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BOON 26 PAGE 8
addition. A new fourth floor will be added to the top
just like it was designed.
We have many more slides and answers to questions
we have been asked so far.
Let us show you the cost structure very quickly
for both hospitals.
ARNOLD NUNNERY, ADMINISTRATOR, IREDELL MEMORIAL
HOSPITAL:
We are going to go over the sources and uses
statement for the project. We have two columns. We want
to concentrate on the column on the right. This
column is for general obligation bonds. The column
on the left is for revenue bonds. We considered
both methods of financing this project. As you can see,
the revenue bonds is approximately $6 million more
expensive. The main reason being the interest rate
usually runs about 2% more.
Our cost of construction is $14 million. Cost
for construction of the project is $14 million. To
that amount we add $4 million for equipment, large and
small, for contingencies, architectural, engineering
and other fees. So we need $18 million for the project.
We need $100,000 for the cost of issuing the bonds,
and during the time of construction the interest expense
will be a little over $4 million, based on a 12% interest
rate.