NORTH MANKATO, Minn. (KEYC) — The North Mankato Port Authority approved the issue of two notes that will provide funds for refinancing debt obligations for Bethany Lutheran College and VINE Faith in Action.
North Mankato is issuing the notes because the City of Mankato has already issued $8 million in bonds this year, which is close to the IRS’s $10 million limit.
“If the transaction wants to take advantage of certain tax incentives, they can’t issue over $10 million in a calendar year. So, since both these projects are looking for in excess of over $2 million, the city of Mankato does not have that wiggle room since they have already issued over $8 million of bonds for this year,” says Briggs and Morgan Attorney Dan Burns.
The funds will relieve $5.3 million in debt related to construction at Honsey and Meyer Hall on BLC’s campus, and another $4.5 million for VINE Faith in Action.