Commissioners Approve Initial Contract for Lincoln County Medical Center Complex
ALBUQUERQUE, N.M. — Lincoln County commissioners announced Nov. 17 plans to move forward with a contract for the construction of the emergency medical services portion (EMS) of the new 10,000-square-foot Lincoln County Medical Center complex in Albuquerque. Albuquerque-based Jaynes Corporation will work as the general contractor and Albuquerque-based Dekker/Perich/Sabatini will be responsible for design.
Commissioner Tom Stewart offered a motion to award the project, which was seconded by commissioner Dallas Draper, who recommended Jaynes Corporation president and CEO, Shad James to hire local subcontractors during project construction.
The agreement anticipates a groundbreaking date for the EMS facility Feb. 21, 2017, and a completion date of June 26, 2017. The new hospital is being built on the site of the existing EMS headquarters.
“Construction start date for the hospital is, of course, dependent on construction complete date of the EMS facility,” County Manager Nita Taylor said in a statement.
Photo Credit: Dekker/Perich/Sabatini
Taylor said in a statement that a 72-page lease agreement between the county and Presbyterian Health Care Services was sent to the New Mexico Board of Finance to schedule a place on its Dec. 20 meeting agenda. After the meeting, the county will approve or deny the project and ask that all deficiencies be corrected if the project hopes to gain approval.
The original cost of the lease was reported as $1.1 million a year for the hospital, but that cost is increasing to $3.2 million a year for EMS and rural clinics in order to generate enough revenue to cover the annual debt service on repayment of $25 million in bonds voters authorized Nov. 8 to be sold to pay for the new hospital, according to a statement from Taylor.
Bonds will be used to finance the majority of construction on the hospital and Commissioner Elaine Allen said in a statement that the current commissioners advocate paying off the debt early. Erick Harrigan, the county’s municipal adviser with Toronto-based RBC Capital Markets said once the bonds are sold, the maturity date is set for 10 years before the county could call them in for payoff or refinancing.
Commissioners approved a resolution submitted by Albuquerque-based Sperling Law Firm that allows the county to use its own money to pay for startup construction costs and seek reimbursement from the bond proceeds later. The county has already set aside $3.1 million that could be used to fund construction, according to a statement.
The timing of the bond sale will impact the start date and completion date of construction. That’s why commissioners plan to pass a motion that allows them to begin paperwork right away regardless of when and how they decide to sell the bonds. This will help the project clear administrative hurdles, pass necessary ordinances and receive an analysis from the Public Finance Authority before construction can begin.