The war of words over the county’s attempts to run a local development corporation (LDC) continues.
The Westchester County Board of Legislators claimed on Friday that they still need to approve the formation of an LDC, five days after County Executive Rob Astorino said he did not need their approval and could run it himself, granting Northern Westchester Hospital access to $36 million in tax-exempt bonds to build new operating rooms.
The Board of Legislators had previously voted against Astorino’s LDC, claiming that it gave the county executive too much power.
According to the legislators, other counties like Nassau and Suffolk used Internal Revenue Service guidelines that call for legislator approval before LDCs are issued.
“Since County Executive Astorino proposed the formulation of an LDC in January, our open and transparent legislative process could have allowed for a reasonable and thoughtful debate on the creation of an LDC that will be responsive to the needs of Westchester’s residents and business owners while also following a prudent financial path that protects our taxpayers,” Chairman Ken Jenkins (D-Yonkers) said.
IRS guidelines say that for an LDC to issue tax-exempt bonds, the governing body must give its formal approval. An opinion by the LDC’s bond counsel Nixon Peabody said that the board’s participation is not necessary to approve funding requests.
