Warren Washington Counties Industrial Development Agency

Counties of Warren and Washington Industrial Development Agency

I. The availability of tax-exempt bonds, beneficial PILOT agreements, sales tax exemption, and mortgage tax treatment usually afforded only to municipalities which make Industrial Development Agency projects attractive to private businesses. IDA Bonds are often more marketable than the notes of a private company.

II. Members of Agency

The members of the Counties of Warren and Washington Industrial Development Agency are appointed by the Boards of Supervisors of Warren and Washington Counties.

The members serve without pay, give freely of their time and expertise to contribute to the economic development of the Counties of Warren and Washington. They look forward to further service in this area and welcome the opportunity to be of service to potential applicants for Agency funding.

III. Summary of Steps Involved

The following is a general overview of the steps involved in the process of Agency Financing:

1. Application prepared and submitted to the , Administrative Agent together with supporting documents.

2. Detailed review of application by Administrative Agent.

3. Submission of additional information if required to permit the Agency to fully and completely review the Application.

4. Financial Review Committee reviews application; may request additional information & documentation necessary to determine feasibility of project.

5. Detailed review of application including Environmental Assessment Form, by Legal Counsel.

6. Application and supporting documents delivered to Members for their review,

a) The Agency reviews the application, adopts a resolution describing the project and the financial assistance contemplated by the Agency with respect thereto, and schedules public hearing to be held in the city, town, or village where the project proposes to locate: thirty (30) days published notice of the hearing is required , and thirty (30) days notice of the hearing to the Chief Executive Officer of each municipality and school district in which the project is located is required.

b) The Agency considers the environmental aspects of the proposed project. A complete environmental review is generally handled by the Town Planning Board.

c) SEQRA Notices and Waiting Periods, when required.

d) The Agency and applicant negotiate proposed terms of Payments in Lieu of Taxes (PILOT) Agreement, in accordance with the Agency’s Tax Abatement Policy set forth at Sections X through XIII of this manual. Notification and approval of Town is required in some cases.

e) Agency holds a public hearing for the project (including the terms of the proposed PILOT agreement) in the city, town, or village where the project proposes to locate.

f) Inducement resolution is voted on by the Agency at a duly noticed public meeting, including approval of terms of PILOT agreement.

g) Preliminary Agreement executed between Agency and applicant.

h) Notification to New York State Department of Taxation & Finance - Form ST-60 within 30 days of appointment.

7. Agency submits request for tax-exempt bond allocation from N.Y.S. Department of Commerce (Tax-exempt projects, except 501(c) 3 projects).

8. Applicable elected representative approves project (Tax-exempt projects; TEFRA requirement).

9. Applicant and bond purchaser negotiate terms of bonds.

10. Applicant obtains bond purchase commitment letter.

11. Negotiation of terms of Financing documents between legal counsel to Agency, counsel to applicant, counsel to bond purchaser, and bond counsel.

12. Financing Resolution voted on by Agency at duly noticed public meeting.

13. Closing - execution of Financing Documents.

14. Copies of PILOT Agreement are distributed to all taxing entities within fifteen days of signing. Application for tax exempt status (Form EA-412-a) sent to assessor with copy of PILOT agreement.

15. Annual Reporting Requirements.

IV. Costs Involved in Financing the Project

The application fee and the administrative fee are costs that will be incurred by the applicant, and are fully set forth on page 2 of this manual entitled FEES AND AGENCY’S COSTS.

Legal fees constitute the bulk of the remaining costs involved. The nature and amount of the applicant's legal fees depend on whatever arrangements it makes with its attorneys.

The Agency's legal counsel fees are based on the number of hours spent on the project. The hourly rates range from $140 per hour for associates and $175 per hour for partners (subject to change with Agency approval). In connection with a particular project, and after a review of the extent and complexity of the same, Counsel will be able to quote a maximum fee for the project.

The Applicant is responsible for the Agency's legal counsel fees and for any disbursements regarding its project made by the Agency's legal counsel or by the Agency itself.

The bond counsel for an Agency issue must be approved by the ultimate bond purchaser and by the Agency. The nature and amount of bond counsel fees vary.

In some cases, especially those projects involving smaller bond issues, the Agency's legal counsel will prepare the bond documents and give a legal opinion acceptable to the Lender. This is done to reduce the cost to the developer of smaller projects in an effort to contain costs for smaller projects.

The legal and administrative fees of the bond purchaser will vary and can be ascertained when discussing the proposed bond purchase with prospective buyers. The applicant can anticipate that such costs will be passed through to it by the bond purchaser.

Any accounting services required by the applicant for planning the financing will increase the costs of financing the project.

All of the above costs should be considered in planning the project. These costs may be reimbursed to the applicant through the bond proceeds. Consequently, they should be considered and included in the applicant's proposal for bond financing set forth in the Application.