BIOMED TO TAKE OVER VACANT BUILDINGS IN GREENBURGH--FOR BIOTECH USE

TOWN BOARD APPROVES RESOLUTION THAT WILL HELP BIOMED TAKE OVER VACANT BUILDINGS IN UNINCORPORATED GREENBURGH FOR BIOTECH USES...

Last year the town received disappointing news. OSI, which had planned to relocate their biotech company to unincorporated Greenburgh (Ardsley) decided to halt their relocation (even though they had spent significant dollars on the newly acquired buildings). The reason: A Hostile takeover.


GOOD NEWS BioMed Realty Trust, which owns the Landmark at Eastview (ALSO IN GREENBURGH) has decided to buy the vacant property on Old Saw Mill River Road.

About 400,000 square feet of laboratory and office space will now be part of BioMed.

According to a report in the Westchester County Business Journal "BioMed Realty, the prospective new landlord, is expected to lease about 130,000 square feet of space in two Ardsley Park buildings to Acorda Therapeutics Inc. The publicly traded company might lease an additional 120,000 square feet over the next several years, Acorda officials said in their recent application to the Westchester County Industrial Development Agency for project tax breaks.

Based in Hawthorne, Acorda develops and markets drugs that improve neurological function in persons with multiple sclerosis, spinal cord injury and other nervous-system disorders. The company to date has marketed two commercial products, Ampyra extended-release tablets to improve walking in MS patients, and Zanaflex capsules, a short-acting drug to manage spasticity.

Acorda officials in their project proposal to the IDA said the company has outgrown its Hawthorne facility at 15 Skyline Drive in the Mid-Westchester Executive Park. It plans to relocate all of its 159 current employees to Ardsley. Over the next five years, Acorda expects to add 190 biotech jobs there with an average annual salary of $120,000."



The Town Board approved the following resolution last week. Had we not approved this action BioMed would not have purchased the property. A joint meeting was held with the Ardsley School Board and Town Board to discuss the resolution prior to the Town Board approving the action. I think this is good for the town. Vacant buildings will be occupied. Good for property values. Good for local businesses. More job opportunities. Potential additional revenue for the town...

PAUL FEINER



TB-1 – 06/08/11



RESOLUTION EXPRESSING THE TOWN BOARD’S AGREEMENT WITH THE DECISION OF THE WESTCHESTER COUNTY INDUSTRIAL DEVELOPMENT AGENCY “WESTCHESTER COUNTY IDA,” TO TERMINATE THE MARCH 16, 2010 PAYMENT IN LIEU OF TAXES AGREEMENT (“PILOT AGREEMENT”) BY AND BETWEEN THE WESTCHESTER COUNTY IDA, OSI PHARMACEUTICALS, INC., AND OSI ARDSLEY LLC LOCATED AT 410, 420, 430, 440, 444 AND 460 SAW MILL RIVER ROAD, IDENTIFIED ON THE OFFICIAL TAX MAPS AS 8.430-305-7..1, 8.430-305-7..2, 8.430-305-7..3, 8.500-350-3, 8.500-350-4, 8.430-305-7..4



WHEREAS, the Town of Greenburgh is a signatory to certain Payment in Lieu of Taxes Agreement dated as of March 16, 2010 (the “PILOT Agreement”); and



WHEREAS, OSI Pharmaceuticals, LLC, a Delaware Limited Liability Company and OSI Ardsley, LLC, a Delaware Limited Liability Company (together referred to as “The Company”) are obligated under the PILOT Agreement to make payments to the Town in lieu of taxes; and



WHEREAS, pursuant to the PILOT Agreement, the Company granted a mortgage encumbering the property located at 410, 320, 430, 440, 444 and 460 Saw Mill River Road, Ardsley, New York (the “facility realty”) as security for the PILOT payments; and



WHEREAS, on June 8, 2010, the Company was acquired by Astellas US Holdings, Inc. (“Astellas US”) and the Company has become a wholly owned subsidiary of Astellas US LLC; and



WHEREAS, by reason of the acquisition, the Company no longer intends to utilize the Facility Realty as its corporate headquarters, general corporate offices and research and development and manufacturing facilities; and



WHEREAS, the Company has entered into a Purchase and Sale Agreement providing for the sale of the Facility Realty to Biomed Realty, LP which sale is scheduled to close in June 2011; and



WHEREAS, the Town has provided quality services to review and evaluate the issues to ensure the Town and School are held harmless with regard to the Termination of the Agreement, the Company has agreed to compensate the Town in the sum of $10,000; and



WHEREAS, in order to induce the Town to agree to the termination of the PILOT Agreement and the PILOT Mortgage, the Company has agreed to pay certain portions of the PILOT payments that would have been due had these agreements not been so terminated and agrees to provide $1,500,000 to be held in escrow with the Westchester County IDA as acceptable security for such payments should payment of any shortfall not occur; and



WHEREAS, Town will accept all, if any shortfall payments as normal tax collection procedures apply, and will pay to the School and County within the same time frame allocated for normal tax collection and payments to the taxing jurisdictions; and



WHEREAS, it is in the interest of the Town to execute agreements to terminate the PILOT Agreement and the PILOT Mortgage and an agreement that will require the Company to pay any difference between the tax paid by the new property owner and what would have been the payment under the PILOT Agreement with the Company; and



NOW, THEREFORE, BE IT RESOLVED, that the Town Board of the Town of Greenburgh hereby authorizes the execution of the PILOT Shortfall Payment Agreement, the PILOT Termination Agreement, the Satisfaction of Mortgage, the Escrow Agreement and any other relevant settlement documents consistent with this resolution; and



BE IT FURTHER RESOLVED, the Town Board hereby authorizes the acceptance of $10,000 from OSI Pharmaceuticals, LLC, a Delaware Limited Liability Company and OSI Ardsley, LLC, a Delaware Limited Liability Company (together referred to as “The Company”) to offset the cost to the Town associated with the review, evaluation and modification of the agreements referenced herein.