NOTICE OF PUBLIC HEARING- NM ANML, LLC

02/22/21

Application
CBA

        NOTICE IS HEREBY GIVEN that due to the Novel Coronavirus (COVID-19) Emergency State and Federal bans on large meetings or gatherings and pursuant to Governor Cuomo’s Executive Order 202.1 issued on March 12, 2020, as amended to date, permitting local governments to hold public hearings by telephone and video conference and/or similar device, the Public Hearing scheduled for February 22, 2021, at 10:00 a.m., local time, being held by the Town of Brookhaven Industrial Development Agency (the “Agency”), in accordance with the provisions of Article 18-A of the New York General Municipal Law will be held electronically via conference call instead of a public hearing open for the public to attend. PLEASE NOTE THE SPECIAL PUBLIC HEARING LOGISTICS AND INSTRUCTIONS INCLUDED AT THE END OF THIS NOTICE.
 

        The Agency has previously provided its assistance to LAX Hotel, LLC, a California limited liability company (the “Original Company”) and Amneal Pharmaceuticals of New York, LLC, a limited liability company organized and existing under the laws of the State of Delaware (the “Sublessee”), in (i) the acquisition of an approximately 37.8 acre parcel of land located at 50 Horseblock Road, Yaphank, Town of Brookhaven, New York (the “Land”), upon which there is an existing 121,017 square foot building, and upon which there is proposed to be constructed a three-story approximately 352,544 square foot expansion, the components of which are: First Floor (a) an approximately 9,703 square foot first floor office and employee space, (b) an approximately 85,723 square foot manufacturing area, (c) an approximately 118,152 square foot warehousing area, (d) an approximately 25,287 square foot technical area, and Second Floor (e) an approximately 13,575 square foot office and 12,783 square foot laboratory area, and (f) an approximately 69,132 square foot manufacturing area; Third Floor (g) an approximately 18,189 square foot research and development area; and (h) the construction and equipping of an approximately 6,088 square foot on-site sewerage industrial waste treatment plant to process approximately 32,500 gallons/day of industrial waste flow and approximately 22,000 gallons/day domestic waste flow (collectively the “Improvements”), and the acquisition and installation of certain equipment not part of the Equipment (as such term is defined in the Equipment Lease Agreement, dated as of October 1, 2012 (the “Equipment Lease Agreement”), between the Agency and the Sublessee (the “Facility Equipment”; and, together with the Land and Improvements, the “Company Facility”), leased by the Agency to the Company, for further sublease by the Company to, and used by the Sublessee; and (iv) the acquisition and installation of certain Equipment potentially including, but not limited to, blenders, high share mixers, fluid bed processors, community mills, laser equipment, compression tablet pressers, D-Dusters, metal detectors, hardness testers, weight variation machines, capsulation machines, polishers, weight sorting machines, analytical scales, coding process equipment, air control systems, packing lines including fully automated vision systems, soft gelatin manufacturing equipment, homogenized mixers, soft gel capsulation machines, dying tunnels, sorting equipment, inks, laser printing machines, FVAC systems, temperature and humidity control systems, air compressors, ionized water and dust collection systems, hi-los facilities, laboratory equipment, HPLC, GC, LC, spectrometer, material management software and ERP, a stainless steel ballasted racking system, high-efficiency invertors and a solar panel system to be installed on the roof-top to include approximately 1250 solar panels (collectively, the “Equipment”); and, together with the Company Facility, the “Facility”), which Equipment is leased by the Agency to the Sublessee and the Sublessee uses the Facility for the development, manufacturing and warehousing of generic drugs as well as other uses in connection with the operation of the Facility, including but not limited to the executive and administrative office space (collectively, the “Project”).

        The Original Company has now requested the Agency’s consent to the (i) assignment by the Original Company of all of its rights, title, interest, duties, liabilities and obligations under the Lease Agreement, the Environmental Compliance and Indemnification Agreement, the PILOT Agreement and the Recapture Agreement, and certain other agreements in connection with the Facility to NM AMNL, L.L.C., a California limited liability company or another entity formed or to be formed by NM AMNL, L.L.C., or the principals thereof (collectively, the “Assignee”), and the assumption by the Assignee of all of such rights, title, interest, duties, liabilities and obligations of the Original Company, and (ii) the release of the Original Company from any further liability with respect to the Facility, subject to certain requirements of the Agency, all pursuant to the terms of an Assignment, Assumption and Amendment Agreement, to be dated as of February 1, 2021, or such other date as may be determined by the Chairman, Chief Executive Officer and counsel to the Agency (the “Assignment and Assumption Agreement”), by and among the Agency, the Original Company and the Assignee, a certain Assignment and Assumption of Lease Agreement, to be dated as of February 1, 2021, or such other date as may be determined by the Chairman, Executive Director and counsel to the Agency (the “Assignment of Lease Agreement”), by and between the Original Company and the Assignee, and consented to by the Agency, and a certain Amended and Restated Lease and Project Agreement, dated as of February 1, 2021 or such other date as may be determined by the Chairman, Chief Executive Officer, Deputy Executive Director and counsel to the Agency (the “Amended and Restated Lease Agreement), by and between the Agency, as lessor, and the Company, as lessee. All terms used herein and not defined are defined in Schedule A of the Lease Agreement, dated as of October 1, 2012 (the “Lease Agreement”). All terms used herein and not defined are defined in Schedule A of the Lease Agreement, dated as of October 1, 2012 (the “Lease Agreement”). The Facility will be owned by the Assignee and will continue to be operated and/or managed by the Sublessee.

        The Agency contemplates that it will provide financial assistance to the Assignee in the form of exemptions from mortgage recording taxes in connection with the financing or any subsequent refinancing of the Facility and continued abatement of real property taxes pursuant to terms of the Lease Agreement and as assigned by the Original Company to the Assignee in accordance with the Assignment and Assumption Agreement, the Assignment of Lease, and the Amended and Restated Lease Agreement, all consistent with the uniform tax exemption policies (“UTEP”) of the Agency.
 

        A representative of the Agency will, at the above-stated time and place, hear and accept written comments from all persons with views in favor of or opposed to either the proposed financial assistance to the Assignee or the location or nature of the Facility. Prior to the hearing, all persons will have the opportunity to review on the Agency’s website (https://brookhavenida.org/), the application for financial assistance filed by the Assignee with the Agency and an analysis of the costs and benefits of the proposed Facility.
 

        Members of the public may listen to the Public Hearing, and comment on the Project and the benefits to be granted by the Agency to the Assignee during the Public Hearing, by calling (712) 770- 5505 and entering access code 884-124. Comments may also be submitted to the Issuer in writing or electronically. Minutes of the Public Hearing will be transcribed and posted on the Issuer’s website.
 

Dated: February 12, 2021
TOWN OF BROOKHAVEN INDUSTRIAL DEVELOPMENT AGENCY
By: Lisa MG Mulligan
Title: Chief Executive Officer

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