Pinnacle gets $130M in tax-exempt bonds for hospitals
Dauphin County commissioners on Wednesday voted to approve $130 million in tax-exempt bond financing to cover much of PinnacleHealth System's $150 million, three-pronged hospital project on the East and West shores.
The Harrisburg-based nonprofit in May announced plans to build a $100 million hospital adjacent to the Fredricksen Outpatient Center in Hampden Township's Cumberland Technology Park. Occupancy of that facility is slated for May 2014.
At least 200 construction jobs will be needed to build the new hospital, according to Harrisburg-based Quandel Construction Group Inc., the construction manager at two of the three sites.
The capital project also includes upgrades at Community General Osteopathic Hospital in Lower Paxton Township and Harrisburg Hospital.
The bonds are being issued through the Dauphin County General Authority, said Amy Richards Harinath, a spokeswoman for the county commissioners.
"The tax-exempt bonds will cover 70 percent of the cost of the projects. The remainder will be paid from PinnacleHealth's reserves and philanthropy," Bill Pugh, chief financial officer for PinnacleHealth, said in a statement.
Dauphin County is not obligated for repayment of these bonds.