New Help Coming for Rockland Non-Profit Organizations

Rockland County is getting ready to create a new independent financial agency that will have the power to help local not-for-profit organizations obtain funding for large projects through tax-expempt bonds.

The agency, which would operate through the Pearl River-based Rockland Economic Development Corp., would re-open a door to lower-cost financing that was shut in 2008 when state-authorized industrial development agencies - including the Rockland IDA - lost the legal power to assist not-for-profit organizations.

Rockland County Legislature Chairwoman Harriet Cornell, D-West Nyack, said the last major non-profit projects that were able to get Rockland IDA help included the expansion of the Nyack Library and JCC Rockland's renovation of its new campus off West Nyack Road in West Nyack.

"Not-for-profit organizations perform many important roles in the county, "including creating jobs, providing education and health care services, sports and recreational facilities, assisting the needy, and generally easing the burdens of government," said Cornell. "We depend upon these quasi-governmental organizations to partner with us to provide these much needed services and more.  They do not disappoint, providing in-house services and outreach in an efficient, collegiate and compassionate manner.  It is our hope that the new entity will enable these organizations to grow and thrive." 

Legislation to create the new financial agency was proposed by REDC President Ronald Hicks in January and sent to the county Legislature by Rockland County Executive C. Scott Vanderhoef. The proposal has already been approved by the Legislature's Economic Development and Budget and Finance Committees and goes before the full Legislature for approval on Tuesday - where legislators expect the agency will be easily approved.

Legislator Michael Grant, D-Haverstraw, who is chairman of the Economic Development Committee, said the new agency meets a vital need for both not-for-profit institutions and the local economy without creating any financial burden for  county taxpayers.

Legislator Ed Day, R-New City, the services provided by local not-for-profit groups are usually peformed on a more cost-effective basis than if government had to provide the service.

"This is an example of innovative thinking," Day said. "This shows what good can be done when you think outside of the box."

The new local development corporation's the sole purpose would be providing tax exempt bond financing to not-for-profit organizations in Rockland County.  The new LDC would also provide organizations with the option of tax exempt bond financing for larger projects as well as a mortgage recording tax exemption for smaller, traditionally financed projects, according to Hicks.

When created, the LDC would be self-funded and administered by the Rockland Economic Development Corporation, which also administers the Rockland Industrial Development Agency.

"This innovative solution to Albany's inaction on Civic Facilities legislation will foster job growth and investment in Rockland while at the same time providing assistance to the not-for-profits in our county that are the lifeblood of our community and are fundamental to our diverse economy," Vanderhoef said.

Since the 1980s, IDAs across the state were authorized to provide assistance to not-for-profit organizations.  However, since 2008, the state Legislature and Gov. David Paterson have been unable to agree on the terms to extend the "civic facilities" authorization for IDAs.

Previously, Rockland's IDA provided less-costly financing mechanism that enabled projects like the expansion of Dominican College in Orangeburg as well as the affordable housing units for emergency service providers in Nyack to become realities. Hicks said the IDA's involvement has saved not-for-profit organizations millions of dollars and the new agency will be able to save groups millions on future projects.

Hicks said the new local development corporation can be quickly established after the county's approval. He said the same trustees who serve on the Rockland IDA board would make up the new corporation's board. Hicks estimated the new board could have its first meeting within 30 days and could begin accepting applications immediately.

Hicks said there are many organizations waiting to take advantage of the benefits of the new local development incorporation, including a hospital and other health care facilities, private schools, colleges, libraries and local arts organizations.

Because the REDC already has experience and staffing to handle the applications that will come in from not-for-profit groups, Hicks said revenue generated from fees will be re-invested in existing local programs that encourage business and job growth in Rockland.