CCMSD plans loan app for new hospital

After an in-depth conversation with a representative from the U.S. Department of Agriculture (USDA), funding for a new county hospital is looking more possible than ever.

Lorraine Werner, Special Projects Coordinator for the USDA’s Rural Development program, was invited to attend last week’s meeting of the Crook County Medical Services District (CCMSD) Board of Trustees at the suggestion of Trustee Brent Fowler.

While the board is not yet sure what kind of debt load the district can take on, Fowler suggested during February’s meeting that it couldn’t hurt to gather some information about the kind of funding assistance that might be available to help construct a new hospital building.

Inviting a USDA representative to outline the possibilities, he said, would not just inform the board as to what options are out there, but also whether or not the district qualifies for them.

The representative in question was Lorraine Werner, Community Program Director for Rural Development. Speaking at Friday’s meeting, she was adamant that CCMSD will be able to access funding and strongly suggested moving ahead with a loan application at this time to kickstart the USDA’s internal process of reviewing the particulars to see what will be possible.

“We want you to get the best terms possible,” she said.

“We can start with just, right now, a preliminary application, because they don’t expire.”

The reviewers, she said, will look at everything from revenue to all current expenses and loans, “And that will tell us roughly what you can afford at this time”.

The board has previously discussed the idea of increasing the mill levy, which would need to be placed on the ballot for approval by the voters. Fowler has, at past meetings, stressed the importance of taking this step on the basis that it shows the district has done everything within its power to raise money for the new building.

Werner did not feel that this question must be put before voters before an application is completed.

“Putting it on the ballot costs money, too,” she pointed out.

Instead, she felt that the first step should be the application, which she said kickstarts a comprehensive review process that will be informative for the district, too.

“We look at everything,” she said, listing such concerns as whether the district has the capital to ensure the new building is maintained and whether or not CCMSD can afford new staff to occupy the extra space and generate new revenue.

The USDA can provide up to a 40-year loan, she said, “just like a mortgage”, though with revenue bonds instead. The district would be able to make extra payments and pay the loan off early if it desired.

Werner also noted that a loan for construction might not be the only option available to CCMSD.

For example, she pointed out that the district does not yet have a piece of land picked out. USDA will not build in 500-year flood plains, she said, asking the board to imagine a scenario in which the only piece of available land not in a flood plain but it would cost $5 million to get infrastructure to it.

“You can go to the town of Sundance and ask them to apply for that infrastructure loan and they are eligible for grant funding,” she said.

The government, she said, is like a pair of overalls with a lot of pockets – there are lots of different places to find money. CCMSD can utilize a lot of smaller loans simultaneously, she said, “to get the whole thing built”.

She also suggested that the district make use of its new internal foundation to secure pledges of support from donors. She also said that it’s a good idea to reach out to large business owners, for example, because they have staff in the community and live here themselves, so good access to healthcare is important to them.

Because it’s early in the process, Werner suggested asking for pledges instead of actual donations. If it doesn’t get built, she said, the money isn’t taken.

“Small donations, big donations – it’s all so helpful,” she said.

As the conversation came to a close, Fowler commented that he feels it’s extremely important for the board to get to work on selling this idea to the community and explaining the benefits of a new, up-to-date facility.

“This is our job, I feel – this is what we’re here for,” he said.

Also present at the meeting was Kathy Lenz, Resource and Economic Development Manager for U.S. Senator Cynthia Lummis. She confirmed that the USDA may not be the only funding source available.

“There is grant money out there, a piece here and a piece there,” she said.

Fowler asked about grants that could become useful once the facility is actually built. The USDA loan would be for the hospital itself, he pointed out, but what about the things that go into a hospital, such as beds and equipment?

Lenz stated that she would be happy to work with the board to understand what needs exist and can then begin looking for potential funding sources. Werner added that there are pots of money available for all sorts of purposes, giving the example of energy efficiency.

The board agreed to submit a preliminary application to the USDA for a potential loan of $50 million. Werner stated that it will then take about 30 days for an initial review.