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IDB holds public hearing on proposed tax-exempt bond financing for Lindenwood Education System
Summary
The Industrial Development Board convened a federally required public hearing to allow local comment on proposed tax-exempt bonds to finance Lindenwood Education System's purchase of Miller-Mott College; the board took no action and the bonds would be issued by an out-of-state issuer.
The City of Chattanooga Industrial Development Board on Tuesday held a public hearing to accept local comments on a proposed tax-exempt bond issue to finance Lindenwood Education System’s planned purchase of Miller-Mott College.
Jay Moneyhund, serving as local bond counsel, told the board the hearing was being held to “comply with federal tax law” and to provide a forum for any local concerns. “This board is not being asked to issue the bonds or to be responsible for repaying the bonds,” Moneyhund said. He added the bonds would be issued by an out‑of‑state issuer because the project spans multiple jurisdictions.
Moneyhund said Lindenwood is a 501(c)(3) entity based in Missouri with accredited campuses nationwide and that the proceeds would be used to continue operating Miller‑Mott College as an educational facility. A member of the public asked where Lindenwood is based and what it planned to do with the assets; Moneyhund replied that Lindenwood is headquartered in Missouri and intends to operate the facility in line with its charitable and educational purpose.
No members of the public raised objections at the hearing. For the record, the board chair said, “there is no action required of us. We’re not voting on this.”
The hearing was held under TEFRA/TEPRA-style federal procedures (a tax-law public-hearing requirement) to permit local comment on the use of tax-exempt financing; the board’s role in this meeting was limited to receiving comment rather than approving or issuing debt.
Documentation provided at the hearing stated that any questions about the financing structure and issuance would be handled by bond counsel and the out‑of‑state issuer. The board did not vote or take formal action on the financing request during the meeting.
No timeline for issuance or additional local approvals was provided at the hearing.
