RESOLUTION NO.

_______- APRIL __, 2012 INITIATING EVALUATION OF LUTHER FOREST TECHNOLOGY CAMPUS PLANNED DEVELOPMENT DISTRICT Motion by: Seconded: Action: Vote: Hartzell; Klotz; Ruisi; Sausville; Thomas Hartzell; Klotz; Ruisi; Sausville; Thomas Enacted; Defeated; Tabled to next meeting; No action Unanimous; Hartzell; Klotz; Ruisi; Sausville; Thomas

WHEREAS, by Local Law No. 6 of 2004 adopted on May 18, 2004, the Town Board created the Luther Forest Technology Campus Planned Development District, codified at Town of Malta Town Code 167A-52; and WHEREAS, the Luther Forest Technology Campus Planned Development District was thereafter amended by Local Law No. 2 of 2007 on February 5, 2007, and amended again by Local Law No. 7 of 2008 on August 25, 2008 (as so amended, the LFTC PDD); and WHEREAS, the real property governed by the LFTC PDD is commonly known as the Luther Forest Technology Campus (the Tech Campus) and, with the exception of portions sold to Global Foundries, the network of Town Roads, and the Town ball-field property, is owned by the Luther Forest Technology Campus Economic Development Corporation (the LFTC EDC); and WHEREAS, real property immediately adjoining the Tech Campus is comprised of a commercial/industrial park owned by the New York State Energy Research and Development Authority, commonly known as the Saratoga Technology Energy Park or STEP, which is being developed pursuant to a Saratoga Technology Energy Park Master Plan dated January, 2004 (the STEP Master Plan); and WHEREAS, during the course of approving the LFTC PDD, approving the site plan for the Global Foundries project, and initiating development of the STEP, various proceedings have been undertaken and completed as required by the New York State Environmental Quality Review Act (SEQRA), including (a) a Draft Generic Environmental Impact Statement for the LTFC PDD (LFTC DGEIS), (b) a Final Generic Environmental Impact Statement for the LTFC PDD (LFTC FGEIS), (c) a Luther Forest Technology Campus GEIS Statement of Findings (LFTC GEIS Findings), (d) a Supplemental Draft Environmental Impact Statement for the Proposed AMD Development at Luther Forest Technology Campus (AMD SDEIS), (e) an Advanced Micro Devices Fab 4X Facility Supplemental Final Environmental Impact Statement (the AMD SFEIS), (f) a Statement of Findings AMD Luther Forest Technology Campus (AMD SEIS Findings) (items a through f being collectively, the LFTC SEQRA Documents), and (g) a Full Environmental Assessment Form and Generic Environmental Assessment Report for the STEP (the STEP GEIS); and WHEREAS, since initial approval of the LFTC PDD there have been several unforeseen and significant developments affecting the nearby residential areas and the economics and finances

of the Tech Campus and LFTC EDC which necessitate further evaluation of the LFTC PDD and the relationship between the Town of Malta and the Tech Campus; and WHEREAS, the LFTC PDD provides at 167A-52 Z, as follows: Amendments. Other provisions of the Code of the Town of Malta notwithstanding, the Town of Malta may itself bring on an application to amend this local law, as it may from time-to-time be amended, subject to the provisions of the Code of the Town of Malta and New York State Town Law. NOW, THEREFORE, BE IT RESOLVED, AS FOLLOWS: SECTION 1. Recitals. The Whereas clauses set forth above are hereby incorporated into the body of this Resolution as if fully set forth herein. SECTION 2. Findings. The Town Board hereby finds as follows: A. Noise Regulation. (i) The regulation of noise in the Tech Campus is governed by the LFTC PDD and the LFTC SEQRA Documents, which establish thresholds for noise of 6 dBA over ambient and/or 55 dBA day-time/45 dBA night-time levels (the Noise Regulations), and with respect to Global Foundries noise is additionally governed by a May 8, 2009 Noise Monitoring Plan approved by the Town Planning Board on June 9, 2009 (the Noise Monitoring Plan). The noise regulations in effect for the Tech Campus only regulate the level of noise, and do not regulate frequency, pitch or other noise characteristics impacting residential quality of life. The Noise Regulations and the Noise Monitoring Plan have not adequately mitigated the impact of noise on residential properties adjoining the Global Foundries property. The Noise Monitoring Plan for Global Foundries may be undermined as additional noise is generated from other sources in and near the Tech Campus. Based upon the foregoing, it is essential for the Town to reevaluate the regulation of noise in the Tech Campus with the assistance of licensed professionals to determine whether different or additional noise regulations can avoid the repetition of the unacceptable noise impacts experienced at residential properties for any additional facilities constructed in the Tech Campus.

(ii)

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(v)

B. Traffic. (i) Traffic studies were completed in 1999 (Clough Harbor and Associates) and 2002 (Creighton Manning Engineering) with respect to proposed development of the STEP and/or Tech Campus. The 2002 study states that it was assumed that access from Dunning Street to the Tech Campus was limited to emergency access only. The LFTC DGEIS and the LFTC FGEIS both recite that Dunning Street will not serve as a road entrance to the Tech Campus, and its use will be limited to emergency access. The LFTC DGEIS specifically states that the decision to limit access to Dunning Street is based on the expressed wishes of the Town in an effort to minimize the potential impact of LFTC on the residential land uses on Dunning Street. The LFTC DGEIS further states that it is anticipated that access to the LFTC via Dunning Street will be restricted to emergency vehicles through the use of a locking gate, and that [c]oordinating access to the gate, and whether it is a keyed, combination or electronic system, will be at the discretion of the local agencies in consultation with the development entity for the Campus. The STEP Master Plan reflects that the initial development of STEP would be served by a closed loop entering from Dunning Street, and would not include a connection through to the Tech Campus. That Master Plan also stated that if a connection was made in the future, NYSERDA could consider controlling access into STEP from Dunning Street. The LFTC GEIS Findings provide that (a) access from the Tech Campus to STEP will be provided prior to issuance of a Certificate of Occupancy for Development Area 1, and (b) once alternative access is provided to the project site, use of Dunning Street will be limited to emergency or public transportation vehicles only, at the discretion of the Town. The AMD SDEIS states, in responses to questions from Malta residents, that (a) once alternative site access is constructed into LFTC from Routes 9 and 67, Hermes road is not planned to be used for construction access or for any truck access into LFTC, and (b) [i]t is important to note, however, that employee use to and from the Fab 4X facility could take place along the existing public roads connecting to LFTC. During construction of the Global Foundries facility, significant volumes of truck and construction worker traffic have utilized Hermes Road and Dunning Street to access the Tech Campus, and Global Foundries construction site. It appears that significant numbers of Global Foundries employees now use Dunning Street and Hermes Road as a preferred route to access their place of employment in the Tech Campus.

(ii)

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The Towns efforts to enforce restrictions on employee traffic entering the Tech Campus via Dunning Street and Hermes Road have been thwarted by the private ownership of Hermes Road, and legal restrictions on the power of the Town. It is apparent that current traffic usage of Dunning Street and Hermes Road to access the Tech Campus is not consistent with the LFTC SEQRA Documents. Since the completion of the LFTC SEQRA Documents and the granting of approvals to construct the Global Foundries microchip manufacturing facility Global Foundries has undertaken construction of a 221,000 square foot office building adjoining the microchip plant. The LFTC GEIS Findings and the AMD SEIS Findings state that [a]dditional traffic studies will be required to monitor trip generation and the timing of the proposed transportation improvements, and to ensure that mitigation measures identified remain valid over time. Based upon the foregoing, it is essential for the Town to update the traffic studies for the Tech Campus and/or STEP to monitor trip generation and to ensure that mitigation measures identified remain valid over time, including mitigation measures designed to protect prior uses of Dunning Street.

(ix)

(x)

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(xii)

C. Economic Concerns. (i) The Tech Campus and related infrastructure have been constructed primarily with State funds, including significant funds available at the discretion of former elected officials of the State. While in its current state the Tech Campus is a substantial asset available to support significant economic development in Malta and Saratoga County, infrastructure needed to service individual development areas in the Tech Campus has not been completed. Due to changes in leadership of New York State government, and the redirection of limited State resources to other areas of the State, such as the NanoTech Campus at Albany, and locations in Oneida and Erie Counties, it is unlikely that additional funds will be available from the State to pay for the cost of infrastructure extensions in the Tech Campus. The LFTC EDC is indebted to the New York State Urban Development Corporation in total principal amount of $11,575,000, and on October 22, 2010, UDC sent notices of default to LFTC EDC seeking repayment of more than $1,750,000 in loans that went into default earlier in 2010.

(ii)

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LFTC EDC is obligated pursuant to the LFTC PDD and related documents to make annual payments to the Town of Malta for certain highway maintenance and capital costs pertaining to the Town-owned roads in the Tech Campus. By Resolution No. 96 of 2010, this Board approved a request from the LFTC EDC to delay payments owing to the Town totaling $220,000 due to projected cash flow concerns for the EDC. After the payment extension granted by the Town, LFTC EDC owes the Town of Malta approximately $ 411,198 during calendar year 2012. LFTC EDC has approached the Town about the possibility of further deferral of its highway payment obligations to the Town. The LFTC PDD provides at 167A-52(P) that entities locating within the District are only permitted to use the NYS Empire Zone Program or equivalent State program for tax incentives and may not apply for or receive any abatements of local real property taxes for or with respect to land and/or facilities within the District, through any payment-in-lieu-oftaxes agreement with an industrial development agency. The Tech Campus was previously designated as an Empire Zone, which entitled qualified businesses locating within the Campus to refundable tax credits from New York State equal to 100% of property taxes or payments in lieu of taxes, resulting in the State of New York effectively paying the property taxes of businesses locating in the Tech Campus. The Empire Zone program also provided substantial additional economic incentives to businesses locating in the Tech Campus, including investment tax credits and wage tax credits. The Empire Zone Program has been phased out by the State. The prospective loss of the New York State Empire Zone Program causes the Towns requirement in the LFTC PDD of payment of the equivalent of full property taxes for all businesses locating in the Tech Campus to make sites in the Tech Campus unattractive as compared to other available sites, including other locations in the Capital Region, where predetermined standard real property tax incentives are available and offered.

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(xi) (xii)

(xiii) Real property tax incentives in the form of Saratoga County Industrial Development Agency standard payment in lieu of tax agreements are available throughout the remainder of Saratoga County, including in the Town of Malta in those areas outside the Tech Campus such as NYSERDAs STEP property.

(xiv)

In Mid-March of 2011 the LFTC EDC issued a Request for Qualifications for development of Development Area 8 in the LFTC (the RFQ), and was unsuccessful in recruiting a developer to proceed with the desired development of that Development Area. Despite unprecedented economic growth and billions of dollars of high-tech investment in the region, LFTC EDC has been unable, despite active marketing, to attract any additional businesses into the Tech Campus. Local economic development officials have stated that the unavailability of real property tax incentives has served as a major obstacle to discussions with business prospects, and in making decisions where to site new businesses, business owners expect to know in advance what incentives are available, and are disinclined to pursue sites where property tax incentives are only available subject to negotiation with local elected officials. Other nearby towns and municipalities in the Capital Region have initiated plans to attract high tech development and spinoff from Global Foundries, including rezoning and investment in extensions of water and sewer infrastructure. It is in the long term interest of the Town of Malta to promote development of the Tech Campus with a diversified group of businesses so that the economy of the Town does not become disproportionately dependent on Global Foundries.

(xv)

. (xvi)

(xvii) Based on the foregoing, there is significant evidence that the success of the Tech Campus, and its long term impact on the Town of Malta, will require reconsideration of the economics of the Campus, including reconsideration of the Towns requirement that businesses locating in the Tech Campus receive no property tax incentives. (xviii) The State of New York has previously threatened to enforce the collection of money owed by LFTC EDC, and if measures are not taken to provide long-term financial viability to the Tech Campus, the State of New York may again pursue recovery of its funds, potentially assuming control over the Tech Campus and diminishing the ability of the Town of Malta to control activities in the Campus. SECTION 3. On the basis of the above Findings, this Board hereby determines to proceed with engagement of a sound engineering consultant to evaluate the way in which the Town regulates noise in the Tech Campus, and to provide recommendations as to whether different or additional noise regulations can avoid the repetition of the unacceptable noise impacts experienced at residential properties for any additional facilities constructed in the Tech Campus. The Town Comptroller a and Planning Director are hereby directed to draft and issue a Request for Proposals to qualified licensed engineering firms to complete such an evaluation for the Town.

SECTION 4. On the basis of the above Findings, this Board hereby determines to proceed with engagement of a traffic engineering consultant to update the traffic studies for the Tech Campus and/or STEP to monitor trip generation and to ensure that mitigation measures identified remain valid, including mitigation measures designed to protect prior uses of Dunning Street. The Town Comptroller and Planning Director are hereby directed to draft and issue a Request for Proposals to qualified licensed engineering firms to complete the traffic study update for the Town. SECTION 5. On the basis of the above Findings this Board, pursuant to 167A-52 Z of the Town Code, hereby determines to proceed with evaluation of an amendment of the LFTC PDD to allow entities locating in the Tech Campus to apply for the standard real property tax exemptions offered by the Saratoga County Industrial Development Agency in areas of Saratoga County outside the Tech Campus. The Towns legal counsel is hereby directed to draft a proposed amendment to the LFTC PDD to accomplish the foregoing for consideration by this Board. The Town Supervisor is hereby directed to contact the President of LFTC EDC, the Chief Executive Officer of the Saratoga County Industrial Development Agency, and the Presidet of the Saratoga County Economic Development Corporation to request attendance of representatives of their respective organizations at a workshop meeting with this Board in respect to the above to be scheduled as soon as mutually convenient. SECTION 6. Monies to pay for the engineering services procured pursuant to Sections 3 and 4 of this Resolution shall be provided by unspent funds paid by Global Foundries pursuant to the LTFC PDD for planning studies. SECTION 7. The provisions of this Resolution notwithstanding, any amendment of the LFTC PDD shall follow all applicable procedures required by law.