Effingham Hospital has set the date for the groundbreaking on its $31.7 million expansion and modernization project, after the Department of Housing and Urban Development approved the plans.
The hospital received an official commitment letter from HUD on Monday, stating it will back the Build America bonds the hospital is seeking to finance much of its project. The bonds are expected to be sold today and the final closing with HUD will be completed Dec. 28-30 at HUD’s Atlanta office, according to hospital CEO Norma Jean Morgan.
Morgan offered her “sincerest thanks to everyone who provided a positive commitment to support the Effingham Hospital Authority, administration and medical staff in achieving a new beginning for the health care system in Effingham County.”
With HUD’s approval in hand, the hospital will break ground Jan. 2, 2011, on a 50,000 square foot modernization and expansion program. The hospital, now 40 years old, also will add a wing dedicated to Alzheimer’s patients at the Effingham Care Center.
Through the Build America bonds, the hospital also expects a 35 percent rebate on its interest payments. The Build America program expires Dec. 31.
The hospital authority also had to enlist the support of the county commission, getting a commitment of 2 mills for the next 25 years. The hospital will be using $25 million in Build America bonds.
The $31.7 million project is expected to be completed in 2012.