As its planned expansion project moves forward, representatives of Girard Medical Center on Tuesday approached the County Board of Commissioners to request formation of a public building commission in the county to help with the logistics of the project.
Planning for the project started almost two years ago, according to Kenny Boyd, CEO of Girard Medical Center. The proposal is to add about 29,000 square feet of new space to the current facility, including a new entrance and lobby area and to add more parking around the hospital facility, he said.
"The main reason we've looked at this is to make sure we have a viable health care organization to treat the residents of Crawford County," Boyd said. "This project would ultimately give us a new face on Highway 47 and make us more competitive for the future."
The project is ready to move forward into the request-for-proposals stage, Boyd said. Primary fundraising has been completed for the facility. Even though the hospital district is an authorized taxing entity in the county, the goal of this project has been to pursue financial options without any increase in taxes to county residents.
Representatives of the hospital foundation went as far as Washington, D.C., and the federal Department of Housing and Urban Development (HUD) to try to secure funding without raising taxes. But, with paperwork and administrative expenses, it was estimated any HUD funding would cost money which could better be spent elsewhere, Boyd said.
"The cost with the HUD program was going to be substantially higher than if we go with a public building commission," Boyd said. "About $750,000 which, for an organization our size, could be better spent on things other than formalities and getting financing set up."
A public building commission (PBC) is one of several other financing options for the project. But the established list of the type of buildings allowable under a PBC is strictly limited.
Authorized by Kansas law, a PBC helps cities and counties acquire land, build and equip facilities for governmental entities. Part of the hospital district's proposal included a charter ordinance that would allow the county to expand that list to include the hospital addition, according to Kevin Cowan, an attorney with the law firm Gilmore and Bell of Wichita.
A PBC would issue revenue bonds to finance the projects, Cowan said. The debt incurred would be paid off solely through the normal revenue streams of Girard Medical Center.
The debt would belong to the hospital district and Girard Medical Center, Cowan said. There would be no debt obligation on the county or its residents.
"We have no intention at all of using increases in taxes to pay for this," Boyd said. "The hospital board has made it very clear that's not an option."
A PBC is typically comprised of anywhere from three to nine members. Whether members will be appointed completely by the county board or in cooperation with the GMC Foundation board of directors would have to be decided in the future. But Cowan did recommend at least one member of the PBC be sought from the local banking community, for their financial knowledge and expertise.
The debt incurred through a PBC "ends up being a very secure obligation," Cowan told the board. "The county's involvement in this provides (credit) enhancements and makes this a stronger deal for the hospital."
Another advantage to establishment of a PBC would be, once in place, it would be available for future projects, according to Mike Ashley of Lancaster, Pollard and Co., a financial advisory firm. Any debt incurred by a PBC does not count against the county's normal debt limitations, so the commission could be used to finance additional governmental projects in the county, if needed.
The board took no action Tuesday on the request. County Counselor Jim Emerson said he wanted time to draft the wording of the proposed charter ordinance.
Commissioners were generally positive regarding the proposal.
"I think this is a win-win situation for Crawford County and for the hospital," Commissioner Ralph McGeorge said. "It looks like there'll be some new jobs coming out of this. It comes at a time when we need that boost in the economy."
In other business:
• Zoning Administrator Judy Freeman presented the board with her annual building report for 2008.
There was a substantial decrease in the number of building permits requested for new construction last year, Freeman said. The decrease was in the areas of new single-family dwellings, agriculture structures and additions to existing residences, the report stated. Permit requests for commercial structures and manufactured homes on foundations did increase last year over 2007 numbers.
"I know this is based on the economy and the housing slump," Freeman said. "I've talked to other cities and counties and they're all seeing the same thing."
• The board authorized a one-time $5,000 payment to Pawprints on the Heartland, with funding to be taken from carry-over from the 2008 county budget.
• Approved the appointment of Pittsburg High School Principal Donna Zerr to represent the county on the Juvenile Corrections Advisory Board and approved reappointment of current board members Mac Young, Rick Pfeiffer, Lori Fleming and Jerry Waltrip.
The next regular meeting of the county Board of Commissioners will be Friday at 10 a.m. in chambers at the courthouse in Girard. The regular meeting scheduled for next Tuesday has been canceled and moved to the Monday prior, at which time elected county officials will be sworn in at 10 a.m., with the commission meeting to follow.
GIRARD —
