SCHENECTADY — Schenectady County is considering assisting Union College with up to $60 million in bond financing for an assortment of projects.
The bonds would be issued through the county’s Capital Resource Corporation, a type of agency that exists to assist nonprofits with tax breaks or financing.
A CRC is essentially a conduit when it issues bonds, giving the borrower better access to the markets. The Schenectady County CRC would have no exposure to debt or liability from the Union College bonds.
“We are pleased to assist with this bond financing, as Union is an important part of Schenectady County and a major employer with more than 1,200 jobs,” said County Legislator Gary Hughes, chairman of the CRC and majority leader of the county Legislature.
“The CRC was established by the county to help nonprofit organizations like Union go to the capital markets to finance large capital construction projects that create jobs and help to build a stronger community.”
Union College spokesman Phil Wajda said no new construction is anticipated with the borrowed money. Rather, the college would use most of it, $35 million to $40 million, to refinance existing debt at a more favorable rate and save money.
The remainder, about $20 million, would be new debt for dozens of repairs and renovations on its to-do list, including windows, elevators and storm water drains.
The CRC, which is administered by the Schenectady County Metroplex Development Authority, will hold a public hearing on the proposal at 9 a.m. May 2.
The Schenectady County Legislature, which must approve the plan, will hold hearings at its committee meeting May 2 and regular meeting May 10.