IRON MOUNTAIN — Dickinson County Healthcare System on Tuesday acquired a long-awaited $16.9 million Rural Growth mortgage, seven months after the U.S. Division of Agriculture funding was promised.
The help was sought to allow DCH to refinance debt and purchase new tools. A lot of that was completed in latest months in anticipation of closing on the borrowing.
“We’re closed,” DCH Board Chair Margaret Minerick confirmed Tuesday afternoon. “We’re all set to go.”
On the time of its first USDA utility in August 2019, the hospital reported $14 million in excellent financial institution loans, together with a pending balloon fee of almost $10 million. However a request for a $26 million mortgage stalled as federal officers stated they needed proof of monetary stability by 2020.
As a substitute for federal borrowing, DCHS was ready in early 2020 to promote $32 million in income bonds. That plan, nonetheless, was shelved when the coronavirus outbreak disrupted monetary markets.
In August 2020, the county board was knowledgeable the hospital once more would search a USDA mortgage, however this time for $16.9 million. The decrease quantity was made attainable by COVID-19 help acquired by the federal CARES Act, in addition to a greater monetary efficiency, hospital officers stated.
The 27-acre parcel on U.S. 2 that features Dickinson County Memorial Hospital and associated clinics was bought by DCH in 1994 for $700,000. In change for the county approving the hospital’s request to hunt income bonds for building, the county required it’s deeded the property. Since that point, it has leased the U.S. 2 web site to DCH for a nominal charge.
As a part of the federal mortgage utility, the county board agreed final 12 months to permit the deed to be put within the identify of DCH.
Jim Anderson might be reached at 906-774-3500 ext. 226 or firstname.lastname@example.org.