DASNY Board Approves Financings for Education, Health Care, Early Retirement Opt-in Authorization

ALBANY: At its regularly scheduled July 28, 2010 meeting, the Board of the Dormitory Authority of the State of New York approved over $1 billion in financings for education, higher education and health care.

In addition, the Board voted to authorize the Authority to implement an early retirement incentive program as authorized by statute.

The Board approved the adoption of the following financing documents:

Cerebral Palsy Affiliates
The Board approved the private placement sale of one or more series of taxable and/or tax-exempt fixed rate bank qualified bonds in an amount not to exceed $18,000,000 for a term of no more than 30 years. The proceeds are expected to be used for capital projects at two UCP affiliates: construction costs related to the relocation of an Article 28 Diagnostic and Treatment Center and an OPWDD Day Program Facility for NYS UCP ($12.5M) as well as construction of a new Individual Residential Alternative (IRA) for the Franziska Rackers Centers, Inc ($400,000). Other funds will be used to refinance mortgages for certain existing IRA’s operated under Franzika Rackers’ Residential Program ($1.5M).
Placement Agent: RBC Capital Markets. Bank: TD Bank. Bond Counsel: Nixon Peabody LLP. Bank Counsel: Windels Marx Lane & Mittendorf LLP

St. Francis College
The Board approved the negotiated sale of a 30 year fixed-rate, tax-exempt bonds in an amount not to exceed $35 million. The proceeds are expected to be used for infrastructure improvements to college facilities, including improvements to the College’s science building, information technology center, laboratories and lecture hall. The sale requires the college to subdivide its property to accommodate the conditions of a prior financing by the New York City Industrial Development Authority and to satisfy a mortgage requirement under current DASNY financing guidelines. Bond Counsel: Hiscock & Barclay, LLP. Underwriter: Ramirez & Co., Inc. Underwriter’s Counsel: Mintz Levin Cohn Ferris Glovsky and Popeo, P.C.

The Rockefeller University
The Board approved the sale of one or more series of fixed and/or variable rate tax-exempt bonds in an amount of approximately $92,490,000 with maturities of no longer than 40 years. The proceeds are expected to fund the completion of renovation and reconfiguration of Flexner and Smith Halls to create the Collaborative Research Center and related undertakings ($50M) as well as to refund certain outstanding DASNY bonds issued on behalf of the University depending on market conditions. The bonds are to be sold through negotiated sales and/or (if variable) a private placement with JPMorgan Chase Bank N.A. Lead Manager: JP Morgan. Bond Counsel: Nixon Peabody LLP. Underwriter’s Counsel: Hawkins Delafield and Wood LLP.

The Board approved the following single financing resolutions:

State University of New York
The Board approved the negotiated sale of one or more series tax-exempt and/or taxable, fixed rate and/or variable rate bonds in an amount not to exceed $145,500,000 for a term not to exceed 30 years. The resulting funds are expected to fund various dormitory projects at SUNY campuses throughout the statewide system (up to $128.3M). Lead Manager: TBD. Bond Counsel: Hiscock and Barclay, LLP. Underwriter’s Counsel: TBD.

New York State Personal Income Tax Revenue Bond Program
The Board approved the negotiated sale a multiple series of taxable and tax-exempt fixed rate 30 year bonds in an amount not to exceed $ 472,000,000. The proceeds of the sales are expected to fund capital projects for the Office of Mental Health (OMH), the Office of People With Developmental Disabilities (OPWDD) and the Office of Alcoholism and Substance Abuse Services (OASAS)(all State Facilities) ($278M) and capital projects for OMH, MPWDD and OASAS volunteer agency facilities ($164.3M). Lead Manager: TBD. Bond Counsel: Hawkins, Delafield and Wood, LLC. Underwriter’s Counsel: TBD.

The Board approved the following single approval variable rate restructurings:

Long Island University
The Board approved the conversion of letter of credit-backed variable rate demand bonds in the Weekly Rate Mode to unenhanced variable rate bank qualified bonds in the Bank Purchase Mode through a private placement of bank qualified bonds. Private Placement Agent: Piper Jaffray & Co. Bond Counsel: Orrick, Herrington and Sutcliffe LLP. Private Placement Bank: RBS Citizens, N.A.

The Board approved resolutions to proceed with the following new financings:

New School University
The Board approved the negotiated sale of one or more unenhanced, fixed and/or variable-rate bonds of an amount not to exceed $350,000,000 with a term not to exceed 40 years. The proceeds of the sale are expected to be used for construction of The University Center at 65 Fifth Avenue ($243M), the construction of a 608- bed dormitory on the top of the University Center ($112M) and the renovation of three floors of a leased building at 79 Fifth Avenue ($20M).

Rochester Institute of Technology
The Board approved the negotiated sale of one or more series of taxable, variable and/or fixed-rate bonds in an amount not to exceed $40,000,000 with a term of no more than 30 years. The proceeds are expected to be used for the construction of Institute Hall ($29M), the design and construction of a green data center ($6M),expansion of Ritter Ice Arena locker rooms ($3.8M), the development of a quad and a brick façade to Building 13 ($4.2M) and other campus-wide improvements ($2.5M).

The Board approved the following resolutions for the Tax-Exempt Leasing Program (TELP):

Hospital for Special Surgery

The Board approved the lease of equipment pursuant to DASNY’s TELP I in a total amount of $6.7M for the New York Society for the Relief of the Ruptured and Crippled, maintaining The Hospital for Special Surgery. The proceeds will be used for a variety of equipment in the operating room, radiology and other departments, as well as technology for communications and IT.

The Board authorized an early retirement incentive program.

The Board authorized both the Part A and Part B incentives of the New York State Employees’ Early Retirement System (ERS) that were signed into law earlier this year. The resolution complies with legal requirements for an Authority Board of Directors vote no later than August 31, 2010 to opt into the retirement incentives. The law also requires authorities offering the incentive to establish an open period of at least 30 days but not more than 90 days extending no later than December 31, 2010.

President Paul Williams said management is reviewing positions for inclusion in the Part A targeted plan incentive and that Part B, as required, will be available to the entire Authority workforce.

Other actions:
In compliance with Public Authorities Law, the Board approved the adoption of a Finance Committee charter and revisions to the Dormitory Authority Governance Principles.
Board member Gerard Romski will serve as Chair of the new, 3 member Finance Committee.