April 16, 2013 -- County Executive Robert P. Astorino Tuesday announced that the county's Local Development Corporation (LDC) has already approved low-cost and tax-exempt financing for four Westchester non-profits to help with projects the four are undertaking or have undertook. The approvals come approximately 13 hours after the Board of Legislators, in a 16-1 vote, ratified Astorino's creation of the LDC.

"The LDC can save non-profits a great deal of money in financing costs, and it can do so at no risk, and at no cost, to taxpayers. By any measure, this is a win-win for Westchester and judging by the four projects approved today, there is a great and growing demand for this tremendous resource," said Astorino.

The four projects approved were:

• Kendal on Hudson, a continuing care facility (Sleepy Hollow) – $64,330,000 to refinance existing debt and use some of the savings to make capital improvements to the existing facility. This transaction will result in $100,000 annual savings for the next 30 years.
• Northern Westchester Hospital (Mt. Kisco) – $43,000,000 in low-cost financing to design, construct and equip the expansion of a surgical suite. Improvements include six new state-of-the-art operating suites and 13 pre/post anesthesia care unit beds.
• Phelps Memorial Hospital (Sleepy Hollow) – $16,000,000 in low-cost financing for the  construction, renovation and equipping of an approximately 20,000 square-foot surgical suite on the third floor of the existing Medical Services Building.  The financing will also be used for the acquisition, construction and equipping of a 200-foot long by 9-foot wide enclosed corridor constructed as a bridge connecting the surgical suite to the third floor of the main hospital building.
• Iona College (New Rochelle) –$5,000,000 in low-cost financing to pay down existing debt that was used for the acquisition and improvements to five faculty residences.

"This is only one day and we already have $128 million in low-cost and tax-exempt financing to help our non-profits create jobs and improve services, all at no cost and no risk to taxpayers. This is just the beginning," said Astorino.

Astorino established the county LDC in January of 2012 to fill a void that has existed since January 2008, when the state's Industrial Development Agencies, including Westchester's, lost the power to authorize 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, one by the legislative majority conference, one by the legislative minority conference and a representative from labor.

Through the LDC, non-profits are able to access tax-exempt bonds in the bond market to help pay for their projects or to refinance. 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.

"The LDC provides a way to preserve and expand services without any financial obligation to county taxpayers," said Stephen Hunt, Chairman of the Local Development Corporation (LDC). "As a lifelong resident of Westchester County I am proud to be part of such a valuable financial tool to help strengthen our community."

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 .