Westchester County's Local Development Corporation (LDC) recently approved a total of $44 million in tax-exempt financing for projects at Northern Westchester Hospital and the Rippowam Cisqua School, the first two non-profits to be approved for funding since the LDC was incorporated in January.  

The incentives, which carry no risk of liability for the county or taxpayers, will help to drive expansion and renovation projects as well as create quality construction and permanent jobs.

"The LDC is an important tool that encourages capital investment and aids job creation for our non-profits, a key economic engine in Westchester," said County Executive Robert P. Astorino. "And this comes at no risk to the county or to taxpayers. The sole purpose of Westchester's LDC is to help non-profits gain access to critical tax-free financing."

Astorino established the LDC to help fill a void that has existed since January 2008, when the state's Industrial Development Agencies, including the county's, lost the power to authorize bonds on behalf of non-profit agencies.

Created under the state's Not-for-Profit Corporation Law, the LDC consists of a board that reviews requests from non-profit agencies seeking tax-free bonds and other financial incentives. The LDC also provides an opportunity to refinance existing debt at lower rates.

At Northern Westchester Hospital in Mount Kisco, the LDC is issuing a total of approximately $36 million in tax-free bonds for a project estimated to cost up to $42 million. The project includes the design, construction and equipping of a surgical suite expansion with six new operating rooms and 13 universal PACU (pre/post-anesthesia care unit) beds.

The project, which is expected to directly create approximately 29 new jobs and indirectly create numerous other patient care positions, will include $24 million in construction contracts and $10.7 million in machinery and equipment purchases, among other expenses.

"Our community recognizes the high quality, patient centered care provided at Northern Westchester Hospital," said Joel Seligman, President and CEO of Northern Westchester Hospital. "Patients can choose where to obtain their care, and the demand for our surgical services and expert physicians continues to rise. This funding will enable Northern Westchester Hospital to meet this growing patient demand, ensure that we remain technology leaders, and create jobs to sustain our community. We are excited to move ahead with this project and appreciate all of the support from our community leaders."

For Rippowam Cisqua, which has school facilities in Mount Kisco and Bedford, the LDC is issuing a total of $8 million in tax-free bonds. Of that, the school plans to use approximately $815,000 to renovate its athletic fields, which are used by both the school and community youth teams. The plan includes a new natural grass athletic field that will be used for elementary and middle school soccer, lacrosse and field hockey, in addition to resodding and irrigation work on all current fields.

The funding also covers $4.9 million to refinance an existing IDA bond that was issued in 1999, plus another $1.7 million to refinance existing bank loans – all of which will result in savings for the school.

Access to the LDC tax-exempt funding is expected to save $80,000 to $100,000 a year, according to school officials.

"The savings we will see as a result of this bond issuance will directly have a positive impact on the lives of our children," said Matthew Nespole, head of school. "Not only will the athletic fields be a great resource for both our students and the community, but the money saved will be invested in the curriculum, teachers, professional development and other elements that have a real effect on learning."

Both LDC resolutions will be sent today to the Board of Legislators for prompt approval.

"Prompt action by the Board of Legislators can turn these important projects for two vital and long-standing Westchester institutions into a reality," said LDC Board Chairman Stephen J. Hunt.