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Genesee County Funding Corp.

April 21, 2022 - 8:50am

Updated: April 21, 4:30 p.m. with additional information about Laurie Oltramari nomination:

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The Genesee County Legislature, understanding that it has zero financial liability, is expected to pass a measure to allow the Genesee County Funding Corp. to secure up to $275 million in revenue bonds to finance a wide-reaching project of the Rochester Regional Health system.

The legislature’s Ways & Means Committee on Wednesday approved a resolution that describes RRH’s plan to finance or refinance capital improvement projects at several locations, including its new medical specialties building under construction on Route 98, north of the Thruway interchange in Batavia.

About $47 million in Series 2022 Bonds will be used for the “Batavia project:”

  • Construction of an approximately 105,393 square-foot medical facility on Route 98 that will house extension sites of three RRH affiliate hospitals to be used for outpatient cardiac care, women's health services, primary care, urgent care, outpatient surgical services, gastroenterology, outpatient radiology and other outpatient services;
  • Construction of approximately 56,147 square feet of related ground floor parking, and the acquisition and installation of machinery, equipment and other personal property.

A formal vote of the full legislature likely will take place at next Wednesday’s meeting at the Old Courthouse.

Last month, representatives of the Genesee County Economic Development Center proposed the idea of using the GCFC to act as a conduit bond issuer for RRH. Subsequently, the legislature voted to change the entity’s bylaws to allow for projects outside of the county as long as the business had operations in Genesee County.

RRH fits the bill as its network of hospitals and offices stretches across the state. According to the resolution passed yesterday, other capital improvement projects to utilize this round of funding will take place in the City of Rochester, Town of Potsdam, Town of Pittsford, Town of Penfield, Town of Canton and Town of Massena.

Before supporting this action, Ways & Means Chair Marianne Clattenburg asked for assurance that Genesee County bears no fiscal responsibility in the transaction. The premise of the resolution is that RRH would be able to issue bonds at a reduced interest rate by going through the GCFC.

“I support this as Rochester Regional Health has made a commitment to the county,” Clattenburg said. “It’s hard to get doctors to work in rural communities.”

In other action, the committee approved:

  • An application for a New York State Office of Community Renewal Community Development Block Grant of up to $750,000 to support La Fermiere Inc.’s plans to develop a yogurt and dessert production facility at the Genesee Valley Agri-Business Park on East Main Street Road in the Town of Batavia.

Per the resolution, the project will create 135 new jobs and represents a private investment of more than $20 million. If received, the grant would help finance part of the costs of machinery and equipment, including furnishing and fixtures, as well as working capital expenses.

  • The appointment of Robert Sotir of Batavia, organizer for the Bricklayers and Allied Craftworkers Local 3 NY, to the GLOW Workforce Development Board for a term at the discretion of the GLOW chief executive officers.

GOVERNOR NOMINATES OLTRAMARI

It also was announced that Gov. Kathy Hochul has nominated Laurie Oltramari of Batavia to serve as a representative on the Rochester-Genesee Transportation Authority board for a term of six years.

Contacted today, Oltramari, senior library clerk at Genesee Community College, said she initially was nominated by the Genesee County Legislature and went through "a lengthy process of submitting documentation and answering questions in terms of financial disclosures, conflict of interest, background check, public officers law, and board duties."

"I received notification yesterday that I was nominated by the governor to the Senate. I am now awaiting my Senate confirmation," said Oltramari, who previously served as executive director of the Downtown Batavia Business Improvement District.

March 16, 2022 - 7:54pm

Officials of the Genesee County Economic Development Center are asking Genesee County legislators to consider expanding the “jurisdictional reach” of a locally controlled funding unit to facilitate $218 million in bond funds for Rochester Regional Health’s expansion projects.

Speaking at the legislature’s Ways & Means Committee meeting this afternoon at the Old County Courthouse, GCEDC President Steve Hyde encouraged passage of a resolution that would permit the Genesee County Funding Corp. to act as a conduit bond issuer for a business enterprise – either for-profit or not-for-profit – located in Genesee County that has operations directly or through affiliated entities in other counties in New York State.

The resolution, which was passed by the committee and forwarded to the full legislature, calls for an expansion of the “mission and public objective” of the GCFC to promote economic development and expand the jurisdictional reach by making the GCFC eligible to issue bonds for projects outside of Genesee County.

If passed, Rochester Regional Health, which operates United Memorial Medical Center in Batavia along with health care facilities in other counties, would be the beneficiary of the amendment to the GCFC’s current certificate of incorporation.

Hyde said that RRH is planning to invest $42 million in Batavia, primarily on the construction of a 105,000-square-foot medical center off Route 98, north of the city, and another $50 million or so on an expansion in Potsdam (St. Lawrence County).

“That’s almost $100 million in new money plus they are refinancing existing debt,” he said, pointing out that the issuance of the bond through GCFC would enable RRH to get a tax-exempt corporation interest rate instead of a taxable rate. “If not, they would have to seek multiple bonds in a number of communities and the fees would be much higher.”

He said RRH leadership approached the GCEDC “to use our GCFC, which is a county affiliate that we manage on your (the legislature’s) behalf.” The GCFC board consists of five members, all appointed by the legislature.

Mark Masse, GCEDC senior vice president of operations, said Genesee County has seen tremendous growth of companies with locations in other counties.

“This won’t affect the county’s bond rating,” he said. “It is similar to a PILOT (payment in lieu of taxes) with no risk to the county.”

Hyde said RRH is focusing on the adaptive reuse of its North Street and Bank Street campuses, including expanding senior health care at the Jerome Center and possible razing a couple buildings on North Street because parking is an issue.

“And there will be more specialties at the new medical center, such as cardiac care and surgical (improvements),” he said.

Should the legislature vote in favor of the resolution, it would not change the fact that every project connected to the GCFC would have to be approved by the governing body and a public hearing would have to be held for tax exempt circumstances, Masse said.

County Attorney James Wujcik said the resolution’s wording was appropriate, adding that the expansion of the GCFC territory “makes Genesee County more attractive for investment.”

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