CCMSD continues process of looking at loan for new hospital

Crook County Medical Services District (CCMSD) continues to pursue the necessary steps to find out if it qualifies for a U.S. Department of Agriculture (USDA) loan that will be used to either build a new hospital or renovate the current one.

CEO Micki Lyons reported that a certificate of incumbency was recently sent to the USDA – a document that lists the names of current leadership.

The next stage involves additional information from CCMSD, Lyons said.

“In order to begin processing the loan, they will need rate and term sheets for three other lenders for the proposed project,” said Lyons.

Lyons asked for any input from the board as to which three lenders should be approached alongside local establishment Sundance State Bank.

The board did not express any preferences for the lenders to be approached, but Chairman Mark Erickson enquired as to whether it will still be possible for the board to make a decision on lender based on the desire to keep the project within the community as much as possible. Would Sundance State Bank just have to match the rates?”

“We still have that flexibility, right?” he asked.

This was confirmed to be the case.

Trustee Sandy Neiman asked why USDA is processing the financial paperwork at this stage.

“We’re still just getting the paperwork done, we’re not actually borrowing anything,” she said.

She was informed that this is a part of the process – it’s “boxes they’ve got to tick,” said Trustee Bob Richey – and does not commit CCMSD to accepting the loan at this time.

The grant application was initiated earlier this year after the board had an in-depth conversation with a representative from USDA, Lorraine Werner, who was adamant that CCMSD would be able to access funding and strongly suggested moving ahead with a loan application to kickstart the USDA’s internal process of reviewing the particulars to see what will be possible.

The reviewers, she said, will look at everything from revenue to all current expenses and loans to see what kind of a loan the district is able to take on. The USDA can provide up to a 40-year loan, Werner said, “just like a mortgage”, though with revenue bonds instead; the district would be able to make extra payments and pay the loan off early if it desired.