Cortland Hospital Moving Ahead With $10 Million Dollar Capital Project
The Cortland Regional Medical Center is preparing to embark on a nearly $15 million dollar capital improvement project. The hospital is utilizing tax exempt bonds through the County Industrial Development Agency to finance part of the project as well as refinance existing debt from previous improvements.
According to hospital president and CEO Brian Mitteer, the hospital is paring down a planned expansion and is instead focusing on replacing aging equipment like 40 year old boilers and is putting money into upgrading and modernizing existing facilities and space.
Last year, the hospital received a nearly 10 million dollar grant from the state to purchase new equipment and make other improvements, now the hospital is going to borrow another $5 million to expand the scope of the improvements.
The hospital is looking to refinance $17 million worth of outstanding debt left over from the construction of the new emergency room back in 2002. They are taking advantage of a bond guarantee program through the County I-D-A.
The I-D-A formed a limited development corporation a couple of years ago which allows civic facilities to borrow money at lower rates. The program allows banks to avoid paying taxes on the interest from the loans, which allows the lenders to give the hospital a better interest rate on the borrowing.
Mitteer says the hospital is looking to do most of the work this year, with some of the improvements stretching into 2014.