Town of Hempstead LDC approves $125 million bond sale by Adelphi University

Hempstead, NY The Town of Hempstead Local Development Corp. (LDC) has approved the sale of up to $125 million in tax-exempt bonds on behalf of Adelphi University to support a range of capital improvements to its Garden City campus, and, perhaps, refinance previously issued bonds.

The LDC, which provides low-interest, tax-exempt bonds to not-for-profits, educational institutions, hospitals, civic entities, or charitable organizations within the town, approved the bond sale at its Jan. 27 meeting.

The bonds, to be underwritten by Hilltop Securities Inc., of Dallas, TX, are to be repaid by Adelphi. There is no out-of-pocket expense to Town of Hempstead taxpayers. 

Adelphi intends to spend the funds on a range of capital improvements across its 75-acre Garden City campus. These projects will include, but are not limited to, athletic field replacements, a campus-wide access control system, a student computer science laboratory, data center enhancements, upgrades to the learning management systems, HVAC improvements, and other infrastructure initiatives. Most of the work will be done at Hagedorn Hall and the Science Building.

Adelphi is also considering using the bond-sale proceeds to refund all or a portion of its outstanding Revenue Bonds sold in 2013 and 2014. The current outstanding principal amounts are $35.7 million and $21.18 million respectively.

Adelphi is planning to modernize and equip the university’s Science Building and Hagedorn Hall. The work will include new chillers, HVAC, windows, and its data center. It also plans to undertake deferred maintenance of the university’s buildings, facilities, and infrastructure.

The modernization project is expected to cost $55 million, but the bond sale may be higher if Adelphi decides to refund bonds that it sold in 2014 and 2013, depending on market conditions.

Adelphi plans to begin the project by March, with most of the work to be done during the summers of 2026, 2027, and 2028. The work will be completed in 2029.

Adelphi has 1,006 full-time jobs and 1,115 part-time positions in Garden City. The proposed project is expected to generate 100 construction jobs.’

“There is no doubt that the sale of these new bonds will benefit Adelphi University, its students, and have a positive impact on the economics of the surrounding communities,” said Fred Parola, executive director of the LDC. 

The LDC offers tax-exempt bond financing to eligible not-for-profit organizations that show a compelling need for assistance in reducing their cost for financing through the consolidation or refinancing of current debt, financing the renovation of existing facilities, or financing the construction of new facilities. All of these benefits are intended to help not-for-profit organizations serve their missions. The benefits are governed by New York State law and require that the organization and the LDC enter into formal legal agreements.