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$10M loan approved

The Yonkers Industrial Development Agency (IDA) has given preliminary approval to the nonprofit consumer advocacy group Consumers Union to borrow $10 million for the expansion of its headquarters and to refinance $39 million in debt borrowed through the IDA in 1989.

The IDA will hold a public hearing on the lending plan prior to its final approval. The loans will consist of bonds issued by the IDA and payable by the borrowers. The plan also grants an exemption of the mortgage recording tax and sales taxes on construction materials.

The IDA also finalized a $45 million loan package for Main Street Lofts, LLC, a firm that is developing a new 10-story, 250,000-square-foot building located at the corner of Main and Hawthorn Streets in the central business district. The new, mixed-use property will replace two abandoned, former industrial buildings purchased and razed by the developer. Main Street Lofts is expected to be completed in 2006 and will comprise 170 live-work loft condominiums, with 25,000 square feet of retail space, a health club and 154 parking spaces.

Mayor Philip A. Amicone, chairman of the IDA, said, "We're attracting hundreds of new permanent residents to downtown Yonkers. This will spur retail development and help existing retail businesses nearby."

Consumers Union relocated its headquarters to Yonkers from Mt. Vernon in 1991, and financed its construction loan through the IDA and private donations.

Consumer Union's mortgage tax exemption will save the company $837,000. Refinancing the existing loans will save $588,000, and financing the new loans through IDA will save the company approximately $200,000. Consumers Union also has a payment in lieu of taxes (P.I.L.O.T.) agreement with the IDA in which the company pays the City $120,000 a year as long as it has outstanding loan commitments through the IDA.

COPYRIGHT 2005 Hagedorn Publication
COPYRIGHT 2006 Gale Group