Legislature approves LDC for nonprofit win
Westchester officially has a Local Development Corp.
At their April 15 Westchester County Board of Legislators meeting, lawmakers approved the creation of an LDC, 16-1, ending months of conflict between the board and County Executive Robert P. Astorino over how much power the LDC gave Astorino.
An LDC issues tax-free, low-interest bonds to nonprofit organizations. Astorino created an LDC in January 2012, after the Westchester County Industrial Development Agency lost bonding power in 2008.
The approved LDC will have seven governing board seats, including seats appointed by the majority and minority county legislative leaders and a seat by a labor representative.
Astorino called the passage a “win-win” for Westchester.
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,” Astorino said in a statement. “We”™re excited to help and there are numerous hospitals, colleges and other nonprofits lining up to take advantage of this tremendous resource and in the process help create more jobs.”
The LDC, which had already been meeting, but which lacked the legal authority to act, on April 16 quickly formally approved four projects totaling $128 million.
Kendal on Hudson in Sleepy Hollow received $64.3 million to refinance existing debt and make capital improvements, saving the continuing care facility $100,000 over the next 30 years.
Northern Westchester Hospital in Mt. Kisco received $43 million to design, construct and equip the expansion of a surgical suite.
Phelps Memorial Hospital in Sleepy Hollow received $16 million for the construction and renovation of a 20,000-square-foot surgical suite. The financing will also allow Phelps to construct a corridor to connect the surgical suite to the third floor of the hospital building.
Iona College in New Rochelle received $5 million to help pay down debt.
“This is just the beginning,” Astorino said.
Marsha Gordon, president and CEO of the Business Council of Westchester, said the Business Council will hold a meeting for its nonprofit members in May to educate them about the LDC and what it offers.
The LDC “will create numerous construction and permanent jobs, and millions of dollars of capital investment and improved facilities throughout the county,” Gordon said in a prepared statement. “It represents another bridge to positive growth in Westchester.”
Chairman Ken Jenkins (D-Yonkers) praised the collaboration of the County Legislature and Astorino in implementing the LDC.
“Both the (legislative) board and the administration shared a common goal to create a solid law that will promote smart growth around the county and provide short- and long-term jobs for residents,” Jenkins said in a statement. “To finalize this bill, a good deal of dialogue and deliberation took place, which proves again that we can effectively work together in the best interests of our residents and business owners.”
Business groups have cheered the approval of the LDC, saying it will create jobs and help grow the Westchester economy.
“An LDC in this county will open doors for the nonprofit community to have access to the same low-interest financing opportunities that for-profit organizations enjoy,” said Marissa Brett, executive director of the Westchester County Association”™s The Blueprint for Westchester. She echoed Astorino, calling the LDC “a win-win for Westchester.”
The infighting that had delayed the LDC”™s formation centered on its board, with the number of members finally set at seven. Astorino had originally favored a three-member board.