Iona College Receives County Development Financing

Iona College is one of four nonprofit organizations that were first to receive low-cost and tax-exempt financing through Westchester County's Local Development Corporation.

Through the LDC, nonprofits can get access to tax-exempt bonds to help pay for their projects or to refinance. There is no financial risk to the county, officials said, and the obligation for paying back the debt is solely the responsiblity of the nonprofits.

County Executive Robert Astorino said the Local Development Corporation, which he established in January 2012, can save the organizations a great deal of money with no risk and no cost to the taxpayers.

"By any measure, this is a win-win for Westchester and judging by the four projects approved (Tuesday), there is a great and growing demand for this tremendous resource," he said.

The four projects are:

• Iona College, New Rochelle—$5 million in low-cost financing to pay down existing debt that was used for the acquisition and improvements to five faculty residences.
• Kendal on Hudson, Sleepy Hollow—$64,330,000 to refinance existing debt of the continuing care facility and use some of the savings to make capital improvements, saving the facility $100,000 annually for 30 years.
• Northern Westchester Hospital, Mount Kisco—$43 millon in low-cost financing to design, construct and equip the expansion of a surgical suite.
• Phelps Memorial Hospital, Sleepy Hollow—$16 million in low-cost financing for the construction, renovation and equipping of an approximately 20,000 square-foot surgical suite and the acquisition, construction and equipping of 200-foot-long corridor bridge.

Astorino established the LDC to fill a void that existed since 2008 when the state's Industrial Development Agencies lost the power to authorize bonds on behalf of nonprofit organizations.

The financing for the four projects was approved about 13 hours after the county's Board of Legislators ratified, by a 16-1 vote, Astorino's creation of the LDC.

"The LDC provies a way to preserve and expand services without any financial obligation to county taxpayers," said Stephen Hunt, chairman of the LDC. "As a lifelong resident of Westchester County I am proud to be part of such a valuable financial tool to help strengthen our community."