Dobbs Development Corp. Helps Masters School

The Masters School is going to get by with a little help from its friend, the Dobbs Ferry Local Development Corporation (DFLDC). The DFLDC unanimously voted Thursday to help the private school secure $35 million in tax exempt bonds to fund a sports and cultural complex on its campus at 49 Clinton Ave. in Dobbs Ferry.

“The Board of Directors of the Dobbs Ferry Local Development Corporation (DFLDC) voted unanimously (5-0) to pass a resolution authorizing the DFLDC to issue and deliver the revenue bonds for the Masters School Project,” said Dobbs Ferry Mayor Hartley Connett, who serves as chairman of the DFLDC. “These revenue bonds are non-recourse funding instruments where there is no risk of default to the DFLDC or the Village of Dobbs Ferry.”

The Masters School is a private college prepatroy day and boarding school that serves students in fifth through twelvfth grade. The DFLDC was created in 2010 to help stimulate and aid local businesses and non-profits by offering them tax exempt or low interest loans and helping them receive grant funding. The Dobbs Ferry Board of Trustees must approve all of the DFLDC’s actions.

Click here for more information on the functions of a local development corporation. 

“We put the idea of tax exempt funding with the DFLDC playing a role in that, and they [The Masters School] decided to do that with the DFLDC,” said Connett. “They were also approached by Westchester County’s LDC and other entities, but they chose to go with the DFLDC because they wanted to do something to give back to the village. It’s a good opportunity all around and for Dobbs Ferry.”

The DFLDC receives some compensation for administration and other fees in the bond agreements, which Connett says will be used to help out its Main Street businesses. The DFLDC’s first dealing was working as a conduit for Children’s Village, also a day and boarding school, to secure tax exempt bonds so the school could refinance its debt at a lower interest rate.

The DFLDC made about $110,000, so far, during that deal and will have close to $250,000 with the transaction with The Masters School. There are strict guidelines set by the state on how the funds can be spent. 

“They money is going to be employed to basically help the downtown businesses, maybe in the form of new sidewalks or sidewalk repair, or new trees and other infrastructure upgrades,” said Connett.

Connett said that while it can’t be used to purchase things like police cars for the Village, —it can be used to invest in creating new parking or offering low or no interest loans to businesses in Dobbs Ferry who need to relocate, but want to stay in the village. 

“I think it’s a really good thing, at no cost to the taxpayers,” said Connett. “It’s a way to generate additional revenue from tax exempt entities that we can use to develop economic activity and grown in the village.” 

Connett said the DFLDC would discuss how to best use the funds at an upcoming meeting.

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