Hofstra seeks $42M, refinancing for new building, renovations
C.V. Starr Hall at Hofstra University, seen Tuesday, March 28, 2017, would be renovated with bond funds, documents show. Credit: Barry Sloan
Hofstra University is seeking $42 million of tax-exempt bonds for the construction of a new business school building, renovations and maintenance projects, a school spokeswoman said.
Officials also are seeking to refinance $19 million of bonds previously issued to the university.
The university plans to break ground on the 52,000-square-foot Frank G. Zarb School of Business building in the spring, using funds from the $42 million in new bonds, Hofstra spokeswoman Karla Schuster said. The new building, which LDC documents report would be worth about $30.6 million, will abut the C.V. Starr building and replace Weller Hall at the Hempstead campus.
“In addition to a new School of Business building, the financing relates to ongoing maintenance projects such as roofs, refurbishments and the like, as well as the refinancing of existing debt if interest rates are favorable,” Schuster said in a statement.
The new bond funds would also be used to renovate the C.V. Starr building adjacent to the site of the new building.
The Hempstead Town Local Development Corp., which provides low-interest, tax-exempt bonds to nonprofits, is to consider granting the new bonds and the refinancing during its meeting Thursday at Town Hall.
“A university can’t issue bonds on its own, but an LDC can,” agency attorney John Ryan said Tuesday.
In 2007, Hofstra received $25 million from bond sales with interest rates between 4.3 and 5 percent, LDC officials said.
The university hopes to refinance the $19 million balance remaining on those bonds for lower interest rates, officials said. The funds went toward projects that have already been completed, Schuster said.
The interest rates will not be priced until May, LDC officials said.
