August 7, 2012 - New Jersey Redevelopment Authority Provides Preliminary Bond Approval of Tax-Exempt and Taxable Bonds
NEW JERSEY REDEVELOPMENT AUTHORITY PROVIDES PRELIMINARY BOND APPROVAL OF
TRENTON, N.J. - The New Jersey Redevelopment Authority (NJRA) today announced that it provided preliminary approval of tax-exempt and taxable bonds to NPC, Community Development Corporation, Inc. (NPCCDC) to finance the acquisition and renovation costs for two facilities to be leased to the Newark Preschool Council, Inc. (NPC). The development sites, located at 936 Bergen Street and 515 Clinton Avenue, will enable the Newark Preschool Council, Inc. to consolidate 21 classrooms within two locations.
“NJRA’s investment gives back to the city of Newark’s South Ward through the development of two state-of-the-art facilities that will offer quality childcare,” said Department of Community Affairs Commissioner Richard E. Constable, III. “The NPCCDC is a dedicated organization that has an established role in the community as an Early Childhood Education Program with a solid record of administering Head Start and more recently, the state-mandated Abbott program.”
The NPCCDC was created to own and develop two childcare facilities in Newark. The Bergen Street site, which currently has three classrooms, will be expanded to a total of nine classrooms, which will include seven Abbott and two Head Start classrooms. The Clinton Avenue site, which has a partially completed building located on the property, will develop 12 new Pre-K classrooms. The consolidation project will result in an operating cost savings of $312,000 annually. NPCCDC intends to raise capital via Hamlin Capital as the direct purchaser of NJRA tax-exempt and taxable bonds to develop the two sites.
“The development of these two sites will now enable NPC to consolidate 21 classrooms within its network into two locations,” said Leslie A. Anderson, NJRA Executive Director. “As a result, more than 25 full-time teaching, administrative and clerical jobs, as well as 200 construction-related jobs will be created.”
The NJRA Bond program offers creative bond financing solutions to companies seeking financing for capital improvements and expansions. The NJRA acts as a conduit by issuing its qualified small issue bonds for the purpose of acquiring or constructing capital facilities for qualifying borrowers so that the borrowed funds (bond proceeds) can be treated as tax-exempt. The NJRA sells bonds to raise capital for making long-term loans at attractive, below-market interest rates to a broad range of qualified businesses and not-for-profit organizations. The Authority has the ability to issue $100 million of taxable and tax-exempt bonds annually to stimulate revitalization in New Jersey's urban areas.
NJRA’s mission is to provide a unique approach to revitalization efforts in New Jersey's cities by developing programs and resources which create value and improve the quality of life in urban communities.
For more information about the New Jersey Redevelopment Authority, visit http://www.njra.us.