Perham hospital to be financed with issue of $30 million in tax exempt bonds
Municipal bonds will be sold starting in March, to finance $30 million of the new Perham Memorial Hospital and Home project.
Northland Securities announced last week a new, tax-exempt municipal bond issue for the Perham Hospital District.
The proceeds of the bonds will be used for the construction of the new hospital and clinic facility, which has been estimated at about $36 million. Northland is advertising the state and federal tax exempt bonds as expected yields of up to 6.25 percent.
Construction is well underway, since groundbreaking late last fall.
The financing package has been a work in progress. Conventional bank financing had been the initial plan, but late last year, the Hospital District board began investigating municipal bonding for the project.
The $30 million in bonding will be supplemented by a set-aside fund the hospital has been building for the past several years; local and area fundraising of nearly $3 million; and some conventional bank financing.
The hospital's primary service area includes the cities of: Dent, New York Mills, Ottertail, Perham and Richville; and the following ten townships: Corliss, Dead Lake, Dora, Edna, Gorman, Ottertail, Perham, Pine Lake, Rush Lake and Star Lake.
For information on how to invest in the Perham hospital bonds, interested parties can call Northland Securities at 800-851-2920, ext. 4924.