:9 5? ?ctoioer 16, 201?? Mr. Jeffrey Home, CEO - Amazon Corporate D?ice 010 Terry Avenue, North Seattie, we 981096210 Dear Mr: Beans: The Erie County Industrial Development Agency would like to propose a variety of tax incentives to encourage Amazon to invest $2.58 over an livyear period to construct and equip its new}:r A headquarter facilities and. create an estimated 50,000 new jobs. - The EtleA 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 assoeiated with the construction, renovation and buildout of to house, yourheadquarter operations in Butfalofhlew York. The total value of the incentives including real property and sales tax savings are based on . estimates provided to ECIDA: Total Investment . Estimated meantime Phase 1: 02,200,000 21,943,000 Phase ll: 5 157,000,000 '53 40,425,000 - $2,235,000,000 $432,205,000 Total . A. $002,574,000? Qur incentives ara?in addition to intentiuea 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 issubjeet to'oinange hosed on updatadlimfestment, job creation or additional information, the review process, and iinal'approval by the Board ofDirectors. Steve Weathers President 8; CED Erie County industrial DevelopmentAgeno'y it, . . THE ECONOMIC DWI-WENT FDR ERIE 95 For, Streeasote 403 a Buffalo,Naerorlc 14203 a 007150560525 . fx. .. wwaa'iaawcam Lenten Enoentine Eetinoete enneeon lilo; Ptojeet- Celenietione ere [0er on the information eonnilieol Bu?aio(Gity?of) Senooi Dietriet Buffalo (City on School District Type of Project Renovation and New Construction Conetrootion Budget 01290300000 Non Produntion Equipment $393,400,000 This incentive estimate is based on the project assumptions, investment and job Creation data provided to invest Buffalo Niagate that have been shared with the Erie Countyr Industrial Development Agency. Actual incentive amounts are subject ?to final investment, job creation 0 commitments and the Value of the final i?eal property assessment values. Proieot Assumntions: Total Project investment over 11-yeai period $2.53 Total Investment . Estimated incentive Phasel(Yr.1j 3 92,200,000 $21,044,000 Phase ll 5) 157,000,000 53 48,426,000 Pheselillvn 11) . $432,205,030 - Total $592 575,311?) Total Project Employment: Up to period Project Cost Breakdown: [Total investment Project Description Phase! (Yr. 1} 92,200,000 Renovation and FFE Phase ll l?i?n?j 5 157,900,000 . New Construction Phase Ill (Yr. 11) . New Construction, Buildont, FFE Property Tear lneentiue 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 10 1rear Enhanced PILGT schedule. Below is the property tea abatement sehedule for the l0 year Enhanced PILOT: Year 1 100 Year 2 100 Year 3 100 Year 4 100 Year 5 100 Year 6 100 Year 7 100 Years 90 YearB so 'Year 10 70 Percentages listed Show the percentage of new property tax value abated on the project. Estimates of . actuai tea savings are based on an assessed value of 75% of the construction budget. This estimate is based on a projection ofthe 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 eaeh 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 Total PILOT (Property Tax) Payments 53 21,809,000 Total Property Tax Savings liar 3 phases $341,680,000 Full taxes would be paid on the land value of the project. 27 Seiee Tee; incentive Equmeez? and Censz?rucffoe Sales Tax Se @2575 are fee emanate that male be paid in eefes taxes without ELEM eesiefeece, mete?ef costs are estimated at 50% of censimc?'en amount ,9qu any 3 equipment purchases, The estimate based on the. total cameraman 8: VEIHES - Hated beige: WM, i Equipment Pumhaee ,1 Savings $104,422f5co i ?Qens?imcitien ii?'eicen'ieie Selee Tex Sevinge 56,472,500 1 Tetei Selee Tax Savings $166,895,0?i} Teitei Fer me Year Preperty Imeeh?ve Savings $341,680,300 Sales TexSavinge Eeiimeied Gene . incegi?tives Weuid be subject to investment and job creatieh goals for the term cithe incentives and weuid be subject to certain recapture provisions if the job and investment goe?is are net ?met and maintained. Projects?receiving ECIDA incentives will be required ?to cemciy With the Agency?s Luca! Labor polity, pay equity and unpaid tax policy. ?if Prejects receiving ECIDA incentives are subject to administrative and ceunsel fees.