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Commissioners grant host approval for up to $175 million PFA bonds for Lindenwood Education System project
Summary
Onslow County agreed to serve as host under Internal Revenue Code section 147(f) for Public Finance Authority tax-exempt bonds of up to $175 million to finance acquisition of educational assets, including assets in Onslow County estimated at $2.2 million for Miller-Motte College operations in Jacksonville.
The Onslow County Board of Commissioners voted to provide host approval under section 147(f) of the Internal Revenue Code for the Public Finance Authority(PFA) to issue tax-exempt bonds enabling Lindenwood Education System, a Missouri nonprofit, to acquire certain educational assets and operations.
County legal staff explained the request is a host approval only and that debt issued by PFA would be payable solely from the borrowerand not an obligation of the county. The PFA expects to issue tax-exempt bonds in an amount not to exceed $175,000,000, and staff estimated that assets located in Onslow County related to the project would be about $2,200,000.
The financing would in part support the acquisition of educational assets and operations for Miller-Motte College and other training facilities located at 105 New Frontier Way in Jacksonville, county staff said. County staff presented the item as a public hearing to allow public comment; no members of the public spoke on the item.
County officials said the county is acting as a host as a courtesy so the borrower can proceed with its financing, and that no county funds or assets would be used to secure the bonds. A resolution authorizing the chairman to sign the host-approval documents was included in the meeting packet and was considered by the board.
After a brief staff summary and no public comment, a motion to approve the resolution was made and adopted on a voice vote. County officials reiterated that the PFA-issued debt would not be county debt.
