Schenectady, N.Y., October 8, 2010 — Schenectady County’s new Capital Resource Corporation (CRC) will help secure up to $38 million in bonds for improvements to the Union College campus. The CRC held it first meeting earlier today and approved the Union College project.
“We are pleased to select the CRC as the vehicle to finance these projects because the fee they receive will be used to support other economic development projects in the community,” said Union President Stephen C. Ainlay.
Schenectady County Legislature Chair Susan E. Savage said, “Union College is an asset to our community and one of our largest employers with over 800 jobs. We are pleased that Union has selected the new CRC as a mechanism to obtain the necessary financing for these important capital projects.”
The bond debt will be the sole responsibility of Union College, which chose the CRC because the fee it will be paid will be reinvested locally. The CRC plans to reinvest the $380,000 fee that it generates from the bond issuance in community projects that create jobs and bring new investment to Schenectady County.
The new bond financing with a maximum value of $38 million will help the College address deferred maintenance issues on several older buildings, including electrical and mechanical upgrades, roof repairs and energy efficient measures over the next several years. The funding will also help support the renovation of the Social Sciences building early next year and other planned construction projects.
The Schenectady County Legislature established the new CRC in July of this year to help projects in the County access bond markets. The Union College project is the first project approved by the new CRC. The CRC was established after the State Legislature did not extend the authorization for IDA’s to issue so – called civic facility bonds back in 2008.
The new CRC is administered by the Schenectady County IDA. The County IDA is part of Schenectady County’s unified economic development team.
The County will work closely with Union College and the City of Schenectady to identify projects that can benefit from the $380,000 in fees generated by the project.