Federal government promises 2.6% loan for new hospital addition and for remodeling present clinic and medical center
Iowa’s Belmond Medical Center has been granted a $21.6 million low interest loan from the U.S. Department of Agriculture’s Rural Development Community Facilities Program to build a large new addition at the hospital and to remodel the existing facility and clinic. The money is part of $193 million released last week through the American Recovery and Reinvestment Act.
“This is a huge gift to the community,” said Hospital Administrator Nancy Gabrielson. “The 40-year loan is large enough that we can go back and cover all our expenses so far for buying land, tearing down buildings on Main Street, and the remodeling we’ve already done in preparation for the project. The money will be in the form of Build America Bonds, which means 35 percent of our interest payments will be returned to us. The upfront interest rate is 4 percent, but the effective rate is only 2.6 percent.” Gabrielson said First State Bank will also be helping with financing, and the Belmond Hospital Foundation will be conducting a fund-raising campaign to purchase extras — like furniture and equipment — that are not part of the actual building. The project will include a four-level addition to the west of the present hospital — right on top of Third Avenue SE. The addition will include a basement, two main levels, and a small third floor with a helicopter landing area.
The existing clinic will be expanded into the present hospital, and other parts of the existing hospital will be converted to new uses, such as offices and medical records. A press release stated, “Belmond Medical Center is excited to begin this project. We are extremely grateful to the USDA for making this opportunity possible for the community of Belmond and the surrounding service areas. Bids will be advertised for the project in the very near future with groundbreaking to begin following the bid awards. Not only will this state-of-the-art facility afford quality patient care for our patients, it will stimulate economic growth in Belmond and north central Iowa.”
SOURCE: Belmond Independent
