NYCIDA PROJECT COST/BENEFIT ANALYSIS
January 3, 2013
APPLICANT
Art to Frames Inc., Y Picture Frames Corp.,
And Yale Picture Frame & Moulding USA
Corp.
770 5th Avenue
a/k/a 770-773 5th Avenue
a/k/a 227 28th Street
Brooklyn, NY 11232
PROJECT LOCATION
770 5th Avenue
a/k/a 770-773 5th Avenue
a/k/a 227 28th Street
Brooklyn, NY 11232
A. Project Description:
770 Frame LLC seeks assistance for the benefit of Art to Frames Inc., Y Picture Frames Corp. and
Yale Picture Frame & Moulding USA Corp., (the “Companies”), in connection with the acquisition,
furnishing and/or equipping of an approximately 19,600 square foot building located on an
approximately 21,540 square foot parcel of land (the “Project”), which the Companies presently
lease. The Companies are New York corporations, and affiliates, that manufacture and distribute
custom picture frames, collages, letter boards and canvases.
Total Project costs are estimated to be approximately $3,940,410 with approximately
$3,586,410 for acquisition, $140,000 for machinery, furnishing and equipment, and $214,000
for fees.
The Company currently employs 31 full-time employees at the Project location, and projects
adding 14, for a total of 45 full time employees within three years.
B. Costs to City (New York City taxes to be exempted):
Mortgage Recording Tax Benefit:
Land Tax Abatement (NPV, 25 years):
Building Tax Exemption (NPV, 25 years):
Sales Tax Exemption:
Total Cost to NYC
C. Benefit to City (Estimated NYC direct and indirect taxes to be
generated by Company) (estimated NPV 25 years @ 6.25%):
$
$
55,581
410,321
835,731
6,300
1,307,933
$
2,597,322
Core Application – Applicant Information
Company Contact Information
This page collects information for all contacts involved in the Project.
Applicant Name: Art to Frames Inc., Y Picture Frames Corp. and Yale Picture Frame & Moulding USA Corp.
Operating Company Address: 770 5th Avenue a/k/a 770-773 5th Avenue a/k/a 227 28th Street, Brooklyn, New York 11232
Website Address: http://www.arttoframes.com
EIN #:
NAICS Code: 339999
Date of Application: November 19, 2012
1. Officer of Applicant serving as contact person:
Name/Title:
Schneur Minsky
Firm:
Phone:
Fax:
E-mail Address:
Address:
Art to Frames Inc., Y Picture Frames Corp. and Yale
Picture Frame & Moulding USA Corp.
770 5th Avenue, Brooklyn, New York 11232
2. Attorney of Applicant:
Name:
Neil Kupferman
Firm:
Phone:
Fax:
E-mail Address:
Address:
Neil Kupferman Law
459 6th Avenue, Brooklyn, New York 11215
3. Accountant of Applicant:
Name:
Moishe Simon
Firm:
Phone:
Fax:
E-mail Address:
Address:
Moishe Simon CPA
26 Court Street #1710, Brooklyn, New York 11242
4. Other Advisor/Consultant to Applicant (if applicable):
Name:
Valcia Miceli
Firm:
Phone:
Fax:
E-mail Address:
Address:
3
Val Funding Inc.
16 Clay Street, New City, New York 10956
Core Application- Project Description
Proposed Project Activities
This page provides a general outline of the NYCIDA/NYCCRC project.
1. Please provide a brief overview of the entire proposed Project. If necessary break down Project activities by tax lot to descr be activities at
each Project Location.
The Companies are seeking to acquire their current, leased facility at 770 5th Avenue a/k/a 770-773 5th Avenue a/k/a 227 28th Street, Brooklyn,
New York 11232. The Company will also purchase a 4-foot by 8-foot industrial printer with the ability to print on wood, metal and glass. The
total project cost is approximately $3.9m, which includes $3.586m for land and building acquisition, $140,000 for machinery and equipment
purchases and $214,000 in fees and closing costs.
2. Please provide a brief description of how the proposed Project will affect current operations.
Acquiring the facility will enable the Company to have a stable location that will enable them to continue current operations as well as allow the
Company to enter into new markets. The new equipment will create new opportunities and product offerings at competitive prices. With the
introduction of new products, expansion into new markets and the greater utilization of the internet, the Companies expect to hire over 20 new,
full-time employees in the next few years.
3. Please provide a brief description of renovations/construction of the proposed Project.
No renovations/construction to take place.
4. Please provide a brief timeline for the entire proposed Project.
The Companies anticipate proceeding to the January 2013 NYCIDA Board meeting and closing in the same month.
5
Core Application- Proposed Project Packet (4 of 4)
Wage Information
The questions in this section apply only to Permanent Employees employed or to be employed at the Project Location.
1.
If Full-time Employees are to be relocated on the Facility Operations-Start Date, what will be the average quarterly and annual compensation
for such relocated Full-time Employees? (Indicate “NA” if no Full-time Employees are being relocated.)
Quarterly: $4,968 Annual: $19,872
2.
If Part-time Employees are to be relocated on the Facility Operations-Start Date, what will be the average quarterly and annual compensation
for such relocated Part-time Employees? (Indicate “NA” if no Part-time Employees are being relocated.)
Quarterly: NA
Annual: NA
3.
With regard to the Part-time Employees and Full-time Employees currently employed at the Project Location and provided in the answer to
question B3 on the previous page (9), what is current annual average compensation? (Indicate “NA” if no Employees are currently employed at
the Project Location.)
Part-time: NA
Full-time: NA
4.
For new Full-time Employees expected to be hired in the first year following the Facility Operations Start-Date, what is the projected average
quarterly and annual compensation?
Quarterly: $5,400 Annual: $21,600
5.
For new Part-time Employees expected to be hired in the first year following the Facility Operations Start-Date, what is the projected average
quarterly and annual compensation?
Quarterly: NA
Annual: NA
6.
For all new, Full-time Employees expected to be hired throughout the fifteen-year period following the Facility Operations Start-Date, please
complete the following:
A. Projected average annual compensation: $21,600
B. Average annual compensation range:
7.
Hi: $25,000
Low: $18,200
For all new, Part-time Employees expected to be hired throughout the fifteen-year period following the Facility Operations Start-Date, please
complete the following:
A. Projected average annual compensation: NA
B. Average annual compensation range:
8.
Hi: NA
Low: NA
Generally describe all other forms of compensation and benefits that Permanent Employee will receive at the Project Location. Examples:
health care; employer-contributions for retirement plans; on-the-job training; reimbursement for educational expenses; etc.
The Company provides 5 paid vacation days to all of its employees as well as 3-paid sick days per year. In addition, the
Company provides extensive training in manufacturing and wood working.
10