Jan. 12, 2012 -- To fill a gap left by an expired state law, Westchester County is forming a local development corporation (LDC) that will enable non-profit agencies located in the county to qualify to issue tax-free bonds and obtain other financial incentives, County Executive Robert P. Astorino announced today.

The LDC, created under the state's Not-for-Profit Corporation Law, will fill a void that has existed since 2008, when Industrial Development Agencies (such as the county's) lost the power to authorize bonds on behalf of non-profit agencies.

"It is time for us to act on this," said Astorino. "The state's failure to extend this power to the IDA has left a void that has gone on too long. This will help our non-profits, including schools and hospitals, get needed financing and other incentives, which will benefit the county as a whole. Doing this is particularly crucial, as so many of our agencies struggle to deal with financial challenges, while maintaining their high-quality services."

To create the LDC, the county will file a certificate of incorporation. The corporation will have up to five members on its board, which will review requests from non-profit agencies to qualify for the incentives.

"Money from incentives can then be used by the agencies for low-cost financing for capital projects, which in turn will help create jobs and strengthen the fabric of our communities," Astorino said. "This is smart government that Westchester shouldn't have to wait for any longer."

Astorino noted that many outstanding non-profit organizations in the county have benefited from financing arranged by the Westchester County's IDA, under the so-called "civic facility" provision of the state law that lapsed in January 2008. The bonds were issued by the non-profit agency. Neither the county nor county taxpayers were liable in any way for bond repayment. This situation does not change under the new proposal.

Astorino's initiative will provide the opportunity for the not-for-profits to refinance at current low interest rates

Collectively over the last decade about $120 million of tax-exempt bond financing had been authorized this way for capital projects for institutions such as the Boys & Girls Club of Northern Westchester, the YMCA of Central and Northern Westchester, the Clear View School (Association for Mentally Ill Children of Westchester), Schnurmacher Center for Rehabilitation and Nursing, the Banksville Independent Fire Company, Soundview Preparatory School, Northern Westchester Hospital, The Children's Village, The Hackley School, Guiding Eyes for the Blind and Mercy College.

The LDC's ability to provide tax-exempt bond financing and other incentives will create numerous construction and permanent jobs, and millions of dollars of capital investment and improved facilities throughout the county.