FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION New York City Industrial Development Agency (A Component Unit of The City of New York) Years Ended June 30, 2010 and 2009 With Report of Independent Auditors _part1 potx

F
INANCIAL S TATEMENTS A ND
S UPPLEMENTAL I NFORMATION
N
ew York City Industrial Development Agency
(A Component Unit of The City of New York)
Years Ended June 30, 2010 and 2009
With Report of Independent Auditors
Ernst & Young LLP


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New York City Industrial Development Agency
(a component unit of The City of New York)
Financial Statements and Supplemental Information
Years Ended June 30, 2010 and 2009
Contents
Report of Independent Auditors 1
Management’s Discussion and Analysis 3
Financial Statements
Balance Sheets 7
Statements of Revenues, Expenses and Changes in Fund Net Assets 8
Statements of Cash Flows 9

Notes to Financial Statements 11
Supplemental Information
Combining Balance Sheets 33
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 34


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1

Report of Independent Auditors
The Board of Directors
New York City Industrial Development Agency
We have audited the balance sheets of the New York City Industrial Development Agency (the
Agency), a component unit of The City of New York, as of June 30, 2010 and 2009 and the
related statements of revenues, expenses and changes in fund net assets and cash flows for the
years then ended. These financial statements are the responsibility of the Agency’s management.
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits 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. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform an audit of the
Agency’s internal control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

Agency’s internal control over financial reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of New York City Industrial Development Agency as of June 30, 2010 and
2009, and the changes in its financial position and its cash flows for the years then ended in
conformity with US generally accepted accounting principles.
As discussed in Note 2, the Agency adopted Governmental Accounting Standards Board
Statement No. 53, Accounting and Financial Reporting for Derivative Instruments as of July 1,
2009.
In accordance with Government Auditing Standards, we have also issued our report dated
September 21, 2010 on our consideration of the Agency’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the

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Five Times Square
New York, NY 10036-6530

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scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
Management’s discussion and analysis on pages 3 through 6 is not a required part of the basic
financial statements but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding methods of measurement and presentation of this required
supplementary information. However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The supplemental information is presented for purposes of additional analysis
and is not a required part of the basic financial statements. Such information has been subjected
to the auditing procedures applied in our audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic financial statements taken
as whole.
EY
September 21, 2010
A member firm of Ernst & Young Global Limited



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New York City Industrial Development Agency
(a component unit of The City of New York)
Management’s Discussion and Analysis
June 30, 2010
This section of the New York City Industrial Development Agency (IDA or the Agency) annual
financial report presents our discussion and analysis of financial performance during the fiscal
year that ended on June 30, 2010. Please read it in conjunction with the financial statements and
accompanying notes, which follow this section.
2010 Financial Highlights
• Cash and cash equivalents decreased $7,257,155 (or 63%)
• Investments increased $8,074,347 (or 26%)
• Current liabilities increased $7,933,020 (or 11%)
• Unrestricted net assets increased $336,370 (or 1%)
• Operating revenues increased $3,242,908 (or 68%)
• Operating income increased $3,375,012 (or 202%)
• Operating expenses decreased $132,104 (or 2%)
• Nonoperating expenses decreased $3,649,128 (or 73%)
Overview of the Financial Statements
This annual financial report consists of three parts: Management’s discussion and analysis (this
section), basic financial statements and supplemental information. IDA is considered a
component unit of The City of New York (the City) for financial reporting purposes, and a
public benefit agency of the State of New York (the State). IDA was established in 1974 to
actively promote, retain, attract, encourage and develop an economically sound commerce and
industry base to prevent unemployment and economic deterioration in the City.
IDA is a self-supporting entity and follows enterprise fund reporting. Enterprise fund statements
offer short-term and long-term financial information about the Agency’s activities. The Agency
operates in a manner similar to a private business.

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Financial Analysis of the Agency
Net Assets. The following table summarizes IDA’s financial position at June 30, 2010, 2009, and
2008 ($ in thousands) and the percentage changes between June 30, 2010 and 2009:
% Change
2010 2009 2008 2010 –2009 2009 –2008

Current and other assets
$ 1,991,372
$ 2,003,341 $ 622,715
(1%)
221%
Capital assets
–
– 984,597
–
(100%)
Total assets
1,991,372
2,003,341 1,607,312
(1%)
25%

Current liabilities
79,254
71,322 30,410
11%
135%
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oncurrent liabilities
1,872,619
1,892,858 1,531,053
(1%)
24%
Total liabilities
1,951,874
1,964,180 1,561,463
(1%)
26%
Total net assets
$ 39,498
$ 39,161 $ 45,849
1%
(15%)

In fiscal year 2010, current and other assets decreased by $11,969,947 or 1% as a result of
payments relating to the Yankee Stadium and Queens Ballpark Projects.
In fiscal year 2009, current and other assets increased by $1,380,626 or 221%. These changes are
due to completion of the Yankee Stadium and Queens Ballpark Projects. Upon completion of
construction on the stadiums in Spring 2009, the asset was converted from construction in progress
to PILOT Lease Receivable. See Note 9 for more information.

The Agency’s net assets increased $336,370 or 1% and decreased by $6,687,770 or 15% in fiscal
year 2010 and 2009, respectively, as a result of its normal operating activities.
Operating Activities
The Agency assists industrial, commercial and not-for-profit organizations in obtaining long-
term, low-cost financing for fixed assets through a financing transaction (the Financing
Transaction), which includes the issuance of double and triple tax-exempt bonds. In addition, the
Agency also assists participants through a “straight lease” structure. Whether the Agency issues
tax-exempt bonds on behalf of project companies or merely enters into a straight lease, the
Agency may provide one or more of the following tax benefits: exemption from mortgage
recording tax; payments in lieu of real property taxes that are less than full taxes; and exemption
from City and State sales and use taxes as applied to construction materials and machinery and
equipment. During the year ended June 30, 2010, IDA did not issue any tax exempt bonds. IDA
issued approximately $5.0 million in tax exempt bonds in 2009.
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During fiscal year 2007, in connection with the construction and financing of the Stadium
Projects, the Agency issued Tax Exempt PILOT Revenue Bonds, Taxable Rental Revenue
Bonds, Taxable Installment Purchase Bonds and Taxable Lease Revenue Bonds totaling
$1,580,475,000. The Taxable Bonds are special limited obligations of the Agency and are
payable solely from revenues derived from the Lease Agreement with Yankee Stadium, LLC and
the Lease Agreement and Installment Sales Agreement with Queens Ballpark Company, LLC
and for financial reporting purposes given no accounting recognition in the Agency’s financial
statements.
Since the Tax Exempt PILOT Bonds were issued to finance the construction of the stadiums and
the Agency is the legal owner of the stadiums, the Tax Exempt PILOT Revenue Bonds have
been recorded in the Agency’s books and records. The PILOT Bonds are special limited

obligations of the Agency payable solely from Payment in lieu of Taxes (PILOT) Revenues
derived from PILOTs made by Yankee Stadium, LLC and Queens Ballpark Company, LLC.
The Agency charges various program fees that may include application fees, financing fees, legal
fees and compliance fees. The Agency also charges servicing fees on any recapture of benefits
from companies defaulting on their compliance requirements for IDA benefits.
The following table summarizes IDA’s changes in net assets for fiscal years 2010, 2009, and
2008 ($ in thousands) and the percentage changes between June 30, 2010 and 2009:
% Change
2010 2009 2008 2010 – 2009 2009 – 2008
Operating revenues:

Fee income
$ 3,208
$ 3,886 $ 6,297
(18%)
(38%)
Other income
4,801
880 5,189
446%
(83%)
Total operating revenues
8,009
4,766 11,486
68%
(59%)

Operating expenses:




Management fees
6,052
6,052 6,052
0%
0%
Other expenses
250
382 310
(34%)
23%
Total operating expenses
6,302
6,434 6,362
(2%)
1%
Operating (loss) income
1,707
(1,668) 5,124
202%
(133%)

N
onoperating revenues (expenses):




Earnings on investments
392
1,542 2,343
(75%)
(34%)
Special project costs
(1,762)
(6,562) (11,152)
(73%)
41%
PILOT lease income
103,111
17,379 –
493%
100%
PILOT investment income
3,969
264 –
1,403%
100%
Bond interest expense
(107,080)
(17,643) –

(507%)
(100%)
Total nonoperating expenses
(1,370)
(5,020) (8,809)
(73%)
(43%)
Change in net assets
337
(6,688) (3,685)
105%
(82%)
Beginning net assets
39,161
45,849 49,534
(15%)
(7%)
Ending net assets
$ 39,498
$ 39,161 $ 45,849
1%
(15%)

In fiscal year 2010, revenues relating to other operating income increased by $3,921,471 or
446%. This is a result of recapture benefits for Pfizer Inc., AXA Equitable Variable Life
Insurance, Reuters America and Mutual Life Insurance.
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In fiscal year 2009, revenues relating to fee income decreased $2,410,438 or 38% due to the
Agency’s inability to issue tax exempt financing to not-for-profits as a result of expired state
authorizing legislation. A bill re-authorizing IDA financing of not-for-profit construction is
stalled in the State Legislature.
Earnings on Agency investments decreased $1,149,783 or 75% due to lower interest rates.
Special project costs decreased by $4,798,911 or 73% in fiscal year 2010 due to the completion
of several projects during the prior fiscal year.
Special project costs decreased $4,590,774 or 41% in fiscal year 2009. This decrease was
primarily the result of completing the New York City Business Development Study Project and
other projects that are nearing completion.
The Agency annually contracts with EDC for all administrative services which are necessary to
administer the programs of the Agency. In fiscal years 2010 and 2009, management fees were
$6,052,117.
Capital Assets and Long-Term Debt Activity
During 2009, the Agency incurred costs totaling $491,534,481, net of capitalized interest costs in
connection with the Stadium Projects. These costs represented construction in progress reported
as Capital Assets, not being depreciated in the Agency’s Balance Sheets. These costs were
financed through the issuance of Tax Exempt PILOT Bonds in the amount of $1,489,910,000. As
indicated above, upon completion of the stadiums in 2009, the asset was converted from
construction in progress to PILOT lease receivable. Therefore the agency had no capital asset
activity during the year ended June 30, 2010.
Contacting the Agency’s Financial Management
This financial report is designed to provide our customers, clients and creditors with a general
overview of the Agency’s finances and to demonstrate the Agency’s accountability for the
resources at its disposal. If you have any questions about this report or need additional financial
information, contact the Public Information Officer, New York City Economic Development
Corporation, 110 William Street, New York, NY 10038.
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New York City Industrial Development Agency
(a component unit of The City of New York)
Balance Sheets
June 30
2010 2009
Assets

Current assets:
Cash and cash equivalents (Note 3)
$ 4,228,097
$ 11,485,252
Investments (Note 3)
36,613,294
30,921,686
Fees receivable, net of allowance for doubtful accounts
of $91,718 and $107,114, respectively
198,347
313,891
PILOT lease receivable, net
18,993,558
25,790,000
Total current assets
60,033,296
68,510,829

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oncurrent assets:


Restricted cash- stadium projects (Note 3)
22,900,410
–
Restricted investments (Note 3)
2,382,739
–
Restricted investments- stadium projects (Note 3)
102,216,131
323,881,716
PILOT lease receivable, net
1,701,402,421
1,506,549,757
Deferred bond issuance costs
82,601,213
86,045,984
Deferred outflow of resources
19,835,517
18,353,388
Total noncurrent assets
1,931,338,431
1,934,830,845
Total assets
$ 1,991,371,727
$ 2,003,341,674

Liabilities and net assets

Current liabilities:


Accounts payable and accrued expenses
$ 67,467
$ 62,048
Due to New York City Economic Development Corporation
945,083
2,901,662
Bonds payable – current
18,993,558
25,790,000
Interest payable on bonds
56,336,463
41,972,279
Deferred revenues (Note 5)
529,336
595,637
Other liabilities
2,382,739
–
Total current liabilities
79,254,646
71,321,626

N
oncurrent liabilities:


Bonds payable, net (Note 6)
1,852,783,712
1,874,505,178
Derivative instrument- interest rate swap
19,835,517
18,353,388
Total noncurrent liabilities
1,872,619,229
1,892,858,566
Total liabilities
1,951,873,875
1,964,180,192



Unrestricted net assets
39,497,852
39,161,482

$ 1,991,371,727
$2,003,341,674
See accompanying notes.
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New York City Industrial Development Agency
(a component unit of The City of New York)
Statements of Revenues, Expenses and Changes in Fund Net Assets
Year Ended June 30
2010 2009
Operating revenues:
Fee income (Note 2)
$ 3,207,642
$ 3,886,205
Other income (Note 2)
4,801,151
879,680
Total operating revenues
8,008,793
4,765,885



Operating expenses:


Management fees (Note 4)
6,052,117
6,052,117
Accounting fees
73,530

53,459
Consulting fees
54,671
25,000
Public hearing expenses
77,972
85,838
Marketing/advertising
37,812
–
Provision for bad debt
–
47,417
Legal fees
–
168,605
Miscellaneous expenses
6,257
2,027
Total operating expenses
6,302,359
6,434,463
Operating income (loss)
1,706,434
(1,668,578)



N
onoperating revenues (expenses):

Investment income
392,363
1,542,146
Special project costs (Note 10)
(1,762,427)
(6,561,338)
PILOT lease income
103,111,155
17,379,199
PILOT investment income
3,968,500
264,094
Bond interest expense
(107,079,655)
(17,643,293)
Total nonoperating revenues (expenses)
(1,370,064)
(5,019,192)



Change in net assets
336,370
(6,687,770)



Unrestricted net assets, beginning of year

39,161,482
45,849,252
Unrestricted net assets, end of year
$ 39,497,852
$ 39,161,482
See accompanying notes.
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