Tompkins County Industrial Development Agency Industrial Application for Incentives

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1 Applicant Information Tompkins County Industrial Development Agency Industrial Application for Incentives Date: Name of Company/Applicant: Incodema3D LLC Owner: The Heights Group LLC 407 Cliff St. City/State/ZIP: Ithaca, NY Primary Contact: Illa Burbank Phone: x231 Fax: Will a separate company hold title to/own the property in question that is separate from the operating company/applicant? If yes, please provide the name and contact information for that entity. Name: 330 Main St. Holdings LLC 407 Cliff St. City/State/Zip: Ithaca, NY Contact: Illa Burbank Phone: x231 Fax: Owner: Describe the terms and conditions of the lease between the applicant and the owner of the property. Final terms are being negotiated. Terms will be triple-net. Applicant Attorney: Adam Klausner 409 Taughannock Blvd City/State/ZIP: Ithaca, NY Primary Contact: Phone: Fax: TCIDA Industrial Application for Incentives Page 1

2 Applicant Accountant: Sciarabba Walker 410 E. Upland Rd. City/State/ZIP: Ithaca, NY Primary Contact: Jeff Gorsky Phone: Fax: Applicant Engineer/Architect (if known): Delta Engineers 860 Hooper Rd. City/State/ZIP: Endwell, NY Primary Contact: Phone: Fax Applicant Contractor (if known): City/State/ZIP: Primary Contact: Phone: Fax: Business History Year Company was Founded: 2014 NAICS Code: Type of Ownership (Corporation, LLC, Sole Proprietor) Product or Service: Additive manufacturing (industrial 3D printing) in plastics and metal Major Customers: Customer base is nationwide with some exports. The IDA avoids offering incentives to businesses that will compete with or displace existing Tompkins County businesses. Major Suppliers: Stratasys, DSM Desotech, EOS, Airgas TCIDA Industrial Application for Incentives Page 2

3 Who are your major competitors in Tompkins County? There are no other industrial 3d printers in Tompkins County Has your business ever received incentives tied to job creation from local governments in New York State? Yes x No If Yes, please describe. Were the goals met? Yes No If No, why were goals not met? After expansion: Annual Sales to customers in Tompkins County $ Est$250,000 Percent subject to sales tax 5% Annual purchases of operating items subject to local sales tax $ 3% Business profit history. Please supply in spreadsheet format five (5) years of Past History and Three (3) years future projections. Historical Projected Years Revenues $2,400,000 $6,000,000 $12,000,000 Profits $100,000 $1,200,000 $2,400,000 Project Description Please give a brief narrative description of the project. Incodema3D LLC is a spin-off company started on January 22, Part of Incodema3D bought out I Want It Now-RP Inc., which was the plastics division of industrial 3D printing and is located in Syracuse. The other portion of the business carved out the metal 3D printing division which was owned and housed at Incodema Inc. in Ithaca. The new entity will be combined and housed at 330 Main St. in Freeville, relocating the plastics division which is still located in Syracuse. Incodema3D has applied through the Start-UP NY program, working with Cornell University. As the metals 3D printing as an emerging industry, demand for this product is extremely high. We have already purchased two new machines at an investment of over $1.5 million and project a job growth with over 50 new employees in the next five years. TCIDA Industrial Application for Incentives Page 3

4 Location: 330 Main St., Freeville, NY Property size (acres) both existing and proposed: 24 Building size (square feet) both existing and proposed: 60,000 sq.ft. Proposed project start and completion dates: Late July 2014 to October 2014 What types of green building practices do you plan to use, if any? Investigating solar panels, rechargeable batteries Do you certify that the project will not result in the relocation of all or part of any business or jobs from within New York State to Tompkins County? x Yes No Will this project result in a regular increase in overnight visitors to your facility (e.g. for training programs)? x Yes No If Yes, number of visitors per year 50 Average duration of stay (days) 2-3 Occupancy List the name(s), nature of business of proposed tenant(s), and percentage of total square footage to be used for each tenant (Additional sheets may be attached if necessary). Of the total 60,000 sq.ft. for the building, Incodema3D will occupy 20,000 sq.ft. The building is currently in two, large, attached 30,000 sq.ft. sections. Incodema3D will occupy the south side of one section, leaving a 10,000 sq.ft space open in that section. The remaining 30,000 sq.ft. section is wide open as it was formerly a warehouse. Plans are being developed to lease the remaining space. Project Costs Value of land to be acquired (if any): Amount % subject to sales tax N/A Value of building to be acquired (if any): 600,000 N/A Cost of new construction: % Value of improvements to existing building: 500,000 60% Value of equipment to be acquired: $6,000, % Other: $50,000 40% TOTAL: $7,150,000 N/A TCIDA Industrial Application for Incentives Page 4

5 For IDA to fill out Estimated reimbursement of soft costs based on project cost: Agency Fee: Agency Counsel Fee: Agency Bond Counsel Fee: Financing Amount of anticipated financing from a lending institution $825,000 (Please note: the applicant must inform the TCIDA at the time of issuance of commitment letter if the financing will exceed the amount stated here.) Value of Incentives Property tax abatement Assumptions $800,000 Value of increase in assessment 4% Annual increase in assessment and tax rate New Taxes Paid $99,203 Taxes Abated $96,870 Year Abatement County Town School County Town School 1 90% ,815 4,972 1,039 16, % 1, ,314 4, , % 2, ,011 3, , % 3, ,916 3, , % 3, ,043 2, , % 4,994 1,044 16,403 1, , % 6,093 1,273 20, ,948 Totals 22,076 4,613 72,514 21,557 4,505 70,808 Value of sales tax abatement: $505,600 Estimated length of sales tax abatement (years): 1 year Estimated value of abatement for facility construction including information on assumptions used in calculations: 60% of $500,000 estimated renovation costs x 8% = $24,000 Estimated value of abatement for furniture, fixtures and equipment including information on assumptions used in calculations: 100% of $6,000,000 equipment outlays and 40% of $50,000 furniture and fixture costs x 8% = $481,600 Mortgage Recording tax abatement: $2,063 TCIDA Industrial Application for Incentives Page 5

6 Other government incentives or support include summary of program, name of contact person and terms and conditions of program: Startup NY - New York State income tax, corporate tax, and employee income tax incentives. Contact is Tom Schryver at Cornell Need for Incentives Are you asking for a schedule of incentives that deviates from the IDA s Standard property tax abatement (as listed below)? Yes x No Year Abatement 1 90% 2 77% 3 64% 4 51% 5 39% 6 26% 7 13% If the applicant is requesting incentives that are greater than the IDA s Standard Policies, please include a detailed description and justification for this request. Employment Information (please note that during the course of the abatement you will be required to provide detailed employment information annually.) Please provide a description of the benefits that you offer to your employees. Health and dental insurance paid partially by the company (after 90 days) Company paid life insurance ($25,000), long-term disability, accidental death & dismemberment policy Two weeks paid time off after one year of service, escalating with continued service 401(k) program TCIDA Industrial Application for Incentives Page 6

7 Please provide a description of internal training and advancement opportunities offered to your employees. As a new industry, most of the training is on-the-job training as there are no training programs for industrial 3D printing. Unskilled workers would likely be started in the cleaning/finishing departments. Advancement would be possible with training in 3D modeling software to program the machines and handle quotes. Discussions with TC3 may lead to more formal training opportunities. What percentages of your current positions do women occupy? 11% What percentages of your current positions do minorities occupy? 0% Are you willing to pay a livable wage as defined by the Alternatives Federal Credit Union (AFCU) of Ithaca, NY ( to all employees for the duration of the abatements? Most workers will receive the livable wage; however, trainees and interns usually receive a lower rate. Yes X No What percent of current workforce and management are in: Tompkins County? 33% In New York State? 100% Out of New York State? 0% Do you have a strategy for ensuring diversity in hiring? x Yes No If yes, please describe. As positions become available, we will work closely with workforce development. In addition, we are working with TC3 and Cornell to develop workforce training programs. Will you allow your building to used as a polling facility? Yes x No (Incodema3D will be a secure facility due to the sensitive nature of parts being built) TCIDA Industrial Application for Incentives Page 7

8 Please provide your Employment Plan Permanent Occupations in Company Current Permanent Full-Time Jobs by Occupation Average Annual Salary Ranges/ Hourly Wage Number of Employees New Jobs Added in Year 1 Projection of New Permanent Full-Time Jobs New Jobs Added in Year 2 New Jobs Added in Year 3 Total New Jobs Professional: Clerical: Sales: Services: Construction: Manufacturing: High Skilled: Medium Skilled: Basic Skilled: Other (Describe): Management Marketing/Develop Total: Estimated percentage of new hires who would be unemployed at time of hire 10% Construction Labor Will you use contractors who: Have a certified apprenticeship program Yes X No Pay a prevailing wage Yes X No Use Local Labor X Yes No TCIDA Industrial Application for Incentives Page 8

9 Environmental Review Environmental Assessment Form short or long Submitted to: Agency name: A full environmental review was completed by Delta Engineers with no environmental issues noted Delta Engineers Agency address: Date of submission: Status of submission: (please note: an environmental review must be completed before TCIDA can vote on proposed financial incentive. It is the applicant s responsibility to provide a copy of the determination of environmental impact by another agency to TCIDA.) Permits Describe other permits required and status of approval process. Zoning variance is in the final stages of approval with Dryden. A building permit will also be required. Other Do you have any thing else you would like to tell TCIDA regarding this project? Incodema3D is garnering significant interest from large, Fortune 500 companies across the nation, especially in the aerospace, medical and automotive industries. Incodema3D will bring significant sales from out-of-state. In addition, many companies send engineers and auditors to review and certify a facility before approving them as vendor, which will bring visitors to Ithaca. As the metal printing is an infant industry, many companies are still trying to understand the best application of the process to their needs. Incodema3D plans to build out a training room, and will offer training sessions to companies. TCIDA Industrial Application for Incentives Page 9

10 CERTIFICATION Sean Whittaker deposes that she/he is the CEO (Name of chief executive officer of company submitting application) of Incodema3D LLC and member of 330 Main St. Holdings, the corporations named in the attached application; that (Company Name) he has read the foregoing application and knows the contents thereof; that the same is true to his knowledge. (Title) Deponent further says that the reason this verification is made by the deponent and not by Incodema3D LLC and 300 Main St. Holding is because the said company is a corporation. (Company Name) The grounds of deponent s belief relative to all matters in the said application which are not stated upon his own personal knowledge, are investigations which deponent has caused to be made concerning the subject matter of this application as well as information acquired by deponent in the course of his duties as an officer of and from the books and papers of said corporation. As an officer of said corporation (hereinafter referred to as the Applicant ), deponent acknowledges and agrees that applicant shall be and is responsible for all costs incurred by the nonprofit Tompkins County Industrial Development Agency (hereinafter referred to as the Agency ) acting in behalf of the attached application whether or not the application, the project it describes, the attendant negotiations and ultimately the necessary issue of bonds or transfer of title are ever carried to successful conclusion. If, for any reason whatsoever, the Applicant fails to conclude or consummate necessary negotiations or fails to act 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 Applicant are unable to find buyers willing to purchase the total bond issue required or financing for the project, then upon presentation of invoice, the Applicant shall pay to the Agency, its agents, or assigns all actual costs involved in conduct of the application, up to that date and time, including but not limited to fees of bond counsel for the Agency and fees of general counsel for the Agency. Upon successful conclusion and sale of the required bond issue or transfer of title the Applicant shall pay to the Agency an administrative fee set by the Agency, not to exceed an amount equal to 1% of the total project cost. The cost incurred by the Agency and paid by the Applicant, including bond counsel, the Agency s general counsel s fees and the Agency s administrative fees, may be considered as a cost of the project and included as part of the resultant bond issue. Applicant hereby understands and agrees, in accordance with Section 875(3) of the New York General Municipal Law, that any New York State and local sales and use tax exemption claimed by Applicant and approved by the Agency in connection with the Project may be subject to recapture by the Agency under such terms and conditions as will be set forth in the Agent Agreement to be entered into by and between the Agency and the Applicant. The Applicant further represents and warrants that the information contained in this Application, including without limitation information regarding the amount of New York State and local sales and use tax exemption benefits, is true, accurate and complete. SIGNATURE PAGE FOLLOWS ON SEPARATE PAGE TCIDA Industrial Application for Incentives Page 10

11 CERTIFICATION SIGNATURE PAGE Signature of chief officer of company submitting application NOTARY Sworn to before me this day of, 20 TCIDA Industrial Application for Incentives Page 11

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