Maximum Build Out Potential for Amazon Campus: Square footages represent maximum allowable buildout according to Buffalo's zoning code. It totals 12.3 M sq ft demonstrating ease of achieving HQ2's full build out ase a, Building sq. ft A 896,000 (existing) B 270,000 (existing) c 220,000 is (eatating) Building sq. ft D 500,000 E 500,000 F 600,000 2 G 2.3 Million Building I 1.5 Million J 1.6 Million (200,000 existing) bv)Appendix A.1.iv Current ownership of property ‘Our team hos secured agreements reflecting fair market valve lease and/or purchase of all privately- held properties in the proposed Amazon HO2 Buffalo Campus. jase Building A (696,000 sq ft existing) Owner: Douglas Development - commitment in place to renovate-to- suit and lease at market rate (State and local incentives will lower effective lease rate significantly) Building B (170,000 sq ft existing} Owner: The Buffalo News [Berkshire Hathaway} - agreement in place for sale to Amazon at market rate Building C (220,000 sq ft existing) Owner: HS8C Bank — agreement in place forsale to Amazon at market rate ase Building D [new construction) Parcel Owner: Douglas Development Building E (new construction Parcel Owner: Douglas Development Building F (new construction) Parcel Owner: New York State (Erie Canal Harbor Development Corp) Building G (new construction) Parcel Owner: The Buffalo News [Berkshire Hathaway) ase 3: Building H (new construction) Parcel Owner: HS8C Bank (7.7 acres): private consortium (3.5 acres} Building | (new construction) Parcel Owner: City of Buffalo [Buffalo Urban Renewal Agency) Building J (200,000 sq ft existing and new construction) Owner: New York State (Niagara Frontier Transit Authority) Appendix A.1.v Zoning process description Unified Development Ordinance The Unified Development Ordinance, put into effect in 2017, is the city's first comprehensive zoning rewrite since 1953 and codifies the smart growth vision of the Comprehensive Plan. It combines land use, subdivision, and public realm standards into a single, user-friendly document. The UDO implements the community's vision for the development of the city. Responding to considerable input from residents and business owners, its a “form-based code,” ernphasizing neighborhood character as its organizing principle. Ths approach was chosen because of its unique capacity to help realize the community's vision for walkable, transit-supportive neighborhoods When Mayor Byron Brown unveiled the Green Code project in 2010, he first and foremost characterized the zoning rewrite as an economic development initiative, designed to provide more certainty and predictability to investors and to remove barriers to walkable, mixed-use development. The previous zoning ordinance, which hadn't been comprehensively rewritten in 64 years, was principally designed to separate Uses, restrict density, and reshape the city to focus on the needs of the car. This was in conflict with the walkable, mixed-use pattem of development that characterized Buffalo's historic neighbothoods and had increasingly become a basis for their resurgence. By 2010, it became clear that the old zoning ordinance had become a regulatory obstacle to further economic growth and regeneration, something that could be fixed only with a total rewnte of the code.October 16, 2017 Mr. Jeffrey Bezos, CEO Amazon Corporate Office 410 Terry Avenue, North Seattle, WA 98109-5210 Dear Mr. Bezos: ‘The Erie County Industrial Development Agency (“ECIDA”) would like to propose a variety of tax incentives to encourage Amazon to invest $2.5B over an 11-year period to construct and equip its new headquarter facilities and create an estimated 50,000 new jobs. The ECIDA is committed to collaborating with your entire team to provide Amazon with an ideal location for your headquarters complex in our region. ‘The attached list of estimated incentives will provide Amazon with benefits associated with the construction, renovation and buildout of facilities to house your headquarter operations in Buffalo, New York. The total value of the incentives including real property and sales tax savings are based on estimates provided to ECIDA: Total Investment Estimated Incentive Phase I: $ . 92,200,000 $21,943,000 Phase Il: $ 157,000,000 $48,426,000 Phase Il: $2,235,000,000 '$432,205,000 Total $502,574,000 Our incentives are in addition to incentives being provided to Amazon by other economic development entities. Please review the enclosed incentive proposal and feel free to contact me with any questions or if you need additional information. Our proposal is subject to change based on updated investment, job creation or additional information, the ECIDA review process, and final approval by the ECIDA Board of Directors. patie asthe ‘Steve Weathers President & CEO Erie Couny Industria Development Agency + 95 Perry Street, Suite 403 + Bul New York 14203 + ph. 71685646525 + fx 7168564754 + www.ecidany.com 2 -ECIDA Incentive Estimate Amazon HQ Project Calculations are based on the information supplied Municipality Buffalo (City of) School District Buffalo (City of) Schoo! District ‘Type of Project _ Renovation and New Construction Construction Budget $1,290,800,000 Non Production Equipment Purchases $1,193,400,000 This incentive estimate is based on the project assumptions, investment and job creation data provided to Invest Buffalo Niagara that have been shared with the Erie County Industrial Development Agency. Actual incentive amounts are subject to final investment, job creation commitments and the value of the final real property assessment values. Project Assur; ns: Total Project investment over 11-year period : $2.5B Total Investment Estimated Incentive Phase | (Yr. 1) $ 92,200,000 $21,944,000 Phase I! (Yr. 6) $_ 157,000,000 $48,426,000 Phase Ill (Yr. 11) $2,235,000,000 $432,205,000 Total '$502,575,000 Total Project Employment: Up to 50,000 jobs over 11-year period Prolect Cost Breakdow! Total Investment Project Description Phase | (Vr. 1) $ 92,200,000 Renovation and FFE Phase It (Yr. 6) $ 157,000,000 New Construction Phase ll (Yr. 11) '$2,235,000,000 New Construction, Buildout, FFEProperty Tax Incentive Provides property tax abatement on the new assessed value attributed to the project. Based on the impact of this project to the region, investment and employment projections provided to Invest Buffalo Niagara, your project appears to meet the eligibility criteria for the ECIDA 10 year Enhanced PILOT schedule. Below is the property tax abatement schedule for the 10 year Enhanced PILOT: Year 1 100 % ‘Year 2 100 % Year 3 100 % Year 4 100 % Year 5 100 % Year 6 100 % Year 7 100 % Year 8 90% Year 9 80% Year 10 70 % Percentages listed show the percentage of new property tax value abated on the project. Estimates of actual tax savings are based on an assessed value of 75% of the construction budget. This estimate is based on a projection of the final assessed value which would be placed on the buildings. Actual PILOT payments would be determined by the final assessed value of the improvements of each phase and the associated tax rates for each year of the 10 year schedule, Estimate of Property Tax Payments for all three phases with Enhanced PILOT: Total PILOT (Property Tax) Payments $21,809,000 Total Property Tax Savings for 3 phases $341,680,000 **Full taxes would be paid on the land value of the project. 7Sales Tax Incentive Equipment and Construction Sales Tax Savings are the amounts that would be paid in sales taxes without CIDA assistance. Construction material costs are estimated at 50% of construction amount plus any ‘non-production equipment purchases. The estimate is based on the total construction & FFBE values listed below: Equipment Purchase ($1,193,400,000) Savings $104,422,500 Construction Materials Sales Tax ($1,290,800,000) Savings $ 56,472,500 Total Sales Tax Savings $60,895,000 Total Net Tax Sar Incentives For 10 Year Property Tax Incentive Savings $34,680,000 Sales Tax Savings $10,895,000 Estimated Grand Total Net Tax $502,575,000 Incentives *ECIDA incentives would be subject to investment and job creation goals for the term of the Incentives and would be subject to certain recapture provisions if the job and investment goals are not met and maintained. * Projects receiving ECIDA incentives will be required to comply with the Agency's Local Labor policy, pay equity and unpaid tax policy. * Projects receiving ECIDA incentives are subject to administrative and counsel fees.