MassDevelopment.com: Press Room: MassDevelopment Pumps $106 Million in Low-Cost Financing into Central Massachusetts

MassDevelopment Pumps $106 Million in Low-Cost Financing into Central Massachusetts
July 2, 2007

Contact:
Adam Bickelman, MassDevelopment, 617-330-2086

MassDevelopment today announced the issuance of more than $106 million in tax-exempt bonds on behalf of Worcester Polytechnic Institute (WPI), Groton School and Youth Opportunities Upheld, Inc. (Y.O.U., Inc.) of Worcester. The three educational organizations will use bond proceeds to construct student housing, undertake campus renovations and refinance existing debt to realize long-term savings.

"Central Massachusetts has a robust network of nonprofit educational institutions and service organizations that play an important role in supporting the regional economy through job creation, capital expenditures and investment in local businesses," said Robert L. Culver, MassDevelopment president/CEO. "We are pleased to support WPI, the Groton School and Y.O.U., Inc. with this low cost financing so that they can continue to prepare teens, young adults and adults to be successful contributors to the state’s economy and its communities."

WPI will use an $86.6 million tax-exempt bond to construct a 232-bed, suite-style residence hall in 64 student apartments. The school’s expansion plans call for the construction of a 229-space parking garage, and the refunding of bonds issued in 1997.

Groton School will use $10 million in bond financing to renovate and expand public meeting space and faculty residences in the Hundred House and other campus facilities.

Y.O.U., Inc., a provider of educational support services to adolescents with emotional or behavioral challenges, will use a $9.47 million financing package to refinance existing debt and reduce its borrowing costs.

Jeffrey Solomon, WPI's Executive Vice President, stated that "The MassDevelopment tax exempt bonds are vital to our plans for the construction of a contemporary residence center, which will create expansion of upper-class student housing."

"Y.O.U., Inc. will use the increased resources established by this bond issuance to create life long learners and to redirect troubled youth into contributing members of the community," said Maurice J. Boisvert, Y.O.U., Inc.'s President & CEO.

Founded in Worcester in 1865, WPI’s 18 academic departments offer more than 50 undergraduate and graduate degree programs in science, engineering, technology, management, the social sciences, and the humanities and arts. WPI faculty work with students on cutting-edge research, leading to breakthroughs and innovations in fields like biotechnology, fuel cells, nanotechnology and information security. The Institute now enrolls more than 2,800 undergraduate and 1,000 full and part-time graduate students.

Founded in 1884 by Rev. Endicott Peabody, Groton’s mission includes the intellectual, moral and physical development of students in grades seven through 12. Now a coeducational, primarily residential school of 175 girls and 175 boys in grades eight through 12, Groton encourages students to meet higher standards for academic achievement, intellectual growth, ethical awareness and behavior, sportsmanship, athletic endeavor and service to others.

Founded in 1971 as an arm of the Worcester Juvenile Court to provide court diversion and prevention services to troubled adolescents, Youth Opportunities Upheld, Inc. is a leading child welfare and behavioral health organization in Massachusetts. Today, the agency has more than 30 programs providing outpatient family, community based, residential, educational, vocational and managed care services. Last year, Y.O.U., Inc. helped more than 8,000 children, adolescents and families.

MassDevelopment, the state’s finance and development authority, works with businesses, nonprofit organizations, financial institutions and local officials to stimulate economic growth across the Commonwealth. Between FY2004 and FY2006, MassDevelopment financed or managed 589 projects statewide representing an investment of more than $4 billion in the Massachusetts economy. These projects are supporting the creation of 5,505 housing units and more than 23,000 jobs: 12,381 permanent and 10,679 construction-related.