FINANCING: IMPROVING MIDDLESEX COUNTY AND SAVING MONEY FOR
MUNICIPALITIES
The MCIA’s pooled financings provide
municipalities and the County with low-cost bonds to secure much-needed
equipment and public facilities. The
advantages of these pooled financing programs have included:
Economies of scale
Lower interest rates
The benefits of a negotiated sale
No down payment
Exemptions from municipal budget caps, in most cases
The MCIA recently completed these financings:
Heldrich Center
This nine-story hotel and conference center was financed by the MCIA with
additional funding provided by the State Casino Reinvestment Development
Authority, and opened in March, 2007. The financing closed in 2005 and construction is complete. The
275,000-square-foot center has 250 hotel rooms and suites, a restaurant
and lounge, a 500-seat ballroom and rental space. Rutgers University's Bloustein
School of Planning and Public Policy and the John J. Heldrich Center for
Workforce Development is leasing the office and instructional
space.
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New Brunswick Apartments Project |
Capital Equipment Lease Revenue Bonds, Series 2007
Eight municipalities and the county of Middlesex took advantage of the
County’s bond rating to finance purchases of a fire truck, police cars, safety
equipment, hybrid vehicles, and dozens of other items. The 16th series of the Capital Lease
Bonds totaled $6.28 million and closed in September.
Carteret,
Edison, Monroe, Old Bridge, Sayreville, South Plainfield, South River and Spotswood
benefited from the low-cost flexible, County guaranteed financing.
To date, the MCIA has financed more than $150 million in equipment purchases
and saved participants more than $3 million in equipment costs and debt
service as a result of being able to finance equipment at tax exempt interest
rates and the County’s bond rating.
To participate, the governing body of the municipality must adopt a resolution
identifying specific items and expected costs of each item and authorize, by
ordinance, the procurement of the equipment by the municipality through the
MCIA. This process forms the basis for issuance. Equipment, which must have
an average life of at least five years, is then leased to the town.
Open Space Trust Fund - 2003 Series
The MCIA completed a $78,765,000 bond issue to finance open space
purchases for Middlesex County. This bond closed September 2003 and proceeds
will be used to purchase properties that will be added to the county's
more than 5,000 acres of open space. Land purchases will follow the
revised guidelines of Middlesex County's open space master plan. As in
the case of the two previous open space bonds that closed in 1998 and 1999,
debt service will be paid from the county's open space levy.
City of Perth Amboy Municipal Complex
Completed in June 2003, the proceeds from this bond will acquire land
and construct a new municipal complex consisting of police headquarters, the
municipal court, fire headquarters and emergency medical services. Also
planned is a community fitness complex including recreation facilities and a
childcare center. The 12-acre site also includes utilities, parking and
landscaping.