Subsidy Alert: June 2012

This month the public hearing will include projects being reviewed by the IDA, as well as the NYC Economic Development Corporation's new local development corporation, BuildNYC Resource Corporation. BuildNYC extends benefits to qualified non-profits through tax-exempt and taxable bond financing.

• Straight lease (Industrial Incentive Program) transaction for the benefit of a to-be-formed entity on behalf of B.C.S. International Corporation, a warehouser, packager and distributor of groceries, in connection with a facility located at 28 Varick Avenue, Brooklyn, New York 11237 and 526 Johnson Avenue, Brooklyn, New York 11237. The financial assistance proposed consist of payments in lieu of City real property taxes, exemption from City and State mortgage recording taxes and exemption from City and State sales and use taxes.
• Straight lease (Industrial Incentive Program) transaction for Garic Enterprises LLC for the benefit of Carnegie Linen Services, Inc. and Carnegie Valet Cleaning Corp., New York corporations engaged in industrial laundry cleaning, in connection with a facility located at 885 East 138th Street, Bronx, New York 10454. The financial assistance proposed consists of payments in lieu of City real property taxes, exemption from City and State mortgage recording taxes and exemption from City and State sales and use taxes.
• Straight lease (Industrial Incentive Program) transaction for the benefit of The Brooklyn Union Gas Company (d/b/a National Grid New York), an electric and gas utility company, in connection with the acquisition and/or leasing, installation of machinery and equipment and renovation of space located at 371 Greenpoint Avenue, Brooklyn, New York 11222. The financial assistance proposed to be conferred by the Agency will consist of payments in lieu of City real property taxes.
• Straight-lease (Industrial Incentive Program) transaction for Wolfsgleek, LLC, a real estate holding company, for the benefit of Lobonav Corp., a New York corporation (d/b/a Pro Audio Star), a wholesale distributor of professional audio equipment, in connection with a building located at 217 Russell Street (also known as 225 Russell Street), 758 Humboldt Street and 762 Humboldt Street, Brooklyn, New York 11222. The financial assistance proposed consist of payments in lieu of City real property taxes, exemption from City and State mortgage recording taxes and exemption from City and State sales and use taxes.
• Straight-lease (Industrial Incentive Program) transaction for a to-be-formed real estate holding entity for the benefit of CookiesKids.com Inc., a New York corporation engaged in e-commerce, warehousing and distribution of children’s clothing, in connection with the acquisition, renovation, furnishing and/or equipping of an approximately 98,000 square foot building located at 550 East 132nd Street, Bronx, New York 10454. The financial assistance proposedconsist of payments in lieu of City real property taxes, exemption from City and State mortgage recording taxes and exemption from City and State sales and use taxes.
• Straight lease (Industrial Incentive Program) transaction for the benefit of 1635 Lex Realty Corp. on behalf of ReyCo Supermarkets LLC, a retail supermarket, in connection with a facility located at 1635 Lexington Avenue, New York, New York 10029. The financial assistance proposed to be conferred by the Agency will consist of payments in lieu of City real property taxes, exemption of City and State mortgage recording taxes and exemption from City and State sales and use taxes.
• Straight lease (Industrial Incentive Program) transaction on behalf of Y-M-G-Y Development Group, Inc., a retail supermarket, in connection a facility  located at 49-01 Beach Channel Drive, Queens, New York 11691. The financial assistance proposed will consist of payments in lieu of City real property taxes, exemption of City and State mortgage recording taxes and exemption from City and State sales and use taxes.
• Approximately $32,000,000 bond transaction for the benefit of a to-be-formed entity on behalf of Danforth Victoria Development Partners, LLC, a real estate developer. Proceeds from the bonds will be used for the acquisition, construction, renovation and furnishing of an approximately 127,000 square foot hotel, as part of a larger approximately 340,000 square foot mixed use development on an approximately 20,000 square foot parcel of land located at 233 West 125th Street, New York, New York 10027 (Block 1931 p/o Lot 17). The financial assistance proposed to be conferred by the Agency will consist of such bond financing and exemption from City and State mortgage recording taxes.
• Approximately $145,000,000 tax-exempt refunding bonds transaction for the benefit of Aero JFK, LLC (the “Company”), a single-asset, Delaware limited liability company established for the purpose of renting space for air cargo and aviation support functions at John F. Kennedy International Airport (the “Airport”), in two facilities located at the intersection of JFK Expressway and South Cargo Road, Queens, New York 11430. Proceeds from the bonds, together with other funds of Company, will be used by the Company to: (I) refund the outstanding New York City Industrial Development Agency Special Airport Facility Revenue Bonds (Airis JFK I, LLC Project at JFK International Airport, Series 2001A) in the approximate outstanding amount of $140,450,000, the proceeds of which, together with other funds of the Company, were used to finance the costs of (i) the construction of an approximately 262,515 square foot air cargo and aircraft related service facility at a site known as Tract 8 in Cargo Area B at the Airport, the construction of site improvements, and the acquisition and installation of equipment to constitute fixtures in connection therewith, all for use in providing air cargo and aviation support facilities to tenants conducting aviation related activities, and (ii) the construction of an approximately 172,100 square foot air cargo and aircraft related service facility at a site known as Tract 9A in Cargo Area B at the Airport, the construction of site improvements, and the acquisition and installation of equipment to constitute fixtures in connection therewith, all for use in providing air cargo and aviation support facilities to tenants conducting aviation related activities; (II) fund any required debt service reserve funds; and (III) pay certain costs related to the issuance of the bonds. The financial assistance proposed to be conferred by the Agency will be such tax-exempt bond financing and exemption from City and State mortgage recording taxes.

BuildNYC projects (download the original public hearing notice):

• Approximately $15,500,000 tax-exempt revenue bond transaction for the benefit of HealthCare Chaplaincy and HCC Network, Inc. (the “Organizations”), not-for-profit organizations located at 270 South Street, New York, New York 10002. The Facilities described in this notice, which will be known as the National Center for Palliative Care Innovation, will be owned by the Organizations and operated for the purpose of providing integrated comprehensive palliative care with persons with serious progressive illnesses. The financial assistance proposed to be conferred by the Corporation will consist of such tax-exempt bond financing and exemption from the City and State mortgage recording taxes.
• Approximately $2,915,000 tax-exempt refunding and revenue bonds transaction for the benefit of Life’s W.O.R.C., Inc. (the “W.O.R.C.”), a not-for-profit organization providing residential and community services to developmentally disabled individuals of all ages. The organization maintains various sites in Queens.
• Approximately $15,000,000 tax-exempt revenue bond transaction for the benefit of The New York Foundling Charitable Corporation (“NYFCC”), a not-for-profit corporation. The organization has a school building located at 170 Brown Place, Bronx, New York 10454 (also known as the Mott Haven Academy Charter School).
• Approximately $3,500,000 bond transaction, $1,500,000 tax exempt and $2,000,000 taxable, for the benefit of The Gateway School of New York (“Gateway”), an independent, not-for-profit private school chartered under the laws of the State of New York serving students with learning disabilities and their families. The school's facility is located at 211 West 61st Street, New York, New York 10023.
• Approximately $18,500,000 tax-exempt bond transaction for the benefit of GSNY Properties, Inc., a not-for-profit corporation (“GSNY”). The sole member of GSNY is Gateway, an independent, not-for-profit private school serving students with learning disabilities and their families (The Gateway School of New York Project, Series 2007B)The proceeds of the taxable loan and Series 2007B bonds were used for the acquisition, renovation and equipping of condominium units located at 211 West 61st Street, New York, New York 10023. 
• Approximately $31,000,000 tax-exempt refunding bonds transaction for the benefit of the Royal Charter Properties, Inc. (“Royal Charter”), a not-for-profit corporation serving the needs of employees, staff, visitors and patients of The New York and Presbyterian Hospital. Proceeds from the bonds, together with other funds of Royal Charter, will be used by Royal Charter to (i) currently refund the outstanding Agency Parking Facility Revenue Bonds (Royal Charter Properties, Inc. - The New York and Presbyterian Hospital Leasehold Project, Series 2001) in the approximate amount of $26,800,000, the proceeds of which, together with other funds of Royal Charter, were used to finance the renovation and construction of an expansion of a parking garage located at 115-143 Fort Washington Avenue, New York, New York 10032 (Block 2136, Lot 245), which, as renovated and expanded, is an approximately 501,375 square foot, ten level (including roof), 1,950 space parking garage; (ii) fund any required debt service reserve funds; and (iii) pay certain costs related to the issuance of the bonds.