Lee commissioners back $200M hospital bond plan, separately OK $122K for utility engineering

County payments would support roughly $30 million of the hospital financing. Commissioners approved engineering to extend utilities to the hospital site while also discussing gaps in fire hydrant coverage in existing neighborhoods.

LEESBURG — Lee County commissioners approved a financing plan Tuesday allowing up to $200 million in revenue bonds for the proposed hospital at Grand Island and separately approved $122,000 for engineering work to extend water and sewer service to the site.

County Attorney Jimmy Skipper said the financing would have two parts, with a combined borrowing ceiling of $200 million and an interest rate cap of 8%. Neither the final borrowing amount nor the interest rate has been set.

Skipper said the ceilings were likely higher than the project would need. Final figures would depend on project costs and economic conditions closer to closing.

Commissioner Dennis Roland asked whether the total included the $30 million portion of the financing discussed previously. Skipper confirmed that the $200 million ceiling covered both parts.

The county’s role extends beyond approving the financing plan. The Albany Herald reported in September that the proposed arrangement would rely on county payments to repay roughly $30 million in bonds. Hospital revenue could eventually reimburse the county, but that potential reimbursement is separate from the county’s payment commitment.

The estimated annual county payment was about $1.8 million, though bond attorney Roger Murray cautioned at the September hearing that the amount would depend on interest rates and the repayment period.

Tuesday’s discussion did not establish whether those proposed repayment terms had changed.

The resolution approved a financing plan for the benefit of MCLCG Inc., the nonprofit identified as the hospital’s future owner. A hospital information graphic released by Lee County on Wednesday lists Commissioner Billy Mathis as MCLCG’s chairman and Luke Singletary as vice chairman.

The graphic says MCLCG’s board members are unpaid volunteers with no financial interests in the project. It identifies People’s Health Systems LLC as the hospital’s manager, a separate role from ownership.

Skipper said the Hospital Authority had held a public hearing and recommended county approval of the financing plan. All but one of the speakers during the public comment period opposed construction of the hospital.

Commissioners also approved an engineering proposal to prepare water and sewer service for the hospital site.

County Manager Scott Addison described the $122,000 proposal as covering exploration work, design, permitting, bid assistance, contract administration and construction oversight.

The amount covers engineering services rather than construction of the utility lines. The discussion did not identify a construction estimate or the funding source for the engineering work.

The county’s infrastructure responsibilities were already outlined in an earlier agreement. According to the Herald’s September reporting on the 2024 intergovernmental contract, Lee County committed to pay for utility lines and public roads serving the hospital property, with no dollar limit or reimbursement provision specified for that work. 

The utility approval came during the same meeting in which commissioners discussed gaps in water service and fire hydrant coverage in existing neighborhoods.

During a discussion of recent house fires, board members considered buying another tanker truck in place of extending water infrastructure to areas without hydrants. They asked staff to explore equipment options and potential funding sources and report back.