NYCIDA PROJECT COST/BENEFIT ANALYSIS September 10, 2015
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1 NYCIDA PROJECT COST/BENEFIT ANALYSIS September 10, 2015 APPLICANT Gabrielli Truck Sales, Ltd South Conduit Avenue Jamaica, New York PROJECT LOCATION Eastern Road Queens, NY A. Project Description: Gabrielli Truck Sales, Ltd. (the Company ) specializes in the sales, servicing, and fabrication of trucks. The Company seeks financial assistance in connection with the acquisition and construction of a 75,000 square foot facility (the Project ) located on a 222,946 square foot parcel of land located at Eastern Road, Queens, New York The Project will help the Company keep up with increasing sales and successful bids for contracts. The Company is outgrowing its existing sites and the ability to compete for additional contracts with public sector clients and commercial customers will be enhanced by the Project. Total Project costs are estimated to be $22.3 million with $7.8 million for land acquisition, $14 million for construction hard costs, $300,000 for construction soft costs, and $200,000 for furnishings and equipment. The Company currently employs 179 full-time equivalent employees at its existing facilities in New York City. Within three years, it is expected that the Company will employ 72 workers at the Project site. B. Costs to City (New York City taxes to be exempted): Mortgage Recording Tax Benefit: $ 362,375 Land Tax Abatement (NPV, 25 years): 3,475,890 Building Tax Exemption (NPV, 25 years): 11,313,480 Sales Tax Exemption: 450,000 Total Cost to NYC $ 15,601,745 C. Benefit to City (Estimated NYC direct and indirect taxes to be generated by Company) (estimated NPV %): $ 23,653,488
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11 LIST OF EXHIBITS Exhibit A: Proposed Project Activities Exhibit B: Employee Benefits Guidebook (Excerpt) Exhibit C: Compliance with the New York City Earned Sick Time Act Exhibit D: Explanation of Prior Litigation Exhibit E: History of Prior Public Financial Assistance Awarded
12 Exhibit A: Proposed Project Activities
13 Proposed Project Activities RIDER TO NYCIDA CORE BENEFITS APPLICATION 1. Applicant s proposed Project consists of the acquisition of what is currently known as the Vista Maro Site located at Eastern Road, a/k/a Brookville Boulevard, Queens, New York 11430, Block 14260, Lot 70, and construction thereon of a 75,000 square foot facility. The Vista Maro Site facility will be designed to accommodate the servicing of trucks, as well as light manufacturing and fabrication of truck bodies, which are growing and integral aspects of Applicant s operations. Additionally, 3,000 square feet of the facility will be office space, which will be utilized by service, management and clerical personnel. The total cost of the Vista Maro Site project is expected to be approximately $22,300, Applicant s plan is to move its current service, manufacturing and fabrication functions into the Vista Maro Site. The Vista Maro Site location would enable Applicant to better service commercial entities such as Mack, Ford, Kenworth, Volvo and Hino. It would also enable Applicant to better service public entities, including the City of New York and the Port Authority. Applicant expects that the Vista Maro Site project will create approximately 55 new jobs over a five year period, which would be an economic boost to the surrounding community. 2. Due to the increased volume of Applicant s business, the Jamaica Facility has become overburdened. Therefore, it is essential for the Applicant to move and reconstitute its existing service, manufacturing and fabrication functions into the Vista Maro Site. 3. Applicant intends to construct a 75,000 square foot facility on the Vista Maro Site. The facility will be State of the Art, which will contain 72,000 square feet of (i) a warehouse space, and (ii) 3,000 square feet of office space. It is anticipated that the Vista Maro Project s land acquisition and construction will cost approximately $22,300, Applicant intends to commence construction for the Vista Maro Project immediately after it has received approval from the New York City Department of Buildings. The time-frame for completion of the construction for the Vista Maro Project is approximately months thereafter. Gabrielli intends to commence business operations at the Vista Maro Site shortly after the facility has been constructed and it has received the necessary approvals from the City of New York v.1
14 Exhibit B: Employee Benefits Guidebook (Excerpt)
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18 Exhibit C: Compliance with the New York City Earned Sick Time Act
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