NYCIDA PROJECT COST/BENEFIT ANALYSIS

January 15, 2009

Applicant: Project Location:

Queens Ballpark Company, L.L.C. The project site includes the land bounded by Roosevelt
Citi Field Avenue, 126th Street, the Northern Boulevard extension and
Flushing, NY 11368 the Grand Central Parkway, in the borough of Queens and a
parcel of land containing approximately 1,620 parking spaces,
bounded by Roosevelt Avenue, 126th Street, the Grand Central
Parkway and land occupied by the New York City Transit
Authority.

Project Description

Queens Ballpark Company, L.L.C. (“the Company”), has undertaken the construction of a new
state-of-the-art Major League Baseball Stadium. The new Stadium will replace the former 56,000-
seat Shea Stadium, which is currently being demolished. Following the completion of the new
stadium, the site of Shea Stadium will be filled in to provide for surface parking for the Stadium.
The design of the new stadium is evocative of the look and feel of the historic Ebbets Field, the
former home of the Brooklyn Dodgers. The new Stadium will have the capacity to accommodate
approximately 44,100 spectators, including 42,500 total seats plus standing room capacity, in an
open-air ballpark in a structure containing approximately seven levels. It is to include private club
seats, private and party suites, food and beverage service facilities, retail space, corporate business
space, function space, facilities for media and other functions and amenities appropriate to a first-
class professional sports facility.

Construction began in the summer of 2006 and is anticipated to be completed for the start of the
2009 baseball season. Pursuant to the most recent construction report, the Stadium was
approximately 95% completed as of the end of 2008. Substantial completion of the Stadium portion
of the Project is scheduled to occur by approximately February 28, 2009.

The Company is now seeking the additional issuance of bonds backed entirely by payments from the
Company to allow for the Stadium’s completion. The additional bonds amount to $82,280,000 in
PILOT Completion Bonds. Proceeds from the additional bonds will be applied to the following uses:
i) construction costs associated with construction acceleration and government-required
modifications to the structure (e.g., for security enhancements); ii) construction costs associated with
scope modifications and additions (which will enhance both the Stadium’s and City’s revenue); and
iii) closing costs, capitalized interest and debt service reserves. Proceeds from the additional bonds
in the amount of approximately $74.7MM will be applied to costs associated with construction.

As a result of the project, it is projected that 2,209 full time equivalent employees will be employed
at the project site.
Cost Benefit Analysis

The IDA has updated its cost benefit analysis of the new Citi Field project in response to the new
requested issuance. Based on the latest information to the IDA, this new analysis, which looks at the
project’s impact on the City, includes the cost of the additional financial assistance requested by the
Company.At inducement of the project in 2006 a cost benefit analysis was completed considering
only the cost to be incurred by the City for infrastructure improvements such as site planning and
excavation work and contributions to the Stadium Capital Reserve fund. This analysis has been
updated with the most recent budget numbers for the aforementioned work as well as additional
costs not originally considered or known. These additional costs include forgone NYC Mortgage
Recording Taxes, Sales Taxes and City Income Taxes on interest. In addition, after the original
Stadium project cost-benefit was completed in 2006, the IDA adopted a more conservative
methodology for accounting for forgone tax revenues. This new, more conservative methodology
was employed for the analysis below.

Beyond updating the costs of the Stadium project, IDA also undertook to update the projected
benefits on the project, based on latest available information. The return to the City analysis has
been updated to include new revenue projections at the stadium as well as new employment
information. Benefits derived from taxes in this analysis only include those revenues that are a direct
result of the project taking place. Tax revenue that was received by NYC due to operations at the
original Shea Stadium is not being considered as part of this analysis.

This analysis has yielded a net benefit of (NPV, 2009) to New York City of $70,307,610.

Benefits to City NPV as of 2009

A. Taxes on direct and indirect activity from construction and operations $108,341,167
B. Parks Dept. savings on maint./CapEx on existing Stadium (net of lost rent) $86,721,167
C. Salvage Value of Current Stadium $4,000,000
Incremental Benefits to City $199,062,334

Costs to City
D. Infrastructure and demolition costs to City ($87,320,898)
E. City Capital reserve fund contribution ($5,637,476)
F. PV of $8.5MM to capital reserve fund in Year 30 ($2,039,087)
G. MRT cost to City ($13,283,640)
H. Sales Tax cost to City ($12,957,527)
I. Forgone Income Tax cost to City ($7,516,096)
Incremental Cost to City ($128,754,724)

Net Benefit/(Cost) $70,307,610