CIDC is experienced in providing both taxable and tax-exempt bond financing for municipal projects and affordable housing.
CIDC has worked in the placement and closing of more than $ 1 billion dollars in tax exempt bond financing including IRBs and 501(c3) Bonds.
501(C)3 BONDS
Tax-exempt bonds for non-profit groups purchased by private bond funds. CIDC, through its real estate subsidiaries, owns and has owned several properties, including all the garages at Yankee Stadium, dormitories for RPI, a County Office Building, firehouses, garages and assisted living facilities. CIDC and its subsidiaries have issued more than $900 million in bonds to finance these projects. It has also consulted with other non-profits in using this financing vehicle.
INDUSTRIAL REVENUE BONDS
Small Issue Industrial Revenue Bonds are used to finance industrial projects that are below $10,000,000. CIDC has worked closely with several Wall Street underwriters, to place several hundred million of these bonds for industrial projects in Pennsylvania, New York, and New Jersey. CIDC has begun work with Palm Beach County to begin such a program in the county. These bonds have been used when Section 108 was used for working capital and the IRBs were used for fixed asset financing.
TAX EXEMPT REVENUE BONDS
The state of the art BOCES Career and Technical School was financed with the sale of Tax-Exempt Revenue Bonds. Other projects include a Special Needs school and corporate offices.
LOWER FLOATER AND SWAPS
A lower floater is a bond, which has a daily or weekly floating rate, which is swapped for a fixed rate instrument. CIDC has worked on $250 million of these instruments with several financial institutions
Experience and Creativity with Sales/Leasebacks
A large part of CIDC’s activities have been to enable public agencies to attract private capital to develop lands owned by a Public Agency, either through the sale of the land or a land lease. In carrying out these activities CIDC has used tax exempt and taxable revenue bonds. CIDC is currently working with the Atlantic County Improvement Authority to develop a high-tech park. It has introduced 108 funds for tenant improvements and OZ funds and taxable bonds for development.
CIDC has used its 501-C-3 bonding capacity to carryout developments in which CIDC develops the project and leases it back, with an eventual sale to the entity after the bonds are paid off. This has included dormitories for RPI in Troy, New York, Educational facilities in Colonie, New York, parking garages to provide parking at Yankees Stadium on behalf of the City of New York, and the construction of an office building and the lease back to county government.