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Bowling Green approves $55 million conduit bonds for WKU Student Life Foundation
Summary
The Bowling Green commission approved a binding ordinance authorizing up to $55 million in conduit industrial building revenue bonds for the WKU Student Life Foundation to finance renovations at Regents and Normal halls; bond counsel said the issuance is a pass-through obligation and not city debt.
The Bowling Green Board of Commissioners on Dec. 2 approved the issuance of industrial building revenue bonds in an aggregate principal amount of $55,000,000 to finance renovations at Regents Hall and Normal Hall on Western Kentucky University’s campus.
Laura Thielman, bond counsel with Frost Brown Todd, opened the required public hearing and told commissioners the financing would be issued in a conduit capacity for the WKU Student Life Foundation. "This hearing is being held in connection with the issuance of industrial building revenue bonds for the WKU Student Life Foundation series 2025 by the city of Bowling Green in a principal amount of $55,000,000 subject to a permitted upward adjustment of 10% and a downward adjustment of any amount," Thielman said. She emphasized the issuance is structured under section 147(f) of the Internal Revenue Code and noted the city is not taking on general-obligation debt for the project.
City Manager Meisel and other officials reiterated the city’s role as a pass-through issuer. "The key there is pass through. This does not add to our debt," one commissioner said during the second-reading motion.
The ordinance (BG2025-30) had been introduced at a prior meeting and moved on to a second, binding reading at this session. Commissioners voted to approve the ordinance on second reading; the motion passed by roll call with the commissioners present voting in favor.
The bond proceeds will be loaned to WKU’s Student Life Foundation to fund capital repairs and improvements at the two residence facilities, to fund a debt-service reserve if required and to pay issuance costs. Thielman invited public input during the hearing; no members of the public requested to speak on the bonds at the meeting.
Next steps: With the ordinance adopted, city staff and bond counsel will proceed with closing steps under the bond ordinance and coordinate the conduit issuance for the foundation. The city’s role is administrative and limited to the conduit financing as described.
