Phelps and Kendal to Partake of Financing

Only hours after the ratification by county legislators of the Local Development Corporation (LDC), County Executive Robert Astorino announced that two of the four non-profits getting special financing are in Sleepy Hollow.

“The LDC can save non-profits a great deal of money in financing costs, and it can do so at no risk, and at no cost, to taxpayers," Astorino said. "By any measure, this is a win-win for Westchester and judging by the four projects approved today, there is a great and growing demand for this tremendous resource."

The two Sleepy Hollow non-profits, and next-door-neighbors, among the first to partake of low-cost and tax-exempt financing are:

• Kendal on Hudson approved for $64,330,000 to refinance existing debt and use some of the savings to make capital improvements to the existing facility. This transaction is projected to result in $100,000 annual savings for the next 30 years.
• Phelps Memorial Hospital approved for $16,000,000 in low-cost financing for the construction, renovation and equipping of an approximately 20,000 square-foot surgical suite on the third floor of the existing Medical Services Building. The financing will also be used for the acquisition, construction and equipping of a 200-foot long by 9-foot wide enclosed corridor constructed as a bridge connecting the surgical suite to the third floor of the main hospital building.

The other two nonprofits are:

• Northern Westchester Hospital in Mt. Kisco
• Iona College in New Rochelle

“This is only one day and we already have $128 million in low-cost and tax-exempt financing to help our non-profits create jobs and improve services, all at no cost and no risk to taxpayers.  This is just the beginning,” said Astorino.

From a statement from the county executive's office:

Through the LDC, non-profits are able to access tax-exempt bonds in the bond market to help pay for their projects or to refinance. There is no financial risk to the county. The obligation for repaying the debt rests solely with the non-profit organizations. The LDC acts as a conduit to enable the non-profits to receive tax exempt status.

Any non-profit organization looking to access the low-cost and tax-exempt project financing made available through the LDC should contact Jim Coleman, executive director of the LDC, at (914) 995-2963 or jcoleman@westchestergov.com.

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