Health care facilities ask city for bonds
04/13/2013 7:09 AM
08/08/2014 10:16 AM
Wesley Medical Center and Presbyterian Manors are requesting industrial revenue bonds from the city, according to city documents.
Wesley is requesting the bonds for its upcoming $36 million women’s unit renovation at its facility at 550 N. Hillside. Wesley is a for-profit hospital owned by Hospital Corporation of America.
Wesley officials were not available for comment Friday afternoon.
The request is for bonds not to exceed $35.5 million and would be subject to 87 percent abatement for five years with a possible second five-year term subject to City Council review.
The building was originally constructed in 1967, according to city documents, and the renovation would include upgraded emergency power systems, HVAC, fire suppression systems, nurse call and ADA accessibility
The endoscopy unit has also moved and the vacant space will be renovated to include eight “private higher acuity post-partum rooms and an (eight) bay well-baby holding nursery,” among other renovations.
The documents also say that Wesley plans to hire 45 new employees over three years with an average salary of $55,000.
In a letter to Mayor Carl Brewer and the City Council, HCA senior manager of business credits and incentives Glen Page wrote: “The planned investment, growth, and expansion is a substantial investment and any incentives will be helpful in offsetting the capital requirements associated with this expansion project and will be helpful in supporting our business case to move forward with the investment and job creation.”
More than 70 percent of Wesley’s revenue is from patients who live outside of Sedgwick County, according to city documents.
The use of funds would be $23 million to $26 million on the renovation, $1.5 million to $3 million for information technology and $5.5 million to $7 million on medical equipment.
The Presbyterian Manors request is to refinance its outstanding bonds for health care facilities not to exceed $110 million.
Presbyterian Manors is a non-profit that operates long-term care facilities for the elderly.
In 2013 and 2014, a total of $57.6 million would go toward new money capital projects, $27.7 million would go toward refunding outstanding bonds, $4.8 million would go toward funded interest, $5.4 million would go toward debt service, $3.4 million toward issuance and $10.7 million toward contingency, according to city documents.
A public hearing will be held at 9 a.m. on Tuesday at City Hall, according to the city clerk’s office.