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PCN Upgrades to High Definition with Assistance from CCED

PCN to Upgrade to High Definition Television with Assistance from CCED

Conversion expected to occur within the next 30 months

Carlisle, PA – Cumberland County Economic Development (CCED), through the Cumberland County Industrial Development Authority (CCIDA), recently awarded $3,400,000 in tax exempt financing to the Pennsylvania Cable Network (PCN).  This loan will enable PCN, a not-for-profit corporation, to refinance existing debt, purchase equipment, and will allow them to fully upgrade to High Definition Television (HDTV) within the next 30 months.  The tax exempt transaction was completed in partnership with Graystone Bank and Thomas F. Smida of Mette, Evans & Woodside acting as Bond Counsel. CCED Executive Director Omar Shute said, “CCED was delighted to work with and assist PCN in this very exciting project.  In 2010, we have approved more than $30 Million in economic development financing – a record for CCED – which reinforces our position as one of the premier economic development operations in Pennsylvania.”  Further, CCIDA Chairman Kenneth Tuckey stated, “It is always encouraging to see organizations like PCN grow and invest in our region. We at the CCIDA are pleased to be a part of this development.” The HDTV conversion is part of PCN’s strategy to continue its mission as a viable public service covering the politics and issues affecting all Pennsylvanians.  During this process PCN will be able to maintain all of its current staff and possibly expand in the future.  This project will solidify its future as a vibrant Cumberland County Company.  In addition, PCN President & CEO Brian Lockman said, “PCN has long been thought to be the nation’s pre-eminent state public affairs network. This financing package, along with the continued support of Pennsylvania’s cable television companies, will enable us to maintain our leadership position and allow us to continue  serving the people of Pennsylvania with quality non-commercial public affairs programming.” To check for eligibility and for further information regarding tax exempt financing and other financing programs available through CCED, visit our website at www.cumberlandbusiness.com or contact Omar A. Shute at 717.240.7182 or omar@cumberlandbusiness.com.

About Tax Exempt Financing

Tax Exempt Financing is a commercial loan between an eligible enterprise (as determined by the IRS code) and a bank, wherein the Industrial Development Authority plays a limited intermediary role.  All loan funds come from a bank who assumes all of the credit risk for the transaction.  In addition, all of the property improvements financed are subject to property tax which creates more revenue as the improvements increase the property’s value. This financing mechanism allows the bank to exclude the interest income it receives from the loan from its federal income taxes.  The bank is then able to offer a lower interest rate to the eligible enterprise (as determined by the IRS code). This limited exception to the federal tax code has been in place for decades and demonstrates our nation’s interest in maintaining a healthy economy.

Our Mission Statement

The mission of CCED is to be a catalyst for job creation; entrepreneurship; business attraction, retention, and expansion on behalf of the citizens of Cumberland County and South Central Pennsylvania.

 

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