Tuesday, March 02, 2010

V.A. Hospital's Financing for Expansion and Renovation Secured

Repost from Crain's Cleveland:

Financing lined up for expansion of Cleveland's Veterans Affairs hospital


A deal has been reached to finance the expansion of Cleveland's Veterans Affairs hospital.

The Louis Stokes Veterans Affairs Medical Center has had trouble securing financing in the difficult credit cycle. Fifth Third Securities Inc. said Thursday it had served as the financial adviser and structuring agent for a $115 million bond deal to help renovate and expand the hospital.

The Cleveland-Cuyahoga County Port Authority financed the development through the issuance of taxable, lease revenue bonds. A special tax increment financing district also was part of the deal, which Fifth Third said was two years in the making.

The VA hospital is the fifth-largest in the country, with about 100,000 visitors a year.

“The goal of this project is to improve access, improve quality of care and reduce costs,” said Sean Nelson, chief of external affairs at the medical center, in a statement.

The financing will go toward consolidating the hospital's Brecksville campus into the Wade Park campus, then renovating and expanding that campus. New construction will include a 2,000-car parking garage, administration building and residential services for homeless veterans.