!

"# %&&'(%)*' #'+'),'

-'#,%. /#"/'#*%',0 ++1
2345 670 8769



"We acknowledge that we have received a notice from the State regarding the
possible termination of our Empire Zone certification. The notice provides a 30-
day period to appeal the pending decision, which we intend to do. We have had
employees working at the site from 2007 into 2013 before we were forced to
temporarily mothball the project. We believe we are in compliance', said Scott R
Congel, Managing Partner, Bersin Properties, LLC.

Since current ownership acquired Bersin Properties, LLC and the Medley Center
in 2007, the current owners have paid over $7 million in payments to the County,
Town and School of which the State provided us $1.5 million in credits. "Any
report that current owners have benefitted by $4 million through the Empire
Zone is flatly false and misleading. We invite the Assemblyman to meet with our
attorneys and accountants to review such outrageous claims. We believe the
Assemblyman is misleading the public by including any benefits the prior owner
received from the State. As Assemblyman Morelle is aware, we stepped in and
acquired this failing project by acquiring Bersin Properties, LLC.," said Congel.

"Assemblyman Morelle and representatives of the Town, County and School
District are well aware that we had a lender stop funding in 2009, in violation of
their loan agreement, during the worst financial crisis since the depression. The
lender still holds a mortgage lien which blocks our ability to progress., explained
Congel.

"We have been prevented from proceeding with the project by events out of our
control yet the East Irondequoit Central School District, Town of Irondequoit, and
COMIDA want to penalize us for that. They are seeking to impose penalties for
failure to proceed with the project. Rather then join together to resolve our
differences and move the project forward, they have chosen to litigate. While we
believe that their claims for penalties are invalid and unjustified, we made a non-
prejudicial offer of $6.4 million to settle all claims and were willing to escrow the
first $1.7 million as a show of good faith. "

"We believe it would be more beneficial for Assemblyman Morelle to work with us
to find a resolution in order to move the project forward. We cannot help but
wonder if the Assemblyman has a different agenda by mentioning another
developer to replace us.



"It is, and always has been our desire to complete this billion dollar project. We
share the community's frustration with not being able to move the project
forward. We hope to resolve the differences among the School, Town and
COMIDA and finalize the Amended PILOT. Second we will pursue the release of
the lien and then put the Phase I financing in place to begin the project. We, and
the taxing jurisdictions, need to find a reasonable solution to allow the project to
move forward. At the same time, our litigation against our prior lender will
proceed."


###