NYCIDA PROJECT COST/BENEFIT ANALYSIS September 10, 2015

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1 NYCIDA PROJECT COST/BENEFIT ANALYSIS September 10, 2015 APPLICANT Transcon International Inc. 234 Rider Avenue Bronx, New York PROJECT LOCATION 131 Walnut Avenue Bronx, New York A. Project Description: Transcon International Inc., a New York corporation that stores, packs and ships fine art worldwide, and Port Morris Realty LLC, a real estate holding company (together the Companies ) seek financial assistance in connection with the acquisition and renovation of an existing approximately 137,605 square foot building located on an approximately 57,195 square foot parcel of land. The total project cost is approximately $17,051,000 which includes $11,000,000 for the acquisition of the building, $5,751,000 for renovation and $300,000 in fees. The Company is expected to retain 9 full-time employees to the project location and plans to hire 8 new full-time employees within the next three years. B. Costs to City (New York City taxes to be exempted): Mortgage Recording Tax Benefit: $ 178,750 Land Tax Abatement (NPV, 25 years): 712,037 Building Tax Exemption (NPV, 25 years): 8,449,447 Sales Tax Exemption: 162,257 Total Cost to NYC $ 9,502,491 C. Benefit to City (Estimated NYC direct and indirect taxes to be generated by Company) (estimated NPV %): $ 15,345,546

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4 PLEASE PROVIDE A BRIEF DESCRIPTION OF THE COMPANY HISTORY AND NATURE OF THE BUSINESS, INCLUDING A DESCRIPTION OF THE INDUSTRY, COMPETITORS, AND SERVICES OFFERED Transcon International Inc. was incorporated in the state of New York in 1995 and is solely owned by John Mullane. The company is one of the unique premiere fine art storage and leading packers and shippers of fine art worldwide. The company operates form two locations. The main office, crating packing and shipping facility is located at 234 Rider Ave, Bronx NY which the company owns under the realty company called Mott Haven Holdings LLC. The storage facility of the fine art is located at 131 Walnut Ave. Bronx, NY which the company presently lease five of the six floors. The company provides services related to this industry such as Packing & crating, climate controlled storage, digital imaging and cataloging, worldwide shipping to name a few. The client base covers a wide variety of institutions, corporations, Galleries, Museums, Foundations and Estates. Transcon International Inc. Presently has 28 full-time employees and anticipates hiring an additional 10 fulltime employees within 7 years following the successful completion of the project. The Company s competitors include Crozier Fine Arts in New York, Uovo in Long Island City and Mana Fine Arts which is located in New Jersey. PLEASE PROVIDE A BRIEF OVERVIEW OF THE ENTIRE PROPOSED PROJECT. IF NECESSARY, BREAK DOWN BY TAX LOT TO DESCRIBE ACTIVITIES AT EACH PROJECT LOCATION. Transcon International Inc. will acquire a 6 story industrial facility located at 131 Walnut Avenue, Bronx, New York Block 2586, Lot 26 of approximately of 137,605 square feet which they presently lease five of the six floors which accommodates storage of high value artworks. The property is presently owned by DCAS and is leased to SOBRO and in turn have leased space to Transcon International Inc. DCAS has put the facility up for sale through a public auction and it is anticipated that the sale of the property from DCAS will be sometime in October. The total project cost is approximately $17,051,000, which includes $11,000,000 for acquisition, approximately $5,751,000 for renovation and approximately $300,000 in fees. PLEASE PROVIDE A BRIEF DESCRIPITION OF HOW TH EPROPOSED PROJECT WILL AFFECT CURRENT OPERATIONS. The acquisition of the proposed project facility will provide the Company with a stable location that will allow us to continue our current operation and have additional space to expand our storage of fine art. It will able us to remain competitive in the industry because of the state of the art improvements we would be making to the facility. Having ownership will secure the future of the company from increasing rents and we will be able to control our fixed overhead. PLEASE PROVIDE A BRIEF DESCRIPTION OF RENOVATIONS/CONSTRUCTION OF THE PROPOSED PROJECT. The Company anticipates renovating the facility by adding new elevator, HVAC systems, replace windows and parapet, smoke and fire systems, Lighting, electric and plumbing. PLEASE PROVIDE A BRIEF TIMELINE FOR THE PROPOSED PROJECT Transcon International Inc. anticipates proceeding with the September 2015 NYCIDA board meeting and purchasing the property in October 2015.

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7 : NY Silver OAEPO % Coverage Period: 06/01/ /31/2015 Summary of Benefits and Coverage: What this Plan Covers & What it Costs This is only a summary. If you want more detail about your coverage and costs, you can get the complete terms in the policy or plan document at or by calling Important Questions Answers Why this Matters: What is the overall In-network: Individual $2,000 / Family You must pay all the costs up to the deductible amount before this plan deductible? $4,000. Does not apply in-network for certain begins to pay for covered services you use. Check your policy or plan office visits, preventive care, emergency care, document to see when the deductible starts over (usually, but not always, urgent care and prescription drugs. January 1st). See the chart starting on page 2 for how much you pay for covered services after you meet the deductible. Are there other deductibles No. You don't have to meet deductibles for specific services, but see the chart for specific services? starting on page 2 for other costs for services this plan covers. Is there an out-of-pocket limit on my expenses? What is not included in the out-of-pocket limit? Is there an overall annual limit on what the plan pays? Does this plan use a network of providers? Do I need a referral to see a specialist? Are there services this plan doesn't cover? Yes. In-network: Individual $5,800 / Family $11,600. Premiums and health care this plan doesn't cover. No. Yes. For a list of in-network providers, see or call No. Yes. Coverage for: Individual + Family Plan Type: EPO The out-of-pocket limit is the most you could pay during a coverage period (usually one year) for your share of the cost of covered services. This limit helps you plan for health care expenses. Even though you pay these expenses, they don't count toward the out-of pocket limit. The chart starting on page 2 describes any limits on what the plan will pay for specific covered services, such as office visits. If you use an in-network doctor or other health care provider, this plan will pay some or all of the costs of covered services. Be aware, your in-network doctor or hospital may use an out-of-network provider for some services. Plans use the term in-network, preferred, or participating for providers in their network. See the chart starting on page 2 for how this plan pays different kinds of providers. You can see the specialist you choose without permission from this plan. Some of the services this plan doesn't cover are listed on page 5. See your policy or plan document for additional information about excluded services. Questions: Call or visit us at If you aren't clear about any of the bolded terms used in this form, see the Glossary. You can view the Glossary at or call to request a copy Page 1 of 8

8 : NY Silver OAEPO % Coverage Period: 06/01/ /31/2015 Summary of Benefits and Coverage: What this Plan Covers & What it Costs Coverage for: Individual + Family Plan Type: EPO Copayments are fixed dollar amounts (for example, $15) you pay for covered health care, usually when you receive the service. Coinsurance is your share of the costs of a covered service, calculated as a percent of the allowed amount for the service. For example, if the plan's allowed amount for an overnight hospital stay is $1,000, your coinsurance payment of 20% would be $200. This may change if you haven't met your deductible. The amount the plan pays for covered services is based on the allowed amount. If an out-of-network provider charges more than the allowed amount, you may have to pay the difference. For example, if an out-of-network hospital charges $1,500 for an overnight stay and the allowed amount is $1,000, you may have to pay the $500 difference. (This is called balance billing.) This plan may encourage you to use in-network providers by charging you lower deductibles, copayments, and coinsurance amounts. Common Medical Event If you visit a health care provider's office or clinic If you have a test Services You May Need Your Cost If You Use an In-Network Provider Your Cost If You Use an Out-Of-Network Provider Limitations & Exceptions Primary care visit to treat an injury or $30 copay per visit, Not covered None illness deductible waived Specialist visit $50 copay per visit, Not covered None deductible waived Other practitioner office visit $50 copay per visit, Not covered None deductible waived for chiropractic care Preventive care /screening /immunization No charge Not covered Age and frequency schedules may apply. Diagnostic test (x-ray, blood work) Lab: $50 copay, Not covered None deductible waived; Xray: 10% coinsurance Imaging (CT/PET scans, MRIs) 10% coinsurance Not covered None Questions: Call or visit us at If you aren't clear about any of the bolded terms used in this form, see the Glossary. You can view the Glossary at or call to request a copy Page 2 of 8

9 : NY Silver OAEPO % Coverage Period: 06/01/ /31/2015 Summary of Benefits and Coverage: What this Plan Covers & What it Costs Common Medical Event If you need drugs to treat your illness or condition More Information about prescription drug coverage is available at macy-insurance/individ uals-families If you have outpatient surgery If you need immediate medical attention If you have a hospital stay Services You May Need Generic drugs Preferred brand drugs Non-preferred brand drugs Specialty drugs (e.g., self-injectable, infused and oral specialty drugs) Your Cost If You Use an In-Network Provider $10 copay (retail); $20 copay (mail order) $50 copay (retail); $100 copay (mail order) 50% coinsurance to a maximum of $750 (retail); 50% coinsurance to a maximum of $1,500 (mail order) Same as applicable tier cost share for up to a 30 day supply Your Cost If You Use an Out-Of-Network Provider Not covered Not covered Not covered Not covered Coverage for: Individual + Family Plan Type: EPO Limitations & Exceptions Covers up to a 30-day supply (retail prescription); day supply (mail order prescription). Applicable cost share plus difference (brand minus generic cost) applies for brand when generic available. No charge for generic FDA-approved women's contraceptives in-network. Precertification and step therapy required. Aetna Specialty CareRx SM - First Prescription must be filled at a participating retail pharmacy or Aetna Specialty Pharmacy. Subsequent fills must be through Aetna Specialty Pharmacy. Facility fee (e.g., ambulatory surgery 10% coinsurance Not covered None center) Physician/surgeon fees 10% coinsurance Not covered None Emergency room services $200 copay per visit, $200 copay per visit, Copay is waived if admitted. OON ER deductible waived deductible waived services cost share same as in-network. No coverage for non-emergency care. Emergency medical transportation 10% coinsurance 10% coinsurance OON cost share same as in-network. Urgent care $75 copay per visit, Not covered No coverage for non-urgent care. deductible waived Facility fee (e.g., hospital room) 10% coinsurance Not covered None Physician/surgeon fee 10% coinsurance Not covered None Questions: Call or visit us at If you aren't clear about any of the bolded terms used in this form, see the Glossary. You can view the Glossary at or call to request a copy Page 3 of 8

10 : NY Silver OAEPO % Coverage Period: 06/01/ /31/2015 Summary of Benefits and Coverage: What this Plan Covers & What it Costs Common Medical Event If you have mental health, behavioral health, or substance abuse needs If you are pregnant If you need help recovering or have other special health needs If your child needs dental or eye care Services You May Need Your Cost If You Use an In-Network Provider Your Cost If You Use an Out-Of-Network Provider Limitations & Exceptions Mental/Behavioral health outpatient $50 copay per visit, Not covered None services deductible waived Mental/Behavioral health inpatient 10% coinsurance Not covered None services Substance use disorder outpatient $50 copay per visit, Not covered None services deductible waived Substance use disorder inpatient services 10% coinsurance Not covered None Prenatal and postnatal care Prenatal: No charge; Not covered None Postnatal: 10% coinsurance Delivery and all inpatient services 10% coinsurance Not covered None Home health care 25% coinsurance, Not covered Coverage is limited to 40 visits. deductible waived Rehabilitation services $50 copay per visit, Not covered Coverage is limited to 60 visits PT/OT/ST deductible waived combined. Habilitation services $50 copay per visit, deductible waived Not covered Coverage is limited to 60 visits PT/OT/ST combined. Separate from Rehabilitation limits. Coverage is limited to 200 days. Skilled nursing care 10% coinsurance Not covered Durable medical equipment 50% coinsurance Not covered None Hospice service 10% coinsurance Not covered None Eye exam $50 copay per visit, Not covered Coverage is limited to 1 exam every 12 deductible waived months. Glasses No charge Not covered Coverage is limited to 1 pair (lenses and frames or contacts) every 12 months, unless required more frequently with appropriate documentation. Dental check-up No charge Not covered Coverage for: Individual + Family Plan Type: EPO Coverage is limited to 1 exam per 6 month period. Questions: Call or visit us at If you aren't clear about any of the bolded terms used in this form, see the Glossary. You can view the Glossary at or call to request a copy Page 4 of 8

11 : NY Silver OAEPO % Coverage Period: 06/01/ /31/2015 Summary of Benefits and Coverage: What this Plan Covers & What it Costs Excluded Services & Other Covered Services: Services Your Plan Does NOT Cover Acupuncture Cosmetic surgery Dental care (Adult) Long-term care Other Covered Services Bariatric surgery Chiropractic care (This isn't a complete list. Check your policy or plan document for other excluded services.) Non-emergency care when traveling outside the U.S. Private-duty nursing Routine eye care (Adult) Routine foot care Weight loss programs (This isn't a complete list. Check your policy or plan document for other covered services and your costs for these services.) Hearing aids - limited to a single purchase (includes repair/replace) every 3 years Coverage for: Individual + Family Plan Type: EPO Infertility treatment - limited to artificial insemination and ovulation induction Your Rights to Continue Coverage: If you lose coverage under the plan, then, depending upon the circumstances, Federal and State laws may provide protections that allow you to keep health coverage. Any such rights may be limited in duration and will require you to pay a premium, which may be significantly higher than the premium you pay while covered under the plan. Other limitations on your rights to continue coverage may also apply. For more information on your rights to continue coverage, contact the plan at You may also contact your state insurance department, the U.S. Department of Labor, Employee Benefits Security Administration at or or the U.S. Department of Health and Human Services at x61565 or Your Grievance and Appeals Rights: If you have a complaint or are dissatisfied with a denial of coverage for claims under your plan, you may be able to appeal or file a grievance. For questions about your rights, this notice, or assistance, you can contact us by calling the toll free number on your Medical ID Card. You may also contact the Department of Labor's Employee Benefits Security Administration at EBSA (3272) or You may also contact your State Department of Insurance at (212) , Additionally, a consumer assistance program can help you file an appeal. Contact: Community Service Society, Community Health Advocates,105 East 22nd Street, New York, NY 10010, (888) , cha@cssny.org, Does this Coverage Provide Minimum Essential Coverage? The Affordable Care Act requires most people to have health care coverage that qualifies as "minimum essential coverage". This plan or policy does provide minimum essential coverage. Questions: Call or visit us at If you aren't clear about any of the bolded terms used in this form, see the Glossary. You can view the Glossary at or call to request a copy Page 5 of 8

12 : NY Silver OAEPO % Coverage Period: 06/01/ /31/2015 Summary of Benefits and Coverage: What this Plan Covers & What it Costs Coverage for: Individual + Family Plan Type: EPO Does this Coverage Provide Minimum Value Standard? The Affordable Care Act establishes a minimum value standard of benefits of a health plan. The minimum value standard is 60% (actuarial value). This health coverage does meet the minimum value standard for the benefits it provides. Language Access Services: Para obtener asistencia en Español, llame al Kung kailangan ninyo ang tulong sa Tagalog tumawag sa Dinek'ehgo shika at'ohwol ninisingo, kwiijigo holne' To see examples of how this plan might cover costs for a sample medical situation, see the next page Questions: Call or visit us at If you aren't clear about any of the bolded terms used in this form, see the Glossary. You can view the Glossary at or call to request a copy Page 6 of 8

13 : Coverage Examples NY Silver OAEPO % Coverage Period: 06/01/ /31/2015 Coverage for: Individual + Family Plan Type: EPO About these Coverage Examples: These examples show how this plan might cover medical care in given situations. Use these examples to see, in general, how much financial protection a sample patient might get if they are covered under different plans. This is not a cost estimator. Don't use these examples to estimate your actual costs under this plan. The actual care you receive will be different from these examples, and the cost of that care also will be different. See the next page for important information about these examples. Amount owed to providers: $7,540 Plan pays: $5,050 Patient pays: $2,490 Sample care costs: Hospital charges (mother) Routine obstetric care Hospital charges (baby) Anesthesia Laboratory tests Prescriptions Radiology Vaccines, other preventive Total Patient pays: Deductibles Copays Coinsurance Limits or exclusions Total Having a baby (normal delivery) $2,700 $2,100 $900 $900 $500 $200 $200 $40 $7,540 $2,000 $20 $320 $150 $2,490 Amount owed to providers: $5,400 Plan pays: $2,730 Patient pays: $2,670 Sample care costs: Prescriptions Medical equipment and Supplies Office Visits and Procedures Education Laboratory tests Vaccines, other preventive Total Patient pays: Managing type 2 diabetes (routine maintenance of a well-controlled condition) Deductibles Copays Coinsurance Limits or exclusions Total $2,900 $1,300 $700 $300 $100 $100 $5,400 $2,000 $430 $160 $80 $2,670 Questions: Call or visit us at If you aren't clear about any of the bolded terms used in this form, see the Glossary. You can view the Glossary at or call to request a copy Page 7 of 8

14 : Coverage Examples NY Silver OAEPO % Coverage Period: 06/01/ /31/2015 Coverage for: Individual + Family Plan Type: EPO Questions and answers about the Coverage Examples: What are some of the assumptions behind the Coverage Examples? Costs don't include premiums. Sample care costs are based on national averages supplied by the U.S. Department of Health and Human Services, and aren't specific to a particular geographic area or health plan. The patient's condition was not an excluded or preexisting condition. All services and treatments started and ended in the same coverage period. There are no other medical expenses for any member covered under this plan. Out-of-pocket expenses are based only on treating the condition in the example. The patient received all care from in-network providers. If the patient had received care from out-of-network providers, costs would have been higher. What does a Coverage Example show? For each treatment situation, the Coverage Example helps you see how deductibles, copayments, and coinsurance can add up. It also helps you see what expenses might be left up to you to pay because the service or treatment isn't covered or payment is limited. Does the Coverage Example predict my own care needs? No. Treatments shown are just examples. The care you would receive for this condition could be different, based on your doctor's advice, your age, how serious your condition is, and many other factors. Does the Coverage Example predict my future expenses? No. Coverage Examples are not cost estimators. You can't use the examples to estimate costs for an actual condition. They are for comparative purposes only. Your own costs will be different depending on the care you receive, the prices your providers charge, and the reimbursement your health plan allows. Can I use Coverage Examples to compare plans? Yes. When you look at the Summary of Benefits and Coverage for other plans, you'll find the same Coverage Examples. When you compare plans, check the "Patient Pays" box in each example. The smaller that number, the more coverage the plan provides. Are there other costs I should consider when comparing plans? Yes. An important cost is the premium you pay. Generally, the lower your premium, the more you'll pay in out-of-pocket costs, such as copayments, deductibles, and coinsurance. You should also consider contributions to accounts such as health savings accounts (HSAs), flexible spending arrangements (FSAs) or health reimbursement accounts (HRAs) that help you pay out-of-pocket expenses. Questions: Call or visit us at If you aren't clear about any of the bolded terms used in this form, see the Glossary. You can view the Glossary at or call to request a copy Page 8 of 8

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