Archive for August, 2011

Lease Purchase Auditorium Seating, Classroom Furniture, Library Furniture, and Lab Equipment in NJ

Wednesday, August 31st, 2011

Longo has been approached by many of our school district clients eager renovate auditoriums into modern theaters, libraries into futuristic media centers, and laboratory classrooms into modern lab space. The question of “funding” always comes up when school building/renovation plans of this magnitude are discussed. We are pleased to announce the availability of the Lease Purchase Bidding Option to New Jersey school districts and municipalities.

Below I have included a description of the “lease purchase bidding” option run by the Middlesex Regional Educational Services Commission. I have also included frequently asked questions about “lease purchase bidding” regarding how it works, what can be purchased, and why it is a financially-sound tool available for school districts and municipalities…

Lease Purchase Bidding…What Is It?

Lease Purchase Bidding is a highly specialized area of purchasing; it incorporates a thorough understanding of public purchasing, tax-exempt finance, investment and commercial banking, vendors and suppliers, and how they all fit to optimally finance the particular equipment and projects needs of government entities. Doing it right can save tens of thousands of dollars in interest over the term of a lease purchase. Doing it effectively takes practice and experience.

Heading MRESC’s Lease Purchase Bidding/Financial Advisory Service is Dennis Balodis. He brings over thirty years experience in equipment finance with the last twenty dedicated to tax-exempt lease purchase financing for New Jersey school districts and governmental entities. Dennis developed the Lease Purchase Bidding model in 1994 and has advised and successfully conducted more of these than anyone else in New Jersey. He has long believed that this bidding service should be under the public umbrella to truly optimize the use of tax dollars and has joined the MRESC to provide this service.

To contact:      Dennis R. Balodis

Phone:  (732) 777-9848, ext. 6622

E-mail: DBalodis@mresc.k12.nj.us

Frequently Asked Questions:

Since both bond and lease purchase are tax-exempt, what is the difference between them?

A bond and a tax-exempt lease purchase both give their investors interest income which is tax free. A bond pledges the full faith and credit of a governmental entity. The bond contractually commits the governmental body to payments that will be made beyond the fiscal year; this guarantees that payments will be made from tax dollars for the life of the issue. Lease purchase payments are made from the current expense portion of the budget. The Lease Purchase Agreement is a series of self-renewing one year contracts and contains a “funding out clause” that will allow for a government to non-appropriate funds and get out of the lease. Although on paper this is all well and good, in reality, we are dealing with tax-exempt issues. An event of non-appropriation for a lease purchase is reported to the bond rating agencies which serves as a major black mark against that entity when they try to get a decent rate for a future bond issue.

Do I need to bid on lease purchase financing?

Lease Purchase must be bid!

“N.J.A.C. 5:34-3.2 Application of Bidding Requirements

(a)        All multi-year contracts, including all multi-year leases and multi-year leases with option to purchase, which are authorized under N.J.S.A. 40A:11-15(7), 40A:11-15(15) or 18A:18A-42(f), and other multi-year contracts subject to N.J.S.A. 40A:11-15 and 18A:18A-42 for the procurement of goods or services shall be subject to competitive bidding if the cumulative amount to be expended during the duration of the multi-year lease or contract exceeds the threshold for competitive bidding for the contracting unit.”

What can be lease purchased?

Any equipment or project that is essential to the operation of a governmental entity can be lease purchased. This runs the gamut from computers, technology, musical instruments, buses, vehicles, grounds keeping equipment, to textbooks and roofs.

What cannot be lease purchased?

Disposable or consumable products with a life span of less than one year should not be included.

Can different types of equipment be mixed on the same lease purchase?

Yes, different types of equipment can be put on the same lease. In fact, it is advisable to do so. When bidding for a lease purchase, the objective is to obtain the utility of money and asking a lender to “loan” money to a governmental entity for a period of time. The financial institution is going to make a credit decision on the creditworthiness of the governmental entity and the types of equipment which is considered collateral for the “loan”. The balance of strong (readily re-marketable equipment such as buses, routers and switches, etc.) and soft (less re-marketable equipment such as software licenses, band uniforms, etc.) collateral can enhance the attractiveness of a lease purchase transaction.

Many equipment vendors have financing programs. Since the equipment is purchased off Cooperative Pricing, WSCA, State Contract or other purchasing vehicle, can’t I use their programs?

First, the obvious answer is “no”, since financing is not bid as a separate item. Second, is common sense, when equipment or projects are cooperatively bid, the goal is to get the best volume pricing for the products obtainable in the market. The higher the volume, the cheaper it is to produce. Lease purchase, however, is an individualized “loan” to a governmental entity based upon creditworthiness types of collateral and the size of the individual transaction. If lease purchase was offered as a line item on a bid, the rate offered would have to reflect the weakest credit and the smallest transaction. Unlike commercial transactions, the tax-exempt lease purchase cannot legally be supported by a vendor because it would nullify the tax-exempt status.

Why use lease purchase financing?

A lease purchase is an important financial tool that can be effectively used to limit and cushion the tax impact of equipment and project acquisitions. Each governmental entity has specific and unique fiscal needs. The goal of a well written lease purchase bid is to structure a repayment plan that meets those unique needs while best portraying the entity to the bidding community.

Who is the bidding community?

When shopping for money, you go to the banks and financial institutions that are direct lenders. We believe that the banking community that wants to do business with a governmental entity is the primary target market for lease purchase bids.

Since manufacturers know their products, why can’t they give the best interest rates?

This is tax-exempt finance, the driving force behind the lower interest rates are the ability to shelter income taxes. The tax code only allows a manufacturer to deduct a small portion of the sales price of their goods when lease purchased. Most of the “captive” vendor finance programs are run by banks and finance companies that can take full advantage of the tax deduction. Since these financial companies are brought in by their vendors, there is limited competition; lack of competition equates to higher rates.

Can different equipment that will be delivered, accepted, and paid for over a period of time be put on the same lease purchase?

We are proponents of aggregating all of your financing needs of a year into one lease purchase. The vendors who sell equipment deserve to be paid when their equipment is delivered. To facilitate multiple payments over a period of time, we structure the lease purchase to be funded into an interest bearing escrow account. This permits you to release a series of payments to your vendors when the different deliveries are made and earn interest income from the escrow account.

 

Longo Theater Seating Selected for Delbarton School’s New Arts Center

Wednesday, August 24th, 2011

Project: Fine Arts Center at Delbarton School

Location:  Morristown, New Jersey

Design Firm: NK Architects – Architect Project Profile Link – NK Architects excels at helping their educational clients accomplish their facility design objectives with a 38-year history of collaborating to create spaces that inspire learning and support and enhance evolving teaching methodologies assists their clients in attracting the best and brightest faculty and students.  Email to Contact NK Architects.

Below is an excerpt from the architect’s website:

Delbarton’s new 36,000 square foot, 630 seat Arts Center is a modern interpretation of the school’s predominantly stone buildings.

Please direct all inquiries with regards to school theater design and construction projects to the marketing department at Longo info@longoinc.com.  To request a seating space evaluation, email Anthony Stellatos (anthonys@longoinc.com).  Longo has been designing school theaters over 25 years.

Related Website Links & Downloads:

Lecture Hall Seating Projects throughout Rutgers University Campuses

New Performing Arts Seating at Alexander Kasser Theatre (Montclair State University) in Montclair, NJ

New Performing Arts Seating at Dolan Performance Hall (College of Saint Elizabeth) in Morristown, NJ

New Performing Arts Seating at Dorothy Young PAC (Drew University) in Madison, NJ

New Performing Arts Seating at Elizabeth B. Alton Auditorium (Stockton College)  in Galloway, NJ

New Seating at Macrae Theatre at The Pingry School in Martinsville, NJ

Planetarium Seating at Madeline D. and Joseph J. Longo Planetarium (County College of Morris) in Randolph, NJ

Seating Restoration at Count Basie Theater in Red Bank, NJ

Seating Restoration at Indian Hills High School Auditorium in Oakland, NJ

Jasper Library Furniture on New York State Contract

Wednesday, August 17th, 2011

Longo Associates is an authorized dealer of Jasper Library Furniture’s wood library furniture on New York State Contract. Below you will find contract discount percentages and products available under NY state contract. If you would like an library space evaluation, please call (800) 635-6646 or email info@longoinc.com.

Contract No. PC64799

$0 – $19,999 – 38%

$20,000 – $49,999 – 40%

$50,000 – $99,999 – 45%

$100,000 – $199,999 – 48%

$200,000+ – 50%

Inside Delivery: Upstate +8% of net, Downstate +10% of net

Warranty: 20 years

Contract Term: October 29, 2007 – October 28, 2012

Products Available:

Wood Library Shelving Website Link, Sherwood Wood Library Shelving Brochure

Wood Library Shelving End Panels Website Link

Wood Reference Desk Website Link, Infinity Reference Desk System Brochure, Wainwright Reference Desk System

Arlington Series Website Link, Arlington Series Brochure for Library Study Tables, Study Carrels and Computer Stations

Barrister Series Website Link for Library Study Tables

Deveraux Series Website Link, Deveraux Series Brochure for Library Study Tables, Study Carrels and Computer Stations

Versailles Series Website Link, Versailles Series Brochure for Library Study Tables, Study Carrels and Computer Stations

JLF Wood Finishes Website Link

Irwin Millennium Auditorium Seating on New Jersey Purchasing Contract

Friday, August 12th, 2011

Longo auditorium seating consultants providing FREE seating evaluations to public schools, universities/colleges, performing arts centers and municipal seating venues. If you would like an auditorium seating evaluation, please call (800) 635-6646 or email info@longoinc.com.

Related Website Links & Downloads:

Irwin Millennium Product Sheet Download

Irwin Seating Website Millennium Chair Product Info

Irwin Seating Website Millennium Chair Options

Millennium Chair Plastics & Powder Coat Finishes

Millennium Chair Fabrics

Longo Auditorium Seating-Theater Seating-Lecture Hall Seating Projects:

Lecture Hall Seating Projects throughout Rutgers University Campuses

New Performing Arts Seating at Alexander Kasser Theatre (Montclair State University) in Montclair, NJ

New Performing Arts Seating at Dolan Performance Hall (College of Saint Elizabeth) in Morristown, NJ

New Performing Arts Seating at Dorothy Young PAC (Drew University) in Madison, NJ

New Performing Arts Seating at Elizabeth B. Alton Auditorium (Stockton College)  in Galloway, NJ

New Seating at Macrae Theatre at The Pingry School in Martinsville, NJ

Planetarium Seating at Madeline D. and Joseph J. Longo Planetarium (County College of Morris) in Randolph, NJ

Seating Restoration at Count Basie Theater in Red Bank, NJ

Seating Restoration at Indian Hills High School Auditorium in Oakland, NJ

Chatham Middle School Media Center Furniture by Longo

Thursday, August 11th, 2011

Project:  Chatham Middle School Media Center – Link to video

Location:  Chatham, NJ

Design Firm:  DiCara Rubino Architects ; Firm’s website link to Chatham Middle School Media Center

Products:  Palmieri Library Furniture

Excerpt from DiCara Rubino’s website:

New 5,400 s.f. state-of-the-art Media Center

Please direct all inquiries with regards to school library planning and construction projects to the marketing department at Longo (info@longoinc.com).  To request a library space evaluation, email Anthony Stellatos (anthonys@longoinc.com).  Longo has been designing school libraries for over 40 years.

Related Website Links to Longo Library Services & Projects:

Contact Longo for School Library Furniture Design and Planning

Website link for Palmieri Library Furniture

Website link for Palmieri Library Furniture Lines

Website link for Palmieri Library Reference Desks

Auditorium Seating Restored To Original Brilliance at Indian Hills High School

Wednesday, August 10th, 2011

Project:  Auditorium Renovation at Indian Hills High School

Location:  Oakland, NJ

Design Firm:  DiCara Rubino Architects ; Firm’s website link to Indian Hills High School Project

American School & University’s Interiors Showcase Link for Indian Hills High School

Scope:  Auditorium Seating Restoration

Excerpt below is from the SchoolDesigns.com website:

To stay within budget, designers chose to work with the existing furniture and oversaw the refurbishment of each of the 726 auditorium chairs, rather than purchase new seating. The former primary-color rainbow configuration was replaced with elegant navy tone-on-tone checkerboard upholstery, a matte powder-coat finish on the chair structure, and classic wood arms.

Please direct all inquiries with regards to school auditorium seating restoration project to the marketing department at Longo (info@longoinc.com).  To request a auditorium seating evaluation, email Anthony Stellatos (anthonys@longoinc.com).  Longo has been restoring  school auditoriums for over 40 years.

Related Website Links & Downloads:

Irwin Seating Auditorium Seating Restoration Brochure

Count Basie Theatre Renovation – Seating Restoration Project in Red Bank, NJ

 

University Performing Arts Center Seating at College of Saint Elizabeth

Monday, August 8th, 2011

Project: Dolan Performance Hall at College of Saint Elizabeth

Location:  Morristown, New Jersey

Design Firm: NK ArchitectsArchitect Project Profile Link

Below is an excerpt from the architect’s website:

A new 700-seat, state-of-the-art fine and performing arts center for the College of Saint Elizabeth.  The building will contain classrooms, flexible seminar/meeting space and offices for the departments of Fine and Performing Arts, and the Graduate and Continuing Education departments.

Please direct all inquiries with regards to college theater and performing arts design and construction projects to the marketing department at Longo info@longoinc.com.  To request a seating space evaluation, email Anthony Stellatos (anthonys@longoinc.com).  Longo has been designing college performing arts centers for over 25 years.

Related Website Links & Downloads:

Longo at Rutgers University (multiple campuses)

Alexander Kasser Theater at Montclair State University

Alton Auditorium in Richard Stockton College

Dorothy Young Performing Arts Center at Drew University

Planetarium Seating project at County College of Morris

James Caldwell High School Center for the Performing Arts

Macrae Theatre at The Pingry School

Count Basie Theatre Renovation – Seating Restoration Project

 

 

Pingry School Theater Seating Provided by Longo

Monday, August 8th, 2011

Project: Macrae Theatre at The Pingry School

Location:  Martinsville, NJ

Architect Firm:  Farewell Mills Gatsch Architects – firm now known as Mills + Schnoering Architects, LLC – if your university is in need of architectural planning of cultural facilities and preservation and restoration of historic buildings, please contact M+S.

Theater Consultant: Fisher Dachs Associates – website link for The Pingry School Project

Below is an excerpt from the architect’s website about the project:

The building’s interior houses a 230-seat student theatre with stage, control booth, and catwalk system. Stage rigging and catwalks were designed to safely allow students to take part in the technical set-up and operation of productions as part of a comprehensive educational program. Supporting the theater are dressing rooms and a shop where scenery can be built and stored. The theater is placed at the heart of the addition, with access from a new lobby that provides a significant alternate access to the main building.

Please direct all inquiries with regards to school theater design and construction projects to the marketing department at Longo info@longoinc.com.  To request a seating space evaluation, email Anthony Stellatos (anthonys@longoinc.com).  Longo has been designing school theaters over 25 years.

Related Website Links & Downloads:

Auditoriums, Lecture Halls at Rutgers University

Alexander Kasser Theater at Montclair State University

Planetarium Seating project at County College of Morris

James Caldwell High School Center for the Performing Arts

Count Basie Theatre Renovation – Seating Restoration Project

Irwin Auditorium Seating Catalog

Irwin Theatre Seating Catalog

The \”Irwin Seating Difference\” Brochure

Modern Science Lab Design and Furniture Video by Nat Longo

Tuesday, August 2nd, 2011

Nat Longo discusses the modern school laboratory space and how efficient space planning can be achieved by utilizing innovating science furniture.

Please direct all inquiries with regards to private school laboratory planning, science furniture and construction projects to the marketing department at Longo info@longoinc.com. To request a consultant & laboratory space evaluation, email Nat Longo (nlongo@longoinc.com). Nat Longo has been building school science labs and commercial laboratories for over 25 years. Project lists are available from Longo if you wish to see where we have worked in NY, NJ, PA, CT, MA & RI.

Related Website Links & Downloads:

Planning Science Lab Facilities for Education Presentation – Laboratory Design Concepts

Science Lab Workstations by Longo

Millbrook School Science Labs in Millbrook, NY

Purnell School Science Lab Renovations in Pottersville, NJ

Academy of Holy Angels Science Lab in Demarest, NJ (Turnkey Construction Project)

Albertus Magnus High School Chemistry Lab Renovation in Bardonia, NY (Full Turnkey Construction Project)

Lecture Hall Seating at Rutgers by Longo Associates

Tuesday, August 2nd, 2011

Over the last few years Longo has been working with facility planners at Rutgers University to renovate a number of lecture halls and auditoriums.  Below are a list of university project links where Longo has provided Irwin Seating products at Rutgers University Campuses:

Beck Hall Auditorium, Livingston Campus

Hill Lecture Hall in Mathematical Sciences on Busch Campus, New Brunswick

Lucy Stone Auditorium, New Brunswick Campus

Main Lecture Hall in Engineering Building on Busch Campus, New Brunswick

Physics Lecture Hall, New Brunswick Campus

SERC Lecture Hall Room 111 on Busch Campus, New Brunswick

SERC Lecture Hall Room 118 on Busch Campus, New Brunswick

Tillet Auditorium, New Brunswick Campus

Related Website Links & Downloads:

Alexander Kasser Theater at Montclair State University

Alton Auditorium in Richard Stockton College

Dorothy Young Performing Arts Center at Drew University

Planetarium Seating project at County College of Morris

James Caldwell High School Center for the Performing Arts

Count Basie Theatre Renovation – Seating Restoration Project

Irwin Auditorium Seating Catalog

Irwin Theatre Seating Catalog

The \”Irwin Seating Difference\” Brochure