MassDevelopment Lease Funds Equipment for Tufts Shared Services
January 25, 2012
Kelsey Abbruzzese, MassDevelopment, 617-330-2086 & 617-448-9077
William Hunt, Tufts Shared Services, 617-636-8822
MassDevelopment has issued a $2.5 million tax-exempt lease on behalf of Tufts Shared Services, Inc., a nonprofit that provides services on a fee basis to participating nonprofits, primarily Tufts Medical Center in Boston and Tufts University in Medford and Somerville. Tufts Shared Services will use lease proceeds to buy and install two replacement chillers.
“MassDevelopment’s value lease program is a low-cost way for nonprofits to finance equipment they need,” said MassDevelopment President and CEO Marty Jones. “Just as Tufts Shared Services supports other organizations, we're pleased to aid the company with this lease.”
Tufts Shared Services, which has roots dating to 1930 and was incorporated as a 501(c)(3) nonprofit in 1968, works to support the activities of the University and the Medical Center without duplicating efforts. The organization currently serves the two institutions by managing the Utility Supply Center at the hospital, parking facilities, and a copy center.
“Once again, it was a pleasure and hassle-free experience working with the folks at MassDevelopment,” said Tufts Shared Services Controller Maria Pisa. “We were able to obtain a lease through MassDevelopment, which enabled us to replace obsolete chillers with new high-energy-efficient chillers with modern controls. These new chillers will result in a 40 percent reduction in our electrical energy consumption. We look forward to working with MassDevelopment in the future.”
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 FY2011, MassDevelopment financed or managed more than 300 projects generating investment of $3.8 billion in the Massachusetts economy. These projects are projected to create more than 10,000 jobs (2,547 permanent and 8,129 construction), and build or rehabilitate more than 1,000 residential units.