62.9 F
Windom
Monday, May 27, 2024

Funding in place for hospital project

The old clinic has come down as work continues at Windom Area Health, and the closing to secure a $20 million loan from United Prairie Bank to finance the forthcoming medical office building has been completed.

UPB came back the winner when the city put a bond out to market to help WAH secure financing for the four-story, 57,000 squarefoot project.

WAH CEO Shelby Medina said the hospital was aware that some local banks were interested in providing funding, and the hospital was delighted that United Prairie Bank offered the best package.

Interest rate on the $20- million bond is 5.7% and the package also includes a cash bond reserve of over $1.6 million which would cover loan payments for a year should the hospital run short of money.

The total cost of the project is $30 million, but the hospital paid $10 million up front out of cash on hand.

For more details on this story, please see the Jan. 3 edition of the Citizen.

- Advertisment -