Mineola, NY According to Richard Kessel, chairman of the Nassau County Local Economic Assistance Corp. (LEAC), The Agency’s board has approved the sale of $14.3 million in tax-exempt bonds that will assist the not-for-profit SCO Family of Services (SCO) to renovate its facilities and refinance existing debt.
The bond sale will allow SCO to refinance $7 million in bonds issued through LEAC in 2013, refinance a line of credit and provide a mechanism to more efficiently add additional debt in the future. Bond-sale proceeds will also be used for capital renovation projects. Refinancing the debt through the issuance of tax-exempt bonds provides a cost-effective means for SCO to undertake the refinancing and a mortgage recording tax exemption, also sought by the organization, will decrease SCO’s expense for undertaking the restructuring.
“We’re very impressed with the work SCO does,” said Kessel. “I know how important not-for-profits are in these difficult times and this refinancing will allow SCO to provide better and more services. Anything we can do to help a not-for-profit is the whole basis for LEAC.”
The bonds, to be sold to TD Bank and People’s United Bank, would be repaid by SCO. There is no out-of-pocket expense to Nassau County taxpayers.
SCO operates more than 80 programs serving 60,000 children and adults annually to address developmental and mental challenges, poverty, neglect or abuse (including foster care, early childhood education and youth development, family and community supports, shelters and homeless services, and special needs).
SCO, which has existed under various names, including St. Christopher-Ottilie, for 125 years, employs more than 3,500 people in 120 locations throughout Brooklyn, Queens, Bronx, Nassau and Suffolk Counties.
In Nassau it serves about 1,000 individuals through several programs, including a 9-acre campus in Sea Cliff for adults and children with developmental disabilities and varying social, emotional, and mental health needs. It has 570 employees in Nassau with an annual payroll of more than $19 million.
The bond sale, which was approved by the LEAC board at a video conference meeting on May 28th, will benefit Sea Cliff-based SCO, one of the state’s largest human services organizations.
SCO said it is also seeking assistance from Suffolk County and New York City, where it also operates.