New York, NY – July 25, 2012 – (RealEstateRama) — Build NYC Resource Corporation (Build NYC) today approved approximately $75.6 million in tax-exempt financing to assist four New York City non-profits. Seaview Senior Living Housing Development Fund Corporation, a not-for-profit organization formed by The Metropolitan Council on Jewish Poverty and Leewood-Seaview, was approved for approximately $33.6 million in tax-exempt bonds. The proceeds from the bonds will be used by Seaview to construct a 103,000 square foot 188-bed assisted living and memory care facility and an 11,500 square foot building for social and recreational use by residents, as well as to renovate a historical landmark building for visitors . The Seaview development, to be located on a 15-acre site on Brielle Avenue between Walcott Avenue and Rockland Avenue in the Willowbrook neighborhood, is expected to break ground in fall 2012, and will create 84 new jobs once open. The three additional projects approved for tax-exempt financing were All Stars Project, Inc., The Browning School, and HealthCare Chaplaincy, Inc.
Build NYC also approved the transaction proposed by Hutch Tower Two LLC which will construct the core and shell, as well as a portion of the tenant improvements, of a 280,000 square foot office building to be located within the Hutchinson Metro Center in the Bronx. This transaction will allow Build NYC to confer a mortgage recording tax exemption of approximately $1.4 million to be passed through to Montefiore Medical Center, which will be leasing the entire building.
“With five more projects assisted this month, Build NYC continues to distinguish itself as a critical resource for City non-profits looking to reduce costs and finance new expansion projects,” said Build NYC Chairman Seth W. Pinsky. “In particular, the financing approved for the Seaview Senior Living Housing Development marks an extraordinarily important milestone for this project, which will soon greatly benefit Staten Island’s growing senior community.”
“Met Council and Seaview Senior Living Corp are very pleased and fortunate to be working with the NYC Economic Development Corp (EDC) on the issuance of over $30 million in Build NYC Bonds for the construction of 188 affordable, assisted living beds on Staten Island,” said Met Council CEO William E. Rapfogel. “The Seaview project is the first of its kind and the product of many years of work in partnership with EDC, the NY City Council, and our team of developers, architects, financial consultants and other professionals. We look forward to beginning construction this fall and, most importantly, to providing truly affordable safe housing for a vulnerable under-served population.”
“Staten Island is in much need of senior housing for our growing senior population. The vote today by Build NYC will help the Seaview Senior Housing project become a reality. After many delays it is heartwarming to me that this project is moving forward,” said Borough President James P. Molinaro.
All Stars Project, Inc., located at 543 West 42nd Street, is a not-for-profit organization that provides arts and cultural education activities to underserved youth. All Stars was approved for approximately $11 million in tax-exempt financing to refinance existing debt.
The Browning School, a not-for-profit private preparatory school for boys, was approved for up to approximately $11 million in tax-exempt financing to finance the renovation and expansion of the School’s main facilities at 52 East 62nd Street. The renovation and expansion of the school will include a lower level expansion to accommodate a new cafeteria, an upgraded lobby, library, technology center, science lab and art studio. The renovation and expansion project is anticipated to commence in June 2012 and is scheduled to be completed by August 2014.
HealthCare Chaplaincy, Inc., a not -for-profit organization providing services and programs relating to the research, education and practice of innovative palliative care, was approved for up to approximately $20 million in tax-exempt financing which will be used to finance the construction, renovation, furnishing and equipping of condominium units comprising approximately 51,400 square feet of office space and parking facilities located within an approximately 195,000 square foot building to be constructed at 261 South Street in Lower East Side. The facilities will include the organizations’ educational, research, clinical practice and administrative facilities, and a geriatric focused outpatient health care facility to be leased to Beth Israel Medical Center. In addition to the facilities, the building will house a 120-unlt assisted living residence for palliative care patients, providing comprehensive palliative care services and programs. The Building will be known as the National Center for Palliative Care Innovation and seek a LEED certification.
NYCIDA also today approved assistance for two projects. ERY Tenant, LLC, a joint venture between The Related Companies, L.P. and Oxford Properties Group Inc., was approved for approximately $106 million, over the next 19 years, in property tax reductions as part of a planned investment of $1.268 billion to build a new 1.84 million square foot, LEED certified, class-A office tower in Hudson Yards. The development will support approximately 5,000 jobs, and create approximately 3,750 construction jobs. Overall, the project will provide an economic benefit to the City worth over $500 million. In 2006, NYCIDA’s board unanimously approved an amendment to its Uniform Tax Exemption Policy (UTEP) to help spur future development at Hudson Yards by allowing for some property tax exemptions for all eligible projects in the area. The UTEP for Hudson Yards provided that the first 5 million square feet of development (west of 10th Avenue) could receive a 40% reduction in property tax payments phasing out over 19 years.
M.Fried Store Fixtures Inc., a display and fixture importer, distributor and installer; and Sturdy Store Displays Inc., a display manufacturer, plan to invest approximately $11 million– with the assistance of approximately $4.1 million in real-estate and sales-tax exemptions–to renovate and acquire an approximately 150,000 square foot facility at 101 Varick Avenue Bryant Avenue in Brooklyn. The project will result in the creation of two new jobs, and the retention of 110 existing jobs.
New York City Economic Development Corporation is the City’s primary vehicle for promoting economic growth in each of the five boroughs. NYCEDC’s mission is to stimulate growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City’s competitive position. NYCEDC serves as an advocate to the business community by building relationships with companies that allow them to take advantage of New York City’s many opportunities. Find us on Facebook or follow us on Twitter, or visit our blog to learn more about NYCEDC projects and initiatives.
About Build NYC
The Build NYC Resource Corporation (Build NYC) is a conduit bond issuer administered by NYCEDC and assists qualified not-for-profit institutions and other entities in obtaining tax-exempt and taxable bond financing. To request information on Build NYC, call (212) 312-3600 or e-mail info (at) nycedc (dot) com.
The New York City Industrial Development Agency (NYCIDA) is administered by NYCEDC and provides financing assistance to businesses, including small industrial and manufacturing companies. NYCIDA is a conduit agency that issues tax-exempt industrial revenue bonds to assist eligible commercial, industrial, and other qualified entities to finance expansion opportunities. NYCIDA also offers qualified companies abatements on sales, real estate and mortgage taxes. To request information and details on NYCIDA programs, call (212) 312-3600 or e-mail info (at) nycedc (dot) com.
Patrick Muncie/Kyle Sklerov