Trinity Health Receives County's Approval for Bond Refinancing
FOR IMMEDIATE RELEASE
Date: August 15th, 2017
Contact/Phone: Mary Muhlbradt
(701) 857-5116, Cell: (701) 833-3341
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(MINOT, ND)— Trinity Health received authority today from the Ward County Board of Commissioners to issue up to $63 million in Health Care Revenue Bonds as a first step toward financing a new hospital and medical park in southwest Minot. The majority of the tax-exempt bonds will be used to refinance existing debt. The rest will go toward funding preliminary work on the project, including site preparation and construction planning.
Trinity President/CEO John M. Kutch says the proposal is the first of two bond issuances that will provide financial support for the healthcare complex in combination with operating funds and private philanthropy. He says the aim of this first issuance is to take advantage of favorable market conditions in refinancing old debt.
“This is an opportunity to secure a lower interest rate on current debt prior to securing financing for the new hospital,” Kutch noted. “Our priority is to be good stewards of our resources - to offer the best care for the best value, so it makes fiscal sense to take this approach.”
He says Trinity Health has made a concerted effort these past several months to proceed deliberately and thoughtfully in planning the facility to make sure the project is done right. Designs for the project have been refined with the goal of delivering exceptional care at the most reasonable cost. Kutch says the process has resulted in better plans for patient flow, increased use of space and natural light, and decreased project expenses.
“As a mission-based, non-profit organization, we exist to provide the region a stable, viable, and sustainable care system that will serve our communities with high quality services for decades to come. It’s important to ensure that a building project of this magnitude supports the future model of how healthcare will be delivered.”
Trinity Health is making refinements to the project which could impact the final price, and expects to know more about that number within the next two months. Yates, the project manager, is working with local and regional contractors over the next several weeks to acquire more details and tighter estimates for that financing package to be completed.
The proposal to Ward County Commissioners 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.
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