Quincy Valley Medical Center bonds issued
Quincy Valley Medical Center received a better-than-expected rating for construction bonds issued to pay for a new hospital to replace the existing facility, pictured. The change means district property owners will be paying less than originally anticipated.
FILE PHOTO
QUINCY — Property owners in Grant County Hospital District 2 will be paying a little less than first projected for the construction bonds to build the new Quincy Valley Medical Center. Property owners will be paying an estimated 39 cents per $1,000 of assessed property value, down nine cents from the original projection.
“The lower bond levy rate is the result of a better than expected rating of Baa1, lower bond market interest rate and growth in the assessed value of the district,” wrote QVMC Chief Executive Officer Glenda Bishop in a press release.
The bonds were issued last week, after QVMC officials presented their proposal to officials of Moody’s Investor Service. Moody’s provides investors with credit ratings and research on stocks, bonds and government agencies, as well as risk analysis, according to the website Investopedia.
Construction bonds rated Baa1 are considered a moderate credit risk, according to the NASDAQ website. This was QVMC’s first rating presentation, Bishop wrote.
Hospital officials and consultants on the project presented information and answered questions about the hospital’s management and finances, the hospital project, long-term planning and the QVMC district’s economy.
Construction of the new hospital was estimated to cost about $36 million, the press release said. Design, purchasing equipment and obtaining the permits is estimated to cost about $19 million.
The new hospital will be on the same site as the existing building, north of the existing structure. Construction is expected to start this summer, with completion projected for spring 2025. The hospital will remain in operation during construction.
Bishop wrote that the rating presentation emphasized the support the levy proposal received from district voters, the district’s improved financial picture over the last two years, the growth in assessed value in the hospital district and Quincy’s economy.
District voters approved a construction bond for up to $55 million in August 2022. Hospital officials have hired NAC: Trinity, Spokane and Seattle, as the architects, and Graham Construction, Seattle and Spokane, as the general contractors on the project.
Cheryl Schweizer may be reached at cschweizer@columbiabasinherald.com.
Cheryl Schweizer may be reached at cschweizer@columbiabasinherald.com.