June 2025 — 6-12-25 OCIDA Regular Meeting Board Packet ====================================================== 335 MONTGOMERY STREET, FLOOR 2M, SYRACUSE, NY 13202 315.435.3770 • ECONOMICDEVELOPMENT@ONGOV.NET • ONGOVED.COM Regular Meeting Agenda June 12, 2025 Call to Order the Regular Meeting of the Agency A. Approval of Minutes: May 8, 2025 B. Treasurer’s Report C. Payment of Bills D. Conflict of Interest Action Items: 1. Paradise Companies 10, LLC (Project #3101-24-05A) Second 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. Agency Action Requested: a. A resolution of the Board to authorize adoption of SEQRA determination. b. A resolution of the Board authorizing the financial assistance the Agency will provide. Agency benefits requested include exemptions from certain real property taxes, real estate transfer taxes, sales and use taxes and mortgage recording taxes. Representative: Grazi Zazzara 2. Liverpool Lodging Ventures LLC (Project #3101-25-01A) Liverpool Lodging Ventures LLC is proposing to construct an approximately 103,673 sq. ft. dual-branded Marriott hotel, consisting of a Fairfield Inn & Suites and a Residence Inn, located in the town of Clay. The hotel will feature approximately 162 rooms and serve a diverse range of guests and extended-stay visitors. Agency Action Requested: a. A resolution of the Board declaring the project a Type I action under SEQRA and the Agency’s intent to be Lead Agency for a coordinated environmental review. Representative: Jeffrey Davis, Agency Counsel Page 1 of 156 3. Upstate Pathology Lab Ownership, LLC (Project #3101-24-07A) – Project Update 4. Old Thompson Road, LLC (Project #3101-17-04B) Old Thompson Road, LLC has requested the execution and delivery of a mortgage and related documents with respect to a refinancing Agency Action Requested: a. A resolution of the Board authorizing execution and delivery of documents. Adjourn Page 2 of 156 Regular Meeting Minutes May 8, 2025 A regular meeting of the Onondaga County Industrial Development Agency was held on Thursday, May 8, 2025, at 335 Montgomery Street, Floor 2M, Syracuse, New York. Patrick Hogan called the meeting to order at 8:32 AM with the following in attendance: PRESENT: Patrick Hogan Janice Herzog Susan Stanczyk Fanny Villarreal Garard Grannell Cydney Johnson ABSENT: Elizabeth Dreyfuss ALSO PRESENT: Robert M. Petrovich, Executive Director Nathaniel Stevens, Treasurer Alexis Rodriguez, Secretary Robert Schoeneck, Assistant Treasurer Evan Carter, Assistant Secretary Amanda Fitzgerald, Esq., Agency Counsel Jeffrey Davis, Esq., Agency Counsel James Trasher, CHA Consulting, Inc. Approval of Meeting Minutes: April 10, 2025 Upon motion by Janice Herzog, seconded by Susan Stanczyk, the Board approved the regular meeting minutes of April 10, 2025. Motion was carried. Treasurer’s Report: Nate Stevens gave a brief overview of the Treasurer’s Report for the month of April 2025. Upon motion by Janice Herzog, seconded by Fanny Villarreal, the Board approved the Treasurer’s Report of the month of April 2025. Motion was carried. Page 3 of 156 Payment of Bills: Nate Stevens gave a brief overview of the Payment of Bills. Upon motion by Susan Stanczyk, seconded by Janice Herzog, the Board approved the Payment of Bills. Motion was carried. Action Items: 1. United Auto Supply of Syracuse West, Inc. (Project #3101-25-03A) Second Meeting United Auto Supply of Syracuse West, Inc. is proposing to renovate approximately 259,000 square feet located at 1165 Van Vleck Rd (also known as 1200 State Fair Blvd) in the Town of Geddes to allow for expansion of operations, distribution, and warehousing at one centralized location. James Trasher stated that United Auto Supply of Syracuse West, Inc. (the Applicant) purchased the former PNC Warehouse years ago. The Applicant converted a third of the warehouse for their distribution. The remaining warehouse space was formerly occupied by Lowes and W.B. Mason. Three years ago, Lowes relocated within Onondaga County to Erie Blvd. Recently, W.B. Mason also relocated within Onondaga County to the former Rite Aid warehouse on Buckley Road. With the recent relocation of W.B. Mason, the Applicant plans to expand their current operations into the 259,000 sq. ft of warehouse space that W.B. Mason previously occupied. Trasher advised that the Applicant is planning to spend $4 million on renovations and the remaining funds will be used for equipment to run their operations. Trasher stated that the Applicant is requesting exemptions from sales and use taxes and mortgage recording taxes. Trasher noted that he and the Applicant met with the Town of Geddes’s Town Board to explain the scope of the project and the benefits requested from the Agency. Trasher stated that there was misunderstanding by the Town Board of the benefits requested. At the meeting, the benefits requested of the Agency were clarified and the Town Board communicated their approval of the project. Alexis Rodriguez noted that at the public hearing there were two Town officials who made comments in opposition of the project. Rodriguez stated that after the public hearing was closed, she explained the benefits requested by the Applicant with the Town officials. After this discussion, the Town officials stated that they are in approval of the project advancing and retract their comments in opposition of the project. Rodriguez stated that she also has documentation of the retracted comments. Page 4 of 156 Patrick Hogan read the Agency Action Requested (a) of “A resolution of the Board to authorize adoption of SEQRA determination.” Amanda Fitzgerald noted to the Board that this is a Type II Action under SEQRA. Motion was made by Susan Stanczyk, seconded by Janice Herzog. Motion was carried. Patrick Hogan read the Agency Action Requested (b) of “A resolution of the Board to authorizing the financial assistance the Agency will provide. Agency benefits requested include exemptions from certain sales and use taxes, real estate transfer taxes, and mortgage recording taxes.” Motion was made by Fanny Villarreal, seconded by Susan Stanczyk. Motion was carried. 2. Engineering Services Contract Authorization Robert Petrovich stated that OCIDA has an existing contract with Barton & Loguidice (B&L) for engineering services. He recalled that the Agency contracted B&L for the demolition of the structures on Burnet Road, however the Agency didn’t own all the structures on Burnet Road at the time. Petrovich explained that the Agency needs a new work order with B&L to conduct pre-demolition asbestos surveys, and as necessary, administer asbestos abatement and removal on the remaining structures that the Agency now owns. Once the asbestos surveys and removal is completed, the Agency will be able to demolish the structures. Petrovich advised that B&L is also preparing a bid specification for a contractor to submit a quote on the demolition of the remaining structures. Petrovich noted that the schedule for this is some time in Q4 of 2025. Patrick Hogan read the Agency Action Requested of “A resolution of the Board authorizing an amendment to the contract with Barton & Loguidice, D.P.C. consisting of an increase to the amount authorized in the amount of $86,000 for engineering services.” Motion was made by Janice Herzog and seconded by Susan Stanczyk. Motion was carried. 3. Easement Agreement Authorization Amanda Fitzgerald stated that OCIDA recently closed on their straight-lease transaction with Finger Lakes Railway in February. Finger Lakes Railway is giving a small portion of the parcels that OCIDA has an interest in, to an easement to the Village of Solvay for pavement and drainage work. Due to the Agency being in title of the property as a factor of the straight- lease transaction, the Agency needs to join the easement documents. Fitzgerald advised that this is an administrative action of the Board authorizing the Executive Director, Robert Petrovich, to work with Jeffrey Davis and herself to review the documents and ultimately sign them. Page 5 of 156 Patrick Hogan read the Agency Action Requested of “A resolution of the Board authorizing execution of an easement agreement and any related documents in connection with the granting of a non-exclusive easement to the Village of Solvay.” Motion was made Susan Stanczyk and seconded by Janice Herzog. Motion was carried. 4. Committee Appointments Alexis Rodriguez welcomed OCIDA’s new Board member, Gar Grannell. She advised that OCIDA staff would like to appoint Gar Grannell to the Governance Committee. Patrick Hogan read the Agency Action Requested (a) of “A resolution of the Board appointing Gar Grannell as a member of the Governance Committee.” A motion was made by Susan Stanczyk and seconded by Janice Herzog. Motion was carried. Patrick Hogan read the Agency Action Requested (b) of “A resolution of the Board appointing Fanny Villarreal as Chair of the Governance Committee.” A motion was made by Janice Herzog and seconded by Susan Stanczyk. Motion was carried. 5. Officer Appointments Robert Petrovich stated that there is currently a vacancy in the Assistant Secretary position. He advised that Evan Carter has demonstrated his ability to be helpful in the overall process of the Economic Development office, particularly with the IDA. Petrovich asked the Board to consider appointing Evan Carter as Assistant Secretary. Patrick Hogan read the Agency Action Requested of “A resolution of the Board appointing Evan Carter as Assistant Secretary.” A motion was made by Janice Herzog and seconded by Susan Stanczyk. Motion was carried. Motion to adjourn was made by Susan Stanczyk and seconded by Janice Herzog at 8:43 AM. __________________________________ Alexis Rodriguez, Secretary Page 6 of 156 May 31, 2025 Revenue / Expense / Income Current Period Current YTD Operating/Non-Op Revenue 1,471,551 2,293,534 Administrative Expense 49,700 255,872 Operating/Program Expense 40,177 347,588 Net Ordinary Income 1,381,675 1,690,074 Current Assets Current YTD Total Cash 9,515,366 Less Pass Through Received 306,566 Net Cash 9,208,801 Page 7 of 156 Onondaga County Industrial Development Agency Profit and Loss May 2025 TOTAL Income 500 Operating Revenue 2116 Fees 2116.1 Agency Fees 1,314,000.00 2116.3 WPCP Agency Fee 111,111.11 Total 2116 Fees 1,425,111.11 2410 Lease Income 1,224.30 Total 500 Operating Revenue 1,426,335.41 501 Non-Operating Revenue 2401 Interest Income 33,254.91 501.2 Other Non-Operating Revenue 10,250.00 Total 501 Non-Operating Revenue 43,504.91 527 Nat Grid Matching Grant 1,711.00 550 WPCP Pass Thru Revenue 306,565.66 Total Income $1,778,116.98 GROSS PROFIT $1,778,116.98 Expenses 6400 Operating Expense 6406 Other Professional Services 6406.50 Consulting Services 3,000.00 Total 6406 Other Professional Services 3,000.00 6407 Administrative Expense 49,700.19 6409 Conference Attendence 4,150.00 6410 Office Expense 1,333.77 6414 Marketing 4,550.00 Total 6400 Operating Expense 62,733.96 6440 Legal Fees 6450 Barclay Damon 6460 IDA General Legal 2,875.75 6480 Roth Legal 75.00 Total 6450 Barclay Damon 2,950.75 Total 6440 Legal Fees 2,950.75 6500 Agency Program Expenses 6510 White Pine Commerce Park 6510.7 WPCP Marketing 13,291.18 Total 6510 White Pine Commerce Park 13,291.18 6530 800 Hiawatha Blvd. West 6530.3 Engineering 3,695.18 Total 6530 800 Hiawatha Blvd. West 3,695.18 Total 6500 Agency Program Expenses 16,986.36 Page 8 of 156 Accrual Basis Tuesday, June 10, 2025 12:41 PM GMT-04:00 1/2 Onondaga County Industrial Development Agency Profit and Loss May 2025 TOTAL 6514 White Pine Science & Technology Park 6514.1 Legal 7,205.70 Total 6514 White Pine Science & Technology Park 7,205.70 6600 Non-Operating Expenses 6605 Pilot & Pass Thru Expenses 6606 OHB Redev LLC Funds Pass Thru 8,542.78 Total 6605 Pilot & Pass Thru Expenses 8,542.78 Total 6600 Non-Operating Expenses 8,542.78 6610 WPCP Pass Thru Expenses 6610.1 Barclay Damon 177,777.78 6610.2 JMT 128,787.88 Total 6610 WPCP Pass Thru Expenses 306,565.66 Total Expenses $404,985.21 NET OPERATING INCOME $1,373,131.77 NET INCOME $1,373,131.77 Page 9 of 156 Accrual Basis Tuesday, June 10, 2025 12:41 PM GMT-04:00 2/2 Onondaga County Industrial Development Agency Balance Sheet As of May 31, 2025 TOTAL ASSETS Current Assets Bank Accounts 200 Cash 0.00 200.1 Cash - M & T Checking 125.47 200.5 NBT Checking 1,711,523.16 Total 200 Cash 1,711,648.63 200.6 NBT Savings 8,337,033.93 Total Bank Accounts $10,048,682.56 Accounts Receivable 380 Accounts Rec. 380.6 A/R Fees, Lease & PILOT 2,149,354.09 Total 380 Accounts Rec. 2,149,354.09 Total Accounts Receivable $2,149,354.09 Other Current Assets 480 Prepaid Expenses 480.4 Credit Balance on Card -1,473.67 Total 480 Prepaid Expenses -1,473.67 Total Other Current Assets $ -1,473.67 Total Current Assets $12,196,562.98 Fixed Assets 100 Land 101 White Pines Commerce Park -0.27 101.3 Engineering Services 0.00 101.4 Environmental/Demo Services 110.00 Total 101.3 Engineering Services 110.00 Total 101 White Pines Commerce Park 109.73 107 800 Hiawatha 604,840.42 108 White Pine Science & Technology Park 2,140,557.00 Total 100 Land 2,745,507.15 104 Machinery & Equipment 104.1 Office Furniture 1,429.00 104.2 Equipment 4,589.00 Total 104 Machinery & Equipment 6,018.00 211 A/D Office Furniture -6,018.00 250 Investment in Real Property 30,756,703.00 Total Fixed Assets $33,502,210.15 Page 10 of 156 Accrual Basis Tuesday, June 10, 2025 12:35 PM GMT-04:00 1/2 Onondaga County Industrial Development Agency Balance Sheet As of May 31, 2025 TOTAL Other Assets 240 Blue Sky Redevelopment 1,641.76 Total Other Assets $1,641.76 TOTAL ASSETS $45,700,414.89 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable 300 WPCP Pass Thru Payable 919,696.18 Total Accounts Payable $919,696.18 Other Current Liabilities 600 Accounts Payable 0.00 600.1 Due to Related Party - OED 255,872.23 600.204 OHB Redev LLC Funds 533,316.26 600.209 Syracuse Rail Overpayment 500.00 600.3 Onondaga County Loan 28,079,656.77 600.31 Accrued Interest - OC Note Payable 3,095,059.00 Total 600.3 Onondaga County Loan 31,174,715.77 Total 600 Accounts Payable 31,964,404.26 601 PILOT and Pass Thru Payable 603 PILOT Pass Thru 0.10 Total 601 PILOT and Pass Thru Payable 0.10 631 Due to Other Governments 631.1 Towns 631.155 Skaneateles 0.10 Total 631.1 Towns 0.10 631.4 Onondaga County -0.01 Total 631 Due to Other Governments 0.09 Total Other Current Liabilities $31,964,404.45 Total Current Liabilities $32,884,100.63 Total Liabilities $32,884,100.63 Equity 3900 Equity Unreserved 8,432,294.51 3901 Equity-Investment Fixed Assets 2,345,838.63 463 Reserve For Contracts 368,811.84 465 Equity - Unreserved 4,017.16 Net Income 1,665,352.12 Total Equity $12,816,314.26 TOTAL LIABILITIES AND EQUITY $45,700,414.89 Page 11 of 156 Accrual Basis Tuesday, June 10, 2025 12:35 PM GMT-04:00 2/2 ONONDAGA COUNTY INDUSTRIAL DEVELOPMENT AGENCY PAYMENT OF BILLS - SCHEDULE #506 June 12, 2025 GENERAL EXPENSES 1. DRYDEN MUTUAL INSURANCE CO.* $ 1,614.19 Insurance Premium, Inv #S489733 2. BARCLAY DAMON** $ 449,289.92 Purchase of Lot 064.-01-07.2 3. BARCLAY DAMON $ 177,777.78 April 2025 Legal Costs 4. JMT OF NEW YORK, LLP $ 128,787.88 April 2025 Engineering Costs 5. LOVELL AND ASSOCIATES $ 3,000.00 May 2025 Consulting 6. BARTON & LOGUIDICE, DPC $ 3,328.75 April 2025 Inv #151969 7. JMT OF NEW YORK, LLP $ 454.00 Roth Steel - Invoice #40-106070 8. JMT OF NEW YORK, LLP $ 6,025.50 Roth Steel - Invoice #1-106019 9. BARCLAY DAMON $ 653.66 Retained Corporate & Public Finance Matters, Inv#5339951 10. BARCLAY DAMON $ 8,013.95 WPSTP Inv#5340117 11. BARCLAY DAMON $ 11,128.75 OHB Redev, Inv#5340115 Page 12 of 156 12. BARCLAY DAMON $ 4,818.46 Sevigne v. OCIDA, Inv#5339952 13. NANCY LOWERY $ 123.77 Mileage 14. ALEXIS RODRIGUEZ $ 136.38 Mileage 15. EVAN CARTER $ 123.77 Mileage 16. ROBERT SCHOENECK $ 111.30 Mileage 17. GROSSMAN ST. AMOUR $ 15,000.00 2025 Audit, Invoice #92644 18. ROBERT PETROVICH $ 217.02 Mileage 19. ADVANCE MEDIA NEW YORK $ 1,100.00 Central Upstate MACNY Ad, Inv#3154285 20. DUSTY'S OUTDOOR SERVICE $ 600.00 Brewerton Rd - Property Maint Total: $ 812,305.08 *Ratification of check dated 6/3/2025 **Ratification of check dated 6/5/2025 Page 13 of 156 6/10/2025 Project Paradise Companies 10, LLC Project Number 3101-24-05A Town Manlius School District Fayetteville-Manlius Tax Parcel(s) 025.-09-15.0, 025.-09-14.0 Project Type Demolition and New Construction Village Manlius 7.Total Project Cost $ 3,700,000 8. Total Jobs 3 Land Acquisition $ - 8A. Job Retention 0 Site Work/Demo $ 265,500 8B: Job Creation 3 Building Construction & Renovation $ 3,010,500 (Next 5 Years) Furniture & Fixtures $ 178,000 Equipment $ - Project Soft Cost $ 246,000 Community Investment /Abatement Project Description Fiscal Impact ($) Abatement Summary $747,053 Sales Tax Abatement $178,556 Mortgage Tax Abatement $24,375 Property Tax Relief (PILOT) $544,122 The applicant is proposing to demolish the existing dilapidated building located at 111 and 117 Seneca St E and construct an approximately 14,520 square foot mixed-use Community Investment $7,423,905 building in its place. The new building will contain 13 residential units and a small PILOT Payments ( - ) $475,030 commercial space. Project Salaries and Benefits Estimated (10 yrs) $891,000 Construction Benefit Estimate $2,357,875 Total Project Cost $3,700,000 Investment:Abatement Ratio 10 :1 © 2024 Onondaga County Industrial Development Agency. All rights reserved. Page 14 of 156 Paradise Companies 10, LLC A) PILOTS Estimate Table Worksheet for 12 years OCIDA estimate of current market value $ 254,000 Projected investment $ 3,010,500 OCIDA estimate of increase in value $ 1,937,000 OCIDA estimated value after project is completed $ 2,191,000 Taxes that would have been collected if the project did not occur $ 118,149 Scheduled PILOT payments $ 475,030 Full Tax County PILOT PILOT YEAR Exemption % Town School District Village Total PILOT Payment w/o Net Exemption Amount PILOT 1 100% $ 939 $ 835 $ 5,328 $ 1,707 $ 8,809.15 $ 75,988 $ 67,178 2 100% $ 958 $ 851 $ 5,435 $ 1,741 $ 8,985.33 $ 77,507 $ 68,522 3 100% $ 977 $ 868 $ 5,544 $ 1,776 $ 9,165.04 $ 79,058 $ 69,892 4 90% $ 1,756 $ 1,561 $ 9,967 $ 3,193 $ 16,477.37 $ 80,639 $ 64,161 5 80% $ 2,567 $ 2,281 $ 14,564 $ 4,666 $ 24,078.53 $ 82,251 $ 58,173 6 70% $ 3,409 $ 3,030 $ 19,342 $ 6,197 $ 31,977.15 $ 83,896 $ 51,919 7 60% $ 4,283 $ 3,807 $ 24,305 $ 7,787 $ 40,182.07 $ 85,574 $ 45,392 8 50% $ 5,192 $ 4,614 $ 29,459 $ 9,438 $ 48,702.41 $ 87,286 $ 38,583 9 40% $ 6,134 $ 5,452 $ 34,809 $ 11,152 $ 57,547.48 $ 89,032 $ 31,484 10 30% $ 7,113 $ 6,322 $ 40,361 $ 12,931 $ 66,726.88 $ 90,812 $ 24,085 11 20% $ 8,128 $ 7,224 $ 46,122 $ 14,776 $ 76,250.43 $ 92,628 $ 16,378 12 10% $ 9,181 $ 8,160 $ 52,097 $ 16,690 $ 86,128.24 $ 94,481 $ 8,353 TOTAL $ 50,637 $ 45,007 $ 287,333 $ 92,054 $ 475,030 $ 1,019,153 $ 544,122 Year 0 1 2 3 4 5 Jobs Current/Actuals Creation Goals 0 3 0 0 0 Total Employment Goals 0 0 3 3 3 3 © 2024 Onondaga County Industrial Development Agency. All rights reserved. Page 15 of 156 Page 16 of 156 Page 17 of 156 C) Applicant Business Description: Estimated % of sales within Onondaga County: _________________________________ 100% Estimated % of sales outside Onondaga County but within New York State: ___________ N/A Estimated % of sales outside New York State but within the U.S.: __________________ N/A Estimated % of sales outside the U.S.: (*Percentage to equal 100%) ________________ N/A 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? ☐ No ☐ 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)? ☐ No ☐ Yes, explain 3. Has any person listed in Section I ever been in receivership or declared bankruptcy? ☐ No ☐ 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? ☐No ☐ Yes, explain (Provide year, project name, benefit description, amounts, address) E) Individual Completing Application: Name: GRAZIANO ZAZZARA JR Title: _______________________________ MANAGING MEMBER Address: 344 S WARREN STREET, STE 202, SYRACUSE, NY 13202 Phone: ______________________________ 315-299-6292 Cell Phone: 315-299-6292 E-mail:______________________________ GZAZZARA@THEICONCOMPANIES.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 18 of 156 Page 19 of 156 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: 111 and 117 Seneca Street E Legal Address (if different): 344 S WARREN STREET, STE 202, SYRACUSE, NY 13202 City: Town: _______________Village: MANLIUS MANLIUS Zip Code: 13104 School District: FAYETTEVILLE MANLIUS Tax Map Parcel ID(s): 025.-09-15.0, 025.-09-14.0 Full Market Value: _______________ 284,000 Square Footage of Existing Building(s):_______________ 2,694 B) Project Activity (Check all that apply): ☐ New construction ☐ Acquisition of existing facility ☐ Expansion to current facilities ☐ Brownfield/Remediated Brownfield ☐ Renovation of existing facility ☐ Demolition and construction ☐ Purchase of machinery/equipment C) Select Project Type or Project End Use at site (you may check more than one): ☐ Manufacturing ☐ Mixed Use ☐ Retail (see Section V) ☐ Facility of Aging ☐ Housing Project (see Section VII) ☐ Distribution/Wholesale ☐ Civic Facility (not for profit) ☐ Commercial ☐ Industrial ☐ Renewable Energy Project (see Section VI) ☐ Other, explain D) Project Narrative: Please check one of the two boxes below and attach statement. ☐ A statement that the Project described in this application would not be undertaken but for the financial assistance provided by the Agency. ☐ 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 20 of 156 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: ☐ (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; ☐ (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? ☐ No ☐ Yes G) Please describe any compelling circumstances the Agency should be aware of while reviewing this application. H) Local Approvals (Site Plan and Environmental Review) Have site plans been submitted to the appropriate town or local planning department? ☐ No. When will the plans be submitted? _____☐ 08/2024 Yes, what is the status?______ Has the project received site plan approval from the town or local planning board? ☐ No, anticipated approval date. _____ ☐Yes, date ______ 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/feafpart1.pdf b. Has Lead Agency been established? ☐ No ☐ Yes, name of Lead Agency __________________ c. Have any environmental issues been identified on the property? ☐ No ☐ Yes, explain Onondaga County Industrial Development Agency Page 6 Page 21 of 156 Page 22 of 156 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? ☐ No ☐ Yes, provide number of FTE jobs at the project site ___________ If you are relocating, are all employees moving to new site? ☐ No, explain ☐ Yes 2. Complete the following: Estimate the number of FTE jobs to be retained as a result of this Project: 3 (refer to attached narrative) Estimate the number of construction jobs to be created by this Project: 65 Estimate the average length of construction jobs to be created (months): 10 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 (%) N/A Provide an estimate of the number of residents in the Economic Development Region (Onondaga, Madison, Cayuga, Oneida, Oswego, and Cortland Counties) to fill new FTE jobs: 3 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 23 of 156 Page 8 Please use this chart to illustrate the current employment: Job Title/Category Current Annual Pay Current Employment (FTE) n/a 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 retail/commercial employee 33,000 0 3 0 0 0 D) Financial Assistance sought: ☐ Real Property Tax Abatement (PILOT): Agency Staff will provide draft and final PILOT schedule: _____________________ ☐ Mortgage Recording Tax Exemption (.75% of mortgage): _____________________ $24,375 ☐ Sales and Use Tax Exemption (4% Local, 4% State): _________________________ $178,556 ☐ Tax Exempt Bond Financing (Amount Requested): ___________________________ ☐ Taxable Bond Financing (Amount Requested): Onondaga County Industrial Development Agency Page 24 of 156 Page 9 Page 25 of 156 Page 26 of 156 Page 27 of 156 Page 28 of 156 Page 29 of 156 Page 30 of 156 Page 31 of 156 Page 32 of 156 Page 33 of 156 Page 34 of 156 Page 35 of 156 Page 36 of 156 Page 37 of 156 Page 38 of 156 Section I D: Has the Applicant/Owner ever received assistance in the past? The applicant has not, but the principals of the applicant have received assistance in the past from SIDA for two projects. The downtown Syracuse projects were Icon Tower, at 344 S Warren Street (Paradise Companies 2, LLC), Corbett Corner at 444 East Genesee Street (444 East Genesee Street LLC). Icon Tower was the redevelopment of a 233,000 square foot vacant office building into a mixed- use property containing 89 market rate apartments, two floors of commercial space and on-site enclosed parking. Applied for assistance in 2016. The project received a 12-year tax PILOT, mortgage recording and sales tax exemptions (SIDA). Corbett Corner was the redevelopment of a 28,000 square foot vacant office building into 24 affordable housing units, commercial space and on-site parking. Applied for Assistance in 2021. The project received a 15-year tax PILOT ($529,699), mortgage recording ($29,942) and sales tax exemptions ($151,400) through SIDA Section II D: Project Narrative, and Statement of Need. E: Description of Project, Paradise Companies 10, LLC, is a single purpose entity, controlled by The Icon Companies (developer). Paradise Companies 10, LLC, acquired clear title to the subject property in 2021, located at 111 and 117 Seneca Street E in the Village of Manlius. 111 &117 Seneca Street E is a vacant 2,694 square foot residential property and parking lot that is falling into disrepair, containing four empty apartments. Situated on .52 acres combined, the property is located right in between two popular local eateries, and its dilapidated state greatly diminishes the appeal of these community gems and the nearby pocket park that was created with Main Street revitalization funds. The current redevelopment plan is to demolish the existing building and construct a 14,520 square foot mixed-use building in its place. The new building would contain 13 residential units and a small commercial space. The commercial space would represent less than 20% of the total project size, and, the total cost estimate to complete the commercial space is around $450,000, also under 20% of the total project cost. The 13 residential units would be a combination of 2 Workforce Housing units and 11 Market Rate apartments, all units would be one bedroom and one bathroom. The balance of the property would include on-site parking, landscaping, outdoor seating and walkways. Not accounting for common area, the approximate breakdown of the building would be 10,140 square feet of housing, and 2,500 square feet of commercial space. Page 39 of 156 A development team has been assembled, consisting of In-Architects (Architect), Icon Construction Management (Construction), Keplinger Freeman (Landscape Architect), and Tompkins Community Bank (lender). Preliminary plans are being sent to Village and Planning Board in August 2024. The project was awarded a $700,000 Restore Grant to the Village of Manlius through NYS, the balance of the project cost would be funded by a combination of Developer Equity, Permanent and Construction loan from Tompkins Community Bank. Statement of Need: Prior to any new construction commencing, the project would require demolition of an existing structure, and a significant amount of site work. The site work is not only due to grading change requirement, but it requires the relocation of existing storm sewer system beneath the ground. The easements and locations of the existing storm sewers require these alterations to construct the proposed size and layout of the building. While the projects scale is appropriate for the size of the parcel and the Village setting, the economies of scale that are seen with larger mixed use building projects cannot be achieved. Due to the above-mentioned challenges, The Village’s successful application to New York State for a $700,000 Restore Grant is one crucial component to making this project financially viable. This is a reimbursable grant upon completion of the project. The other part needed to ensure the project is financially viable is with a PILOT. Without a PILOT, the developer would need to abandon the current redevelopment plan. This would be a disappointing setback for Village officials who have invested so much in obtaining NYS restore grant to help get this site redeveloped. This project will address a wide variety of issues present in the Village of Manlius. This blighted, vacant property causes a negative impact on both the overall visual appeal of the Village’s main street and reduces the appeal of the businesses that border them. Additionally, like many other municipalities across New York and the country, Manlius and Onondaga County have been dealing with housing shortages. The 2020 Consolidated Plan for Onondaga County calls attention to the significant housing shortages in the county outside of the City of Syracuse, with low vacancies and single-earner households struggling to find both housing and live-work opportunities. The completion of this project would add 13 residential units to the Village, which is nothing short of a windfall. This revitalization effort would make these units both habitable and attractive to young professionals, while also attracting businesses to the newly renovated commercial space, leading to a cascading positive impact on the Village’s prosperity and economy. Section III C: Although the applicant itself will have zero new FTE jobs, there will be a positive job impact should the project move forward. There will be a commercial space within the building, anticipated to be office or retail. An estimated 3 FTE jobs will be created as a result of a business operating here. The property management would be hired out and handled by The Icon Companies, creating more payroll and hours for Icon employees. All maintenance would be hired out and contracted Page 40 of 156 with 3rd parties, creating new/more payroll for theses companies (snow plowing, landscaping, cleaning, etc) Section VII: 1) Prior to any new construction commencing, the project would require demolition of an existing structure, and a significant amount of site work. The site work is not only due to grading change requirement, but it requires the relocation of existing storm sewer system beneath the ground. The easements and locations of the existing storm sewers require these alterations to construct the proposed size and layout of the building. While the projects scale is appropriate for the size of the parcel and the Village setting, the economies of scale that are seen with larger mixed use building projects cannot be achieved. Due to the above-mentioned challenges, The Village’s successful application to New York State for a $700,000 Restore Grant is one crucial component to making this project financially viable. With construction costs and interest rates still not being favorable to new construction, a sales tax and mortgage recording tax exemption would provide some relief to budget concerns. The other part needed to ensure the project is financially viable is with a PILOT. Without a PILOT, the developer would need to abandon the current redevelopment plan. This would be a disappointing setback for Village officials who have invested so much in obtaining NYS restore grant to help get this site redeveloped. 2) This project will address a wide variety of issues present in the Village of Manlius. This blighted, vacant property causes a negative impact on both the overall visual appeal of the Village’s main street and reduces the appeal of the businesses that border them. Additionally, like many other municipalities across New York and the country, Manlius and Onondaga County have been dealing with housing shortages. The 2020 Consolidated Plan for Onondaga County calls attention to the significant housing shortages in the county outside of the City of Syracuse, with low vacancies and single-earner households struggling to find both housing and live-work opportunities. The completion of this project would add 13 residential units to the Village, which is nothing short of a windfall. 2 of these units will be designated as Workforce Housing. This revitalization effort would make these units both habitable and attractive to young professionals, while also attracting businesses to the newly renovated commercial space, leading to a cascading positive impact on the Village’s prosperity and economy. 3) (See attached market study from Aparments.com, plus the following) The applicant is currently redeveloping a building in the Town of Manlius, very close to this proposed project, that consists of 19 market rate apartments. The project is tentatively scheduled to be completed 11/1/2024. Although 2 months remain until completion, it has already achieved 60% pre-leased status. Feedback and results demonstrate a strong demand and need for market rate housing in the immediate area. Additionally, The 2020 Consolidated Plan for Onondaga County calls attention to the significant housing shortages in the county outside of the City of Syracuse, with low Page 41 of 156 vacancies and single-earner households struggling to find both housing and live-work opportunities 4) The proposed project aligns with Plan Onondaga County comprehensive plan in 2 distinct ways. Strong Centers and Housing and Neighborhoods: “The variety of housing types and neighborhoods provide many attractive options in the county for different preferences and lifestyles and are normally available at many price points” The proposed project contributes to the many desirable options the County has to offer. 13 Units in a mixed-use building at the center of a very walkable Village setting is attractive. In the east suburbs, there are not nearly as many apartments as there are single family homes. Strong Centers are.......walkable, people oriented places with a mix of jobs, housing, shopping, dining, culture, public spaces, entertainment, transportation, and services. In strong centers these components come together in ways that support a diverse population and attract people by providing a sense of community and opportunities for interaction which increase vitality and authenticity. Those who would live in the proposed project would have immediate access to numerous local dining, shopping, fitness, and community options. Other walkable attractions include the oldest Cinema in Central NY (est.1918), public parks and the Manlius Swan Pond. The proposed project also fits into the local trends from the Plan, listed below: Shifts in household size, makeup, lifestyle preference, willingness or ability to own a home, and available inventory, have led to an increase in demand for apartment units over detached owner occupied homes. Since 2010 renter households grew by 5%, while the number of owner-occupied households decreased. In the City of Syracuse, over the last two decades, 3,722 permits were issued for multi-family projects. Many of these multi-family projects are mixed-use, meaning that they incorporate not only housing, but also commercial, retail, and community-based uses. 5) The proposed project is an infill project. 6) No 7) No Page 42 of 156 3/4/2025 Project: Liverpool Lodging Ventures LLC Project Number: 3101-25-01A Location: Town of Clay School District: Liverpool CSD Project Type: New construction Tax Parcel(s): 055.-01-01.1 Village: 0 Total Project Cost: $ 24,100,000 8. Total Jobs 18.5 Land Acquisition $ 1,000,000 8A. Job Retention 0 Site Work/Demo $ 1,200,000 8B: Job Creation 18.5 Building Construction & Renovation $ 13,605,000 (Next 5 Years) Furniture & Fixtures $ 3,145,000 Equipment $ 2,250,000 Project Soft Cost $ 2,900,000 Community Investment /Abatement Project Description Fiscal Impact ($) Abatement Summary $2,275,667 Sales Tax Abatement $905,360 Mortgage Tax Abatement $126,525 Property Tax Relief (PILOT) $1,243,782 The applicant is proposing to construct a 103,673 sq. ft. dual-branded Marriott hotel, Community Investment $34,576,842 consisting of a Fairfield Inn & Suites and a Residence Inn, located in the Town of Clay. PILOT Payments $1,374,552 The hotel will feature 162 rooms and serve a diverse range of guests and extended- Project Salaries and Benefits Estimated (10 yrs) $7,796,390 stay visitors. Construction Benefit Estimate $1,305,900 Total Project Cost $24,100,000 Investment:Abatement Ratio 15.19 :1 © 2025 Onondaga County Industrial Development Agency. All rights reserved. Page 43 of 156 Liverpool Lodging Ventures LLC A) PILOTS Estimate Table Worksheet for 10 years OCIDA estimate of current market value $ 1,000,000 Projected investment $ 13,605,000 OCIDA estimate of increase in value $ 8,100,000 OCIDA estimated value after project is completed $ 9,100,000 Taxes that would have been collected if the project did not occur $ 287,729 Scheduled PILOT payments $ 1,374,552 Full Tax Onondaga PILOT YEAR Exemption % Town of Clay Liverpool CSD Village Total PILOT Payment w/o Net Exemption County PILOT 1 100% $ 3,389 $ 1,904 $ 20,985 $ - $ 26,277 $ 239,123 $ 212,846 2 90% $ 6,256 $ 3,515 $ 38,742 $ - $ 48,513 $ 243,906 $ 195,393 3 80% $ 9,237 $ 5,189 $ 57,202 $ - $ 71,628 $ 248,784 $ 177,156 4 70% $ 12,335 $ 6,929 $ 76,384 $ - $ 95,648 $ 253,760 $ 158,112 5 60% $ 15,553 $ 8,737 $ 96,310 $ - $ 120,600 $ 258,835 $ 138,235 6 50% $ 18,894 $ 10,614 $ 117,003 $ - $ 146,512 $ 264,012 $ 117,500 7 40% $ 22,363 $ 12,563 $ 138,486 $ - $ 173,412 $ 269,292 $ 95,880 8 30% $ 25,964 $ 14,585 $ 160,780 $ - $ 201,330 $ 274,678 $ 73,348 9 20% $ 29,699 $ 16,684 $ 183,912 $ - $ 230,295 $ 280,171 $ 49,877 10 10% $ 33,574 $ 18,860 $ 207,904 $ - $ 260,337 $ 285,775 $ 25,437 TOTAL $ 177,264 $ 99,580 $ 1,097,708 $ - $ 1,374,552 $ 2,618,334 $ 1,243,782 Year 0 1 2 3 4 5 Jobs Current/Actuals 0 Creation Goals 13 2 1.5 1 1 Total Employment Goals 0 13 15 17 18 18.5 © 2025 Onondaga County Industrial Development Agency. All rights reserved. Page 44 of 156 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 at https://extapps.dec.ny.gov/docs/permits_ej_operations_pdf/feafpart1.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 natestevens@ongov.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 45 of 156 Return completed application to: Onondaga County Industrial Development Agency 335 Montgomery Street, Floor 2M Syracuse, NY 13202 Phone: 315-435-3770 | Fax: 315-435-3669 natestevens@ongov.net Section I: Applicant Information Submittal Date: _____________ 2/28/25 A) Applicant/Project Operator information (company receiving benefits): 1. Applicant/Project Operator: __________________________________________________ LIVERPOOL LODGING VENTURES LLC Applicant/Project Operator Address: _______________________________________ __________ 508 WHITE SPRUCE BLVD ROCHESTER NY 14823 Phone: __________________________ (607) 962-9868 Fax: ________________________ (607) 962-9869 __________ Website: ___________________________ VISIONSHOTELS.COM Email: _____________________ ____________ MINESHPATEL@VISIONSHOTELS.CO Federal ID#: ________________________ 92-0880703 NAICS: ________________________________ 721110 State of Incorporation: ____________________________________________________________ NY See link for your NYS incorporation information. https://apps.dos.ny.gov/publicInquiry 2. Owner (if different from Applicant/Project Operator): ____________________________ Owner Address: __________________________________________________________ Federal ID#: ______________________________________________________________ State of Incorporation: ______________________________________________________ List of stockholders, members, or partners of Owner: ____________________________ _ B) Applicant Business Organization (check appropriate category): ☐ Corporation ☐ Partnership ☐ Public Corporation ☐ Joint Venture ☐ Sole Proprietorship ☐ Limited Liability Company ☐ Other, explain List all stockholders, members, or partners with % of ownership greater than 5%: Name % of ownership ___________________________________ VISIONS HOTELS OPPORTUNITY FUND _________________________________ 100% ___________________________________ _________________________________ ___________________________________ _________________________________ ___________________________________ _________________________________ Onondaga County Industrial Development Agency Page 2 Page 46 of 156 C) Applicant Business Description: Estimated % of sales within Onondaga County: _________________________________ 100 Estimated % of sales outside Onondaga County but within New York State: ___________ 0 Estimated % of sales outside New York State but within the U.S.: __________________ 0 Estimated % of sales outside the U.S.: (*Percentage to equal 100%) ________________ 0 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? ☐ No ☐ 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)? ☐ No ☐ Yes, explain 3. Has any person listed in Section I ever been in receivership or declared bankruptcy? ☐ No ☐ 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? ☐No ☐ Yes, explain (Provide year, project name, benefit description, amounts, address) E) Individual Completing Application: Name: MINESH PATEL Title: _______________________________ CFO VISIONS HOTELS Address: 508 WHITE SPRUCE BLVD. ROCHESTER NY 14623 Phone: ______________________________ 716-307-2253 Cell Phone: (716) 307-3353 E-mail:______________________________ MINESHPATEL@VISIONSHOTELS.COM F) Company Contact (if different from individual completing application): Name: SAME Title: ____________________________ Address: Phone: ___________________________ Cell Phone: Email: ___________________________ Onondaga County Industrial Development Agency Page 3 Page 47 of 156 G) Company Counsel: Name of Attorney: _____________________________________________________________ ROBERT L. HALPIN Firm Name: __________________________________________________________________ THE HALPIN FIRM Address: _____________________________________________________________________ 4588 ROUTE 224 MONTOUR FALLS NY 14865 Phone: ______________________________________________________________________ (607) 594-3786 Cell Phone: ___________________________________________________________________ Email: _______________________________________________________________________ RHALPIN@THEHALPINFIRM.COM Onondaga County Industrial Development Agency Page 4 Page 48 of 156 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: PEPPERIDGE WAY Legal Address (if different): TBD City: Town: _______________Village: CLAY Zip Code: 13090 School District: LIVERPOOL Tax Map Parcel ID(s): P/O 055.-01-01.1 Full Market Value: _______________ Square Footage of Existing Building(s):_______________ $1 NA B) Project Activity (Check all that apply): ☐ New construction ☐ Acquisition of existing facility ☐ Expansion to current facilities ☐ Brownfield/Remediated Brownfield ☐ Renovation of existing facility ☐ Demolition and construction ☐ Purchase of machinery/equipment C) Select Project Type or Project End Use at site (you may check more than one): ☐ Manufacturing ☐ Mixed Use ☐ Retail (see Section V) ☐ Facility of Aging ☐ Housing Project (see Section VII) ☐ Distribution/Wholesale ☐ Civic Facility (not for profit) ☐ Commercial ☐ Industrial ☐ Renewable Energy Project (see Section VI) ☐ Other, explain D) Project Narrative: Please check one of the two boxes below and attach statement. ☐ A statement that the Project described in this application would not be undertaken but for the financial assistance provided by the Agency. ☐ 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 49 of 156 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: ☐ (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; ☐ (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? ☐ No ☐ Yes G) Please describe any compelling circumstances the Agency should be aware of while reviewing this application. H) Local Approvals (Site Plan and Environmental Review) Have site plans been submitted to the appropriate town or local planning department? ☐ No. When will the plans be submitted? _____☐ Yes, what is the status?______ Approved Has the project received site plan approval from the town or local planning board? 9/11/24 SEQR Approval ☐ No, anticipated approval date. _____ ☐Yes, date ______ 10/09/24 Site Plan Approval 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/feafpart1.pdf b. Has Lead Agency been established? ☐ No ☐ Yes, name of Lead Agency __________________ Town Planning Board c. Have any environmental issues been identified on the property? ☐ No ☐ Yes, explain Onondaga County Industrial Development Agency Page 6 Page 50 of 156 Section III: FINANCIAL AND EMPLOYMENT INFORMATION A) Project Costs and Finances Description of Costs Total Budget Amount Land Acquisition 1,000,000 Site Work/Demo 1,200,000 Building Construction & Renovation 13,605,000 Furniture & Fixtures 3,145,000 Equipment 2,250,000 Project Soft Cost 2,900,000 Management/Developer Total Project Cost Fees project 24,100,000 cost Management/Developer Fees projecthave Please costdocumentation available upon request. Do not include OCIDA fees, OCIDA application fees or OCIDA legal fees as part of the Total Project Cost. Sources of Funds for Project Costs: 1. Bank Financing $__________________ 16,870,000 2. Equity $__________________ 7,230,000 3. Tax Exempt Bond Issuance (if applicable) $__________________ NA 4. Taxable Bond Issuance (if applicable) $__________________ NA 5. Total Sources of Funds for Project Costs $__________________ 24,100,000 6. Public Sources (Include sum total of all state and federal grants and tax credits) $__________________ NA -Identify each state and federal grant/credit: __________________________________ $__________________ __________________________________ $__________________ __________________________________ $__________________ Onondaga County Industrial Development Agency Page 51 of 156 Page 7 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? ☐ No ☐ Yes, provide number of FTE jobs at the project site ___________ If you are relocating, are all employees moving to new site? ☐ No, explain ☐ Yes 2. Complete the following: Estimate the number of FTE jobs to be N/A retained as a result of this Project: Estimate the number of construction jobs to 20 to 30 Full Time be created by this Project: Estimate the average length of construction 18-months jobs to be created (months): Current annual payroll including the N/A benefit cost: Average salary amount that is an N/A employee benefit (%): Average annual growth salary/wage N/A rate (%) Provide an estimate of the number of residents in the Economic Development Region (Onondaga, Madison, Cayuga, N/A Oneida, Oswego, and Cortland Counties) to 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 52 of 156 Page 8 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 Manager 90000 1 0 0 0 0 Operations Manager 65000 1 0 0 0 0 Executive House Keeper 45000 1 0 0 0 0 Engineering 45000 1 0.5 0 0 0 Guest Service 41600 3 0 0.5 1 0 Laundry 39520 1 0.5 0 0 0 House Keeping 39520 5 1 1 0 1 D) Financial Assistance sought: ☐ Real Property Tax Abatement (PILOT): Agency Staff will provide draft and final PILOT schedule: _____________________ ☐ Mortgage Recording Tax Exemption (.75% of mortgage): _____________________ 126,525 ☐ Sales and Use Tax Exemption (4% Local, 4% State): _________________________ 905,360 ☐ Tax Exempt Bond Financing (Amount Requested): ___________________________ ☐ Taxable Bond Financing (Amount Requested): Onondaga County Industrial Development Agency Page 53 of 156 Page 9 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): $ 16,870,000 Estimated Mortgage Recording Tax Exemption Benefit (product of mortgage amount as indicated above, multiplied by .0075): $ 126,525 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: $_____________ 11,317,000 Estimated State and local Sales and Use Tax Benefit (product of 8% multiplied by the figure, above): $_____________ 905,360 Onondaga County Industrial Development Agency Page 54 of 156 Page 10 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 County Local School Full Tax PILOT Total Exemption PILOT PILOT PILOT Payment Net Exemption Year Amount Amount Amount PILOT % 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 55 of 156 Page 11 SECTION: V ForProjects For Retail Retail Projects Only Only Tax 1. Will the cost of the retail portion of the Project exceed one-third of the total project cost? ☐ 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 unemployment rate for the year to which the date relates. ☐ Yes ☐ 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? ☐ Yes ☐ No If yes, please provide a third party market study. 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, City, County or Village of where the Project will be located. ☐ Yes ☐ No If yes, please provide data and explain. Please see narrative included. Onondaga County Industrial Development Agency Page 56 of 156 Page 12 SECTION VI: For Solar Projects Only Please answer all the questions as an addendum to this application: P X, an 1. 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 57 of 156 Page 13 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: 1. 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 58 of 156 Page 14 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 59 of 156 Page 15 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 LIVERPOOL LODGING VENTURES 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 2/28/25 (date). If there are two applicants (Real Estate Holding and Operating Company) both need to complete this page. Applicant(s) Company: LIVERPOOL LODGING VENTURES LLC Representative for Contract: MINESH PATEL __ Address: 508 WHITE SPRUCE BLVD City: ROCHESTER State: NY Zip: 14823 Phone: 607-962-9868 Email: MINESHPATEL@VISIONSHOTELS.COM Project Address: Pepperidge Way City: Liverpool State: NY Zip: 13090 Signature: General Contractor: No General Contractor, Owner will sub contract all trades and act as its own GC Contact Person: Address: City: State: Zip: Phone: Email: Authorized Representative: Title: Signature: Onondaga County Industrial Development Agency Page 60 of 156 Page 16 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) 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 Director 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 assess fees and charges in connection with other transactions such as grants of easement or lease or sale of OCIDA-owned property. Onondaga County Industrial Development Agency Page 61 of 156 Page 17 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 _________________________________ LIVERPOOL LODGING VENTURES LLC Signature of Officer or Authorized Representative: _________________________________ Name & Title of Officer or Authorized Representative: _________________________________ MINESH PATEL VP Date: ______________ 2/28/25 Onondaga County Industrial Development Agency Page 62 of 156 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 _________________________________ LIVERPOOL LODGING VENTURES LLC Signature of Officer or Authorized Representative: _________________________________ Name & Title of Officer or Authorized Representative: _________________________________ MINESH PATEL VP Date: ______________ 2/28/25 Onondaga County Industrial Development Agency Page 63 of 156 Page 19 Section XII: Representations, Certifications, and Indemnification If there are two applicants (Real Estate Holding and Operating Company) both need to complete this page. Minesh Patel (Name of CEO or other authorized representative of Applicant)(s) confirms and says that he/she is the ____________________ VP (title) of ____________________ Liverpool Lodging Ventures 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. 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 64 of 156 Page 20 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: § 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 65 of 156 Page 21 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. Onondaga County Industrial Development Agency Page 66 of 156 Page 22 Page 67 of 156 Background and Project Narrative Liverpool Lodging Ventures LLC ("LLV") is an affiliate of Visions Hotels LLC, a prominent hotel development and management company with over thirty years of experience. Visions Hotels currently operates approximately sixty-eight hotels across New York, Pennsylvania, Massachusetts, and Connecticut, including six hotels in Onondaga County. LLV is a single member limited liability company and will be owned by a Visions Hotels Opportunity Fund limited partnership. LLV will own fee simple interest in the 5.26-acre site that is and will be zoned as RC-1 Regional Commercial District. LLV, on behalf of itself and/or its principals, has applied to the Agency to enter a lease- leaseback transaction. The Agency's involvement will assist in undertaking the following: • Acquisition and fee simple ownership of land • Construction of a dual-branded Marriott hotel, consisting of a Fairfield Inn & Suites and a Residence Inn. This hotel will serve a diverse range of guests, including transient, group, and extended-stay visitors. The hotel will feature 162 rooms, along with parking and infrastructure to support the project. • Acquisition and installation of furniture, fixtures, and equipment for the hotel. The dual-branded hotel is specifically designed to accommodate families, transient business travelers, and guests seeking a higher end lodging experience. The proposed development will transform the currently vacant site into a four-story, approximately 103,673 square foot hospitality facility. The project will include the following accommodations, services, and amenities: • 80 extended-stay suites with kitchens at the Residence Inn • 82 standard guest rooms at the Fairfield Inn & Suites • 1,900 square-foot pool room • 1,200 square-foot fitness center • 2,600 square-foot outdoor patio with firepits, BBQ grills, heaters, and seating • Guest laundry with five washers and dryers • 400 square-foot flexible meeting room • 400 square-foot recreational room featuring an indoor golf simulator • Expansive multi-functional lobby/lounge • A market suite shop offering snacks, beverages, sundries, frozen meals, and candies This project has been thoughtfully planned with input from local leaders, neighbors, brand representatives, lenders, and investors to address the economic development needs of the area. The project aligns with community goals of expanding its hotel room inventory to meet both current and future demands. The need for additional hotel accommodations has been heightened by multiple hotel closures and the anticipated demand generated by Micron and other chip manufacturing developments. Additionally, the forecasted demand resulting from regional development will be stunted without adequate, quality hotel options. The current hotel inventory will be occupied by construction workers and consultants leaving very limited rooms for Town Page 68 of 156 resident. When the 162-room Fairfield Inn and Residence Inn opens in 18 months, it will continue to offer the community a much-needed hospitality option. Visions Hotels has built its portfolio through acquisitions and new construction projects. However, after the pandemic, the company has suspended or cancelled all new hotel construction projects due the overall cost of construction and financing. The requested benefits are essential for securing the necessary debt and equity financing for this project in this current climate. Rising labor and material costs, coupled with a challenging lending environment that has seen many lenders tighten hotel financing, have made hotel construction increasingly difficult. These challenges are further exacerbated by high interest rates, which have nearly doubled in the past five years. Given these factors, financing for the project will not be feasible unless property taxes are managed through a PILOT abatement, and other costs are mitigated through sales tax and mortgage tax exemptions. Construction is scheduled to begin in Spring 2025, contingent upon the approval of benefits and securing lender financing. The project has already received approval from Marriott, and final design and construction drawings are currently being finalized, with approvals anticipated within the next 30 days. Once construction begins, the project is expected to take approximately 18 to 24 months to complete. Page 69 of 156 Drawing Copyright © 2024 ZONING REGULATIONS FOR DEVELOPMENT One Park Place, 300 South State Street, Suite 600 Syracuse, NY 13202 315.471.3920 . www.chasolutions.com EXISTING ZONING: RC-1 REGIONAL COMMERCIAL DISTRICT Sanitary Manhole Rim = 406.3' EXISTING LOT INFORMATION: Sanitary Manhole Invert: 395.9' Rim = 402.5' Central School District No. 1 of 8505 PEPPERIDGE WAY TAX MAP # 55-01-01.1 11751 EAST CORNING RD Invert: 392.5' Central School District No. 1 of the Towns of Salina and Clay Sanitary Manhole the Towns of Salina and Clay TOTAL LOT SIZE: 16.225± ACRES LODGING GROUP LLC (Reputed Owner) (Reputed Owner) Rim = 403.0' Liber 2436 / Page 898 RC-1 SITE: 9.671± ACRES CORNING, NY 14830 Liber 2436 / Page 898 Invert: 393.1' NORTH SYRACUSE · RC-1, LOT 5A: 4.406± ACRES · RC-1, LOT 5B: 5.264± ACRES Sanitary Manhole COVERAGE REQUIREMENTS: CODE PROVIDED Rim = 400.64' N 03°32'00" W 1078.37' 30.0' Wide 8" PVC Sanitary Sewer & Drainage Easement Drain Liber 4822 / Page 876 405.5' 30" HDPE MAX. RC-SITE COVERAGE: (5.800± AC) 75% 60% 30.0' 8" PVC 8" PVC 8" PVC Stormwater Bio-retention Pond (INCL. STRUCTURE & PAVEMENT) Drain Stormwater Bio-retention Pond 405.5' N 02°43'59" W 370.28' Rip Rap RC-1, LOT 5A COVERAGE: (2.439± AC) 100% 55% Dam 6" Underdrain (Plan) RC-1, LOT 5B COVERAGE: (3.361± AC) 100% 64% 30.0' 6" Underdrain (Plan) Underground Rip Rap Utility Boxes Area Edge of Pavement Rip Rap Dumpster Enclosure Stormwater Bio-retention Pond Edge of Pavement SETBACK REQUIREMENTS & RESTRICTIONS: Berm S 02°43'59" E 310.29' PROPOSED HOTEL ON RC-1 SITE 24" HDPE N 87°19'41" E Sedimentation Basin Concrete Pad 30.0' Wide Underground Easement Underground Electric Easement Granted to National Grid By BUILDING SETBACK: 56.02' Granted to OCWA By Instrument No. 2017-48068 FRONT- 100' 108.3' S 87°16'51" W Instrument No. 2018-23445 Asphalt Edge of Pavement 6" Underdrain (Plan) Parking Lot Drainage Easement REAR (RESIDENTIAL)- 75' 144.3' 85.94' For Stormwater Management Basin Valve Vents SIDE (EACH)- 75' 105.0' Stormwater Management Concrete Sidewalk Pavilion Concrete Sidewalk Basin S 02°34'48" E BUILDING HEIGHT (HOTEL MAX) 50' *55.0' 371.8000' 29.95' Concrete Concrete Patio Patio Valve PERIMETER LANDSCAPE STRIP: 30' (80' RES) >80' RES (*28.3' RES) N 87°25'00" E 303.99' Asphalt 33.8' Deed Reference: PARKING REQUIREMENTS: Edge of Pavement Parking Lot Concrete Sidewalk ALDI, Inc (New York) 287.58' 4 Story Wood The Mufale Family Limited Partnership (Now or Formerly) N 87°15'35" E Frame Hotel FFE Liber 4818 / Page 380 FFE 408.0' To "TownPlace Suits Marriott" 408.0' PARKING SPACE SIZE: 9.5' X 20' 9.5 'X 20' Stormwater Bio-retention Pond North Syracuse Lodging Group, LLC S 87°15'35" W Warranty Deed - Dated: November 18, 2015 Instrument No. 2015-041888 104.0' " 12 E P NUMBER OF SPACES: S.B.L. 55.0-01-01.1 HD FFE MANAGED LIVING FACILITY (HOTEL 1) = 1.5 SP./ ROOM 408.0' Concrete Sidewalk Overhang Concrete Sidewalk 1.5 SP. x 109 ROOMS = 164 SP. MANAGED LIVING FACILITY (HOTEL 2) = 1.5 SP./ ROOM E Flag DP Pole "H 1.5 SP. x 162 ROOMS = 243 SP. 12 Concrete Pad TOTAL SPACES REQUIRED............................................................= 407 SP. Roof Leader Roof Leader Roof Leader Roof Leader (Per Plan) (Per Plan) (Per Plan) (Per Plan) NS Roof Leader Asphalt (Per Plan) 6 Parking Lot 3°3 Edge of Pavement EXISTING (HOTEL 1) SPACES............ = 165 SP. 2'1 30.0' Wide Existing PROPOSED (HOTEL 2) SPACES............ = 206 SP. 7" W Drainage Easement Liber 4822 / Page 876 30.0' TOTAL SPACES PROVIDED............................................................= *371 SP. 906 Edge of Pavement Edge of Pavement 30.0' .45 ' Sign 12" PERF. HDPE Stormwater Bio-retention Pond * VARIANCE REQUIRED 36" Wa ZONING BOARD OF APPEALS CASE DECISION APPROVALS: ter N 38 RC-1, LOT 5A Ma ° Δ=0°31'32" 49 31'3 in .4 4" R=440.00' 2' E L=4.03' Case number: 1620 S 38 (Ch=S51°28'50"E 4.03') Case dated: July 11, 2016 r te °3 Utility 1'3 ut G 4" Pedestal Case type: Area variance te W re 64 ay Conc .1 7' Requested as per section: 8 8 7 On Distric 0 / P · Section 230-16 C.(5)(b)[4][a] - to increase the height of a building from 50 feet ond Lib W to 60.02 feet er 2 aga Ease ge 12 99' ount ent 5 28 Wid y W t C · Section 230-16 C.(4)(a)[1][b] & [c] - a reduction of the perimeter landscape e strip from 80 feet to 51 feet e ay m a idg eW ate dg r er 0 eri RC-1, LOT 5B pp pp Pe Pe Case number: 1952 ry Δ=3°54'36" da 10 R=440.00' un 14 L=30.03' Case dated: May 15, 2024 o 59' y B (Ch=S53°41'54"E 30.02') 6 Case type: Area variance hwa PROPOSED HOTEL 10 Requested as per section: n 8505 PEPPERIDGE WAY Hig 8 ter ocatio LIVERPOOL, NY 13090 · Section 230-16 C.(5)(b)[4][a] - to increase the height of a building from 50 feet erly in Ma L est 12" imate to 55 feet thw Wa Sou x · Section 230-16 C.(4)(a)[1][b] & [c] - a reduction of the perimeter landscape pro Ap strip from 80 feet to 28.3 feet · Section 230-21 E. - a reduction in the required parking spaces from the 14 required 243 to 206 7 9 11 8 No. Submittal / Revision App'd. By Date 9 13 6 10 9 9 12 13 OVERALL SITE LAYOUT PLAN Designed By: Drawn By: Checked By: AMV/CKZ AMV/CKZ BFB Issue Date: Project No: Scale: 04/12/2024 084440 AS SHOWN Drawing No.: C-101 Page 70 of 156 Page 71 of 156 Page 72 of 156 Page 73 of 156 MARKET STUDY Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott PEPPERIDGE WAY (CARLING ROAD) LIVERPOOL*, NEW YORK *The site has a Liverpool address, but is actually located in the Town of Clay SUBMITTED TO: PR OPOSED PREPARED BY: Mr. Minesh Patel HVS Consulting & Valuation Visions Hotels Division of TS Worldwide, LLC 333 Metro Park, Suite 201 202 Wrexham Court North Rochester, New York 14623 Tonawanda, New York 14150 +1 (607) 962-9868 +1 (828) 490-2274 March-2025 Page 74 of 156 March 17, 2025 Mr. Minesh Patel Visions Hotels 333 Metro Park, Suite 201 Rochester, New York 14623 Re: Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott Clay, New York HVS Reference: 2025020253 HVS BUFFALO Dear Mr. Patel: 202 Wrexham Court North Tonawanda, New York 14150 Pursuant to your request, we herewith submit our market study pertaining to the +1 (828) 490-2274 above-captioned property. We have inspected the real estate and analyzed the hotel +1 (516) 742-3059 FAX market conditions in the Clay/Liverpool, New York, area. We have studied the www.hvs.com proposed project, and the results of our fieldwork and analysis are presented in this report. We have also reviewed the proposed improvements for this site. We hereby certify that we have no undisclosed interest in the property, and our employment and compensation are not contingent upon our findings. This study is subject to the comments made throughout this report and to all assumptions and limiting conditions set forth herein. TS Worldwide, LLC Christian Cross, Director ccross@hvs.com, +1 (828) 490-2274 Superior results through unrivaled hospitality intelligence. Everywhere. Page 75 of 156 Table of Contents SECTION TITLE PAGE 1. Executive Summary 4 2. Description of the Site and Neighborhood 9 3. Description of the Proposed Improvements 14 4. Market Area Analysis 19 5. Supply and Demand Analysis 35 6. Projection of Occupancy and Average Rate 60 7. Statement of Assumptions and Limiting Conditions 66 Addenda Qualifications Visit Syracuse Letter of Support Page 76 of 156 1. Executive Summary Subject of the The subject of the market study is a site measuring 229,126 square feet (5.26 acres) Market Study that is planned to be improved with an extended-stay lodging facility; the hotel is anticipated to be associated with the Fairfield by Marriott & Residence Inn by Marriott brands. RENDERING OF PROJECT The dual-branded hotel has been designed to help fill the gaps in supply already present in the local area as well as help meet the increased demand that will come as part of the Micron project. The proposed development will convert the currently vacant site into an approximately 103,673-square-foot, four-story hotel. The hotel is expected to include the following: • 80 extended-stay suites with kitchens, operating under the Residence Inn brand, which will help accommodate some of the existing extended-stay demand already in the market, as well as support the increase in demand generated by the Micron project. The Micron project will create extended- stay demand during its construction, as many specialty-skilled workers and contractors will need to be brought in from outside the region to construct this plant. The investment and development of this site is expected to last decades and create demand throughout the duration of its construction; however, even once the project's construction is fully completed, the facility will continue to create extended-stay demand given specialty maintenance and ongoing inspections/reviews that will continue during operations. • 82 standard guest rooms that will operate under the Fairfield Inn & Suites brand, which will primarily cater to transient commercial guests. There is already a really strong demand base for this segment within the local area, so the subject hotel's opening should help accommodate some of the existing demand, thus preventing guests from travelling outside of the local neighborhood to find suitable lodging. Furthermore, the large investment by March-2025 Page 77 of 156 Executive Summary Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 4 Micron will increase the amount of transient commercial demand in the area. Other facilities and amenities that will be included in the project and will support the hotel’s overall offerings include: • 1,900 square-foot pool area • 1,200 square-foot fitness room • 2,600 square-foot outdoor patio with firepits, BBQ grills, heaters, and seating • Guest laundry facility with five washers and five dryers • 400 square-foot flexible meeting room • 400 square-foot recreational room featuring an indoor golf simulator • Expansive multi-functional lobby/lounge • A market suite shop offering snacks, beverages, sundries, frozen meals, and candies The subject site’s location is on Carling Road (also known as Pepperidge Way), Liverpool, New York 13090. Pertinent Dates The date of the report is March 10, 2025. The subject site was inspected by Christian Cross on March 2, 2025. The property is expected to open on January 1, 2027. Franchise Assumptions The proposed subject hotel will reportedly operate as a dual-branded Fairfield by Marriott and Residence Inn by Marriott under a franchise agreement with Marriott International Inc. Syracuse Market Findings The proposed hotel is expected to assist with the overall shortage of hotel rooms in the wider Syracuse market, caused by a multiple of factors including the recent reduction in rooms following the closing of the Sheraton and the Crowne Plaza. The closure of these rooms took 512 rooms out of the downtown market. Hotels in the northern suburbs of Syracuse have historically benefited from compression/overflow demand from the downtown area; however, with the recent closing of these two hotels, that compression is expected to increase. With the closures, the downtown market cannot accommodate the room nights being generated by local demand drivers such Syracuse University, the recently renovated JMA Wireless Dome, The Oncenter/Nicholas J. Pirro Convention Center, SUNY Upstate Medical University, Upstate Golisano Children's Hospital, and Crouse Hospital. While not located in the downtown submarket, Lockheed Martin also created demand throughout the market and has historically partly relied on the available inventory in the downtown submarket. March-2025 Page 78 of 156 Executive Summary Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 5 In addition to room closures (a reduction in supply), several notable projects are planned that will impact hotels throughout the Syracuse market and the wider region (increases in demand), including a $100-billion investment by Micron Technology and $2.25 billion invested in the rerouting of Interstate 81. Clay/Liverpool Submarket A $350-million, 3.7-million-square-foot Amazon fulfilment center was completed in Factors 2022. This project had a created significant demand for hotels within the subject submarket during its construction and it continues to create demand for area hotels. Given the significant demand was generated for hotels within the submarket from that Amazon project, the Micron project is expected to be exponentially more impactful given the large investment and the length of the project. Furthermore, while the Micron project will impact hotels throughout the wider region, the project will actually be located within the proposed subject hotel’s submarket, thus creating demand in this area first, before overflowing and impacting the rest of the wider market and surrounding region. In addition to compression from Downtown Syracuse, this submarket currently benefits from compression from Oswego, given the limited hotel supply in that market. Despite being 30 minutes north of the subject submarket, events at SUNY Oswego and routine scheduled shutdowns at Nine Mile Point Nuclear Station, create demand that exceeds that market’s supply inventory, thus benefiting hotels located proximate to the subject site. However, if no new hotels enter the subject submarket, this demand will be displaced and these guests will need to be accommodated by a different market given the demand that will be generated from Micron. Current occupancy levels suggests that demand for the proposed location and this product type in particular, is strong. The significantly higher occupancy levels reflected by the primarily competitive hotels versus the secondarily competitive hotels suggest there is already demand for more hotel rooms in this location with extended-stay offerings. The weekly occupancy for the overall combined competitive set show there are many nights when the market’s unweighted occupancy exceeds 75%. The primary competitors achieved occupancy levels that were around 23 percentage points higher than the secondary set in the base year, which suggests several (or potentially all) of the primary hotels are likely fully sold out during this time. Following the start of construction of the Micron project, demand will greatly increase which will leave significant room shortages if no new hotels are opened. Given the impact of the Micron project, more hotels will be needed in this market; as such, our stabilized occupancy levels inherently consider new supply entering the market. Considering the massive investment coming from the Micron project and considering the amount of room nights that will be generated, more hotel projects are expected to enter the market, and more hotel rooms will be needed to March-2025 Page 79 of 156 Executive Summary Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 6 accommodate the demand. If no new hotels enter, a notable amount of the new room nights generated by the Micron project will not be able to be accommodated within the market; as such, these guests will have to leave the market to find lodging in surrounding towns, and those markets will benefit from the compression. Scope of Work The methodology used to develop this study is based on the market research and valuation techniques set forth in the textbooks authored by Hospitality Valuation Services for the American Institute of Real Estate Appraisers and the Appraisal Institute, entitled The Valuation of Hotels and Motels,1 Hotels, Motels and Restaurants: Valuations and Market Studies,2 The Computerized Income Approach to Hotel/Motel Market Studies and Valuations,3 Hotels and Motels: A Guide to Market Analysis, Investment Analysis, and Valuations,4 and Hotels and Motels – Valuations and Market Studies.5 1. All information was collected and analyzed by the staff of TS Worldwide, LLC. Information was supplied by the client and/or the property’s development team. 2. The subject site has been evaluated from the viewpoint of its physical utility for the future operation of a hotel, as well as access, visibility, and other relevant factors. 3. The subject property's proposed improvements have been reviewed for their expected quality of construction, design, and layout efficiency. 4. The surrounding economic environment, on both an area and neighborhood level, has been reviewed to identify specific hostelry-related economic and demographic trends that may have an impact on future demand for hotels. 5. Dividing the market for hotel accommodations into individual segments defines specific market characteristics for the types of travelers expected to utilize the area's hotels. The factors investigated include purpose of visit, 1 Stephen Rushmore, The Valuation of Hotels and Motels. (Chicago: American Institute of Real Estate Appraisers, 1978). 2 Stephen Rushmore, Hotels, Motels and Restaurants: Valuations and Market Studies. (Chicago: American Institute of Real Estate Appraisers, 1983). 3 Stephen Rushmore, The Computerized Income Approach to Hotel/Motel Market Studies and Valuations. (Chicago: American Institute of Real Estate Appraisers, 1990). 4 Stephen Rushmore, Hotels and Motels: A Guide to Market Analysis, Investment Analysis, and Valuations (Chicago: Appraisal Institute, 1992). 5 Stephen Rushmore and Erich Baum, Hotels and Motels – Valuations and Market Studies. (Chicago: Appraisal Institute, 2001). March-2025 Page 80 of 156 Executive Summary Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 7 average length of stay, facilities and amenities required, seasonality, daily demand fluctuations, and price sensitivity. 6. An analysis of existing and proposed competition provides an indication of the current accommodated demand, along with market penetration and the degree of competitiveness. Unless noted otherwise, we have inspected the competitive lodging facilities summarized in this report. 7. Documentation for an occupancy and ADR projection is derived utilizing the build-up approach based on an analysis of lodging activity. March-2025 Page 81 of 156 Executive Summary Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 8 2. Description of the Site and Neighborhood The suitability of the land for the operation of a lodging facility is an important consideration affecting the economic viability of a property and its ultimate marketability. Factors such as size, topography, access, visibility, and the availability of utilities have a direct impact on the desirability of a particular site. This site is in the Town of Clay, New York. Topography and The topography of the site is generally flat, and its shape should permit efficient use Site Utility of the site for the building and other improvements, as well as ingress and egress. It is expected that the site will be developed fully with building and site improvements, thus contributing to the overall profitability of the hotel. VIEW OF SUBJECT SITE March-2025 Page 82 of 156 Description of the Site and Neighborhood Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 9 VIEW OF SUBJECT SITE Access and Visibility It is important to analyze the site with respect to regional and local transportation routes and demand generators, including ease of access. The subject site is readily accessible to a variety of local and county roads, as well as state and interstate highways. March-2025 Page 83 of 156 Description of the Site and Neighborhood Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 10 MAP OF REGIONAL ACCESS ROUTES This market is served by a variety of major routes, including interstates and highways, as illustrated on the map. Regional access to/from the Liverpool and Clay area, and the subject site, in particular, is considered very good. Vehicular access to the subject site will be provided by Carling Road (also known as Pepperidge Way). The subject site is located near a busy commercial corridor, Route 31. The proposed subject hotel is anticipated to have adequate signage at the street, as well as on its façade. Overall, the subject site benefits from good accessibility, and the proposed hotel is expected to enjoy good visibility from within its local neighborhood. Airport Access The proposed subject hotel will be served by the Syracuse Hancock International Airport, which is located approximately 6.5 miles to the southeast of the subject site. March-2025 Page 84 of 156 Description of the Site and Neighborhood Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 11 Neighborhood The neighborhood surrounding a lodging facility often has an impact on a hotel's status, image, class, style of operation, and sometimes its ability to attract and properly serve a particular market segment. This section of the report investigates the subject neighborhood and evaluates any pertinent location factors that could affect its future occupancy, average rate, and overall profitability. The neighborhood that surrounds the subject site is one of the northernmost suburbs of the wider Syracuse market. There has been significant growth within this neighborhood in recent years. As will be outlined later in this report, a significant 3.7-million-square-foot Amazon fulfilment center opened in 2022. This project created significant demand during its construction and continues to be an important local economic driver. Furthermore, Route 31 has experience notable commercial development near the subject site, expanding in both directions. Finally, as will also be described in further detail later in the report, the Micron project, which will be located in this area, is expected to have significant impacts on the neighborhood, bringing billions of dollars in investments. The proposed hotel's opening should not only have positive influence on the area, but more lodging will be necessary to help accommodate the influx of demand coming from the Micron project. As will be outlined later in this report, based on the already existing demand in the neighborhood, as well as the limited supply, there is already a need for more hotels as there are many nights where the existing hotels cannot fully accommodate the demand already in the area. With continued investment taking place, most notably the Micron project, this issue is expected to be significantly exasperated if no hotels enter the market. March-2025 Page 85 of 156 Description of the Site and Neighborhood Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 12 MAP OF NEIGHBORHOOD Utilities The subject site is assumed to be served by all necessary utilities. Zoning According to the local planning office, the subject property is zoned as follows: RC- 1 - Regional Commercial District. We assume that all necessary permits and approvals will be secured (including the appropriate liquor license as applicable) and that the subject property will be constructed in accordance with local zoning ordinances, building codes, and all other applicable regulations. Our zoning analysis should be verified before any physical changes are made to the site. March-2025 Page 86 of 156 Description of the Site and Neighborhood Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 13 3. Description of the Proposed Improvements The quality of a lodging facility's physical improvements has a direct influence on marketability, attainable occupancy, and average room rate. The design and functionality of the structure can also affect operating efficiency and overall profitability. This section investigates the subject property's proposed physical improvements and personal property in an effort to determine how they are expected to contribute to attainable cash flows. Project Overview The dual-branded hotel has been designed to help fill the gaps in supply already present in the local area as well as help meet the increased demand that will come as part of the Micron project. The proposed development will convert the currently vacant site into an approximately 103,673-square-foot, four-story hotel. The hotel is expected to include the following: • 80 extended-stay suites with kitchens, operating under the Residence Inn brand, which will help accommodate some of the existing extended-stay demand already in the market, as well as support the increase in demand generated by the Micron project. The Micron project will create extended- stay demand during its construction, as many specialty-skilled workers and contractors will need to be brought in from outside the region to construct this plant. The investment and development of this site is expected to last decades and create demand throughout the duration of its construction; however, even once the project's construction is fully completed, the facility will continue to create extended-stay demand given specialty maintenance and ongoing inspections/reviews that will continue during operations. • 82 standard guest rooms that will operate under the Fairfield Inn & Suites brand, that will primarily cater to transient commercial guests. There is already a really strong demand base for this segment within the local area, so the subject hotel's opening should help accommodate some of the existing demand, thus preventing guests from travelling outside of the local neighborhood to find suitable lodging. Furthermore, the large investment by Micron will increase the amount of transient commercial demand in the area. March-2025 Page 87 of 156 Description of the Proposed Improvements Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 14 Other facilities and amenities that will be included in the project and will support the hotel’s overall offerings include: • 1,900 square-foot pool area • 1,200 square-foot fitness room • 2,600 square-foot outdoor patio with firepits, BBQ grills, heaters, and seating • Guest laundry facility with five washers and five dryers • 400 square-foot flexible meeting room • 400 square-foot recreational room featuring an indoor golf simulator • Expansive multi-functional lobby/lounge • A market suite shop offering snacks, beverages, sundries, frozen meals, and candies Fairfield by Marriott As the second-largest Marriott International brand, having reached a milestone of 1,000 properties in 2019, Fairfield by Marriott is Marriott International's primary economy brand in the upper-midscale tier. Fairfield by Marriott (inclusive of the Fairfield Inn by Marriott and Fairfield Inn & Suites by Marriott) properties offer daily complimentary breakfast, free coffee and tea, free high-speed Wi-Fi, a business center, a swimming pool, same-day laundry service, and fitness rooms at most locations. Primary competitors of the brand include the Hampton by Hilton, Holiday Inn Express & Suites, and Country Inn & Suites by Radisson, among others. As of year-end 2024, there were 1,174 Fairfield by Marriott properties (111,495 rooms) in operation across the United States and Canada. In 2024, the brand's U.S. and Canadian hotels operated at an average occupancy level of 68.9% and an average daily rate (ADR) of $134.73, resulting in an average RevPAR of $92.86. Residence Inn by Marriott Residence Inn by Marriott is Marriott’s upscale, limited-service, extended-stay, all- suite product. Jack DeBoer founded Residence Inn by Marriott in 1973 as the first extended-stay hotel concept aimed at business travelers staying for multiple nights. All Residence Inn by Marriott properties offer a complimentary breakfast, inclusive of hot and healthy items; free grocery delivery service; and a 24/7 market pantry. Other typical brand amenities include a business center or lobby workstation, a guest laundry room, a fitness room, a swimming pool, and meeting space. Many properties also offer an outdoor sport court. Typical competitors of the Residence Inn by Marriott brand include the Homewood Suites by Hilton, Hyatt House, Element by Westin, and Staybridge Suites, among others. As of year-end 2024, there were 873 Residence Inn by Marriott properties (107,249 rooms) in operation across the United States and Canada. In 2024, the brand's U.S. and Canadian hotels March-2025 Page 88 of 156 Description of the Proposed Improvements Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 15 operated at an average occupancy level of 76.5% and an average daily rate (ADR) of $171.36, resulting in an average RevPAR of $131.10. Summary of the Based on information provided by the proposed subject hotel’s development Facilities representatives, the following table summarizes the facilities that are expected to be available at the proposed subject hotel. FIGURE 3-1 PROPOSED FACILITIES SUMMARY Guestroom Configuration Number of Units Res idence Inn Rooms 80 Fairfield by Marriott Rooms 82 Total 162 Food & Beverage Facilities Seating Capacity Breakfas t Dining Area TBD Indoor Meeting & Banquet Facilities Square Footage Meeting Room 400 Amenities & Services Indoor Swimming Pool Golf Simulator Fitnes s Room Market Pantry Outdoor Patio & Barbecue Area Lobby Workstation Gues t Laundry Area Per the plans and renderings provided, the proposed hotel will occupy one four- story building. Surface parking will be located around the building. Other site improvements will include freestanding signage, located at the main entrance to the site, as well as landscaping and sidewalks. Additional signage is expected to be placed on the exterior of the building. The hotel's main entrance is expected to lead into the shared lobby, and the first (ground) floor will house the public areas and the back-of-the-house space. The site and building components appear to be normal for a hotel of this type and should meet the standards for this rapidly expanding market. March-2025 Page 89 of 156 Description of the Proposed Improvements Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 16 TYPICAL RESIDENCE INN BY MARRIOTT GUESTROOM - KITCHEN AREA TYPICAL RESIDENCE INN BY MARRIOTT GUESTROOM March-2025 Page 90 of 156 Description of the Proposed Improvements Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 17 TYPICAL FAIRFIELD INN BY MARRIOTT GUESTROOM ADA and We assume that the property will be built according to all pertinent codes and brand Environmental standards. Moreover, we assume its construction will not create any environmental hazards (such as mold) and that the property will fully comply with the Americans with Disabilities Act. Capital Expenditures Our analysis assumes that the hotel will require ongoing upgrades and periodic renovations after its opening in order to maintain its competitive level in this market and to remain compliant with brand standards. Conclusion Overall, the proposed subject property should offer a well-designed, functional layout of public areas, guestrooms, and back-of-the-house spaces. All typical and market-appropriate features and amenities are expected to be included in the hotel's design. We assume that the property will be constructed in accordance with modern standards for lodging facilities and that the furniture, fixtures, and finishes will be consistent with the property's anticipated positioning as a dual-branded upper-midscale and upscale hotel; moreover, we assume that it will include the appropriate energy-efficient elements and be equipped with the requisite technology and building systems. We further assume that the building will be fully open and operational on the stipulated opening date and will meet all local building codes, as well as market and/or brand standards, and that the hotel staff will be adequately trained to allow for a successful opening, with pre-marketing efforts having introduced the product to the market at least six months in advance of the opening date. March-2025 Page 91 of 156 Description of the Proposed Improvements Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 18 4. Market Area Analysis The economic vitality of the market area and neighborhood surrounding the subject site is an important consideration in forecasting lodging demand and future income potential. Economic and demographic trends that reflect the amount of visitation provide a basis from which to project lodging demand. The purpose of the market area analysis is to review available economic and demographic data to determine whether the local market will undergo economic growth, stabilize, or decline. In addition to predicting the direction of the economy, the rate of change must be quantified. These trends are then correlated based on their propensity to reflect variations in lodging demand, with the objective of forecasting the amount of growth or decline in visitation by individual market segment (e.g., commercial, meeting and group, and leisure). National Economic The local market and economy are influenced by national trends; thus, Overview consideration of these trends is an important premise to this market-area analysis. The U.S. economy was severely affected by the COVID-19 pandemic, as illustrated in the following discussion. The onset of the pandemic resulted in decreased business activity, causing widespread economic hardships, including higher levels of unemployment. The depth and duration of this impact was influenced by the course of the pandemic and the nature and extent of restrictions on business and travel activity; the period of greatest impact was 2020. By all measures, the national economy has recovered from this downturn, having recorded notable subsequent growth, while some select markets and sectors have recorded slower growth and are continuing to recover. Gross domestic product (GDP) is a key measure of a country’s economic health and trends. Research has also identified a high degree of correlation between GDP and lodging demand. For the eight quarters leading up to 2020, GDP quarterly growth ranged between 0.9% and 3.8%, reflecting moderate economic expansion. The impact of the pandemic was considerable in 2020. As shutdowns halted major components of the U.S. economy from mid-March through May, GDP contracted by an annualized rate of 31.2% in the second quarter of 2020, the largest such decline in U.S. history. While shocking, this GDP decline was offset by a significant rebound in economic activity in the third quarter of 2020, greatly moderating the overall impact for the year. The U.S. economy grew by 33.8% on an annualized basis in the third quarter, followed by more modest gains in the five quarters that followed through the end of 2021, with GDP having surpassed the pre-pandemic peak by the first quarter of 2021. A pullback during the first half of 2022 was driven by the trade March-2025 Page 92 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 19 deficit and decreases in government spending and inventory investment, although the decline was offset by gains during the second half of the year. FIGURE 4-1 UNITED STATES GDP GROWTH RATE 40 33.8 $32 30 $30 Annualized % Cha nge 20 $28 GDP (Tri l lions) 10 3.2 2.8 1.9 4.5 6.3 6.7 2.3 6.9 3.2 2.6 2.2 2.1 4.9 3.4 1.6 3.0 3.1 2.3 2.4 $26 0 $24 -10 -5.1 -1.6 -0.6 -20 $22 -30 $20 -40 -31.2 $18 2019 2020 2021 2022 2023 2024 Annualized % Change GDP (Trillions) Sources: tradingeconomics.com, Bureau of Economic Analysis The positive trend continued through 2023 and 2024, registering 2.5% and 2.3% increases for the year, respectively. According to the January 30, 2025, report from the Bureau of Economic Analysis, "The increase in consumer spending reflected increases in both services and goods. Within services, the leading contributor to the increase was health care. Within goods, the leading contributors to the increase were recreational goods and vehicles, as well as motor vehicles and parts. Within health care, hospital and nursing home services (notably hospital services) and outpatient services increased, based primarily on Bureau of Labor Statistics (BLS) Current Employment Statistics (CES) employment, earnings, and hours data. The increase in government spending reflected increases in state and local, as well as federal government, spending." After a period of low transaction volume, 2025 is expected to bring a more active deal environment given this recent stability in growth, among other factors. While the possibility of the economy slowing in the near term remains a concern, the long-term outlook for the industry is optimistic. The Wall Street Journal (WSJ) publishes an economy forecasting survey each quarter. Per the latest survey, economists are optimistic that the United States will avoid a recession, reporting an average 22.0% probability that the country would experience a recession during the next twelve months (39.0% was the average probability level for the same question in January 2024). The economy has continued to perform well, and the average probability level continues to decline March-2025 Page 93 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 20 with each survey. Key averages from the latest release are illustrated in the following table. FIGURE 4-2 GDP, CPI, AND UNEMPLOYMENT PREDICTIONS Real GDP, Quarterly Annualized Growth Rate 1st Quarter 2025 2.17 % 2nd Quarter 2025 2.00 3rd Quarter 2025 1.95 4th Quarter 2025 1.95 Real GDP, Year-Over-Year Growth Rate 2025 2.00 % 2026 2.00 2027 2.04 CPI, Year-Over-Year Change June 2025 2.56 % December 2025 2.69 June 2026 2.66 December 2026 2.57 Unemployment, Annual Level June 2025 4.24 % December 2025 4.26 June 2026 4.21 December 2026 4.19 Source: Wall Street Journal Economic Forecasting Survey, January 2025 Driven by supply-chain disruptions and pent-up consumer demand, prices for most goods and services increased substantially in the wake of the pandemic; the CPI increased by 7.0% in 2021 and 6.5% in 2022. The Fed addressed inflation through successive interest-rate hikes (seven in 2022, and another four in 2023), and the pace of inflation decelerated, falling to the low 3.0% range by the end of 2023. While inflation had increased to 3.5% by March 2024, it has illustrated a slow and gradual decline since this point, registering a relatively low 2.4% as of September 2024. In September, the Fed cut the federal funds rate for the first time since the COVID-19 pandemic, acknowledging the positive economic data and lower inflation in recent months, and two additional cuts followed in November and December. Prior to the September meeting, the target rate was between 5.25% and 5.5%. As of early 2025, it now stands between 4.25% and 4.5%. No change was made to the lending rate during the Fed's January 2025 meeting. March-2025 Page 94 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 21 The recent successive increases in GDP, lower inflation levels, recent cuts to the Fed rate, and continued strong job growth paint a positive picture of the U.S. economy. While the probability of a recession is low, it is unclear how unfolding policies of the new administration will impact the economy. Nevertheless, 2025 is expected to be an improving year for the hotel industry, overall, and transaction activity should also intensify. Per the WSJ survey, unemployment levels are anticipated to remain relatively stable, hovering near the 4.3% mark. In the October 2024 survey (no questions were posed for the January 2025 survey), the economists also opined on potential changes in metrics based on the election outcome. Most believe that inflation would increase under a Republican administration, due in large part to proposed tariffs. However, the WSJ reported that administration's influence over the economy is nevertheless limited, and more important factors are the business cycle, external shocks (such as the price of oil), and the Fed's interest rate policy. Accordingly, economists surveyed expect inflation to remain somewhat elevated, at just over 2.5% by June 2025, followed by an uptick, rising to roughly 2.7% by the end of this year. Within the hospitality industry, labor availability and costs remain a concern for hotel operators, although these issues have diminished somewhat since the height of the pandemic. Inflation benefited the industry by supporting strong ADR growth in most markets but also resulted in increased expenses, which put pressure on profitability. Inflation has now moderated significantly and is approaching the Fed’s target of 2.0%, considered a positive factor. Lastly, the news regarding recent 2024 GDP growth and the resilience of the economy as a whole should support continued growth in lodging demand, particularly in the commercial and group segments. In preparing this report, we have considered the impact of these factors on the lodging and investment markets to the best of our ability. However, our analysis only considers what is known at the time of the effective date of the report, and there is a high degree of uncertainty currently influencing the market and the economy. Market Area Definition The market area for a lodging facility is the geographical region where the sources of demand and the competitive supply are located. The subject site is located in the Town of Clay, the county of Onondaga, and the state of New York. The subject property’s market area can be defined by its Combined Statistical Area (CSA): Syracuse-Auburn, NY. The CSA represents adjacent metropolitan and micropolitan statistical areas that have a moderate degree of employment interchange. Micropolitan statistical areas represent urban areas in the United States based around a core city or town with a population of 10,000 to 49,999; the March-2025 Page 95 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 22 MSA requires the presence of a core city of at least 50,000 people and a total population of at least 100,000 (75,000 in New England). The following exhibit illustrates the market area. MAP OF MARKET AREA Economic and A primary source of economic and demographic statistics used in this analysis is the Demographic Review Complete Economic and Demographic Data Source published by Woods & Poole Economics, Inc.—a well-regarded forecasting service based in Washington, D.C. Using a database containing more than 900 variables for each county in the nation, Woods & Poole employs a sophisticated regional model to forecast economic and demographic trends. Historical statistics are based on census data and information published by the Bureau of Economic Analysis. Projections are formulated by Woods & Poole, and all dollar amounts have been adjusted for inflation, thus reflecting real change. These data are summarized in the following table. March-2025 Page 96 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 23 FIGURE 4-3 ECONOMIC AND DEMOGRAPHIC DATA SUMMARY Avg. Annual Compounded Chg. 2010 2020 2024 2029 2010-20 2010-24 2024-29 Resident Population (Thousands) Ononda ga County 467.9 474.2 468.4 470.0 0.1 % 0.0 % 0.1 % Syra cus e, NY MSA 663.5 659.6 653.5 655.2 (0.1) (0.1) 0.1 Syra cus e-Auburn, NY CSA 743.4 735.7 728.0 729.7 (0.1) (0.1) 0.0 Sta te of New York 19,419.9 20,104.7 19,616.5 19,814.9 0.3 0.1 0.2 Uni ted Sta tes 309,382.3 331,526.9 337,214.9 348,565.1 0.7 0.6 0.7 Per-Capita Personal Income* Ononda ga County $44,350 $55,236 $55,071 $58,769 2.2 1.6 1.3 Syra cus e, NY MSA 41,929 52,617 52,145 55,655 2.3 1.6 1.3 Syra cus e-Auburn, NY CSA 41,352 52,044 51,621 55,040 2.3 1.6 1.3 Sta te of New York 53,670 66,790 69,776 76,210 2.2 1.9 1.8 Uni ted Sta tes 44,807 56,530 59,191 63,789 2.4 2.0 1.5 W&P Wealth Index Ononda ga County 95.3 94.1 90.2 89.5 (0.1) (0.4) (0.2) Syra cus e, NY MSA 90.6 89.8 85.6 84.9 (0.1) (0.4) (0.2) Syra cus e-Auburn, NY CSA 89.5 89.0 84.8 84.1 (0.1) (0.4) (0.2) Sta te of New York 114.8 113.8 113.7 115.0 (0.1) (0.1) 0.2 Uni ted Sta tes 100.0 100.0 100.0 100.0 0.0 0.0 0.0 Food and Beverage Sales (Millions)* Ononda ga County $752 $885 $1,114 $1,246 1.6 2.8 2.3 Syra cus e, NY MSA 969 1,120 1,413 1,577 1.5 2.7 2.2 Syra cus e-Auburn, NY CSA 1,042 1,200 1,515 1,691 1.4 2.7 2.2 Sta te of New York 34,723 44,218 54,158 59,693 2.4 3.2 2.0 Uni ted Sta tes 502,827 611,998 777,882 881,337 2.0 3.2 2.5 Total Retail Sales (Millions)* Ononda ga County $7,544 $8,479 $9,570 $10,212 1.2 1.7 1.3 Syra cus e, NY MSA 9,662 10,997 12,446 13,269 1.3 1.8 1.3 Syra cus e-Auburn, NY CSA 10,619 11,974 13,544 14,437 1.2 1.8 1.3 Sta te of New York 279,751 347,195 389,587 418,215 2.2 2.4 1.4 Uni ted Sta tes 4,638,710 5,826,739 6,781,526 7,456,593 2.3 2.7 1.9 * Inflation Adjusted Source: Woods & Pool e Economi cs , Inc. March-2025 Page 97 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 24 The U.S. population grew at an average annual compounded rate of 0.6% from 2010 through 2024. The county’s population has grown more slowly than the nation’s population; the average annual growth remained stagnant between 2010 and 2024 reflecting stability in the area. Per-capita personal income increased slowly, at 1.6% on average annually for the county between 2010 and 2024. Local wealth indexes have remained stable in recent years, registering a modest 90.2 level for the county in 2024. Food and beverage sales totaled $1,114 million in the county in 2024, versus $752 million in 2010. This reflects a 2.8% average annual change. The pace of growth is anticipated to be 2.3% through 2029. The retail sales sector demonstrated an annual increase of 1.7% from 2010 to 2024. An increase of 1.3% average annual change is expected in county retail sales through 2029. Workforce The characteristics of an area's workforce provide an indication of the type and Characteristics amount of transient visitation likely to be generated by local businesses. Sectors such as finance, insurance, and real estate (FIRE); wholesale trade; and services produce a considerable number of visitors who are not particularly rate sensitive. The government sector often generates transient room nights, but per-diem reimbursement allowances often limit the accommodations selection to budget and mid-priced lodging facilities. Contributions from manufacturing, construction, transportation, communications, and public utilities (TCPU) employers can also be important, depending on the company type. The following table sets forth the county workforce distribution by business sector in 2010, 2020, and 2024, as well as a forecast for 2029. March-2025 Page 98 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Liverpool*, New York 25 FIGURE 4-4 HISTORICAL AND PROJECTED EMPLOYMENT (000S) Avg. Annual Compounded Chg. Percent Percent Percent Percent Industry 2010 of Total 2020 of Total 2024 of Total 2029 of Total 2010-2020 2020-2024 2024-2029 Fa rm 1.1 0.4 % 1.1 0.4 % 1.1 0.4 % 1.1 0.3 % 0.1 % 0.7 % (0.4) % Fores try, Fi s hi ng, Rel a te d Acti vi ti es And Othe r 0.2 0.1 0.3 0.1 0.3 0.1 0.3 0.1 0.8 (0.1) 1.2 Mi ni ng 0.3 0.1 0.2 0.1 0.1 0.0 0.1 0.0 (4.9) (13.0) 2.1 Uti l i ti es 1.7 0.6 2.4 0.8 2.6 0.8 2.5 0.8 3.6 1.5 (0.4) Cons tructi on 12.9 4.3 13.5 4.6 14.1 4.4 14.0 4.3 0.4 1.2 (0.2) Ma nufa cturi ng 22.1 7.4 19.6 6.7 20.7 6.5 20.2 6.2 (1.2) 1.4 (0.5) Tota l Tra de 46.0 15.4 40.3 13.7 43.1 13.5 42.5 13.1 (1.3) 1.6 (0.2) Whol es a l e Tra de 14.4 4.8 11.7 4.0 13.3 4.2 13.1 4.0 (2.0) 3.2 (0.4) Reta i l Tra de 31.6 10.6 28.6 9.7 29.8 9.3 29.5 9.1 (1.0) 1.0 (0.2) Tra ns porta tion And Wa rehous i ng 10.0 3.3 14.1 4.8 17.8 5.6 17.5 5.4 3.5 6.1 (0.4) Informa ti on 5.1 1.7 4.0 1.4 4.2 1.3 4.2 1.3 (2.4) 1.6 (0.3) Fi na nce And Ins ura nce 18.7 6.3 18.1 6.1 19.6 6.1 18.9 5.8 (0.4) 2.0 (0.6) Re a l Es ta te And Renta l And Lea s e 10.6 3.5 12.6 4.3 15.7 4.9 18.0 5.5 1.7 5.8 2.7 Tota l Se rvi ces 127.0 42.4 127.2 43.2 138.1 43.3 143.8 44.3 0.0 2.1 0.8 Profes s i ona l And Techni ca l Servi ces 19.7 6.6 20.6 7.0 21.2 6.6 22.0 6.8 0.4 0.6 0.8 Ma na gement Of Compa ni es And Enterpri s es 2.9 1.0 4.9 1.6 5.3 1.7 5.3 1.6 5.3 2.1 0.0 Admi ni s tra ti ve And Wa s te Servi ces 17.1 5.7 15.1 5.1 16.7 5.2 16.7 5.1 (1.3) 2.5 (0.0) Educa ti ona l Servi ces 12.5 4.2 13.6 4.6 12.9 4.1 13.6 4.2 0.8 (1.2) 1.0 Hea l th Ca re And Soci a l As s i s ta nce 36.5 12.2 39.0 13.3 40.5 12.7 43.0 13.2 0.7 0.9 1.2 Arts , Enterta i nment, And Recrea ti on 6.3 2.1 4.9 1.7 6.6 2.1 7.4 2.3 (2.4) 7.6 2.3 Accommoda ti on And Food Servi ces 18.8 6.3 15.7 5.3 20.6 6.5 21.7 6.7 (1.8) 7.0 1.0 Other Servi ces , Except Publ i c Admi ni s tra ti on 13.2 4.4 13.3 4.5 14.3 4.5 14.2 4.4 0.1 1.8 (0.1) Tota l Government 43.4 14.5 40.9 13.9 41.4 13.0 41.7 12.8 (0.6) 0.3 0.2 Federa l Ci vi l i a n Governme nt 4.5 1.5 4.8 1.6 4.5 1.4 4.6 1.4 0.6 (1.3) 0.4 Federa l Mi l i ta ry 1.0 0.3 0.9 0.3 0.9 0.3 0.9 0.3 (1.1) (0.2) 0.0 Sta te And Loca l Government 37.9 12.7 35.2 12.0 36.0 11.3 36.2 11.2 (0.7) 0.5 0.1 TOTAL 299.2 100.0 % 294.2 100.0 % 318.9 100.0 % 324.9 100.0 % (0.2) % 2.0 % 0.4 % MSA 374.0 — 365.3 — 394.9 — 402.0 — (0.2) % 2.0 % 0.4 % U.S. 172,901.7 — 195,286.6 — 218,894.3 — 232,833.6 — 1.2 2.9 1.2 Source: Woods & Pool e Economi cs , Inc. March-2025 Page 99 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 26 The preceding data illustrate the long-term employment trends in this market, including the recent impact of the pandemic and the subsequent recovery. Forecasts developed by Woods & Poole Economics, Inc. anticipate that total employment in the county will change by 0.4% on average annually through 2029. The trend is below the forecast rate of change for the United States as a whole during the same period. Radial Demographic The following table reflects radial demographic trends for our market area Snapshot measured by three points of distance from the subject site. March-2025 Page 100 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 27 FIGURE 4-5 DEMOGRAPHICS BY RADIUS 0.00 - 1.00 miles 0.00 - 3.00 miles 0.00 - 5.00 miles Population 2030 Projection 6,605 29,270 69,638 2025 Estimate 6,513 29,160 69,711 2020 Census 6,500 29,446 70,865 Percent Change: 2025 to 2030 1.4% 0.4% -0.1% Percent Change: 2020 to 2025 0.2% -1.0% -1.6% Households 2030 Projection 2,708 11,745 29,144 2025 Estimate 2,673 11,669 29,030 2020 Census 2,713 11,801 29,330 Percent Change: 2025 to 2030 1.3% 0.7% 0.4% Percent Change: 2020 to 2025 -1.5% -1.1% -1.0% Income 2025 Est. Average Household Income $120,605 $128,070 $116,197 2025 Est. Median Household Income 94,538 95,524 88,329 2025 Est. Civ. Employed Pop 16+ by Occupation Architecture/Engineering 117 532 1,196 Arts/Design/Entertainment/Sports/Media 27 239 886 Building/Grounds Cleaning/Maintenance 55 394 850 Business/Financial Operations 365 1,231 2,657 Community/Social Services 69 342 690 Computer/Mathematical 138 475 1,454 Construction/Extraction 110 374 1,016 Education/Training/Library 343 1,538 3,251 Farming/Fishing/Forestry 11 18 21 Food Preparation/Serving Related 161 611 1,596 Healthcare Practitioner/Technician 247 1,197 3,081 Healthcare Support 45 290 950 Installation/Maintenance/Repair 103 404 921 Legal 45 138 287 Life/Physical/Social Science 52 149 301 Management 519 2,023 4,150 Office/Administrative Support 510 1,788 4,150 Production 80 615 1,421 Protective Services 34 281 789 Sales/Related 299 1,568 3,605 Personal Care/Service 46 191 680 Transportation/Material Moving 181 897 2,408 Source: Environics Analytics March-2025 Page 101 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 28 This source reports a population of 69,711 and 29,030 households within a five- mile radius of the subject site. The average household income within this radius is reported at $116,197, while the median is $88,329. Unemployment The following table presents historical unemployment rates for the proposed Statistics subject hotel’s market area. FIGURE 4-6 UNEMPLOYMENT STATISTICS Year County MSA State U.S. 2014 5.6 % 6.1 % 6.3 % 6.2 % 2015 4.9 5.4 5.3 5.3 2016 4.5 4.9 4.9 4.9 2017 4.7 5.1 4.7 4.4 2018 4.0 4.3 4.1 3.9 2019 3.9 4.3 4.0 3.7 2020 8.0 8.1 9.8 8.1 2021 5.0 5.0 7.1 5.4 2022 3.4 3.5 4.3 3.6 2023 3.5 3.7 4.2 3.6 Recent Month - Dec 2023 3.9 % 4.2 % 4.4 % 3.7 % 2024 3.3 3.5 4.1 4.1 Source: U.S. Burea u of La bor Stati s ti cs Prior to the pandemic, U.S. unemployment levels were firmly below the 4.6% level recorded in 2006 and 2007, the peak years of the economic cycle prior to the Great Recession. The national unemployment rate during the months leading up to the COVID-19 pandemic were in the 3.5–3.7% range, reflecting a trend of stability and strength. However, in April 2020, after the onset of the pandemic, unemployment rose to 14.7%, while employment dropped by 20.7 million. Steady gains in employment have been registered since that time; most recently, the national unemployment rate was 4.0% in January 2025. Rises in employment of 261,000, 307,000, and 143,000 people were registered in November, December, and January, respectively. In January, the most significant gains were reported in the health care, retail trade, and social-assistance sectors. Locally, the unemployment rate was 3.5% in 2023; for this same area in 2024, the most recent month’s unemployment rate was registered at 3.3%, versus 3.9% for March-2025 Page 102 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 29 the same month in 2023. As illustrated in the foregoing table, unemployment declined in 2015, and this positive trend generally continued through 2019. Economic development officials noted that local employment last decade was largely supported by the healthcare and education sectors. However, unemployment data from 2020 illustrate a sharp increase given the effects of the COVID-19 pandemic and related global economic crisis, which included massive furloughs/layoffs. Unemployment then declined in 2021 as the economy began to rebound, and this trend continued in 2022 and remained fairly stable in 2023. The most recent comparative period shows where the local market stands in 2024, relative to the same month of 2023, reflecting continued improvement. Major Business and Providing additional context for understanding the nature of the regional economy, Industry the following table presents a list of the major employers throughout central New York. FIGURE 4-7 MAJOR EMPLOYERS Largest Employer - Central New York* American Food & Vending INFICON Sodexo American Red Cross JADAK Technologies Spectrum Anaren Labratory Alliance of Central New York, LLC SRC, Inc. Anheuser Busch Lakeview Amphitheater Stickley Inc. Aramark Lockheed Martin St. Joseph's Hospital AXA Equitable Liberty Resources Suburban Propane Birnie Bus Loretto Sutherland Global BNY Mellon Lowes Syracuse City School District Bristol-Myers Squibb Marquardt Switches Syracuse University Byrne Dairy Marriott Syracuse Downtown Syracuse VA Medical Center Cardinal Health McDonald's Target Catholic Charities of Onondaga County Mirbeau Inn & Spa Tessy Cintas National Grid Thompson & Johnson Crouse Hospital Novelis Tops Markets CXtec NYS Thruway Authority Turning Stone Resort & Casino Del Lago Resort & Casino O'Brien & Gere United Parcel Service Destiny USA Peace Inc. Upstate University Hospital DOT Foods POMCO United Postal Service DUMAC Business Systems Price Chopper Verizon Dunkin' Donuts Rapid Response Monitoring W.B. Mason EATON Crouse Hinds Raymour & Flanigan Walmart Excellus BlueCross BlueShield Rescue Mission Alliance Wegmans First Student Roman Catholic Diocese Welch Allyn G.A. Braun Inc ShoreGroup W.I.S. International G&C Foods * Listed Aphetically Source: CNY Works, 2024 March-2025 Page 103 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 30 Syracuse University is a private research institution that is continually ranked among the top 100 National Universities by U.S. News and World Report. SUNY Upstate Medical University is the only academic medical center in the region and is complemented by the larger Upstate University Health System. Other area companies and entities within the healthcare and education sectors include Bristol- Myers Squibb, KPH Healthcare Services, Le Moyne College, Loretto Health and Rehabilitation Center, Norwell Health, SUNY College of Environmental Science and Forestry, Syracuse VA Medical Center, Trinity Health, and Welch Allyn. Lockheed Martin, an aerospace and defense company, maintains a facility in nearby Salina. Lockheed's recent projects, both announced in 2019, include a $600-million U.S. Navy contract to provide radar systems for the E-2D Advanced Hawkeye aircraft and the $297-million U.S. Navy contract to provide radar systems for new U.S Navy vessels. Furthermore, in July 2023, groundbreaking occurred for the Interstate 81 Viaduct project. This $2.25 billion project will demolish the existing elevated highway through downtown Syracuse and reroute traffic to surface roads, as well as re-direct through traffic to Interstate 481 which will receive updates. Within the area specifically housing the site of the proposed hotel, a $350-million, 3.7-million-square-foot Amazon fulfilment center was completed in 2022. This project created 1,500 jobs and is one of the largest warehouses in the world. In October 2022, Micron Technology announced a $100-billion semiconductor fabrication facility that will also be located in the town of Clay. According to an economic impact study sponsored by New York State's Empire State Development agency and completed by completed by REMI, Inc., this project is expected to create 50,000 new permanent jobs by 2055, including jobs directly created at Micron but also including jobs at suppliers, contractors, and other supporting companies. Construction was originally set to start in 2023 but due to delays related to a federal environmental review, construction is now set to start in November 2025 with the first phase being operational in 2028. It was announced in December 2024 that this project, which is New York State's largest private investment, that an additional $6.1 billion in federal funding was finalized. Convention Activity A convention center serves as a gauge of visitation trends to a particular market. Convention centers also generate significant levels of demand for area hotels and serve as a focal point for community activity. Typically, hotels within the closest proximity to a convention center—up to three miles away—will benefit the most. Hotels serving as headquarters for an event benefit the most by way of premium rates and hosting related banquet events. During the largest conventions, peripheral hotels may benefit from compression within the city as a whole. March-2025 Page 104 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 31 The three-city-block Oncenter Complex comprises the War Memorial building, the Nicholas J. Pirro Convention Center, and the John H. Mulroy Civic Center. The War Memorial building includes an arena, exhibition hall, and meeting rooms totaling 91,000 square feet on three levels. The convention center maintains an additional 99,000 square feet of banquet, meeting, and ballroom space that connects to the John H. Mulroy Civic Center. The civic center features three distinctly different theaters, including the 57-foot-wide stage in the Carrier Theater. The complex buildings are connected via interior walkways, including interior access to the 1,000-car parking garage. Usage statistics for this facility were unavailable upon request. However, reports from the market reflect that the facility is highly utilized by groups such as local professional associations and trade shows. Officials noted that the recent closing of the Sheraton and the Crowne Plaza limits the events that will be hosted at the Oncenter given the market no longer has sufficient room supply to accommodate larger groups looking to host events in Syracuse. As such, there is significant need for more hotel rooms within the wider Syracuse market. Airport Traffic Airport passenger counts are important indicators of lodging demand. Depending on the type of service provided by a particular airfield, a sizable percentage of arriving passengers may require hotel accommodations. Trends showing changes in passenger counts also reflect local business activity and the overall economic health of the area. Syracuse Hancock International Airport (SYR) serves the central New York State area. The airport underwent a one-year, $62.4-million renovation that was completed in October 2018; upgrades included a redesign of the terminal's interior and exterior, the addition of an aviation history museum, and the construction of a pedestrian bridge. In 2020, the taxi reconfiguration project took place, while in September 2021, a massive rehabilitation project of the main runway was completed. In September 2022, a $20-million state grant was announced that will be used to expand and modernize one of the airport's two passenger terminals. In early 2023, the airport was awarded $8.6 million from the 2021 federal infrastructure bill to replace the terminal's HVAC systems, siding, and windows. The following table illustrates recent operating statistics for the Syracuse Hancock International Airport, which is the primary airport facility serving the proposed subject hotel’s submarket. March-2025 Page 105 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 32 FIGURE 4-8 AIRPORT STATISTICS - SYRACUSE HANCOCK INTERNATIONAL AIRPORT Passenger Percent Percent Year Traffic Change* Change** 2015 2,007,854 — — 2016 2,004,066 (0.2) % (0.2) % 2017 2,074,878 3.5 1.7 2018 2,315,933 11.6 4.9 2019 2,583,193 11.5 6.5 2020 884,390 (65.8) (15.1) 2021 1,695,193 91.7 (2.8) 2022 2,530,188 49.3 3.4 2023 2,855,382 12.9 4.5 2024 3,004,747 5.2 4.6 *Annual average compounded percentage change from the previous year **Annual average compounded percentage change from first year of data Source: Syracus e Hancock International Airport This facility recorded 3,004,747 passengers in 2024. The change in passenger traffic between 2023 and 2024 was 5.2%. The average annual change during the period shown was 4.6%. The significant increases in passenger traffic counts in 2018 and 2019 can be attributed in large part to more service by major air carriers in response to stronger economic conditions and a rise in demand. Several airlines either increased the number of flights in/out of the airport or added seats to their existing flights. Additionally, Frontier Airlines began commercial service to/from ten locations throughout the United States and Puerto Rico in July 2018. Data from 2020 illustrate a substantial decline given the impact of the COVID-19 pandemic and the travel restrictions that were implemented. The number of passengers traveling through SYR started to decline significantly in March 2020, with some airlines canceling routes, although passenger numbers slowly started to improve in June 2020. Data from 2021 and 2022 show a notable rebound due in part to new airlines starting service out of SYR. In November 2021, Southwest began servicing the Syracuse Hancock International Airport, and in June 2022, Breeze Airways, a low- cost carrier, had its inaugural flight out of SYR. The year-end 2023 data exceeded the pre-pandemic levels, and 2024 data show continued growth. March-2025 Page 106 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 33 Tourist Attractions The subject market benefits from a variety of tourism and leisure attractions in the area. Leisure demand generators include the Destiny USA super-regional shopping and entertainment complex, Oncenter Complex, NBT Bank Stadium, New York State Fairgrounds, Syracuse University, Rosamond Gifford Zoo at Burnet Park, and the JMA Wireless Dome, which recently completed upgrades. With the recent upgrades at the JMA Dome, larger acts have been coming to Syracuse, often selling out hotels throughout the market. Per our market interviews and research, no major changes related to these attributes of the market are expected in the near future. Conclusion This section discussed a wide variety of economic indicators for the pertinent market area. The market area is experiencing a period of economic recovery and growth, spurred by the recent announcement of Micron Technology's $100-billion semiconductor fabrication facility. Furthermore, many of the corporations or institutions that support this area, such as Lockheed Martin and Syracuse University, are renowned entities working with a multitude of clients. The outlook for the market area is positive. March-2025 Page 107 of 156 Market Area Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 34 5. Supply and Demand Analysis In the lodging industry, price varies directly, but not proportionately, with demand and inversely, but not proportionately, with supply. Supply is measured by the number of guestrooms available, and demand is measured by the number of rooms occupied; the net effect of supply and demand toward equilibrium results in a prevailing price, or average daily rate (ADR). The purpose of this section is to investigate current supply and demand trends, as indicated by the current competitive market, and to set forth a basis for the projection of future supply and demand growth. Definition of Subject The subject site is located in the greater Syracuse lodging market; within this Hotel Submarket greater market, the direct submarket that will include the proposed subject hotel is known as the Liverpool/Clay area. In our analysis of primarily competitive hotels, we considered the three hotels most proximate to the subject site, as well as two other hotels that offer an upscale extended-stay product offering. We have considered five additional hotels based on proximity; however, while these hotels each have their own demand drivers that benefit them specifically, these secondarily competitive hotels also rely on overflow demand from other nearby submarkets, such as the subject submarket and the downtown submarket. National Trends A hotel’s local lodging market is most directly affected by the supply and demand Overview trends within the immediate area. However, individual markets are also influenced by conditions in the national lodging market. We have reviewed national lodging trends to provide a context for the forecast of the supply and demand for the proposed subject hotel’s competitive set. STR is an independent research firm that compiles data on the lodging industry, and this information is routinely used by typical hotel buyers. The following STR diagram presents annual hotel occupancy, ADR, and rooms revenue per available room (RevPAR) data since 1989. RevPAR is calculated by multiplying occupancy by ADR and provides an indication of how well rooms revenue is being maximized. March-2025 Page 108 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 35 FIGURE 5-1 NATIONAL OCCUPANCY, ADR, AND REVPAR TRENDS RevPAR Average Rate Occupancy $160 70.0% $140 60.0% $120 50.0% $100 40.0% $80 30.0% $60 20.0% $40 $20 10.0% $0 0.0% 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: STR The preceding chart illustrates the impact of the recessions of the early 1990s, 2000s, the financial crisis of 2008/09, and the 2020/21 pandemic on the U.S. lodging industry. In each case, the downturn caused lodging demand to drop, resulting in an occupancy decline. The aggregate ADR also fell, as hoteliers used price as a marketing tool to attract demand and support occupancy levels. As occupancy recovered, ADR growth resumed, although the ADR recovery lagged somewhat behind occupancy levels, as price discounts contributed to the initial recovery of demand. Following the financial crisis of the Great Recession, occupancy fell by over eight points, and ADR declined by 5.9%, resulting in an 18.3% decrease in RevPAR. The market recovered steadily thereafter, with occupancy surpassing the 65.0% mark in 2015, and ADR also consistently growing, albeit at a decelerating pace. March-2025 Page 109 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 36 FIGURE 5-2 NATIONAL OCCUPANCY AND ADR TRENDS Occupancy Average Rate RevPAR 2019 2021 2022 2023 2024 2019 2021 2022 2023 2024 2019 2021 2022 2023 2024 United States 66.0 % 57.5 % 62.6 % 63.0 % 63.0 % $131.23 $124.96 $149.24 $156.00 $158.67 $86.64 $71.88 $93.39 $98.22 $99.94 Region New England 64.7 % 55.5 % 63.4 % 63.3 % 64.1 % $161.08 $155.80 $179.29 $190.86 $195.48 $104.25 $86.54 $113.78 $120.86 $125.36 Middle Atlantic 69.0 55.2 62.6 65.0 66.3 166.27 144.08 179.82 192.15 200.48 114.81 79.56 112.48 124.96 132.92 South Atlantic 67.5 59.8 64.7 64.5 64.9 128.41 130.45 152.61 156.33 157.87 86.68 77.95 98.70 100.89 102.51 E. North Central 61.1 52.3 57.2 57.5 57.9 112.64 105.25 123.33 129.12 133.91 68.82 55.09 70.52 74.26 77.48 E. South Central 62.4 59.5 61.0 61.0 59.1 103.58 104.70 119.73 126.05 127.25 64.61 62.30 73.04 76.88 75.17 W. North Central 58.3 51.0 55.3 56.1 55.7 99.28 97.34 109.00 115.04 118.30 57.88 49.68 60.27 64.51 65.89 W. South Central 62.6 58.1 59.9 60.2 60.2 101.84 95.75 112.13 116.19 119.69 63.77 55.64 67.20 69.92 72.09 Mountain 66.9 59.3 66.3 67.2 66.1 121.89 125.74 153.87 166.61 169.15 81.54 74.59 101.94 111.97 111.85 Pacific 73.6 60.2 66.9 66.6 66.7 171.40 157.79 190.58 196.22 194.67 126.16 95.00 127.42 130.67 129.89 Class Luxury 70.9 % 52.5 % 65.3 % 66.0 % 66.7 % $304.11 $322.00 $376.48 $384.66 $387.74 $215.73 $168.95 $245.93 $153.96 $258.56 Upper-Upscale 72.6 50.0 63.4 67.1 67.6 188.24 175.05 213.96 221.11 223.88 136.67 87.49 135.70 148.29 151.46 Upscale 71.5 59.3 66.8 68.7 69.1 143.60 132.34 156.30 163.81 166.20 102.68 78.42 104.39 112.53 114.80 Upper-Midscale 67.5 61.2 65.7 65.8 65.7 115.91 114.14 128.53 133.40 135.01 78.20 69.83 84.50 87.73 88.68 Midscale 59.5 56.8 59.7 58.7 58.4 95.82 98.83 100.19 101.41 101.85 57.03 56.10 59.83 59.57 59.46 Economy 59.4 58.7 56.4 54.3 53.5 75.50 76.14 77.65 79.32 78.90 44.83 44.72 43.80 43.04 42.24 Location Urban 73.2 % 51.8 % 63.3 % 66.4 % 67.5 % $183.20 $152.81 $196.47 $207.36 $213.04 $134.12 $79.12 $124.44 $137.66 $143.84 Suburban 66.7 59.9 63.8 63.4 63.6 111.26 104.93 126.13 126.32 127.97 74.24 62.90 80.45 80.06 81.34 Airport 73.7 60.3 67.9 69.5 69.4 119.22 104.82 126.57 134.50 135.87 87.85 63.18 85.91 93.43 94.36 Interstate 57.9 57.8 58.5 57.7 57.1 87.86 92.22 100.90 106.58 108.69 50.85 53.31 59.04 61.54 62.01 Resort 70.0 57.7 66.8 68.6 67.8 182.74 209.77 236.76 238.86 239.05 127.85 121.06 158.20 163.82 162.10 Small Town 57.8 56.7 57.5 55.8 55.4 107.26 116.96 124.72 133.63 136.86 61.98 66.34 71.72 74.63 75.86 Chain Scale Luxury 73.8 % 48.0 % 63.1 % 65.8 % 67.7 % $343.02 $383.48 $435.46 $427.97 $426.43 $253.17 $184.12 $274.64 $281.53 $288.49 Upper-Upscale 73.9 48.7 63.9 67.7 68.5 189.25 176.66 215.96 223.19 226.90 139.80 86.11 138.05 151.12 155.53 Upscale 72.6 59.6 67.4 69.2 69.5 142.38 128.62 155.28 161.85 164.20 103.32 76.68 104.58 112.00 114.20 Upper-Midscale 67.5 61.6 65.8 66.1 66.0 112.80 111.14 127.56 132.16 133.95 76.14 68.47 83.93 87.34 88.44 Midscale 58.1 56.5 60.1 59.0 58.7 86.61 89.48 95.19 95.94 96.69 50.30 50.59 57.18 56.65 56.77 Economy 58.7 59.7 57.2 55.0 54.4 63.70 66.88 72.24 72.69 72.12 37.36 39.90 41.34 40.00 39.26 Independents 63.5 56.9 60.0 59.2 58.6 133.08 137.44 155.20 162.24 163.39 84.44 78.24 93.05 96.00 95.81 Source: Year-End STR Lodging Reviews March-2025 Page 110 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 37 FIGURE 5-3 RECENT NATIONAL OCCUPANCY AND ADR TRENDS Occupancy - YTD January Average Rate - YTD January RevPAR - YTD January Percent Change % % % Rms. Rms. 2024 2025 Change 2024 2025 Change 2024 2025 Change Avail. Sold United States 52.0 % 52.5 % 1.0 % $146.21 $151.20 3.4 % $76.00 $79.42 4.5 % 0.6 % 1.7 % Region New England 48.1 % 47.0 % (2.2) % $143.03 $141.37 (1.2) % $68.79 $66.48 (3.4) % 0.0 % (2.2) % Middle Atlantic 51.1 51.9 1.5 150.69 159.06 5.5 77.04 82.50 7.1 0.2 1.7 South Atlantic 56.9 59.2 4.1 152.83 163.18 6.8 86.89 96.62 11.2 0.8 5.0 E. North Central 42.3 42.2 (0.2) 109.86 110.73 0.8 46.51 46.76 0.5 1.0 0.7 E. South Central 45.3 45.2 (2.4) 107.14 108.98 1.7 49.65 49.27 (0.8) 2.0 (0.5) W. North Central 40.3 40.4 0.4 103.11 105.60 2.4 41.54 42.72 2.8 0.2 0.5 W. South Central 52.2 50.9 (2.5) 113.02 113.90 0.8 59.02 57.97 (1.8) 0.8 (1.8) Mountain 57.9 57.5 (0.5) 174.63 176.24 0.9 101.04 101.42 0.4 0.3 (0.2) Pacific 56.1 57.9 3.2 188.71 192.35 1.9 105.88 111.41 5.2 0.2 3.5 Class Luxury 56.6 % 58.2 % 2.8 % $371.04 $396.32 6.8 % $209.97 $230.67 9.9 % 2.3 % 5.2 % Upper-Upscale 56.8 57.4 1.0 212.07 218.24 2.9 120.50 125.19 3.9 0.3 1.3 Upscale 57.6 57.8 0.4 149.51 151.01 1.0 86.06 87.26 1.4 1.4 1.7 Upper-Midscale 53.2 53.4 0.6 120.34 122.05 1.4 63.96 65.24 2.0 1.5 2.1 Midscale 47.2 47.3 0.1 89.86 91.83 2.2 42.44 43.41 2.3 0.3 0.4 Economy 44.2 45.1 1.9 69.91 72.49 3.7 30.92 32.69 5.7 (1.0) 0.9 Location Urban 54.1 % 54.7 % 1.2 % $181.64 $191.11 5.2 % $98.28 $104.62 6.5 % 1.0 % 2.2 % Suburban 52.6 53.2 1.0 115.61 119.02 2.9 60.83 63.26 4.0 0.9 1.9 Airport 61.3 60.8 (0.8) 128.30 131.44 2.5 78.66 79.93 1.6 0.3 (0.5) Interstate 45.0 45.6 1.4 96.20 99.10 3.0 43.26 45.19 4.5 0.8 2.2 Resort 62.8 63.4 1.0 248.37 255.37 2.8 155.88 161.93 3.9 (0.4) 0.6 Small Town 42.0 42.8 1.9 114.05 118.57 4.0 47.95 50.79 5.9 0.4 2.3 Chain Scale Luxury 58.3 % 59.7 % 2.4 % $420.36 $460.02 9.4 % $245.22 $274.69 12.0 % 7.4 % 9.9 % Upper-Upscale 57.7 58.7 1.8 215.09 222.70 3.5 124.02 130.67 5.4 2.0 3.8 Upscale 57.9 58.1 0.3 148.18 150.81 1.8 85.84 87.64 2.1 1.5 1.8 Upper-Midscale 53.5 53.8 0.5 118.96 121.23 1.9 63.63 65.18 2.4 1.6 2.1 Midscale 47.3 47.5 0.3 85.05 88.02 3.5 40.27 41.78 3.8 3.0 3.2 Economy 45.6 46.5 1.9 64.55 67.08 3.9 29.43 31.17 5.9 (1.5) 0.4 Independents 48.2 48.7 0.9 151.53 153.12 1.1 73.09 74.54 2.0 (1.8) (0.9) Source: STR - January 2025 Lodging Review March-2025 Page 111 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Liverpool*, New York 38 The following graph illustrates the performance of the U.S. lodging industry from 2019 through 2024, expressed as a percentage of 2019 levels of occupancy, ADR and RevPAR, demonstrating the pace and pattern of the recovery. FIGURE 5-4 NATIONAL PERFORMANCE COMPARED TO 2019 LEVELS 2019 2021 2022 2023 2024 YTD 2025 160% 140% 120% 100% 80% 60% 40% 20% 0% US Occ US ADR US RevPAR A lodging market’s performance is influenced by changes in supply and demand levels. The following graph illustrates the percentage change in these two metrics for the U.S. lodging industry as a whole since 2003, as reported by STR. March-2025 Page 112 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Liverpool*, New York 39 FIGURE 5-5 HISTORICAL CHANGES IN SUPPLY AND DEMAND – U.S. LODGING INDUSTRY % Change in Supply % Change in Demand 50% 40% 30% 20% Average Demand Growth: 2003-2023: 1.8% 10% 0% -10% -20% -30% -40% Source: STR Excluding fluctuations due to the Great Recession in 2008/09 and the pandemic from 2020 to 2022, supply growth ranged between 0.4% to 2.0%, averaging 1.1% in these years. The pace of supply growth slowed significantly in the two to three years following the downturns in 2001/02, 2008/09, and 2020/21, reflecting the decline in new project-starts during these periods. As the market moved out of these cycles, supply growth accelerated. The impact of the pandemic caused a decline in supply, as hotels temporarily suspended operations or closed, in many cases for conversion to alternate use. The reopening of the temporarily closed properties caused an artificial spike in supply growth. Supply growth in 2023 through early 2025 reflects the high cost of construction, as well as the limited availability of financing for new construction. Thus, the pace of supply growth is expected to remain muted through 2026. The changes in demand, as measured by the number of occupied rooms, display similar patterns. The years following the noted recessionary periods reflect relatively strong growth, as the market recovered from these downturns. Excluding the years of downturn and recovery, demand growth ranged from 1.0% to 4.6%. March-2025 Page 113 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Liverpool*, New York 40 Historical Supply and STR is an independent research firm that compiles and publishes data on the lodging Demand Data industry, routinely used by typical hotel buyers. HVS has ordered and analyzed an STR Trend Report of historical supply and demand data for a group of hotels considered applicable to this analysis for the proposed subject hotels. This information is presented in the following table, along with the market-wide occupancy, ADR, and RevPAR. In response to the travel restrictions and the decline in demand associated with the COVID-19 pandemic, numerous hotels in markets across the nation temporarily suspended operations. During these suspensions, hotels were typically closed to the public, with the majority of staff furloughed, although key management and maintenance staff were retained to preserve the property and prepare for reopening. It is important to note that no hotels in the defined competitive set suspended operations because of the COVID-19 pandemic. The second chart presents the monthly data for 2019 through the year-to-date 2024 period, illustrating the fluctuations in occupancy and ADR. The impact of the pandemic and the timing and pace of the subsequent recovery are reflected in the data. March-2025 Page 114 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Liverpool*, New York 41 FIGURE 5-6 HISTORICAL SUPPLY AND DEMAND TRENDS Average Daily Available Occupied Average Year Room Count Room Nights Change Room Nights Change Occupancy Rate Change RevPAR Change 2017 852 310,980 — 183,216 — 58.9 % $102.89 — $60.62 — 2018 881 321,585 3.4 % 185,737 1.4 % 57.8 100.77 (2.1) % 58.20 (4.0) % 2019 948 346,020 7.6 200,976 8.2 58.1 97.64 (3.1) 56.71 (2.6) 2020 948 346,020 0.0 142,361 (29.2) 41.1 82.41 (15.6) 33.91 (40.2) 2021 948 346,020 0.0 203,828 43.2 58.9 95.42 15.8 56.21 65.8 2022 954 348,225 0.6 226,995 11.4 65.2 114.53 20.0 74.66 32.8 2023 957 349,305 0.3 217,371 (4.2) 62.2 118.79 3.7 73.92 (1.0) 2024 957 349,274 (0.0) 213,881 (1.6) 61.2 127.57 7.4 78.12 5.7 Year-to-Date Through January 2024 957 29,667 — 13,924 — 46.9 $101.98 — $47.87 — 2025 956 29,636 (0.1) % 13,837 (0.6) % 46.7 109.44 7.3 % 51.10 6.8 % Average Annual Compounded Change: 2017 – 2019 5.5 % 4.7 % (2.6) % (3.3) % 2017 – 2024 1.7 2.2 3.1 3.7 2019 – 2024 0.2 % 1.3 % 5.5 % 6.6 % 2021 – 2024 0.3 1.6 10.2 11.6 Competitive Number Year Year Hotels Included in Sample Class Status of Rooms Affiliated Opened Comfort Inn Fa i rgrounds Syracus e Upper Mi ds cal e Cl as s Secondary 110 Jul 1988 Jul 1988 Homewood Sui tes by Hil ton Syra cus e Liverpool Ups ca l e Cl a s s Primary 102 Oct 1991 Oct 1991 Comfort Inn & Sui tes Li verpool Syracus e Upper Mi ds cal e Cl as s Primary 63 Jan 2021 Oct 1998 Candl ewood Sui tes Syracus e-Ai rport Mids ca le Cl a s s Secondary 124 Nov 2003 Nov 2003 Hol i da y Inn Expres s Syracus e Fa i rground Upper Mi ds cal e Cl as s Secondary 87 Dec 2009 Aug 2006 Hol i da y Inn Expres s Syracus e Ai rport Upper Mi ds cal e Cl as s Secondary 95 Ma y 2007 Ma y 2007 Hampton Inn Syra cus e Cl a y Upper Mi ds cal e Cl as s Primary 77 Oct 2007 Oct 2007 Hol i da y Inn Expres s & Sui tes Syra cus e North Ai rport Area Upper Mi ds cal e Cl as s Secondary 71 Jan 2010 Ja n 2010 Staybri dge Sui tes Syra cus e (Li verpool ) Ups ca l e Cl a s s Primary 122 Apr 2011 Apr 2011 TownePl a ce Sui tes Syracus e Li verpool Upper Mi ds cal e Cl as s Primary 105 Sep 2018 Sep 2018 Total 956 Source: STR March-2025 Page 115 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 42 FIGURE 5-7 HISTORICAL SUPPLY AND DEMAND TRENDS (MONTHLY) 2020 2021 2022 2023 2024 2025 Month Occupancy ADR Occupancy ADR Occupancy ADR Occupancy ADR Occupancy ADR Occupancy ADR Janua ry 41.9 % $90.01 39.8 % $76.34 45.6 % $94.13 51.1 % $92.50 46.9 % $101.98 46.7 % $109.44 Februa ry 50.0 92.43 44.6 78.83 56.1 98.55 58.1 97.69 49.6 106.71 — — Ma rch 36.0 88.90 53.4 80.92 64.4 102.10 63.7 108.00 57.3 111.08 — — Apri l 17.3 75.57 52.0 84.60 67.7 106.73 61.4 112.46 62.9 130.05 — — Ma y 22.0 77.75 60.7 95.47 67.9 125.85 65.8 130.64 62.6 140.18 — — June 32.4 79.70 65.0 94.69 71.5 118.04 65.4 121.83 67.7 129.61 — — Jul y 45.4 84.50 72.1 107.38 73.1 126.62 67.0 133.13 70.5 132.43 — — Augus t 56.3 81.75 78.3 109.43 77.3 128.00 76.3 140.10 77.5 145.86 — — September 54.9 81.09 70.0 101.33 74.5 122.47 69.1 127.87 69.6 143.02 — — October 55.6 79.21 67.9 105.47 73.3 128.07 66.8 120.60 69.8 130.16 — — November 44.9 77.22 55.4 93.44 57.1 105.80 55.2 119.10 52.9 122.97 — — December 37.3 74.73 46.5 92.27 52.8 95.61 46.5 101.74 46.4 111.61 — — Annual Averages 41.1 % $82.41 58.9 % $95.42 65.2 % $114.53 62.2 % $118.79 61.2 % $127.57 — — Year-to-Date 41.9 % $90.01 39.8 % $76.34 45.6 % $94.13 51.1 % $92.50 46.9 % $101.98 46.7 % $109.44 Change from 2020 2021 2022 2023 2024 2025 Prior Year Occupancy ADR Occupancy ADR Occupancy ADR Occupancy ADR Occupancy ADR Occupancy ADR Janua ry 5.7 pts -1.4 % -2.1 pts -15.2 % 5.8 pts 23.3 % 5.5 pts -1.7 % -4.2 pts 10.2 % -0.2 pts 7.3 % Februa ry 4.1 -1.2 -5.4 -14.7 11.5 25.0 2.0 -0.9 -8.5 9.2 — — Ma rch -14.1 -5.8 17.4 -9.0 11.0 26.2 -0.7 5.8 -6.4 2.9 — — Apri l -37.2 -19.4 34.7 11.9 15.7 26.2 -6.3 5.4 1.5 15.6 — — Ma y -39.9 -27.7 38.7 22.8 7.2 31.8 -2.1 3.8 -3.2 7.3 — — June -32.8 -16.8 32.6 18.8 6.5 24.7 -6.2 3.2 2.3 6.4 — — Jul y -22.3 -18.4 26.7 27.1 1.0 17.9 -6.1 5.1 3.5 -0.5 — — Augus t -21.4 -24.5 22.0 33.9 -1.0 17.0 -1.0 9.5 1.2 4.1 — — September -12.5 -15.2 15.1 25.0 4.5 20.9 -5.4 4.4 0.5 11.9 — — October -15.8 -18.8 12.4 33.2 5.4 21.4 -6.5 -5.8 3.1 7.9 — — November -9.9 -14.4 10.5 21.0 1.7 13.2 -1.9 12.6 -2.3 3.2 — — December -6.0 -14.8 9.2 23.5 6.3 3.6 -6.3 6.4 0.0 9.7 — — Annual Change -16.9 pts -15.6 % 17.8 pts 15.8 % 6.3 pts 20.0 % -3.0 pts 3.7 % -1.0 pts 7.4 % — — Year-to-Date 5.7 -1.4 % -2.1 -15.2 % 5.8 23.3 5.5 -1.7 -4.2 10.2 -0.2 pts 7.3 % Source: STR March-2025 Page 116 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 43 FIGURE 5-8 HISTORICAL SUPPLY AND DEMAND TRENDS (STR) 400,000 70.0 350,000 60.0 300,000 50.0 Occupancy (%) Room Nights 250,000 40.0 200,000 30.0 150,000 20.0 100,000 50,000 10.0 0 0.0 2017 2018 2019 2020 2021 2022 2023 2024 Available Room Nights Occupied Room Nights Occupancy It is important to note some limitations of the STR data. Hotels are occasionally added to or removed from the sample; furthermore, not every property reports data in a consistent and timely manner. These factors can influence the overall quality of the information by skewing the results, and these inconsistencies may also cause the STR data to differ from the results of our competitive survey. Nonetheless, STR data provide the best indication of aggregate growth or decline in existing supply and demand; thus, these trends have been considered in our analysis. Opening dates, as available, are presented for each reporting hotel on the previous table. The STR data for the competitive set reflect a market-wide occupancy level of 2024 in 61.2%, which compares to 62.2% for 2023. The STR data for the competitive set reflect a market-wide ADR level of $127.57 in 2024, which compares to $118.79 for 2023. These occupancy and ADR trends resulted in a RevPAR level of $78.12 in 2024. In the latter years of last decade, occupancy remained in the high-50s, with ADR hoovering around the $100 mark. In 2020, the COVID-19 pandemic affected the market, similar to the rest of the nation; however, a rebound commenced in the third quarter of 2020, with the occupancy and ADR increasing in 2021. Strong rate and occupancy growth occurred in 2022; however, both dissipated in 2023 due in part to the stabilization of demand generated from by the Amazon fulfillment center. This project, which was completed in 2022, brought an influx of demand during its construction, and while it remains an occupancy driver, its impact is less, now that March-2025 Page 117 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Liverpool*, New York 44 it has opened. Strong rate growth in 2024 led to declines in occupancy levels; however, RevPAR increased that year. The overall outlook for the competitive market is optimistic, given the decrease in the supply of hotels in the downtown submarket, which should create compression for the hotels included in this competitive set. Furthermore, the Micron project is expected to benefit the subject submarket specifically. This STR data looks at all the hotels included in the competitive set, without weighting the competitive level of the hotels included. As noted previously, the hotels deemed to be secondarily competitive each have their own demand drivers that benefit them specifically; however, these hotels also rely on overflow demand from other nearby submarkets including the subject submarket. As will be shown later in the report, the occupancy levels are significantly higher for the primary competitors relative to the overall averages. The following table illustrates the monthly occupancy, ADR, and RevPAR for the competitive set measured as a percentage of 2019 levels. FIGURE 5-9 OCCUPANCY, ADR, AND REVPAR AS A PERCENTAGE OF 2019 LEVELS 2022 2023 2024 2025 Occupancy ADR RevPAR Occupancy ADR RevPAR Occupancy ADR RevPAR Occupancy ADR RevPAR January 108.9 % 104.6 % 113.9 % 122.0 % 102.8 % 125.4 % 112.0 % 113.3 % 126.9 % 111.4 % 121.6 % 135.4 % February 112.1 106.6 119.6 116.2 105.7 122.8 99.3 115.5 114.7 — — — March 178.8 114.8 205.3 176.8 121.5 214.8 159.1 125.0 198.8 — — — April 390.8 141.2 551.8 354.2 148.8 527.0 362.9 172.1 624.5 — — — May 308.4 161.9 499.2 298.7 168.0 501.9 284.2 180.3 512.3 — — — June 220.9 148.1 327.1 201.8 152.9 308.5 209.0 162.6 339.8 — — — July 161.0 149.8 241.3 147.6 157.6 232.6 155.2 156.7 243.3 — — — August 137.4 156.6 215.1 135.6 171.4 232.4 137.7 178.4 245.7 — — — September 135.6 151.0 204.8 125.8 157.7 198.3 126.7 176.4 223.5 — — — October 131.9 161.7 213.3 120.2 152.2 183.0 125.7 164.3 206.6 — — — November 127.2 137.0 174.3 123.0 154.2 189.6 117.9 159.2 187.8 — — — December 141.4 127.9 180.9 124.6 136.1 169.6 124.5 149.3 185.9 — — — Annual Averages 158.4 % 139.0 % 220.2 % 151.3 % 144.1 % 218.0 % 148.8 % 154.8 % 230.4 % — — — Year-to-Date 108.9 104.6 113.9 122.0 102.8 125.4 112.0 113.3 126.9 111.4 % 121.6 % 135.4 % Source : STR SUPPLY The following table summarizes the important operating characteristics of the primary competitors. This information was compiled from personal interviews, inspections, online resources, and our in-house database of operating and hotel facility data. The room count of each secondary competitor has been weighted based on its assumed degree of competitiveness with the Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott. In cases where exact operating data for an individual property (or properties) were not available, we have used these resources, as well as the STR data, to estimate positioning within the market. March-2025 Page 118 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Liverpool*, New York 45 FIGURE 5-10 PRIMARY COMPETITORS – OPERATING PERFORMANCE Est. Segmentation Estimated 2023 Estimated 2024 y Weighted Weighted a ed-S t l erc ia Annual Annual re d C o mm p Number of Room Room Occupancy Yield Exte n L eisu Grou Property Rooms Count Occ. Average Rate RevPAR Count Occ. Average Rate RevPAR Penetration Penetration TownePl ace Sui tes by Ma rri ott 105 60 % 25 % 10 % 5 % 105 70 - 75 % $115 - $120 $85 - $90 105 65 - 70 % $120 - $125 $85 - $90 110 - 120 % 100 - 110 % Syra cus e Liverpool Ha mpton by Hil ton Syracus e 77 65 25 10 0 77 65 - 70 115 - 120 75 - 80 77 70 - 75 120 - 125 85 - 90 110 - 120 110 - 120 Cl ay Comfort Inn & Sui tes Li verpool - 63 60 30 10 0 63 50 - 55 110 - 115 60 - 65 63 60 - 65 115 - 120 70 - 75 100 - 110 85 - 90 Cl ay Homewood Sui tes by Hi lton 102 30 20 5 45 102 70 - 75 130 - 140 100 - 105 102 75 - 80 140 - 150 105 - 110 120 - 130 130 - 140 Syra cus e Liverpool Staybri dge Suites Syra cus e 123 30 20 5 45 123 70 - 75 130 - 140 95 - 100 123 70 - 75 130 - 140 100 - 105 110 - 120 120 - 130 Li verpool Sub-Totals/Averages 470 46 % 23 % 8 % 24 % 470 70.2 % $126.16 $88.62 470 72.8 % $129.06 $94 115 % 116.0 % Seconda ry Competi tors 487 57 % 25 % 9 % 10 % 335 54.4 % $109.88 $59.81 335 50.0 % $125.70 $63 79 % 77.6 % Totals/Averages 957 49 % 24 % 8 % 19 % 805 63.7 % $120.36 $76.62 805 63.3 % $127.95 $81 100 % 100.0 % * Specific occupancy and average rate data were utilized in our analysis, but are presented in ranges in the above table for the purposes of confidentiality. March-2025 Page 119 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 46 FIGURE 5-11 SECONDARY COMPETITORS – OPERATING PERFORMANCE Est. Segmentation Estimated 2023 Estimated 2024 y a Weighted Weighted ed-S t l erc ia Total Annual Annual re d Comm p Exte n Number of Competitive Room Room L ei su Grou Property Rooms Level Count Occ. Average Rate RevPAR Count Occ. Average Rate RevPAR Hol i da y Inn Expres s Ci cero 71 65 % 25 % 10 % 0 % 70 % 50 50 - 55 % $120 - $125 $65 - $70 50 50 - 55 % $130 - $140 $70 - $75 Syra cus e North Ai rport Area Ca ndl ewood Sui tes 124 35 20 5 40 70 87 50 - 55 110 - 115 55 - 60 87 45 - 50 125 - 130 60 - 65 Syra cus e Ai rport Hol i da y Inn Expres s 95 65 25 10 0 70 67 50 - 55 110 - 115 60 - 65 67 50 - 55 125 - 130 60 - 65 Syra cus e Ai rport Hol i da y Inn Expres s 87 65 25 10 0 70 61 60 - 65 110 - 115 70 - 75 61 55 - 60 130 - 140 75 - 80 Syra cus e Fa i rgrounds Comfort Inn Fa i rgrounds 110 60 30 10 0 65 72 45 - 50 95 - 100 45 - 50 72 40 - 45 110 - 115 45 - 50 Totals/Averages 487 57 % 25 % 9 % 10 % 69 % 335 54.4 % $109.88 $59.81 335 50.0 % $125.70 $62.85 * Specific occupancy and average rate data was utilized in our analysis, but is presented in ranges in the above table for the purposes of confidentiality. March-2025 Page 120 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 47 The following map illustrates the locations of the proposed subject hotel and its future competitors. MAP OF COMPETITION March-2025 Page 121 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 48 Supply Changes It is important to consider any new hotels that may have an impact on the proposed subject hotel’s operating performance. Hotels that have recently opened, are under construction, or that may be in the early development stages in the wider Syracuse market are noted below. The list is categorized by the principal submarkets within the city. FIGURE 5-12 AREA DEVELOPMENT ACTIVITY Estimated Expected Number of Qtr. & Year Proposed Hotel Name Rooms Hotel Product Tier Development Stage of Opening Address Propos ed Dua l-Branded Resi decen Inn & Fa i rfiel d by Ma rriott 162 Ups cal e Due Dil igence Period Q1 '27 Ca rl i ng Roa dd, Li verpool, NY Curio Coll ection by Hil ton 245 Upper-Ups ca le Due Dil igence Period Q3 '27 Ha rri s on Street, Syra cus e, NY Syracus e Uni vers i ty Hotel 200 Upper-Ups ca le Due Dil igence Period Q4 '27 Uni vers ity Avenue & Ha rri s on Street, Syra cus e, NY Home2 Suites by Hi lton 110 Upper-Mi ds ca l e Under Cons tructi on Q1 '26 241 Elwood Da vis Roa d, Liverpool , NY Li vAwa y Sui tes Syra cus e 126 Economy Under Cons tructi on Q2 '25 6595 Thomps on Rd, Syra cus e, NY, USA Suburba n Studi os Ea s t Syra cus e 108 Economy Recentl y Opened Q4 '24 6555 Old Coll a mer Roa d, Ea s t Syra cus e, NY Of the hotels listed in the preceding table, we have identified the following new supply that is expected to have some degree of competitive interaction with the proposed subject hotel based on location, anticipated market orientation and price point, and/or operating profile. FIGURE 5-13 NEW SUPPLY Total Weighted Number Competitive Room Estimated Opening Proposed Property of Rooms Level Count Date Development Stage Propos ed Dua l -Branded Fa i rfi el d Inn & Res i dence Inn by Ma 162 rri ott 100 % 162 Ja nua ry 1, 2027 Earl y Devel opment Home2 Sui tes by Hi l ton 110 100 110 Februa ry 1, 2026 Under Cons tructi on Totals/Averages 272 272 The proposed Home2 Suites by Hilton will be similar to the proposed subject hotel in terms of product offering and service level; therefore, this hotel is expected to be fully competitive. A number of other hotels have been proposed for development throughout the market; however, given the speculative nature of these projects, they have only been considered qualitatively in our analysis. Furthermore, while not considering any hotel projects other than the subject hotel and the Home2 Suites by Hilton quantitatively in our analysis, we have considered that given the impact of the Micron project, more hotels will be needed. As such, our stabilized occupancy levels inherently consider new supply entering the market. Considering the massive investment coming from the Micron project and considering the amount of room nights that will be generated, more hotel projects are expected to enter the market March-2025 Page 122 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 49 and more hotel rooms will be needed to accommodate the demand. If no new hotels enter, a notable amount of the new room nights generated by the Micron project will not be able to be accommodated within the market; as such, these guests will have to leave the market to find lodging in surrounding towns, and those markets will benefit from the compression. In response to the travel restrictions and the decline in demand associated with the COVID-19 pandemic, numerous hotels in markets across the nation temporarily suspended operations. During these suspensions, hotels were typically closed to the public, with the majority of staff furloughed, although key management and maintenance staff were retained to preserve the property and prepare for reopening. It is important to note that no hotels in the defined competitive set suspended operations because of the COVID-19 pandemic. While we have taken reasonable steps to investigate proposed hotel projects and their status, due to the nature of real estate development, it is impossible to determine with certainty every hotel that will be opened in the future or what their marketing strategies and effect on the market will be. Depending on the outcome of current and future projects, the operating potential of the proposed subject hotel may be affected. Future improvement in market conditions will raise the risk of increased competition. Our forthcoming forecast of stabilized occupancy and ADR is intended to reflect such risk. Supply Conclusion We have identified various properties that are expected to be competitive to some degree with the Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott. We have also investigated potential increases in competitive supply in this Clay/Liverpool submarket. The Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott should enter a dynamic market of varying product types and price points. Next, we will present our forecast for demand change, using the historical supply data presented as a starting point. DEMAND The following table presents the most recent trends for the subject hotel market as tracked by HVS. These data pertain to the competitors discussed previously in this section; performance results are estimated, rounded for the competition, and weighted if there are secondary competitors present. In this respect, the information in the table differs from the previously presented STR data and is consistent with the supply-and-demand analysis developed for this report. March-2025 Page 123 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 50 FIGURE 5-14 HISTORICAL MARKET TRENDS Accommodated Room Nights Market Market Year Room Nights % Change Available % Change Occupancy Market ADR % Change RevPAR % Change Es t. 2019 170,949 — 291,672 — 58.6 % $98.62 — $57.80 — Es t. 2020 145,047 (15.2) % 291,672 (0.0) % 49.7 83.15 (15.7) % 41.35 (28.5) % Es t. 2021 172,936 19.2 291,672 0.0 59.3 96.05 15.5 56.95 37.7 Es t. 2022 195,249 12.9 293,205 0.5 66.6 115.88 20.6 77.16 35.5 Es t. 2023 187,136 (4.2) 293,971 0.3 63.7 120.36 3.9 76.62 (0.7) Es t. 2024 186,172 (0.5) 293,971 0.0 63.3 127.95 6.3 81.03 5.8 Avg. Annual Compounded Chg., Es t. 2019-Es t. 2024: 1.7 % 0.2 % 5.3 % 7.0 % Demand Analysis Using For the purpose of demand analysis, the overall market is divided into individual Market Segmentation segments based on the nature of travel. Commercial Demand Primary commercial demand generators for this market typically include the local hospitals and Syracuse University, as well as smaller demand generated from the many businesses located in along Route 31, such as corporate training at chain restaurant/retail store and demand generated by companies such as Toyota or Raymour & Flanigan Furniture and Mattress Store. The previous construction and ongoing operations at the Amazon fulfillment center continues to create commercial demand for hotels within the subject submarket. This segment is set to increase significantly as Micron breaks ground on its $100 billion project in November 2025. Furthermore, this submarket currently benefits from compression from Oswego, given the limited hotel supply in that market. Despite being 30 minutes north of the subject submarket, events at SUNY Oswego and routine scheduled shutdowns at Nine Mile Point Nuclear Station, create demand that exceeds that market’s supply inventory, thus benefiting hotels located proximate to the subject site. However, if no new hotels enter the subject submarket, this demand will likely be displaced given the demand that will be generated from Micron. Leisure Demand While this market primarily focuses on the commercial segment, leisure demand is generated by events taking place at Syracuse University, such as collegiate sporting events, graduation weekend, move-in weekend, and homecoming, among other events. Leisure demand is also generated by events happening at nearby venues including the New York State Fairgrounds and concerts at the JMA Wireless Dome. March-2025 Page 124 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 51 Group Demand While group demand is not a primary focus for the hotels located within this submarket, training groups from nearby companies and retail outlets, generate some group demand for local hotels; furthermore, social groups during weekend and holiday periods create demand for hotels within this submarket. Extended-Stay Demand Relocations in/out of the area and workers in the area for extended periods of time, such as traveling nurses or corporate trainers, have historically generated steady levels of extended-stay demand in this market. The larger corporations and industries in the area also generate extended-stay demand in conjunction with long- term projects and training that often last at least one week. An influx was of demand was generated from construction of the Amazon fulfillment center. While the extended-stay hotels in this submarket are already performing quite well, they are expected to perform even better in the future given the amount of demand that will be generated from the Micron project. According to the Empire State Development agency, nearly 12,000 annual temporary jobs are expected to be created each year between 2025-2044. A large portion of these jobs will bring in workers who are not permanently relocating the area but will be looking for longer-term temporary housing, such as an extended-stay hotel. Given the influx in demand and also considering the high occupancy levels already being achieved at the upscale extended-stay hotels, new hotels will need to enter the market to meet this demand. Based on our fieldwork, area analysis, and knowledge of the local lodging market, we estimate the 2019 and 2024 distribution of accommodated-room-night demand as follows. FIGURE 5-15 BASE-YEAR ACCOMMODATED-ROOM-NIGHT DEMAND 2019 Marketwide 2024 Marketwide Accommodated Percentage Accommodated Percentage Market Segment Demand of Total Demand of Total Commerci a l 85,474 50 % 91,976 49 % Lei s ure 34,190 20 43,993 24 Group 17,095 10 14,744 8 Extended-Sta y 34,190 20 35,460 19 Total 170,949 100 % 186,172 100 % March-2025 Page 125 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 52 In the base year, the market’s demand mix comprised commercial demand, with this segment representing roughly 49% of the accommodated room nights in this submarket. The leisure comprises 24% of the total, with the final portions group and extended-stay in nature (8% and 19%, respectively). The purpose of segmenting the lodging market is to define each major type of demand, identify customer characteristics, and estimate future growth trends. Starting with an analysis of the local area, four segments were defined as representing the proposed subject hotel’s lodging market. Various types of economic and demographic data were then evaluated to determine their propensity to reflect changes in hotel demand. Based on this procedure, we forecast the following average annual compounded market-segment growth rates. FIGURE 5-16 AVERAGE ANNUAL COMPOUNDED MARKET-SEGMENT GROWTH RATES Annual Growth Rate Market Segment 2025 2026 2027 2028 2029 Commerci a l 5.0 % 14.0 % 18.0 % 4.0 % 2.0 % Lei s ure 5.0 5.0 3.0 2.0 1.0 Group 5.0 3.0 3.0 2.0 1.0 Extended-Sta y 5.0 10.0 15.0 7.0 3.0 Base Demand Growth 5.0 % 10.2 % 12.9 % 4.0 % 1.9 % Latent Demand A table presented earlier in this section illustrated the accommodated-room-night demand in the proposed subject hotel’s competitive market. Because this estimate is based on historical occupancy levels, it includes only those hotel rooms that were used by guests. Latent demand reflects potential room-night demand that has not been realized by the existing competitive supply, further classified as either unaccommodated demand or induced demand. Unaccommodated Unaccommodated demand refers to individuals who are unable to secure Demand accommodations in the market because all the local hotels are filled. These travelers must defer their trips, settle for less desirable accommodations, or stay in properties located outside the market area. Because this demand did not yield occupied room nights, it is not included in the estimate of historical accommodated- room-night demand. If additional lodging facilities are expected to enter the market, it is reasonable to assume that these guests will be able to secure hotel rooms in the future, and it is therefore necessary to quantify this demand. March-2025 Page 126 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 53 Unaccommodated demand is further indicated if the market is at all seasonal, with distinct high and low seasons; such seasonality indicates that although year-end occupancy may not average in excess of 70.0%, the market may sell out certain nights during the year. To evaluate the incidence of unaccommodated demand in the market, we have reviewed the average occupancy by the night of the week for the past twelve months for the competitive set, as reflected in the STR data. This is set forth in the following table. FIGURE 5-17 OCCUPANCY BY NIGHT OF THE WEEK Month Sunday Monday Tuesday Wednesday Thursday Friday Saturday Total Month Feb - 24 33.1 % 47.0 % 51.7 % 55.3 % 51.7 % 52.7 % 55.5 % 49.6 % Ma r - 24 41.2 54.3 62.9 61.7 58.4 62.5 61.9 57.3 Apr - 24 53.3 57.2 60.2 65.5 68.7 69.1 68.4 62.9 Ma y - 24 46.6 54.7 66.0 66.4 61.8 68.6 71.9 62.6 Jun - 24 49.7 63.0 69.0 71.7 71.8 82.0 70.3 67.7 Jul - 24 56.1 66.4 70.1 72.6 73.2 77.0 78.8 70.5 Aug - 24 63.2 76.4 80.9 79.6 74.6 80.3 85.6 77.5 Sep - 24 54.4 63.4 69.9 70.0 69.2 83.5 82.3 69.6 Oct - 24 66.3 63.6 66.0 65.7 63.6 80.3 87.1 69.8 Nov - 24 36.2 47.1 51.4 54.4 55.9 61.6 60.1 52.9 Dec - 24 36.5 44.8 47.1 51.2 49.4 50.2 48.4 46.4 Ja n - 25 39.8 46.5 54.0 47.6 42.8 48.2 48.3 46.7 Average 47.9 % 57.1 % 62.3 % 63.5 % 61.5 % 67.7 % 68.4 % 61.2 % Source: STR The STR data suggests that demand for proposed location and this product type in particular, is strong. The significantly higher occupancy levels reflected by the primarily competitive hotels versus the secondarily competitive hotels suggest there is already demand for more hotel rooms in this location and for hotels with upscale, extended-stay offerings. Furthermore, looking at the weekly occupancy data for the overall unweighted combined competitive set, as shown in the table above and in the following table, the data show there are many nights when occupancy exceeds 75%. This data looks at the average for that night of the week over the course of the month. With a high occupancy level above 75% on average, it is reasonable to assume that there is likely some night some nights are higher and even sold out, leaving some guests wanting to stay at the local hotels but not able to. Furthermore, even on nights when hotels are not sold fully out, it is likely to assume that travelers will not have their first choice in lodging accommodations, and will settle for less desirable accommodations, or stay in properties located outside the competitive set. This suggest that during parts of the year, more room nights are already needed, particularly in the summer. March-2025 Page 127 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 54 While there is often some unaccommodated demand in the market when the day- of-the-week averages for a particular month exceed 75%, this is especially relevant for in this situation when the primary competitive set is performing so much better than the secondary competitive set. In 2024, the primary competitors achieved occupancy levels that were around 23 percentage points higher than the secondary set. Therefore, when the overall market is achieving occupancy levels in the mid- 70s, several (or potentially all) of the primary hotels are likely fully sold out and the secondary hotels are already benefiting from the overflow, thus raising the overall market averages. This suggests that more hotel rooms are needed, especially new supply such as the proposed project, that will compete with the primary competitive set and will provide the type of lodging that guests are already looking for but not able to get given the high occupancy levels. Following the start of construction of the Micron project, demand will greatly increase which exasperate the problem and leave significant room shortages if no new hotels are opened. FIGURE 5-18 EXISTING UNACCOMDATED DEMAND The following table presents our estimate of unaccommodated demand in the subject market. March-2025 Page 128 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 55 FIGURE 5-19 UNACCOMMODATED DEMAND ESTIMATE Accommodated Room Unaccommodated Unaccommodated Market Segment Night Demand Demand Percentage Room Night Demand Commerci a l 91,976 0.0 % 0 Lei s ure 43,993 11.9 5,222 Group 14,744 8.9 1,306 Extended-Sta y 35,460 0.0 0 Total 186,172 3.5 % 6,528 Accordingly, we have forecast unaccommodated demand equivalent to 3.5% of the base-year demand, resulting from our analysis of monthly and weekly peak demand and sell-out trends. Induced Demand Induced demand represents the additional room nights that are expected to be attracted to the market following the introduction of a new demand generator. Situations that can result in induced demand include the opening of a new manufacturing plant, the expansion of a convention center, or the addition of a new hotel with a distinct chain affiliation or unique facilities. Although increases in demand are expected in the local market, we have accounted for this growth in the determination of market-segment growth rates rather than induced demand. Accommodated Based upon a review of the market dynamics in the proposed subject hotel’s Demand and Market- competitive environment, we have forecast growth rates for each market segment. wide Occupancy Using the calculated potential demand for the market, we have determined market- wide accommodated demand based on the inherent limitations of demand fluctuations and other factors in the market area. The following table details our projection of lodging demand growth for the subject market, including the total number of occupied room nights and any residual unaccommodated demand in the market. March-2025 Page 129 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 56 FIGURE 5-20 FORECAST OF MARKET OCCUPANCY 2019 2024 2025 2026 2027 2028 2029 Commercial Tota l Dema nd 85,474 91,976 96,575 110,095 129,912 135,109 137,811 Growth Ra te 7.6 % 5.0 % 14.0 % 18.0 % 4.0 % 2.0 % Leisure Ba s e Dema nd 34,190 43,993 46,192 48,502 49,957 50,956 51,466 Una ccommoda ted Dema nd 5,222 5,484 5,758 5,930 6,049 6,110 Tota l Dema nd 34,190 49,215 51,676 54,260 55,887 57,005 57,575 Growth Ra te 43.9 % 5.0 % 5.0 % 3.0 % 2.0 % 1.0 % Group Tota l Dema nd 17,095 16,049 16,852 17,357 17,878 18,236 18,418 Growth Ra te (6.1) % 5.0 % 3.0 % 3.0 % 2.0 % 1.0 % Extended-Stay Tota l Dema nd 34,190 35,460 37,233 40,956 47,100 50,397 51,909 Growth Ra te 3.7 % 5.0 % 10.0 % 15.0 % 7.0 % 3.0 % Totals Ba s e Dema nd 170,949 186,172 195,481 215,499 243,392 253,214 258,105 Una ccommoda ted Dema nd 6,528 6,854 7,170 7,385 7,532 7,608 Tota l Dema nd 170,949 192,700 202,335 222,668 250,777 260,746 265,713 l es s : Res i dua l Dema nd 6,528 6,854 4,516 0 0 0 Tota l Accommoda ted Dema nd 170,949 186,172 195,481 218,152 250,777 260,746 265,713 Overall Demand Growth — (0.5) % 5.0 % 11.6 % 15.0 % 4.0 % 1.9 % Market Mix Commerci a l 50.0 % 49.4 % 47.7 % 49.4 % 51.8 % 51.8 % 51.9 % Lei s ure 20.0 23.6 25.5 24.4 22.3 21.9 21.7 Group 10.0 7.9 8.3 7.8 7.1 7.0 6.9 Extended-Sta y 20.0 19.0 18.4 18.4 18.8 19.3 19.5 Existing Hotel Supply 799 805 805 805 805 805 805 Proposed Hotels 1 Propos ed Dua l-Bra nded Fa i rfi el d Inn & Res i dence Inn by Ma rri ott 162 162 162 2 Home2 Suites by Hi l ton 101 110 110 110 Ava i l a bl e Room Ni ghts per Yea r 291,672 293,971 293,971 330,711 393,251 393,251 393,251 Ni ghts per Ye a r 365 365 365 365 365 365 365 Total Supply 799 805 805 906 1,077 1,077 1,077 Rooms Suppl y Growth 0.0 % 12.5 % 18.9 % 0.0 % 0.0 % Marketwide Occupancy 58.6 % 63.3 % 66.5 % 66.0 % 63.8 % 66.3 % 67.6 % 1 Openi ng i n Ja nua ry 2027 of the 100% competi ti ve, 162-room Propos e d Dua l -Bra nded Fa i rfi el d Inn & Res i dence Inn by Ma rri ott 2 Openi ng i n Februa ry 2026 of the 100% competi ti ve, 110-room Home2 Sui tes by Hi l ton Significant demand was generated for hotels within the submarket from the recent Amazon project; however, the Micron project is expected to be exponentially more impactful given the large investment and the length of the project. Furthermore, while the Micron project will impact hotels throughout the wider region, the project will actually be located within the proposed subject hotel’s submarket, thus creating demand in this area first, before overflowing and impacting the rest of the wider market and surrounding region. March-2025 Page 130 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 57 As previously mentioned, given the massive investment coming from the Micron project and considering the amount of room nights that will be generated, more hotel projects are expected to enter the market and more hotel rooms will be needed to accommodate the demand. If no new hotels enter, a notable amount of the new room nights generated by the Micron project will not be able to be accommodated within the market; as such, these guests will have to leave the market to find lodging in surrounding towns, and those markets will benefit from the compression. The following chart replicates the above figure but excludes the development of the proposed subject hotel for comparison purposes; however, this table still explicitly considered the opening of the Home2 Suites by Hilton. As mentioned, this is only for comparative purposes but shows that residual demand would exist and theses guests would not be accommodated until a new hotel enters the market. We also note looking at this chart independently, misrepresents the market and suggest a stabilized occupancy level that would be artificially high and would attract new development. Furthermore, our models distribute increases in demand based on the competitive weighting and segmentation of each hotel, which in this case would reflect an artificially higher stabilized occupancy levels at the secondarily competitive hotels. While these secondarily competitive hotels might benefit initially before new supply enters, they would be expected to later decline as accommodations better suited for type of guests staying in the area becomes available. While its reliance should be limited, the following table’s high occupancy levels and reflected residual demand does further demonstrate the need for the subject hotel’s development. March-2025 Page 131 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 58 FIGURE 5-21 FORECAST OF MARKET OCCUPANCY 2019 2024 2025 2026 2027 2028 2029 Commercial Total Demand 85,474 91,976 96,575 110,095 129,912 135,109 137,811 Growth Rate 7.6 % 5.0 % 14.0 % 18.0 % 4.0 % 2.0 % Leisure Base Demand 34,190 43,993 46,192 48,502 49,957 50,956 51,466 Unaccommodated Demand 2,112 2,218 2,328 2,398 2,446 2,471 Total Demand 34,190 46,105 48,410 50,830 52,355 53,402 53,936 Growth Rate 34.8 % 5.0 % 5.0 % 3.0 % 2.0 % 1.0 % Group Total Demand 17,095 15,272 16,035 16,516 17,012 17,352 17,526 Growth Rate (10.7) % 5.0 % 3.0 % 3.0 % 2.0 % 1.0 % Extended-Stay Total Demand 34,190 35,460 37,233 40,956 47,100 50,397 51,909 Growth Rate 3.7 % 5.0 % 10.0 % 15.0 % 7.0 % 3.0 % Totals Base Demand 170,949 186,172 195,481 215,499 243,392 253,214 258,105 Unaccommodated Demand 2,640 2,772 2,900 2,986 3,046 3,077 Total Demand 170,949 188,812 198,253 218,398 246,379 256,260 261,181 less: Residual Demand 2,640 2,772 1,827 0 116 655 Total Accommodated Demand 170,949 186,172 195,481 216,572 246,379 256,144 260,527 Overall Demand Growth — (0.5) % 5.0 % 10.8 % 13.8 % 4.0 % 1.7 % Market Mix Commercial 50.0 % 49.4 % 48.7 % 50.4 % 52.7 % 52.7 % 52.8 % Leisure 20.0 23.6 24.4 23.3 21.2 20.8 20.7 Group 10.0 7.9 8.1 7.6 6.9 6.8 6.7 Extended-Stay 20.0 19.0 18.8 18.8 19.1 19.7 19.9 Existing Hotel Supply 799 805 805 805 805 805 805 Proposed Hotels 1 Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott 2 Home2 Suites by Hilton 101 110 110 110 Available Room Nights per Year 291,672 293,971 293,971 330,711 334,121 334,121 334,121 Nights per Year 365 365 365 365 365 365 365 Total Supply 799 805 805 906 915 915 915 Rooms Supply Growth 0.0 % 12.5 % 1.0 % 0.0 % 0.0 % Marketwide Occupancy 58.6 % 63.3 % 66.5 % 65.5 % 73.7 % 76.7 % 78.0 % 1 Opening in January 2027 of the 100% competitive, 0-room Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott 2 Opening in February 2026 of the 100% competitive, 110-room Home2 Suites by Hilton March-2025 Page 132 of 156 Supply and Demand Analysis Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 59 6. Projection of Occupancy and Average Rate Along with average rate results, the occupancy levels achieved by a hotel are the foundation of the property's financial performance. Most of a lodging facility's other revenue sources (such as food and beverage, other operated departments, and miscellaneous income) are driven by the number of guests, and many expense levels also vary with occupancy. To a certain degree, occupancy attainment can be manipulated by management. For example, hotel operators may choose to lower rates in an effort to maximize occupancy. Our forecasts reflect the operating strategy that we believe would be implemented by a typical, professional hotel management team to achieve an optimal mix of occupancy and average rate. Forecast of Subject The proposed subject hotel's occupancy forecast is set forth as follows, with the Property’s Occupancy adjusted projected penetration rates used as a basis for calculating the amount of captured market demand. March-2025 Page 133 of 156 Projection of Occupancy and Average Rate Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 60 FIGURE 6-1 FORECAST OF SUBJECT PROPERTY'S OCCUPANCY Market Segment 2027 2028 2029 Commercial Dema nd 129,912 135,109 137,811 Ma rket Sha re 14.7 % 15.3 % 15.6 % Ca pture 19,105 20,628 21,548 Penetra ti on 98 % 102 % 104 % Leisure Dema nd 55,887 57,005 57,575 Ma rket Sha re 16.0 % 16.5 % 16.8 % Ca pture 8,956 9,387 9,690 Penetra ti on 107 % 110 % 112 % Group Dema nd 17,878 18,236 18,418 Ma rket Sha re 14.6 % 15.1 % 15.5 % Ca pture 2,608 2,760 2,855 Penetra ti on 97 % 101 % 103 % Extended-Stay Dema nd 47,100 50,397 51,909 Ma rket Sha re 19.9 % 21.4 % 21.6 % Ca pture 9,355 10,776 11,216 Penetra ti on 132 % 142 % 144 % Total Room Nights Captured 40,024 43,552 45,309 Ava i l a bl e Room Ni ghts 59,130 59,130 59,130 Subject Occupancy 68 % 74 % 77 % Ma rket-wi de Ava i l a bl e Room Ni ghts 393,251 393,251 393,251 Fair Share 15 % 15 % 15 % Ma rket-wi de Occupied Room Ni ghts 250,777 260,746 265,713 Market Share 16 % 17 % 17 % Market-wide Occupancy 64 % 66 % 68 % Total Penetration 106 % 111 % 113 % We note that given the notably stronger performance of the primary competitors compared to the secondary competitors, the subject hotel's occupancy penetration is positioned above the market average in all the segments; however, the subject hotel's positioning in each segment reflects an appropriate level based on the primary competitors and their respective positioning in each segment. Within the commercial segment, the proposed subject hotel’s occupancy penetration is positioned above the upscale, extended-stay hotels but below the upper-midscale March-2025 Page 134 of 156 Projection of Occupancy and Average Rate Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 61 hotels. The dual-branded hotel will offer a mix of extended-stay rooms and transient focused rooms. We note that while the extended-stay rooms will largely focus on commercial workers in the area for longer-stay contracts, this demand is allocated to the extended-stay segment rather than commercial segment, thus positioning the subject hotel below the transient focused commercial hotels within the commercial segment. Within the leisure segment the subject hotel is positioned appropriately within the range of the primary competitors given its new facility and leisure amenities such as an indoor pool and a golf simulator. Within the group segment the subject hotel is positioned above the market average but below many of the primary competitors given it will primarily be catering to commercial travelers and extended-stay travelers, opposed to hosting one-off groups. Finally, the subject hotel is positioned above most hotels within the extended-stay segment; however, given this dual-branded hotel will offer both upscale, extended stay rooms and upper-midscale, transient-focused room, the subject hotel has been positioned below the two hotels that were exclusively designed to cater to the upscale, extended-stay travelers. These positioned segment penetration rates result in the following market segmentation forecast. FIGURE 6-2 MARKET SEGMENTATION FORECAST – SUBJECT PROPERTY 2027 2028 2029 Commercia l 48 % 47 % 48 % Lei s ure 22 22 21 Group 7 6 6 Extended-Sta y 23 25 25 Total 100 % 100 % 100 % Based on our analysis of the proposed subject hotel and market area, we have selected a stabilized occupancy level of 77%. The stabilized occupancy is intended to reflect the anticipated results of the property over its remaining economic life given all changes in the life cycle of the hotel. Thus, the stabilized occupancy excludes from consideration any abnormal relationship between supply and demand, as well as any nonrecurring conditions that may result in unusually high or low occupancies. Although the proposed subject hotel may operate at occupancies above this stabilized level, we believe it equally possible for new competition and temporary economic downturns to force the occupancy below this selected point of stability. March-2025 Page 135 of 156 Projection of Occupancy and Average Rate Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 62 Average Rate Analysis Although the ADR analysis presented here follows the occupancy projection, these two statistics are highly correlated; in reality, one cannot project occupancy without making specific assumptions regarding ADR. This relationship is best illustrated by revenue per available room (RevPAR), which reflects a property's ability to maximize rooms revenue. The following table summarizes the historical ADR and RevPAR levels of the proposed subject hotel’s future primary competitors. FIGURE 6-3 BASE-YEAR ADR AND REVPAR OF THE COMPETITORS Estimated 2024 Rooms Revenue Average Room Average Room Occupancy Per Available RevPAR Property Rate Rate Penetration Occupancy Penetration Room (RevPAR) Penetration TownePl a ce Sui tes by Marri ott Syra cus e $120 - $125 90 - 95 % 65 - 70 % 110 - 120 % $85 - $90 100 - 110 % Li verpool Ha mpton by Hi l ton Syra cus e Cl a y 120 - 125 90 - 95 70 - 75 110 - 120 85 - 90 110 - 120 Comfort Inn & Sui tes Li verpool -Cl a y 115 - 120 85 - 90 60 - 65 100 - 110 70 - 75 85 - 90 Homewood Sui tes by Hi l ton Syra cus e 140 - 150 100 - 110 75 - 80 120 - 130 105 - 110 130 - 140 Li verpool Sta ybri dge Sui tes Syra cus e Li verpool 130 - 140 100 - 110 70 - 75 110 - 120 100 - 105 120 - 130 Avera ge - Pri ma ry Competi tors $129.06 100.9 % 72.8 % 115.0 % $94.01 116.0 % Avera ge - Seconda ry Competi tors 125.70 98.2 50.0 79.0 62.85 77.6 Overall Average $127.95 100.0 % 63.3 % 100.0 % $81.03 100.0 % . Subject As If Stabilized (In 2024 Dollars) $135.00 105.5 % 71.8 % 113.4 % $96.96 119.7 % To forecast the proposed subject hotel’s ADR, we positioned the rate in the context of the 2024 competitive market. In other words, we estimated the ADR that the proposed subject hotel would have achieved had it been operating at a stabilized level in 2024. As part of this analysis, we considered the proposed subject property’s competitive attributes, such as location, size (number of rooms), array of facilities and amenities, and market image/branding, and compared them to those of the hotels to which it is expected to be most comparable, applying adjustments as deemed appropriate, as illustrated below. March-2025 Page 136 of 156 Projection of Occupancy and Average Rate Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 63 FIGURE 6-4 ADR ADJUSTMENT GRID Proposed Dual- TownePlace Homewood Branded Suites by Suites by Staybridge Fairfield Inn Marriott Hampton by Hilton Suites & Residence Syracuse Hilton Syracuse Syracuse Inn by Liverpool Syracuse Clay Liverpool Liverpool Rooms 162 105 77 102 123 2024 Average Rate $120 - $125 $120 - $125 $140 - $150 $130 - $140 Adjustments Location Simi la r Si mi l ar Inferior Inferior 0% 0% 5% 5% Room Count/Market Mix Superior Superi or Superi or Simil a r -5% -5% -5% 0% Condition and Facilities Inferi or Inferi or Inferior Inferior 5% 5% 5% 5% Market Image Simi la r Si mi l ar Si mil ar Simil a r 0% 0% 0% 0% Total Adjustmemt 0% 0% 5% 10% Adjusted Average Rate $120 - $125 $120 - $125 $140 - $150 $150 - $160 Minimum $120 - $125 Maximum $150 - $160 Average $130 - $140 Median $130 - $140 Positioned Average Rate $135 Following the adjustments, our analysis indicates that the proposed subject hotel would have achieved an ADR between $120 and $155 if it were operating at a stabilized level in 2024. Based on this analysis, we have positioned the proposed subject hotel’s ADR at $135 in base-year dollars. We have positioned the proposed subject hotel's stabilized ADR in consideration of its new facility, strong brand affiliations, and its location. Average rates for this competitive market are anticipated to continue to increase given the investments taking place in the local area. The following table presents the ADR forecast for the market and the proposed subject hotel on a calendar-year basis, as well as the resulting ADR penetration level. The proposed subject hotel’s projected ADR (as if stabilized) is then fiscalized to correspond with the hotel’s anticipated date of opening for each forecast year. March-2025 Page 137 of 156 Projection of Occupancy and Average Rate Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 64 Discounts of 2% and 1% have been applied to the stabilized room rates projected for the first two years of operation, as would be expected for a new property of this type as it builds its reputation and becomes established in the market. FIGURE 6-5 ADR FORECAST – MARKET AND PROPOSED SUBJECT PROPERTY Historical Calendar Year 2019 2024 2025 2026 2027 2028 2029 2030 2031 2032 Ma rket ADR $98.62 $127.95 $131.79 $138.38 $142.53 $146.81 $151.21 $155.75 $160.42 $165.23 Projected Ma rket ADR Growth Ra te — 3.0% 5.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Propos ed Subject Property ADR (As -If Sta bi l i zed) $135.00 $139.05 $146.00 $150.38 $154.89 $159.54 $164.33 $169.26 $174.33 ADR Growth Ra te 3.0% 5.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Propos ed Subject Sta bi l i zed ADR Penetra ti on 106% 106% 106% 106% 106% 106% 106% 106% 106% Fiscal Year 2027 2028 2029 2030 2031 2032 Propos ed Subject Property Avera ge Ra te $150.38 $154.89 $159.54 $164.33 $169.26 $174.33 Openi ng Di s count 2.0% 1.0% 0.0% 0.0% 0.0% 0.0% Average Rate After Discount $147.37 $153.35 $159.54 $164.33 $169.26 $174.33 Rea l Avera ge Ra te Growth — 4.1% 4.0% 3.0% 3.0% 3.0% Ma rket ADR $142.53 $146.81 $151.21 $155.75 $160.42 $165.23 Propos ed Subject ADR Penetra ti on (After Di s count) 103% 104% 106% 106% 106% 106% ADR Expres s ed i n Ba s e-Yea r Dol l a rs Defl a ted @ Infl a ti on Ra te $134.87 $136.25 $137.62 $137.62 $137.62 $137.62 The proposed subject hotel’s ADR penetration level is forecast to reach 106% by the stabilized period, consistent with our stabilized ADR positioning. The following occupancies and average rates will be used to project the proposed subject hotel’s rooms revenue; this forecast reflects years beginning on January 1, 2027, which correspond with our financial projections. FIGURE 6-6 FORECASTS OF OCCUPANCY, AVERAGE RATE, AND REVPAR Average Rate Average Rate RevPAR % Year Occupancy Before Discount Discount After Discount RevPAR Change 2027 68 % $150.38 2.0 % $147.37 $100.22 — 2028 74 154.89 1.0 153.35 113.48 13.2 % 2029 77 159.54 0.0 159.54 122.85 8.3 March-2025 Page 138 of 156 Projection of Occupancy and Average Rate Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 65 7. Statement of Assumptions and Limiting Conditions 1. This report is set forth as a market study of the proposed subject hotel; this is not an appraisal report. 2. This report is to be used in whole and not in part; furthermore, all statements of assumptions and limiting conditions apply to the entire report, including any additional forms or addenda items presented. 3. No responsibility is assumed for matters of a legal nature, nor do we render any opinion as to title, which is assumed marketable and free of any deed restrictions and easements; the property is evaluated as free and clear unless otherwise stated. 4. We assume that there are no hidden or unapparent conditions of the sub- soil or structures, such as underground storage tanks, that would affect the property’s development potential. No responsibility is assumed for these conditions or for any engineering that may be required to discover them. 5. We have not considered the presence of potentially hazardous materials or any form of toxic waste on the project site. We are not qualified to detect hazardous substances and urge the client to retain an expert in this field if desired. 6. The Americans with Disabilities Act (ADA) became effective on January 26, 1992. We have assumed the proposed hotel would be designed and constructed to be in full compliance with the ADA. 7. We have made no survey of the site, and we assume no responsibility in connection with such matters. Sketches, photographs, maps, and other exhibits are included to assist the reader in visualizing the property. It is assumed that the use of the described real estate will be within the boundaries of the property described, and that no encroachment will exist. 8. All information, financial operating statements, estimates, and opinions obtained from parties not employed by TS Worldwide, LLC, are assumed true and correct. We can assume no liability resulting from misinformation. 9. Unless noted, we assume that there are no encroachments, zoning violations, or building violations encumbering the subject site. 10. The property is assumed to be in full compliance with all applicable federal, state, local, and private codes, laws, consents, licenses, and regulations (including the appropriate liquor license if applicable), and that all licenses, March-2025 Page 139 of 156Statement of Assumptions and Limiting Conditions Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 66 permits, certificates, franchises, and so forth can be freely renewed or transferred to a purchaser. 11. All mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless specified otherwise. 12. None of this material may be reproduced in any form without our written permission, and the report cannot be disseminated to the public through advertising, public relations, news, sales, or other media. 13. We are not required to give testimony or attendance in court because of this analysis without previous arrangements and shall do so only when our standard per-diem fees and travel costs have been paid prior to the appearance. 14. If the reader is making a fiduciary or individual investment decision and has any questions concerning the material presented in this report, it is recommended that the reader contact us. 15. We take no responsibility for any events or circumstances that take place subsequent to the date of our field inspection. 16. The quality of a lodging facility's onsite management has a direct effect on a property's economic viability. The financial forecasts presented in this analysis assume responsible ownership and competent management. Any departure from this assumption may have a significant impact on the projected operating results. 17. The financial analysis presented in this report is based upon assumptions, estimates, and evaluations of the market conditions in the local and national economy, which may be subject to sharp rises and declines. Over the projection period considered in our analysis, wages and other operating expenses may increase or decrease because of market volatility and economic forces outside the control of the hotel’s management. We assume that the price of hotel rooms, food, beverages, and other sources of revenue to the hotel will be adjusted to offset any increases or decreases in related costs. We do not guarantee that our estimates will be attained, but they have been developed based upon information obtained during the course of our market research and are intended to reflect the expectations of a typical hotel investor as of the stated date of the report. 18. This analysis assumes continuation of all Internal Revenue Service tax code provisions as stated or interpreted on either the date of this analysis or the date of our field inspection, whichever occurs first. 19. Many of the figures presented in this report were generated using sophisticated computer models that make calculations based on numbers carried out internally to many decimal places. In the interest of simplicity, March-2025 Page 140 of 156Statement of Assumptions and Limiting Conditions Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 67 most numbers have been rounded to the nearest tenth of a percent; thus, these figures may be subject to small rounding errors. 20. It is agreed that our liability to the client is limited to the amount of the fee paid as liquidated damages. Our responsibility is limited to the client; the use of this report by third parties shall be solely at the risk of the client and/or third parties. The use of this report is also subject to the terms and conditions set forth in our engagement letter with the client. 21. Evaluating and comprising financial forecasts for hotels is both a science and an art. Although this analysis employs various mathematical calculations to provide projections, the final forecasts are subjective and may be influenced by our experience and other factors not specifically set forth in this report. 22. This study was prepared by TS Worldwide, LLC. All opinions, recommendations, and conclusions expressed during the course of this assignment are rendered by our staff as company employees, rather than as individuals. March-2025 Page 141 of 156Statement of Assumptions and Limiting Conditions Proposed Dual-Branded Fairfield Inn & Residence Inn by Marriott – Clay, New York 68 Christian Cross EMPLOYMENT 2017 to present HVS CONSULTING AND VALUATION SERVICES Buffalo, New York Summer 2016 HVS CONSULTING AND VALUATION SERVICES Internship Vancouver, British Columbia, Canada 2014–2015 ONTARIO RESTAURANT HOTEL & MOTEL ASSOCIATION Mississauga, Ontario, Canada 2010–2011 HILTON HOTEL & SUITES Niagara Falls, Ontario, Canada 2010–2011 VINTAGE HOTELS, QUEEN’S LANDING Niagara-on-the-Lake, Ontario, Canada 2008–2015 SOUTH COAST COOKHOUSE Crystal Beach, Ontario, Canada EDUCATION AND OTHER Bachelor of Commerce – University of Guelph TRAINING Other Specialized Training Classes Completed: Uniform Standards of Professional Appraisal Practice Basic Appraisal Procedures Basic Appraisal Principles General Appraiser Income Approach (Parts I and II) General Appraiser Market Analysis and HBU General Appraiser Report Writing and Case Studies General Appraiser Sales Comparison Approach General Appraiser Site Valuation and Cost Approach Real Estate Finance, Statistics, Valuation Modeling Expert Witness for Commercial Appraisers Commercial Appraisal Review Advanced Income Advanced Market Analysis & HBU HVS, Buffalo, New York Page 142 of 156 Qualifications of Christian Cross 1 EDUCATION (CONT’D) PA Law NY Fair Housing Advanced Concepts & Case Studies Business Practices and Ethics Quantitative Analysis Biennial USPAP Updates STATE CERTIFICATION Massachusetts, New York, Ohio, Pennsylvania PUBLISHED ARTICLES HVS Journal “Looking Ahead to the 2026 NFL Draft in Pittsburgh and Its Impact on the Hotel Market,” July 2024 HVS Journal “Unique Factors Shaping the Buffalo Lodging Market,” June 2024 HVS Journal “Significant Changes and Transformative Projects Coming to Syracuse,” July 2023 HVS Journal “Beyond the PGA Championship: Exciting Happenings in Rochester,” June 2023 HVS Journal “Strong Rate Growth and New Travelers Discovering New York State’s Resort Markets: The Impact of COVID-19 and the Recovery of the Finger Lakes, the Adirondacks, and the Catskills/Hudson Valley Markets,” September 2022 HVS Journal “Autism and the Hospitality Industry: An Interview with Autism Double-Checked,” co- authored with Kyndall Wiedrich, April 2021 HVS Journal “The Hotel Industry's Pandemic Bright Spot: The Extended-Stay Segment,” co-authored with Rod Clough, February 2021 HVS Journal “HVS Market Pulse: Buffalo, New York,” February 2021 HVS Journal “Hotel Cleanliness Policies in the Time of COVID-19,” September 2020 HVS, Buffalo, New York Page 143 of 156 Qualifications of Christian Cross 2 EXAMPLES OF PROPERTIES APPRAISED Proposed Embassy Suites Halcyon Hampton by Hilton Atlanta OR EVALUATED Village, Alpharetta Fayetteville, Fayetteville Proposed Homewood Suites Halcyon Hampton Inn Valdosta Lake Park, Lake PORTFOLIO EVALUATION Village, Alpharetta Park 9 Extended Stay America Hotels, Aloft Atlanta Downtown, Atlanta Proposed Tapestry by Hilton, Northeastern U.S. Hilton Suites Atlanta Perimeter, Lawrenceville Atlanta Home2 Suites by Hilton Atlanta West ALABAMA Holiday Inn Express & Suites Atlanta Lithia Springs, Lithia Springs InTown Suites Auburn, Auburn Downtown, Atlanta Hilton Garden Inn, Lithonia Hotel Indigo Birmingham Five Points, Hotel Clermont, Atlanta Crestwood Suites, Marietta Birmingham Hotel Indigo Atlanta Vinings, Atlanta InTown Suites Extended Stay Marietta, InTown Suites Vestavia Hills, Hyatt Regency Atlanta, Atlanta Marietta Birmingham Proposed Boutique Hotel Atlanta, InTown Suites Marietta Town Center, InTown Suites Decatur, Decatur Atlanta Marietta Proposed Curio by Hilton Atlanta, Proposed New London Square Hotel, CALIFORNIA Atlanta Marietta Proposed Fairfield by Marriott Proposed Element, Atlanta Proposed AVID Hotel McDonough, Buttonwillow, Buttonwillow Sheraton Atlanta, Atlanta McDonough Ecco Suites, Augusta Garden Plaza Hotel, Norcross CONNECTICUT Proposed Fairfield Inn & Suites Hilton Atlanta Northeast, Norcross Courtyard by Marriott Hartford Braselton, Braselton Holiday Inn Express Rome Georgia, Farmington, Farmington Proposed Tru by Hilton Braselton, Rome Courtyard by Marriott Hartford Braselton Proposed Hampton Inn, Social Circle Manchester, Manchester Fairfield Inn & Suites by Marriott Proposed Tru by Hilton, Stockbridge Hilton Garden Inn Norwalk, Norwalk Calhoun, Calhoun Comfort Suites Northlake Tucker, Residence Inn by Marriott Hartford Hampton Inn Atlanta Canton, Canton Tucker Rocky Hill, Rocky Hill Hampton by Hilton Emerson Country Inn & Suites, Valdosta Hilton Garden Inn Shelton, Shelton LakePoint, Cartersville Country Inn & Suites by Radisson Homewood Suites by Hilton Home-Towne Suites Columbus, Warner Robins, Warner Robins Wallingford Meriden, Wallingford Columbus InTown Suites Columbus, Columbus ILLINOIS FLORIDA Hampton Inn Covington, Covington Prairie Lakes Hotel Bloomingdale, Aloft Miami Doral, Doral Proposed Staybridge Suites, Covington Bloomingdale Best Western Premier Jacksonville Sun Suites, Cumming Hampton by Hilton Bourbonnais Hotel, Jacksonville Proposed Extended-Stay Hotel, Dalton Kankakee, Bourbonnais 24 North Hotel Key West, Key West Proposed Westin & Villas @ Foxhall, Proposed DoubleTree, Bloomingdale Fairfield by Marriott Key West at The Douglasville Holiday Inn Express, Chicago Keys Collection, Key West Hampton by Hilton Atlanta Duluth Magnificent Mile, Chicago Gates Hotel Key West, Key West Gwinnett County, Duluth Hotel Felix, Chicago Hilton Garden Inn Key West / The InTown Suites Gwinnett Place Mall, Viceroy Chicago, Chicago Keys Collection, Key West Duluth Proposed Select Service Hotel Oak Proposed Aqua Suites, Rosemary Quality Inn, Duluth Park, Oak Park Beach Hilton Garden Inn Atlanta Airport Courtyard by Marriott Peoria, Peoria North, East Point GEORGIA Best Western Plus Fairburn Atlanta INDIANA Courtyard by Marriott Atlanta Southwest, Fairburn Proposed HomeTowne Studios, Avon Alpharetta Avalon Area, Alpharetta HVS, Buffalo, New York Page 144 of 156 Qualifications of Christian Cross 3 MINNESOTA Maidstone East Hampton, East Proposed Hotel Rochester, Rochester Fairfield by Marriott Minneapolis Hampton Saranac Waterfront Lodge, Saranac Bloomington Mall of America, Courtyard by Marriott Syracuse Saratoga Hilton, Saratoga Springs Bloomington Carrier Circle, East Syracuse Proposed Wyldwick Resort, Saugerties Fairfield by Marriott Minneapolis Eden DoubleTree by Hilton Hotel Syracuse, Proposed The Skaneateles Lodge, Prairie, Eden Prairie East Syracuse Curio Collection by Hilton, Country Inn & Suites By Radisson Fairfield by Marriott Syracuse Carrier Skaneateles Owatonna, Owatonna Circle, East Syracuse Candlewood Suites Syracuse Airport, Sheraton Saint Paul Woodbury, Hampton by Hilton Syracuse Carrier Syracuse Woodbury Circle, East Syracuse Proposed Syracuse University Hotel, Residence Inn by Marriott Syracuse Syracuse MISSOURI Carrier Circle, East Syracuse DoubleTree by Hilton Tarrytown, Fairfield by Marriott Saint Louis West SpringHill Suites by Marriott Syracuse Tarrytown Wentzville, Wentzville Carrier Circle, East Syracuse Proposed Tupper Lake Crossroads Hampton by Hilton Saint Louis Proposed Hotel Hamilton, Hamilton Hotel, Tupper Lake Wentzville, Wentzville Proposed Dual-Branded 100-Key La Best Western Watertown Fort Drum, Quinta & Hawthorne, Henrietta Watertown NEW YORK Residence Inn by Marriott Kingston, Motel 6 Buffalo Airport Williamsville, Hampton by Hilton Albany Downtown, Kingston Williamsville Albany Grand Adirondack Hotel Lake Placid, a Thompson House, Windham Hilton Garden Inn Albany SUNY Area, Tribute Portfolio, Lake Placid Wylder Windham, Windham Albany Proposed REDD Farm Hotel Lodi, Lodi Hampton by Hilton Yonkers, Yonkers Holiday Inn Express Albany Proposed Holiday Inn Express Malta, Downtown, Albany Malta NORTH CAROLINA Home2 Suites by Hilton Albany Home2 Suites by Hilton Middletown, Hampton Inn, Asheboro Airport/Wolf Road, Albany Middletown 1899 Wright Inn & Carriage House, Adam's Mark Buffalo, Buffalo Proposed Hilton Garden Inn Asheville Hostel Buffalo Niagara, Buffalo Newburgh, Newburgh La Quinta Inn & Suites Boone, Boone Proposed Boutique Hotel Delaware Kimpton Hotel Eventi, New York Proposed Home2 Suites Boone, Boone Avenue, Buffalo Holiday Inn Express Niagara Falls, Homewood Suites by Hilton Raleigh Residence Inn by Marriott Buffalo Niagara Falls Cary, Cary Galleria Mall, Buffalo Hotel Niagara, Niagara Falls La Quinta Inn & Suites Raleigh Cary, Proposed Tapestry Collection by Hyatt Place Niagara Falls, Niagara Falls Cary Hilton, Canandaigua Proposed Cambria Hotel Niagara Falls, Proposed Aloft Hotel Charlotte, Tapestry Collection by Hilton, Niagara Falls Charlotte Canandaigua Holiday Inn Express Poughkeepsie, Proposed Comfort Inn & Suites Proposed Courtyard by Marriott Poughkeepsie Charlotte, Charlotte Central Valley, Central Valley Van Wyck Hotel & Suites Near JFK Proposed Moxy Raleigh, Raleigh Holiday Inn Express Cheektowaga Airport, Queens Residence Inn by Marriott Charlotte North East, Cheektowaga Comfort Suites Roanoke Fort Worth Northlake, Charlotte Townhouse Buffalo International North, Rochester Candlewood Suites Durham Research Airport by OYO, Cheektowaga Holiday Inn Express Irondequoit, Triangle Park, Durham Holiday Inn Express & Suites Rochester Aloft Chapel Hill, Chapel Hill Cooperstown, Cooperstown Holiday Inn Express Rochester Greece, La Quinta Inn & Suites Durham Chapel Radisson Corning, Corning Rochester Hill, Durham Holiday Inn Express Cortland, Homewood Suites by Hilton Rochester La Quinta Inn & Suites Durham Cortland Henrietta, Rochester Research Triangle Park, Durham HVS, Buffalo, New York Page 145 of 156 Qualifications of Christian Cross 4 Proposed SpringHill Suites, Durham Hilton Garden Inn Proposed Tru by Hilton, Fayetteville Pittsburgh/Cranberry, Cranberry RHODE ISLAND La Quinta Inn & Suites, Greensboro Township Hampton by Hilton South Kingstown Hilton Garden Inn Raleigh Durham Home2 Suites by Hilton Pittsburgh Newport, South Kingstown Airport, Morrisville Cranberry, Cranberry Township Best Western Providence Warwick La Quinta Inn & Suites Raleigh Durham Fairfield by Marriott DuBois, DuBois Airport Inn, Warwick Airport, Morrisville Fairfield by Marriott Erie Millcreek La Quinta Inn & Suites Raleigh Mall, Erie SOUTH CAROLINA Crabtree, Raleigh Homewood Suites by Hilton Erie, Erie InTown Suites, Anderson Proposed Dual-Brand Home2 Proposed Hotel Erie, Erie Hampton by Hilton Hilton Head, Hilton Suites/Tru Raleigh, Raleigh Nemacolin Woodlands Resort, Head Island Proposed Origin Hotel, Raleigh Farmington Park Lane Hotel & Suites, Hilton Head Holiday Inn Express & Suites Courtyard by Marriott Pittsburgh Island Smithfield Selma I-95, Smithfield Greensburg, Greensburg Comfort Inn & Suites, Orangeburg Fairfield by Marriott Raleigh Wake Holiday Inn Express & Suites Forest, Wake Forest Johnstown, Johnstown TENNESSEE La Quinta Inn & Suites, Winston Salem Hampton by Hilton Grove City, Mercer La Quinta Inn Chattanooga Hamilton Hilton Garden Inn Pittsburgh Area Place, Chattanooga OHIO Beaver Valley, Monaca La Quinta Inn & Suites Kingsport Proposed Candlewood Suites, Ace Hotel Pittsburgh, Pittsburgh TriCities Airport, Kingsport Columbus Courtyard by Marriott Pittsburgh Marriott Columbus Northwest, Dublin Airport Settlers Ridge, Pittsburgh VIRGINIA Fairfield by Marriott Findlay, Findlay Crowne Plaza Pittsburgh South, Lodge at Mount Ida Farm & Vineyard, Hampton Inn Findlay, Findlay Pittsburgh Charlottesville SpringHill Suites by Marriott DoubleTree by Hilton Pittsburgh Columbus Airport Gahanna, Green Tree, Pittsburgh WEST VIRGINIA Gahanna Drury Plaza Hotel Pittsburgh Morgantown Marriott at Waterfront TownePlace Suites By Marriott Downtown, Pittsburgh Place, Morgantown Columbus Airport Gahanna, Fairfield by Marriott Pittsburgh Gahanna Airport Robinson Township, WISCONSIN Homewood Suites by Hilton Columbus Pittsburgh Proposed Homewood Suites by Hilton Hilliard, Hilliard Fairfield by Marriott Pittsburgh Madison, Madison Fairfield by Marriott Lima, Lima Neville Island, Pittsburgh Proposed Full-Service Hotel Obetz, Home2 Suites by Hilton Oxford, Obetz Pittsburgh Hampton by Hilton North Olmsted Oaklander Hotel Autograph Collection Cleveland Airport, North Olmsted Hotels, Pittsburgh Fairfield by Marriott Springfield, TRYP by Wyndham Pittsburgh Springfield Lawrenceville, Pittsburgh Hampton by Hilton Zanesville, Courtyard by Marriott Washington Zanesville Meadowlands, Washington Hyatt Place Pittsburgh South Meadows PENNSYLVANIA Racetrack & Casino, Washington Hilton Garden Inn Pittsburgh Proposed WoodSpring Suites, Southpointe, Canonsburg Washington Residence Inn by Marriott Williamsport, Williamsport HVS, Buffalo, New York Page 146 of 156 Qualifications of Christian Cross 5 Visit syracuse February 27, 2025 Mr. Robert Petrovich Onondaga County Industrial Development Agency 335 Montgomery Street, 2nd Floor Syracuse, NY 13202 Subject: Letter of Support for Dual Fairfield/Residence Inn by Marriott by Visions Hotels Dear Mr. Petrovich, I am writing to express my strong support for the proposed Dual Fairfield/Residence Inn by Marriott by Visions Hotels in Clay. This project will address a critical need in our region’s hospitality sector by adding much-needed extended-stay accommodations, which are currently in short supply. With Micron’s transformational development bringing approximately 50,000 new employees and thousands of construction jobs to our region, the demand for long-term lodging will increase dramatically. Construction workers, consultants, and engineers working on the multi-year build will require flexible and comfortable accommodations, and traditional hotel inventory alone cannot meet this need. The Dual Fairfield/Residence Inn by Marriott by Visions Hotels will directly fill this void by providing an extended-stay product tailored to these professionals, ensuring they have high-quality, convenient lodging options throughout the duration of their work. Furthermore, this project is backed by Visions Hotels, an extremely reputable hotel company that employs hundreds locally and has a proven track record of delivering high- quality hospitality experiences. Their expertise, combined with the strength of the Marriott brand, will not only enhance the guest experience but also attract business travelers and relocating professionals seeking trusted accommodations. The strength of Marriott’s global reservation system, loyalty program, and corporate partnerships will help drive occupancy, ensuring the hotel’s long-term success while contributing to our local economy. Page 147 of 156 Beyond its direct economic impact, this project will also support surrounding businesses, restaurants, and service providers, further strengthening the overall hospitality infrastructure in Central New York. I fully support the approval and development of the Dual Fairfield/Residence Inn by Marriott by Visions Hotels and encourage all stakeholders to recognize the long-term benefits it will bring to our community. Thank you for your time and consideration. Please feel free to reach out if I can provide further insights or assistance. Sincerely, Danny Liedka President/CEO Visit Syracuse Inc. Page 148 of 156 Visit syracuse February 27, 2025 Mr. Robert Petrovich Onondaga County Industrial Development Agency 335 Montgomery Street, 2nd Floor Syracuse, NY 13202 Subject: Letter of Support for Dual Fairfield/Residence Inn by Marriott by Visions Hotels Dear Mr. Petrovich, I am writing to express my strong support for the proposed Dual Fairfield/Residence Inn by Marriott by Visions Hotels in Clay. This project will address a critical need in our region’s hospitality sector by adding much-needed extended-stay accommodations, which are currently in short supply. With Micron’s transformational development bringing approximately 50,000 new employees and thousands of construction jobs to our region, the demand for long-term lodging will increase dramatically. Construction workers, consultants, and engineers working on the multi-year build will require flexible and comfortable accommodations, and traditional hotel inventory alone cannot meet this need. The Dual Fairfield/Residence Inn by Marriott by Visions Hotels will directly fill this void by providing an extended-stay product tailored to these professionals, ensuring they have high-quality, convenient lodging options throughout the duration of their work. Furthermore, this project is backed by Visions Hotels, an extremely reputable hotel company that employs hundreds locally and has a proven track record of delivering high- quality hospitality experiences. Their expertise, combined with the strength of the Marriott brand, will not only enhance the guest experience but also attract business travelers and relocating professionals seeking trusted accommodations. The strength of Marriott’s global reservation system, loyalty program, and corporate partnerships will help drive occupancy, ensuring the hotel’s long-term success while contributing to our local economy. Page 149 of 156 Beyond its direct economic impact, this project will also support surrounding businesses, restaurants, and service providers, further strengthening the overall hospitality infrastructure in Central New York. I fully support the approval and development of the Dual Fairfield/Residence Inn by Marriott by Visions Hotels and encourage all stakeholders to recognize the long-term benefits it will bring to our community. Thank you for your time and consideration. Please feel free to reach out if I can provide further insights or assistance. Sincerely, Danny Liedka President/CEO Visit Syracuse Inc. Page 150 of 156 Mr. Robert Petrovich Onondaga County Industrial Development Agency 335 Montgomery Street, 2nd Floor Syracuse, NY 13202 Dear Mr. Petrovich, I am writing to you today on behalf of the Board of the Greater Syracuse Hospitality & Tourism Association. We would like to voice our support for the Dual Residence/Fairfield hotel project in Clay. We currently do not have enough hotel inventory to support the needs of the travelers that come into Syracuse. We have recently had multiple hotels transition to dormitories and apartments. This makes it very difficult to bid on Citywide conventions and conferences. We also need to consider the hotels that will be needed to support the Micron project. Our city is currently not able to accommodate the number of travelers that come with Micron. The introduction of a new dual hotel would help to fill the current gap. Hotels can also stimulate local economic growth by attracting more visitors and events to our city. These visitors also spend money in small businesses that surround the hotel, such as restaurants and stores. The mix of extended stay and standard hotel rooms is a perfect fit for the needs of the travelers that come to our city. This hotel project is just one of many that need to be approved to help us get back to full hotel inventory in the area. We fully support the development of this dual hotel project. Thank you for your consideration. Best Regards, Danielle Neuser President- Greater Syracuse Hospitality & Tourism Association DNeuser@NewCastleHotels.com 315-440-9318 Page 151 of 156 6/10/2025 Project: Upstate Pathology Lab Ownership, LLC Project Number: 3101-24-07A Location: DeWitt School District: East Syracuse Minoa Project Type: New Construction Tax Parcel(s): 029.-02-27.3 Village: 0 Total Project Cost: $ 89,520,000 8. Total Jobs 223 Land Acquisition $ 5,000,000 8A. Job Retention 178 Site Work/Demo $ 5,000,000 8B: Job Creation 45 Building Construction & Renovation $ 63,000,000 (Next 5 Years) Furniture & Fixtures $ 2,500,000 Equipment $ 3,000,000 Project Soft Cost $ 11,020,000 Community Investment /Abatement Project Description Fiscal Impact ($) Abatement Summary $6,344,541 Sales Tax Abatement $3,200,000 Mortgage Tax Abatement $569,250 Property Tax Relief (PILOT) $2,575,291 Community Investment $151,989,595 The applicant is proposing construction of an approximately 109,000 square foot, PILOT Payments ( - ) $2,555,096 three story pathology lab building. Project Salaries and Benefits Estimated (10 yrs) $49,757,499 Construction Benefit Estimate $10,157,000 Total Project Cost $89,520,000 Investment:Abatement Ratio 23.96 :1 © 2024 Onondaga County Industrial Development Agency. All rights reserved. Page 152 of 156 Upstate Pathology Lab Ownership, LLC A) PILOTS Estimate Table Worksheet for 10 years OCIDA estimate of current market value $ 1,000,000 Projected investment $ 63,000,000 OCIDA estimate of increase in value $ 15,832,250 OCIDA estimated value after project is completed $ 16,832,250 Taxes that would have been collected if the project did not occur $ 304,795 Scheduled PILOT payments $ 2,555,096 Full Tax County PILOT School PILOT YEAR Exemption % Town Village Total PILOT Payment w/o Net Exemption Amount District PILOT 1 100% $ 3,714 $ 4,660 $ 19,462 $ - $ 27,836 $ 468,540 $ 440,705 2 90% $ 9,785 $ 12,280 $ 51,280 $ - $ 73,344 $ 477,911 $ 404,567 3 80% $ 16,097 $ 20,202 $ 84,363 $ - $ 120,662 $ 487,470 $ 366,807 4 70% $ 22,658 $ 28,436 $ 118,749 $ - $ 169,843 $ 497,219 $ 327,375 5 60% $ 29,476 $ 36,991 $ 154,477 $ - $ 220,944 $ 507,163 $ 286,220 6 50% $ 36,556 $ 45,877 $ 191,586 $ - $ 274,020 $ 517,307 $ 243,287 7 40% $ 43,908 $ 55,104 $ 230,118 $ - $ 329,131 $ 527,653 $ 198,522 8 30% $ 51,540 $ 64,682 $ 270,114 $ - $ 386,336 $ 538,206 $ 151,869 9 20% $ 59,460 $ 74,620 $ 311,619 $ - $ 445,699 $ 548,970 $ 103,271 10 10% $ 67,675 $ 84,931 $ 354,675 $ - $ 507,281 $ 559,949 $ 52,668 TOTAL $ 340,869 $ 427,783 $ 1,786,444 $ - $ 2,555,096 $ 5,130,387 $ 2,575,291 Year 0 1 2 3 4 5 Jobs Current/Actuals 178 Creation Goals 45 25 10 10 Total Employment Goals 223 203 213 223 223 223 © 2024 Onondaga County Industrial Development Agency. All rights reserved. Page 153 of 156 Section III: FINANCIAL AND EMPLOYMENT INFORMATION A) Project Costs and Finances Description of Costs Total Budget Amount Land Acquisition 5,000,000 Site Work/Demo 5,000,000 Building Construction & Renovation 63,000,000 Furniture & Fixtures 2,500,000 Equipment 3,000,000 Project Soft Cost 11,020,000 Management/Developer Total Project Cost Fees project 89,520,000 cost Management/Developer Fees projecthave Please costdocumentation available upon request. Do not include OCIDA fees, OCIDA application fees or OCIDA legal fees as part of the Total Project Cost. Sources of Funds for Project Costs: 1. Bank Financing $__________________ 75,900,000 2. Equity $__________________ 13,620,000 3. Tax Exempt Bond Issuance (if applicable) $__________________ 4. Taxable Bond Issuance (if applicable) $__________________ 5. Total Sources of Funds for Project Costs $__________________ 89,520,000 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 154 of 156 Page 7 Please use this chart to illustrate the current employment: Job Title/Category Current Annual Pay Current Employment (FTE) Pathologist $303,881.00 18 Technologist $87,717.00 91 Laboratory Specialist $61,020.00 69 TOTAL 178* * The above breakout is the applicant's estimate based upn Upstate's current employment census reduced to reflect those jobs not moving to the new facility. 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 Pathologist $312,997.00 3 1 1 Technologist $90,349.00 12 5 5 Laboratory Specialist $62,850.00 10 4 4 TOTAL 25 10 10 D) Financial Assistance sought: ☐ Real Property Tax Abatement (PILOT): Agency Staff will provide draft and final PILOT schedule: _____________________ ☐ Mortgage Recording Tax Exemption (.75% of mortgage): _____________________ 569,250.00 ☐ Sales and Use Tax Exemption (4% Local, 4% State): _________________________ 3,200,000 ☐ Tax Exempt Bond Financing (Amount Requested): ___________________________ ☐ Taxable Bond Financing (Amount Requested): Onondaga County Industrial Development Agency Page 155 of 156 Page 9 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): $ 75,900,000.00 Estimated Mortgage Recording Tax Exemption Benefit (product of mortgage amount as indicated above, multiplied by .0075): $ 569,250.00 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: $_____________ 40,000,000 Estimated State and local Sales and Use Tax Benefit (product of 8% multiplied by the figure, above): $_____________ 3,200,000 Onondaga County Industrial Development Agency Page 156 of 156 Page 10