressure on the local housing market. With limited temporary housing options, new residents and workers may resort to renting or buying properties that would otherwise be available to long-term residents. This increased demand can drive up housing prices and reduce availability for the local population. Extended stay hotels would help alleviate this pressure by providing suitable short-term accommodations. 5. Medical Visitors: Our local medical facilities draw patients and their families from surrounding regions for specialized treatments and procedures. Extended stay hotels would provide them with a convenient and supportive environment during their medical journeys. The introduction of a new extended stay hotel would address these needs comprehensively. Such an establishment would not only fill a critical gap in our accommodation offerings but also stimulate local economic growth by attracting more visitors, businesses, and events to our city. I firmly believe that this project will enhance the attractiveness of our market and provide invaluable benefits to both residents and visitors. I fully support the development of the new extended stay hotel and urge others to recognize the positive impact it will have on our community. 4. Impact on the Housing Market: The lack of extended stay hotels puts additional pressure on the local housing market. With limited temporary housing options, new residents and workers may resort to renting or buying properties that would otherwise be available to long-term residents. This increased demand can drive up housing prices and reduce availability for the local population. Extended stay hotels would help alleviate this pressure by providing suitable short-term accommodations. 5. Medical Visitors: Our local medical facilities draw patients and their families from surrounding regions for specialized treatments and procedures. Extended stay hotels would provide them with a convenient and supportive environment during their medical journeys. The introduction of a new extended stay hotel would address these needs comprehensively. Such an establishment would not only fill a critical gap in our accommodation offerings but also stimulate local economic growth by attracting more visitors, businesses, and events to our city. I firmly believe that this project will enhance the attractiveness of our market and provide invaluable benefits to both residents and visitors. I fully support the development of the new extended stay hotel and urge others to recognize the positive impact it will have on our community. Thank you for considering my perspective. I am confident that this project will be a significant asset to our region, especially as we welcome Micron and its employees. I look forward to seeing its successful realization. Sincerely, Danny J. Liedka U President/CEO Visit Syracuse, Inc. 800.234.4797 in_WPvisiqyracuse,com 109 South Warren SfrPet, Suite 10 c. 315.470.1910 yisitsyrocuse,corn Syracuse, NY 13202 Page 103 of 107 Lockheed Martin Corporation 6801 Rockledge Drive Bethesda, MD 20817 Thank you for considering my perspective. I am confident that this project will be a significant asset to our region, especially as we welcome Micron and its employees. I look forward to seeing its successful realization. Sincerely, Danny J. Liedka U President/CEO Visit Syracuse, Inc. 800.234.4797 in_WPvisiqyracuse,com 109 South Warren SfrPet, Suite 10 c. 315.470.1910 yisitsyrocuse,corn Syracuse, NY 13202 Page 103 of 107 Lockheed Martin Corporation 6801 Rockledge Drive Bethesda, MD 20817 LOCKHEED MARTIN'' August 5, 2024 Mr. Tony Mangano Mr. Carmen Emmi E&M Hospitality Group 275 Elwood Davis Road Liverpool, NY 13088 Dear Tony & Carmen, I was pleased to hear of the new Home2 hotel that is being built in our area that will have the amenities suitable for our customer visit needs. We do like to place our visiting customers in all suite properties that offer larger living spaces and kitchen space as they often stay for 2 weeks or longer at a time. Lockheed Martin for many years has used Homewood Suites Liverpool as our first hotel of choice. During the past year or so, we have been running into situations where the hotel has been sold out due to the demand for long-term reservations in our area. This has been forcing us to look elsewhere. Most of our customers are Hilton loyal so this has been a challenge to find them alternative accommodations that will fit their needs and keep them as close to our LM Syracuse site as possible. Lockheed Martin has several upcoming Radar contracts in the next several years. We book approximately 500 room nights a year and all of these reservations are for five or more nights at a time. I look forward to this hotel opening. I will be sure to let all of the admins know that this will be another top hotel option for our travelers. LOCKHEED MARTIN'' August 5, 2024 Mr. Tony Mangano Mr. Carmen Emmi E&M Hospitality Group 275 Elwood Davis Road Liverpool, NY 13088 Dear Tony & Carmen, I was pleased to hear of the new Home2 hotel that is being built in our area that will have the amenities suitable for our customer visit needs. We do like to place our visiting customers in all suite properties that offer larger living spaces and kitchen space as they often stay for 2 weeks or longer at a time. Lockheed Martin for many years has used Homewood Suites Liverpool as our first hotel of choice. During the past year or so, we have been running into situations where the hotel has been sold out due to the demand for long-term reservations in our area. This has been forcing us to look elsewhere. Most of our customers are Hilton loyal so this has been a challenge to find them alternative accommodations that will fit their needs and keep them as close to our LM Syracuse site as possible. Lockheed Martin has several upcoming Radar contracts in the next several years. We book approximately 500 room nights a year and all of these reservations are for five or more nights at a time. I look forward to this hotel opening. I will be sure to let all of the admins know that this will be another top hotel option for our travelers. Thank you for always taking great care of our customers. I look forward to continuing business with your hotels and the new Home2. Regards, Rosanne E. Pickard, Senior Administrative Assistant to Steven M. Allen, Business Director Ground Based Air Surveillance Radars David Kenneweg, Director Multi-Mission Air Defense Mukesh Memula, Director Airborne Radars Lockheed Martin Rotary and Mission Systems (RMS) 497 Electronics Parkway, Building 5, Office #125 Liverpool, NY 13088 Ph: (315) 456-2477; Fx: (315) 456-0681 E-Mail: rosanne.e.pickard@lmco.com Page 104 of 107 Town of Salina OFFICE OF THE TOWN SUPERVISOR Town OF sauna aEstospos Town Supervisor July 31, 2024 Ryan McMahon County Executive 421 Montgomery, 14th Floor Syracuse, NY 13202 Dear Hon. McMahon, The Town of Salina strongly favors the proposed development of a 110-room Home2 by Hilton hotel, to be located at 241 Elwood Davis Road, Liverpool, NY. The developer of this hotel, Homegrown2, LLC, is owned by third-generation members of the Emmi and Mangano families, which have been residents and business owners in Onondaga County, specifically in the Town of Salina since the 1950s. Over the years, they have invested millions of dollars into their businesses, which have grown along with the Town. Thank you for always taking great care of our customers. I look forward to continuing business with your hotels and the new Home2. Regards, Rosanne E. Pickard, Senior Administrative Assistant to Steven M. Allen, Business Director Ground Based Air Surveillance Radars David Kenneweg, Director Multi-Mission Air Defense Mukesh Memula, Director Airborne Radars Lockheed Martin Rotary and Mission Systems (RMS) 497 Electronics Parkway, Building 5, Office #125 Liverpool, NY 13088 Ph: (315) 456-2477; Fx: (315) 456-0681 E-Mail: rosanne.e.pickard@lmco.com Page 104 of 107 Town of Salina OFFICE OF THE TOWN SUPERVISOR Town OF sauna aEstospos Town Supervisor July 31, 2024 Ryan McMahon County Executive 421 Montgomery, 14th Floor Syracuse, NY 13202 Dear Hon. McMahon, The Town of Salina strongly favors the proposed development of a 110-room Home2 by Hilton hotel, to be located at 241 Elwood Davis Road, Liverpool, NY. The developer of this hotel, Homegrown2, LLC, is owned by third-generation members of the Emmi and Mangano families, which have been residents and business owners in Onondaga County, specifically in the Town of Salina since the 1950s. Over the years, they have invested millions of dollars into their businesses, which have grown along with the Town. We believe this hotel will help Onondaga County continue attracting and accommodating both leisure and business travelers to our area. The intersection of the NYS Thruway and 1-81 (soon to be Business Loop-81) , proximity to the Syracuse Hancock International Airport, as well as major employers such as Lockheed Martin and Crouse Hinds are all located within the Town of Salina. We anticipate that the proposed Micron development in the nearby Town of Clay will create additional demand for overnight accommodations in the Town of Salina and this hotel will be well-suited to meet those needs. We also support the development of this hotel as the Town of Salina has seen the recent closing of over 450 hotel rooms with no expectation that they will ever open again as hotels. The Town of Salina Planning Board has already approved the developer's site plan and the Town looks forward to the opening of this hotel along with the new jobs that it will create. Please feel free to contact me for any additional information you may need. Sincerely, Nichol aro, Supervisor Town of Salina We believe this hotel will help Onondaga County continue attracting and accommodating both leisure and business travelers to our area. The intersection of the NYS Thruway and 1-81 (soon to be Business Loop-81) , proximity to the Syracuse Hancock International Airport, as well as major employers such as Lockheed Martin and Crouse Hinds are all located within the Town of Salina. We anticipate that the proposed Micron development in the nearby Town of Clay will create additional demand for overnight accommodations in the Town of Salina and this hotel will be well-suited to meet those needs. We also support the development of this hotel as the Town of Salina has seen the recent closing of over 450 hotel rooms with no expectation that they will ever open again as hotels. The Town of Salina Planning Board has already approved the developer's site plan and the Town looks forward to the opening of this hotel along with the new jobs that it will create. Please feel free to contact me for any additional information you may need. Sincerely, Nichol aro, Supervisor Town of Salina 201 School Road - Liverpool, NY 13088 - (315) 457-6661 www.salina.ny.us - supervisorgsalina.ny.us Page 105 of 107 nationalgrid August 7, 2024 Mr. Tony Mangano Mr. Carmen Emmi E&M Hospitality Group 275 Elwood Davis Road Liverpool, NY 13088 Dear Tony & Carmen, I heard the news about the new Home2 Suites opening next to your Homewood Suites in Liverpool. I work closely with your Homewood Suites and Hampton Inn & Suites as these two hotels house our lineman when they are in town for trainings. My supervisors have been telling me that the area hotels are extremely busy this summer and it has been hard to find reservations, therefore, this new hotel is in great need for our area. The National Grid training center is located on Henry Clay Boulevard, so we like to place our lineman at your hotels due to their proximity to that location. Our classes run on weekly basis about twice a month. Each class is 5 days long with approximately 20 students each that we have to place in hotels. This amounts to 2,000 rooms every year. 201 School Road - Liverpool, NY 13088 - (315) 457-6661 www.salina.ny.us - supervisorgsalina.ny.us Page 105 of 107 nationalgrid August 7, 2024 Mr. Tony Mangano Mr. Carmen Emmi E&M Hospitality Group 275 Elwood Davis Road Liverpool, NY 13088 Dear Tony & Carmen, I heard the news about the new Home2 Suites opening next to your Homewood Suites in Liverpool. I work closely with your Homewood Suites and Hampton Inn & Suites as these two hotels house our lineman when they are in town for trainings. My supervisors have been telling me that the area hotels are extremely busy this summer and it has been hard to find reservations, therefore, this new hotel is in great need for our area. The National Grid training center is located on Henry Clay Boulevard, so we like to place our lineman at your hotels due to their proximity to that location. Our classes run on weekly basis about twice a month. Each class is 5 days long with approximately 20 students each that we have to place in hotels. This amounts to 2,000 rooms every year. We also have numerous storms throughout the year resulting in wide-spread power outages in this area. When this happens, we need to bring crews and contractors into our area to stay while restoring power. As someone who has booked rooms for storm restoration, there are many times where we are unable to get crews in hotels in the area where they need to restore power due to not enough availability. We have had to book them further out which affects the time it will take to get power restored to the area. Home2 Suites will be an excellent hotel addition for our supervisors when they need to make training reservations. It will also greatly improve the availability of hotel accommodations needed when we are restoring power in the area due to storms. I cannot wait to hear about the anticipated opening date and view the property with my team once it opens. Sincerely, Kimberly J. Agedal Sr. Analyst Process & Performance Improvement NY Electric 7496 Round Pond Road Kimberly.Agedal@NationalGrid.com Syracuse, NY 13212 315-461-2620 www.NationalGrid.com Page 106 of 107 We also have numerous storms throughout the year resulting in wide-spread power outages in this area. When this happens, we need to bring crews and contractors into our area to stay while restoring power. As someone who has booked rooms for storm restoration, there are many times where we are unable to get crews in hotels in the area where they need to restore power due to not enough availability. We have had to book them further out which affects the time it will take to get power restored to the area. Home2 Suites will be an excellent hotel addition for our supervisors when they need to make training reservations. It will also greatly improve the availability of hotel accommodations needed when we are restoring power in the area due to storms. I cannot wait to hear about the anticipated opening date and view the property with my team once it opens. Sincerely, Kimberly J. Agedal Sr. Analyst Process & Performance Improvement NY Electric 7496 Round Pond Road Kimberly.Agedal@NationalGrid.com Syracuse, NY 13212 315-461-2620 www.NationalGrid.com Page 106 of 107 OCIDA 2025 Budget 1. Operating Expenses/Program Expenses 2024 Budget 2025 Budget 2026 Budget 2027 Budget 2028 Budget Onondaga County - Contractual Support Services $ 950,000 $ 950,000 $ 950,000 $ 950,000 $ 950,000 General & Administrative $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 Pass-through Expense (PILOT Payments) $ 9,500,000 $ 9,500,000 $ 9,500,000 $ 9,500,000 $ 9,500,000 Other Pass-through Expense $ 3,700,000 $ 3,700,000 $ 3,700,000 $ 3,700,000 $ 3,700,000 Depreciation Expense $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 Professional Services $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 Marketing Expense $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 Other Expenses $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 Conferences/Project Events $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Office Expenses/Meeting Expenses $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Total Operating/Program Expenses $ 3,130,000 $ 3,130,000 $ 3,130,000 $ 3,130,000 $ 3,130,000 OCIDA 2025 Budget 1. Operating Expenses/Program Expenses 2024 Budget 2025 Budget 2026 Budget 2027 Budget 2028 Budget Onondaga County - Contractual Support Services $ 950,000 $ 950,000 $ 950,000 $ 950,000 $ 950,000 General & Administrative $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 Pass-through Expense (PILOT Payments) $ 9,500,000 $ 9,500,000 $ 9,500,000 $ 9,500,000 $ 9,500,000 Other Pass-through Expense $ 3,700,000 $ 3,700,000 $ 3,700,000 $ 3,700,000 $ 3,700,000 Depreciation Expense $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 Professional Services $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 Marketing Expense $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 Other Expenses $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 Conferences/Project Events $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Office Expenses/Meeting Expenses $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Total Operating/Program Expenses $ 3,130,000 $ 3,130,000 $ 3,130,000 $ 3,130,000 $ 3,130,000 2. Revenue 2024 Budget 2025 Budget 2026 Budget 2027 Budget 2028 Budget Agency Revenues $ 3,000,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 Pass-through Income (PILOT Payments) $ 9,500,000 $ 9,500,000 $ 9,500,000 $ 9,500,000 $ 9,500,000 Other Pass-through Income $ 3,700,000 $ 3,700,000 $ 3,700,000 $ 3,700,000 $ 3,700,000 Rent Income $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Grant Income/Reimbursement $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Other Income $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Interest Income $ 50,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 Total Revenue $ 3,130,000 $ 3,130,000 $ 3,130,000 $ 3,130,000 $ 3,130,000 *Pass-through expenses and Pass-through income are not included in the subtotals. Page 107 of 107 2. Revenue 2024 Budget 2025 Budget 2026 Budget 2027 Budget 2028 Budget Agency Revenues $ 3,000,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 Pass-through Income (PILOT Payments) $ 9,500,000 $ 9,500,000 $ 9,500,000 $ 9,500,000 $ 9,500,000 Other Pass-through Income $ 3,700,000 $ 3,700,000 $ 3,700,000 $ 3,700,000 $ 3,700,000 Rent Income $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Grant Income/Reimbursement $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Other Income $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Interest Income $ 50,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 Total Revenue $ 3,130,000 $ 3,130,000 $ 3,130,000 $ 3,130,000 $ 3,130,000 *Pass-through expenses and Pass-through income are not included in the subtotals. Page 107 of 107