Alliance, Neb.-based Box Butte General Hospital, a 25-bed critical access hospital, has funded $40 million for an expansion and renovation of its facility.
Box Butte General Hospital broke ground on the renovation and expansion project in 2013, and it is expected to be complete in early 2016. The hospital is adding a 93,000-square-foot addition that includes a new 25-bed patient care unit and surgery department. Additionally, 17,000 square feet of the existing building will be renovated into a wellness center for rehabilitation and fitness, according to a news release.
"As the healthcare landscape continues to change, Box Butte General Hospital is committed to the future of healthcare and community wellness in our region," said Tracy Jatczak, CFO at Box Butte General Hospital, in the release. "It's been evident for several years that to fulfill our mission of providing quality healthcare, we needed a new addition to and major renovation of our existing facility."
Investment and mortgage banking firm Lancaster Pollard, headquartered in Columbus, Ohio, was responsible for structuring four funding sources for the project, including a U.S. Department of Agriculture loan for permanent funding and privately placed short-term bonds for construction funding.
Lancaster Pollard used a competitive bidding process with both local and regional investors to secure a low interest rate construction loan consisting of tax-exempt, variable-rate bonds with a three-year final maturity privately placed with a commercial bank located in Omaha, Neb. This series of bonds will be replaced by the permanent funding of a USDA direct loan upon substantial completion of the construction, according to the release.
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