The director of the Authorities Budget Office, which oversees local development corporations, has sent a letter to Westchester County Executive Rob Astorino asking for information about the county’s LDC, which has run into questions about whether it has the authority to issue tax exempt bonds to nonprofits.
Astorino formed the LDC in January but the Board of Legislators refused to ratify its incorporation. The board instead plans to draft its own LDC legislation. But without the approval of the board, it’s not clear that the corporation can fulfill its primary function of borrowing money cheaply for nonprofits.
In a letter dated Oct. 6, the Authorities Budget Office asked for the financing arrangements for two LDC projects: Rippowam Cisqua School and Northern Westchester Hospital; a ruling by the IRS granting the LDC the power to issue tax exempt debt in the absence of legislative approval; and a coy of the bond counsel decision Astorino has cited as the authority for his decision to move ahead without legislative approval.
The deadline is Oct. 18.
For the latest story on the LDC dispute click here.
Photo: Storm clouds form in the sky over Northern Westchester Hospital in Mount Kisco as a strong thunder storm moved through the area July 18, 2012. ( Frank Becerra Jr / The Journal News )