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Wednesday, May 22, 2024

Final hurdle cleared for medical office building financing

The long-awaited financing agreement for the new medical office building at Windom Area Health was approved recently by the Windom City Council and the purchaser of the revenue bond marketed by the city was United Prairie Bank of Windom.

The loan principle will be for an amount of not more than $21,138,646 at an interest rate of 5.7%. The revenues of the hospital are intended to pay for the financing, and the package also includes a bond cash reserve of over $1.6 million which would cover payments for about a year should the hospital not fulfill its obligations.

The vote for the approval was close, with one vote swinging the decision. Council members Jenny Quade, Dennis Esplan and Marv Grunig voted yes. Council members James Nelson and Scott Benson voted no.

Before voting yes, Grunig asked WAH Chief Financial Officer John Peyerl directly: “Would you say that the statement still applies that the hospital would have to have many years of poor financial performance before taxpayers would ever be faced with any financial obligation?”
Peyerl answered, “That is absolutely the case.”

Mayor Dominic Jones stated during the meeting that he knows there are people in the public concerned about the debt, but he felt the city council did a good job with the public hearings and information gathering to come to a difficult but important decision.

For more details on this story, please see the Oct. 11 edition of the Citizen.

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