Ottawa County approves $10M bond issuance for Hope College capital-improvement projects

OTTAWA COUNTY —  Hope College has received the green light on funding for some major renovations.

The Ottawa County Board of Commissioners unanimously approved a request Nov. 25 from Hope to issue up to $10 million in tax-exempt bonds, clearing the way for the college to refinance existing debt and fund significant campus renovations.

The project will include an expansion and upgrade of Phelps Dining Hall, the college's central dining facility. The project outlines improvements to the kitchen and seating areas, along with new furnishings. Additionally, the bond proceeds will fund the acquisition and installation of new boilers at the Richard and Helen DeVos Fieldhouse and the campus Boiler Plant.

The board’s vote authorizes the county’s Economic Development Corp. to act as the conduit for the financing. Officials emphasized that the arrangement facilitates lower interest rates for the college without placing any financial burden on county taxpayers.

“An EDC bond is not an obligation of the county,” said Craig W. Hammond, bond counsel for Hope College, during the meeting. “A limited obligation bond in this context means the bond is payable solely from the revenues received by the EDC through the loan payments made by Hope College.”

Key points: 

• Hope College submitted its request in September to utilize the county’s remaining bond capacity for 2025. Under Michigan law, eligible nonprofits may secure tax-exempt financing through local Economic Development Corporations, a measure the county's EDC board had previously reviewed and recommended for approval.
• The bonds will be purchased by PNC Bank. Because the county has no liability and acts only as a pass-through entity, the board’s role is primarily transactional — ensuring the project meets statutory requirements under Michigan’s Act 338 of 1974.
• The financing plan includes two main components: refinancing the college's Series 2015 bonds to capture better rates and funding new capital-improvement projects.

Becky Huttenga, economic development coordinator for Ottawa County, said it is not uncommon for a bond proposal like this to come before the board. She said it’s purely “transactional.”

“This isn't ours to say this is or isn't a good project,” said Huttenga, regarding the approval criteria. “It's ours to say, does it or does it not meet the requirements of the statute. We're very much just a pass-through. So the bank that is going to place the bonds does all the underwriting. There's bond counsel that ensures that everything is done properly.”

The project met all necessary criteria, according to the EDC, which voted earlier to recommend approval.

The board of commissioners previously approved initial steps for the bond issuance, including the project area designation, on Oct. 28. That meeting also saw the appointment of Rivka Hodgkinson and Karen Pearson to the EDC board to facilitate the process. 

Tuesday’s public hearing, a required step for tax-exempt financing, drew no public comment.

According to meeting documents, Hope College will cover all costs associated with the issuance, including bond counsel fees. The college will also pay an issuance fee to the EDC estimated at $25,000, calculated as one-fourth of 1 percent of the bond’s face value.

With the county’s final approval secured, Hope College expects to close on the financing by Dec. 15.

— Heather VanDyke covers northern Ottawa County for the Ottawa News Network. Contact her at hvandyke@ottawanewsnetwork.org.