The village could issue more than $3 million in bonds before year’s end to help Illinois Benedictine College finance some building improvements, officials said Monday.
Under a proposal by the college, the village would issue just over $3 million in bank-qualified industrial development bonds so the college can make $1.6 million in improvements to its student union Krasa Center and refinance about $1.3 million of a 1975 bond issue.
Known as “conduit financing,” the village lends the college its municipal status so that interest on the bonds remains exempt from federal income taxes and the college is assured of buyers for the bonds. The bond issue poses no risk to the village’s finances, officials said.
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As a home-rule municipality, the village can issue up to $10 million in industrial bonds annually. No such bonds have been issued in Downers Grove for this year.
Although the college, at College Road and Maple Avenue in unincorporated Lisle, lies outside the village boundaries, it serves and employs more than 200 Downers Grove residents, noted college president Richard Becker. This public benefit qualifies the college for the bond issue, village Atty. Daniel Blondin said.
It would not be the first time the village has approved out-of-town industrial bonds, said Village Manager Kurt Bressner. In the last several years, Downers Grove has issued industrial bonds for a local school, a YMCA and Carol Stream.
Village Council members will hold a public hearing on the bond issue Dec. 13 and could approve the bond issue Dec. 20, officials said.