Wednesday, November 25, 2015

Hospital Construction Process Takes Several Steps Forward

The Winston County Board of Supervisors met on Monday,
Current site of completed demolition and new
construction of Winston Medical Center
November 23 and after much discussion approved a new ground lease that is another step in the rebuild of a Winston County Medical Center that was destroyed in the 2014 tornado.

Supervisors had some concern about liability to the county and taxpayers if the project should run into financial difficulties but received assurances by the County Attorney and representatives of the Butler, Snow Law Firm, who is handling the process concerning New Market Tax Credits for construction, that the taxpayers would have no financial liability. Under the lease which will extend until 2065, the Hospital Foundation will have all responsibility for the construction process, financing and operation of the new facility.

Supervisors also expressed concerns about the overall cost of the
project and had questions concerning financing and funds made available by the issuance of the tax credits. As of this time, funding will be provided by insurance proceeds, roughly $10 million in proceeds from new market tax credits and financing from Renasant.

The ground lease is just one step in the process. A bid opening was held on Monday afternoon on a variety of bid packages for construction. Held at Louisville City Hall, bids for up to 28 bid packages were opened and will be immediately reviewed. Sources indicate that approval of bids should be completed sometime today (Wednesday)

Because of the complexity of the bids and the nature of the projects, a final total projected cost is not known at this time but we will have further details as they become available. The estimated closing date for the tax credits that will help to fund the project is December 7th and the Hospital Board is expected to meet in mid December for lease and operating agreement approvals.