The board of the New York City Capital Resource Corporation gave preliminary approvals for the allocation of Recovery Zone Facility Bonds to assist the construction of two medical facilities in the Bronx and Queens that represent nearly $68 million in private investment and would create or retain more than 230 permanent and construction jobs.
Arthur Management Corporation of the Bronx plans to use up $19.8 million in triple-tax-exempt Recovery Zone bond financing to construct a five-story, 605-space parking facility for St. Barnabus Hospital in order to increase parking capacity for visitors, employees, and patients. The $25.7 million facility will be located at 4422 Third Avenue in the Bronx.
In Flushing, Queens, Fleet Financial Group, a real estate and asset management company plans to use up to $17 million in Recovery Zone bonds to develop an approximately 80,000-sq-ft, state-of-the-art medical office building, to be known as the North Queens Medical Center located at 42-31 Union Street. The facility will also include a 200-space, 65,000-sq-ft, below-grade public parking garage.
The developer is currently seeking a LEED certification for the environmentally sustainable project and marketing 50,000 sq ft to physicians, dentists and other medical professionals. Several local hospitals have also expressed interest in about 30,000 sq ft of space.
“With just $250,000 in foregone city tax revenue, the two transactions will generate more than $14 million in new revenue over the next 30 years- a healthy return on the city’s investment,” said NYCCRC Chairman and New York City’s Deputy Mayor for Economic Development Seth W. Pinsky. “More importantly, while creating jobs for residents, both projects will also improve access to quality healthcare for the people of the Bronx, Queens, and the city as a whole.”
Both projects meet the criteria of the American Recovery and Reinvestment Act.