Pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the Broome County Local Development Corporation (the "Issuer") will hold a public hearing on August 29, 2024, at 5:00 p.m. local time, at the offices of the Issuer at FIVE South College Drive, Suite 201, Binghamton, New York 13905, in connection with the matter described below.
BCC Housing Development Corporation (on behalf of itself or an entity formed or to be formed on behalf of the foregoing, the managing member or general partner of which will be BCC Housing Development Corporation, collectively, the "Institution"), a New York not-for-profit corporation and an organization described in Section 501(c)(3) of the Code, has submitted an application (the "Application") to the Issuer requesting that the Issuer issue its revenue bonds in one or more series as part of a plan of financing in the aggregate principal amount not to exceed $23,500,000 (collectively, the "Bonds") for the purpose of financing a certain project (the "Project"), consisting of: (A) in the aggregate principal amount not to exceed $22,500,000: the refinancing of all or a portion of the Broome County Local Development Corporation BCC Housing Development Corporation Revenue Bonds, Series 2013, issued in the original principal amount of $18,200,000 (the "Prior Bonds"), the proceeds of which were used to finance a certain project of the Institution on the campus of SUNY Broome (Broome Community College) (the "College"), located at 907 Front Street, Town of Dickinson, New York 13905 (the "Campus"), for the purpose of providing funds for the (i) acquisition of a leasehold interest in an approximately 1.054 acre parcel of land located on the College’s Campus along Front Street adjacent to the Tyrell Learning Resources Center and parking lot #18 (the "Land"), which Land is owned by Broome County, New York (the "County") and which such Land is ground leased by the County to the Institution; (ii) the construction and equipping of an approximately 118,225 square foot four-story student housing project together with supporting infrastructure and property site improvements located on the Land and consisting of single bedroom suites, five (5) bedroom suites (3 singles and a double), and six (6) bedroom suites (2 singles and 2 doubles) for a total of 137 singles, 178 double room beds and 10 ADA beds, all with internal restrooms, living space and a kitchen, each floor contains a lounge area, a SKYPE lounge and laundry facilities, the ground floor contains a classroom and a fitness center, and the acquisition and installation of furnishings and fixtures including, but not limited to, internet, cable TV, security system, trash and recycling center, energy efficient heating and air conditioning (collectively, the "Facility"); and (iii) paying of all or a portion of the costs incidental to the issuance of the Prior Bonds, including issuance costs of the Prior Bonds, capitalized interest and any reserve funds to secure the Prior Bonds; (B) in the aggregate principal amount not to exceed $1,000,000: the financing of (i) the costs of the installation of an upgraded physical access control system at the Facility; and (ii) the costs of repairing and/or replacing the exterior stone veneer and facade of the Facility; (C) paying the swap termination payment, if any, in connection with the termination of the swap with respect to the Prior Bonds; (D) funding a debt service reserve fund for the Bonds; and (E) paying costs of issuance on the Bonds.
The Institution is and will be the owner and operator of all of the facilities to be financed and refinanced by the proceeds of the Bonds. The Bonds will constitute qualified 501(c)(3) Bonds under Section 145 of the Code. The Issuer will loan the proceeds of the Bonds to the Institution to finance all or a portion of the Project costs pursuant to a Loan Agreement, executed and delivered contemporaneously with the issuance of the Bonds (the "Loan Agreement"), by and between the Issuer and the Institution.
The Institution has requested that the Issuer issue the Bonds. The Bonds will be special limited obligations of the Issuer payable solely from the revenues derived from the payments made by the Institution pursuant to the Loan Agreement and secured by certain assets of the Institution pledged to the repayment of the Bonds.
The Issuer will at the above-stated time and place provide a reasonable opportunity to all interested persons to present their views, either orally or in writing, on the location and nature of the Project and the proposed plan of financing for the Project by the issuance of the Bonds. Written comments may be submitted at this public hearing, submitted on the Issuer’s website, or delivered to the Issuer at the offices of the Issuer at FIVE South College Drive, Suite 201, Binghamton, New York 13905 until the comment period closes at 5:00 p.m. local time on September 5, 2024.
Under the Code, approval of the issuance of the Bonds by the County Executive of Broome County is necessary under Section 147(f) of the Code in order for the interest on the Bonds to be excluded from the gross income for federal income tax purposes.
THE BONDS SHALL NOT BE A DEBT OF THE STATE OF NEW YORK OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING BROOME COUNTY, AND NEITHER THE STATE OF NEW YORK NOR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING BROOME COUNTY, SHALL BE LIABLE THEREON.
Dated: August 14, 2024 Broome County Local Development Corporation
By: John M. Bernardo, Chairman