The Board of Directors of the Tulare Local Healthcare District (District) approved Resolution 920 in its January meeting, marking the most significant action taken toward the completion of the hospital tower in the last 10 years.
Resolution 920 provides the District with valuable options to use should it decide to move forward with a strategy outlined by District CEO, Randy Dodd, to finish a significant portion of the tower.
CEO Randy Dodd described a plan to raise $50 million through the issuance of Revenue Bonds, at no additional cost to the tax payers of Tulare, which amount represents approximately 75% of the funds needed ($65 million) to finish the basement, first, and second floors of the tower.
Following the meeting Dodd stated, “The first two floors are the most important parts of the new tower. They include a new emergency department and medical imaging on the first floor, and a new, modern surgery unit on the second floor.” Dodd further explained, “The new emergency services area is larger and much more efficient, and the new, state-of-the-art, surgery suites will enhance capabilities and attract physicians to the community.”
Resolution 920 provides the District with the option to utilize Revenue Bonds, if issued, to reimburse the District for costs incurred toward the tower from November 2023 through the time bonds are issued. The passage of Resolution 920 does not obligate the District to issue bonds or to even utilize them to replenish its cash reserves. It only provides the District with the option to do so.
Board Secretary, Xavier Avila, stated, “We [the Board] made a commitment to get the hospital open, get through bankruptcy and finish the tower.” He added, “I think this our best option. This Resolution doesn’t spend any money.”
Board President, Kevin Northcraft said, “It’s exciting. This [the completion of the tower] is the number one priority of the Board.” He added after the meeting, “We will continue to look for all sources of capital to finish our state-of-the-art tower, which is already substantially constructed.”
The estimated cost to complete the tower in its entirety is $100 million. The third and fourth floors are designed for Obstetrics and Medical Surgical beds, which are also currently available in the original hospital complex.
The Resolution passed in a 3-1 vote and one Director was absent.
For more information please contact the Tulare Local Healthcare District office at 559-656-1301.