With municipal (and family) budgets still strained, New Rochelle continues to explore every opportunity for efficiency and cost-savings. In this spirit, the City has just refinanced the debt on the New Roc City parking garage, reducing the interest rate by more than 3%, for a net savings to taxpayers of roughly $4.5 million over the 11-year life of the bonds.

This transaction is a little more complicated than a standard mortgage refinancing, because the owner of the garage prior to now had been the New Rochelle Industrial Development Agency, which leased it to a Local Development Corporation (LDC) established at the time of New Roc’s construction. The City then sub-leased the garage from the LDC, with lease payments calibrated to equal annual debt service … so for all intents and purposes, the City was already responsible for paying off the bonds. In order to achieve a lower interest rate, the City will discontinue this lease arrangement and assume direct ownership of the garage.

It’s a very good deal for taxpayers.