Faribault Co. OKs bond sale

BLUE EARTH — Faribault County commissioners on Tuesday passed a resolution to allow United Hospital District to issue bank-qualifying bonds through the city of Frost.

Tucker Plumstead of National Healthcare Capital in Minneapolis was in attendance to discuss the matter with the board. As Plumstead explained, the bonds will be used to refinance existing debt, and to help finance renovation of the UHD location in Blue Earth.

Plumstead said the city of Blue Earth typically handles this type of bond issuance, but it was not able to satisfy bank qualifications at this time.

“Any city within the hospital’s market area is allowed to issue the bonds under current bond law,” Plumstead said. “All the expenses of the county, and all the expenses of the city of Frost, will be paid by the hospital on this issuance.”

It was noted that Faribault County is not required to back the bonds with any financial commitments.

Meanwhile, Rick Ash, chief executive officer of UHD in Blue Earth, told the board the funding will be utilized to help boost the hospital’s financial standing, and to aid in renovation efforts.

“There is the opportunity to refinance prior bonds at the hospital district to gain some interest rate advantage,” he said. “The other part of it is a renovation project for the emergency room. It’s been about 20 years since that has been addressed, and needs have changed quite a bit in regards to mental health and safety issues.”