HomeMy WebLinkAboutC.054.93008_0193 (2)4173
LOWRANCE HOSPITAL, GRADY SHOE, CHAIRMAN OF THE ?,OARD:
Mr. Chairman, commissioners, ladies and gentlemen:
I'm Grady Shoe from Lowrance Hospital. The estimated
total construction cost for Lowrance is $5,278,850. The
estimated total capital cost, including architect,
consultant fees, equipment, contingencies, and capitalized
construction period interest is $10,646,000. Now the
hospital anticipates financing the project through the
issuance of general county obligation bonds to be paid
100% from hospital revenues, and our auditors have
determined that this is quite feasible.
Assuming an interest rate of 12,5% and a term
of twenty years, the estimated borrowing requirement
of the financing is $8.7 million, and you just heard what
Arnold Nunnery had to say about the interest rate, but
our figures are projected at 12.5%.
The hospital plans to raise at least $500,000 in
contributions and in endowments, and provide $545,000
of equity and $901,000 of capitalized interest during
construction for a total cost of $1,446,000 in hospital
resources.
The total bond issue for Lowrance is $8,700,000, and
the total payback over the twenty-year period is $21
million for Lowrance. The two hospitals will contract
with the county to pay back the principal and interest
100% from hospital revenues. The cost at Lowrance will
eoux 26 6�SE 11