Astorino Announces $14 Million in Local Development Corporation Financing for Phelps Memorial Hospital

County Executive Robert P. Astorino Thursday announced that the county’s Local Development Corporation (LDC) approved a resolution that will give Phelps Memorial Hospital in Sleepy Hollow access to $14 million in tax-exempt bond financing towards the construction of a new 20,000 square-foot surgical suite at the existing Medical Services Building. The project also includes construction of a 200-foot long enclosed corridor bridge connecting the new surgical suite to the main hospital building.

“Thanks to the partnership between Phelps Memorial Hospital and the county’s Local Development Corporation,” said Astorino, “Westchester residents will have more access to outstanding healthcare and our talented workforce of medical professionals will have more opportunity to find good paying jobs.”

Before the board vote, Alfred DelBello, of DelBello, Donnellan, Weingarten, Wise & Wiederkehr, LLP, made a presentation to the LDC board on behalf of Phelps Memorial Hospital and explained how the plan will improve patient care by increasing efficiency and staff productivity, while creating 10 permanent medical professional jobs.

With the Phelps Memorial Hospital project, the LDC will have issued $246,425,000 in tax-exempt bonds to Westchester non-profits and helped create 774 jobs. There is no financial risk to county taxpayers.

Astorino established the county LDC to fill a void that had existed since January 2008, when the state's Industrial Development Agencies, including Westchester's, lost the authority to issue bonds on behalf of non-profit organizations.

Created under the state's Not-For-Profit Corporation Law, the LDC consists of a board that reviews requests from non-profits seeking tax-free bonds and other financial incentives. The board consists of seven individuals, four of whom are appointed by the county executive, one by the legislative majority conference, one by the legislative minority conference and a representative from labor.

The LDC provides non-profits access to millions of dollars in low-cost, tax-exempt bonds for the financing of job-creating construction projects. There is no financial risk to the county. The obligation for repaying the debt rests solely with the non-profit organizations. The LDC acts as a conduit to enable the non-profits to receive tax exempt status.

Any non-profit organization looking to access the low-cost and tax-exempt project financing made available through the LDC should contact Jim Coleman, executive director of the LDC, at (914) 995-2963 or jcoleman@westchestergov.com.

Photo: Westchester County’s Local Development Board (seated left to right) Kevin J. Plunkett, Deputy County Executive and LDC vice chairman; Stephen Hunt, LDC chairman; (standing left to right) Jerry McGrath, LDC board member; Jim Coleman, LDC executive director; Alfred DelBello, attorney representing Phelps Memorial Hospital; Eileen Mildenberger, director, Westchester County Office of Economic Development; Ilyse Spertus, PhD, LDC board member; Darius Chafivadeh, LDC bond counsel; and Mark Stanton, LDC board member voted Thursday to approved $14 million in tax exempt bond financing towards the construction of a new 20,000 square-foot surgical suite and a 200-foot long enclosed corridor bridge at Phelps Memorial Hospital.