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Trinity Health received approval from the Ward County Commission Tuesday to issue up to $380 million in Health Care Revenue Bonds as a second step toward financing a new hospital and medical park in southwest Minot.
The County Commission approved up to $63 million for Trinity Health in August to refinance existing long-term debt at a lower interest rate, and to cover preliminary construction costs.
Trinity President/CEO John Kutch says this second bond issuance will be used in combination with operating funds and private philanthropy to finance construction of the new healthcare complex, including architectural, construction, equipment, and other costs associated with the new campus buildings.
"We're excited to take this important next step toward constructing an extraordinary facility that will serve our communities for decades to come," Kutch said. "We've worked hard over many months to achieve a design that is viable and sustainable, and yet represents the future of how patient-centered health care should be delivered."
Teams of department leaders have worked with the project manager, Yates Construction, and architects and other contractors to refine the project. Trinity Health officials are still aiming for a spring construction start for the construction project, slated to include a new hospital and medical office building.
The proposal to Ward County Commission doesn't impose any responsibility on the county to pay off the bonds. Approval merely allows Trinity Health to issue tax-exempt bonds, which are a less expensive way to finance projects.
At Tuesday's meeting, Trinity indicated its schedule for issuance of bonds was moved up because of tax reform proposals in Washington that could impact the hospital's ability to utilize tax-free bonds in the future. Trinity had expected to issue the bonds in 2018, but representatives said there is a possibility bonds could be issued before the end of this year.