USDA shutdown delays start of the new hospital

The Federal shutdown has directly affected a major project in Perry County. Work on the new Pinckneyville Community Hospital has been delayed while the USDA office in Washington, D.C. is closed.

The board held a groundbreaking ceremony on Monday, Sept. 30 only to be unable to proceed when political disagreements in Congress allowed federal offices to be closed indefinitely.

Board Chairman John Shotton asked the board of directors to think about what the best solution would be if construction is delayed to the point that additional expense will be necessary to allow concrete to be poured this year.

"It may be better to put things on hold until better weather," Shotton said. "We might lose all of October. it's something to think about."

For now, the board has moved forward with the funding for the project, passing two ordinances for a total of $23 million in bonds. Board member Dave Pirsein abstained from voting on one of the bond ordinances, explaining that his bank plans to participate in the project.

AgStar will provide up to $23 million in funding during the project. It will be doled out as needed. PCH will pay interest only during the construction phase, which is expected to be finished between December 2014 and February 2015.

Hospital administrator Tom Hudgins said that will mean a monthly payment of about $30,000 during construction. The hospital has the option to capitalize the interest payments, if necessary.

Once the project is complete, USDA will pay $18 million to AgStar. PCH Would then repay USDA over a 40 year period. The first two years of payments would be interest only on those bonds, as well.

Chairman Shotton said the payments will be approximately $800,000 per year or just under $67,000 per month.

A bond hearing was held at the start of the regular meeting. The board fielded questions from Shirley Welsch about the monthly cost during and after construction and from Marilyn Pick on the hospital's current debt load.

Hudgins said the hospital has only one outstanding bond for the construction of the Rural Health Clinic. It will be paid in full in January 2015, before the new payments will begin. PCH retired two other bonds in the previous fiscal year.