NYCIDA and NYCCRC to Help Three Not-For-Profit Organizations and an Industrial Company Expand and Add Jobs
NYCIDA Board Also Approved Finance Assistance for One Bryant Park.
New York City Industrial Development Agency (NYCIDA) approved financing assistance for the expansion of a university, a not-for-profit organization and an industrial company in Brooklyn, Queens and Manhattan. NYCIDA Board also approved a refunding bond issuance of Liberty Bonds for the construction and development of One Bryant Park, the world’s most environmentally-friendly high-rise office tower. In addition, New York City Capital Resources Corporation (NYCCRC) approved assistance for the expansion of a nursing facility in Brooklyn. In total, the transactions will spur private investment of about $2.4 billion and are expected to create and retain more than 7,800 jobs.
“The NYCIDA transactions approved today provide a glimpse of the broad impact the Agency has on not-for-profit organizations and manufacturing companies in all five boroughs,” said Robert C. Lieber, President of New York City Economic Development Corporation, which administers NYCIDA. “These projects will keep valued service providers and companies in New York City, while helping to create jobs and spur private investment.”
NYCIDA approved approximately $125 million in tax-exempt bond financing and about $3.2 million in mortgage recording tax benefits to Polytechnic University, the nation’s second oldest private engineering university. The organization will use bond proceeds to refund existing NYCIDA bonds used for renovation, acquisition and construction of various campus facilities. Funds will also be used to refinance about $6 million in debt used to finance construction of the Dibner building on its main campus. The total project cost is expected to be the same as the issuance. The transaction will allow Polytechnic to continue providing uninterrupted, quality services to its undergraduate and graduate engineering students and will retain 450 full-time jobs over the next three years.
NYCIDA approved about $10 million, about $4.4 million in mortgage recording tax and real estate tax benefits and about $77,000 in sales tax exemptions to help S&L Aerospace Metals, LLC acquire, renovate and expand a 41,000-square-foot facility in the College Point section of Queens. The manufacturer of machined assemblies for the aerospace industry currently operates out of two separate facilities in Maspeth, Queens. The new facility will allow the company to expand its production capabilities and increase its operational efficiency through consolidation. The company explored several locations outside New York City, but NYCIDA benefits will allow them to remain. The company will retain 87 jobs and is expected to create 23 new jobs over the three years as a result of the $10.5 million project. In addition, the company may also qualify for about $115,000 in discounted energy from the Business Incentive Rate program and about $211,000 from the City’s Energy Cost Savings Program.
NYCIDA approved up to $50 million in tax-exempt bond financing and about $1.4 million in mortgage recording tax benefits for the United States Fund for UNICEF, a not-for-profit organization established to support the work of United Nations Children’s Fund (UNICEF). The United States Fund will use bond proceeds and benefits to acquire, renovate and equip three commercial condominiums in one building in Lower Manhattan that will serve as its new national headquarters. The financing will allow the organization to expand its operations and staff over the next three years adding more than 21 jobs to its current staff of 169.
NYCIDA also approved an additional resolution that allows for the issuance of $650 million in refunding Liberty Bonds in connection with the permanent financing of the One Bryant Park tower. Liberty Bonds were issued in 2004 for the construction of a 51-story, 2.1 million square-foot building. The tower, which will serve as Bank of America’s headquarters for its NYC operations, is expected to generate substantial fiscal revenues and economic activities that will benefit all of New York City, generating City tax revenue annually of about $4.88 billion over the next 50 years, creating 8,400 construction jobs and housing and more than 6,600 tenant jobs. The refunding bond issuance is part of the permanent financing of the building and will result in no new Liberty Bond allocation. Construction of the $2.2 billion tower, which includes $790 million for Bank of America’s tenant improvements and specialty work necessary to build the Bank’s trading floor, began in August 2004 and is expected to be ready for occupancy in the second quarter of 2008.
“By helping Bank of America build this state-of-the-art global securities trading headquarters, NYCIDA is helping strengthen the City's position as the premier location for the financial services industry,” said NYCIDA Executive Director Kei Hayashi.
The NYCCRC Board approved approximately $50 million in tax-exempt bond financing for Cobble Hill Health Center, Inc., a Brooklyn-based skilled nursing organization. The organization will use bond proceeds to finance the renovation of an existing skilled nursing facility, as well as the acquisition and renovation of a 15,000-square-foot new adult day care facility in Bushwick. The proceeds will also be used to refinance the existing mortgage debt originally incurred in 1995 for capital improvements to the Henry Street facility. The $70.8 million project will allow the organization to expand its services to better fulfill its mission and will retain more than 490 full-time employees.
The New York City Industrial Development Agency (NYCIDA) provides financing assistance to businesses, including small industrial and manufacturing companies and not-for-profit organizations. NYCIDA is a conduit agency that issues tax-exempt industrial revenue bonds to assist eligible commercial, industrial, not-for-profit and other qualified entities to finance expansion opportunities. NYCIDA also offers qualified companies abatements on sales, real estate and mortgage taxes. To request information and details on NYCIDA programs, call (212) 312-3600 or e-mail [email protected].
The New York City Capital Resources Corporation (NYCCRC) provides financing assistance to not-for-profit organizations. NYCCRC is a conduit agency that will issue tax-exempt bonds backed by direct loans to participating entities, lowering transaction costs and make smaller transactions feasible for not-for-profit and other qualified entities to finance expansion opportunities. To request information and details on NYCIDA programs, call (212) 312-3600 or e-mail [email protected].