ECGA Approves Tax Exempt Financing for Perseus House and the Foundation for Free Enterprise Education

September 12, 2008

The Erie County General Authority (ECGA) approved $486,000 in tax exempt financing to assist Perseus House, Inc. and the Foundation for Free Enterprise Education with the purchase of new facilities.  “We are pleased to accommodate both projects with our low cost financing,” notes ECGA Executive Director Larry Bossolt. Perseus House was approved for $236,000 in financing to acquire a new 3,526 sq.ft. facility on 2.3 acres at 6101 West Road in McKean.  Founded in 1972, Perseus House, Inc. traces its roots to a single family home set up to serve truant youth.  Over the past 37 years, the now multifaceted organization has grown to provide delinquency and youth violence prevention and intervention services.    Currently, Perseus House has the ability to house 90 adjudicated juveniles as the organization has grown to eight locations with over 350 employees.  In conjunction with many community partners, Perseus House serves over 4,300 local youth and families on an annual basis.  The purchase of an additional facility will provide new opportunities for all Perseus House clients to participate in work experiences such as landscaping and gardening.  Perseus House will create 17 new jobs as a result of the project.  “In these economically challenging times, it is critical for non-profits to minimize administrative expenses.  Funding through the Erie County General Authority, which assisted through a reduced rate, helps us contain those increasing costs and purchase a property that will meet the needs of the youth we serve,” states Perseus House Executive Director Mark Amendola. The Foundation for Free Enterprise Education was approved $250,000 in tax exempt financing to purchase a new 4,419 sq.ft. headquarter facility at 3076 West 12^th St. in Millcreek.  Incorporated as a 501(c)(3) in 1980, the Foundation for Free Enterprise Education was established specifically to provide quality educational opportunities designed to teach the youth of Pennsylvania about the free enterprise system.  The Foundation currently provides residential programming for students across the state in order to give them a practical educational experience in the world of business and private enterprise.  This programming takes a variety of forms including: computer simulated business operations; lectures by business professionals on wide range of topics pertaining to the world of business; simulated operations of the stock market and commodities exchanges; team projects devoted to marketing and advertising. From its inception, the Foundation for Free Enterprise Education has been completely supported, taught, and staffed by the volunteers from Pennsylvania’s private sector.  Presently it is supported by more than 700 Pennsylvania companies, foundations, chambers of commerce, manufacturers’ associations and a variety of civic organizations.  Annually, over 1,800 youth are served in 67 counties across the Commonwealth through the Foundation’s programs. Foundation President & CEO John Trombetta comments, “This is just a marvelous opportunity made possible for us with the invaluable assistance of the Erie County General Authority.  This year marks the 30^th Anniversary of our Foundation’s mission to provide quality economic education to the youth of Pennsylvania.  The tax exempt financing makes it possible, for the first time, that we can acquire our own building as the Foundation’s headquarters.  Not only will this provide us the critical opportunity to expand as our program grows, it also exchanges our rent expenditure for a valuable asset to add to our balance sheet.  We are just thrilled and extremely grateful to the ECGA for making this possible.” The Erie County General Authority, a financing instrumentality of Erie County Government, is an affiliated agency of the Economic Development Corporation of Erie County.  The Authority is designed to finance acquisition costs and other improvements for 501(c)(3) organizations.  Final approval was given by Erie County Council at the September 2^nd Council meeting.   Contact: Katrina Smith 602-2033