LAWRENCEVILLE - Members of the Gwinnett Hospital Authority will appear in court Monday to finalize a multimillion dollar bond for the expansion of Gwinnett Medical Center and to refinance old debt.
Gwinnett Medical Center spokesman Kyle Brogdon said the day in court is in anticipation of the new renovations and expansions to the Lawrenceville hospital.
Hospital CFO and Senior Vice President Tommy McBride said the bond will be issued to the hospital in amounts not to exceed $350 million and is set to be repaid over 35 years.
The bond was sought after the hospital was granted a Certificate of Need for the new construction at the beginning of the year.
"The hospital is needing to grow and the way to access capital is through tax-exempt debt," McBride said.
In addition to using the funds as the backbone for the $61 million add-on to the medical center, the money will be used to refinance old debt, McBride said.
"The economy's at a place now where we can replace debt that we have at a lower interest cost," McBride said. "This is a combination of new money for the expansion and remodel and
Members of the Hospital Authority also met this morning to discuss the bond in a Tax Equity and Fiscal Responsibility Act of 1982 hearing in which the public will be invited to express views for or against the bond.
McBride said the mobilization has already begun for the construction of the 175,000-square-foot, six-story, 155-bed tower that will top the medical center's existing Support Services building.
Atlanta-based R.J. Griffin and Co. has already set up temporary offices at the hospital and begun preliminary work for the new tower that will house a surgical and surgical intensive care unit, progressive care, intensive care, neuroscience, spine center, orthopedics and a joint replacement center.
"We're on track from a timing standpoint," McBride said of the construction.
Completion of the add-on and renovation is projected for mid-2009.