Build NYC Approves Tax-Exempt Financing For YMCA to Reduce Costs, Ramp up Renovations, and Construct New Facility
Build NYC today approved approximately $50 million in tax-exempt financing to assist with expansion projects and cost reductions for the YMCA of Greater New York. The YMCA will use this tax-exempt financing, for the refunding of outstanding bonds and to finance and refinance the renovation and improvements of multiple branches, including the Prospect Park Branch in Brooklyn where the YMCA plans to open its New Family Aquatic Center.
“The assistance provided to the YMCA is further proof of our commitment to the future growth and success of New York City’s non-profits,” said Build NYC Chairman Seth W. Pinsky. “With today’s approval of important tax-exempt financing, the YMCA will be able to reduce costs while increasing the number of critically important services they provide to communities across the City.”
“This new financing will help the Y to continue to strengthen the foundations of community in New York City through access to its youth development, healthy living, and social responsibility programs,” said Mike Guarino, CFO of the YMCA of Greater New York. “For 160 years, the YMCA of Greater New York has been a bedrock non-profit institution committed to helping New Yorkers learn, grow, and thrive. This funding helps us look to the future, and honor our organization’s history by realizing our aspirations.”
The proposed YMCA project will enable the community service organization to reduce its debt service costs as well as to finance and re-finance its on-going capital and improvement expenditures through the tax-exempt bond financing. Through the refunding of outstanding New York City Industrial Development Agency (NYCIDA) bonds, YMCA will be able to obtain a lower interest rate to achieve significant savings. These savings will assist the furtherance of YMCA’s mission by re-directing the organization’s financial resources to provide needed recreational, cultural and other services to the residents of New York City.
Build NYC also preliminarily approved Montefiore Medical Center for approximately $40 million in tax-exempt financing and $4 million in mortgage recording tax deferral benefits to assist in the fit-out for a to-be constructed 280,000 square foot ambulatory care center, at Hutchinson Metro Center in the Bronx.
“This project is of great importance to Montefiore, to the community and to the City, and Build NY's participation is a significant factor in enabling us to proceed with the project. This project will enable Montefiore to continue and expand its mission of healing in the Bronx," said Ed Pfleging, Vice President of Facilities and Real Estate at Montefiore.
New York City Economic Development Corporation is the City's primary vehicle for promoting economic growth in each of the five boroughs. NYCEDC's mission is to stimulate growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City's competitive position. NYCEDC serves as an advocate to the business community by building relationships with companies that allow them to take advantage of New York City's many opportunities. Find us on Facebook or follow us on Twitter, or visit our blog to learn more about NYCEDC projects and initiatives.
About Build NYC
The Build NYC Resource Corporation (Build NYC) is a conduit bond issuer administered by NYCEDC and assists qualified not-for-profit institutions and other entities in obtaining tax-exempt and taxable bond financing. To request information on Build NYC, call (212) 312-3600 or e-mail [email protected].
About the YMCA of Greater New York
The YMCA of Greater New York is, and always will be, dedicated to building healthy, confident, connected and secure children, adults, families and communities. With a focus on youth development, healthy living and social responsibility, the Y nurtures the potential of every youth and teen, improves New York City’s health and well-being and provides opportunities to give back and support neighbors. In scores of neighborhoods across the five boroughs and its camp upstate, the Y makes accessible the support and opportunities that empower more than 400,000 New Yorkers to learn, grow and thrive. Visit ymcanyc.org.