State helps Culinary Institute of America expand in California
ALBANY — The Cuomo administration is planning to use the borrowing power of New York to help a college expand _ in California.
An item on Wednesday’s agenda of the state Public Authorities Control Board called for final approval to help the Culinary Institute of America, based in upstate Hyde Park to secure up to $65 million in tax-exempt bonds. The borrowing would be used to build and renovate buildings on the New York and California campuses, according to an early version of the meeting agenda.
By the time the state Public Authorities Control Board met Wednesday, the item had been deleted from an updated agenda. The state Dormitory Authority, which is controlled by Gov. Andrew M. Cuomo’s appointees, wouldn’t say specifically why the item was yanked. The final approval by the control board could come at the April meeting.
It was the second time the state used its power to issue tax-exempt bonds for construction out of state. In 2013, the state helped New York University secure up to $210 million in borrowing for work on campuses in New York, but also to buy, renovate and equip property in Washington, D.C.
In each case, the state said the action was taken to strengthen a New York-based college.
The proposal for the Culinary Institute of America won’t obligate New York taxpayers for the debt, count against the state’s debt limit or cost the state any funds, said authority spokesman Freeman Klopott. The Dormitory Authority would simply join the effort so that the Culinary Institute of America would borrow money through tax-exempt bonds, which would give the CIA a lower interest rate. The institute would also pay fees to the state.
The Dormitory Authority, which handles projects beyond dormitories, stated the borrowing would be paid through revenue from the institute and a mortgage on part of the Hyde Park campus, according to the earlier version of the agenda.
“This proposed financing strengthens a New York State-based institution, helping it to compete,” Klopott said. As for pulling the agenda item from the Public Authorities Control Board public meeting on Wednesday, he said the authority “typically submits financing proposals seven to 10 days ahead of PACB meetings. Occasionally, those submissions are rescheduled for future action.”
The institute also has campuses in Texas and Singapore.
A year ago, Cuomo announced that the institute would support his Taste of New York program to market food products grown and produced in New York. In 2014, Cuomo signed a bill passed by the legislature that allowed the institute to make and sell alcoholic beverages through a small brewery on its Hyde Park property.
Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.
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