Hospital construction timeline pushed back

Posted August 25, 2014 at 4:17 pm

Hospital services will be added to Hawarden’s R-1 single family zoning district amendment which was recommended for approval by Hawarden Planning and Zoning Board when it met Aug. 5. The councilors approved the zoning list addition by unanimous vote. There was no public input at the public hearing or earlier.

Hawarden Regional Healthcare CEO Jayson Pullman gave an update on the expansion project.

“We’re working on getting estimates of the true costs of mechanical, electrical and plumbing systems. As of now the estimates are a little high. We’re working on the fund-raising portion, and there will be an employee kickoff and a city kickoff in the near future,” said Pullman.

Pullman later said the expected start of construction phase will be late fall or next spring, as construction documents are being worked on.

“Then they will go to USDARD,” said Pullman.

Fundraising work continues, said Pullman.

Community kickoff events will be announced soon.

Background

The HRH had gained approval for $10,833,354, with $8,833,254 from United States Department of Agriculture-Rural Development (USDARD) and $2 million from commercial lenders for $10,833,254. The councilors earlier approved a $10.8 million.

“You must have a public hearing to approve the balance, the remaining $33,2545,” explained City Administrator Gary Tucker. The vote on July 23 was unanimous. A public hearing was held on the agreements but no input was received.

A Master Bond Resolution for the project was approved by councilors by a 5-0 vote.

The resolutions will allow HRH to pay current architect and engineering fees for the project.

Also approved regarding the expansion project, all by unanimous votes were:

A resolution providing for the issuance and securing the payment of future obligations for the purposes of borrowing money for HRH, backed by the anticipated loan when the work is done, but HRH continues with meetings in the construction documents phase, said HRH CEO Jayson Pullman. Those need USDARD approval.

A resolution authorizing and approving a loan agreement and providing for the issuance and securing the payment of a not to exceed $500,000 Hospital Revenue Project Note was approved.

“This will be paid for by net revenues of the hospital and the USDARD must first approve the construction documents,” said Tucker.

Councilors approved a resolution providing for the issuance of a Hospital Revenue Loan Anticipation Project Note not to exceed $5 million. “USDARD has to approve the plans to start construction. This does not affect the city’s constitutional debt limit. It does count against the bank qualified amount,” said City Administrator Gary Tucker.

On Nov. 27, 2013, Hawarden Councilors’ voted for approval of city support of a $10.8 million loan for financing.

Following unanimous councilors approval on Nov. 27, 2013 the key steps in the coming months are: USDARD architectural approval; permit, Iowa Department of Public Health submittal complete; General Contractor Bidding Complete construction cycle will be 14 to 16 months; targeted completion date is Sept. 27, 2015. That date is now more likely in 2016.

Financial budget for the project includes the USDARD approved loan, $8,833,254, for 30 years, with an interest rate of 3.5 percent; hospital contribution, $500,000; local participation, with a “robust fundraising campaign” by the Hawarden Regional Healthcare Foundation for a total of $11,333,254.

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