Accessibility questions: EqualAccess@edc.nyc, by Thursday, July 20, 2023 10:00 AM
BUILD NYC RESOURCE CORPORATION
NOTICE OF PUBLIC HEARING
The Build NYC Resource Corporation (the “Corporation”) is a not-for-profit local development corporation organized under Sections 402 and 1411 of the Not-for-Profit Corporation Law of the State of New York. In accordance with the aforesaid law, and pursuant to its certificate of incorporation, the Corporation has the power to issue non-recourse revenue bonds or notes and to make the proceeds of those bonds or notes available for projects that promote community and economic development in The City of New York (the “City”), and to thereby create jobs in the non-profit and for-profit sectors of the City’s economy. The Corporation has been requested to issue such bonds and notes for the financings listed below in the approximate dollar amounts respectively indicated. As used herein, “bonds” or “notes” are the bonds or notes of the Corporation, the interest on which may be exempt from local and/or state and/or federal income taxes; and, with reference to the bond or note amounts provided herein below, such stated amounts are approximate and shall be deemed to mean up to such stated bond or note amount or a greater principal amount not to exceed 10% of such stated bond or note amount. All other amounts and square footage amounts and wage information shown below are approximate numbers.
Borrower Name: 586 River Ave., LLC, which is a Delaware limited liability company and a disregarded entity for federal income tax purposes, as borrower (the “Borrower”), whose sole member is Success Academy Charter Schools, Inc. (“SACS”), a Delaware not-for-profit corporation exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), SACS is a charter management organization founded to provide academic and business services to Success Academy Charter Schools – NYC, a New York not-for-profit education corporation exempt from federal income taxation pursuant to Section 501(c)(3) of the Code (the “School”). Financing Amount: $250,000,000 in tax-exempt bonds (the “Bonds”). The Bonds will be issued as part of a plan of finance of qualified 501(c)(3) bonds for educational facilities under Section 145 of the Code. Project Description: Proceeds of the Bonds will be used to finance a portion of the costs of: (i) the construction and equipping of a 309,000 square foot facility on a 98,972 square foot parcel of land located at 586 River Avenue, Bronx, New York (the “Facility”); (ii) a debt service reserve fund; (iii) capitalized interest; and (iv) certain costs related to the issuance of the Bonds. The Facility will consist of an elementary school, middle school, high school, and common areas in one building. The Facility will be owned by the Borrower and leased to the School, which will operate the Facility for educational purposes as three public charter schools serving approximately 2,400 students from kindergarten through Grade 12. Address: 586 River Avenue, Bronx, New York 10451. Type of Benefits: Tax-exempt bond financing and exemption from City and State mortgage recording taxes. Total Project Cost: $358,400,000 projected Jobs: 342 full-time equivalent projected. Hourly Wage Average and Range: $30.38/hour, estimated range of $26.44 to $49.60.
Borrower Names: AMDA, Inc., a New York not-for-profit corporation (“AMDA”) exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), d/b/a the American Musical and Dramatic Academy, is a school and conservatory that serves performing arts students, together with Manhattan Stratford Arms, Inc., a New York not-for-profit corporation (“MSA”) exempt from federal income taxation pursuant to Section 501(c)(2) of the Code and a real estate holding organization affiliated with AMDA (AMDA and MSA collectively, the “Borrowers”). Financing Amount: $68,680,000 in tax-exempt and/or taxable bonds (the “Bonds”). The tax-exempt bonds will be issued as part of a plan of finance as qualified 501(c)(3) bonds for educational facilities under Section 145 of the Code.
Project Description: The Borrowers severally own and operate properties at (i) 205 West 85th Street, New York, New York, a 15,035 square foot six-floor building located on a 4,087 square foot parcel of land (the “205 West 85th Street Facility”), for use by AMDA as a dormitory; (ii) 207 West 85th Street, New York, New York, a 17,856 square foot five-floor building located on a 4,598 square foot parcel of land (the “207 West 85th Street Facility”), for use by AMDA as a dormitory; (iii) 211 West 61st Street, New York, New York, a 67,000 square foot four-floor commercial condominium comprised of four condominium units (the “61st Street Facility”), for use by AMDA for classrooms, admissions viewing center, studios, offices and performance space and as a conservatory for the performing arts; (iv) 421-429 West 54th Street, New York, New York, a 12,552 square foot one-floor commercial condominium comprised of two condominium units located on a 7,500 square foot parcel of land (the “54th Street Facility”), for use by the AMDA as administrative headquarters; and (v) 117 West 70th Street, New York, New York, a 75,313 square foot building located on a 9,790 square foot parcel of land (the “70th Street Facility”), for use by AMDA as a dormitory.
As part of a plan of financing, proceeds from the Bonds, together with other funds available to Borrowers, will be used to: (1) current refund the Build NYC Resource Corporation Revenue Bonds (AMDA, Inc. Project), Series 2015, originally issued in the principal amount of $21,000,000 (the “Build NYC 2015 Bonds”), the proceeds of which Build NYC 2015 Bonds were used (i) in the amount of $1,815,040 to finance and refinance the costs of the acquisition, construction, renovation, equipping and furnishing of the 70th Street Facility, and (ii) in the amount of $14,400,781 to finance and refinance the costs of the acquisition, construction, renovation, equipping and furnishing of the 61st Street Facility; (2) current refund the Build NYC Resource Corporation Revenue Bonds (AMDA, Inc. project), Series 2018, originally issued in the principal amount of $34,250,000 (the “Build NYC 2018 Bonds”), the proceeds of which Build NYC 2018 Bonds were used (i) in the amount of $9,539,457 to finance and refinance the costs of the acquisition of the 207 West 85th Street Facility, (ii) in the amount of $6,508,457 to finance and refinance the cost of the acquisition of the 205 West 85th Street Facility, (iii) in the amount of $13,194,763 to finance and refinance the cost of the acquisition, renovation, furnishing and equipping of the 54th Street Facility, and (iv) in the amount of $1,337,307 to finance and refinance the cost of the renovation, furnishing and equipping of the 61st Street Facility; and (3) refinance a taxable loan made to AMDA in the principal amount of $11,180,505, the proceeds of which 2015 Taxable Loan were used (i) in the approximate amount of $4,472,202 to finance and refinance the costs of the renovation, equipping and furnishing of the 70th Street Facility, and (ii) in the approximate amount of $6,708,303 to finance and refinance the costs of the renovation, equipping and furnishing of the 61st Street Facility; (4) fund one or more debt service reserve funds; (5) fund the payment of certain swap termination fees and costs; and (6) fund the costs of issuance of the Bonds (paragraphs 1, 2, 3, 4, 5 and 6 above are collectively, the “Project”). Addresses: 205 West 85th Street, New York, New York 10024; 207 West 85th Street, New York, New York 10024; 211 West 61st Street, New York, New York 10023; 421-429 West 54th Street, New York, New York 10019; and 117 West 70th Street, New York, New York 10023. Type of Benefits: Tax-exempt and/or taxable bond financing and exemption from City and State mortgage recording taxes. Total Project Cost: $68,680,000. Projected Jobs: 261.5 full time equivalent jobs retained and 49.5 projected. Hourly Wage Average and Range: $40.41/hour, estimated range of $18/hour to $53/hour.
Borrower Name: Boston Road-Bold Support Corporation (the “Borrower”) is a New York not-for-profit corporation that is seeking recognition of its status as an organization exempt from federal taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”). The Borrower was created to provide support to Bold Charter School (the “School”), a New York not-for-profit education corporation exempt from federal taxation pursuant to Section 501(c)(3) of the Code, which operates a public charter school. Bold Schools, Inc. is a New York not-for-profit corporation exempt from federal taxation pursuant to Section 501(c)(3) of the Code, and was also created to provide support to the School. Financing Amount: $60,000,000 in tax-exempt and/or taxable bonds (the “Bonds”). The tax-exempt bonds will be issued as part of a plan of finance as qualified 501(c)(3) bonds for educational facilities under Section 145 of the Code. Project Description: Proceeds of the Bonds, together with other funds available to Borrower and the School, will be used to finance and/or refinance: (i) the costs of the demolition of an existing 17,281 square foot vacant building and the construction, renovation, furnishing and equipping of a new 80,861 square foot building to be located on a 14,206 square foot parcel of land leased by the Borrower and located at 1472 Boston Road, Bronx, New York (the “Facility”); (ii) refinance a bridge loan of up to approximately $16,8000,000 for the Facility’s predevelopment and development costs; (iii) any debt service reserve fund and capitalized interest; and (iv) certain costs associated with the issuance of the Bonds (i, ii, iii, and iv collectively, the “Project”). The Facility will be leased (and owned for federal tax purposes) by the Borrower, subleased to Bold Schools, Inc. and sub-subleased to the School, which will operate the Facility as a public charter school, for students from kindergarten through Grade 8. The School is seeking a charter renewal for kindergarten through Grade 5 and an expansion for Grades 6 through 8 as the current charter shall expire in Summer 2024. Address: 1472 Boston Road, Bronx, New York 10460. Type of Benefits: Tax-exempt and taxable bond financing and exemption from City and State mortgage recording taxes. Total Project Cost: $60,000,000. Projected Jobs: 33 full-time equivalent retained and 21.5 full-time equivalent created. Hourly Wage Average and Range: $38.04/hour, estimated range $55.00/hour to $15.00/hour.
Borrower Name: Inwood Avenue-Nuasin Support Corporation (“IANSC” or the “Borrower”) is a New York not-for-profit corporation that is seeking recognition of its status as an organization exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code’). IANSC was created as a support organization for Nuasin Next Generation Charter School (the “School”), a New York not-for-profit education corporation which is exempt from federal income taxation pursuant to section 501(c)(3) of the Code. Friends of Nuasin, Inc., another support organization for the School is a not-for-profit corporation, qualified to do business in New York, which will be exempt from federal income taxation pursuant to section 501(c)(3) of the Code. Financing Amount: $60,000,000 in tax-exempt and/or taxable bonds (the “Bonds”). The tax-exempt bonds will be issued as part of a plan of finance as qualified 501(c)(3) bonds for educational facilities under Section 145 of the Code. Project Description: Proceeds of the Bonds, together with other funds available to the Borrower and the School will be used to finance or refinance: (i) a portion of the costs of constructing, renovating, furnishing, and equipping an approximately 68,000 square foot portion of an approximately 78,000 square foot building located on an approximately 36,858 square foot parcel of land located at 1342 Inwood Avenue, Bronx, NY (the “Facility”); (ii) one or more debt service reserve fund(s); (iii) capitalized interest; and (iv) pay for certain costs related to the issuance of the Bonds (collectively, (i)-(iv), the “Project”). The Facility will be leased (and owned for federal tax purposes) by the Borrower and sub-leased to Friends of Nuasin, Inc. and sub-subleased to the School, which will operate the Facility as a public charter school serving students from grades 9 through 12. Addresses: 1342 Inwood Avenue, Bronx, New York 10452. Type of Benefits: Tax-exempt and/or taxable bond financing and exemption from City and State mortgage recording taxes. Total Project Cost: $60,000,000. Projected Jobs: 94.5 full time equivalent jobs retained and 46 projected. Hourly Wage Average and Range: $45.94/hour, estimated range of $15/hour to $120/hour.
For any updates to project information after the date of this notice, please visit the website of New York City Economic Development Corporation (“NYCEDC”) at www.nycedc.com/buildnyc-project-info.
The Corporation is committed to ensuring meaningful access to its programs. If you require any accommodation for language access, including sign language, please contact NYCEDC’s Equal Access Officer at 212-312-3602 or at EqualAccess@edc.nyc.
Pursuant to Internal Revenue Code 147(f), the Corporation will hold a hearing at the offices of NYCEDC, 1 Liberty Plaza, 14th Floor, New York, New York 10006 on the proposed financings and transactions set forth above, commencing at 10:00 A.M. on Thursday, July 20TH, 2023. Interested members of the public are invited to attend.
Interested members of the public are invited to attend and will be given an opportunity to make a brief statement regarding the projects listed above. Please be advised that attendees should be prepared to wear a face covering and maintain social distance, if they are not willing to provide proof of vaccination status upon entry.
The Corporation will present information at such hearing on the proposed financings and transactions set forth above. For those members of the public desiring to review project applications and cost benefit analyses before the date of the hearing, copies of these materials will be made available at https://edc.nyc/build-nyc-board-meetings-and-public-hearings, starting at 12:00 P.M. fourteen (14) days prior to the hearing. Persons desiring to make a brief statement during the conference call regarding the proposed transactions should give prior notice to the Corporation by sending an email to ftufano@edc.nyc no later than 5:00P.M. the day before the hearing. Written comments may be submitted to the Corporation to the following email address: ftufano@edc.nyc. Please be advised that it is possible that certain of the aforementioned proposed transactions may be removed from the hearing agenda prior to the hearing date. Information regarding such removals will be available on the Corporation’s website at https://edc.nyc/build-nyc-board-meetings-and-public-hearings on or about 12:00 P.M. on the Friday preceding the hearing.
Build NYC Resource Corporation
Attn: Ms. Frances Tufano
One Liberty Plaza, 13th Floor
New York, New York 10006
(212) 312-3598