FREEHOLD — The Monmouth County Improvement Authority (MCIA) completed on July 25 the sale of $13,995,000 in bonds on behalf of Brookdale Community College, Lincroft section of Middletown, which will use the money to renovate and expand the college’s student life center. The sale of the 30-year bonds achieved a true interest cost of 4.935 percent.

"The Brookdale Student Life Center financing is a good example of how the MCIA can design a financing — in this case a lease-financing — that meets the specific needs of an individual entity," said John Kay. chairman of the authority.

The college, by working through the improvement authority, was able to finance the center without the need for a county guaranty of the bonds. The MCIA assisted college officials in obtaining credit ratings from all there major credit rating agencies, receiving credit ratings of A1 from Moody’s, A+ from Standard & Poor’s, and A+ from Fitch. The authority’s lease financing of the project requires the college to make payments equal to the principal and interest payments on the bonds.

First Union National Bank was selected to underwrite the bonds.

"We had three bidders, and the bids were very close, which meant they were competitive. I’m very happy. I think we got a very competitive interest rate," said George Fehr, vice president for business and finance at Brookdale. "I’m also happy the process is complete and now we can complete the student life center projects."

He also credited the MCIA financing team for its work in structuring and implementing the financing: "They were local people we were familiar with."

The college has begun construction of the 45,000-square-foot addition and will be able to continue to operate food service at the existing student center during the 12-month construction period. Renovations to the existing 34,000-square-foot student center will also be performed.

The new student center will offer space for meetings, exhibits, lectures and conferences; a college store; a student lounge; food and banquet services; an auditorium for college and community use; and Brookdale’s information center. The anticipated opening for the center is Feb. 3, 2003.

Brookdale’s enrollment has grown from 7,000 in 1974 to 11,500 in 1998. The school serves approximately 30,000 students through college, and business and community development programs.

The MCIA has successfully completed other stand-alone financings for the county including: the Monmouth County Correctional Institution facility and the county’s original Open Space Acquisition Trust Fund. Locally, the improvement authority’s lease financing has been used to build schools, water supply systems, municipal complexes and community centers.

The 15-year-old authority, with the sale of the bonds for Brookdale, has provided financing for more than $700 million in capital projects and equipment for county municipalities, boards of education, local utility authorities and county government entities.