Brandeis University Upgrades Athletic and Information Technology Resources With MassDevelopment Tax-Exempt Lease
June 23, 2011
MassDevelopment has issued a $10 million tax-exempt lease on behalf of Brandeis University in Waltham, which will use lease proceeds to buy equipment and renovate both Lindsey Pool and University’s information technology network. Pool renovations will include new mechanical and electrical infrastructure, new locker rooms, repairs to the pool and pool deck, a new entryway, and lobby updates. Brandeis temporarily closed the pool due to deterioration of the pool's infrastructure and resulting maintenance issues, and reopening the pool has been one of Brandeis’s priorities. The University anticipates completing the project in early 2012.
“Tax-exempt leases offer interest rate savings for equipment and renovation projects such as Brandeis's work on Lindsey Pool,” said MassDevelopment President and CEO Marty Jones. “We’re pleased this low-cost financing can help the University complete one of its key capital projects.”
Established in 1947, Brandeis University is the only Jewish-sponsored nonsectarian university in the country. A graduate research institution with an undergraduate focus on liberal arts, Brandeis serves 3,300 undergraduates and 1,900 graduate students.
“Our partnership with MassDevelopment allows us to serve our students, by providing equipment and renovation projects that will enhance their University experience,” said Frances A. Drolette, Senior Vice President for Finance and Chief Financial Officer.
MassDevelopment’s tax-exempt leases act essentially as installment loans. An investor lends funds to the borrower to purchase equipment and complete any related renovations, and the borrower agrees to make periodic fixed-rate payments. Generally, the borrower leases the equipment for a length of time approximating the useful economic life of the equipment. At the end of the lease term, the borrower typically pays a nominal amount and assumes ownership of the equipment.
MassDevelopment, the state’s finance and development agency works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2010, MassDevelopment financed or managed 238 projects in 104 communities across the state generating investment of nearly $1.4 billion in the Massachusetts economy.