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Committee approves IDB conduit for Goodwill’s proposed $6 million land and store financing
Summary
Rutherford County budget committee agreed to an IDB conduit resolution enabling Goodwill to pursue up to $6 million in tax-exempt financing through Pinnacle Bank; staff said transaction poses no county obligation and legal/closing fees will be paid by Goodwill.
The Budget Committee approved an Industrial Development Board (IDB) conduit resolution to allow Goodwill to obtain tax-exempt financing—up to $6 million—to acquire land and build a new store near Veterans Parkway.
How it works: Bond counsel Bria Smith Edwards explained that federal tax rules allow 501(c)(3) entities to access tax-exempt financing when a conduit issuer issues bonds and assigns proceeds to the nonprofit. In this case the IDB would be the conduit issuer and Pinnacle Bank will act as the lender; Goodwill will execute a promissory note and pay any closing and legal costs related to the financing.
Why it matters: the county is acting as a conduit issuer only; county staff said the transaction does not create a repayment obligation for the county and no funds flow through the county’s books. Commissioners asked for a funds-flow statement and reporting from the IDB so the commission could better track project details.
What was said: Tammy Johnston of Pinnacle Bank described construction draws and repayment terms and confirmed Goodwill pays legal fees. ‘‘We are the lender to Goodwill for the construction of the new store,’’ she said, describing monthly draw requests and construction monitoring.
The vote and next steps: the committee approved the resolution on a roll call (5–2); commissioners requested the IDB provide a funds-flow and fee breakdown for the record. The IDB will proceed with the transaction documents and Goodwill will draw funds as construction progresses.
Actions: Committee approved forwarding the IDB conduit resolution; staff will ask IDB counsel to provide a funds-flow statement and periodic reporting to the commission.
