News & Events

NOTICE OF SUPPLEMENTAL PUBLIC HEARING

06/07/19

NOTICE IS HEREBY GIVEN that a supplemental public hearing pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), will be held by the Town of Brookhaven Local Development Corporation (the “Issuer”) on the 19th day of June, 2019, at 11:00 a.m., local time, at One Independence Hill, 2nd Floor, Economic Development Office Conference Room, Farmingville, New York 11738 in connection with the following matters:

American Organic Energy, LLC, a New York limited liability company, on behalf of itself and/or the principals of American Organic Energy, LLC and/or an entity formed or to be formed on behalf of any of the foregoing (collectively, the “Company”), has applied to the Issuer to issue its tax-exempt solid waste disposal facility bonds in an amount presently estimated to be $80,000,000, but not to exceed $95,000,000 (the “Series 2019A Bonds”), pursuant to Section 142(a)(6) of the Code, or its taxable solid waste disposal facility bonds in an amount presently estimated to be $20,000,000, but not to exceed $30,000,000 (the “Series 2019B Bonds” and together with the Series 2019A Bonds, collectively, the “Series 2019 Bonds”), or a combination thereof, in an estimated aggregate principal amount presently estimated to be $100,000,000, but not to exceed $125,000,000, the proceeds of which will be used for the following purposes (collectively, the “Project”):

(A) the financing or refinancing of the construction, renovation, installation, equipping or improvements of an approximately 6.0 acre parcel of land that is encompassed as part of a larger 62.00 acre parcel of land located at 445 Horseblock Road, Yaphank, New York 11980, and the construction and equipping of an approximately 74,500 square foot building to be located thereon including, without limitation, pre-processing equipment, odor control, anaerobic digestion tanks, by-product processing, gas cleaning and compression engines (the “Facility”); and

(B) the payment of all or a portion of the costs incidental to the issuance of the Series 2019 Bonds, including issuance costs of the Series 2019 Bonds, capitalized interest and any reserve funds as may be necessary to secure the Series 2019 Bonds. The Facility will continue to be owned, operated and/or managed by the Company.

The proceeds of the Series 2019 Bonds will be loaned by the Issuer to the Company to pay the costs of the Project pursuant to the terms of a Loan Agreement between the Issuer and the Company. The Series 2019 Bonds will be special obligations of the Issuer payable solely from loan payments made by the Company to the Issuer pursuant to the Loan Agreement and certain other assets of the Company pledged to the repayment of the Series 2019 Bonds. The Series 2019 Bonds shall not be a debt of the State of New York or any political subdivision thereof, including the Town of Brookhaven, and neither the State of New York nor any political subdivision thereof, including the Town of Brookhaven, shall be liable thereon.

A representative of the Issuer will, at the above-stated time and place, hear and accept oral and written comments from all persons with views in favor of or opposed to either the issuance of the Series 2019 Bonds, the granting of other financial assistance contemplated by the Issuer including a mortgage tax exemption or the location or nature of the Project.Minutes of the hearing will be made available to the Supervisor of the Town of Brookhaven. Approval of the issuance of the Series 2019A Bonds by the Town of Brookhaven, through the Town Supervisor, is necessary in order for the interest on the Series 2019A Bonds to be excluded from gross income for federal income tax purposes.

The Issuer previously conducted public hearings with respect to the Project on October 25, 2017 and January 26, 2018.

Dated: June 7, 2019 TOWN OF BROOKHAVEN LOCAL DEVELOPMENT CORPORATION

By: Frederick C. Braun

Title: Chairman

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