Westchester OKs $340M in bonding for medical center and Sarah Lawrence College

Westchester County”™s Local Development Corp. plans to provide $300 million in bond financing for the Westchester County Healthcare Corp., which is the public authority that governs the Westchester Medical Center in Valhalla.

In addition, the LDC will be providing $40 million in bond financing and a $546,000 mortgage recording tax exemption for Sarah Lawrence College in Yonkers. The LDC’s board of directors unanimously approved both financing arrangements.

WMC Health westchester medical — The Ambulatory Care Pavilion. Photo by Bob Rozycki

The medical center will use the proceeds to refinance its outstanding debt in addition to devoting $39 million to fund capital projects and new equipment at the Valhalla campus. This is the second time the LDC is providing bond financing for the hospital. In 2016, it approved $300 million for the construction of the hospital”™s 280,000-square-foot Ambulatory Care Pavilion that opened last year.

Sarah Lawrence College will use the bond proceeds to: refund $5 million in bonds the LDC issued to the college in 2016; provide $8.5 million to pay for potential financial impacts of Covid-19; cover $10 million in new initiatives and existing operations; and reduce its reliance on a line of credit.

Westchester County Executive George Latimer said, “As we begin to reemerge from the Covid-19 pandemic, it is critical that that we continue to support our not-for-profit sector. The Westchester Medical Center and Sarah Lawrence College play an important role in the health and vitality of Westchester County”™s economy.”

Joan McDonald, who is chair of the LDC in addition to being the county’s director of operations, praised both the medical center and Sarah Lawrence for contributing so much to the high quality of life in Westchester.

The county’s LDC was created in 2012 to promote economic development through tax-exempt financing for nonprofits and public benefit corporations in Westchester. Since its inception, it has helped entities in those categories reap more than $400 million in financing through tax-exempt bonds.

The LDC’s bylaws allow it to provide financial and other assistance for projects undertaken by nonprofits and public benefit corporations through issuing or refunding bonds, notes or other obligations. It also has the power to authorize exemptions from real estate property taxes, mortgage recording taxes and sales or use taxes.