MassDevelopment, TD Bank Issue $60M Tax-Exempt Bond for ISO New England Campus Expansion in Holyoke

MassDevelopment has issued a $60 million tax-exempt bond on behalf of ISO New England Inc. to fund the expansion and improvement of the regional transmission organization's campus in Holyoke, Massachusetts. TD Bank purchased the bond, providing ISO New England with a lower cost of capital for the project, the agencies announced Sept. 9, 2026.

New Facility and Site Plan

ISO New England will use the bond proceeds to acquire a five-acre parcel at 115 Whiting Farms Road, adjacent to its existing headquarters at One Sullivan Road in Holyoke. The organization will demolish a vacant, approximately 29,000-square-foot, one-story building currently on the expansion site and replace it with a new three-story, 79,000-square-foot office and amenity building along with approximately 300 new parking spaces.

The new building is designed to be all-electric and LEED-certified. It will support training and visitor meetings, address current office space constraints at the existing campus, and improve campus security. The expansion site will be connected to the Sullivan Road headquarters by a secured driveway and walking path. Bond proceeds will also fund interior upgrades reconfiguring approximately 4,000 square feet within the existing headquarters building at One Sullivan Road.

Construction is expected to begin in late 2026 and be completed in 2028. ISO New England employs more than 855 employees and consultants and is one of Holyoke's largest institutional employers.

Financing Structure

MassDevelopment, the state's development finance agency and land bank, served as the bond issuer. TD Bank purchased the $60 million tax-exempt bond, a structure that allowed ISO New England to achieve a lower cost of capital compared with taxable financing alternatives.

"ISO New England plays a critical role in maintaining a reliable electric grid for residents and businesses across the region, while serving as a major employer in Holyoke," said Economic Development Secretary Eric Paley, chair of MassDevelopment's Board of Directors. "This financing will help the organization expand its campus, strengthen its operations and continue investing in Western Massachusetts."

"With responsibility for the operation of New England's electric power generation and transmission system, ISO New England is both a major employer and facilitator of economic activity here in Massachusetts," said MassDevelopment President and CEO Navjeet Bal. "MassDevelopment is pleased to partner with TD to help the organization invest in the future of its Holyoke campus."

"ISO New England plays a vital role in supporting the reliability of the electric grid across New England, and we're proud to partner with MassDevelopment to help finance this important investment in its future," said Tom Armstrong, Senior Relationship Manager, Middle Market, TD Bank U.S. "This project will strengthen critical infrastructure, support sustainable development, and enhance ISO New England's ability to serve the region as energy needs continue to evolve."

About ISO New England and the Expansion's Strategic Context

Founded in 1997, ISO New England is the independent, nonprofit corporation responsible for the reliable operation of New England's electric power generation and transmission system. The organization oversees administration of the region's wholesale electricity markets and manages comprehensive regional electric power planning across Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

The Holyoke campus expansion is driven by several operational needs: addressing space constraints at the existing headquarters, creating dedicated facilities for training and stakeholder meetings, and hardening campus security — a key consideration given ISO New England's role as a critical infrastructure operator. The all-electric, LEED-certified design of the new building also aligns with broader decarbonization trends among institutional office users in the Northeast.

"We are grateful to MassDevelopment and TD for financing this project," said ISO New England President and CEO Vamsi Chadalavada. "The new facility strengthens our ability to serve the region and collaborate with stakeholders as the grid evolves and our work grows more complex."

MassDevelopment and TD Bank Activity

MassDevelopment partners with businesses, nonprofits, developers, banks, and municipalities across Massachusetts, providing financing and real estate expertise to support job creation, housing development, and community investment. During fiscal year 2025, the agency financed or managed 409 projects generating more than $4.65 billion in investment statewide, with those projects estimated to create or support 25,246 jobs and build or preserve 2,867 housing units.

TD Bank U.S. is the U.S. banking business of The Toronto-Dominion Bank and serves more than 10 million clients through approximately 1,050 locations across the Northeast, Mid-Atlantic, Carolinas, and Florida. The bank is headquartered in Mount Laurel, New Jersey.

Sources

MassDevelopment: MassDevelopment Bond Helps ISO New England Expand and Improve Holyoke Campus