The Town of Hempstead Local Development (LDC) has approved the sale of $15 million in tax-exempt bonds on behalf of Molloy College in Rockville Centre.
The LDC, which provides low-interest, tax-exempt bonds to not-for-profits, schools or hospitals, gave its preliminary authorization for the bond sale which now requires the approval of the Town Supervisor.
Molloy plans to use proceeds to complete its $20.5 million Phase 3 campus master plan, including the construction of a 27,000 s/f three story, 95-bed dormitory.
Other construction, including expansion of an existing kitchen and ancillary parking, will not require bond proceeds. The site is currently a parking lot and green space.
The bond sale is expected to close mid-October. JP Morgan Chase is the underwriter.
The LDC previously partnered with Molloy to allow the college to obtain low-interest financing to construct new dorms on the 24-acre campus.
“These bonds will provide a meaningful boost to Molloy College’s aim to increase enrollment and attract students from outside of the area,” said Fred Parola, executive director of the LDC. The bonds are tsecured by a first-mortgage lien on the land and building.