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02/06/2014 News Release Image

Westchester County’s Local Development Corporation (LDC) approved a resolution that will give Pace access to $98 million in tax-exempt bond financing for the renovation of its Pleasantville campus.

ASTORINO’S LDC SUPPORTS PACE UNIVERSITY WITH $98 MILLION

IN LOW-COST FINANCING FOR UPGRADE PROJECT

Improvement plan will create 600 high-wage construction jobs, boost county’s ‘intellectual capital’

 

            County Executive Robert P. Astorino today announced that the county’s Local Development Corporation (LDC) approved a resolution that will give Pace University access to $98 million in tax-exempt bond financing for the renovation of its Pleasantville campus, the most extensive improvement plan in the 50-year history of the campus. The project, which consolidates all aspects of the school’s Briarcliff campus to the Pleasantville campus, will help attract the brightest students from around the globe, revitalize the local economy and transform education in Westchester at no extra cost to taxpayers. This project will create 600 high-wage construction jobs and strive to source building materials from local businesses.

            “Pace’s renovation is exactly the kind of project the LDC was created to support,” said Westchester County Executive Robert P. Astorino. “It’s a win for everyone. At no cost to taxpayers, we’re able to help one of our great educational institutions broaden its reach and do what it does best.”

Pace is the county’s largest university and contributes approximately $64 million to the local economy through direct and indirect spending.  The county’s 13th largest employer, 75 percent of its employees and more than 20,000 of its alumni live in the county.

“This project will transform the Pace student experience. It will enable the University to continue to attract and retain excellent students and prepare them for successful careers in a highly competitive market,” said Bill McGrath, senior vice president and chief operating officer for Pace Westchester. “We could not have done this as quickly and at such a low cost without the Westchester LDC.”

The first stage of the project broke ground in the fall of 2013. Multiple components of the construction and renovation will happen concurrently and be completed by the end of 2016.

Before the LDC board voted to approve this signature project, McGrath shared the details of the plan:

·         Construction of two, four-story residence halls with a total of 760 beds and approximately 221,00 square feet.

·         The two buildings will incorporate “living learning” style communities with residential suites, faculty apartments, food service, classrooms and offices.

·         Renovation of the Kessel Student Center with a two- story addition totaling approximately 9,500 square-feet to accommodate a 200 dining-seat capacity and associated kitchen upgrades.

·         Upgrade and expansion of athletic facilities including a new 23,000 square-foot field house, a new softball field, new bleachers and re-surfaced fields.

·         Relocation and enhancement of the Environmental Center.

Special notes about the project:

·         Kirchhoff Consigli Construction Management, a Hudson Valley based firm, was selected to manage the construction of the environmental center complex, the residence halls and student center.

·         The Pleasantville Project will strive to use building materials or products that have been extracted as well as manufactured, within 500 miles of the project site, and closer where possible, thereby supporting the regional economy and reducing the environmental impacts resulting from transportation.

 “Making an investment in our universities is making an investment in our future,” said LDC Chairman Stephen J. Hunt. “We are preparing our young people today for the jobs of tomorrow. This is exactly what government should be doing: partnering with our institutions to provide what our businesses need most and that’s intellectual capital.”

The board also voted to give Kendal on the Hudson, a continuing care retirement community in Sleepy Hollow, $18 million in tax-exempt bond financing to support the renovation of its health center.

With the Pace Pleasantville and Kendal on the Hudson projects, the LDC will have leveraged $429 million in investments to Westchester non-profits helping six of the county’s largest hospitals and universities reduce their financing costs, expand their facilities and create more than 1400 new jobs.  There is no financial risk to county taxpayers.

Astorino established the county LDC in April 2013 to fill a void that had existed since January 2008, when the state's Industrial Development Agencies, including Westchester's, lost the authority to issue bonds on behalf of non-profit organizations.

Created under the state's Not-For-Profit Corporation Law, the LDC consists of a board that reviews requests from non-profits seeking tax-free bonds and other financial incentives. The board consists of seven individuals, four of whom are appointed by the county executive, two from the Board of Legislators (one by the legislative majority conference, one by the legislative minority conference) and a representative from labor.

The LDC provides non-profits access to millions of dollars in low-cost, tax-exempt bonds for the financing of job-creating construction projects. 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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