FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION New York City Industrial Development Agency _part4 pptx

New York City Industrial Development Agency
(a component unit of The City of New York)
Notes to Financial Statements (continued)



29

9. PILOT Lease Receivable, Net (continued)

Beginning
Balance
5/01/09 Additions Reductions
Beginning
Balance
7/01/09

Gross receivable $ 4,026,783,246 $ 51,799,295 $ (301,094) $ 4,078,281,447
Less: Deferred interest 2,563,744,454 464,934 (18,267,698) 2,545,941,690
N
et receivable $ 1,463,038,792 $ 51,334,361 $ 17,966,064 $ 1,532,339,757

10. Commitments and Contingencies
Pursuant to various approved agreements between IDA and EDC, IDA was committed to fund
thirty-six projects being performed by EDC related to the City’s Commerce and Industrial
Development (the Project Commitments). Total project commitments under these agreements
amounted to approximately $21.2 million with an outstanding obligation at June 30, 2010 of
$7.9 million. The Project Commitments, related approval dates, original and outstanding
commitment balances are as follows:
Project
Approval

Date
Total
Commitment
Total
Expenditures
Total
De-Obligate
Outstanding
Commitment

Downtown Brooklyn Relocation Services 06/10/03 $ 650,000 $ 78,207 $ – $ 571,793
Hunts Point Peninsula/Vision Plan 07/29/03 795,000 496,933 146,084 151,983
Hudson Yards Engineering Consulting 09/30/03 625,000 618,881 6,119 –
City-wide Environmental and Traffic Study 12/09/03 1,750,000 1,744,141 5,859 –
Hudson Yard/Cornerstone 07/13/04 350,000 243,427 106,573 –
Industrial Business Zone 06/14/05 400,000 353,872 46,128 –
Hunts Point Produce Market 10/11/05 350,000 301,576 – 48,424
Pier 7-12 Development Policy 03/14/06 1,979,611 1,406,416 – 573,195
Maritime Support Services Location Study 05/09/06 275,000 275,000 – –
Downtown Far Rockaway Development Plan 05/09/06 150,000 129,888 – 20,112
Downtown Jamaica Rendering 08/08/06 35,000 – 35,000 –
Community Development Finance
Research Study 09/12/06 300,000 229,125 70,875 –


This is trial version
www.adultpdf.com
New York City Industrial Development Agency
(a component unit of The City of New York)
Notes to Financial Statements (continued)

30

10. Commitments and Contingencies (continued)
Project
Approval
Date
Total
Commitment
Total
Expenditures
Total
De-Obligate
Outstanding
Commitment

Transportation Use Feasibility Study 11/14/06 $ 180,000 $ 125,241 $ 54,759 $ –
Participant Tracking Study 12/12/06 200,000 200,000 – –
Willets Point Development Strategy 03/13/07 3,300,000 1,421,765 – 1,878,235
Staten Island West Shore Study – Land
and Transportation 04/11/07 900,000 842,984 – 57,016
On Call Environmental Planning Services 07/23/07 150,000 127,795 22,205 –
On Call Services Contract/Traffic Impact
Study 09/11/07 75,000 35,764 39,236 –
On Call Services Contract/Strategic Port Plan 09/11/07 1,200,000 1,199,488 – 512
Fordham Plaza Conceptual Design Study 12/11/07 650,000 590,480 59,520 –
Hunts Point Food Distribution Center,
Development Feasibility Studies 12/11/07 700,000 166,140 – 533,860

Fashion Industry Support Study 03/11/08 300,000 278,898 21,102 –
Sunset Park Vision Plan 03/11/08 550,000 452,743 97,257 –
Harlem Business Assistance Fund/UMEZ 05/13/08 1,000,000 – – 1,000,000
Staten Island North Shore Study – Land
and Transportation 05/13/08 700,000 577,933 – 122,067
N
YC Media Scenario Series 01/16/09 500,000 360,000 – 140,000
Harbor District Ferry Service Feasibility and
Branding Initiative 03/11/09 590,058 – – 590,058
Environmental Consulting Services 04/14/09 5,000 4,300 700 –
Harlem River Waterfront/Sherman Creek 07/28/09 300,000 – – 300,000
Hunts Point Food Distribution 09/15/09 500,000 69,072 – 430,928
City-wide Ferry Service Feasibility Study 09/15/09 175,000 159,589 – 15,411
Teleport Planning Services 09/15/09 100,000 98,808 – 1,192
Hunts Point Freight Rail and Anaerobic
Digestion Study 12/15/09 131,705 – – 131,705
Industry NYC Survey 03/09/10 65,000 55,000 – 10,000
Industrial Subsector and Cost
Comparison Analysis 05/11/10 300,000 – – 300,000
Wage Study 06/08/10 1,000,000 – – 1,000,000
$ 21,231,374 $ 12,643,466 $ 711,417 $ 7,876,491

For the years ended June 30, 2010 and 2009, $1,762,427 and $6,561,338, respectively, have been
incurred by the IDA related to the above projects and are included in special project costs on the
accompanying statements of revenue, expenses and changes in fund net assets. Of such amounts,
$924,873 and $2,901,662 remained unpaid as of June 30, 2010 and 2009, respectively, and are
included in Due to New York City Economic Development Corporation on the accompanying
balance sheets.
This is trial version
www.adultpdf.com

New York City Industrial Development Agency
(a component unit of The City of New York)
Notes to Financial Statements (continued)



31

10. Commitments and Contingencies (continued)
The Agency has entered into certain financing transactions in which it has committed to provide
for the issuance of IDBs up to a specified maximum amount and over a specified number of
years. During the year ended June 30, 2010, IDA did not issue any IDBs. IDA issued
approximately $5.0 million in IDBs during the year ended June 30, 2009. As of June 30, 2010, IDA
has not committed to issue any additional IDBs to approved beneficiaries.
As of June 30, 2010, the total conduit debt obligations outstanding totaled $10.1 billion.
IDA, and in certain situations as co-defendant with the City and/or New York City Economic
Development Corporation, is involved in personal injury, environmental claims, property
damage, breach of contract and other miscellaneous claims and lawsuits. In many of these
matters there is liability coverage insuring the IDA and the IDA’s clients are, in any case,
obligated to indemnify IDA. IDA is unable to predict the outcome of each of these matters, but
believes that the IDA has meritorious defenses or positions with respect thereto. It is
management’s opinion that, except for the matters noted below, the ultimate resolution of these
matters will not be material to the Agency.

Management believes that the following matters could have a material adverse effect on IDA's
operations:

(a) The New York State Department of Environmental Conservation ("DEC") has
notified IDA that DEC will most likely seek contribution from IDA in connection with
the remediation of four sites in Brooklyn and Queens that are or were used by clients to

which IDA has provided financial assistance. These clients are obligated to indemnify
IDA; however, IDA believes that the remediation costs will be substantial and will
exceed the clients' ability to meet their indemnity obligations.

(b) If IDA is found to have liability in the case of three particular claims of serious
personal injury brought by individuals employed at sites of IDA's clients or a number of
personal injury claims brought by persons involved in the clean-up of IDA's clients' sites
following 9/11, IDA's liability may exceed any available insurance and the financial
resources of its clients who are obligated to indemnify the IDA.

IDA is unable to predict the outcome of the matters described in (a) and (b) above, but believes it
has meritorious defenses with respect thereto.
This is trial version
www.adultpdf.com
New York City Industrial Development Agency
(a component unit of The City of New York)
Notes to Financial Statements (continued)



32

11. Risk Management
IDA is exposed to various risks of loss-related torts; theft of, damage to, and destruction of
assets; errors and omissions; and natural disasters. IDA requires all beneficiaries to purchase and
maintain commercial insurance coverage for these risks and name the IDA as additional insured.
Settled claims resulting from these risks have not exceeded commercial insurance coverage
provided by the beneficiaries in any of the past fiscal years.
This is trial version
www.adultpdf.com

Supplemental Information
This is trial version
www.adultpdf.com

33


New York City Industrial Development Agency
(a component unit of The City of New York)
Combining Balance Sheets
Restricted
Queens Baseball Yankee Baseball Total Year Ended June 30
Unrestricted Stadium Project Stadium Project Restricted 2010 2009
Assets

Current assets:
Cash and cash equivalents $ 4,228,097 $ – $ – $ –
$ 4,228,097
$ 11,485,252
Investments 36,613,294 – – –
36,613,294
30,921,686
Fees receivable, net of allowance for doubtful accounts
of $91,718 and $107,114, respectively 198,347 – – –
198,347
313,891
PILOT lease receivable – 6,210,000 12,783,558 18,993,558

18,993,558
25,790,000
Total current assets 41,039,738 6,210,000 12,783,558 18,993,558
60,033,296
68,510,829

N
oncurrent assets:
Restricted cash- stadium projects – 22,898,498 1,912 22,900,410
22,900,410
–
Restricted investments 2,382,739 – – –
2,382,739
–
Restricted investments- stadium projects – 33,472 102,182,659 102,216,131
102,216,131
323,881,716
PILOT lease receivable – 603,453,995 1,097,948,426 1,701,402,421
1,701,402,421
1,506,549,757
Deferred bond issuance costs – 23,566,954 59,034,259 82,601,213
82,601,213
86,045,984
Deferred outflow of resources – – 19,835,517 19,835,517
19,835,517
18,353,388
Total noncurrent assets 2,382,739 649,952,919 1,279,002,773 1,928,955,692
1,931,338,431
1,934,830,845
Total assets $ 43,422,477 $ 656,162,919 $ 1,291,786,331 $ 1,947,949,250

$ 1,991,371,727
$ 2,003,341,674

Liabilities and net assets

Current liabilities:
Accounts payable and accrued expenses $ 67,467 $ – $ – $ –
$ 67,467
$ 62,048
Due to New York City Economic Development Corporation 945,083 – – –
945,083
2,901,662
Bonds payable current – 6,210,000 12,783,558 18,993,558
18,993,558
25,790,000
Interest payable on bonds – 15,893,831 40,442,632 56,336,463
56,336,463
41,972,279
Deferred revenue 529,336 – – –
529,336
595,637
Other liabilities 2,382,739 – – –
2,382,739
–
Total current liabilities 3,924,625 22,103,831 53,226,190 75,330,021
79,254,646
71,321,626

N
oncurrent liabilities:

Bonds payable, net – 634,059,088 1,218,724,624 1,852,783,712
1,852,783,712
1,874,505,178
Derivative instruments- interest rate swap – – 19,835,517 19,835,517
19,835,517
18,353,388
Total noncurrent liabilities – 634,059,088 1,238,560,141 1,872,619,229
1,872,619,229
1,892,858,566
Total liabilities 3,924,625 656,162,919 1,291,786,331 1,947,949,250
1,951,873,875
1,964,180,192

N
et assets:
Unrestricted 39,497,852 – – –
39,497,852
39,161,482
Total net assets 39,497,852 – – –
39,497,852
39,161,482
Total liabilities and net assets $ 43,422,477 $ 656,162,919 $ 1,291,786,331 $ 1,947,949,250
$ 1,991,371,727
$ 2,003,341,674
This is trial version
www.adultpdf.com


34

Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the
Financial Statements Performed in Accordance
with Government Auditing Standards
The Board of Directors
New York City Industrial Development Agency
We have audited the balance sheet of New York City Industrial Development Agency (the
Agency), a component unit of the City of New York, and the related statements of revenues,
expenses and changes in fund net assets and cash flows as of June 30, 2010 and for the year then
ended, and have issued our report thereon dated September 21, 2010. We conducted our audit in
accordance with auditing standards generally accepted in the United States and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Agency’s internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Agency’s internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the Agency’s internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies in
internal control that might be deficiencies, significant deficiencies or material weaknesses. We
did not identify any deficiencies in internal control over financial reporting that we consider to
be material weaknesses, as defined above.

A member firm of Ernst & Young Global Limited
Ernst & Young LLP
Five Times Square
New York, NY 10036-6530

Tel: +1 212 773 3000
Fax: +1 212 773 6350
www.ey.com



This is trial version
www.adultpdf.com


35


Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency’s financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
This report is intended solely for the information and use of the management, Board of Directors,
others within the entity and the City of New York and is not intended to be and should not be
used by anyone other than these specified parties.

EY
September 21, 2010

A member firm of Ernst & Young Global Limited



This is trial version
www.adultpdf.com