Ulster County IDA Kingstonian Cost Benefit Analysis

10/6/2020 Kingstonian - 2 Components | Cost Benefit Analysis | Inform Analytics | Powered by CGR
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Cost-Benefit Analysis for Kingstonian - 2 Components
Prepared by Ulster County Development Agency using InformAnalytics
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https://ny.informanalytics.org/cba/report/516 1/6
Executive Summary
INVESTOR TOTAL INVESTED LOCATION TIMELINE
Kingstonian $54.9 Million N Front Street, 25 Years

Kingston, NY 12401
F1 FIGURE 1
Discounted* Net Benefits for Kingstonian - 2 Components by Year

Total Net Benefits: $44,783,000
30M
20M
FT
10M
-10M
Ye 1
Ye 2
Ye 3
Ye 4
Ye 5
Ye 6
Ye 7
Ye 8
Ye r9
Ye 10
Ye 11
Ye 12
Ye 13
Ye 14
Ye 15
Ye 16
Ye 17
Ye 18
Ye 19
Ye 20
Ye 21
Ye 22
Ye 23
Ye 24
25
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Benefits Costs Net Benefits

Discounted at 2%
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F2 FIGURE 2 F3 FIGURE 3
Total Jobs Total Payroll

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Temporary
Temporary
Ongoing
Ongoing
0 20 40 60
0 200 400 Millions of Dollars
Direct Spillover Direct Spillover
Proposed Investment
Kingstonian proposes to invest $54.9 million at N Front Street, Kingston, NY 12401 over 25 years. Ulster County
Development Agency staff summarize the proposed with the following: Mixed use project - Housing, hotel, retail, parking
garage
T1 TABLE 1 F4 FIGURE 4
Proposed Investments Location of Investment
Description Amount
CONSTRUCTION SPENDING
Hotel/Retail Space/Housing $21,314,000
Parking Garage
OTHER SPENDING
Infrastructure
FT
$16,856,000
$4,060,000
A
Furnishings $2,800,000
Soft Costs $7,325,000

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Land $500,000
Building Acquisition $2,000,000

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Total Investments $54,855,000
Discounted Total (2%) $54,855,000
May not sum to total due to rounding.
Cost-Benefit Analysis
A cost-benefit analysis of this proposed investment was conducted using InformAnalytics, an economic impact model
developed by CGR. The report estimates the impact that a potential project will have on the local economy based on
information provided by Ulster County Development Agency. The report calculates the costs and benefits for specified
local taxing districts over the first 25 years, with future returns discounted at a 2% rate.
T2 TABLE 2
Estimated Costs or Incentives

Ulster County Development Agency is considering the following incentive package for Kingstonian.
Description Nominal Value Discounted Value*
Property Tax Exemption
Sales Tax Exemption
Mortage Recording Tax Exemption

FT $25,017,000
$2,556,000
$326,000
$19,980,000
$2,556,000
$326,000
A
Total Costs $27,899,000 $22,862,000

* Discounted at 2%
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T3 TABLE 3
State & Regional Impact (Life of Project)

The following table estimates the total benefits from the project over its lifetime.
Description Direct Spillover Total
REGIONAL BENEFITS $47,761,000 $27,983,000 $75,744,000
To Private Individuals $46,325,000 $27,632,000 $73,956,000
Temporary Payroll $14,584,000 $4,970,000 $19,553,000
Ongoing Payroll $31,741,000 $22,662,000 $54,403,000
To the Public $1,436,000 $352,000 $1,788,000
Property Tax Revenue $847,000 N/A $847,000
Temporary Sales Tax

Revenue
Ongoing Sales Tax

Revenue
FT $186,000
$404,000
$63,000
$288,000
$249,000
$693,000
A
STATE BENEFITS $2,521,000 $1,688,000 $4,209,000
To the Public $2,521,000 $1,688,000 $4,209,000

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Temporary Income
$724,000 $247,000 $971,000
Tax Revenue
Ongoing Income Tax

$1,207,000 $1,089,000 $2,297,000
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Revenue
Temporary Sales Tax

$186,000 $63,000 $249,000
Revenue
Ongoing Sales Tax

$404,000 $288,000 $693,000
Revenue
Total Benefits to State &

$50,282,000 $29,671,000 $79,953,000
Region
Discounted Total Benefits

$43,128,000 $24,516,000 $67,644,000
(2%)
T4 TABLE 4
Benefit to Cost Ratio

The following benefit to cost ratios were calculated using the discounted totals.
Description Benefit* Cost* Ratio
Region $64,069,000 $21,475,000 3:1
State $3,575,000 $1,387,000 3:1
Grand Total $67,644,000 $22,862,000 3:1

* Discounted at 2%
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CGR has exercised reasonable professional care and diligence in the the production and design of the InformAnalytics™ tool. However, the data used is provided
by users. InformAnalytics does not independently verify, validate or audit the data supplied by users. CGR makes no representations or warranties with respect to
the accuracy of the data supplied by users.

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Cost-Benefit Analysis for Kingstonian - 2 Components
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Executive Summary

Kingston, NY 12401
F1 FIGURE 1
Discounted* Net Benefits for Kingstonian - 2 Components by Year

30M
20M
FT
10M
-10M
Ye 1
Ye 2
Ye 3
Ye 4
Ye 5
Ye 6
Ye 7
Ye 8
Ye r9
Ye 10
Ye 11
Ye 12
Ye 13
Ye 14
Ye 15
Ye 16
Ye 17
Ye 18
Ye 19
Ye 20
Ye 21
Ye 22
Ye 23
Ye 24
25
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Ye

Discounted at 2%
R

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Temporary
Temporary
Ongoing
Ongoing
0 20 40 60
Proposed Investment
garage
Description Amount
Hotel/Retail Space/Housing $21,314,000
Parking Garage
OTHER SPENDING
Infrastructure
FT
$16,856,000
$4,060,000
A

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Land $500,000

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T2 TABLE 2

Sales Tax Exemption

FT $25,017,000
$2,556,000
$326,000
$19,980,000
$2,556,000
$326,000
A
Other Incentives $3,000,000 $3,000,000
Total Costs $30,899,000 $25,862,000

R

* Discounted at 2%
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T3 TABLE 3

Ongoing Payroll $31,741,000 $22,662,000 $54,403,000
To the Public $1,436,000 $352,000 $1,788,000
Temporary Sales Tax

Revenue
Ongoing Sales Tax

Revenue
FT $186,000
$404,000
$63,000
$288,000
$249,000
$693,000
A
STATE BENEFITS $2,521,000 $1,688,000 $4,209,000
To the Public $2,521,000 $1,688,000 $4,209,000

R
Temporary Income
$724,000 $247,000 $971,000
Tax Revenue
Ongoing Income Tax

$1,207,000 $1,089,000 $2,297,000
D
Revenue
Temporary Sales Tax

$186,000 $63,000 $249,000
Revenue
Ongoing Sales Tax

$404,000 $288,000 $693,000
Revenue

$50,282,000 $29,671,000 $79,953,000
Region

$43,128,000 $24,516,000 $67,644,000
(2%)
T4 TABLE 4

Region $64,069,000 $21,475,000 3:1
State $3,575,000 $1,387,000 3:1
Grand Total $67,644,000 $25,862,000 3:1

* Discounted at 2%
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10/6/2020 Kingstonian - All 1 Component | Cost Benefit Analysis | Inform Analytics | Powered by CGR
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Cost-Benefit Analysis for Kingstonian - All 1 Component
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Executive Summary

Kingston, NY 12401
F1 FIGURE 1
Discounted* Net Benefits for Kingstonian - All 1 Component by Year

30M
20M
FT
10M
Year1
● Ne
0
-10M
Ye 1
Ye 2
Ye 3
Ye 4
Ye 5
Ye 6
Ye 7
Ye 8
Ye r9
Ye 10
Ye 11
Ye 12
Ye 13
Ye 14
Ye 15
Ye 16
Ye 17
Ye 18
Ye 19
Ye 20
Ye 21
Ye 22
Ye 23
Ye 24
25
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Discounted at 2%
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Temporary
Temporary
Ongoing
Ongoing
0 20 40 60
Proposed Investment
garage
Description Amount
Hotel/Parking
FT
Garage/Retail $38,200,000
Space/Housing
OTHER SPENDING
Infrastructure $4,060,000
A
Land $500,000
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T2 TABLE 2

Sales Tax Exemption

FT $25,017,000
$2,557,000
$326,000
$19,980,000
$2,557,000
$326,000
A
Total Costs $27,900,000 $22,862,000

* Discounted at 2%
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T3 TABLE 3

Ongoing Payroll $31,391,000 $23,026,000 $54,417,000
To the Public $1,432,000 $356,000 $1,788,000
Temporary Sales Tax

Revenue
Ongoing Sales Tax

Revenue
FT $186,000
$400,000
$63,000
$293,000
$249,000
$693,000
A
STATE BENEFITS $2,487,000 $1,711,000 $4,198,000
To the Public $2,487,000 $1,711,000 $4,198,000

R
Temporary Income
$725,000 $247,000 $971,000
Tax Revenue
Ongoing Income Tax

$1,177,000 $1,108,000 $2,285,000
D
Revenue
Temporary Sales Tax

$186,000 $63,000 $249,000
Revenue
Ongoing Sales Tax

$400,000 $293,000 $693,000
Revenue

$49,905,000 $30,067,000 $79,972,000
Region

$42,834,000 $24,828,000 $67,662,000
(2%)
T4 TABLE 4

Region $64,095,000 $21,475,000 3:1
State $3,567,000 $1,387,000 3:1
Grand Total $67,662,000 $22,862,000 3:1

* Discounted at 2%
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Cost-Benefit Analysis for Kingstonian - All 1 Component
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Executive Summary

Kingston, NY 12401
F1 FIGURE 1
Discounted* Net Benefits for Kingstonian - All 1 Component by Year

30M
20M
FT
10M
-10M
Ye 1
Ye 2
Ye 3
Ye 4
Ye 5
Ye 6
Ye 7
Ye 8
Ye r9
Ye 10
Ye 11
Ye 12
Ye 13
Ye 14
Ye 15
Ye 16
Ye 17
Ye 18
Ye 19
Ye 20
Ye 21
Ye 22
Ye 23
Ye 24
25
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Discounted at 2%
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Temporary
Temporary
Ongoing
Ongoing
0 20 40 60
Proposed Investment
garage
Description Amount
Hotel/Parking
FT
Garage/Retail $38,200,000
Space/Housing
OTHER SPENDING
Infrastructure $4,060,000
A
Land $500,000
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T2 TABLE 2

Sales Tax Exemption

FT $25,017,000
$2,557,000
$326,000
$19,980,000
$2,557,000
$326,000
A
Other Incentives $3,000,000 $3,000,000
Total Costs $30,900,000 $25,862,000

R

* Discounted at 2%
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T3 TABLE 3

Ongoing Payroll $31,391,000 $23,026,000 $54,417,000
To the Public $1,432,000 $356,000 $1,788,000
Temporary Sales Tax

Revenue
Ongoing Sales Tax

Revenue
FT $186,000
$400,000
$63,000
$293,000
$249,000
$693,000
A
STATE BENEFITS $2,487,000 $1,711,000 $4,198,000
To the Public $2,487,000 $1,711,000 $4,198,000

R
Temporary Income
$725,000 $247,000 $971,000
Tax Revenue
Ongoing Income Tax

$1,177,000 $1,108,000 $2,285,000
D
Revenue
Temporary Sales Tax

$186,000 $63,000 $249,000
Revenue
Ongoing Sales Tax

$400,000 $293,000 $693,000
Revenue

$49,905,000 $30,067,000 $79,972,000
Region

$42,834,000 $24,828,000 $67,662,000
(2%)
T4 TABLE 4

Region $64,095,000 $21,475,000 3:1
State $3,567,000 $1,387,000 3:1
Grand Total $67,662,000 $25,862,000 3:1

* Discounted at 2%
FT

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10/6/2020 Kingstonian - 2 Components | Cost Benefit Analysis | Inform Analytics | Powered by CGR

INVESTOR TOTAL INVESTED LOCATION TIMELINE

Kingstonian $54.9 Million N Front Street, 25 Years

Discounted* Net Benefits for Kingstonian - 2 Components by Year

Benefits Costs Net Benefits

Total Jobs Total Payroll

Direct Spillover Direct Spillover

Proposed Investments Location of Investment

Hotel/Retail Space/Housing $21,314,000

Soft Costs $7,325,000

Building Acquisition $2,000,000

Total Investments $54,855,000

Discounted Total (2%) $54,855,000

May not sum to total due to rounding.

Estimated Costs or Incentives

Description Nominal Value Discounted Value*

Property Tax Exemption

Sales Tax Exemption

Mortage Recording Tax Exemption

May not sum to total due to rounding.

State & Regional Impact (Life of Project)

Description Direct Spillover Total

REGIONAL BENEFITS $47,761,000 $27,983,000 $75,744,000

To Private Individuals $46,325,000 $27,632,000 $73,956,000

Temporary Payroll $14,584,000 $4,970,000 $19,553,000

Ongoing Payroll $31,741,000 $22,662,000 $54,403,000

To the Public $1,436,000 $352,000 $1,788,000

Property Tax Revenue $847,000 N/A $847,000

Temporary Sales Tax

Ongoing Sales Tax

To the Public $2,521,000 $1,688,000 $4,209,000

Ongoing Income Tax

Temporary Sales Tax

Ongoing Sales Tax

Total Benefits to State &

Discounted Total Benefits

May not sum to total due to rounding.

Benefit to Cost Ratio

Description Benefit* Cost* Ratio

Region $64,069,000 $21,475,000 3:1

State $3,575,000 $1,387,000 3:1

Grand Total $67,644,000 $22,862,000 3:1

May not sum to total due to rounding.

the accuracy of the data supplied by users.

INVESTOR TOTAL INVESTED LOCATION TIMELINE

Kingstonian $54.9 Million N Front Street, 25 Years

Discounted* Net Benefits for Kingstonian - 2 Components by Year

Benefits Costs Net Benefits

Total Jobs Total Payroll

Direct Spillover Direct Spillover

Proposed Investments Location of Investment

Hotel/Retail Space/Housing $21,314,000

Soft Costs $7,325,000

Building Acquisition $2,000,000

Total Investments $54,855,000

Discounted Total (2%) $54,855,000

May not sum to total due to rounding.

Estimated Costs or Incentives

Description Nominal Value Discounted Value*

Property Tax Exemption

Sales Tax Exemption

Mortage Recording Tax Exemption

Total Costs $30,899,000 $25,862,000