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Lincoln County approves conduit financing for Augustana University project up to $35 million
Summary
The commission held a required IRS public hearing and approved a resolution authorizing Lincoln County to serve as conduit issuer for up to $35 million in economic development revenue bonds for Augustana University Association. Todd Meer Henry described the bond structure and required disclosures; one opponent asked about tax‑exempt support for private institutions.
Lincoln County commissioners approved a resolution on Feb. 24 authorizing the county to act as conduit issuer for economic development revenue bonds for Augustana University Association, in an aggregate principal amount not to exceed $35 million.
Todd Meer Henry, representing Augustana as borrowers' counsel, explained the two common conduit structures: loans arranged with local banks and a structure in which the county issues bonds sold to public investors and a trustee administers payments. He described the role of an underwriter and noted the packet included an MSRB G‑17 disclosure letter explaining the underwriter does not owe a fiduciary duty to the county.
One member of the public asked why Minnehaha‑area institutions receive conduit support and why tax‑exempt financing is used when taxpayers pay property taxes. After public testimony closed, Commissioner Schmidt moved to approve the resolution; the motion carried on roll‑call vote (four yes, one no). The county noted that, as conduit issuer, it would not pledge county taxes or property for debt service; the bonds are issued on behalf of the borrower and repaid from project revenues.
