Albany - (WALK) Suffolk County has the go-ahead from New York State to sell its H. Lee Dennison office building in Happauge, then lease it back for 20 years, a scheme county officials say could net Suffolk approximatley $67 million.
Governor Cuomo reportedly signed legislation Friday to permit the sale. County officials say the anticipated revenue is already in the county budget and is necessary to meet operating expenses, including payroll to the end of this year.
The Legislature's Ways & Means Committe is scheduled to authorize selling the building to the Suffolk Judicial Facilities Agency (JFA), and the leaseback from the JFA.
The JFA would then introduce the county plan to Wall Street ratings companies, shop the property in mid-October with a deal expected by mid-November, when Suffolk would pocket the cash.
The authorization permits Suffolk to issue $70 million in bonds for 20 years to purchase the building (photo). The county would then make annual lease-payments equal to the cost of repaying the bonds, estimated by officials at between $3.5 and $4 million.
Photo: Suffolk County