The Oneida Daily Dispatch, LEGAL NOTICE NOTICE OF PUBLIC HEARING ON PROPOSED PROJECT AND FINANCIAL ASSISTANCE RELATING THERETO Notice is hereby given by Madison County Capital Resource Corporation (the “Issuer”) that a public hearing pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), and, as required by the Issuer’s certificate of incorporation, Section 859-a of the General Municipal Law of the State of New York will be held by the Issuer on the 13 day of July, 2015 at 11:00 o’clock, a.m., local time, at the Eaton Town Hall located at 35 Cedar Street in the Village of Morrisville, Town of Eaton, Madison County, New York, in connection with the following matters: Morrisville College Foundation, Inc., a New York not-for-profit corporation (the “Borrower”), has submitted an application (the “Application”) to the Issuer, a copy of which Application is on file at the office of the Issuer, which Application requested that the Issuer consider undertaking a project (the “Project”) for the benefit of the Borrower, said Project consisting of the following: (A) (1) the refinancing, in whole, of the outstanding Civic Facility Revenue Bonds (Morrisville State College Foundation – Student Housing Project), Series 2005A in the original aggregate principal amount of $11,815,000 (the “Prior Series 2005 Bonds”) issued on or about June 23, 2005 by Madison County Industrial Development Agency (the “Prior Issuer”) and the outstanding Civic Facility Revenue Bonds (Commons II, LLC - Student Housing Project), Series 2008A in the original aggregate principal amount of $16,650,000 (the “Prior Series 2008 Bonds” and, collectively with the Prior Series 2005 Bonds, the “Prior Bonds”) issued on or about January 30, 2008 by the Prior Issuer, the proceeds of which Prior Bonds provided financing for two projects (collectively, the “Bond Project”) consisting of the following: (a) the acquisition of various interests in various parcels of land located on South Road and/or South Street in the Town of Eaton, Madison County, New York (collectively, the “Bond Land”), (b) the construction on the Bond Land of an approximately 80,000 square foot, 51 unit, 200 bed student housing facility and an approximately 90,000 square foot, 57 unit, 228 bed student housing facility and certain related improvements (collectively, the “Bond Facility”) and (c) the acquisition and installation therein and thereon of certain machinery and equipment (the “Bond Equipment”) (the Bond Land, the Bond Facility and the Bond Equipment hereinafter collectively referred to as the “Bond Project Facility”), all of the foregoing constituting student housing facilities operated by Morrisville Auxiliary of State University College of Agriculture and Technology at Morrisville, N.Y., Incorporated, a New York not-for-profit corporation (the “Manager”), and (d) the payment of a portion of the costs incidental to the issuance of the Prior Bonds, including issuance costs of the Prior Bonds and any reserve funds that were necessary to secure the Prior Bonds; and (2) the refinancing, in whole or in part, of the outstanding conventional loan (the “Prior Loan”) incurred by the Borrower to provide financing for a project (the “Loan Project”) (the Loan Project and the Bond Project being collectively referred to as the “Prior Project”) consisting of the following: (a) the construction, on an approximately 115 acre parcel of land (the “Loan Land”) located at 4414 Route 20 in the Town of Nelson, Madison County, New York approximately 3 miles west of the main campus of the State University College of Agriculture and Technology at Morrisville, N.Y. (a/k/a Morrisville State College) (the “College”), of an equine physiology and rehabilitation center (the “Loan Facility”) and (b) the acquisition and installation therein and thereon of certain machinery and equipment (the “Loan Equipment”) (the Loan Facility and the Loan Equipment being collectively referred to as the “Loan Project Facility”), all of the foregoing constituting a publicly accessible equine physical rehabilitation training center housing the College’s thoroughbred racing and equine physical rehabilitation programs; (B) the financing of all or a portion of the costs of the foregoing by the issuance of revenue bonds of the Issuer in one or more issues or series in an aggregate principal amount sufficient to pay the cost of undertaking the Project, together with necessary incidental costs in connection therewith, presently estimated to be an amount not to exceed $30,000,000 (the “Obligations”); (C) paying a portion of the costs incidental to the issuance of the Obligations, including issuance costs of the Obligations and any reserve funds as may be necessary to secure the Obligations; and (D) the making of a loan (the “Loan”) of the proceeds of the Obligations to the Borrower or such other person as may be designated by the Borrower and agreed upon by the Issuer. The Issuer is considering whether (A) to undertake the Project, (B) to finance the Project by issuing, from time to time, the Obligations, (C) to use the proceeds of the Obligations to pay the cost of undertaking the Project, together with necessary incidental costs in connection therewith, and (D) to provide certain exemptions from taxation with respect to the Project, including (1) exemption from mortgage recording taxes with respect to any documents, if any, recorded by the Issuer with respect to the Project in the office of the County Clerk of Madison County, New York or elsewhere, and (2) exemption from deed transfer taxes on any real estate transfers with respect to the Project, if any. If issuance of the Obligations is approved, interest on the Obligations will not be excludable from gross income for federal income tax purposes unless (A) pursuant to Section 147(f) of the Code and the regulations of the United States Treasury Department thereunder (the “Treasury Regulations”), the issuance of the Obligations is approved by the Board of Supervisors of Madison County, New York after the Issuer has held a public hearing on the nature and location of the Project Facility and the issuance of the Obligations; and (B) pursuant to Section 145(a) of the Code, all property which is to be provided by the net proceeds of the Obligations is to be owned by a Section 501(c)(3) organization or a governmental unit and at least ninety-five percent (95%) of the net proceeds of the Obligations are used with respect to (1) governmental units and/or (2) the activities of Section 501(c)(3) organizations which do not constitute “unrelated trades or businesses” (as defined in Section 513(a) of the Code) with respect to such Section 501(c)(3) organizations. If the Issuer determines to proceed with the Project and the issuance of the Obligations, (A) the proceeds of the Obligations will be loaned by the Issuer to the Borrower pursuant to a loan agreement (the “Agreement”) requiring that the Borrower or its designee make payments equal to debt service on the Obligations and make certain other payments to the Issuer and (B) the Obligations will be a special obligation of the Issuer payable solely out of certain of the proceeds of the Agreement and certain other assets of the Issuer pledged to the repayment of the Obligations. THE OBLIGATIONS SHALL NOT BE A DEBT OF THE STATE OF NEW YORK OR MADISON COUNTY, NEW YORK, AND NEITHER THE STATE OF NEW YORK NOR MADISON COUNTY, NEW YORK SHALL BE LIABLE THEREON. The Issuer has determined that the Project constitutes a “Type II action”, as said quoted term is defined in the regulations issued pursuant to Article 8 of the Environmental Conservation Law (the “Regulations”), and accordingly that no environmental impact statement or any other determination or procedure is required under the Regulations regarding the potential environmental impact of the Project. The Issuer will at said time and place hear all persons with views on the location and nature of the proposed Project, the financial assistance being contemplated by the Issuer in connection with the proposed Project or the proposed plan of financing the proposed Project by the issuance from time to time of the Obligations. A copy of the Application filed by the Borrower with the Issuer with respect to the Project, including an analysis of the costs and benefits of the Project, is available for public inspection during business hours at the offices of the Issuer. A transcript or summary report of the hearing will be made available to the members of the board of directors of the Issuer and to the Board of Supervisors of Madison County, New York. Approval of the issuance of the Obligations by Madison County, New York, acting through its elected Board of Supervisors, is necessary in order for the interest on the Obligations to qualify for exemption from federal income taxation. Additional information can be obtained from, and written comments may be addressed to: Kipp Hicks, Chief Executive Officer, Madison County Capital Resource Corporation, Madison County Center for Economic Development, 3215 Seneca Turnpike, Canastota, New York 13032; Telephone: 315-697-9817. Dated: June 23, 2015. MADISON COUNTY CAPITAL RESOURCE CORPORATION Kipp Hicks, Chief Executive Officer
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