Subsidy Alert: March 2012

Thursday, February 16, 2012

In the public notices this month: 1000 Dean LLC, a business incubator operator; Baco Enterprises Inc.; East Gun Hill Road Food LLCHalmark Architectural Finishing Corp; United Jewish Appeal-Federation of Jewish Philanthropies of New York, Inc; Fordham University; and Manhattan College.

To learn how the Board of Directors voted on these projects, see the agency "board books" here.

Public hearing of the New York City Industrial Development Agency held on Wednesday March 7, 2012. 

 at:110 William Street, 4th Floor, New York, New York 10038 [Fulton St. subway stop]

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.

We have provided summaries for both IDA and BuildNYC projects below. We have posted links to all available project materials and cost/benefit analyses below. We encourage anyone with concerns or comments about these proposals to attend the hearing and provide input on particular projects to the members of the IDA board. Written testimony can be submitted to: New York City Industrial Development Agency, Attn: Ms. Frances Tufano, 110 William Street, 5th Floor, New York, New York 10038, or you can call (212) 312-3598 to notify the Agency if you intend to make a statement. Companies are often pulled from the docket at the last moment, so call to confirm that the company you are interested in will be presented. If you plan to speak on any of these projects, please let GJNY know: 212.721.7996 or gjny (at) goodjobsfist.org.

IDA Projects

Download the original IDA public hearing notice.

Bronx

Straight lease (Industrial Incentive Program) transaction for Baco Enterprises Inc., a steel fabricator, in connection with the acquisition, demolition, construction, renovation, equipping and/or furnishing of an approximately 7,500 square foot facility on an approximately 7,500 square foot parcel of land located at 630 Worthen Street on Tax Block 2765, Lot 46 in Bronx, New York 10474. The financial assistance proposed to be conferred by the Agency will consist of payments in lieu of City real property taxes, deferral 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 Fuertes Gun Hill Road LLC, on behalf of East Gun Hill Road Food LLC, a supermarket operator, in connection with the acquisition, construction, renovation, equipping and/or furnishing, and the expansion of (i) an approximately 16,000 square foot facility located on an approximately 31,000 square foot parcel of land located at 801-849 East Gun Hill Road, Bronx, New York 10467, being Block 4670 and Lot 5 (“Parcel 1”), and (ii) an approximately 3,000 square foot facility located on an approximately 7,000 square foot parcel of land located at 3501 Bronxwood Avenue, Bronx, New York 10469, being Block 4670, Lot 2 and adjacent to Parcel 1. The financial assistance proposed to be conferred by the Agency will consist of payments in lieu of City real property taxes, deferral from City and State mortgage recording taxes and exemption from City and State sales and use taxes.

Brooklyn

Straight lease (Developer Incentive Program) transaction for 1000 Dean LLC, a business incubator operator, in connection with the acquisition, renovation, equipping, and/or furnishing of an approximately 156,102 square foot facility located on an approximately 51,945 square foot parcel of land located at 1000 Dean Street, Brooklyn, New York 11238. The financial assistance proposed to be conferred by the Agency will consist of deferral 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 a to-be-formed entity, on behalf of Halmark Architectural Finishing Corp, an applicator of architectural coatings to metal extrusions, panels, doors and window assemblies, and other fabricated parts used mainly in the construction industry, in connection with the acquisition, construction, renovation, equipping and/or furnishing of an approximately 10,700 square foot facility located on an approximately 12,000 square foot parcel of land located at 353 Stanley Avenue, Brooklyn, New York 11207. The financial assistance proposed to be conferred by the Agency will consist of payments in lieu of City real property taxes, deferral from City and State mortgage recording taxes and exemption from City and State sales and use taxes.

Manhattan

Approximately $25,000,000 civic facility revenue bond transaction (a reissuance with respect to an interest rate conversion of Series 2004B bonds) for the benefit of United Jewish Appeal-Federation of Jewish Philanthropies of New York, Inc., a New York not-for-profit corporation, in connection with the renovation, equipping and/or furnishing of a portion of an approximately 252,000 square foot condominium facility, on an approximately 17,158 square foot parcel of land, located at 130 East 59th Street, New York, New York. The financial assistance proposed to be conferred by the Agency will consist of such bond financing interest rate conversion.


BuildNYC Projects

Download the original BuildNYC public hearing notice.

Approximately $50,000,000 triple tax-exempt 501(c)(3) refunding bonds (“Build NYC Bonds”) transaction for the benefit of Fordham University (the “Institution”), a not-for-profit, education corporation chartered under the laws of the State of New York, and exempt from federal taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, as borrower. The Institution owns and operates a functionally integrated educational institution including the following major campuses: the Rose Hill Campus, located at 441 East Fordham Road, Bronx, New York, and the Lincoln Center Campus, located at 140 West 62nd Street, Manhattan, New York. Of the Build NYC Bonds, approximately $33,310,000 are allocable to the Rose Hill Campus, and approximately $16,690,000 are allocable to the Lincoln Center Campus. Proceeds from the Build NYC Bonds together with other funds of the Institution will be used by the Institution to (1) redeem a portion of the outstanding Dormitory Authority of the State of New York (“DASNY”) Fordham University Insured Revenue Bonds, Series 2002, the proceeds of which, together with other funds of the Institution were used to finance the following project components: (a) university-wide renovation, equipping and repair of, and infrastructure improvements to, various facilities at the Institution’s Rose Hill Campus and Lincoln Center Campus, including the upgrading of academic space in the Lowenstein Building, (b) construction of an approximately 55,000 square foot five-story academic building located in the south central portion of the Rose Hill Campus, (c) construction of a three-story approximately 397,877 square foot parking garage to be located at the southeastern corner of the Rose Hill Campus and (d) refunding of certain of DASNY’s Fordham University Insured Revenue Bonds, Series 1994, the proceeds of which were used to: (i) finance the construction of an approximately 240,000 square foot library facility at the Rose Hill Campus, (ii) refund of a portion of DASNY’s Fordham University Insured Revenue Bonds, Series 1990 (the “1990 Bonds”), the proceeds of which were used to finance the construction of a 20-story, 885 bed, approximately 290,000 square foot apartment-style dormitory building for students at the Lincoln Center Campus, and (iii) refund of a portion of DASNY’s College and University Variable/Fixed Rate Insured Revenue Bonds 1985 “Pooled Capital Program”, Fordham University Series A Bonds (the “1985 Bonds”), the proceeds of which were used to finance the construction of a new dormitory facility at the Rose Hill Campus, located on the western perimeter of the Rose Hill Campus and comprised of two four-story buildings, (2) redeem a portion of the outstanding DASNY Fordham University Insured Revenue Bonds, Series 1998, the proceeds of which, together with other funds of the Institution were used to finance the following project components: (a) construction of a new multiple-building student dormitory located at the Rose Hill Campus with 575 bed and approximately 190,000 square feet, (b) capital renovations and repairs to the educational, administrative and athletic facilities of the Institution at both the Rose Hill Campus and the Lincoln Center Campus, (c) refunding of a portion of the 1990 Bonds; and (d) refunding of a portion of the 1985 Bonds, and (3) pay certain costs related to the issuance of the Build NYC Bonds. All of the facilities described in this notice are owned and operated by the Institution. The financial assistance proposed to be conferred by the Corporation will consist of such tax-exempt bond financing and deferral from City and State mortgage recording taxes.

Approximately $26,115,000 tax-exempt 501(c)(3) refunding bonds (“Build NYC Bonds”) transaction for the benefit of Manhattan College (the “Institution”), a not-for-profit, education corporation chartered under the laws of the State of New York, and exempt from federal taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, as borrower. Proceeds from the Build NYC Bonds, together with other funds of the Institution, will be used by the Institution to: (A) redeem the outstanding Dormitory Authority of the State of New York (“DASNY”) Bonds (Manhattan College Insured Revenue Bonds, Series 2000), the proceeds of which, together with other funds of the Institution were used (1) to finance a portion of the cost to construct, furnish and equip an expansion space and provide new space for the Institution’s Admissions Department into the Institution’s Library, re-named the O’Malley Library building located at 4531 Manhattan College Parkway, Bronx, New York 10471 and (2) to advance refund the then outstanding DASNY Bonds (Manhattan College Insured Revenue Bonds, Series 1992), the proceeds of which, together with other funds of the Institution, were used (a) to refund the then outstanding DASNY Bonds (Manhattan College Insured Revenue Bonds, Series 1989), the proceeds of which were used to finance the East Hill Dormitory building, re-named Horan Hall, located at 4381 Post Road, Bronx, New York 10471, (b) to refund the then outstanding DASNY Bonds (Manhattan College Insured Revenue Bonds, Series 1984), the proceeds of which were used to finance the Research and Learning Center building located at 3840 Corlear Avenue, Bronx, New York 10463, and (c) to refund a then outstanding commercial bank loan which was used to finance the Jasper Hall dormitory building located at 4485 Manhattan College Parkway, Bronx, New York 10471; and (B) to pay certain costs related to the issuance of the Build NYC Bonds. All of the facilities described in this notice are owned and operated by the Institution. The financial assistance proposed to be conferred by the Corporation will consist of such tax-exempt bond financing and deferral from City and State mortgage recording taxes.