Knox College will enhance its historic campus with the assistance of a $26 million bond issuance, facilitated by the City of Galesburg, to fund academic, athletic, and residential projects.
Aldermen on Monday unanimously approved the new bond ordinance the authorizes the issuance of up to $26 million in bonds. The vote was 6-0, with Sixth Ward Alderperson Sarah Carrington not in attendance for the fourth straight meeting.
According to City Manager Eric Hanson, the city has no liability or obligation associated with repayment of the bonds nor any control over the use of the proceeds. Knox College will pay the fees incurred by the city’s bond counsel and financial advisor per the agreement.
“The basic question I know Council always gets is, ‘Are we sure there’s no liability to the city? Hanson said at Monday’s meeting, “And yes, we’re confident that there’s no liability to the city.”
City administration and staff from Knox College have been coordinating on the issuance of new debt for the college. Knox has requested that the city assist them in the issuance of bonds to refinance existing debt and undertake additional capital projects.
Hanson, appearing Monday on Galesburg’s Morning News, said the city is acting as a “vehicle” to help Knox College access better bond rates through the city’s bonding capacity.
Knox College, which is currently engaged in its Venture Boldly fundraising campaign, issued the following statement to WGIL:
Knox College is committed to preserving and enhancing its historic buildings and to ensuring that the College provides modern facilities for current and future members of the Knox community. To bolster this commitment, Knox has requested that the City of Galesburg assist the College as a conduit issuer for a bond issuance. The funds generated by the bonds will be used for capital projects that will impact all areas of campus, including academic, athletic, and residential facilities. The College looks forward to sharing more information on specific projects to the Knox and Galesburg communities as it becomes available.
“The whole founding of Galesburg goes back to the college — they go hand in hand all the way back to the very beginning,” Hanson said, noting a strong Knox College is seen as beneficial for Galesburg through faculty and staff jobs, student spending and overall economic impact.
“A strong Knox college is good for Galesburg, there’s just no doubt about it.”
Seventh Ward Alderman Steve Cheesman said before Monday’s vote, “Knox brings a tremendous amount to our community, and this will also mean jobs for our community. I think this is good in all ways, and I’m glad I can be a part of supporting this.”
Fourth Ward Alderman Dwight White echoed Cheesman’s sentiments, saying, “Knox has always been a great asset to Galesburg, and I’m just glad I’m part off a group that’s helping them move forward, and looking forward to seeing them continue to grow.”