DON’T FORGET THE BOARD RESOLUTION APPROVING A NEW CAPITAL PROJECTS
It should be standard practice at agency board meetings to present new capital projects for the Board’s approval and ideally utilizing a stand-alone resolution. This is extremely critical for projects that are ultimately financed through tax-exempt financings, such as the IAC Capital Finance Program. Tax Counsel for DASNY, or the county IDAs such as Build NYC, need to see that the board intended to use tax-exempt financing and to refinance any out of pocket expenditures with the financing. IAC has been using a resolution template (click here) which is acceptable to all tax counsels.
We advise all our members to use this template for all projects where borrowing is contemplated, whether or not the borrowing is tax-exempt or not. Without the resolution, you are limited in what you can finance.