Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bond Financing Edu topic
No spam. Unsubscribe anytime.
EDA approves revenue bond financing for Eastern Mennonite University after public hearing
Summary
The Harrisonburg Economic Development Authority held a public hearing and approved an inducement resolution and a bond resolution to facilitate revenue bond financing for Eastern Mennonite University, authorizing McGuireWoods as bond counsel; EDA emphasized the debt is nonrecourse to the city.
The Harrisonburg Economic Development Authority on June 10 opened a public hearing and approved two resolutions to permit revenue bond financing for Eastern Mennonite University (EMU): an inducement resolution followed by a bond (parameters) resolution.
The EDA’s city attorney explained the transaction would use the authority as a conduit issuer under the Industrial Development and Revenue Bond Act in the Virginia code to allow a nonprofit to access tax‑exempt financing. Counsel for the issuer (McGuireWoods) and EMU representatives were present for questions. Lisa Williams of McGuireWoods told the board, "absolutely no EMU funds, no City of Harrisonburg funds, no state funds are being utilized in the issuance of this debt or the repayment of this debt," underscoring that the bonds are nonrecourse to the city.
EMU representatives said the financing will refinance prior borrowings the university obtained from a private bank and provide funds for capital maintenance and campus improvements to support a multi‑year plan. Scott Raymer, identified as EMU’s chief operating officer, described the financing as part of a four‑year plan to stabilize the university’s finances and support campus improvements; he noted recent enrollment headwinds in higher education but said EMU projects modest growth in the upcoming year.
Counsel explained the mechanics: a private underwriter will sell the bonds to public investors in a public offering, and because interest may be tax‑exempt for purchasers, EMU may obtain lower interest rates than commercial financing. The documents state explicitly that neither the city nor the Commonwealth pledges their full faith and credit; bondholders will look to EMU’s pledged revenues and the financing structure for repayment.
After the public hearing concluded with no public objections, the EDA voted on the inducement resolution and the bond resolution in sequence. The board conducted roll‑call votes on both resolutions; the record shows aye votes from present members (Dr. Alcindi, Burton, Holland, Macklin, Pipkins) and no recorded no votes. The resolutions authorized the chair or vice chair to execute the necessary documents and appointed McGuireWoods as bond counsel.
The EDA asked staff to forward the matter to City Council for its consideration later the same day as required by local procedures. The board closed the public hearing and adjourned after completing the bond votes.
