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Industrial Development Board approves conduit revenue bond to finance Goodwill project
Summary
The White House Industrial Development Board approved Resolution 24-2 to issue a conduit revenue bond to finance a project for Goodwill Industries of Middle Tennessee; board members were told the bond is structured so the board has no liability, and the resolution also adopted state-recommended debt-management and tax-exempt bond policies.
The White House Industrial Development Board approved Resolution 24-2 on the issuance of a conduit revenue bond to finance a project to be owned and operated by Goodwill Industries of Middle Tennessee. Speaker 2 (Board member) moved to approve the form of the financing documents and to authorize their filing; the motion was approved by voice vote.
Board members were advised the bond is a conduit financing: the governmental issuer (the Industrial Development Board) issues the bonds to secure favorable federal tax treatment while Goodwill makes the payments. Speaker 2 explained that private purchasers (mentioned in the packet as Denver Bank) would monitor covenants and, if Goodwill did not pay, would pursue collection directly from Goodwill rather than the board. Speaker 2 said the board and the city "have no liability" under the documents.
Speaker 3 (Staff member) recommended that Alex Buchanan, counsel for Pinnacle Bank (mentioned in the meeting), address technical questions; the board was told the documents will produce supplemental-note disclosures on the board’s financial statements. The materials shared with the board indicate approximately $1,400,000 in industrial bonds outstanding under these documents, with an amortizing principal schedule over 15 years. Speaker 2 stated the structure typically lowers borrowing cost by roughly one percentage point compared with other options.
The approved resolution also included a debt-management policy and a tax-exempt bond policy that the presenter said are recommended by the state; the board approved a separate motion to adopt those policies. According to the transcript, the board approved the form of documents and authorized staff to file them; specific purchaser, closing dates and final pricing were not specified in the meeting record.
Next steps noted in the meeting: finalize any remaining document edits, file the forms authorized by the board, and reflect the bond as a note on the board’s financial statements in the coming year. No public comments were received during the hearing on the resolution at the meeting.
