Albany, NY (November 16, 2004) - In a collaborative effort designed to help spur urban redevelopment in Albany, Citizens Bank's operations in New York, the City of Albany and the Capital District YMCA today announced details of a funding package that will allow for construction of a new YMCA in North Albany. The deal provides the go ahead for a visionary and innovative project that was first conceived by community leaders in the late 1990s.
The funding package - the first of its kind to be applied to a YMCA in the United States - uses the New Markets Tax Credit, a financial tool that was created by the Community Renewal Tax Relief Act in December 2000 to encourage private investment in distressed areas. Under terms of the agreement, Citizens Bank will invest nearly $3.6 million in the North Albany YMCA in the form of a favorable loan package that will result in substantial savings to the Capital District YMCA. The deal also includes a partnership between Citizens Bank and the National Development Council, a not-for-profit organization that works with communities to create job opportunities and generate investment in distressed areas.
"We believe this partnership provides a cornerstone for how the public and private sectors can work together to help rebuild and foster growth within our urban neighborhoods," said Richard M. Kulbieda, President and CEO of Citizens Bank's operations in New York. "When Citizens Bank established its state headquarters in Albany, we made a commitment to become an involved and effective community partner. With our investment in the North Albany YMCA, we are not only providing the capital for this project, but we are also making a statement about the extraordinary potential that we believe exists in this community."
"We are grateful to Citizens Bank and to the many entities that have helped turn this dream into a reality," said John Flynn, president and CEO of the Capital District YMCA. "Not only did Citizens Bank provide the capital for this project, but by investing in us, it showed it believes in our mission and in the residents of North Albany. It structured this loan in terms that are very favorable to us, which will allow the Y to reap hundreds of thousands of dollars in savings. Just as this project is not your typical YMCA, I can assure you this was not your typical business arrangement. The bottom line is that we wouldn't be here today were it not for Citizens Bank. It listened to us, it stepped up to the plate and it showed it is a great supporter and great partner in this project."
"I would also like to thank Albany Mayor Jerry Jennings, who has been the driving force behind the North Albany YMCA for so many years. Mayor Jennings has been an unwavering supporter of this plan to build a true center for children, families and local businesses that would provide positive and productive community programs."
Today's announcement culminated in a groundbreaking on North Pearl Street, adjacent to Albany Public School 20, where the North Albany YMCA will be built. During the ceremony, Kulbieda and Flynn joined Albany Mayor Jerry Jennings in operating a bulldozer to unearth the first batch of dirt. Surrounding the officials were about a dozen children from Albany Public School 20.
The 40,000 square foot, North Albany YMCA will include a number of unique elements to benefit the North Albany community: a child day care center for 56 neighborhood children, a branch of the Albany Public Library, an employment-training center, a community computer room and several additional community rooms. The facility will also feature several traditional YMCA amenities including a senior service center, a four-lane twenty-five yard pool, a double gymnasium with an elevated track, and a state-of-the-art fitness center. In addition, the students of Albany Public School 20 will use the gymnasiums and pools during the day.
The North Albany YMCA will result in 150 new full- and part-time jobs. The facility is slated to open in the fall of 2005.
"The YMCA was a major influence in my life growing up in Albany," said Mayor Jerry Jennings. "Thanks to Citizens Bank, the Albany Housing Authority, the Dormitory Authority of the State of New York, the New York State Office of Family and Children Services and our other very generous partners, this outstanding facility will play a critical role in helping to foster the physical and intellectual development of the residents of North Albany."
"The project carries a price tag of $6.7 million. The initial $2 million investment was provided by the Albany Housing Authority. Additional financing has come from the Dormitory Authority of the State of New York, the New York State Office of Family and Children Services and individual donors."
Citizens, currently doing business in New York under the Charter One Bank name, has more than 200 branches across the state.
After its August 31, 2004 acquisition by Citizens Financial Group, Inc., Charter One Bank, N.A., is a $49 billion bank operating in Illinois, Indiana, Michigan, Ohio, Connecticut, Massachusetts, New York, Pennsylvania and Vermont. It has more than 680 offices and 1,020 ATMs. Charter One is a subsidiary of Citizens Financial Group, Inc., a $131 billion commercial bank holding company headquartered in Providence, R.I. The Charter One Web site is www.charterone.com.