NYCIDA PROJECT COST/BENEFIT ANALYSIS January 8, 2015

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Theodora Avice West
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1 NYCIDA PROJECT COST/BENEFIT ANALYSIS January 8, 2015 APPLICANT 5 Bay Street LLC Whitestone Expressway Suite 300 Whitestone, NY PROJECT LOCATION 5 Bay Street Staten Island, NY A. Project Description: 5 Bay Street LLC, 5 Bay Street Phase 1, LLC and 5 Bay Street Phase 2, LLC (the Companies ), affiliates of Triangle Equities Incorporated seek to lease, redevelop and ultimately purchase an approximately 146,305 square foot parcel of land, located at 5 Bay Street in Staten Island, New York (the Project ). The site is the Historic U.S. Lighthouse Depot Complex, which is directly adjacent to the St. George Ferry Terminal, and was subject to a competitive request for proposals process through the New York City Economic Development Corporation. The Companies seek benefits for phases 1 and 2, consisting of the commercial, retail and hotel phases, of the overall redevelopment project, which also includes housing. The property will be transformed into a mixed-use development incorporating both new and historic structures. Total project cost for phase 1 and 2 is estimated to be approximately $150 million with $108 million for hard costs, $126.7 million for soft costs and $10.9 million for interest costs, and the remainder for acquisition and lease payments to the City. B. Costs to City (New York City taxes to be exempted) 1 : NYC Mortgage Recording Tax Benefit: $ 1,488,454 Total Cost to NYC $ 1,488,454 C. Benefit to City (Estimated NYC direct and indirect taxes to be generated by Company) (estimated NPV %): $ 11,903,692 1 This is a three-phase project. Only Phases 1 and 2 are receiving IDA benefits and therefore, only those phases are being analyzed as part of this Return to the City. (i.e., The residential component of the project is excluded from the analysis.)

purchase an approximately 146,305 square foot parcel of land, located at 5 Bay Street in Staten Island, New York (the Project ). The site is the Historic U.S. Lighthouse Depot Complex, which is directly adjacent to the St.

10 IDA Core Application for 5 Bay Street Phase 1, LLC and 5 Bay Street Phase 2 LLC Answers to Questions 1-4 on Page 2 (Project Information) Proposed Project Activities Q1.) Please provide a brief overview of the entire proposed Project. If necessary, breakdown by tax lot to describe activities at each Project Location. The development consists of the restoration and activation of four deteriorated buildings and a set of underground vaults on the site of the Historic U.S. Lighthouse Depot Complex as well as the construction of two new commercial buildings and parking garage. The project will also include two multi-functional, programmable public open spaces, a landscaped open space and two historic courtyards. The development will be constructed in two phases as follows: Phase 1 includes 71,949 sf of retail (including loading area), 95,758 sf structured parking, and 24,000 sf public open space. Phase 2 includes the restoration of the historic buildings along with new construction into a 118,531 sf hotel/conference center & catering facility, 37,468 sf of restaurants/retail, 5,142 sf. of office space and 74,600 sf parking. Q2.) Please provide a brief description of how the proposed Project will affect current operations. The project will increase the commercial square feet operated by Triangle Equities Management which will result in new employment to the community. A3.) Please provide a brief description of renovations/construction of the proposed Project. Phase 1 includes 71,949 sf of retail (including loading area), 95,758 sf structured parking, and 24,000 sf public open space. Phase 2 includes the restoration of the historic buildings along with new construction into a 118,531 sf hotel/conference center & catering facility, 37,468 sf of restaurants/retail, 5,142 sf. of office space and 74,600 sf parking. Q4.) Please provide a brief timeline for the entire proposed Project : All Land Use Approvals received. Summer 2015: Start of Phase 1 Construction Winter 2016 Completion of Phase 1 Construction Summer 2016 Start of Phase 2 Construction Summer 2018 Completion of Phase 2 IDA Core Application for 5 Bay Street Phase 1, LLC and 5 Bay Street Phase 2 LLC

The development consists of the restoration and activation of four deteriorated buildings and a set of underground vaults on the site of the Historic U.S.

11 Financials 1) Has Applicant any Affiliate, or Principal, or any close relative of any Principal, ever received, or is any such person or entity currently receiving, financial assistance or any other kind of non-discretionary benefit from any Public Entities? If yes, please provide details on an attached sheet. Yes, the Applicant received commitments for $6.2 million from the Staten Island Borough President Capital Funds and $1.5 million from New York State Empire State Development Corporation. 2) Has Applicant, or any Affiliate or Principal, or any existing or proposed occupant at the Project Location(s), obtained, or is any such person or entity in the process of obtaining, or contemplating obtaining, other assistance from the NYCIDA/Building NYC and /or other Public Entities? If yes, please provide details on an attached sheet. Yes. Applicants are seeking additional assistance from Federal and State Entities.

2 million from the Staten Island Borough President Capital Funds and $1.5 million from New York State Empire State Development Corporation.

12 IDA Core Application for 5 Bay Street Phase 1 LLC and 5 Bay Street Phase 2 LLC Sources of Funds

NYCIDA PROJECT COST/BENEFIT ANALYSIS June 5, 2014

NYCIDA PROJECT COST/BENEFIT ANALYSIS June 5, 2014 APPLICANT Skyline Restoration Inc. CGI Northeast, Inc. Spring Scaffolding LLC Metropolitan Northeast LLC 11-20 37 th Avenue Long Island City, NY 11101